Lawrence County Single Audit for the Year Ended December 31, 2016
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Lawrence County Single Audit For the Year Ended December 31, 2016 Millhuff-Stang, CPA, Inc. 1428 Gallia Street / Portsmouth, Ohio 45662 / Phone: 740.876.8548 45 West Second Street, Suite D / Chillicothe, Ohio 45601 / Phone: 740.851.4978 Fax: 888.876.8549 [email protected] / [email protected] www.millhuffstangcpa.com Board of Commissioners Lawrence County 111 South Fourth Street Ironton, Ohio 45638 We have reviewed the Independent Auditor’s Report of Lawrence County, prepared by Millhuff- Stang, CPA, Inc., for the audit period January 1, 2016 through December 31, 2016. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. Lawrence County is responsible for compliance with these laws and regulations. Dave Yost Auditor of State October 5, 2017 88 East Broad Street, Fifth Floor, Columbus, Ohio 43215‐3506 Phone: 614‐466‐4514 or 800‐282‐0370 Fax: 614‐466‐4490 www.ohioauditor.gov This page intentionally left blank. Lawrence County Table of Contents For the Year Ended December 31, 2016 Title Page Independent Auditor’s Report.........................................................................................................................1 Management’s Discussion and Analysis.........................................................................................................4 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position – Cash Basis..........................................................................................11 Statement of Activities – Cash Basis ..............................................................................................12 Fund Financial Statements Statement of Cash Basis Assets and Fund Balances and Cash Receipts, Cash Disbursements and Changes in Cash Basis Fund Balances – Governmental Funds – Cash Basis..........................14 Statement of Receipts, Disbursements and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual – General Fund.................................................................................15 Statement of Receipts, Disbursements and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual – Board of Developmental Disabilities Fund ...................................16 Statement of Receipts, Disbursements and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual – Job and Family Services Fund ......................................................17 Statement of Receipts, Disbursements and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual – Motor Vehicle Gasoline Tax Fund................................................18 Statement of Cash Basis Assets and Net Cash Position and Cash Receipts, Cash Disbursements and Changes in Net Position – Proprietary Funds – Cash Basis.....................................................19 Statement of Fiduciary Net Position – Cash Basis..........................................................................20 Notes to the Basic Financial Statements ................................................................................................21 Schedule of Federal Awards Expenditures....................................................................................................57 Notes to the Schedule of Federal Awards Expenditures ...............................................................................59 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ......................................................................................................................................................61 Report on Compliance For Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance ..........................................................................................63 Schedule of Findings and Questioned Costs .................................................................................................65 Corrective Action Plan..................................................................................................................................67 Schedule of Prior Audit Findings..................................................................................................................68 Independent Auditor’s Report Board of Commissioners Lawrence County 111 South Fourth Street Ironton, Ohio 45638 Report on the Financial Statements We have audited the accompanying cash basis financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Lawrence County, Ohio (the County), as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for preparing and fairly presenting these financial statements in accordance with the cash accounting basis Note 2 describes. This responsibility includes determining that the cash accounting basis is acceptable for the circumstances. Management is also responsible for designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to opine on these financial statements based on our audit. We did not audit the financial statements of the component unit, the Lawrence County Port Authority, which represents 87 and 52 percent, respectively, of the assets/net position and receipts of the aggregate discretely presented component units. Those statements, which were prepared in accordance with accounting principles generally accepted in the United States of America, were audited by another auditor, whose report has been furnished to us. We have applied audit procedures on the adjustments to the financial statements of this component unit, which conform those financial statements to the cash accounting basis. Our opinion, insofar as it relates to the amounts included for the Lawrence County Port Authority, prior to the adjustments, is based solely on the report of the other auditor. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement. The financial statements of Tri-State Industries and Choices Inc. were audited in accordance with auditing standards generally accepted in the United States of America and not in accordance with Government Auditing Standards. Millhuff-Stang, CPA, Inc. 1428 Gallia Street / Portsmouth, Ohio 45662 / Phone: 740.876.8548 45 West Second Street, Suite D / Chillicothe, Ohio 45601 / Phone: 740.851.4978 Fax: 888.876.8549 [email protected] / [email protected] www.millhuffstangcpa.com 1 Lawrence County Independent Auditor’s Report Page 2 An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the County’s internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation. We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions. Opinion In our opinion, based on our audit and the report of the other auditor, the financial statements referred to above present fairly, in all material respects, the respective cash financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Lawrence County, Ohio, as of December 31, 2016, and the respective changes in cash financial position and the respective budgetary comparison for the General, Board of Developmental Disabilities, Job and Family Services, and Motor Vehicle Gasoline Tax Funds thereof for the year then ended in accordance with the accounting basis described in Note 2. Accounting Basis Ohio Administrative Code Section 117-2-03(B) requires