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Cayuga County Development Corporation – CCDC FY2017 Audited Financial Statements CCDC Audited Financial Statements FY2017 Page 1 Cayuga County Development Corporation FY 2017 Audited Financial Statements Introduction The Cayuga County Development Corporation (CCDC) annually conducts an independent financial audit in compliance with the PAAA and PARA. This CCDC Annual Independent Financial Audit looks closely at the finances, internal controls and investments of the CCDC and reports its findings within the CCDC financial audit report that is reviewed by, and approved by the CCDC Board of Directors. The FY2017 CCIDA Financial Report is presented here and includes: • FY2017 Audited Financial Statements • FY2017 Management Discussion & Analysis (also posted separately on the CCDC webpage) • FY2017 Assessment and Report on Internal Controls (also posted separately on the CCDC webpage) ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Audited Financial Statements For the Year Ending December 31, 2017 ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Audited Financial Statements Independent Auditors’ Report on Financial Statements 1 Audited Financial Statements Statement of Financial Position 3 Statement of Activities 4 Statement of Cash Flows 5 Notes to Financial Statements 6 ---PAGE BREAK--- CUDDY & WARD, LLP Certified Public Accountants 110 GENESEE STREET - SUITE 230 AUBURN, NEW YORK 13021 PHONE [PHONE REDACTED] FAX [PHONE REDACTED] WWW.CUDDYANDWARDCPA.COM PAUL L. CUDDY, CPA RICHARD L. BEAUCHINE, CPA, MST RICHARD D. WARD, CPA FRANK L. DEROSA, CPA CMC INDEPENDENT AUDITORS’ REPORT ON FINANCIAL STATEMENTS To the Board of Directors Cayuga County Development Corporation Auburn, New York We have audited the accompanying financial statements of Cayuga County Development Corporation (a nonprofit organization), which comprise the statement of financial position as of December 31, 2017, 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 auditing standards generally accepted in the United States of America. 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 risks 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 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 audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cayuga County Development Corporation as of December 31, 2017, 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. ---PAGE BREAK--- Report on Summarized Comparative Information We have previously audited the Cayuga County Development Corporation’s 2016 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated January 29, 2017. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2016, is consistent, in all material respects, with the audited financial statements from which it has been derived. Respectfully submitted, CUDDY & WARD, LLP Certified Public Accountants Auburn, New York February 2, 2018 ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Statement of Financial Position December 31, 2017 (With Comparative Totals At December 31, 2016) See accompanying notes to financial statements 2017 2016 CURRENT ASSETS Cash $ 71,804 $ 75,195 Loan receivable - current portion 12,533 12,103 Total current assets 84,337 87,298 OTHER ASSETS Loan receivable - net of current portion 109,455 121,998 Total other assets 109,455 121,998 TOTAL ASSETS $ 193,792 $ 209,296 CURRENT LIABILITIES Accounts payable $ - $ 80 Total current liabilities - 80 NET ASSETS Unrestricted net assets 193,792 209,216 Total net assets 193,792 209,216 TOTAL LIABILITIES AND NET ASSETS $ 193,792 $ 209,216 ASSETS LIABILITIES AND NET ASSETS ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Statement of Activities For the Year Ended December 31, 2017 (With Comparative Totals For the Year Ended December 31, 2016) See accompanying notes to financial statements 2017 2016 SUPPORT AND REVENUES Application fees $ - $ 7,850 Loan interest income 4,500 2,407 Interest income 15 25 TOTAL SUPPORT AND REVENUES 4,515 10,282 EXPENSES Outside contract services 15,000 15,000 Professional fees 4,858 3,360 Registration fees 81 135 TOTAL EXPENSES 19,939 18,495 CHANGE IN NET ASSETS 15,424) ( 8,213) ( NET ASSETS AT BEGINNING OF YEAR 209,216 217,429 NET ASSETS AT END OF YEAR $ 193,792 $ 209,216 ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 (With Comparative Totals For the Year Ended December 31, 2016) See accompanying notes to financial statements 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 15,424) ( $ 8,213) ( Changes in assets and liabilities: (Increase) decrease in: Loan receivable 12,113 134,101) ( Increase (decrease) in: Accounts payable 80) ( 80 Net (used) by operating activities 3,391) ( 142,234) ( NET (DECREASE) IN CASH 3,391) ( 142,234) ( CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 75,195 217,429 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 71,804 $ 75,195 SUPPLEMENTAL DISCLOSURES Interest paid - cash basis $ - $ - Taxes paid - cash basis $ - $ - ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Notes to Financial Statements NOTE A ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Cayuga County Development Corporation is a local development corporation, registered under nonprofit law. The purpose of the corporation is to relieve and reduce unemployment; promote and provide for additional employment and maintain job opportunities; lessen the burden of government and act in the public interest. The corporation is a separate legal entity, whose sole member is the County of Cayuga, which appoints the Corporation’s Board. Basis of Accounting The financial statements of Cayuga County Development Corporation have been prepared on the accrual basis of accounting and reflect all significant receivables, payables and other liabilities. Basis of Presentation The Corporation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Restricted and Unrestricted Revenue and Support Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. There were no temporarily or permanently restricted net assets at December 31, 2017. Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all short-term investments with an original maturity of three months or less to be cash equivalents. Income Taxes The Organization is exempt from income taxes under Section 501 of the Internal Revenue Code and is not classified as a private foundation. Therefore, no provision for income taxes has been included in the financial statements. In accordance with FASB ASC 740, Income Taxes, the Organization recognizes the tax benefits from uncertain tax positions only if it is more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. There are no such uncertain tax positions for the Organization for the year ended December 31, 2017. The Organization’s income tax filings are subject to audit by various taxing authorities. Comparative data The financial information for the year ended December 31, 2016, presented for comparative purposes, is not intended to be a complete financial statement presentation. ---PAGE BREAK--- CAYUGA COUNTY DEVELOPMENT CORPORATION Notes to Financial Statements NOTE B LOAN RECEIVABLE As of December 31, loan receivable consisted of: 2017 2016 Original loan of $140,000 to be paid back in installments of $1,384, including interest at 3.5% through June 2026. $ 121,988 $ 134,101 Maturities of loan receivable at December 31, 2017 is as follows: 2018 $ 12,533 2019 12,979 2020 13,440 2021 13,919 2022 14,414 Thereafter 54,703 $ 121,988 NOTE C SUBSEQUENT EVENTS The Organization has evaluated events and transactions that occurred between January 1, 2018 and February 2, 2018, which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements. No additional matters were identified for recognition or disclosure.