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Auditing Procedures Report Michigan Department of Treasury 496 (02/06) Auditing Procedures Report Issued under P.A. 2 of 1968, as amended and P.A. 71 of 1919, as amended. Local Unit of Government Type Local Unit Name County County City Twp Village Other H uron-Clinton Metropolitan Authority L ivingston Fiscal Year End Opinion Date Date Audit Report Submitted to State December 31, 2007 April 29, 2008 May 28, 2008 W e affirm that: W e are certified public accountants licensed to practice in Michigan. W e further affirm the following material, “no” responses have been disclosed in the financial statements, including the notes, or in the Management Letter (report of comments and recommendations). S O E Check each applicable box below. (See instructions for further detail.) Y N 1. All required component units/funds/agencies of the local unit are included in the financial statements and/or disclosed in the reporting entity notes to the financial statements as necessary. 2. There are no accumulated deficits in one or more of this unit’s unreserved fund balances/unrestricted net assets (P.A. 275 of 1980) or the local unit has not exceeded its budget for expenditures. 3. The local unit is in compliance with the Uniform Chart of Accounts issued by the Department of Treasury. 4. The local unit has adopted a budget for all required funds. 5. A public hearing on the budget was held in accordance with State statute. 6. The local unit has not violated the Municipal Finance Act, an order issued under the Emergency Municipal Loan Act, or other guidance as issued by the Local Audit and Finance Division. 7. The local unit has not been delinquent in distributing tax revenues that were collected for another taxing unit. 8. The local unit only holds deposits/investments that comply with statutory requirements. 9. The local unit has no illegal or unauthorized expenditures that came to our attention as defined in the Bulletin for Audits of Local Units of Government in Michigan, as revised (see Appendix H of Bulletin). 10. There are no indications of defalcation, fraud or embezzlement, which came to our attention during the course of our audit that have not been previously communicated to the Local Audit and Finance Division (LAFD). If there is such activity that has not been communicated, please submit a separate report under separate cover. 11. The local unit is free of repeated comments from previous years. 12. The audit opinion is UNQUALIFIED. 13. The local unit has complied with GASB 34 or GASB 34 as modified by MCGAA Statement #7 and other generally accepted accounting principles (GAAP). 14. The board or council approves all invoices prior to payment as required by charter or statute. 15. To our knowledge, bank reconciliations that were reviewed were performed timely. If a local unit of government (authorities and commissions included) is operating within the boundaries of the audited entity and is not included in this or any other audit report, nor do they obtain a stand-alone audit, please enclose the name(s), address(es), and a description(s) of the authority and/or commission. I, the undersigned, certify that this statement is complete and accurate in all respects. W e have enclosed the following: Enclosed Not Required (enter a brief justification) Financial Statements The letter of Comments and Recommendations Other (Describe) Certified Public Accountant (Firm Name) Telephone Number Rehmann Robson 248-952-5000 Street Address City State Zip 5750 New King Street, Ste. 200 Troy MI 48098 Authorizing CPA Signature Printed Name License Number Digitally signed by Thomas Darling, CPA DN: cn=Thomas Darling, CPA, c=US, o=Rehmann Robson, Thomas Darling, CPA [email protected] Date: 2008.05.28 14:57:25 -04'00' Thomas E. Darling, CPA A246550 HURON-CLINTON METROPOLITAN AUTHORITY, MICHIGAN COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 SUBMITTED TO THE HURON-CLINTON METROPOLITAN AUTHORITY BOARD OF COMMISSIONERS John C. Hertel – Chairman – Governor Appointee Harry E. Lester – Vice Chairman – Wayne County Peter S. Walters – Treasurer – Oakland County Warren C. Evans – Governor Appointee John E. La Belle – Livingston County Robert W. Marans – Washtenaw County Anthony V. Marrocco – Macomb County Prepared by the Huron-Clinton Metropolitan Authority Controller’s Department Huron - Clinton Metropolitan Authority, Michigan Comprehensive Annual Financial Report For the Year Ended December 31, 2007 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Table of Contents 1-2 GFOA Certificate 3 Letter of Transmittal 4-15 Organizational Chart 16 List of Principal Officials 17 FINANCIAL SECTION Independent Auditors' Report 18-19 Management’s Discussion and Analysis 20-32 Basic Financial Statements Statement of Net Assets and Governmental Funds Balance Sheet 33 Reconciliation of the Statement of Net Assets and Governmental Funds Balance Sheet 34 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances 35 Reconciliation of Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances 36 Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund 37 Statement of Fiduciary Net Assets – Pension and Other Employee Benefit Trust Funds 38 Statement of Changes in Fiduciary Net Assets – Pension and Other Employee Benefit Trust Funds 39 Notes to Financial Statements 40-56 - 1 - Huron-Clinton Metropolitan Authority, Michigan TABLE OF CONTENTS - Continued PAGE Required Supplementary Information Defined Benefit Pension Trust Trend Information 57 Supplementary Information Combining Statement of Fiduciary Net Assets – Pension Trust Funds 58 Combining Statement of Changes in Fiduciary Net Assets – Pension Trust Funds 59 STATISTICAL SECTION Table of Contents 60 Net Assets by Component 61 Changes in Net Assets 62 Fund Balances of Governmental Funds 63 Changes in Fund Balances of Governmental Funds 64 Governmental Activities Tax Revenues by Source 65 Taxable and Assessed Values of Property 66 Taxable Valuations by County 67 Property Tax Rates 68 Property Tax Levies and Collections 69 Principal Property Taxpayers 70 Demographic Statistics 71 Full-Time Equivalent Authority Employees by Location 72 Capital Asset Statistics by Function/Program 73-74 Metropark General Governmental Expenditures by Type 75-79 Metropark General Governmental Revenues by Source 80 Metropark Operating Revenues by Park 81 Metropark Operating Revenues by Type 82 INTERNAL CONTROL AND COMPLIANCE Independent Auditor’s 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 83-85 - 2 - April 29, 2008 To the Board of Commissioners, Director and Citizens of the Huron-Clinton Metropolitan Authority. Park District: State law requires that all local governmental units, including authorities such as the Huron-Clinton Metropolitan Authority, publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Huron-Clinton Metropolitan Authority for the fiscal year ended December 31, 2007. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section, which is unaudited, includes the letter of transmittal, an organizational chart and a list of the Huron-Clinton Metropolitan Authority’s principal appointed officials. The financial section includes the financial statements and schedules, as well as the independent auditor’s report on these financial statements and schedules. The Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. The statistical section, which is unaudited, includes selected financial information, generally presented on a multi-year basis. The financial reporting entity of the Huron-Clinton Metropolitan Authority includes all funds of the Huron-Clinton Metropolitan Authority. The Authority is a special district form of government operating independently of all other governmental agencies. It provides a full range of recreational activities in the five-county region surrounding metro Detroit. GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC CONDITION AND OUTLOOK The Huron-Clinton Metropolitan Authority was sanctioned by Public Act 147 of Public Acts 1939. This Act provided for the incorporation of the Huron-Clinton Metropolitan Authority to permit the counties of Livingston, Macomb, Oakland, Washtenaw and Wayne to join in a metropolitan district for planning, promoting and/or acquiring, constructing, owning, developing, maintaining and operating, either within or without their limits, parks, connecting drives and/or limited access highways; to provide for the assessment, levy and collection of property taxes on both real and personal properties located within its boundaries. A referendum was held on November
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