The text of this document
GREEN HILLS REGIONAL PLANNING COMMISSION TRENTON, MISSOURI
BASIC FINANICAL STATEMENTS
June 30, 2023
Green Hills Regional Planning Commission Trenton, Missouri Year Ended June 30, 2023
Table of Contents
Section I: Financial Independent Auditors' Report Management's Discussion and Analysis Government-Wide Statement of Financial Position Government-Wide Statement of Activities Governmental Funds Balance Sheet Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Statement of Fiduciary Financial Position Notes to Financial Statements
Section Il: Required Supplementary Information Required Supplemental Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - All Governmental Funds
Section Ili: Supplemental! Information
Supplemental Schedule of Revenues, Expenditures, and Changes in Fund Balances - All General Fund Projects
Supplemental Schedule of Revenues, Expenditures, and Changes in Fund Balance - All Special Revenue Fund Projects
Supplemental Schedule of Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Workforce Development Projects
Section IV: Compliance and Internal Control Independent Auditors' 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
Independent Auditors' Report on Compliance With Indirect Cost Allocation Plan Requirements
1-3 4-10
16-30
35-36
Financial Statements
CONRAD & HIGGINS, LLC
CERTIFIED PUBLIC ACCOUNTANTS
1422 N, Washington 405 N Broadway Chillicothe, MO 64601 Princeton, MO 64673 (660) 240-0645 (660) 748-4423 Fax ~ (660) 240-0654 Fax — (660) 748-4422
Independent Auditors' Report
Executive Committee ZL Green Hills Regional Planning Commission Trenton, Missouri
Opinion
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Green Hills Regional Planning Commission, Trenton, Missouri, (the Commission) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Green Hills Regional Planning Commission, Trenton, Missouri as of June 30, 2023 and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Green Hills Regional Planning Commission, and to meet our other ethical responsibilities, in accordance with the relevent ehtical requirements relating to our audit. We believe that the dudit evidence we have obtained is sufficient and appropriate to provide a basis of our audit opinion.
Responsibilities of Management 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Green Hills Regional Planning Commission's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not abolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we: * Exercise professional judgement and maintain professional skepticism throughout the audit.
* Indentify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
* Obtain an understanding of internal control relevent to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivness of the Green Hills Regional Planning Commission's internal control. Accordingly, no such opinion is expressed.
* Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
* Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Green Hills Regional Planning Commission's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 4-9 and 31 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managment about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The supplementary information on pages 32 through 34 is presented for purposes of additional analysis and is not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 18, 2024 on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements. 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 the Commission's internal control over financial reporting and compliance.
Creel & bya, Abe Conrad & Higgins, LLC March 18, 2024
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
Our discussion and analysis of the Green Hills Regional Planning Commission's (the Commission) financial performance provides an overview of the Commission's financial activities for the fiscal year ended June 30, 2023.
Overview of Financial Statements:
This financial section of the annual report consists of four parts:
Management's discussion and analysis (this section),
Financial statements including notes to the financial statements,
Required supplemental information, and
Supplemental information.
This annual report includes a series of financial statements that provide an array of data to assist in evaluating the Commission's financial performance. Two types of financial statements used to assess fiscal accountability of the Commission
are as follows:
1 Government-wide financial statements assist the financial statement user in assessing the medium and long-term operational accountability of the Commission. They are prepared using the accrual basis of accounting. Government-wide financial statements include the following:
ies,
The Statement of Financial Position reports information on the Commission's assets and liabili with the difference between the two reported as net position. Assets and liabilities are presented in their order of liquidity. Namely, assets are presented in the order of their nearness to producing cash, and liabilities are presented in their nearness to consuming cash.
b. The Statement of Activities presents information on the Commission's revenue and expenses, with the variance between the two reported as a change in net position. Revenues are recognized in the accounting period in which they occur, while expenses are recognized in the period incurred.
2 Fund Financial Statements assist the financial statement user in assessing short-term fiscal accountability of the Commission. They are prepared on a modified accrual basis of accounting. Fund financial statements include the following:
a. The Governmental Funds Balance Sheet consists of a listing of assets, liabilities and fund balance and indicates the financial position of the Commission at a particular date.
b. The Governmental Funds Statement of Revenue, Expenditures and Changes in Fund Balance
demonstrates how the Commission's fund balance changed during the year
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
The Notes to the Financial Statements provide additional information essential to fully understand the data provided in the Commission's financial statements. The notes to the financial statements follow the order of the basic financial statements.
The statements and notes are followed by a section of required supplementary information and supplemental information that further explain and support the financial statements. The Commission as a Whole
The Commission's ending net position changed from a year ago, decreasing from $298,820 to $287,351.
Our analysis below focuses on the net Position and changes in the net position of the Commission.
Net Position 2022 2023
Current Assets $ 320,965 $ 305,212
Total Assets 320,965 305,212
Current Liabilities 22,145 17,861
Total Liabilities 22,145 17,861 Net Position:
Unrestricted 298,820 287,351
Total $ 320,965 $ 305,212
The following analysis compares the 2023 fiscal year with the 2022 fiscal year and analyzes the changes in net position of the Commission.
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
Changes in Net Position
2022 2023 Change
Program Revenues:
Charges for Services $ 94,112 $ 161,091 $ 66,979
Operating Grants 772,750 523,086 $ (249,664) General Revenues:
Local Assessments 43,936 40,935 $ (3,001)
Other 8,333 566 $ 7,767 Total Revenues: 919,131 725,678 $ (193,453) Expenses:
General Expenses 852,738 737,147 $§ (115,591)
Interest : - $ " Total Expenses 852,738 737,147 $ (115,591) Change in net position 66,393 (11,469) $ (77,862) Beginning net position 232,427 298,820 S$ 66,393 Ending net position $ 298,820 $ 287,351 $ (11,469)
The revenues for 2023 decreased by $193,453 from the previous year. Total expense for 2023 decreased by $115,591 from the previous year's expenses.
The Commission Funds
The following analysis presents the fund balances of major funds and an analysis of significant changes in the fund balances.
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
Changes in Year-End Fund Balance
2023 2022 Special Special General Revenue General Revenue
Revenues $ 189,396 $ 536,282 S$ 280,911 $638,220 Expenditures 131,668 605,479 163,559 689,179 Excess (deficiency) of Revenues
Over (under) Expenditures 57,728 (69,197) 117,352 (50,959) Other Financing Sources (Uses) (69,197) 69,197 (50,979) 50,959 Excess (deficiency) of Revenues
and Other Financing Sources Over
{Under) Expenditures and Other Uses (11,469) - 66,373 - Fund Balance - Beginning of Year 298,820 - 232,427 - Fund Balance - End of Year $ 287,351 $ - $298,800 $ -
This analysis presents a summary of fund revenues for the year ended June 30, 2022, and the percentages of total revenue for the current year.
Total Commission Fund Revenues
Increase
Percent of {Decrease) Revenue Source 2023 Totals Total from 2022 Federal grants $ 498,163 68.7% $ (256,785) State grants 24,923 3.4% 7,121 Local assessments 40,935 5.6% (3,001) Charges for services 161,091 22.2% 66,979 Rent - 0.0% - Miscellaneous 566 0.1% (7,767) Total $ 725,678 100.0% $ (193,453)
The changes in revenue are due to a decrease in Federal Funds.
The increase in charges for services is due to GHRPC receiving more grant administration and revenue for grant writing services.
Green Hills Regional Planning Commission
Trenton, Missouri
Management's Discussion and Analysis
June 30, 2023
The following analysis presents the Commission's government-wide budget and the variance between the original budget and
the final budget for the year.
Original Budget and Final Budget
Original
Budget Final Budget Variance Revenues: Federal grants $ 486,364 $ 486,364 $ - State grants 24,923 24,923 $ - Local assessments 41,293 41,293 - Charges for services 149,082 149,082 - Rent - - - Miscellaneous - = - Total Revenues $ 701,662 $ 701,662 - Expenditures: $747,420 $747,420 -
The following analysis presents the Commission's agency-wide budget and the variance between the final budget and the
actual results for the year.
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
Final Budget and Actual Results
Final
Budget Actual Variance Revenues: Federal grants $ 486,364 $ 498,163 § 11,799 State grants 24,923 24,923 - Local assessments 41,293 40,935 (358) Charges for services 149,082 161,091 12,009 Rent - - - Miscellaneous : 566 566 Total Revenues $ 701,662 S$ 725,678 $ 24,016 Expenditures: $ 747,420 $737,147 $10,273
The variance between the final budget and actual results is represented by $24,016 in actual revenues under budgeted revenues, and $10,273 actual expenditures under budgeted expenditures.
Capital Assets and Debit Administration
Capital Assets
The Commission does not own land or real estate. It does maintain a list of office equipment and electronic equipment for insurance purposes. These items are expensed when purchased, as they are considered immaterial to the financial statements.
Debt Administration
At year-end, the Commission had no outstanding long-term debts or short-term debts. The only other liabilities consisted of leave payable for employees and unpaid payroll taxes.
Economic Factors
The Commission operates solely in an eleven-county area of Northwest Missouri. It is important that the Commission succeed in the development of Workforce Development, Economic and Community Development, and other projects not only for the eleven county area and its residents, but also for the longevity of the Commission, The Commission has no continued revenue source except a per capita fee charged each county based on the number of residents in each county.
Green Hills Regional Planning Commission Trenton, Missouri Management's Discussion and Analysis June 30, 2023
Request for Information
This financial report is designed to provide a general overview of the Commission's finances for all those with an interest in what the Commission does and how it operates. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Fiscal Manager, Green Hills Regional Planning Commission, 810 Washington Street, Trenton, Missouri 64683.
Debbie Pergande Fiscal Manager
Green Hills Regional Planning Commission Trenton, Missouri
Government-Wide Statement of Financial Position
June 30, 2023
Assets
Governmental Activities
Current Assets: Cash Accounts receivable Prepaid postage Total current assets
Total Assets
Deferred outflows of resources Total Assets plus Deferred outflows of resources
Liabilities and Net Position
Current Liabiliti Accrued liabilities Total current liabilities
Long-term liabilities: Net pension liability Total long-term liabilities
Total Liabilities Deferred inflows of resources Total Liabilities plus Deferred inflows of resources
Net Postion: Unrestricted
Total net position
Total Liabilities and Net Position
See Notes to Financial Statements
$ 193,653 111,538
305,212
305,212
67,663 7:
Sar 861 17,861
180,673
198,534 55,727 254,261
118,614
S$ 372,875
Functions and Programs Primary Government:
Governmental Activities: General Government
General Revenues: Rent Miscellaneous Total general revenues Change in net position
Net Position - Beginning of year
Net Position - End of year
Green Hills Regional Planning Commission Trenton, Missouri Government-Wide Statement of Activities for the Year Ended June 30, 2023
Net Revenue and Change in
Program Revenues Net Position Operating Charges for Grants and Governmental
Expenses Services Contributions Activities $ 718,325 $ 89,472 $ 635,998 $ 7,145 $ 7,353 111,261
See Notes to Financial Statements
$ 118,614
Assets
Assets: Cash Accounts receivable Prepaid postage Total Assets
Liabilities and Fund Balance
Green Hills Regional Planning Commission
Trenton, Missouri
Governmental Funds Balance Sheet
Liabilities: Accrued liabilities Total
Fund Balance: Unrestricted Total
Total Liabilities and Fund Balance
Amounts reported for governmental activities in the statement of net position are different
because:
Deferred outflows of financial resources are not financial resources, and therefore, are
not reported in the funds.
Deferred inflows of financial resources are not financial resources, and therefore, are
not reported in the funds.
reported in the funds.
June 30, 2023 General Special Revenue Total
$ 193,653 193,653 111,538 111,538
21 21
$ 305,212 305,212 $ 17,861 17,861 17,861 17,861
287,351 287,351
287,351 287,351
$ 305,212 67,663 (55,727) Long-term assets(liabilities) are not available or due and payable in the current period, and therefore, are not
(180,673)
118,614
Net position of the governmental activities
See Notes to Financial Statements
Green Hills Regional Planning Commission Trenton, Missouri Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2023
General Special Revenue Total Revenues: Intergovernmental revenue: Federal grants $ - $ 498,163 498,163 State revenue 24,923 - 24,923 Local assessments 40,935 - 40,935 Charges for services 122,972 38,119 161,091 Rent - - - Miscellaneous 566 - 566 Total 189,396 536,282 725,678 Expenditures: Current: Advertising 4,452 - 4,452 Legal and consulting - - - Indirect costs 26,800 86,885 113,685 Insurance 42 - 42 Maintenance and supplies 6,425 11,320 17,745 Memberships 3,731 33,712 37,443 Miscellaneous 2,126 2,243 4,369 Postage 192 209 401 Rent 145 - 145 Salaries and fringe benefits 79,304 379,517 458,821 Telephone and internet 593 1,953 2,546 Training and conferences 1,078 2,817 3,895 Travel 6,780 18,042 24,822 Work experience - 68,781 68,781 Total 131,668 605,479 737,147 Excess (Deficiency) of Revenues Over (under) Expenditures 57,728 (69,197) (11,469) Other Financing Sources (Uses) Operating transfers in (out) (69,197) 69,197 - Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses (11,469) - (11,469) Fund Balance - Beginning of year 298,820 - Fund Balance - End of year $ 287,351 $ - Amounts reported for governmental activities in the statement of activities are different because: Change in pension expense recognized in the statement of activities. 18,822 Changes in Net Position of Governmental Activities 7,353
See Notes to Financial Statements
Notes to Financial Statements
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies
The Green Hills Regional Planning Commission (the Commission) is organized under the Regional Planning and Community Development Act of 1966 (Chapter 251, RSMo). The Commission operates under the direction of an Executive Committee primarily composed of members who represent the local units of government within the boundaries of the region. The Commission provides the following services as authorized by its chapter: prepare or assist in preparing comprehensive plans for entities in the region, contract for special planning services to local governments or other local entities, and coordinate matters of local interest throughout the region.
The accounting policies of the commission conform to accounting principles generally accepted in the United States of America, as applicable to governments. The following is a summary of the significant policies:
A. Reporting Entity: The Commission's reporting entity includes: the Commission's governing board, all related organizations for which the Commission is financially accountable, and other organizations for which the nature and significance of their relationship with the Commission are such that exclusion would cause the Commission's financial statements to be misleading or incomplete.
The Commission would include in its financial reporting entity an organization where the Commission appoints a voting majority of the organization's governing body and it is either able to impose its will on that organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the Commission.
The Commission has determined that no outside agency meets the above criteria and, therefore, no other agency has been included as a component unit in the Commission's financial statements. Additionally, the Council has determined that it is not a component unit of another entity.
B. Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies (continued)
Cc.
Government-Wide Financial Statements:
The government-wide financial statements include the Statement of Financial Position and the Statement of Activities. These statements report financial information for the Commission as a whole, excluding judiciary activities, with most interfund activities removed. Governmental activities include programs supported primarily by fees, state and federal grants, local sources, and other intergovernmental revenues. The Commission has no business-type activities that rely, to a significant extent, on user fees and charges.
The Statement of Activities demonstrates how other people or entities that participate in projects the Commission operates have shared in the payment of direct costs. The "charges for services" column includes payments made by parties that purchase, use, or directly benefit from goods or services provided by a given function or segment of the Commission. Examples include grant administration fees and other local revenues. The “operating grants and contributions" column includes amounts paid by organizations outside the Commission to help meet the operational requirements of a given function. Examples include Federal and State funds. If revenue is not program revenue, it is general revenue used to support the Commission's function.
Fund Accounting:
The Commission used funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped as follows:
Governmental Funds:
General Fund - The General Fund is the main operating fund of the Commission. It is used to account for all financial resources except those required to be accounted for in another fund.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies (continued)
D.
Fund Accounting (continued): Special Revenue Fund - The Special Revenue Fund is used to account for revenues derived from specific revenue sources that are restricted to expenditures for specified purposes.
Fiduciary Fund:
Agency Fund - The Agency Fund accounts for assets and liabilities of the Section 457 employee deferred compensation plan (see note 7). The fund is custodial in nature and does not involve measurement of results of operation.
Measurement Focus and Basis of Accounting: The government-wide financial statements use the economic financial resources measurement focus and are accounted for using the accrual basis of accounting.
The governmental fund financial statements (General Fund and Special Revenue Fund) use a current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Revenue are recognized when they become measurable and collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The period of time the Commission uses to define available is 60 days. Expenditures are recognized under the accrual basis of accounting when the related fund liability is incurred, if measurable.
The major sources of revenue are grants, state financial assistance, member government assessments, local contributed cash, and other revenues as discussed below:
Federal and State Grant Revenue - Grant revenue is recognized when program expenditures are incurred in accordance with program guidelines, Such revenue is subject to review by the funding agency and many result in disallowance in subsequent periods.
State Financial Assistance - State financial assistance is appropriated annually by
the Missouri Legislature, and is recognized at the beginning of each fiscal year upon notification of the amount of the award from the Office of the Governor.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies (continued)
E. Measurement Focus and Basis of Accounting (continued): Member Government Assessments - All member governments are required to pay assessments to the Commission. Assessments are determined annually and are recognized as revenues during the year in which the assessment is for.
Local Contributed Cash - Contributions to grant programs from local governments are recognized as revenue when grant expenditures are incurred for cost reimbursement grants.
Other Revenues - Other revenues are composed primarily of charges for services. Charges for services are recorded as revenues when services are rendered.
F, Governmental Funds Balances: GASB Statement No. 54 establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which the Commission is bound to observe constraints imposed upon the use of its resources reported in governmental funds.
The Commission considers restricted, committed, assigned and unassigned amounts to be spent in that order when expenditures are incurred for which any of those amounts are available.
The Executive Board is responsible for determining any committed or assigned fund balances. To establish, modify, or rescind a fund balance commitment, formal action must be taken by the Executive Board.
At June 30, 2023, the Commission had no nonspendable, restricted, committed, or assigned fund balance.
G. Pooled Cash and Temporary Investments: Cash resources of the individual funds are combined to form a pool of cash.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies (continued)
H.
Capital Assets:
Capital asset acquisitions consisting of office equipment and electronic equipment are reflected as expenditures in the governmental funds and expenses in the statement of activities, as they are considered to be immaterial to the financial statements.
Allowance for Doubtful Accounts: No provisions for doubtful accounts has been made. The Commission believes all accounts receivable as of June 30, 2023, are collectible.
Accumulated Compensated Absences: The Commission accrues a liability for compensated absences which meet the following criteria:
1) The Commission's obligation relating to employee rights to receive compensation for future absences is attributable to an employee's services already rendered.
2) The obligation relates to rights that vest or accumulate. 3) Payment of the compensation is probable. 4) The amount can be reasonably estimated.
In accordance with the above criteria, the Commission has accrued a liability for vacation pay which has been earned but not taken by Commission employees.
Budgets and Budgetary Accounting:
In accordance with the Commission's bylaws, the budget committee submits to the full Commission membership a proposed annual operating budget for adoption at the Commission's annual meeting. The operating budget covers all funds and includes proposed revenues and expenditures for the upcoming year.
The Commission's primary funding source is federal, state and local grants which have grant periods that may or may not coincide with the Commission's fiscal year. These grants normally are for a twelve-month period; however, they can be awarded for periods shorter or longer than twelve months.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
1 Summary of Significant Accounting Policies (continued)
K,
Budgets and Budgetary Accounting (continued):
Because of the Commission's dependency on federal, state and local budgetary decisions, revenue estimates are based upon the best available information as to potential sources of funding.
The annual budget is subject to constant change within the fiscal year due to increases or decreases in actual grant awards from those estimated, changes in grant periods, unanticipated grant awards not included in the budget, and expected grant awards which fail to materialize.
The full membership of the Commission formally approves the annual budget, but greater emphasis is placed on complying with the grant budget, terms and conditions on a grant-bygrant basis. These terms and conditions usually specify the period during which costs may be incurred and outline budget restrictions or allowances.
State Administered Grants: State-administered grants are federal grant monies or appropriated state monies which are allocated to State agencies and then reallocated to local units of government.
Transfers:
Operating transfers are the distribution of local cash resources to grant projects requiring local cash match in accordance with the terms and conditions of the grant contract. Local resources are derived from the Commission's assessments paid by member governments, state financial assistance received from annual state legislature appropriations and other revenues.
Pensions
For the purpose of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Missouri Local Government Employees Retirement System (LAGERS) and additions to/deductions from LAGERS fiduciary net position have been determined on the same basis as they are reported by LAGERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
2 Cash and Investments
The Commission complies with various restrictions on deposits and investments which are imposed by state statues as follows:
A.
Cash:
All deposits with financial institutions must be collateralized in an amount at least equal to uninsured deposits. As required by law, the depository bank is to pledge securities to collateralize deposits in excess of FDIC insurance at all times. As of June 30, 2023, the Commission's deposits were fully covered by FDIC insurance. Cash of the Commission at June 30, 2023, is as follows:
Carrying Value Balance Per Bank Petty cash $s 325 Checking and Money Market account 193,328 $ 206,489 Total $ 193,653 $ 206,489 Investments:
The Commission may invest in certificates of deposit, bonds of the State of Missouri or any wholly owned corporation of the United States, or in other short-term obligations of the United States.
3 Related Party Transactions
The Commission is related to Green Hills Rural Development, Inc. (the Organization) by having the same management as Green Hills Rural Development, Inc. The Commission had a commercial lease with the Organization. Under the lease, the Commission paid the Organization monthly payments of $1,100 for rent of an office building, and was responsible for the repair and upkeep of the interior of the property. The lease expired January, 2012, and the Commission has been renting the office building on a month-tomonth basis. For the year ended June 30, 2023, the Commission paid the Organization $11,500 for rent of the office building.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
3 Related Party Transactions (continued)
The Commission received from the Organization $11,366 during the year ended June 30, 2023, for the administrative services.
The Commission and North Missouri Solid Waste Management District (the District) share administrative personnel. The Commission provides all administrative functions for the District's projects. The District paid $25,782 to the Commission for administrative and accounting for the year ended June 30, 2023.
4 Economic Dependency
The Commission receives a substantial amount of its support from federal, state, and local governments. If a significant reduction in this level of government support were to occur, it may have an effect on the Commission's programs.
5 Contingency
The Commission receives federal grants and state funding for specific purposes that are subject to review and audit. These reviews and audits could lead to requests for reimbursement or to withholding of future funding for expenditures disallowed under, or other noncompliance with, the terms of the grants and funding.
oy
Interfund Balances and Transfers
The Commission must match certain Federal awards with state and local monies. The Commission transfers these monies from the General Fund to the Special Revenue Fund as the expenditures of Federal awards are made. Transfers made from the General Fund to the Special Revenue Fund totaled $69,197 for the year ended June 30, 2023.
Deferred Compensation Plan
Employees of the Commission participated in a deferred compensation plan adopted under the provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to Service for State and Local Governments). Under the plan, participants could elect to defer a portion of their salaries and delay paying taxes on the deferred portion until the withdrawal date. The deferred compensation amount is not available for withdrawal by employees until termination, retirement, death, or unforseeable emergency.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
7 Deferred Compensation Plan (continued)
The deferred compensation plan is administered by Hartford Life Insurance Company. Under the terms of an IRC Section 457 deferred compensation plan, all deferred compensation and income attributable to the investment of the deferred compensation amounts held by the third party administrator, until paid or made available to the employees or beneficiaries, is the property of the Commission subject to the claims of the Commission's general creditors. In addition, the participants in the plan have rights equal to those of the general creditors of the Commission, and each participant's rights are equal to his or her share of the fair market value of the plan assets. The Commission believes that it is unlikely that plan assets will be needed to satisfy claims of general creditors that might arise.
As part of its fiduciary role, the Commission has an obligation of due care in selection of the third-party administrator. Effective February, 2011, the Commission ceased making contributions to the Section 457 plan and entered LAGERS retirement system with the State of Missouri.
The Commission's full-time employees are eligible to be covered under the Missouri Local Government Employment Retirement Systems (LAGERS), which is established under Missouri state statutes as a nonprofit public pension system and is arranged as an agent multiple-employer defined benefit pension plan. Benefits provided by the plan include retirement, disability, and survivors' benefits to local government employees. The total commission payroll for the year ended June 30, 2023, was $303,051, a portion of which was used as a contribution base for LAGERS. The Commission contributed $33,336 to the plan in the year ended June 30, 2023. The contribution rate for the year ended June 30, 2023, was 11%. Employees are required to contribute 4.0% of gross wages to the plan. For more information on the retirement plan, contact Missouri Local Government Employment Retirement Systems, P.O. Box 1665, 701 W. Main Street, Jefferson City, MO 65102.
8 Risk Management
The Commission is exposed to various risks of loss related to torts; theft, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the purchase of commercial insurance and participation in the Missouri Public Entity Risk Management Fund. The Commission assumes liability for any deductibles and claims in excess of coverage limitations.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
8 Risk Management (continued)
The Commission participates in the Missouri Public Entity Risk Management Fund (MOPERM), an association formed by the Missouri General Assembly to operate as a self-insurance fund for Missouri local governments. The purpose of MOPERM is to seek the prevention or lessening of casualty and property losses to member local governments and injuries to persons or employees which might result in claims being made against such subdivisions. The Commission has no direct control over budgeting, financing, the governing body, or management selection.
MOPERM is fully funded by its members. Resources are used to pay losses within specific risk retention limits shared equally by all members, purchase excess insurance which provides a transfer of catastrophic tisk to private insurance carriers, purchase services such as claims administration and data processing, and pay administrative expenses. Coverage obtained by the Commission though MOPERM includes general liability, employee benefit liability, public officials' error and omissions, and employment practices liability. Per-occurrence coverage limits provided by MOPERM are $2,000,000 for all of the previously mentioned types of coverage. Losses from individual claims in excess of these limits remain the responsibility of the respective entities.
The contribution made by the Commission to MOPERM for the year ended June 30, 2023, was $11,172.
9 General Information about the Pension Plan
Plan description
The Commission defined benefit pension plan provides certain retirement, disability and death benefits to plan members and beneficiaries. The Commission participates in the Missouri Local Government Employees Retirement System (LAGERS). LAGERS is an agent multiple-employer, statewide public employee pension plan established in 1967 and administered in accordance with RSMo. 70.600-70.755. As such, it is LAGERS' responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and is tax exempt. The responsibility for the operations and administration of LAGERS is vested in the LAGERS Board of Trustees consisting of seven persons. LAGERS issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained by accessing the LAGERS website at www.molagers.org.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
9 General Information about the Pension Plan (continued)
Provided
LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted by the governing body of the employer, within the options available in the state statutes governing LAGERS. All benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for police and fire) with 5 or more years of service are entitled to an allowance for life based upon the benefit program information provided below. Employees may retire with an early benefit with a minimum of 5 years of collected service and after attaining age 55 (50 for police and fire) and received a reduced allowance.
2023 Valuation
Benefit Multiplier 1.50% Final Average Salary S Years Member Contributions 4.00%
Benefit terms provide for annual post retirement adjustments to each member's retirement allowance subsequent to the member's retirement date. The annual adjustment is based on the increase in the Consumer Price Index and is limited to 4% per year,
Employees covered by benefit terms
At June 30, 2023, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 4 Inactive employees entitled to but not yet receiving benefits 2 Active employees 7
Contributions
The employer is required to contribute amounts at least equal to the actuarially determined rate, as established by LAGERS. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance and unfunded accrued liability. Full-time employees of the employer contribute 4% of their gross pay to the pension plan. Employer contribution rates are 11% of annual covered payroll.
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
9 General Information about the Pension Plan (continued)
Net pension liability
The employer's net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of February 28, 2023.
Actuarial assumptions
The total pension liability in the February 28, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50% Salary Increase 3.25% to 6.55% including inflation Investment rate of return 7.25%
Mortality rates were based on the RP-2014 Healthy annuitant mortality table for both males and females. The disabled retiree mortality tables, for post-retirement mortality, were the RP-2014 disabled mortality table for males and females. The pre-retirement mortality tables used were the RP-2014 employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the observation period base year of 2006. The base year for males was then established to be 2017. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to the above described tables.
The actuarial assumptions used in the February 28, 2023 valuation were based on the results of an actuarial experience study for the period March 1, 2010 through February 28, 2023.
The long-term expected rate of return on pension plan investments was determined using a model method in which the best-estimate ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Allocation Real Rate of Return Equity 48.50% 5.50% Fixed Income 25.00% 2.25% Real Assets 20.00% 4.50% Strategic Assets 6.50% 7.50%
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
9 General Information about the Pension Plan (continued) Discount rate
The discount rate used to measure the total pension liability is 7.00%. The projection of cash flows used to determine the discount rate assumes that employer and employee contributions will be made at the rates agreed upon for employees and the actuarially determined rates for employers. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to pay all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payment to determine the total pension liability.
Changes in the Net Pension Liability(asset)
Increase (Decrease)
Plan Fiduciary Net Pension Total Pension Liability Net Position Liability (Asset) Balance at June 30, 2022 $ 812,992 $ 706,413 5 106,579 Changes for the year: Service cost 28,851 28,851 Interest 56,422 56,422 Changes in assumptions - - Difference between expected and actual experience 57,750 57,750 Contributions - employer 33,336 (33,336) Contributions - employee 12,122 (12,122) Net investment income 23,993, (23,993) Benefit payments, including refunds (43,030) (43,030) - Administrative expense (1,979) 1,979 Other changes 1,457 (1,457) Net changes 99,993 25,899 74,094 Balance at June 30, 2023 $ 912,985 $ 732,312 _$ 180,673
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
9 General Information about the Pension Plan (continued)
Sensitivity of the net pension liability to changes in the discount rate
The following presents the Net Pension Liability of the employer, calculated using the discount rate of 7.00%, as well as what the employer's Net Pension Liability would be using a discount rate that is 1 percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate.
Current Single Discount
1% Discount Rate Assumption 1% Increase 6.00% 7.00% 8.00% Total Pension Liability 1,024,373 912,985 819,094 Plan Fiduciary Net Position 732,312 732,312 732,312 Net Pension Liability/(Asset) 292,061 180,673 86,782
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2023 the employer recognized pension expense of $136,699. The employer reported deferred outflows and inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources Differences in experience 60,677 (44,273) Differences in assumptions 6,986 (2,687) Excess (deficit) investment returns - (8,776) Total 67,663 (55,727)
Green Hills Regional Planning Commission Trenton, Missouri Notes to Financial Statements June 30, 2023
9 General Information about the Pension Plan (continued)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended:
2024 (13,628) 2025 (13,957) 2026 29,498 2027 10,023 2028 - Thereafter :
11,936
Payable to the Pension Plan
At June 30, 2023, the Commission reported a payable of $ 0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.
Section Il Required Supplementary Information
Revenues: Intergovernmental revenue:
Federal grants
State revenue
Local assessments Charges for services Rent Miscellaneous
Total
Expenditures: Current: Advertising Audit and legal Indirect costs Insurance Interest Maintenance and supplies Membership and fees Miscellaneous Postage Rent Salaries and fringe benefits Telephone and internet Training and conferences Travel Work experience Utilities Total
Excess (Deficiency) of Revenues Over (Under) Expenditures
Fund Balance - Beginning of year
Fund Balance - End of year
Green Hills Regional Planning Commission
and Changes in Fund Balance - Budget and Actual
Trenton, Missouri Required Supplemental Schedule of Revenues, Expenditures,
for the Year Ended June 30, 2023
All Governmental Funds
Variance Favorable
Original Budget Final Budget Actual (Unfavorable) $ 486,364 $ 486,364 498,163 $ 11,799 24,923 24,923 24,923 - 41,293 41,293 40,935 (358) 149,082 149,082 161,091 12,009 - - 566 566 701,662 701,662 725,678 24,016 5,311 5,311 4,452 859 4,100 4,100 - 4,100 - - 113,685 (113,685) 11,500 11,500 42 11,458 62,366 62,366 17,745 44,621 9,200 9,200 37,443 (28,243) 4,400 4,400 4,369 31 1,368 1,368 401 967 13,220 13,220 145 13,075 517,280 517,280 458,821 58,459 4,800 4,800 2,546 2,254 7,700 7,700 3,895 3,805 29,475 29,475 24,822 4,653 67,700 67,700 68,781 (1,081) 9,000 9,000 = 9,000 747,420 747,420 737,147 10,273 3 (45,758) _$ (45,758) (11,469) $34,289 298,820
287,351
Section Ill Supplemental information
Section IV Compliance and Internal Control
CONRAD & HIGGINS, LLC
CERTIFIED PUBLIC ACCOUNTANTS
1422 N. Washington 405 N Broadway Chillicothe, MO 64601 Princeton, MO 64673 (660) 240-0645, (660) 748-4423 Fax ~ (660) 240-0654 Fax ~ (660) 748-4422
Independent Auditors' 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
Executive Committee Green Hills Regional Planning Commission Trenton, Missouri
We have audited, in accordance with the auditing 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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Green Hills Regional Planning Commission, Trenton, Missouri, (the Commission) as of and for the year ended June 30, 2023, and the related notes to the finanical statements, which collectively comprise the Commission's basic financial statements and have issued our report thereon dated March 18, 2024.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting (internal control) as a basis for designing our auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or-a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.’ Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Conn H+ Magar, Lee
Conrad & Higgins, LLC March 18, 2024
CONRAD & HIGGINS, LLC
CERTIFIED PUBLIC ACCOUNTANTS
1422 N, Washington 405 N Broadway Chillicothe, MO 64601 Princeton, MO 64673 (660) 240-0645, (660) 748-4423 Fax ~ (660) 240-0654 Fax ~ (660) 748-4422
Independent Auditors' Report on Compliance With Indirect Cost Allocation Plan Requirements
Executive Committee Green Hills Regional Planning Commission Trenton, Missouri
We have examined management's assertion, including in its representation letter dated March 18, 2024, about Green Hills Regional Planning Commission's (the Commission) compliance with its allowable indirect cost allocation plan as required for federal grants during the year ended June 30, 2023. As discussed in that representation letter, management is responsible for the Commission's compliance with those requirements. Our responsibility is to express an opinion on management's attestation about the Commission's compliance based on our examination.
Our examination was made in accordance with attestation standards éstablished by the American Institute of Certified Public Accountants, and in accordance with standards applicable to attestations contained in Government Auditing Standards, issued by the Comptroller General of the United States, and accordingly included examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Commission's compliance with specified requirements.
In our opinion, management's assertion that the Commission ha¢ complied with the aforementioned requirements for the year ended June 30, 2023, is fairly stated in all respects.
This report is intended solely for the information and use of the executive committee, management, others within the entity, and the federal and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.
4, OC 2. Mg, 466 Conrad & Higgins, LLC March 18, 2024
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