1. Town of Montreat 2014 Audited Financial Statements

2. Audit Highlights  Unmodified (clean) Opinion  Cooperative Staff

3. Audit Process  Planning and Risk Assessment  Interim Procedures  Final Procedures  Year-round Process

4. Fund Balance  Serves as a measure of the Town’s financial resources available. Assets – Liabilities = Fund Balance 5 Classifications:  Non spendable - not in cash form  Restricted - external restrictions (laws, grantors)  Committed - internal constraints at the highest (Board) level-do not expire, require Board action to undo  Assigned - internal constraints, lower level than committed  Unassigned - no external or internal constraints

5. Fund Balance Available fund balance as defined by the Local Government Commission (LGC) is calculated as follows: Total Fund Balance Less: Non spendable (not in cash form, not available) Less: Stabilization by State Statute (by state law, not available) Available Fund Balance This is the calculation utilized as the basis for comparing you to other units and calculating your fund balance percentages.

6. Fund Balance Position General Fund  Total Fund Balance – 2014 $ 1,407,549  Prepaids 4,872  Stabilization by State Statue- 62,622  Available Fund Balance $ 1,340,055  Available Fund Balance - 2013 $ 1,383,753  Decrease in available FB $ 43,698

7. Total Fund Balance General Fund

8. Available Fund Balance as a Percent of Expenditures & Transfers Out - General Fund

9. Fund Balance Continued - GF  Total Fund Balance – 2014 $ 1,407,549  Prepaids 4,872  Stabilization by State Statute- 62,622 Available Fund Balance $ 1,340,055  Restricted for Streets- 192,594  Committed for Open Space Conservation- 30,193  Assigned for Public Safety - 54,290  Assigned for subsequent year’s expenditures- $365,000 Unassigned Fund Balance$ 697,978

10. General Fund Summary

11.  Total Revenues - 2014 $ 1,784,741  Total Expenditures - 2014- 1,778,171  Revenues over (under) expenditures $ 6,570  Other financing sources (uses) $ (45,614)  Total change in fund balance $ (39,044)

12. Top 3 Revenues: General Fund Other Revenues: Unrestricted intergovt’l Permits and fees Sales and services Investment earnings Miscellaneous Top 3 comprise $ 1,606,285 (90%) of revenues

13. Ad Valorem Taxes

14. Other Taxes and Licenses

15. Restricted Intergovernmental Revenues

16. Top 3 Expenditures: General Fund Other Expenses: Cultural & Recreation Environmental Protection Top 3 comprise $1,521,207 (86%) of expenditures

17. Transportation Expenditures

18. Public Safety Expenditures

19. General Government Expenditures

20. Water Fund Required Charges Unrestricted Debt Service For Service Net Position $153,946 $292,327 $597,996 Comparison to June 30, 2013 $126,690 $241,209 $595,469

21. Water Budgetary Results 20142013 Operating Revenue335,360281,712 Non operating Revenues102231 Total Revenues335,462281,943 Operating Expenditures236,410142,651 Debt Services153,946126,690 390,356269,341 Transfer to (from) GF(45,614)66,000 Revenue over (under) Expenditures(9,280)(53,398)

22. Discussion & Questions

23. Town of Montreat