Audit Report Cover Sheet Jan07
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CLEVELAND METROPOLITAN PARK DISTRICT CUYAHOGA COUNTY REGULAR AUDIT FOR THE YEARS ENDED DECEMBER 31, 2009 & 2008 Cleveland Metropolitan Park District, Cuyahoga County General Purpose External Financial Statements For the Years Ended December 31, 2009 and 2008 Table of Contents Page Independent Accountants’ Report ................................................................................................................ 1 General Purpose Financial Statements Management’s Discussion and Analysis ....................................................................................................... 3 Basic Financial Statements Statement of Net Assets - Governmental Activities ............................................................................. 10 Statement of Activities - Governmental Activities ............................................................................... 11 Balance Sheet - Governmental Fund .................................................................................................... 13 Reconciliation of Governmental Fund Balance to Net Assets of Governmental Activities ............................................................................................. 14 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund ..................................................................................................15 Reconciliation of the Changes in Fund Balance of Governmental Fund to the Statement of Activities ........................................................................... 16 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Basis) and Actual - General Fund .......................................... 17 Statement of Fiduciary Assets and Liabilities - Agency Funds .................................................................................................................................... 19 Notes to the Basic Financial Statements .............................................................................................. 20 Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards ..................... 55 This page intentionally left blank. INDEPENDENT ACCOUNTANTS’ REPORT Cleveland Metropolitan Park District Cuyahoga County 4101 Fulton Parkway Cleveland, Ohio 44144 To the Board of Park Commissioners: We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, the major fund, and the aggregate remaining fund information of the Cleveland Metropolitan Park District, Cuyahoga County, Ohio (the District), as of and for the years ended December 31, 2009 and 2008, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Cleveland Zoological Society, the discretely presented component unit. Other auditors audited those financial statements. They have furnished their report thereon to us and we base our opinion, insofar as it relates to the amounts included for the Cleveland Zoological Society on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Comptroller General of the United States’ Government Auditing Standards. Those standards require that we plan and perform the audit to reasonably assure whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit and the report of the other auditors provide a reasonable basis for our opinions. 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 financial position of the governmental activities, the discretely presented component unit, the major fund, and the aggregate remaining fund information of the Cleveland Metropolitan Park District, Cuyahoga County, Ohio, as of December 31, 2009 and December 31, 2008, and the respective changes in financial position thereof and the budgetary comparison for the General Fund for the years then ended in conformity with accounting principles generally accepted in the United States of America. LauscheBuilding/615SuperiorAve.,NW/=TwelfthFloor/Cleveland,OH441131801= Telephone:(216)7873665(800)6262297Fax:(216)7873361= www.auditor.state.oh.us= = 1 Cleveland Metropolitan Park District Cuyahoga County Independent Accountants’ Report Page 2 In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2010, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. While we did not opine on the internal control over financial reporting or on compliance, that report describes the scope of our testing of internal control over financial reporting and compliance and the results of that testing. That report is an integral part of an audit performed in accordance with Government Auditing Standards. You should read it in conjunction with this report in assessing the results of our audit. Management’s Discussion and Analysis is not a required part of the basic financial statements but is supplementary information accounting principles generally accepted in the United States of America requires. We have applied certain limited procedures, consisting principally of inquiries of management regarding the methods of measuring and presenting the required supplementary information. However, we did not audit the information and express no opinion on it. Mary Taylor, CPA Auditor of State August 5, 2010 2 Cleveland Metropolitan Park District, Cuyahoga County Management’s Discussion and Analysis For the Years Ended December 31, 2009 and 2008 (With Comparative Amounts for 2007) Unaudited The discussion and analysis of Cleveland Metropolitan Park District’s (the District) financial performance provides an overall review of the District’s financial activities for the years ended December 31, 2009, 2008 and 2007. The intent of this discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the basic financial statements and notes to enhance their understanding of the District’s financial performance. Financial Highlights Key Financial highlights for 2009 are as follows: In total, net assets increased from 2008. This is primarily attributable to an increase in capital assets. Several large capital projects were ongoing in 2009, accounting for the increase in construction in progress, including the African Elephant Crossing Exhibit and the West Creek Reservation Stewardship Center. The construction of the Park Operations and Ranger Management Center in Strongsville and the Giraffe Barn Renovation were both completed in 2009, increasing the buildings category. Land increased as property was acquired or donated, primarily for the West Creek Reservation. Capital grant revenue increased as a result of donations of land for the West Creek Reservation. Expenditures increased over 2008. This increase is primarily due to higher employee salary and benefit costs. Employees received an increase in pay during 2009 and employer contributions to fund both health insurance and pension (for law-enforcement employees) increased. These increases were partially offset by less employees throughout the District and through position management. The District evaluates each position and may not fill them if employees resign or retire. Using this Annual Financial Report This annual report consists of a series of financial statements and notes to those statements. These statements are prepared and organized so the reader can understand the District as a financial whole or as an entire operating entity. The statements then proceed to provide an increasingly detailed look at our specific financial conditions. The Statement of Net Assets and Statement of Activities provide information about the activities of the whole District, presenting both an aggregate view of the District’s finances and a longer-term view of those assets. The Statement of Activities shows changes to net assets related to each department of the District. Fund financial statements tell how services were financed in the short-term as well as what dollars remain for future spending. - 3 - Cleveland Metropolitan Park District, Cuyahoga County Management’s Discussion and Analysis For the Years Ended December 31, 2009 and 2008 (With Comparative Amounts for 2007) Unaudited Reporting on the District as a Whole Statement of Net Assets and the Statement of Activities The Statement of Net Assets and Statement of Activities include all assets and liabilities using the accrual basis of accounting similar to the accounting method used by the private sector. The basis for