December 31, 2020 Auditors Report & Management Letter
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WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION Independent Auditor’s Report Financial Statements December 31, 2020 WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION Table of Contents Page Independent Auditor’s Report 1-2 Financial Statements Statement of Financial Position 3 Statement of Activities 4 Statement of Cash Flows 5 Notes to Financial Statements 6-16 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 17-18 NOLAN CERTIFIED PUBLIC ACCOUNTING SERVICES, PLLC TARA M. NOLAN, CPA 243 County Route 68 Eagle Bridge, NY 12057 INDEPENDENT AUDITOR’S REPORT To The Board of Directors Washington County Local Development Corporation Fort Edward, NY 12828 Report on the Financial Statements We have audited the accompanying financial statement of Washington County Local Development Corporation (a nonprofit organization), a component unit of Washington County, which comprises the statement of financial position as of December 31, 2020, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with audition standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by the management, as well as evaluating the overall presentation of the significant accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our overall opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Washington County Local Development Corporation as of December 31, 2020, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2021 on our consideration of Washington County Local Development Corporation’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. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Washington County Local Development Corporation’s internal control over financial reporting and compliance. Nolan Certified Public Accounting Services, PLLC Eagle Bridge, NY March 15, 2021 2 WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION STATEMENT OF FINACIAL POSITION YEAR ENDED DECEMBER 31, 2020 Restricted Income Intermediary ASSETS After Relending RBEG Closeout Program Grant Unrestricted Total Current Assets: Cash- Checking $ - $ 73,260 $ 27,071 $ 1,389,406 $ 1,489,736 Cash - Time Deposit - 22,000 - 413,848 435,848 Accounts Receivable - - - 653 653 Prepaid Expenses - - - 1,492 1,492 Current Portion, Loans Receivable 14,484 23,680 - 349,038 387,202 Current Portion, Lease Payments Receivable - - 5,155 - 5,155 Interest Receivable - - - 24,714 24,714 Total Current Assets 14,484 118,940 32,226 2,179,152 2,344,801 Other Assets: Loans receivable, net of current portion 145,277 209,596 - 2,294,533 2,649,406 Allowance for Doubtful Accounts - (22,000) - (291,153) (313,153) Lease Payments Receivable, net of current portion - - 3,862 - 3,862 145,277 187,596 3,862 2,003,380 2,340,116 Total Assets 159,761 306,536 36,088 4,182,532 4,684,917 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts Payable - - - - - Prepaid Interest 1,438 906 2,344 Current Portion of Loan Payable - 11,283 - - 11,283 Total Current Liabilities 1,438 12,189 - - 13,627 Long-Term Liabilities: Long Term Loan Payable, net of current portion - 82,796 - - 82,796 Total Long term Liabilities - 82,796 - - 82,796 Total Liabilities 1,438 94,985 - - 96,423 - - Fund Equity 158,323 211,551 36,088 4,182,532 4,588,494 Total Liabilities and Fund Equity $ 159,761 $ 306,536 $ 36,088 $ 4,182,532 $ 4,684,917 See Independent Auditor's Report and Notes 3 WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2020 Restricted Income Intermediary REVENUES After Relending RBEG Closeout Program Grant Unrestricted Total Interest on Loans $ 5,138 $ 13,233 $ - $ 128,572 $ 146,943 Interest on Time Deposits - 100 - 3,341 3,441 Contributions/Grants - - - 80,000 80,000 Origination & Late Fees - - 12,220 12,220 Events - - - 1,451 1,451 RBEG Grant Reimbursement - - - - - Net assets released from Unrestricted Income (23,000) - - 23,000 - Total Revenues (17,862) 13,333 - 248,584 244,055 EXPENDITURES Salaries & Wages - - - 75,103 75,103 Payroll Taxes - - - 5,296 5,296 Fringe Benefits - - - 15,812 15,812 Professional Fees - - - 20,035 20,035 Interest Expense - 1,188 - - 1,188 Insurance - - - 3,461 3,461 Office Expense - - - 1,808 1,808 Marketing and Advertising - - - 4,420 4,420 Meeting Expense - - - - - Miscellaneous - - - 87 87 Grant Expenses - - - - - Bad Debt Expense (Recovery) - - - - Total Expenditures - 1,188 - 126,022 127,210 Excess (Deficit) of Revenue Over Expenditures (17,862) 12,145 - 122,563 116,845 - Fund Equity - Beginning of Year $ 176,185 $ 199,406 $ 36,088 $ 4,059,970 4,471,649 Fund Euity - End of Year $ 158,323 $ 211,551 $ 36,088 $ 4,182,533 $ 4,588,494 See Independent Auditor's Report and Notes 4 WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION Statement of Cash Flows Year Ended December 31, 2020 Cash Flows From Operating Activities: Excess of Revenues Over Expenditures $ 116,845 Adjustments to Reconcie Excess of Revenues Over Expenditures to Net Cash Provided (Used) by Operating Activities: (Increase) Decrease in: Accounts Receivable (29) Loans Receivable 31 1,724 Lease Payments Receivable 4,297 Interest Receivable (9,810) Prepaid Expenses 2,831 Increase (Decrease) in: Prepaid Interest 2,344 Accounts Payable - Allowance for Doubtful Accounts - Intermediary Relending Program Loan Payable (11,151) Net Cash Provided (Used) by Operating Activities 41 7,050 Cash and Cash Equivalents at Beginning of Year 1,508,534 Cash and Cash Equivalents at End of Year 1,925,584 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year for: Interest $ 1,188 See Independent Auditor's Report and Notes 5 WASHINGTON COUNTY LOCAL DEVELOPMENT CORPORATION Notes to Financial Statements December 31, 2020 Summary of Significant Accounting Policies The summary of significant accounting policies of Washington County Local Development Corporation is presented to assist in understanding the Washington County Local Development Corporation’s financial statements. The financial statements and notes are representations of Washington County Local Development Corporation’s management, which is responsible for their integrity and objectivity. These accounting policies are in accordance with accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Organization Washington County Local Development Corporation was incorporated in 1985 under the Not-for-Profit Law of the State of New York for the purpose of relieving and reducing unemployment by promoting and providing job opportunities for low to moderate income residents of Washington County. This is accomplished through loans