Eaton County,
Michigan
Year Ended
September 30,
2015
Financial
Statements and
Single Audit Act
Compliance
EATON COUNTY, MICHIGAN
Table of Contents
Page
Introductory Section
Letter of Transmittal
Organizational Chart
Principal Officials
Financial Section
1
3
5
6
7
Independent Auditors’ Report
Management’s Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet – Governmental Funds
Reconciliation of Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds
Reconciliation of Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
Statement of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual:
General Fund
Central Dispatch Special Revenue Fund
Child Care Special Revenue Fund
Statement of Net Position – Proprietary Funds
Statement of Revenues, Expenses and Changes in
Fund Net Position – Proprietary Funds
Statement of Cash Flows – Proprietary Funds
Statement of Fiduciary Net Position - Fiduciary Funds
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
Combining Statement of Net Position – Discretely Presented Component Units
Combining Statement of Activities – Discretely Presented Component Units
Notes to Financial Statements
9
13
38
39
41
42
43
44
45
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - County:
Schedule of Changes in the County's Net Pension Liability and Related Ratios
Schedule of the Net Pension Liability
Schedule of Contributions
94
95
96
26
27
30
31
32
33
34
35
36
37
MERS Agent Multiple-Employer Defined Benefit Pension Plan - Health and Rehabilitation Services Facility:
Schedule of Changes in the Facility's Net Pension Liability and Related Ratios
97
Schedule of the Net Pension Liability
98
Schedule of Contributions
99
EATON COUNTY, MICHIGAN
Table of Contents
Page
Required Supplementary Information (concluded)
MERS Agent Multiple-Employer Defined Benefit Pension Plan - District Health:
Schedule of Changes in the District's Net Pension Liability and Related Ratios
Schedule of the Net Pension Liability
Schedule of Contributions
Postemployment Healthcare Plan - Retiree Health:
Schedule of Funding Progress
Schedule of Employer Contributions
Combining and Individual Fund Financial Statements and Schedules
General Fund:
Detailed Schedule of Revenues and Other
Financing Sources - Budget and Actual
Detailed Schedule of Expenditures and Other
Financing Uses - Budget and Actual
Nonmajor Governmental Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances
Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual - Nonmajor Special Revenue Funds
Nonmajor Enterprise Funds:
Combining Statement of Net Position
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position
Combining Statement of Cash Flows
Internal Service Funds:
Combining Statement of Net Position
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position
Combining Statement of Cash Flows
Combining Statement of Fiduciary Assets and Liabilities
100
101
102
103
103
106
109
112
120
128
139
140
141
142
144
146
148
EATON COUNTY, MICHIGAN
Table of Contents
Page
Combining and Individual Fund Financial Statements and Schedules (concluded)
Discretely Presented Component Units:
Board of Public Works:
Statement of Net Position and Governmental Funds Balance Sheet
Reconciliation of Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Reconciliation of Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
Drainage Districts:
Statement of Net Position and Governmental Funds Balance Sheet
Reconciliation of Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Reconciliation of Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
District Health Department:
Statement of Net Position and Governmental Funds Balance Sheet
Reconciliation of Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Reconciliation of Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
150
153
154
157
158
161
162
165
166
167
168
169
EATON COUNTY, MICHIGAN
Table of Contents
Page
Single Audit Act Compliance
171
Independent Auditors’ Report on the Schedule of Expenditures
of Federal Awards Required by OMB Circular A-133
173
Schedule of Expenditures of Federal Awards
174
Notes to Schedule of Expenditures of Federal Awards
177
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
179
Independent Auditors’ Report on Compliance for
Each Major Federal Program and on Internal Control over
Compliance Required by OMB Circular A-133
181
Schedule of Findings and Questioned Costs
184
Summary Schedule of Prior Audit Findings
188

INTRODUCTORY SECTION
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2
EATON COUNTY CONTROLLER/PERSONNEL
March 9, 2016
1045 Independence
Blvd
Charlotte, MI 48813
(517) 543-2122
(517) 543-3331 Fax
John F. Fuentes
CPA
Controller/
Administrator
Connie L. Sobie
Deputy
Controller/
Administrator
Melissa Howell
Accountant
To the Members of the Board of Commissioners:
The Annual Financial Report of Eaton County, Michigan for the fiscal year ended September 30, 2015,
is hereby submitted. Responsibility for both the accuracy of the presented information and the
completeness and fairness of the presentation, including all disclosures, rests with the County. We
believe the enclosed information is accurate in all material respects and is reported in a manner
designed to present fairly the financial position and results of operations of the various funds and
account groups of the County. These financial statements have been prepared in accordance with
generally accepted accounting principles for local governments as prescribed by the Governmental
Accounting Standards Board (GASB). All disclosures necessary to enable the reader to gain an
understanding of the County’s financial activities have been included.
Format
The report is presented in two sections: Introductory and Financial. The Introductory section
includes this transmittal, an organizational chart, and a list of principal officials. The Financial
section includes the independent auditor’s report, management’s discussion and analysis, the basic
financial statements, required supplementary information, and the combining and individual fund
financial statements and schedules.
Reporting Entity
The financial reporting entity includes all the funds of the County as well as all of its component
units. Component units are legally separate entities for which the primary government is financially
accountable.
Blended Component Units – although legally separate entities, they are, in substance, part of the
primary governments operations and are included as part of the primary government. The following
organizations are reported within the combining and individual fund financial statements:
· Eaton County Department of Human Services
· Eaton County Health and Rehabilitation Services Facility
· Eaton County Building Authority
Discretely Presented Component Units – are legally separate from the primary government and are
reported in separate columns in the combined financial statements to differentiate their financial
position and results of operations from those of the primary government. The following are reported
as discretely presented component units:
· Eaton County Road Commission
· Eaton County Board of Public Works
· Eaton County Drainage Districts
Joint Ventures – are legal entities that result from a contractual arrangement, or interlocal
agreement, which is owned, operated, or governed by two or more participants. The following is
reported as a discretely presented component unit:
3
· Barry/Eaton District Health Department
The following Related Organization did not meet the financial accountability criteria and has been
excluded from the County’s financial statements:
· Eaton County Transportation Authority
Financial Reporting and Auditing
The County is required to undergo an annual single audit in conformity with the provisions of the
Single Audit Act Amendments of 1996 and United States Office of Management and Budget Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Information pertaining to
this single audit, including the auditors’ reports on the internal control structure and compliance with
laws and regulations, the schedule of federal awards and a schedule of findings and questioned costs,
is presented in this report.
Independent Audit
The State of Michigan requires that an annual audit of the financial records and transactions of all
departments of the County be performed by an independent certified public accountant. In addition,
the audit is designed to meet the requirements set forth in the Single Audit Act of 1984 and related
OMB Circular A-133. The auditors’ report on the financial statements is included in the financial
section of the report. The auditor’s reports relating specifically to the single audit are presented in
this report as well.
Respectfully submitted,
John Fuentes
Controller
4
EATON COUNTY, MICHIGAN
Organizational Chart
5
EATON COUNTY, MICHIGAN
PRINCIPAL OFFICIALS
For the Year Ended September 30, 2015
Board of Commissioners
Michael Hosey
Blake Mulder - Chairman
Terrance Augustine
Howard T. Spence
Jim Osieczonek
Jane Whitacre
Glenn Freeman III
Joseph C. Brehler
Wally Miars
Roger A. Eakin - Vice-Chairman
Wayne Ridge
Brian Lautzenheiser
Kent C. Austin
Jeremy Whittum
Barbara Rogers
District 1
District 2
District 3
District 4
District 5
District 6
District 7
District 8
District 9
District 10
District 11
District 12
District 13
District 14
District 15
Tom Reich
County Sheriff
Diana Bosworth
County Clerk/Register of Deeds
Robert A. Robinson
County Treasurer
Douglas R. Lloyd
Prosecuting Attorney
Richard Wagner
Drain Commissioner
John Fuentes, CPA
Controller/Administrator
Connie Sobie
Deputy Controller/Administrator
Administration
6
FINANCIAL SECTION
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Rehmann Robson
2330 East Paris Ave. SE
Grand Rapids, MI 49546
Ph: 616.975.4100
Fx: 616.975.4400
rehmann.com
INDEPENDENT AUDITORS' REPORT
March 9, 2016
The Board of Commissioners
Eaton County, Michigan
Charlotte, Michigan
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Eaton County, Michigan (the “County”), as of and for the
year ended September 30, 2015, and the related notes to the financial statements, which collectively
comprise the County’s basic financial statements as listed in the table of contents.
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.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the Eaton County Health and Rehabilitation Services Enterprise Fund,
which is a major fund and therefore a separate opinion unit that represents 63 percent, 50 percent,
and 94 percent, respectively, of the assets, net position, and revenues of the business-type activities.
We also did not audit the financial statements of the Eaton County Road Commission, a component unit
of the County that represents 42 percent, 51 percent and 65 percent, respectively, of the assets, net
position, and revenues of the total discretely presented component units. Those statements were
audited by other auditors whose reports have been furnished to us and our opinion, insofar as it relates
to the amounts included for the Eaton County Health and Rehabilitation Services and the Eaton County
Road Commission, is based solely on the reports 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 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. The financial statements of the Eaton County Health and Rehabilitation Services were
not audited in accordance with Government Auditing Standards.
9
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 opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred
to previously present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of Eaton County, Michigan, as of
September 30, 2015, and the respective changes in financial position and, where applicable, cash flows
thereof and the respective budgetary comparison for the general fund and each major special revenue
fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Implementation of GASB Statement No. 68
As described in Note 18, the County implemented the provisions of GASB Statement No. 68, Accounting
and Financial Reporting for Pensions, in the current year. Accordingly, beginning net position of
governmental activities, the Health and Rehabilitation Services Facility enterprise fund, business-type
activities, the District Health discretely presented component unit, and the aggregate discretely
presented component units was restated. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s
discussion and analysis and the schedules for the pension and other postemployment benefits plans
listed in the table of contents 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
management 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.
10
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The combining and individual fund
financial statements and schedules and the introductory section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate 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 combining and individual fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The introductory section has not been subjected to the auditing procedures applied in the audit of the
basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 9,
2016, on our consideration of Eaton County, Michigan’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 the County's
internal control over financial reporting and compliance.
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12
MANAGEMENT'S DISCUSSION AND ANALYSIS
13
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
As management of Eaton County, Michigan we offer the readers of the County’s financial statements this narrative
overview and analysis of the financial activities of the County for the fiscal year ended September 30, 2015. We
encourage readers to consider the information presented here in conjunction with additional information that we have
furnished in the accompanying basic financial statements.
Financial Highlights
· The County implemented GASB Statement No. 68 in the current year. In addition to expanded disclosure
requirements, the County is required to report its net pension liability on the statement of net position. At
September 30, 2015, the County's net pension liability totaled $51,933,474.
· The County’s total net position decreased by $4,810,548 during 2015, which consisted of a decrease of $6,215,687
for governmental activities and an increase of $1,405,139 for business-type activities.
· As of the close of the current fiscal year, the County’s governmental funds (this includes the general, special
revenue, debt service, capital projects and permanent funds) reported combined ending fund balances of
$10,519,660, an increase of $701,230 in comparison with the prior year, as a result of increased property tax
revenues and reduction in capital outlay expenditures. Of the fund balance amount, $6,450,378 is available for
spending at the government’s discretion (unassigned fund balance) subject to the inherent limitations of the
various funds.
· The general fund had an increase of $1,023,914 for 2015, as a result of increased property tax revenues and a
reduction in capital outlay expenditures. At the end of the year, unassigned fund balance for the general fund was
$6,450,378 or approximately 20.6 percent of total general fund expenditures. Total fund balance for the general
fund was $6,601,295.
· The County’s total bonded debt, which excludes delinquent tax notes, decreased by $1,438,394 during the current
fiscal year as a result of annual principal repayments of obligations.
Using this Annual Report
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of
Activities provide information about the activities of the County as a whole (government-wide financial statements)
and present a longer-term view of the County’s finances. Fund financial statements tell how these services were
financed in the short-term as well as what remains for future spending. Fund financial statements also report the
County’s operations in more detail than the government-wide statements by providing information about the County’s
most significant funds.
The remaining statements provide financial information about activities for which the County acts solely as a trustee or
agent for the benefit of those outside of the government. The notes to the financial statements provide additional
information that is essential to a full understanding of the data provided in the government-wide and fund financial
statements.
Reporting the County as a Whole
The Statement of Net Position and the Statement of Activities. One of the most important questions asked about the
County’s finances is, “Is the County as a whole better off or worse off as a result of this year’s activities?” The
Statement of Net Position and the Statement of Activities report information about the County as a whole and about its
activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources
and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received
or paid.
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EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
These two statements report the County’s net position and changes in them. One can think of the County’s net position
as one way to measure the County’s financial health. Over time, increases or decreases in the County’s net position are
one indicator of whether its financial health is improving or deteriorating. During 2015, the net position of the County
decreased by $4,810,548. Two of the most significant factors for this decrease were the result of the implementation
of GASB 68 and the establishment of and initial contributions to the retiree healthcare trust fund.
The Statement of Net Position and the Statement of Activities, present information about the following:
Governmental activities. All of the County’s basic services are considered to be governmental activities, including
legislative, judicial, general government, public safety, public works, health and social services, parks, recreation and
culture, and other activities. Property taxes, intergovernmental revenue and charges for services finance most of these
activities.
Business-type activities. Other functions of the County that are intended to recover all or a significant portion of their
costs through user fees and charges are considered to be business-type activities. These include delinquent tax
collections, the jail commissary, foreclosing government unit and the Eaton County Health and Rehabilitation Services
Facility.
Component units. The County includes four legally separate entities in its financial statements: the Eaton County
Road Commission, Board of Public Works, the Eaton County Drainage Districts, and the Barry/Eaton District Health
Department. Although legally separate, these “component units” are important because the County is financially
accountable for them.
Financial statements for these component units are reported separately from the financial information presented for
the primary government itself. The Eaton County Building Authority, although also legally separate, functions for all
practical purposes as a department of the County, and therefore has been included as an integral part of the primary
government.
Reporting the County's Most Significant Funds
Fund Financial Statements. The fund financial statements provide detailed information about the most significant
funds – not the County as a whole. Some funds are required to be established by State law or bond covenants.
However, the County establishes many other funds to help control and manage money for particular purposes or to
show that it is meeting legal responsibilities for using certain taxes, grants and other money. The County’s two primary
kinds of funds – governmental and proprietary – use different accounting approaches.
Governmental funds. Most of the County’s basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances left at year-end that are available for spending. These funds
are reported using an accounting method called the modified accrual basis of accounting, which measures cash and all
other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed
short-term view of the County’s general governmental operations and the basic services it provides.
Governmental fund information helps one determine whether there are more or fewer financial resources that can be
spent in the near future to finance the County’s programs. Because the focus of the governmental funds is narrower
than that of the government-wide financial statements, it is useful to compare the information presented for
governmental funds with similar information presented for governmental activities in the government-wide financial
statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
15
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
The County maintains numerous individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in
fund balances for the general, central dispatch, and child care funds, each of which is considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these nonmajor governmental funds is provided in the form of combining statements as identified in the table
of contents.
Proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. The County uses
enterprise funds to account for delinquent tax operations, county health and rehabilitation operations, the operation
of a jail commissary, and the operation of a foreclosing governmental unit. Internal service funds are an accounting
device used to accumulate and allocate costs internally among the County’s various functions. The County uses internal
service funds to account for self-insurance and fringe benefit programs. Because these services predominantly benefit
governmental rather than business-type functions, they have been included within the governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the delinquent tax operation and
county health and rehabilitation, both of which are considered to be major funds of the County. All internal service
funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for the internal service funds is provided in the form of combining statements elsewhere in this report.
Reporting the County's Fiduciary Responsibilities
The County is the trustee, or fiduciary, for certain amounts on behalf of others. Fiduciary funds are used to account for
the resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not available to support the County’s
own programs. The County’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and a
Statement of Changes in Fiduciary Net Position. The accounting used for fiduciary funds is much like that used for
proprietary funds. The County is responsible for ensuring that the assets reported in these funds are used for their
intended purposes.
Additional Information
Notes to Financial Statements. The notes provide additional information that is essential for a full understanding of
the data provided in the government-wide and fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information. This is limited to this management's discussion and analysis and the
schedules for the MERS pension and other postemployment benefits plans immediately following the notes to the
financial statements. The combining and individual fund financial statements and schedules are presented immediately
following the required supplementary information.
Financial Analysis of the County as a Whole
The government-wide financial analysis focuses on the net position and changes in net position of the County’s
governmental and business-type activities. As noted earlier, net position may serve over time as a useful indicator of a
government’s financial position. As the following table demonstrates, the net position of the County was in a deficit as
a result of the implementation of GASB 68 at September 30, 2015.
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EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
Net Position
Governmental Activities
Assets
Current and other assets
Capital assets, net
Total assets
Deferred outflows
Liabilities
Long-term liabilities
Other liabilities
Total liabilities
Net position
Net investment in
capital assets
Restricted
Unrestricted
Total net position
Business-type Activities
Total
2015
2014
2015
2014
2015
2014
$ 18,965,300
30,090,181
49,055,481
$ 22,605,716
30,294,649
52,900,365
$ 19,008,764
15,621,636
34,630,400
$ 18,461,290
15,725,426
34,186,716
$ 37,974,064
45,711,817
83,685,881
$41,067,006
46,020,075
87,087,081
3,206,343
-
453,518
39,974
3,659,861
39,974
15,731,077
65,701,920
81,432,997
16,423,284
13,950,197
30,373,481
9,955,184
2,760,871
12,716,055
10,879,360
2,089,225
12,968,585
25,686,261
68,462,791
94,149,052
27,302,644
16,039,422
43,342,066
16,732,394
16,133,648
3,369,709
3,224,222
(49,273,276)
3,169,014
$(29,171,173) $ 22,526,884
7,556,929
14,810,934
$ 22,367,863
6,865,805
14,392,300
$ 21,258,105
24,289,323
22,999,453
3,369,709
3,224,222
(34,462,342)
17,561,314
$ (6,803,310) $ 43,784,989
A portion of the County’s net position, $24,289,323 is its investment in capital assets (i.e., land, buildings, vehicles,
equipment and infrastructure), net of any related debt used to acquire those assets that is still outstanding. The
County uses these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the County’s net position, $3,369,709 represents resources that are subject to external
restrictions on how they may be used.
The County’s net position decreased by $4,810,548 during the current fiscal year; a decrease of $6,215,687 for
governmental activities and an increase of $1,405,139 for business-type activities. The decrease in governmental
activities net position was due in part to the implementation of GASB 68 and the establishment of and initial
contributions to the retiree healthcare trust fund. The increase in business-type activities was a result of a large
increase in charges for services (private insurer reimbursements) from the health and rehabilitation services facility
combined with moderate increases in expenses, net of a decrease in charges for services in the delinquent tax
revolving fund.
Governmental activities. Governmental activities decreased the County’s net position by $6,215,687 The cost of all
governmental activities this year was $49,809,463 compared to $44,769,771 from the prior year. Key elements of the
decrease in net position, in addition to those matters discussed previously, is as follows:
· Property tax revenue increased by $542,466.
· County's share of the City of Charlotte tax abatement clawback litigation in the amount of $486,757.
17
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
Change in Net Position
Governmental Activities
Revenues
Program revenues:
Charges for services
Operating grants
General revenues:
Property taxes
Grants and contributions
not restricted to
specific programs
Unrestricted investment
earnings
Total revenues
Expenses
Legislative
Judicial
General government
Public safety
Public works
Health and social services
Parks, recreation, and cultural
Other
Unallocated depreciation
Interest on long-term debt
Health and Rehabilitation
Services
Jail commissary
Delinquent tax collections
Foreclosing government unit
Total expenses
Change in net position,
before transfers
Transfers
Business-type Activities
Total
2015
2014
2015
2014
2015
2014
$ 5,062,418
9,296,145
$ 4,644,789
9,188,521
$ 19,503,786
9,572
$ 19,422,210
7,117
$ 24,566,204
9,305,717
$24,066,999
9,195,638
24,413,976
23,871,510
433,922
384,813
24,847,898
24,256,323
4,099,211
2,998,683
-
-
4,099,211
2,998,683
256,426
43,128,176
394,070
41,097,573
19,947,280
19,814,140
256,426
63,075,456
394,070
60,911,713
316,454
5,980,696
9,258,188
22,894,828
380,623
7,527,043
499,126
490,726
1,853,586
608,193
260,251
5,769,942
7,884,162
20,473,208
489,638
6,537,574
409,812
668,325
1,665,038
611,821
-
-
316,454
5,980,696
9,258,188
22,894,828
380,623
7,527,043
499,126
490,726
1,853,586
608,193
260,251
5,769,942
7,884,162
20,473,208
489,638
6,537,574
409,812
668,325
1,665,038
611,821
49,809,463
44,769,771
17,833,051
31,628
135,578
76,284
18,076,541
17,163,183
28,692
183,411
17,375,286
17,833,051
31,628
135,578
76,284
67,886,004
17,163,183
28,692
183,411
62,145,057
(6,681,287)
(3,672,198)
1,870,739
2,438,854
(4,810,548)
(1,233,344)
465,600
402,351
(465,600)
(402,351)
-
-
Change in net position
(6,215,687)
(3,269,847)
1,405,139
2,036,503
(4,810,548)
(1,233,344)
Net position, beginning of year
22,526,884
25,796,731
21,258,105
19,221,602
43,784,989
45,018,333
Restatement for the
implementation of GASB 68
Net position, end of year
(45,482,370)
-
(295,381)
$(29,171,173) $ 22,526,884
$ 22,367,863
18
$ 21,258,105
(45,777,751)
-
$ (6,803,310) $ 43,784,989
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
Business-type activities. Business-type activities increased the County’s net position by $1,405,139 for the current
year. Key elements of the current year increase are as follows:
· The County Health and Rehabilitation Services Facility reported an increase in net position of $1,043,846.
· Operating revenues of the Facility increased from the prior year by $706,671 while operating expenses increased
by $688,209 over the prior year.
Financial Analysis of the County's Funds
As noted earlier, Eaton County uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the County’s governmental funds is to provide information on near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the County’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the County’s governmental funds reported combined ending fund balances of
$10,519,660, an increase of $701,230 in comparison with the prior year. Of the fund balance amount, $6,450,378
constitutes unassigned fund balance, which is available for spending at the government’s discretion.
The general fund is the chief operating fund of the County. At the end of the current fiscal year, unassigned fund
balance of the general fund was $6,450,378, while total fund balance was $6,601,295. As a measure of the general
fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund
balance represents 20.6 percent of the total general fund expenditures.
The fund balance of the County’s general fund increased by $1,023,914 during the current fiscal year. An increase in
property tax revenues of $530,726, charges for services of $246,449, the County's share of the City of Charlotte tax
abatement clawback litigation in the amount of $486,757 and increases to intergovernmental funding all contributed to
the current year increase in fund balance.
The central dispatch fund has a fund balance of $1,911,668, a decrease of $284,531 for the year. The decrease was
primarily due to transfers made to other funds.
The child care fund has a fund balance of $53,262, a decrease of $26,203 for the year.
Proprietary funds. The County’s proprietary funds provide the same type of information in the government-wide
financial statements, but in more detail.
Unrestricted net position of the health and rehabilitation services facility and delinquent tax revolving enterprise funds
at the end of the year amounted to $3,607,729 and, $10,871,664, respectively. The health and rehabilitation services
fund had an increase in net position for the year of $1,043,846, while the delinquent tax revolving fund had an increase
of $224,145. Other factors concerning the finances of the enterprise funds have already been addressed in the
discussion of the County’s business-type activities.
General Fund Budgetary Highlights
Revenues in the general fund increased by $246,058 from the original to the final budget based on an increase in court
costs resulting from the People v. Cunningham Michigan Supreme Court ruling.
Expenditures in the general fund increased by $837,225 from the original to the final budget related to Public
Improvement projects, Computer Fund projects/equipment and body and in-car camera acquisitions.
19
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The County’s investment in capital assets for its governmental and business-type activities as of
September 30, 2015 amounted to $45,711,817 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, improvements, and vehicles and equipment. The net decrease in the County’s investment in
governmental activities capital assets for the current fiscal year was $204,468. The County’s business-type activities’
capital assets decreased by $103,790. This was due to annual depreciation and no significant additions.
Capital Assets (Net of Depreciation)
Governmental Activities
2015
Land and land improvements
Buildings and improvements
Vehicles and equipment
Construction in progress
$
Total capital assets, net
$ 30,090,181
102,628
23,455,660
5,970,246
561,647
Business-type Activities
2014
$
2015
102,628
24,510,527
2,364,150
3,317,344
$
$ 30,294,649
14,567,264
1,032,142
22,230
$ 15,621,636
Total
2014
$
12,663,982
754,148
2,307,296
$ 15,725,426
2015
$
2014
102,628
38,022,924
7,002,388
583,877
$ 45,711,817
$
102,628
37,174,509
3,118,298
5,624,640
$ 46,020,075
Long-Term Debt. At the end of the current fiscal year, the County had total bonded debt outstanding of $19,472,646;
this entire amount comprises debt backed by the full faith and credit of the County.
Long-term Debt
Governmental Activities
Business-type Activities
Total
2015
2014
2015
2014
2015
2014
General obligation bonds
Installment contracts
Issuance premiums
Lease payable
Delinquent tax notes
Compensated absences
$ 11,410,000
1,942,279
5,508
2,373,290
$ 12,115,000
2,040,034
5,967
2,262,283
$ 8,062,646
36,986
1,634,500
221,052
$ 8,796,040
63,581
1,811,000
208,739
$ 19,472,646
1,942,279
5,508
36,986
1,634,500
2,594,342
$20,911,040
2,040,034
5,967
63,581
1,811,000
2,471,022
Total long-term debt
$ 15,731,077
$ 16,423,284
$ 9,955,184
$ 10,879,360
$ 25,686,261
$ 27,302,644
The County’s total general obligation debt decreased by $1,438,394 (6.9 percent) during the current fiscal year.
The County has an “AA-” rating for general obligation bonds from Standard & Poor’s.
State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its total
assessed valuation (i.e., State Equalized Value). The current debt limitation for the County is $386,904,032 which is
significantly in excess of the County’s outstanding general obligation debt.
20
EATON COUNTY, MICHIGAN
Management's Discussion and Analysis
Economic Factors and Next Year’s Budget and Rates
The following factors were considered in preparing the County’s budget for the 2016 fiscal year:
· The County Property Tax Revenue increased by $382,000.
· Court Costs increased by $331,000.
· The County increased its total expenditure budget by $981,140. Of this amount the following increases are
highlighted:
· Total personnel costs increased by $925,000 due to the increases in salary and fringe benefit costs.
· A decrease in the Capital Outlay of $31,000, primarily to replacements to public safety vehicle fleet during the
prior year.
During the current fiscal year, the unassigned fund balance in the general fund increased by $1,018,820. The general
rule of thumb is that fund balances can be used to help government weather bad times but should not be used as a
means of funding routine operations.
Contacting the County's Controller/Administrator
This financial report is designed to provide a general overview of the County’s finances for all those with an interest in
the government’s finances. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to Eaton County Controller/Administrator, 1045 Independence Boulevard,
Charlotte, Michigan 48813.
21
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22
BASIC FINANCIAL STATEMENTS
23
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24
GOVERNMENT-WIDE FINANCIAL STATEMENTS
25
EATON COUNTY, MICHIGAN
Statement of Net Position
September 30, 2015
Primary Government
Assets
Cash and cash equivalents
Investments
Receivables, net
Internal balances
Other assets
Net other postemployment benefit asset
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
Governmental
Activities
Business-type
Activities
$
$
7,143,488
1,013,690
10,033,572
341
774,209
664,275
29,425,906
10,899,525
7,997,246
(341)
112,334
22,230
15,599,406
Component
Units
Totals
$
18,043,013
1,013,690
18,030,818
886,543
686,505
45,025,312
$
16,659,712
36,219,361
826,347
1,845,702
24,416,649
127,725,595
49,055,481
34,630,400
83,685,881
207,693,366
Deferred outflows of resources
Deferred loss on refunding
Deferred pension amounts
3,206,343
34,925
418,593
34,925
3,624,936
449,126
647,542
Total deferred outflows of resources
3,206,343
453,518
3,659,861
1,096,668
Liabilities
Accounts payable and accrued expenses
Interest payable
Unearned revenue
Long-term liabilities:
Due within one year
Due in more than one year
Net pension liability
Net other postemployment benefit obligation
3,870,748
63,258
-
1,433,063
89,029
-
5,303,811
152,287
-
2,415,882
321,361
104,313
1,775,374
13,955,703
51,195,588
10,572,326
2,648,181
7,307,003
737,886
500,893
4,423,555
21,262,706
51,933,474
11,073,219
4,258,516
32,916,586
4,294,691
-
Total liabilities
81,432,997
12,716,055
94,149,052
44,311,349
16,732,394
7,556,929
24,289,323
122,686,600
41,077
2,859,826
726
377,518
90,562
(49,273,276)
14,810,934
41,077
2,859,826
726
377,518
90,562
(34,462,342)
211,756
55,430
41,524,899
(6,803,310)
$ 164,478,685
Net position
Net investment in capital assets
Restricted for:
Judicial
Public safety
Health and social services
Other state mandated
Permanent trusts
Immunizations
Local roads millage
Unrestricted (deficit)
Total net position
$ (29,171,173)
$
22,367,863
The accompanying notes are an integral part of these financial statements.
26
$
EATON COUNTY, MICHIGAN
Statement of Activities
For the Year Ended September 30, 2015
Program Revenues
Functions/Programs
Primary government
Governmental activities:
Legislative
Judicial
General government
Public safety
Public works
Health and social services
Parks, recreation and culture
Other
Unallocated depreciation
Interest on long-term debt
Charges for
Services
Expenses
$
316,454
5,980,696
9,258,188
22,894,828
380,623
7,527,043
499,126
490,726
1,853,586
608,193
$
2,243,190
1,216,989
1,141,013
353,193
108,033
-
Operating
Grants and
Contributions
Capital
Grants and
Contributions
$
$
1,498,039
605,147
4,704,295
2,488,664
-
-
Net
(Expense)
Revenues
$
(316,454)
(2,239,467)
(7,436,052)
(17,049,520)
(380,623)
(4,685,186)
(391,093)
(490,726)
(1,853,586)
(608,193)
Total governmental activities
49,809,463
5,062,418
9,296,145
-
Business-type activities:
Health and rehabilitation services
Jail commissary
Delinquent tax collections
Foreclosing government unit
17,833,051
31,628
135,578
76,284
18,292,975
69,489
965,751
175,571
9,572
-
-
459,924
37,861
839,745
99,287
Total business-type activities
18,076,541
19,503,786
9,572
-
1,436,817
Total primary government
Component units
Road Commission
Board of Public Works
Drainage Districts
District Health Department
Total component units
(35,450,900)
$
67,886,004
$
24,566,204
$
9,305,717
$
-
$
11,128,398
162,970
5,339,167
6,224,461
$
542,990
3,444
1,472,013
$
8,759,907
153,085
48
5,152,093
$
3,118,907
1,930,245
-
$
1,293,406
(9,885)
(3,405,430)
399,645
$
22,854,996
$
2,018,447
$
14,065,133
$
5,049,152
$
(1,722,264)
$ (34,014,083)
continued…
27
EATON COUNTY, MICHIGAN
Statement of Activities
For the Year Ended September 30, 2015
Primary Government
Change in net position
Net (expense) revenues
General revenues:
Property taxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Other
Transfers - internal activities
Total general revenues and transfers
Change in net position
Net position, beginning of year, as restated
Net position, end of year
Governmental
Activities
Business-type
Activities
$ (35,450,900)
$
1,436,817
Component
Units
Totals
$ (34,014,083)
$
(1,722,264)
24,413,976
433,922
24,847,898
3,790,275
4,099,211
256,426
465,600
(465,600)
4,099,211
256,426
-
6,699
14,167
-
29,235,213
(31,678)
29,203,535
3,811,141
(6,215,687)
1,405,139
(4,810,548)
2,088,877
(22,955,486)
20,962,724
(1,992,762)
162,389,808
(6,803,310)
$ 164,478,685
$ (29,171,173)
$
22,367,863
$
concluded
The accompanying notes are an integral part of these financial statements.
28
FUND FINANCIAL STATEMENTS
29
EATON COUNTY, MICHIGAN
Balance Sheet
Governmental Funds
September 30, 2015
Central
Dispatch
Fund
General
Fund
Assets
Cash and cash equivalents
Investments
Receivables:
Property taxes
Accounts, net
Due from other governments
Prepaids
Advances to component unit
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable
Accrued liabilities
Due to other governmental units
Due to other funds
$
1,013,690
$
1,881,867
-
6,968,230
350,215
593,924
90,917
60,000
Child
Care
Fund
$
802
105,508
-
-
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$
$
46,590
1,706,815
-
2,110,497
887
6,075
194,526
-
3,992,364
1,013,690
6,969,919
402,880
2,600,773
90,917
60,000
$
9,076,976
$
1,988,177
$
1,753,405
$
2,311,985
$
15,130,543
$
1,188,969
717,807
468,841
100,064
$
23,485
42,635
10,389
$
1,293,531
262,744
54,738
81,589
7,541
$
126,095
177,210
42,476
4,879
7,890
$
2,608,595
1,181,246
608,690
86,468
125,884
Total liabilities
2,475,681
76,509
1,700,143
358,550
4,610,883
Fund balances
Nonspendable
Restricted
Committed
Unassigned
150,917
6,450,378
1,911,668
-
53,262
-
1,506,480
446,955
-
150,917
3,418,148
500,217
6,450,378
Total fund balances
6,601,295
1,911,668
53,262
1,953,435
10,519,660
Total liabilities and fund balances
$
9,076,976
$
1,988,177
The accompanying notes are an integral part of these financial statements.
30
$
1,753,405
$
2,311,985
$
15,130,543
EATON COUNTY, MICHIGAN
Reconciliation
Fund Balances of Governmental Funds
to Net Position of Governmental Activities
September 30, 2015
Total fund balances for governmental funds
$ 10,519,660
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Capital assets not being depreciated
Capital assets being depreciated, net
Certain liabilities, such as bonds payable, are not due and payable in the current
period, and therefore are not reported in the funds.
Bonds and installment contracts payable
Unamortized bond premium
Interest payable
Net other postemployment benefit obligation
Compensated absences
Internal service funds are used by management to charge costs of
certain activities, such as insurance, to individual funds. The assets
and liabilities of the internal service funds are included in
governmental activities in the Statement of Net Position.
Certain pension-related amounts, such as the net pension liability and deferred amounts,
are not due and payable in the current period or do not represent current financial
resources, and therefore are not reported in the funds.
Net pension liability
Deferred outflows related to the net pension liability
Net position of governmental activities
664,275
29,425,906
(13,352,279)
(5,508)
(63,258)
(10,572,326)
(2,373,290)
4,574,892
(51,195,588)
3,206,343
$ (29,171,173)
The accompanying notes are an integral part of these financial statements.
31
EATON COUNTY, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2015
Central
Dispatch
Fund
General
Fund
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/State
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
17,902,984
218,840
$
3,092,794
-
Child
Care
Fund
$
-
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$
$
3,418,198
409,607
24,413,976
628,447
5,513,108
3,246,066
3,263,358
355,902
278,006
749,311
332,447
-
2,086,500
101,367
253,419
824,951
21,470
542,609
4,018
4,871
125,406
8,757,006
3,368,903
3,805,967
359,920
282,877
1,128,136
31,527,575
3,425,241
2,441,286
5,351,130
42,745,232
289,396
5,206,062
7,537,496
13,603,131
380,623
2,224,099
439,000
96,548
1,237,714
2,752,769
278,621
4,320,049
-
108,510
132,004
2,201,030
507,328
8,617
484,105
289,396
5,314,572
7,669,500
18,556,930
380,623
7,051,476
439,000
105,165
2,000,440
312,125
34,875
246,792
-
-
732,833
573,376
1,291,750
608,251
31,361,069
3,278,182
4,320,049
4,747,803
43,707,103
166,506
147,059
(1,878,763)
Other financing sources (uses)
Transfers in
Proceeds from sale of capital assets
Transfers out
Issuance of long-term debt
1,755,000
8,506
(968,031)
61,933
13,710
(445,300)
-
1,852,560
-
1,317,701
(2,360,040)
427,062
Total other financing sources (uses)
857,408
(431,590)
1,852,560
(615,277)
1,663,101
Net change in fund balances
1,023,914
(284,531)
(11,950)
701,230
Fund balances, beginning of year
5,577,381
Total revenues
Expenditures
Current:
Legislative
Judicial
General government
Public safety
Public works
Health and social services
Parks, recreation and culture
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Fund balances, end of year
$
6,601,295
(26,203)
2,196,199
$
1,911,668
The accompanying notes are an integral part of these financial statements.
32
603,327
79,465
$
53,262
(961,871)
4,938,971
8,506
(3,773,371)
488,995
1,965,385
$
1,953,435
9,818,430
$
10,519,660
EATON COUNTY, MICHIGAN
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
For the Year Ended September 30, 2015
Net change in fund balance - total governmental funds
$
701,230
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the costs of those assets is allocated over their
estimated useful lives as depreciation expense.
Purchase of capital assets
Depreciation expense
Proceeds from sale of capital assets
Loss on disposal of capital assets
1,667,701
(1,853,586)
(8,506)
(10,077)
Bond proceeds provide current financial resources to the governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
Statement of Net Position. Repayment of bond principal is an expenditure in
the governmental funds, but the repayment reduces long-term liabilities in the
Statement of Net Position.
Repayment of debt principal
Issuance of long-term debt
1,291,750
(488,995)
Some expenses reported in the Statement of Activities do not require the use
current financial resources and therefore are not reported as fund expenditures.
Change in accrued compensated absences
Amortization of premium on long-term debt
Change in the net pension liability and related deferred amounts
Change in the net other postemployment benefit obligation
Change in accrued interest payable
(111,007)
459
(2,506,875)
570,972
(401)
Internal service funds are used by management to charge costs of
certain activities, such as insurance, to individual funds. The net
change in net position of the internal service funds is reported with
governmental activities in the Statement of Activities.
(5,468,352)
Change in net position of governmental activities
$
The accompanying notes are an integral part of these financial statements.
33
(6,215,687)
EATON COUNTY, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/State
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
Final
Budget
17,863,914
184,000
$
17,863,914
184,000
Actual
$
17,902,984
218,840
Actual Over
(Under) Final
Budget
$
39,070
34,840
5,642,694
3,200,483
2,022,500
335,500
278,691
192,850
5,803,440
3,222,965
2,036,000
335,500
278,691
242,180
5,513,108
3,246,066
3,263,358
355,902
278,006
749,311
(290,332)
23,101
1,227,358
20,402
(685)
507,131
29,720,632
29,966,690
31,527,575
1,560,885
296,191
5,484,545
7,708,925
13,992,772
407,218
2,019,313
449,843
505,531
1,758,927
296,191
5,620,639
7,994,529
14,412,791
419,726
2,258,241
465,958
135,399
1,510,016
289,396
5,206,062
7,537,496
13,603,131
380,623
2,224,099
439,000
96,548
1,237,714
-
312,125
34,875
312,125
34,875
Total expenditures
32,623,265
33,460,490
31,361,069
Revenues over (under) expenditures
(2,902,633)
(3,493,800)
166,506
Other financing sources (uses)
Transfers in
Proceeds from sale of capital assets
Transfers out
Issuance of long-term debt
1,747,697
10,000
(1,173,439)
-
1,747,882
10,000
(1,113,935)
-
1,755,000
8,506
(968,031)
61,933
(7,118)
1,494
(145,904)
(61,933)
857,408
213,461
Total revenues
Expenditures
Current:
Legislative
Judicial
General government
Public safety
Public works
Health and social services
Parks, recreation and culture
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total other financing sources (uses)
584,258
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
$
643,947
(6,795)
(414,577)
(457,033)
(809,660)
(39,103)
(34,142)
(26,958)
(38,851)
(272,302)
(2,099,421)
3,660,306
(2,318,375)
(2,849,853)
1,023,914
3,873,767
5,577,381
5,577,381
5,577,381
-
3,259,006
$
The accompanying notes are an integral part of these financial statements.
34
2,727,528
$
6,601,295
$
3,873,767
EATON COUNTY, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Central Dispatch Special Revenue Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues
Property taxes
Intergovernmental:
Federal/State
$
Total revenues
Expenditures
Current - public safety
Capital outlay
Debt service:
Principal
Total expenditures
Final
Budget
3,130,204
$
3,130,204
Actual
$
3,092,794
Actual Over
(Under) Final
Budget
$
(37,410)
24,447
308,000
308,000
332,447
3,438,204
3,438,204
3,425,241
(12,963)
3,054,720
704,792
3,064,720
724,500
2,752,769
278,621
(311,951)
(445,879)
-
246,792
246,792
3,759,512
4,036,012
3,278,182
(757,830)
Revenues over (under) expenditures
(321,308)
(597,808)
147,059
744,867
Other financing sources (uses)
Transfers in
Transfers out
(445,300)
(445,300)
13,710
(445,300)
13,710
-
Total other financing sources (uses)
(445,300)
(445,300)
(431,590)
13,710
Net change in fund balance
(766,608)
(1,043,108)
(284,531)
758,577
Fund balance, beginning of year
Fund balance, end of year
2,196,199
$
1,429,591
2,196,199
$
The accompanying notes are an integral part of these financial statements.
35
1,153,091
2,196,199
$
1,911,668
$
758,577
EATON COUNTY, MICHIGAN
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Child Care Special Revenue Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues
Intergovernmental:
Federal/State
Local
Other
$
Final
Budget
2,717,665
65,000
205,100
$
Actual
2,717,665
65,000
205,100
$
2,086,500
101,367
253,419
Actual Over
(Under) Final
Budget
$
(631,165)
36,367
48,319
Total revenues
2,987,765
2,987,765
2,441,286
(546,479)
Expenditures
Health and social services
5,223,324
5,247,324
4,320,049
(927,275)
(2,235,559)
(2,259,559)
(1,878,763)
380,796
2,235,559
2,259,559
1,852,560
(406,999)
-
-
79,465
79,465
Revenues under expenditures
Other financing sources
Transfers in
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
$
79,465
$
The accompanying notes are an integral part of these financial statements.
36
79,465
(26,203)
(26,203)
79,465
$
53,262
$
(26,203)
EATON COUNTY, MICHIGAN
Statement of Net Position
Proprietary Funds
September 30, 2015
Governmental
Activities -
Business-type Activities - Enterprise Funds
Health and
Rehabilitation Delinquent Tax
Services Facility
Revolving
Assets
Current assets:
Cash and cash equivalents
Receivables:
Property taxes
Accounts, net
Due from other funds
Due from other governments
Inventories
Prepaid items
Total current assets
$
4,040,665
$
1,985,242
81,449
14,095
6,121,451
6,636,972
Nonmajor
Enterprise
Funds
$
Total
221,888
$
10,899,525
Internal
Service Funds
$
5,892,311
1,814
5,386
12,536,483
23,273
89,220
16,790
351,171
-
-
21,743,087
12,536,483
351,171
34,630,741
6,569,236
Deferred outflows of resources
Deferred loss on refunding
Deferred pension amounts
34,925
418,593
-
-
34,925
418,593
-
Total deferred outflows of resources
453,518
-
-
453,518
-
565,312
818,143
89,029
30,319
-
17,376
1,523
341
390
-
582,688
819,666
341
30,709
89,029
24,959
1,969,385
-
221,052
29,234
763,395
2,486,165
1,634,500
1,664,819
19,630
221,052
29,234
2,397,895
4,170,614
1,994,344
7,752
7,299,251
737,886
500,893
8,545,782
-
-
7,752
7,299,251
737,886
500,893
8,545,782
-
11,031,947
1,664,819
19,630
12,716,396
1,994,344
7,556,929
3,607,729
10,871,664
331,541
7,556,929
14,810,934
4,574,892
Noncurrent assets:
Construction in progress
Buildings
Equipment
Accumulated depreciation
Total noncurrent assets
22,230
18,788,283
2,492,729
(5,681,606)
15,621,636
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Due to other governments
Interest payable
Current portion of:
Accrued compensated absences
Lease payable
Bonds and notes payable
Total current liabilities
Noncurrent liabilities:
Long-term debt, net of current portion:
Lease payable
Bonds and notes payable
Net pension liability
Net other postemployment benefit obligation
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
$
11,164,658
The accompanying notes are an integral part of these financial statements.
37
$
10,871,664
$
331,541
5,915,584
2,076,276
5,386
98,239
14,095
19,009,105
5,759,719
126,225
683,292
6,569,236
22,230
18,788,283
2,492,729
(5,681,606)
15,621,636
$
22,367,863
-
$
4,574,892
EATON COUNTY, MICHIGAN
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2015
Governmental
Activities -
Business-type Activities - Enterprise Funds
Health and
Rehabilitation Delinquent Tax
Services Facility
Revolving
Operating revenues
Charges for services
Interest on taxes
Sales
Administrative fees/penalties
Other revenues
$
18,292,975
-
$
728,335
237,416
-
Nonmajor
Enterprise
Funds
$
Total
154,197
90,863
-
$
18,292,975
728,335
154,197
328,279
-
Internal
Service Funds
$
10,820,517
78,728
Total operating revenues
18,292,975
965,751
245,060
19,503,786
10,899,245
Operating expenses
Personal services and benefits
Operating supplies
Contractual services
Insurance and claims
Tax tribunal refunds
Other expenses
12,444,965
1,666,373
442,379
2,973,872
11,963
56,868
51,498
8,116
66,610
41,302
-
12,511,575
1,678,336
540,549
51,498
2,981,988
6,651,400
318,718
8,934,554
-
Total operating expenses
17,527,589
128,445
107,912
17,763,946
15,904,672
765,386
837,306
137,148
1,739,840
(5,005,427)
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Interest expense
Unrealized gain on investments
Property tax revenue
(305,462)
433,922
9,572
(7,133)
-
-
9,572
(312,595)
433,922
48,636
188,439
-
Total nonoperating revenues (expenses)
128,460
2,439
-
130,899
237,075
Income (loss) before transfers
893,846
839,745
137,148
1,870,739
Transfers in
150,000
916,743
-
1,066,743
-
(1,532,343)
Transfers out
-
Change in net position
Net position, beginning of year, as restated
Net position, end of year
$
(1,532,343)
(4,768,352)
(700,000)
1,043,846
224,145
137,148
1,405,139
(5,468,352)
10,120,812
10,647,519
194,393
20,962,724
10,043,244
11,164,658
The accompanying notes are an integral part of these financial statements.
38
$
10,871,664
$
331,541
$
22,367,863
$
4,574,892
EATON COUNTY, MICHIGAN
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2015
Governmental
Activities -
Business-type Activities - Enterprise Funds
Health and
Rehabilitation Delinquent Tax
Services Facility
Revolving
Cash flows from operating activities
Cash received from customers
Cash received from interfund services
Delinquent taxes purchased
Cash paid to/for employees
Cash paid to suppliers
Other receipts
$
Net cash provided by (used in) operating activities
16,750,831
(16,874,774)
1,521,458
$
1,397,515
6,760,432
(5,699,889)
(79,362)
-
Nonmajor
Enterprise
Funds
$
981,181
Total
139,472
(65,572)
(30,516)
-
$
43,384
23,650,735
(5,699,889)
(16,940,346)
(109,878)
1,521,458
Internal
Service Funds
$
2,422,080
10,878,885
(8,174,875)
(7,085,424)
(4,381,414)
Cash flows from noncapital financing activities
Transfers in
Transfers out
Tax notes issued
Tax notes redeemed
Interest paid on tax notes / advances
150,000
-
916,743
(1,532,343)
3,000,000
(3,176,500)
(7,133)
-
1,066,743
(1,532,343)
3,000,000
(3,176,500)
(7,133)
(700,000)
-
Net cash provided by (used in) noncapital
financing activities
150,000
(799,233)
-
(649,233)
(700,000)
Cash flows from capital and related
financing activities
Interest paid on long-term debt
Principal paid on long-term debt
Property tax receipts
Purchases of capital assets
Net cash used in capital and
related financing activities
(301,679)
(759,989)
433,922
(650,151)
-
-
(301,679)
(759,989)
433,922
(650,151)
-
(1,277,897)
-
-
(1,277,897)
-
Cash flows from investing activities
Sale of investments
Interest received
-
9,572
-
9,572
3,998,641
48,636
Net cash provided by investing activities
-
9,572
-
9,572
4,047,277
Net change in cash and cash equivalents
269,618
191,520
43,384
504,522
3,771,047
6,445,452
178,504
10,395,003
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
$
4,040,665
$
6,636,972
$
221,888
$
10,899,525
(1,034,137)
6,793,856
$
5,759,719
continued…
39
EATON COUNTY, MICHIGAN
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2015
Governmental
Activities -
Business-type Activities - Enterprise Funds
Health and
Rehabilitation Delinquent Tax
Services Facility
Revolving
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided by (used in)
operating activities:
Depreciation
Provision for bad debt
Change in assets and liabilities:
Taxes receivable
Accounts receivable
Due from other funds
Due from other governments
Inventories
Prepaid items
Accounts payable
Accrued liabilities
Net pension liability
Deferred outflows of resources - pension amounts
Due to other funds
Due to other governments
Net cash provided by (used in) operating activities
$
765,386
$
634,555
17,133
1,397,515
$
-
(89,698)
(7,943)
(58)
(92,935)
147,163
170,535
(146,623)
$
837,306
Nonmajor
Enterprise
Funds
981,181
$
-
109,953
(1,243)
37,580
(2,415)
$
137,148
43,384
Internal
Service Funds
1,739,840
$
634,555
17,133
(23,273)
(82,315)
(3,326)
16,484
1,038
238
(2,610)
$
Total
-
86,680
(173,256)
37,580
(11,269)
(58)
(76,451)
148,201
170,535
(146,623)
238
(5,025)
$
2,422,080
(5,005,427)
26,633
(20,359)
(189,628)
11,408
795,959
$
(4,381,414)
concluded
The accompanying notes are an integral part of these financial statements.
40
EATON COUNTY, MICHIGAN
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2015
Retiree
Healthcare
Trust
Assets
Cash and cash equivalents
Investments:
Money market funds
Common stocks
Preferred stocks
Exchange traded
Corporate bonds
U.S. agencies
Mutual funds
Due from other governments
$
Agency
Funds
-
$
144,976
2,441,454
1,223
543,241
6,186
94,886
548,488
-
Total assets
Liabilities
Undistributed receipts
Net position restricted for
Other postemployment benefits
$
The accompanying notes are an integral part of these financial statements.
41
5,729,211
60,932
3,780,454
$
5,790,143
-
$
5,790,143
3,780,454
EATON COUNTY, MICHIGAN
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2015
Retiree
Healthcare
Trust
Additions
Investment income:
Net depreciation in fair value
of investments
$
Contributions:
Employer
(218,187)
3,998,641
Change in net position
3,780,454
Net position restricted for other postemployment benefits
Beginning of year
End of year
$
The accompanying notes are an integral part of these financial statements.
42
3,780,454
EATON COUNTY, MICHIGAN
Combining Statement of Net Position
Discretely Presented Component Units
September 30, 2015
Road
Commission
Assets
Cash and cash equivalents
Receivables:
Accounts, net
Special assessments
Due from other governmental units:
Federal/State
Local
Leases receivable
Inventories
Prepaid items
Net other postemployment
benefits asset
Capital assets not being depreciated
Capital assets being depreciated, net
$
5,051,692
Board of
Public Works
$
-
Drainage
Districts
$
9,394,579
District
Health
$
2,213,441
Total
$
16,659,712
11,248
60,926
-
27,621,429
269,589
-
280,837
27,682,355
1,400,212
80,572
456,991
230,074
6,775,385
53,853
25,750
59,679
1,400,212
80,572
6,775,385
456,991
369,356
1,845,702
24,416,649
53,554,920
-
74,091,228
79,447
1,845,702
24,416,649
127,725,595
87,108,986
6,829,238
111,132,986
2,622,156
207,693,366
Deferred outflows of resources
Deferred loss on refunding
Deferred pension amounts
37,500
-
93,907
-
317,719
-
647,542
449,126
647,542
Total deferred outflows of resources
37,500
93,907
317,719
647,542
1,096,668
Total assets
Liabilities
Accounts payable
Accrued liabilities
Interest payable
Unearned revenue
Advances from primary government
Long-term debt:
Due within one year
Due in more than one year
Net pension liability
1,630,228
133,053
3,085
-
53,853
-
205,429
318,276
60,000
163,256
223,916
50,460
-
1,998,913
356,969
321,361
104,313
60,000
545,402
1,288,618
-
602,935
6,172,450
-
3,066,497
25,214,366
-
43,682
241,152
4,294,691
4,258,516
32,916,586
4,294,691
Total liabilities
3,600,386
6,829,238
28,864,568
5,017,157
44,311,349
76,479,069
55,430
7,011,601
93,907
46,128,084
36,458,053
79,447
211,756
(2,038,662)
122,686,600
211,756
55,430
41,524,899
(1,747,459)
$ 164,478,685
Net position
Net investment in capital assets
Restricted for immunizations
Restricted for local roads millage
Unrestricted (deficit)
Total net position
$
83,546,100
$
93,907
The accompanying notes are an integral part of these financial statements.
43
$
82,586,137
$
EATON COUNTY, MICHIGAN
Combining Statement of Activities
Discretely Presented Component Units
For the Year Ended September 30, 2015
Road
Commission
Expenses
Public works
Health and social services
$
Total expenses
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
Total program revenues
Board of
Public Works
-
$
162,970
-
Drainage
Districts
$
5,339,167
-
District
Health
$
Total
6,224,461
$
5,502,137
6,224,461
11,128,398
162,970
5,339,167
6,224,461
22,854,996
542,990
8,759,907
3,118,907
153,085
-
3,444
48
1,930,245
1,472,013
5,152,093
-
2,018,447
14,065,133
5,049,152
12,421,804
153,085
1,933,737
6,624,106
21,132,732
Net program revenues (expenses)
1,293,406
General revenues
Property taxes
Unrestricted investment earnings
Other
3,790,275
6,351
14,167
-
348
-
-
3,790,275
6,699
14,167
Total general revenues
3,810,793
-
348
-
3,811,141
Change in net position
5,104,199
399,645
2,088,877
Net position, beginning of year,
as restated
Net position, end of year
(9,885)
(9,885)
78,441,901
$
83,546,100
(3,405,430)
(3,405,082)
103,792
$
93,907
The accompanying notes are an integral part of these financial statements.
44
399,645
85,991,219
$
82,586,137
$
(1,722,264)
(2,147,104)
162,389,808
(1,747,459)
$ 164,478,685
NOTES TO FINANCIAL STATEMENTS
45
EATON COUNTY, MICHIGAN
Notes to Financial Statements
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Eaton County, Michigan (the “County” or “government”) have been prepared
in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
U.S. governmental accounting and financial reporting principles. The more significant of the County’s
accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the
government and its component units, entities for which the government is considered to be financially
accountable. Blended component units, although legally separate entities, are, in substance, part of the
government’s operations and so data from these units are combined with data of the primary
government. Discretely presented component units, on the other hand, are reported in a separate column
in the government-wide financial statements to emphasize that they are legally separate from the
government.
Blended Component Unit
Eaton County Department of Human Services – is governed by a three-member board, which consists of
two members appointed by the County Board of Commissioners and one State-appointed member. The
Board is responsible for establishing policies and overseeing the local administration of the Department of
Human Services and the State of Michigan Social Welfare program. State law requires local activities to
be blended with the local primary government even though the employees of the Eaton County
Department of Human Services are employees of the State of Michigan and substantially all of the
programs are financed through the State. In accordance with State law, the Department of Human
Services has been included as a special revenue fund.
Eaton County Health and Rehabilitation Services – provides skilled long-term care to residents of the
County and is not considered legally separate from the County; therefore, it has been included in the
County’s financial statements as an enterprise fund.
Eaton County Building Authority – is governed by a three-member Board appointed by the County Board
of Commissioners. Although it is legally separate from the County, the Eaton County Building Authority is
reported as if it were part of the primary government because its sole purpose is to finance and construct
the County’s public buildings.
Discretely Presented Component Units
Eaton County Road Commission – is governed by a three-member Board of Road Commissioners that is
appointed by the County Board of Commissioners. The Road Commission maintains local, state and federal
trunklines in Eaton County with financing primarily from the distribution of gas and weight taxes, federal
financial assistance, and contributions from other local governments. The County must authorize all longterm debt issuances of the Road Commission, excluding capital lease purchase agreements. Complete
financial statements for the Road Commission may be obtained by contacting the Eaton County Road
Commission at 1112 Reynolds Road, Charlotte, Michigan 48813.
46
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Eaton County Board of Public Works (BPW) – is governed by a seven-member Board that consists of six
County Board of Commissioners appointees and the Eaton County Drain Commissioner. The BPW Board
oversees the operations of the BPW, while establishing policy and administering various public works
construction projects and debt service funds under Act 185 of the Public Acts of 1957. The BPW is
financially accountable to the County because all general obligation debt issuances require County
authorization and are backed by the full faith and credit of the County. The BPW does not issue separate
financial statements.
Eaton County Drainage Districts – are governed by the Eaton County Drain Commissioner, who is
responsible for planning, developing and maintaining surface water drainage systems, while maintaining a
file for the financing, construction and maintenance of each County drain. The Drain Commissioner has
authority to spend up to $2,500 per mile on drain maintenance and borrow up to $150,000 from any
source to provide for drain maintenance without Board of Commissioners’ approval and without going
through the Michigan Municipal Finance Division. The Drain Commissioner has authority to levy special
assessments on properties benefitting from maintenance. The Drainage Districts are financially
accountable to the County because bond issuances greater than $150,000 require County authorization
and are backed by the full faith and credit of the County. Separate financial statements are not issued for
the Drainage Districts.
Joint Ventures
A joint venture is a legal entity or other organization that results from a contractual arrangement, or
interlocal agreement, which is owned, operated or governed by two or more participants. The entity is
subject to joint control with financial interest and responsibility by its participants.
Barry/Eaton County District Health Department (DHD) – is a joint venture between Barry and Eaton
counties. The DHD was established to provide public health services with a current funding formula of 65
and 35 percent from Eaton and Barry counties, respectively. Due to the treasury function resting with the
Eaton County Treasurer, the DHD is presented as a discretely presented component unit of Eaton County.
The DHD does not issue separate financial statements.
Related Organization
A related organization is a legal entity for which the government appoints a voting majority of the
governing body, but for which it is not financially accountable.
Eaton County Transportation Authority – is governed by a three-member board comprised of one Board
of Commissioner member and two at-large appointees made by the Board. The Transportation Authority is
a legally separate entity established to provide public transportation services to citizens within the
County. The County levies and collects a millage for the Transportation Authority, but it does not hold
title to the Authority’s assets, nor does it have rights or obligations to surpluses or deficits of the
Transportation Authority. Accordingly, it is not reported as a component unit of the County.
Jointly Governed Organizations
A jointly governed organization is a regional government or other multi-governmental arrangement that is
governed by representatives that create the organization, but that is not a joint venture because the
participants do not retain an ongoing financial interest or responsibility.
47
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Tri-County Community Mental Health Board – is governed by a 12 member board appointed by the
Boards of Commissioners of Ingham, Eaton and Clinton counties for which it services. Operating revenues
are derived from fees for services and from federal, state and local sources; Eaton County appropriated
$514,628 to the Tri-County Community Mental Health Board for the year ended September 30, 2015.
Tri-County Regional Planning Commission – is governed by the political jurisdictions it serves including
the cities of Lansing and East Lansing; Delta and Meridian townships; the Michigan Department of
Transportation; and the counties, road commissions and transit authorities of Ingham, Eaton and Clinton
counties. The Planning Commission adopts a proposed budget during February and submits the budget,
thereby requesting a contribution from each governmental unit. Eaton County contributed $104,958 for
the year ended September 30, 2015.
Tri-County Office on Aging – is governed by a 13 member board appointed by the Board of Commissioners
from the three counties it services – Ingham, Eaton and Clinton. The Office on Aging provides services to
older residents of the three counties and receives its operating revenues from fees for services and from
federal, state and local sources, of which Eaton County appropriated $60,426 for the year ended
September 30, 2015.
CEI-Community Mental Health – is governed by 12 members from three counties, of which Eaton County
appoints two members. The County’s financial responsibility is to pass through to the Commission a
portion of the convention and tourism revenues it receives and, if needed, such additional funds based on
the ratio of board membership. The County contributed $505,573 for the year ended September 30, 2015.
Lansing Tri-County Employment and Training Consortium – is governed by a 11 member board, of which
the County appoints two members. The County has no financial responsibility other than potential liability
from appropriated use of funds as the Consortium’s revenue is derived from federal and state grants.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support. Likewise, the primary government is reported separately from certain
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
48
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met. Agency funds, a type of fiduciary fund, are unlike
all other types of funds, reporting only assets and liabilities. Therefore, agency funds cannot be said to
have a measurement focus. They do, however, use the accrual basis of accounting to recognize
receivables and payables.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
County considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period or within one year for reimbursement-based grants. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, state shared revenues, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government.
The County reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all the financial
resources of the general government, except those accounted for and reported in another fund.
The central dispatch fund accounts for the operations of the county-wide 911 dispatch center and the
millage approved by county voters for the operation of the facility.
The child care fund accounts for the operations of the County's community-based programming and
placement costs for youth and funding received from the State of Michigan for these services.
The County reports the following major proprietary funds:
The health and services rehabilitations services facility fund accounts for the operation of the
County’s long-term adult care facility.
The delinquent tax revolving fund accounts for the annual purchase of delinquent real property taxes
from each of the local taxing units within the county, and the ultimate collection from the property
owners of the delinquent taxes with penalty and interest.
49
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Additionally, the County reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources
that are restricted or committed to expenditure for specified purposes other than debt service or
capital projects.
Debt service funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest.
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
Permanent funds are used to account for resources that are restricted to the extent that only
earnings, and not principal, may be used for purposes that support the County’s programs.
Enterprise funds account for those operations that are financed and operated in a manner similar to
private business or where the County has decided that the determination of revenues earned, costs
incurred and/or net income is necessary for management accountability.
Internal service funds account for the insurance activity of the County provided to other departments
and funds on a cost reimbursement basis.
Retiree healthcare trust fund accounts for the accumulated resources for retirement health benefit
payments to qualified employees.
Agency funds are custodial in nature and do not present results of operations or have a measurement
focus. Agency funds are accounted for using the modified accrual basis of accounting. These funds are
used to account for assets that the government holds for others in an agency capacity.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of
the government. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds and of the County’s internal service fund are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
50
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Assets, Liabilities, Deferred Outflows of Resources and Equity
Deposits and Investments
The County pools cash resources of various funds in order to facilitate the management of cash; however,
cash applicable to a particular fund is readily identifiable. Sufficient cash is retained in the pooled cash
accounts to meet current operating requirements and excess cash is invested in various interest bearing
securities and disclosed as part of the County’s investments. Cash equivalents consist of temporary
investments in certificates of deposit, with maturities from date of purchase of 90 days or less,
investment trust funds, and mutual funds. The investment trust funds have the general characteristics of
demand deposit accounts.
Investments are stated at fair value and consist of money market funds, municipal bonds, U.S. securities,
and mutual funds with original maturities of greater than 90 days.
State statutes authorize the County to deposit in the accounts of federally insured banks, credit unions
and savings and loan associations and to invest in obligations of the U.S. Treasury, certain commercial
paper, repurchase agreements, bankers acceptances, and mutual funds composed of otherwise legal
investments.
Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the year are referred to as either “due to/from other funds” (i.e., the current portion of
interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). Any
residual balances outstanding between governmental activities and business-type activities are reported
in the government-wide financial statements as “internal balances”.
Advances between funds are offset by nonspendable fund balance in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources.
Receivables consist of accounts receivable related to charges for services and amounts due from
governmental units for various financial assistance programs and State shared revenues. The County has
established allowances for doubtful accounts to estimate uncollectible accounts receivable in the general,
child care, health and rehabilitation services facility funds and district health department component
unit. The County utilizes the direct write-off method for all other funds as past experience indicates the
write-off of accounts receivable for these funds are immaterial and do not warrant the use of allowance
accounts.
Inventories
The cost of inventory items in the primary government for all funds is recorded as an expenditure at the
time of purchase. Inventories of the health and rehabilitation services facility and jail commissary funds
consist of medical supplies and miscellaneous hygiene and consumer products, respectively, which are
stated at the lower of first-in, first-out (FIFO) or market.
The cost of inventory items in the Road Commission is recorded as an expenditure when they are used
(i.e., consumption method). Inventories of the Road Commission consist of road materials and equipment
parts, which are stated at the lower of average cost or market.
51
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Prepaids
Certain payments to vendors (particularly for insurance coverage) reflect costs that are applicable to a
future period and are recorded as prepaid items.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges,
drains and similar items), are reported in the applicable governmental or business-type activities columns
in the government-wide financial statements. Capital assets are defined by the government as assets with
initial, individual costs of $5,000 or more ($200,000 for infrastructure) and an estimated useful life in
excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased
or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities, if any, is included as
part of the capitalized value of the assets constructed. No such interest expense was incurred during the
current fiscal year.
Capital assets of the primary government and Drainage Districts component unit are depreciated using the
straight-line method over the following estimated useful lives:
Years
Building and improvements
Equipment
Vehicles
Infrastructure - drains
5-40
3-10
2-5
40
Capital assets of the Road Commission component unit are depreciated as follows:
Years
Buildings
Equipment
Roads
Bridges
Other infrastructure
40
5-8
5-30
15-50
8-20
52
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to one or more future periods and so will
not be recognized as an outflow of resources (expense/ expenditure) until then. The County reports
deferred outflows of resources for the loss on advance bond refunding reported in the government-wide
statement of net position, which results from the difference in the carrying value of refunded debt and its
reacquisition price. In addition, the County reports deferred outflows of resources for changes in
expected and actual investment returns, assumptions, and benefits provided in its pension plan. More
detailed information can be found in Note 14.
Compensated Absences
Eligible employees are permitted to accumulate earned but unused vacation benefits in varying amounts
based on length of service and certain other established criteria. Amounts not expected to be liquidated
with expendable available financial resources are accrued when incurred in the government-wide and
proprietary fund financial statements. A liability is reported in governmental funds only if these amounts
have matured, for example, as a result of employee resignations or retirements.
Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net position. Bond
premiums and discounts are deferred and amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Pensions
For purposes 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
Plan and additions to/deductions from the plan fiduciary net position have been determined on the same
basis as they are reported by the plan. 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.
53
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance is reported when externally imposed constraints are placed on the use of
resources by grantors, contributors, or laws or regulations of other governments. Committed fund balance
is reported for amounts that can only be used for specific purposes pursuant to constraints imposed by
formal action of the government’s highest level of decision-making authority, the County Commissioners.
A formal resolution of the County Commissioners is required to establish, modify, or rescind a fund
balance commitment.
The County Commissioners can also give authority to management to assign fund balance but has not yet
done so; assigned fund balances are neither restricted nor committed. Unassigned fund balance is the
residual classification for the general fund.
When the government incurs expenditures for purposes for which various fund balances classifications can
be used, it is the government’s policy to use restricted fund balance first, then committed, assigned and
finally unassigned fund balance.
2.
BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the
general and special revenue funds. All annual appropriations lapse at year-end. The legal level of
budgetary control is at the activity level for the general fund and the functional level for the special
revenue funds; for control purposes, all budgets are maintained at the activity and account level.
Budgetary transfers between funds, amendments to total fund, department or activity budgets, or
increases to salary or capital outlay accounts in excess of $2,500 require Board approval. The Board made
several supplemental budgetary appropriations throughout the year that were not considered material.
Prior to May 1 of each year, the County departments working in conjunction with the Controller’s Office
prepare and submit their proposed budgets, including expenditures and estimated revenues, for the fiscal
year commencing the following October 1. Following a public hearing to obtain taxpayer comments, the
budgets are legally enacted prior to September 30 through passage of a budget resolution.
3.
EXCESS OF EXPENDITURES OVER APPROPRIATIONS
State statutes provide that a local unit shall not incur expenditures in excess of the amount appropriated.
During the year ended September 30, 2015, the County incurred a expenditures in excess of the amounts
appropriated as follows:
General fund:
Capital outlay - general
Capital outlay - computer
Concealed pistol licenses
Transfers out
Jail millage II:
Capital outlay
54
Total
Appropriations
Amount of
Expenditures
$
$
325,070
567,934
344,394
635,072
Budget
Variance
$
19,324
67,138
-
13,710
13,710
-
427,062
427,062
EATON COUNTY, MICHIGAN
Notes to Financial Statements
4.
DEPOSITS AND INVESTMENTS
Summary of Deposit and Investment Balances
Following is a reconciliation of deposit and investment balances as of September 30, 2015:
Financial statements
Statement of net position:
Cash and cash equivalents
Investments
Statement of fiduciary net position:
Cash and cash equivalents
Investments
Total
Deposits and investments
Bank deposits (checking and savings accounts)
Investments in securities, mutual funds and
similar vehicles:
Treasurer’s pool
Retiree healthcare trust fund
Cash on deposit with third party
Cash on hand
Total
Primary
Government
Component
Units
Totals
$ 18,043,013
1,013,690
$ 16,659,712
-
$ 34,702,725
1,013,690
5,729,211
3,780,454
-
5,729,211
3,780,454
$ 28,566,368
$ 16,659,712
$ 45,226,080
$ 27,079,999
12,897,491
3,780,454
1,461,196
6,940
$ 45,226,080
County's Cash and Investment Pool
Custodial Credit Risk - Deposits. For deposits, custodial credit risk is the risk that, in the event of a bank
failure, the County’s deposits may not be returned to the government. As of September 30, 2015,
$26,764,626 of the County’s total bank balance of $27,541,698 (total book balance was $27,079,999) was
exposed to custodial credit risk as it was uninsured and uncollateralized.
The County’s investment policy requires that only those banks or savings and loan institutions that are
members of the FDIC or FSLIC will be considered for depository purposes, but recognizes that it is
impractical to insure all bank deposits due to the limitations of depository insurance. As a result, the
County evaluates each financial institution with which it deposits funds and assesses the level of risk of
each institution; only those institutions with an acceptable estimated risk level are used as depositories.
55
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Custodial Credit Risk - Investments. Following is a summary of the County's pooled investments as of
September 30, 2015:
Investments at fair value, as determined
by quoted market price:
Money market accounts
Municipal bonds
U.S. agencies
$ 11,888,497
505,402
503,592
Total
$ 12,897,491
For investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
County will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The County’s investment policy requires that investment securities shall
be kept in the County Treasurer’s office in a fireproof vault, although certificates of deposit may be held
in safekeeping by the financial institution. As of September 30, 2015, investments in the Treasurer’s pool
totaling $11,888,497 were in money market accounts, which are not subject to custodial credit risk since
the securities are held in the County’s name by the counterparty.
Credit Risk. The County’s investments in money market accounts are not rated and comply with the
County’s policy regarding the types of investments it may hold. As of September 30, 2015, the County's
pooled investments in municipal bonds and U.S. agencies were rated as follows:
S & P AAS & P AA+
$
505,402
503,592
Total
$
1,008,994
Interest Rate Risk. As of September 30, 2015, maturities of the fund’s fixed income securities were as
follows:
Investment Maturities (Fair value by years)
Fair
Value
Due in less
than 1 year
Due in 1-5
years
Due in 6-10
years
Due in more
than 11 years
Municipal bonds
U.S. agencies
$
505,402
503,592
$
-
$
505,402
503,592
$
-
$
-
Total
$
1,008,994
$
-
$
1,008,994
$
-
$
-
Retirees Healthcare Trust Fund Investments
The retiree healthcare trust fund investments are maintained separately from the County’s cash and
investment pool, and are subject to separate investment policies and state statutes. Accordingly, the
required disclosures for the fund’s investments are presented separately.
56
EATON COUNTY, MICHIGAN
Notes to Financial Statements
The Public Employee Retirement System Investment Act, Public Act 314 of 1965, as amended, authorizes
the fund to invest in stocks, government and corporate securities, mortgages, real estate, and various
other investment instruments, subject to certain limitations. The County Treasurer has the responsibility
and authority to oversee the investment portfolio. A professional investment manager is contracted to
assist in managing the fund’s assets.
The fund’s investments are held in an administered trust account. Following is a summary of the fund’s
investments as of September 30, 2015:
Investments at fair value, as determined
by quoted market price:
Money market funds
Common stocks
Preferred stocks
Exchange traded
Corporate bonds
U.S. agencies
Mutual funds
Total
$
144,976
2,441,454
1,223
543,241
6,186
94,886
548,488
$
3,780,454
Credit Risk. As of September 30, 2015, the fund’s investments in corporate bonds and U.S. agencies were
rated as follows:
Moody AAA
S&P BBB+
S&P A+
Not Rated
Total
$
58,910
4,114
2,072
35,976
$
101,072
The County’s policy is to comply with Public Act 314 as referenced above; such statute does not provide
specific guidelines regarding credit risk.
Custodial Credit Risk. The County does not have a policy regarding custodial credit risk for the fund’s
investments. However, while uninsured and unregistered, the fund’s investments are not exposed to
custodial credit risk since the securities are held by the counterparty’s trust department in the County’s
name.
Concentration of Credit Risk. At September 30, 2015, the fund investment portfolio holdings were not
concentrated (i.e., no more than 5% of the portfolio in issues of any one entity other than the federal
government). The County’s policy is to comply with Public Act 314 as referenced above.
57
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Interest Rate Risk. As of September 30, 2015, maturities of the fund’s fixed income securities were as
follows:
Investment Maturities (Fair value by years)
Fair
Value
Due in less
than 1 year
Due in 1-5
years
Due in 6-10
years
Due in more
than 11 years
Corporate bonds
U.S. agencies
$
6,186
94,886
$
-
$
4,114
13,605
$
2,072
21,577
$
59,704
Total
$
101,072
$
-
$
17,719
$
23,649
$
59,704
5.
RECEIVABLES
Receivables as of September 30, 2015 are summarized as follows:
Governmental
Activities
Property taxes
$
Accounts receivable
Special assessments
Leases receivable
Due from other governments
Advances to component unit
Less allowance for doubtful accounts
7,437,305
402,880
2,600,773
60,000
(467,386)
$ 10,033,572
Business-type
Activities
Component
Units
$
5,915,584
2,076,276
5,386
-
$
295,718
27,682,355
6,775,385
1,480,784
(14,881)
$
7,997,246
$ 36,219,361
Amount Not
Expected To
Be Collected
Within One
Year
$
24,712,099
6,172,450
60,000
-
$ 30,944,549
Leases receivable in the Public Works component unit represents amounts receivable from other local
governments for the water and sewer systems constructed for those governments using bonds issued by
the County. The receivable is equal to the outstanding bond principal plus accrued interest as of
September 30, 2015. The current portion of the receivable is equal to the current portion of the related
debt plus accrued interest.
58
EATON COUNTY, MICHIGAN
Notes to Financial Statements
6.
INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund receivables and payables at September 30, 2015 is as follows:
Due from (to) other funds
General fund
Central dispatch fund
Child care fund
Nonmajor governmental funds
Nonmajor enterprise funds
Internal service funds
Due from
Other Funds
Due to
Other Funds
$
126,225
$
100,064
10,389
7,541
7,890
341
-
$
126,225
$
126,225
The due from (to) other funds resulted from the time lag between the dates that (1) interfund goods and
services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting
system, and (3) payments between funds are made. Certain amounts reported as internal balances
between the governmental and business-type activities in the statement of net position relate to the
elimination of the internal service funds.
For the year ended September 30, 2015, interfund transfers consisted of the following:
Transfers In
General fund
Central dispatch fund
Child care fund
Nonmajor governmental funds
Health and rehabilitation
services fund
Delinquent tax revolving fund
Internal service funds
$
1,755,000
13,710
1,852,560
1,317,701
Transfers Out
$
150,000
916,743
$
6,005,714
968,031
445,300
2,360,040
1,532,343
700,000
$
6,005,714
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them; (2) move receipts restricted to or allowed for debt service from the
funds collecting the receipts to the debt service fund as debt service payments become due; and (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.
59
EATON COUNTY, MICHIGAN
Notes to Financial Statements
7.
CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2015 was as follows:
Beginning
Balance
Additions
Disposals
Ending
Balance
Transfers
Governmental activities
Capital assets not being depreciated:
Land
$
Construction in progress
102,628
$
-
$
-
$
-
$
102,628
3,317,344
664,372
-
(3,420,069)
561,647
3,419,972
664,372
-
(3,420,069)
664,275
Total capital assets not being
depreciated
Capital assets being depreciated:
Buildings and improvements
44,081,126
158,028
-
44,239,154
Vehicles and equipment
15,228,295
845,301
(105,024)
-
3,420,069
19,388,641
59,309,421
1,003,329
(105,024)
3,420,069
63,627,795
Buildings and improvements
(19,570,599)
(1,212,895)
-
-
(20,783,494)
Vehicles and equipment
(12,864,145)
(640,691)
86,441
-
(13,418,395)
(32,434,744)
(1,853,586)
86,441
-
(34,201,889)
Total capital assets being
depreciated
Less accumulated depreciation for:
Total accumulated depreciation
Total capital assets
being depreciated, net
26,874,677
(850,257)
(18,583)
3,420,069
29,425,906
Governmental activities
capital assets, net
$
30,294,649
$
(185,885)
$
(18,583)
$
2,307,296
$
502,880
$
(119,386)
$
-
$
30,090,181
$
22,230
Business-type activities
Capital assets not being depreciated:
Construction in progress
$
(2,668,560)
Capital assets being depreciated:
Buildings and improvements
16,318,417
50,636
-
2,419,230
18,788,283
2,146,767
96,635
-
249,330
2,492,732
18,465,184
147,271
-
2,668,560
21,281,015
Buildings and improvements
(3,654,435)
(566,584)
-
-
(4,221,019)
Vehicles and equipment
(1,392,619)
(67,971)
-
-
(1,460,590)
(5,047,054)
(634,555)
-
-
(5,681,609)
13,418,130
(487,284)
-
2,668,560
Vehicles and equipment
Total capital assets being
depreciated
Less accumulated depreciation for:
Total accumulated depreciation
Total capital assets
being depreciated, net
15,599,406
Business-type activities
capital assets, net
$
15,725,426
$
15,596
60
$
(119,386)
$
-
$
15,621,636
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Depreciation expense in governmental activities is not allocated by function. Depreciation expense in
business-type activities is allocated entirely to the health and rehabilitation services facility.
Beginning
Balance
Additions
Disposals
Ending
Balance
Transfers
Component unit - Road Commission
Capital assets not being depreciated:
Land
$
Land improvements
Right of ways
243,002
$
-
$
-
$
-
$
243,002
788,636
-
-
-
788,636
23,384,028
983
-
-
23,385,011
24,415,666
983
-
-
24,416,649
6,488,737
41,268
-
-
6,530,005
Total capital assets not being
depreciated
Capital assets being depreciated:
Buildings and improvements
Equipment
Infrastructure
Depletable assets
7,166,268
602,362
(233,353)
-
7,535,277
94,406,724
8,570,534
(3,158,382)
-
99,818,876
50,559
-
-
50,559
108,112,288
9,214,164
-
113,934,717
-
Total capital assets being
depreciated
(3,391,735)
Less accumulated depreciation for:
Buildings and improvements
(2,009,029)
(130,142)
-
-
(2,139,171)
Equipment
(6,501,279)
(266,838)
229,205
-
(6,538,912)
(50,275,982)
(4,533,555)
3,158,382
-
(51,651,155)
-
-
(50,559)
3,387,587
-
(60,379,797)
-
53,554,920
Infrastructure
Depletable assets
(50,559)
Total accumulated depreciation
-
(58,836,849)
(4,930,535)
49,275,439
4,283,629
Total capital assets
being depreciated, net
Capital assets, net
$
73,691,105
$
4,284,612
61
(4,148)
$
(4,148)
$
-
$
77,971,569
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Beginning
Balance
Additions
Disposals
Ending
Balance
Transfers
Component unit - Drainage District
Capital assets not being depreciated:
Construction in progress
$
-
$
39,080
$
-
$
(39,080)
$
-
Capital assets being depreciated:
Infrastructure
104,432,603
-
-
39,080
104,471,683
Less accumulated depreciation for:
Infrastructure
(27,268,449)
(3,112,006)
-
-
77,164,154
(3,112,006)
-
39,080
(30,380,455)
Total capital assets
being depreciated, net
Capital assets, net
$
77,164,154
$
$
230,241
$
(3,072,926)
74,091,228
$
-
$
-
$
74,091,228
$
-
$
-
$
309,446
Component Unit - District Health
Capital assets being depreciated:
Equipment
79,205
Less accumulated depreciation for:
Equipment
Capital assets, net
8.
(202,959)
$
27,282
(27,040)
$
52,165
$
-
$
-
(229,999)
$
79,447
PAYABLES
Accounts payable and accrued liabilities as of September 30, 2015 are summarized as follows:
Accounts payable
Accrued liabilities
Due to other governments
Advances from primary government
62
Governmental
Activities
Business-type
Activities
Components
Units
$
1,206,205
2,578,075
86,468
-
$
582,688
819,666
30,709
-
$
1,998,913
356,969
60,000
$
3,870,748
$
1,433,063
$
2,415,882
EATON COUNTY, MICHIGAN
Notes to Financial Statements
9.
LONG-TERM DEBT
General obligation bonds. General obligation bonds are direct obligations and pledge the full faith and
credit of the County. These bonds are typically issued as 10-20 year serial bonds with varying amounts of
principal maturing each year. General obligation bonds currently outstanding are as follows:
Purpose
Interest Rates
Maturity Date
Amount of
Original Issue
Amount
Outstanding
4.25%-5.00%
4.00%-4.50%
2028
2028
$ 15,000,000
900,000
$ 10,695,000
715,000
Governmental activities
2007 Jail Expansion
2008 Dental Clinic
$ 11,410,000
Business-type activities
2008 Health and Rehabilitation Services
2011 Health and Rehabilitation Services
4.55%
2.00%-3.00%
Component Unit - Road Commission
2013 Transportation Refunding
Component Unit - Public Works
Grand Ledge Water/Sewer
Grand Ledge Water/Sewer Refunding
Brookfield Water
2027
2027
$
5,700,000
5,545,000
$
4,250,000
3,812,646
$
8,062,646
1.210%
2018
$
2,595,000
$
1,530,000
4.00%-5.00%
2.00%-2.375%
1.625%
2025
2025
2026
$
7,975,000
4,960,000
2,860,000
$
120,000
4,890,000
1,690,000
$
6,700,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year
Ending
September
30,
2016
2017
2018
2019
2020
2021-2025
2026-2028
Governmental Activities
Principal
Business-type Activities
Interest
Principal
Component Units
Interest
Principal
Interest
$
740,000
770,000
805,000
840,000
880,000
4,990,000
2,385,000
$
535,288
504,238
471,864
437,038
399,574
1,339,562
183,602
$
763,395
798,395
823,395
858,395
888,395
3,060,671
870,000
$
294,850
270,565
245,098
218,800
191,218
514,785
59,605
$
1,110,000
1,120,000
1,135,000
635,000
645,000
3,420,000
165,000
$
153,116
131,909
114,041
95,914
83,776
226,378
2,114
$
11,410,000
$
3,871,166
$
8,062,646
$
1,794,921
$
8,230,000
$
807,248
By statute, the government’s legal debt limit is restricted to 10% of the equalized value of property in the
County. At September 30, 2015, the County’s legal debt limit was $386,904,032.
63
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Installment obligations. The government has entered into long-term installment payment agreements for
the upgrade of its communication systems, information technology infrastructure, jail security system
and vehicles. Installment obligations currently outstanding are as follows:
Purpose
Interest Rates
Maturity Date
Governmental activities
2014 Communications System
2014 Information Technology Infrastructure
2015 Jail Security System
2015 Vehicles
0%
2.65%
3.32%
4.50%
07/01/2017
07/25/2018
01/01/2022
10/01/2018
Amount of
Original Issue
$
740,375
2,160,310
427,062
61,933
Amount
Outstanding
$
493,583
987,534
399,229
61,933
$
1,942,279
Annual debt service requirements to maturity for installment obligations are as follows:
Year Ending
Governmental Activities
September 30,
2016
2017
2018
2019
2020
2021-2022
Principal
Interest
$
640,704
650,284
415,025
79,887
65,904
90,475
$
40,673
31,091
19,559
7,697
4,798
3,016
$
1,942,279
$
106,834
The governmental activities original purchase costs of the assets was $3,532,795 with accumulated
depreciation of $11,142 at September 30, 2015.
The Eaton County Health and Rehabilitation Services Facility entered into installment agreements during
fiscal years 2009 and 2013 for certain equipment. The original amount of the obligations were $175,000
and $81,938, respectively. Installment obligations outstanding at year-end amounted to $36,986 with
interest ranging from 7.5 to 9.5 percent.
Annual debt service requirements to maturity for these installment obligations are as follows:
Year Ending
Business-type Activities
September 30,
2016
2017
Principal
Interest
$
29,234
7,752
$
2,263
123
$
36,986
$
2,386
64
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Drain bonds and notes. The Drain Commissioner is authorized under state statutes to issue special
assessment bonds and drain notes for the construction or maintenance of drainage districts. Such bonds
and notes are repaid from special assessments levied upon the benefiting property owners. At
September 30, 2015, drain bonds and notes totaling $27,720,642 were outstanding. Drain bonds and notes
carry interest at rates ranging from 1.96 percent to 8.0 percent.
Annual debt service requirements to maturity for drain bonds and notes are as follows:
Year Ending
Drainage Districts
September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2035
Principal
Interest
$
3,008,543
2,863,540
2,680,292
2,618,267
2,520,000
11,585,000
2,235,000
210,000
$
948,395
867,730
774,282
685,022
597,024
1,735,194
302,770
9,450
$
27,720,642
$
5,919,867
Delinquent tax notes. The government issues general obligation limited tax notes to finance the purchase
of delinquent real property taxes receivable from each taxing district in the County. These notes are
reported in the proprietary funds (i.e., delinquent tax revolving enterprise fund) as they are expected to
be repaid from proprietary fund revenues. Each series of delinquent tax notes are subject to variable
interest rates which are determined on a weekly basis by the County’s remarketing agent using
established criteria and legal limitations. Principal and interest payments are predicated upon actual
collections of delinquent property taxes, which are subject to collection over a period not to exceed two
years. Delinquent tax notes totaling $1,634,500 from the 2015 Series were outstanding at September 30,
2015, which is expected to be paid in the year ending September 30, 2016. The delinquent tax note
carries an interest rate of 0.46 percent.
65
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Changes in long-term debt. Long-term debt activity for the year ended September 30, 2015 was as
follows:
Beginning
Balance
Primary Government
Governmental activities
General obligation bonds $
Deferred amounts for:
Issuance premiums
Installment contracts
Compensated absences
12,115,000
Additions
$
5,967
2,040,034
2,262,283
Ending
Balance
Deductions
-
$
488,995
2,108,458
(705,000)
$ 11,410,000
(459)
(586,750)
(1,997,451)
5,508
1,942,279
2,373,290
$
16,423,284
$
2,597,453
$
(3,289,660) $
Business-type activities
General obligation bonds $
Lease payable
Delinquent tax notes
Compensated absences
8,796,040
63,581
1,811,000
208,739
$
3,000,000
213,957
$
(733,394)
(26,595)
(3,176,500)
(201,644)
$
10,879,360
$
3,213,957
$
$
2,055,000
322,632
$
182,854
$
(525,000)
(201,466)
$
2,377,632
$
182,854
7,590,000
$
-
Component Units:
Road Commission
Transportation bonds
Compensated absences
Board of Public Works
General obligation bonds $
Deferred amounts for:
Issuance premiums
Drainage Districts
Drain bonds and notes
Deferred amounts for:
Issuance premiums
District Health
Compensated absences
83,321
7,673,321
$
-
$
34,348,185
$
14,415,000
618,175
499,232
$
34,847,417
$
15,033,175
$
281,443
$
288,479
$
740,000
459
640,704
394,211
15,731,077
$
1,775,374
$
8,062,646
36,986
1,634,500
221,052
$
763,395
29,234
1,634,500
221,052
(4,138,133) $
9,955,184
$
2,648,181
$
1,530,000
304,020
$
515,000
30,402
$
(726,466) $
1,834,020
$
545,402
$
(890,000)
6,700,000
$
595,000
-
$
Due Within
One Year
$
(7,936)
$
75,385
(897,936) $
7,935
6,775,385
$
602,935
$ (21,042,543)
$ 27,720,642
$
3,008,543
(557,186)
560,221
$ (21,599,729) $
$
(285,088)
$
57,954
28,280,863
$
3,066,497
284,834
$
43,682
For the governmental activities, compensated absences are generally liquidated by the general fund.
66
EATON COUNTY, MICHIGAN
Notes to Financial Statements
The County issued $2,595,000 of Michigan Transportation Fund Refunding Bonds, Series 2013 on March 8,
2013 pursuant to the provisions of Act 51, Public Acts of Michigan of 1951, as amended for the purpose of
refunding bonds proceeds that were used for the constructing, improving, maintaining and repairing
certain Road Commission buildings. While the bonds are a general obligation of the County, the Road
Commission is responsible for servicing the debt. Bond payments are made directly from the Road
Commission’s portion of the County’s pooled cash. Accordingly, the related long-term debt is only
recorded by the Road Commission, and is not included in the financial statements of the primary
government.
Refunded Debt
During fiscal year 2015, the County issued $14,415,000 of refunding bonds to advance refund $17,720,000
of the Carrier Creek drain bonds to provide resources to purchase U.S. government securities that were
placed in an irrevocable trust to generate resources for all future debt service payments. As a result, the
refunded bonds are considered to be defeased and the liability has been removed from the statement of
net position. The refunding resulted in a savings of $2,315,036 and an economic gain of $1,702,933.
10. RISK MANAGEMENT / SELF-INSURANCE PROGRAMS
The government manages its risk exposures and provides certain employee benefits through a
combination of self-insurance programs, risk management pools and commercial insurance and excess
coverage policies. All funds and component units of the County participate in these programs except for
the Road Commission (see below) and Health and Rehabilitation Services Facility (which carries
commercial insurance for workers’ compensation, general and automobile liability, motor vehicle physical
damage and property damage). For risks that are commercially insured, settlements have not exceeded
insurance coverage in any of the past three years. Following is a summary of the self-insurance programs
and risk management pool participation.
Workers’ compensation. The County maintains a self-insurance program for workers’ compensation
coverage, which is accounted for in the workers’ compensation internal service fund. The program is
administered by a third-party administrator who provides claims review and processing services.
Premiums are paid into the internal service fund by all other funds based on payrolls and job
classifications and are available to pay claims, claim reserves, excess coverage and administrative costs.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $275,000
subject to an annual aggregate limit of $5 million. Liabilities include an amount for claims that have been
incurred but not reported (IBNR). Claim liabilities are calculated considering the effects of inflation,
recent claim settlement trends including frequency and amount of pay outs and other economic and
social factors.
67
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Changes in the balances of estimated liabilities during the past two years are as follows:
2015
Workers compensation
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
76,642
2014
$
37,425
(25,704)
Estimated liability, September 30
$
88,363
69,684
17,413
(10,455)
$
76,642
Health insurance. The County maintains a self-insurance program for employee health insurance with
Blue Cross Blue Shield (BCBS), which is accounted for in the Health Insurance internal service fund. The
program is administered by BCBS. Premiums are paid into the internal service fund by all other funds
based on a fixed rate established each year; monies are then advanced to BCBS by the internal service
fund to pay claims and administrative costs.
Changes in the balances of estimated liabilities during the past two years are as follows:
2015
Health insurance
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
844,732
2014
$
3,968,647
(3,892,816)
Estimated liability, September 30
$
920,563
837,077
3,589,897
(3,474,191)
$
844,732
Liability insurance. The County participates in the Michigan Municipal Risk Management Authority
(MMRMA) for general and automobile liability, motor vehicle physical damage and property damage
coverages. The MMRMA provides risk management, underwriting, reinsurance and claim review and
processing services for all member governments pursuant to its charter. Under most circumstances, the
County’s maximum loss retention per occurrence is $75,000 for general and automobile liability, $15,000
for motor vehicle physical damage, and $10,000 for property coverage.
The County makes annual contributions to MMRMA based on actuarial studies using historical data and
insurance industry statistics. These contributions are paid from an internal service fund (i.e., the liability
insurance fund) using premiums paid into it by other funds of the County. Such contributions as received
by MMRMA are allocated between its general and member retention funds. Economic resources in
MMRMA’s general fund are expended for reinsurance coverage, claim payments and certain general and
administrative costs, whereas resources in the member retention fund are used for loss payments and
defense costs up to the members’ self-insured retention limits along with certain other member specific
costs. Accordingly, the County records an asset for its portion of the unexpended member retention fund.
At September 30, 2015, the balance of the County’s member retention fund was $1,446,796.
68
EATON COUNTY, MICHIGAN
Notes to Financial Statements
2015
General liability
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
2014
249,086
$
695,247
(191,303)
Estimated liability, September 30
$
753,030
112,544
163,677
(27,135)
$
249,086
Unemployment. The County is self-insured for unemployment benefits, as accounted for in the
unemployment internal service fund. The reserve for unemployment benefits is determined by
management based on prior experience. Benefits are expensed when paid, as follows:
2015
Unemployment compensation
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
2014
-
$
22,201
(22,201)
Estimated liability, September 30
$
-
47,565
(47,565)
$
-
Life and disability insurance. The County maintains a self-insurance program for life and disability
coverage. The program is accounted for in the life and disability internal service fund and administered
by a third-party administrator who provides claims review and processing services. Premiums for the selfinsured program are paid into the internal service fund by all other funds based on actual or illustrated
rates. These premiums are available to pay claims and administrative costs.
Changes in the balances of estimated liabilities during the past two years are as follows:
2015
Life and disability
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
2,948
2014
$
115,790
(116,448)
Estimated liability, September 30
$
2,290
1,929
93,725
(92,706)
$
2,948
Dental insurance. The County has a self-insured program for dental coverage. The plan is accounted for
in the dental insurance internal service fund. The program is administered by a third-party administrator
who provides claims review and processing services. Premiums for the self-insured program are paid into
the internal service fund by all other funds based on actual or illustrated rates. These premiums are
available to pay claims and administrative costs.
69
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Changes in the balances of claims liabilities during the past two years are as follows:
2015
Dental
Estimated liability, October 1
Estimated claims incurred, including
changes in estimates
Claim payments
$
12,552
2014
$
223,011
(223,388)
Estimated liability, September 30
$
12,175
12,589
196,157
(196,194)
$
12,552
Road Commission. The Road Commission is exposed to various risks of loss related to property loss, torts,
errors and omissions, employee injuries (workers’ compensation), as well as medical benefits provided to
employees. The Road Commission has purchased commercial insurance for medical benefit claims and
participates in the Michigan County Road Commission self-insurance pool for workers’ compensation and
property liability. Settled claims relating to the commercial insurance have not exceeded the amount of
insurance coverage in any of the past three fiscal years.
The Michigan County Road Commission self-insurance pool program operates as a common risk-sharing
management program for local units’ government in Michigan; member premiums are used to purchase
commercial excess insurance coverage and to pay member claims in excess of deductible amounts.
11. CONTINGENT LIABILITIES
Amounts received or receivable from grantor agencies are subject to audit and potential adjustment by
grantor agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which
may be disallowed by the grantor cannot be determined at this time although the County expects such
amounts, if any, to be immaterial.
The County is a defendant and counter-plaintiff in a lawsuit with the Municipal Employees’ Retirement
System (MERS) over disputed contributions necessary to fund certain defined benefit pension programs.
The outcome of this lawsuit is not presently known. The County could be subject to significantly higher
contributions in the future to fund these programs, depending on the resolution of this matter.
12. PROPERTY TAXES
County property taxes are levied on July 1 of each year (the lien date) and are due in full by March 1 of
the year following the levy, at which time uncollected taxes became delinquent.
Property taxes are levied on the assessed taxable value of the property as established by local units,
accepted by the County and equalized under state statute at approximately 50% of the current estimated
market value. The taxable value of real and personal property recognized in the general fund for the 2015
levy was $3,350,759,774. The general operating tax rate for the 2014 levy was 5.2149 mills, with an
additional .7000, .9500, .3500 and .1250 mills assessed for jail debt, central dispatch, juvenile services
and health and rehabilitation services facility, respectively. These additional levies were based on a 2014
taxable value of $3,257,343,469.
70
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Delinquent taxes receivable represent unpaid personal property taxes in the general and special revenue
funds and unpaid real property taxes in the delinquent tax revolving funds. By agreement with the various
taxing authorities, the County purchases at face value the real property taxes returned delinquent each
March 1 and records a corresponding delinquent taxes receivable. These receivables are pledged to a
bank for the payment of the notes payable and subsequent collection on the receivable.
13. POSTEMPLOYMENT HEALTH CARE BENEFITS
The County provides certain health care benefits for employees retiring during or after 1990.
Substantially all employees hired prior to January 1, 2006 are eligible for benefits if they reach the age of
55 with at least 25 years of credited service while working for the County, retire due to duty disability as
determined by MERS, or meet other criteria as discussed in the personnel manual. The County pays the
entire cost of health insurance premiums for the retiree and a portion for his/her spouse as prescribed in
the personnel manual. The activity of this program is accounted for in the retirees’ health insurance
internal service fund.
Effective January 1, 2001, new employees’ spouses are no longer eligible for coverage under the plan.
Any employees hired after January 1, 2006, are not eligible for County paid retiree health insurance as
previously described. Employees are required to contribute 1% of their salary into a Health Care Savings
Plan through Michigan Employees Retirement System. The County will contribute an amount equal to 2%
of the employee’s salary into their Health Care Savings Plan. An employee may also contribute over and
above the mandatory 1%, up to 10%, and the County will match the additional contribution by the
employee over the 2% and up to 4%. Any money contributed by the employee will remain in the
employee's account to use for allowable health related activities upon their retirement or termination of
employment. The Health Care Saving Plan has a vesting policy as described in the personnel policy.
In fiscal 2006, the County established a retiree healthcare trust with the Michigan Municipal Employees
Retirement System (MERS) to which it transferred monies from the internal service fund in order to earn a
greater return on investment. At September 30, 2015, the fair value of the trust assets was $6,028,558;
because these assets are in trust with a third party trustee, they are not reported in the accompanying
financial statements. The County did not make any contributions to the trust during fiscal year 2015 and
did not pay any benefits from trust assets; instead, all such activity was processed through the
aforementioned internal service fund.
In May 2015, the County established a retiree healthcare trust administered by the County to which it
transferred monies from the internal service fund in order to earn a greater return on investment. At
September 30, 2015, the fair value of the trust assets was $3,780,454; because these assets are
administered by the County, the County has established a trust fund accounting for the activity in the
accompanying financial statements. The County made an initial contribution of $3,998,641 to the trust
during fiscal 2015 and did not pay any benefits from trust assets; instead, all such activity was processed
through the aforementioned internal service fund.
Plan Description. The County’s Retiree Health Plan (the “Plan”) is a single-employer defined benefit
healthcare plan administered by the Retiree Health Care Board (the “Board”). The Plan was established
and may be amended by the County Board of Commissioners, subject to applicable collective bargaining
agreements. Eligible retirees are those individuals who meet the requirements to receive MERS
retirement benefits.
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EATON COUNTY, MICHIGAN
Notes to Financial Statements
Basis of Accounting. The Plan’s financial statements are prepared using the accrual basis of accounting.
Plan contributions are recognized in the period in which the contributions are due. Employer
contributions are recognized when due and the employer has made a formal commitment to provide the
contribution. Benefits and refunds are recognized when due and payable in accordance with the terms of
the plan.
Method Used to Value Investments. Plan investments are reported at fair value. Securities traded on a
national or international exchange are valued at the last reported sales price. Investments that do not
have an established market are reported at estimated fair values.
Funding Policy. The contribution requirements of plan members and the County are established and may
be amended by the County Board of Commissioners, subject to applicable labor contracts. Plan members
are not required to contribute to the plan. The County may contribute the annual required contribution
(ARC), which is an amount actuarially determined in accordance with the parameters of GASB Statement
45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to
exceed 30 years. For the year ended September 30, 2015, the County contributed $3,998,641 to the trust
and made additional contributions on a pay-as-you-go basis, which amounted to $1,532,497 for the year.
These costs are recognized as an expense when claims or premiums are paid.
Annual OPEB Cost and Net OPEB Obligation. For the year ended September 30, 2015, the components of
the County’s annual OPEB (other postemployment benefit) cost for the year, the amount actually
contributed to the Plan, and changes in the County’s net OPEB obligation to the Plan were as follows:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
$
5,153,839
668,598
(862,271)
Annual OPEB cost
Contributions made
4,960,166
(5,531,138)
Decrease in net OPEB obligation
Net OPEB obligation, beginning of year
(570,972)
11,143,298
Net OPEB obligation, end of year
$ 10,572,326
The County’s annual OPEB costs, the percentage of annual OPEB costs contributed to the Plan, and the
net OPEB obligation as of September 30, 2015, and the preceding two years, were as follows:
Three-Year Trend Information
Year Ended
2013
2014
2015
Annual OPEB
Cost
$
4,786,568
5,029,721
4,960,166
72
Percentage of
Annual OPEB
Cost
Contributed
27.4%
40.6%
111.5%
Net OPEB
Obligation
$
8,153,450
11,143,298
10,572,326
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Funded Status and Funding Progress. The funded status of the Plan as of December 31, 2015, the date of
the latest actuarial valuation, was as follows:
Actuarial accrued liabilities (AAL)
Actuarial value of plan assets
$
Unfunded actuarial accrued liability (UAAL)
$ 50,819,929
Funded ratio
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
13.0%
$ 17,600,899
288.7%
58,409,824
7,589,895
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared to past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
Significant methods and assumptions were as follows:
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
December 31, 2012
Entry age
Level dollar amount
25 years
5-year smoothing
Actuarial assumptions:
Investment rate of return
Projected salary increases
Healthcare inflation rate
6.0%
4.5%
9.0% initially; 4.5% ultimately
Health and Rehabilitation Services Facility
The Health and Rehabilitation Services Facility participates in a defined benefit plan that provides
postemployment medical benefits to certain retirees and their spouses. Employees who retire as a
director with at least 25 years of service may become eligible for benefits. The postemployment benefit
is expected to be paid by the facility.
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EATON COUNTY, MICHIGAN
Notes to Financial Statements
Basis of Accounting. The Plan’s financial statements are prepared using the accrual basis of accounting.
Plan contributions are recognized in the period in which the contributions are due. Employer
contributions are recognized when due and the employer has made a formal commitment to provide the
contribution. Benefits and refunds are recognized when due and payable in accordance with the terms of
the plan.
Funding Policy. The facility has no obligation to make contributions in advance of when premiums are
due for payment as this may be funded on a pay-as-you-go basis. The Health and Rehabilitation Services
Facility’s annual other postemployment benefits (OPEB) cost is calculated based on the annual required
contribution (ARC) of the employer. The Facility has elected to calculate the ARC and related liabilities
using the alternative measurement permitted by GASB 45 for employers in plans with fewer than one
hundred total plan members. The ARC represents a level of funding that, if paid on an on-going basis, is
projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed 30 years.
Annual OPEB Cost and Net OPEB Obligation. For the year ended September 30, 2015, the components of
the Health and Rehabilitation Services Facility’s annual OPEB (other postemployment benefit) cost for the
year, the amount actually contributed to the Plan, and the Facility’s net OPEB obligation to the Plan were
as follows:
Annual OPEB cost
Interest on net OPEB obligation
Adjustment to annual required contribution
$
Annual OPEB cost
Contributions made
97,415
23,287
(24,116)
96,586
(19,066)
Increase in net OPEB obligation
77,520
Net OPEB obligation, beginning of year
Net OPEB obligation, end of year
$
423,373
500,893
Funded Status and Funding Progress. The funded status of the Plan as of September 30, 2015, was as
follows:
Actuarial accrued liabilities (AAL) and
unfunded actuarial accrued liability (UAAL)
$
962,200
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared to past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
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EATON COUNTY, MICHIGAN
Notes to Financial Statements
Actuarial Methods and Assumptions. Detailed data for the actuarial methods and assumptions used are
reported in the separately issued audit report for the Eaton County Health and Rehabilitation Services
Facility.
Road Commission
The Road Commission has established a retiree health care fund (a fiduciary fund) with the intent of prefunding postemployment health care benefits to eligible retirees and their families. Annual employer
contributions to fund the Plan are currently on a pay-as-you-go basis with the intent of building the fund
for purposes of paying future benefits. The Road Commission made contributions of $493,050 to the Plan
for the year ended September 30, 2015.
Annual OPEB Cost and Net OPEB Obligation. The Road Commission’s annual other postemployment
benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer
(ARC). The Road Commission has elected to calculate the ARC and related information using the
alternative measurement method permitted by GASB Statement No. 45 for employers in plans with fewer
than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years. The following table shows the components of the
Road Commission’s annual OPEB cost for the year, the amount actually contributed to the Plan, and
changes in the Road Commission’s net OPEB asset:
Annual required contribution
Interest on net OPEB (asset)
Adjustment to annual required contribution
$
133,264
(103,428)
95,044
Annual OPEB cost
Contributions made
124,880
493,050
Increase in net OPEB asset
368,170
Net OPEB asset, beginning of year
Net OPEB asset, end of year
$
1,477,532
1,845,702
The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB asset for 2015 and the previous two years, was as follows:
Three-Year Trend Information
Year Ended
2013
2014
2015
Annual OPEB
Cost
$
234,784
234,560
124,880
75
Percentage of
Annual OPEB
Cost
Contributed
217%
216%
395%
Net OPEB
Asset
$
1,205,765
1,477,532
1,845,702
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Funded Status and Funding Progress. The funded status of the Plan as of September 30, 2012, the date of
the latest actuarial valuation, was as follows:
Actuarial accrued liabilities (AAL)
Actuarial value of plan assets
$
3,815,444
3,014,487
Unfunded actuarial accrued liability (UAAL)
$
800,957
Funded ratio
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
$
79.0%
1,839,347
43.5%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared to past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements in the separately issued Road Commission report, presents
multiyear trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions. The annual required contribution was determined as part of the
September 30, 2015 actuarial valuation using a simplified version of the entry age cost method. The
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an
open basis. The remaining amortization period at September 30, 2015, was 24 years.
14. PENSION PLANS
County
General Information About the Plan
Plan Description. The County participates in the Municipal Employees' Retirement System (MERS) of
Michigan, a defined benefit pension plan providing certain retirement, disability and death benefits to
plan members and beneficiaries. MERS is an agent multiple-employer, statewide public employee pension
plan established by the Michigan Legislature under Public Act 135 of 1945 and administered by a nine
member Retirement Board. Public Act 427 of 1984, as amended, establishes and amends the benefit
provisions of the participants in MERS. MERS issues a publicly available financial report that includes
financial statements and required supplementary information. This report may be obtained accessing the
MERS website at www.mersofmich.com.
Benefits Provided. Pension benefits vary by division/bargaining unit and are calculated as final average
compensation (based on a 3 or 5 year period) and multipliers ranging from 1.7% to 3.2%. Participants are
considered to be fully vested in the plan after 10 years. Normal retirement age is 60 with early
retirement at age 50 with 25 years of service, age 55 with 15 years of service, or age 55 with 25 years of
service, depending on division/bargaining unit.
76
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Employees Covered by Benefit Terms. At December 31, 2014, plan membership consisted of the
following:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
261
66
354
Total membership
681
Contributions. The County is required to contribute amounts at least equal to the actuarially determined
rate, as established by the MERS Retirement Board. 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 any unfunded accrued liability. In addition, the employer may establish contribution
rates to be paid by its covered employees.
Employer and employee contribution rates, by division/bargaining unit, were as follows for the year
ended September 30, 2015:
Division/Bargaining Unit
Employer Contribution
Employee Contribution
10.73%
61.96%
34.49%
9.40%
15.15%
35.70%
5.49%
18.91%
20.62%
7.30%
16.50%
9.00%
5.94%
13.46%
15.20%
1.00%
8.22%
13.70%
01 - NonUnion
02 - Sheriff Superv.
10 - Admin Staff
11 - General Maint
12 - NonSupervisors
13 - Dispatch Superv.
15 - Gen Youth Services
16 - Animal Control
20 - Sheriff Non-Superv
Net Pension Liability. The County's net pension liability was measured as of December 31, 2014, and the
total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of that date.
Actuarial Assumptions. The total pension liability in the December 31, 2014 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation
Salary increases
3% to 4%
4.5% in the long-term (2% and 3% for calendar
years 2015 and 2016, respectively)
8.25%, including inflation
Investment rate of return
Although no specific price inflation assumptions are needed for the valuation, the 4.5% long-term wage
inflation assumption would be consistent with a price inflation of 3%-4%.
77
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Mortality rates used were based on the 1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with a 10-year set forward in ages to
reflect the higher expected mortality rates of disabled members.
The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an
actuarial experience study conducted in 2008. (MERS Retirement Board is currently conducting an
actuarial experience study covering the period from January 1, 2009, through December 31, 2013.)
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 and administrative 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
Allocation
Asset Class
Global equity
Global fixed income
Real assets
Diversifying strategies
57.5%
20.0%
12.5%
10.0%
Long-term
Expected Real
Rate of Return
Expected
MoneyWeighted Rate
of Return
5.02%
2.18%
4.23%
6.56%
2.89%
0.44%
0.53%
0.65%
100.0%
Inflation
Administrative expenses netted above
3.50%
0.25%
Investment rate of return
8.25%
Discount Rate. The discount rate used to measure the total pension liability is 8.25% for 2014. 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 payments to determine the total pension liability.
78
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Changes in Net Pension Liability
The components of the change in the net pension liability are summarized as follows:
Balances at December 31, 2013
Changes for the year:
Service cost
Interest
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Net changes
Balances at December 31, 2014
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
$ 126,921,279
$ 79,760,284
$ 47,160,995
2,744,783
10,297,354
-
2,295,134
1,900,799
4,994,651
2,744,783
10,297,354
(2,295,134)
(1,900,799)
(4,994,651)
(6,954,516)
6,087,621
(6,954,516)
(183,040)
2,053,028
183,040
4,034,593
$ 133,008,900
$
81,813,312
$
51,195,588
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the County, calculated using the discount rate of 8.25%, as well as what the County's
net pension liability would be if it were calculated using a discount rate that is 1% lower (7.25%) or 1%
higher (9.25%) than the current rate:
1% Decrease
(7.25%)
Current
Discount Rate
(8.25%)
1% Increase
(9.25%)
$ 67,055,308
$ 51,195,588
$ 38,019,582
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position
is available in the separately issued Plan financial statements.
79
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Pension Expense and Deferred Outflows of Resources Related to Pensions
For the year ended September 30, 2015, the County recognized pension expense of $5,158,343. The
County reported deferred outflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Difference between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
$
1,171,384
1,171,384
2,034,959
Contributions subsequent to the measurement date
Total
$
3,206,343
The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the net pension liability for the year ending
September 30, 2016. Other amounts reported as deferred outflows of resources related to the pension will
be recognized in pension expense as follows:
Year Ended
September 30,
Amount
2016
2017
2018
2019
$
292,846
292,846
292,846
292,846
Total
$
1,171,384
Payable to the Pension Plan. At September 30, 2015, the County reported a payable of $348,827 for the
outstanding amount of contributions to the pension plan required for the year ended September 30, 2015.
Section 457 Plan
The County also offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan is available to all full-time County employees, who may elect to
defer a portion of their salary until future years. The deferred compensation is not available to
participants until termination, retirement, death, or unforeseeable emergency. The Plan has created a
trust for the exclusive benefit of the Plan’s participants under the rules provided in Internal Revenue
Code Section 401(f). The County did not contribute to the plan during 2015. The County employees made
contributions of $210,678 to the plan for the year ended September 30, 2015.
80
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Health and Rehabilitation Services Facility
General Information About the Plan
Plan Description. The Health and Rehabilitation Services Facility (Facility) participates in the Municipal
Employees' Retirement System (MERS) of Michigan, a defined benefit pension plan providing certain
retirement, disability and death benefits to plan members and beneficiaries. MERS is an agent multipleemployer, statewide public employee pension plan established by the Michigan Legislature under Public
Act 135 of 1945 and administered by a nine member Retirement Board. Public Act 427 of 1984, as
amended, establishes and amends the benefit provisions of the participants in MERS. MERS issues a
publicly available financial report that includes financial statements and required supplementary
information. This report may be obtained accessing the MERS website at www.mersofmich.com.
Benefits Provided. Pension benefits vary by division/bargaining unit and are calculated as final average
compensation (based on a 3 or 5 year period) and multipliers ranging from 1.7% to 2.5%. Participants are
considered to be fully vested in the plan after 6 or 10 years, depending on division/bargaining unit.
Normal retirement age is 60 with early retirement at age 50 with 25 years of service or age 55 with 25
years of service, depending on division/bargaining unit.
Employees Covered by Benefit Terms. At December 31, 2014, plan membership consisted of the
following:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
45
12
207
Total membership
264
Contributions. The Facility is required to contribute amounts at least equal to the actuarially determined
rate, as established by the MERS Retirement Board. 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 any unfunded accrued liability. In addition, the employer may establish contribution
rates to be paid by its covered employees.
For the year ended September 30, 2015, the average active employee contribution rate was 3.0 percent
of annual pay and the Facility's average contribution rate was approximately 4.1 percent of annual
payroll.
Net Pension Liability. The Facility's net pension liability was measured as of December 31, 2014, and the
total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of that date.
81
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Actuarial Assumptions. The total pension liability in the December 31, 2014 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation
Salary increases
3% to 4%
4.5% in the long-term (2% and 3% for calendar
years 2015 and 2016, respectively)
8.25%, including inflation
Investment rate of return
Although no specific price inflation assumptions are needed for the valuation, the 4.5% long-term wage
inflation assumption would be consistent with a price inflation of 3%-4%.
Mortality rates used were based on the 1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with a 10-year set forward in ages to
reflect the higher expected mortality rates of disabled members.
The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an
actuarial experience study conducted in 2008. (MERS Retirement Board is currently conducting an
actuarial experience study covering the period from January 1, 2009, through December 31, 2013.)
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 and administrative 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
Allocation
Asset Class
Global equity
Global fixed income
Real assets
Diversifying strategies
57.5%
20.0%
12.5%
10.0%
Long-term
Expected Real
Rate of Return
Expected
MoneyWeighted Rate
of Return
5.02%
2.18%
4.23%
6.56%
2.89%
0.44%
0.53%
0.65%
100.0%
Inflation
Administrative expenses netted above
3.50%
0.25%
Investment rate of return
8.25%
82
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Discount Rate. The discount rate used to measure the total pension liability is 8.25% for 2014. 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 payments to determine the total pension liability.
Changes in Net Pension Liability
The components of the change in the net pension liability are summarized as follows:
Balances at December 31, 2013
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
$
$
Changes for the year:
Service cost
Interest
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Net changes
Balances at December 31, 2014
$
8,244,444
7,677,093
Net Pension
Liability
(a) - (b)
$
567,351
555,375
686,617
-
356,907
241,066
491,649
555,375
686,617
(356,907)
(241,066)
(491,649)
(398,998)
842,994
(398,998)
(18,165)
672,459
18,165
170,535
9,087,438
$
8,349,552
$
737,886
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the Facility, calculated using the discount rate of 8.25%, as well as what the Facility's
net pension liability would be if it were calculated using a discount rate that is 1% lower (7.25%) or 1%
higher (9.25%) than the current rate:
1% Decrease
(7.25%)
Current
Discount Rate
(8.25%)
$
$
1,956,942
737,886
1% Increase
(9.25%)
$
(269,643)
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position
is available in the separately issued Plan financial statements.
83
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Pension Expense and Deferred Outflows of Resources Related to Pensions
For the year ended September 30, 2015, the Facility recognized pension expense of $408,107. The Facility
reported deferred outflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Difference between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
$
119,335
119,335
299,258
Contributions subsequent to the measurement date
Total
$
418,593
The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the net pension liability for the year ending
September 30, 2016. Other amounts reported as deferred outflows of resources related to the pension will
be recognized in pension expense as follows:
Year Ended
September 30,
Amount
2016
2017
2018
2019
$
29,834
29,834
29,834
29,833
Total
$
119,335
Payable to the Pension Plan. At September 30, 2015, the Facility reported a payable of $30,494 for the
outstanding amount of contributions to the pension plan required for the year ended September 30, 2015.
District Health Department
General Information About the Plan
Plan Description. The District Health Department (Department) participates in the Municipal Employees'
Retirement System (MERS) of Michigan, a defined benefit pension plan providing certain retirement,
disability and death benefits to plan members and beneficiaries. MERS is an agent multiple-employer,
statewide public employee pension plan established by the Michigan Legislature under Public Act 135 of
1945 and administered by a nine member Retirement Board. Public Act 427 of 1984, as amended,
establishes and amends the benefit provisions of the participants in MERS. MERS issues a publicly available
financial report that includes financial statements and required supplementary information. This report
may be obtained accessing the MERS website at www.mersofmich.com.
84
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Benefits Provided. Pension benefits vary by division/bargaining unit and are calculated as final average
compensation (based on a 3 or 5 year period) and multipliers at 2.5%. Participants are considered to be
fully vested in the plan after 6 years. Normal retirement age is 60 with early retirement at age 50 with 25
years of service or age 55 with 15 years of service, depending on division/bargaining unit.
Employees Covered by Benefit Terms. At December 31, 2014, plan membership consisted of the
following:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total membership
78
41
65
184
Contributions. The Department is required to contribute amounts at least equal to the actuarially
determined rate, as established by the MERS Retirement Board. 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 any unfunded accrued liability. In addition, the employer may establish
contribution rates to be paid by its covered employees.
Employer and employee contribution amounts or rates, by division/bargaining unit, were as follows for
the year ended September 30, 2015:
Division/Bargaining Unit
Employer Contribution
Employee Contribution
12.44%
22.09%
12.44%
7.98%
2.00%
6.35%
01 - PERA Unit II
10 - Non Un Mgmt
11 - PERA
Net Pension Liability. The Department's net pension liability was measured as of December 31, 2014, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date.
Actuarial Assumptions. The total pension liability in the December 31, 2014 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation
Salary increases
3% to 4%
4.5% in the long-term (2% and 3% for calendar
years 2015 and 2016, respectively)
8.25%, including inflation
Investment rate of return
Although no specific price inflation assumptions are needed for the valuation, the 4.5% long-term wage
inflation assumption would be consistent with a price inflation of 3%-4%.
Mortality rates used were based on the 1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with a 10-year set forward in ages to
reflect the higher expected mortality rates of disabled members.
85
EATON COUNTY, MICHIGAN
Notes to Financial Statements
The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an
actuarial experience study conducted in 2008. (MERS Retirement Board is currently conducting an
actuarial experience study covering the period from January 1, 2009, through December 31, 2013.)
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 and administrative 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
Allocation
Asset Class
Global equity
Global fixed income
Real assets
Diversifying strategies
57.5%
20.0%
12.5%
10.0%
Long-term
Expected Real
Rate of Return
Expected
MoneyWeighted Rate
of Return
5.02%
2.18%
4.23%
6.56%
2.89%
0.44%
0.53%
0.65%
100.0%
Inflation
Administrative expenses netted above
3.50%
0.25%
Investment rate of return
8.25%
Discount Rate. The discount rate used to measure the total pension liability is 8.25% for 2014. 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 payments to determine the total pension liability.
86
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Changes in Net Pension Liability
The components of the change in the net pension liability are summarized as follows:
Balances at December 31, 2013
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
$ 17,406,866
$ 12,827,150
352,453
1,408,014
-
1,092,352
175,161
807,772
(1,032,516)
727,951
(1,032,516)
(29,793)
1,012,976
Changes for the year:
Service cost
Interest
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Net changes
Balances at December 31, 2014
$
18,134,817
$
13,840,126
Net Pension
Liability
(a) - (b)
$
4,579,716
352,453
1,408,014
(1,092,352)
(175,161)
(807,772)
29,793
(285,025)
$
4,294,691
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the Department, calculated using the discount rate of 8.25%, as well as what the
Department's net pension liability would be if it were calculated using a discount rate that is 1% lower
(7.25%) or 1% higher (9.25%) than the current rate:
1% Decrease
(7.25%)
Current
Discount Rate
(8.25%)
$
$
6,203,236
4,294,691
1% Increase
(9.25%)
$
2,667,729
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position
is available in the separately issued Plan financial statements.
87
EATON COUNTY, MICHIGAN
Notes to Financial Statements
Pension Expense and Deferred Outflows of Resources Related to Pensions
For the year ended September 30, 2015, the Department recognized pension expense of $600,181. The
Department reported deferred outflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Difference between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
$
207,146
207,146
440,396
Contributions subsequent to the measurement date
Total
$
647,542
The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the net pension liability for the year ending
September 30, 2016. Other amounts reported as deferred outflows of resources related to the pension will
be recognized in pension expense as follows:
Year Ended
September 30,
Amount
2016
2017
2018
2019
$
51,786
51,786
51,786
51,788
Total
$
207,146
Payable to the Pension Plan. At September 30, 2015, the Department reported a payable of $47,618 for
the outstanding amount of contributions to the pension plan required for the year ended September 30,
2015.
15. DEFINED CONTRIBUTION PENSION PLAN - ROAD COMMISSION
The Road Commission provides pension benefits for substantially all of its regular full-time employees
through a defined contribution pension plan. The Road Commission is the plan administrator; however,
the daily plan administration and operation is provided through the American Funds Group. The Road
Commission contributes an amount equal to 12% of each employee’s compensation during the plan year,
after completion of one year of service. Members do not contribute any annual compensation to this plan.
The Road Commission’s contributions to the plan for the year ended September 30, 2015 were $210,789.
88
EATON COUNTY, MICHIGAN
Notes to Financial Statements
16. NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of September 30, 2015, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Capital related bonds
Installment contracts
Leases payable
Deferred loss on refunding
Unamortized premium on bonds
Governmental
Activities
Business-type
Activities
$
$
664,275
29,425,906
30,090,181
(11,410,000)
(1,942,279)
(5,508)
(13,357,787)
Total net investment in capital assets
$ 16,732,394
89
22,230
15,599,406
15,621,636
(8,062,646)
(36,986)
34,925
(8,064,707)
$
7,556,929
Component
Units
$ 24,416,649
127,725,595
152,142,244
(29,250,642)
355,219
(560,221)
(29,455,644)
$ 122,686,600
EATON COUNTY, MICHIGAN
Notes to Financial Statements
17. COMPONENTS OF FUND BALANCES
Detailed information on fund balances of governmental funds as of September 30, 2015 is as follows:
Central
Dispatch
Fund
General
Fund
Nonspendable:
Prepaids
Advances to component units
$
Total nonspendable
90,917
60,000
$
Child
Care
Fund
-
$
Nonmajor
Governmental
Funds
-
$
-
Total
$
90,917
60,000
150,917
-
-
-
150,917
Restricted for:
Central dispatch
Debt service
Permanent trusts
Remonumentation
ROD technology
Veterans trust
Public safety
Officer training
Judicial
-
1,911,668
-
-
48,439
90,562
5,400
176,292
726
458,684
209,898
516,479
1,911,668
48,439
90,562
5,400
176,292
726
458,684
209,898
516,479
Total restricted
-
1,911,668
-
1,506,480
3,418,148
Committed for:
Public safety
CDBG housing
Child care
Solid waste
General government
Health and social services
LEAD drug testing
Sheriff road crew
Concealed pistol licenses
-
-
53,262
-
868
115,010
192,699
2,384
101,674
1,839
18,910
13,571
868
115,010
53,262
192,699
2,384
101,674
1,839
18,910
13,571
Total committed
-
-
53,262
446,955
500,217
6,450,378
-
-
-
6,450,378
Unassigned
Total fund balances
$
6,601,295
$
1,911,668
90
$
53,262
$
1,953,435
$
10,519,660
EATON COUNTY, MICHIGAN
Notes to Financial Statements
18. RESTATEMENT
The County adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions,
in the current year. As a result of this change, beginning net position of governmental activities, the Health and
Rehabilitation Services Facility enterprise fund (business-type activities), and the District Health discretely
presented component unit (aggregate discretely presented component units) was decreased by $45,482,370,
$295,381, and $3,999,545, respectively.

91
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92
REQUIRED SUPPLEMENTARY INFORMATION
93
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - County
Schedule of Changes in the County's Net Pension Liability and Related Ratios
Year Ended
September 30,
2015
Total pension liability
Service cost
Interest
Benefit payments, including refunds
of employee contributions
Net change in total pension liability
$
2,744,783
10,297,354
(6,954,516)
6,087,621
Total pension liability, beginning of year
126,921,279
Total pension liability, end of year
133,008,900
Plan fiduciary net position
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net change in plan fiduciary net position
(6,954,516)
(183,040)
2,053,028
Plan fiduciary net position, beginning of year
79,760,284
Plan fiduciary net position, end of year
81,813,312
2,295,134
1,900,799
4,994,651
$ 51,195,588
County's net pension liability
Plan fiduciary net position as a percentage
of total pension liability
61.5%
Covered-employee payroll
$
County's net pension liability as a percentage
of covered-employee payroll
16,927,042
302.4%
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
94
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - County
Schedule of the Net Pension Liability
Fiscal Year
Ended
September 30,
Total Pension
Liability
2015
$ 133,008,900
Plan Net
Position
$
81,813,312
Net Pension
Liability
$
51,195,588
Plan Net
Position as
Percentage of
Total Pension
Liability
61.5%
CoveredEmployee
Payroll
$
16,927,042
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
95
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - County
Schedule of Contributions
Fiscal Year
Ended
September 30,
2015
Contributions
in Relation to
the Actuarially
Determined
Contribution
Actuarially
Determined
Contribution
$
2,649,596
$
2,649,596
Contribution
Deficiency
(Excess)
$
-
CoveredEmployee
Payroll
$
17,943,906
Contributions
as Percentage
of CoveredEmployee
Payroll
14.8%
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
Notes to Schedule of Contributions
Valuation Date
Actuarially determined contribution rates are calculated as of the
December 31 that is 21 months prior to the beginning of the fiscal
year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Entry-age normal
Amortization method
Level percent of payroll, open
Remaining amortization
period
21-24 years, depending on division/bargaining unit
Asset valuation method
Open; 10-year smooth market
Inflation
3.0% to 4.0%
4.5% in the long-term (2% and 3% for calendar years 2015 and 2016,
Salary increases
respectively)
Investment rate of return
8.25%
Age-based table of rates that are specific to the type of eligibility
Retirement age
condition. The Normal Retirement rates were first used for the
December 31, 2009 actuarial valuations. The Early Retirement rates
were first used for the December 31, 2011 actuarial valuations.
Mortality
1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with
a 10-year set forward in ages to reflect the higher expected mortality
rates of disabled members.
96
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan Health and Rehabilitation Services Facility
Schedule of Changes in the Facility's Net Pension Liability and Related Ratios
Year Ended
September 30,
2015
Total pension liability
Service cost
Interest
Benefit payments, including refunds
of employee contributions
Net change in total pension liability
$
555,375
686,617
(398,998)
842,994
Total pension liability, beginning of year
8,244,444
Total pension liability, end of year
9,087,438
Plan fiduciary net position
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net change in plan fiduciary net position
356,907
241,066
491,649
(398,998)
(18,165)
672,459
Plan fiduciary net position, beginning of year
7,677,093
Plan fiduciary net position, end of year
8,349,552
Facility's net pension liability
$
Plan fiduciary net position as a percentage
of total pension liability
737,886
91.9%
Covered-employee payroll
$
Facility's net pension liability as a percentage
of covered-employee payroll
7,719,600
9.6%
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
97
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan Health and Rehabilitation Services Facility
Schedule of the Net Pension Liability
Fiscal Year
Ended
September 30,
2015
Total Pension
Liability
$
9,087,438
Plan Net
Position
$
8,349,552
Net Pension
Liability
$
737,886
Plan Net
Position as
Percentage of
Total Pension
Liability
91.9%
CoveredEmployee
Payroll
$
7,719,600
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
98
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan Health and Rehabilitation Services Facility
Schedule of Contributions
Fiscal Year
Ended
September 30,
2015
Contributions
in Relation to
the Actuarially
Determined
Contribution
Actuarially
Determined
Contribution
$
384,195
$
384,195
Contribution
Deficiency
(Excess)
$
-
CoveredEmployee
Payroll
$
8,161,747
Contributions
as Percentage
of CoveredEmployee
Payroll
4.7%
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
Notes to Schedule of Contributions
Valuation Date
Actuarially determined contribution rates are calculated as of the
December 31 that is 21 months prior to the beginning of the fiscal
year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Entry-age normal
Amortization method
Level percent of payroll, open
Remaining amortization
period
25 years
Asset valuation method
Open; 10-year smooth market
Inflation
3.0% to 4.0%
4.5% in the long-term (2% and 3% for calendar years 2015 and 2016,
Salary increases
respectively)
Investment rate of return
8.25%
Age-based table of rates that are specific to the type of eligibility
Retirement age
condition. The Normal Retirement rates were first used for the
December 31, 2009 actuarial valuations. The Early Retirement rates
were first used for the December 31, 2011 actuarial valuations.
Mortality
1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with
a 10-year set forward in ages to reflect the higher expected mortality
rates of disabled members.
99
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - District Health
Schedule of Changes in the District's Net Pension Liability and Related Ratios
Year Ended
September 30,
2015
Total pension liability
Service cost
Interest
Benefit payments, including refunds
of employee contributions
Net change in total pension liability
$
352,453
1,408,014
(1,032,516)
727,951
Total pension liability, beginning of year
17,406,866
Total pension liability, end of year
18,134,817
Plan fiduciary net position
Employer contributions
Employee contributions
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net change in plan fiduciary net position
(1,032,516)
(29,793)
1,012,976
Plan fiduciary net position, beginning of year
12,827,150
Plan fiduciary net position, end of year
13,840,126
1,092,352
175,161
807,772
District's net pension liability
$
Plan fiduciary net position as a percentage
of total pension liability
4,294,691
76.3%
$
Covered-employee payroll
District's net pension liability as a percentage
of covered-employee payroll
2,769,717
155.1%
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
100
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - District Health
Schedule of the Net Pension Liability
Fiscal Year
Ended
September 30,
2015
Total Pension
Liability
$
18,134,817
Plan Net
Position
$
13,840,126
Net Pension
Liability
$
4,294,691
Plan Net
Position as
Percentage of
Total Pension
Liability
76.3%
CoveredEmployee
Payroll
$
2,769,717
The amounts presented for each fiscal year were determined as of December 31 of the preceding year.
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
101
EATON COUNTY, MICHIGAN
Required Supplementary Information
MERS Agent Multiple-Employer Defined Benefit Pension Plan - District Health
Schedule of Contributions
Fiscal Year
Ended
September 30,
2015
Actuarially
Determined
Contribution
$
Contributions
in Relation to
the Actuarially
Determined
Contribution
429,325
$
429,325
Contribution
Deficiency
(Excess)
$
-
CoveredEmployee
Payroll
$
2,891,203
Contributions
as Percentage
of CoveredEmployee
Payroll
14.8%
Note: GASB 68 was implemented in fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
Notes to Schedule of Contributions
Valuation Date
Actuarially determined contribution rates are calculated as of the
December 31 that is 21 months prior to the beginning of the fiscal
year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Entry-age normal
Amortization method
Level percent of payroll, open
Remaining amortization
period
24 years
Asset valuation method
Open; 10-year smooth market
Inflation
3.0% to 4.0%
4.5% in the long-term (2% and 3% for calendar years 2015 and 2016,
Salary increases
respectively)
Investment rate of return
8.25%
Age-based table of rates that are specific to the type of eligibility
Retirement age
condition. The Normal Retirement rates were first used for the
December 31, 2009 actuarial valuations. The Early Retirement rates
were first used for the December 31, 2011 actuarial valuations.
Mortality
1994 Group Annuity Mortality Table of a 50% Male and 50% Female
blend. For disabled retirees, the regular mortality table is used with
a 10-year set forward in ages to reflect the higher expected mortality
rates of disabled members.
102
EATON COUNTY, MICHIGAN
Required Supplementary Information
Postemployment Healthcare Plan - Retiree Health
Schedule of Funding Progress
Actuarial
Value of
Assets
(a)
Actuarial
Valuation Date
December 31
2009
2011
2012
Actuarial
Accrued
Liability
(AAL) Entry Age
(b)
$
6,090,475
6,923,689
7,589,895
$
47,199,800
53,761,648
58,409,824
Unfunded
AAL
(UAAL)
(b-a)
$
41,109,325
46,837,959
50,819,929
Funded
Ratio
(a / b)
12.9%
12.9%
13.0%
Schedule of Employer Contributions
Annual
Required
Contribution
Year Ended
September 30,
2013
2014
2015
$
4,855,258
5,159,931
5,153,839
103
Percentage
Contributed
27.0%
39.5%
107.3%
Covered
Payroll
(c)
$
18,276,740
17,631,734
17,600,899
UAAL as a
Percentage
of Covered
Payroll
((b-a) / c)
224.9%
265.6%
288.7%
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104
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
105
EATON COUNTY, MICHIGAN
Detailed Schedule of Revenues and Other Financing Sources
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues
Property taxes:
Real and personal property taxes
Industrial facilities tax
Payments in lieu
Delinquent taxes
Trailer park taxes
Real estate transfer tax
Interest and penalties
Total taxes
$
Licenses and permits:
Dog licenses
Pistol permits
Marriage licenses
Soil erosion
Total permits and regulatory licenses
Intergovernmental - federal/state:
Cooperative reimbursement - Prosecutor
ADC Incentive
Cooperative reimbursement - Friend of the Court
Strong Families/Safe Children
Local Law Enforcement Block Grant
Probate Judge's salary
Judicial salary standardization
Sheriff road patrol program
Marine safety program
Drug case incentive
Victims Rights Act
Veterans services
Parole violation grant
Diverted felon program
Assistant juvenile officer grant
Convention and tourism
Cigarette tax
Liquor license fees
State income tax
State aid-case flow assistance
State court equity funding
Title IV-E
Vertical drug
Miscellaneous
Total intergovernmental - federal/state
17,135,554
328,360
45,000
20,000
10,000
260,000
65,000
17,863,914
Final
Budget
$
17,135,554
328,360
45,000
20,000
10,000
260,000
65,000
17,863,914
98,000
30,000
16,000
40,000
184,000
98,000
30,000
16,000
40,000
184,000
103,726
150,000
844,606
2,500
1,000
102,000
228,620
101,370
5,000
1,400
120,000
230,000
145,000
52,776
800,000
7,000
25,000
2,216,196
25,000
430,000
23,000
7,500
21,000
5,642,694
106,726
150,000
961,606
2,500
1,000
102,000
228,620
101,370
5,000
1,400
120,000
230,000
145,000
52,776
840,746
7,000
25,000
2,216,196
25,000
430,000
23,000
7,500
21,000
5,803,440
Actual
$
17,082,150
331,724
15,661
28,293
13,581
378,579
52,996
17,902,984
91,913
28,771
15,361
82,795
218,840
121,102
151,943
643,456
1,280
94,195
228,620
101,370
(300)
1,763
120,000
219,168
194,085
52,388
840,746
31,839
2,212,318
25,868
431,010
2,533
14,164
25,560
5,513,108
Actual Over
(Under) Final
Budget
$
(53,404)
3,364
(29,339)
8,293
3,581
118,579
(12,004)
39,070
(6,087)
(1,229)
(639)
42,795
34,840
14,376
1,943
(318,150)
(1,220)
(1,000)
(7,805)
(5,300)
363
(10,832)
49,085
(388)
(7,000)
6,839
(3,878)
868
1,010
(20,467)
6,664
4,560
(290,332)
continued…
106
EATON COUNTY, MICHIGAN
Detailed Schedule of Revenues and Other Financing Sources
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues (cont.)
Intergovernmental - local:
Township - planning
Township - Sheriff
Prosecuting attorney services
Total intergovernmental - local
$
Charges for services:
Court:
District Court costs
Circuit Court probation
Court filing fees
Bond costs
Jury demand
Writ of garnishment
Attorney fee reimbursement
SOS reinstatement fee
Probation oversight
Alcohol assessment
Friend of the Court service fees
Probate Court services
Juvenile Court services
Prosecuting attorney services
Juvenile Court attorney fees
Crime victim assessment
Inmate medical
General government:
County Clerk services
County Treasurer services
Register of Deed services
Drain Commission services
Child care collection fees
Property description services
Food stamp fraud
Community development services
Sheriff Department:
Sheriff services
Economic crimes unit
OUIL/Impaired
False alarms
Abandoned vehicles
Inmate medical
Sentenced inmate boarding
Sale of lost/stolen property
Boarding of dogs and cats
Medical Examiner - cremation fees
Photocopies
Parks and recreation
142,976
3,017,507
40,000
3,200,483
Final
Budget
$
142,976
3,039,989
40,000
3,222,965
Actual
$
142,976
3,039,990
63,100
3,246,066
Actual Over
(Under) Final
Budget
$
1
23,100
23,101
14,000
121,500
1,000
6,000
101,000
17,500
35,000
170,000
26,000
131,500
36,000
8,000
100
28,000
200
5,000
14,000
121,500
1,000
6,000
101,000
17,500
35,000
170,000
26,000
131,500
36,000
8,000
100
28,000
200
5,000
1,004,509
57,011
123,484
905
6,390
116,550
41,780
36,487
202,785
39,409
163,848
42,629
3,758
23,104
171
3,339
1,004,509
43,011
1,984
(95)
390
15,550
24,280
1,487
32,785
13,409
32,348
6,629
(4,242)
(100)
(4,896)
(29)
(1,661)
92,500
11,000
320,000
50,000
44,000
20,600
2,500
15,000
92,500
11,000
320,000
63,500
44,000
20,600
2,500
15,000
104,368
10,508
336,129
78,707
40,198
23,941
2,891
23,362
11,868
(492)
16,129
15,207
(3,802)
3,341
391
8,362
137,000
460,500
14,000
4,000
5,000
5,000
40,000
500
5,000
12,000
67,600
137,000
460,500
14,000
4,000
5,000
5,000
40,000
500
5,000
12,000
67,600
114,122
415,887
9,488
10,944
2,800
2,825
45,433
4,222
29,190
12,815
72,627
(22,878)
(44,613)
(4,512)
6,944
(2,200)
(2,175)
5,433
(500)
(778)
17,190
12,815
5,027
continued…
107
EATON COUNTY, MICHIGAN
Detailed Schedule of Revenues and Other Financing Sources
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Revenues (cont.)
Charges for services - concluded:
Planning aerial photos
Computer
Miscellaneous
Total charges for services
$
15,500
2,022,500
Final
Budget
$
15,500
2,036,000
Actual
$
136
35,106
21,500
3,263,358
Actual Over
(Under) Final
Budget
$
136
35,106
6,000
1,227,358
Fines and forfeitures:
Ordinance fines and costs
Handicap parking
Bond forfeitures
Dog fines
Law library
Miscellaneous
Total fines and forfeitures
310,000
1,000
14,500
2,000
6,500
1,500
335,500
310,000
1,000
14,500
2,000
6,500
1,500
335,500
314,501
317
31,433
2,493
6,500
658
355,902
4,501
(683)
16,933
493
(842)
20,402
Interest and rents:
Interest on investments
Rental fees
Total interest and rents
500
278,191
278,691
500
278,191
278,691
14,480
263,526
278,006
13,980
(14,665)
(685)
Other:
Vending/pay phone commissions
Reimbursements and refunds
Restitution
Parks and recreation
Miscellaneous
Total other
50,200
103,900
2,000
200
36,550
192,850
50,200
130,130
2,000
200
59,650
242,180
49,366
633,397
7,019
300
59,229
749,311
(834)
503,267
5,019
100
(421)
507,131
29,720,632
29,966,690
31,527,575
Other financing sources
Transfers in
Proceeds from sale of capital assets
Issuance of long-term debt
1,747,697
10,000
-
1,747,882
10,000
-
1,755,000
8,506
61,933
7,118
(1,494)
61,933
Total other financing sources
1,757,697
1,757,882
1,825,439
67,557
Total revenues
Total revenues and other financing sources
$
31,478,329
$
31,724,572
$
33,353,014
1,560,885
$
1,628,442
concluded
108
EATON COUNTY, MICHIGAN
Detailed Schedule of Expenditures and Other Financing Uses
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Expenditures
Legislative:
Board of Commissioners
$
296,191
Final
Budget
$
296,191
Actual
$
289,396
Actual Over
(Under) Final
Budget
$
(6,795)
Judicial:
Circuit Court
District Court
Friend of Court
County Guardian
Probate Court
Juvenile Court
Probation
Law library
Total judicial
1,240,916
1,517,688
1,327,552
63,050
513,334
804,751
10,754
6,500
5,484,545
1,277,807
1,563,180
1,347,137
63,050
534,440
818,115
9,614
7,296
5,620,639
1,171,593
1,473,561
1,258,018
60,000
511,153
718,074
6,367
7,296
5,206,062
(106,214)
(89,619)
(89,119)
(3,050)
(23,287)
(100,041)
(3,247)
(414,577)
General government:
Elections
Clerk
Births and Deaths
Plat Board
Controller
Information Systems
Equalization
Prosecuting Attorney
Economic Crimes Unit
Register of Deeds
Treasurer
Cooperative Extension
Building Authority Administration
Building and Grounds
Drain Commission
Thornapple-Ground Soil Conservation
Total general government
91,300
582,842
250
323
790,956
871,994
581,773
1,571,596
364,932
213,536
399,954
139,146
250
1,666,637
414,545
18,891
7,708,925
91,500
608,668
250
323
832,115
900,576
596,488
1,624,478
387,432
232,251
425,304
140,981
250
1,691,594
443,428
18,891
7,994,529
84,519
586,325
211
803,608
881,854
572,591
1,554,822
293,643
224,151
401,148
137,290
1,558,243
420,200
18,891
7,537,496
(6,981)
(22,343)
(39)
(323)
(28,507)
(18,722)
(23,897)
(69,656)
(93,789)
(8,100)
(24,156)
(3,691)
(250)
(133,351)
(23,228)
(457,033)
4,965,292
4,249,126
3,750,258
50,000
200,850
12,389
213,275
104,960
368,711
77,911
13,992,772
5,222,643
4,359,409
3,753,497
50,000
201,000
12,389
221,792
104,960
396,190
90,911
14,412,791
4,940,362
4,163,906
3,554,181
8,008
195,788
1,335
206,708
104,958
342,489
85,396
13,603,131
(282,281)
(195,503)
(199,316)
(41,992)
(5,212)
(11,054)
(15,084)
(2)
(53,701)
(5,515)
(809,660)
Public safety:
Sheriff - General
Sheriff - Corrections
Sheriff - Delta office
Sheriff - Weighmaster
Sheriff - Road Patrol
Marine Safety
Community Development
Tri-County Regional Planning
Animal Control
Vertical drug
Total public safety
continued…
109
EATON COUNTY, MICHIGAN
Detailed Schedule of Expenditures and Other Financing Uses
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Original
Budget
Expenditures (cont.)
Public works:
Drains at Large
$
Health and social services:
Mid-South Substance Abuse
Medical Examiner
Community Mental Health
Barry-Eaton Health Plan Corporation
Tri-County Office on Aging
Veterans
Landfill
Child care - DHS
Soldiers and sailors
District Health - appropriation
District Health - cigarette tax
Total health and social services
Final
Budget
407,218
$
419,726
Actual
$
380,623
Actual Over
(Under) Final
Budget
$
(39,103)
400,000
149,200
394,628
650,000
61,166
109,703
35,000
2,500
30,000
182,116
5,000
2,019,313
505,573
161,700
514,628
83,475
61,166
112,703
35,000
5,355
30,000
748,641
2,258,241
505,573
157,030
514,628
83,475
60,426
101,566
28,281
5,354
19,125
748,641
2,224,099
(4,670)
(740)
(11,137)
(6,719)
(1)
(10,875)
(34,142)
Parks, recreation and culture:
Courthouse Square Association
Parks and recreation
Parks special projects
Historical commission
Total parks, recreation and culture
15,000
430,743
1,500
2,600
449,843
15,000
446,858
1,500
2,600
465,958
15,000
424,000
439,000
(22,858)
(1,500)
(2,600)
(26,958)
Other:
Computer
Insurance, bonds & contingency
Total other
40,531
465,000
505,531
88,893
46,506
135,399
88,892
7,656
96,548
(1)
(38,850)
(38,851)
520,917
410,000
828,010
1,758,927
325,070
617,012
567,934
1,510,016
344,394
258,248
635,072
1,237,714
19,324
(358,764)
67,138
(272,302)
Debt service:
Principal
Interest
Total debt service
-
312,125
34,875
347,000
312,125
34,875
347,000
Total expenditures
32,623,265
33,460,490
31,361,069
(2,099,421)
1,173,439
1,113,935
968,031
(145,904)
Capital outlay:
General
Public improvement
Computer
Total capital outlay
Other financing uses
Transfers out
Total expenditures and other financing uses
$
33,796,704
$
34,574,425
$
32,329,100
-
$
(2,245,325)
concluded
110
This page intentionally left blank.
111
EATON COUNTY, MICHIGAN
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Sheriff
Road
Crew
Assets
Cash and cash equivalents
Receivables:
Property taxes
Accounts receivable, net
Due from other governmental units
$
Solid
Waste
Ordinance
21,819
$
-
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable
Accrued liabilities
Due to other governmental units
Due to other funds
237,514
Swift
and Sure
Sanctions
$
5,900
-
CDBG
Housing
Grant
-
$
27,655
115,010
-
$
21,819
$
243,414
$
27,655
$
115,010
$
648
1,810
451
$
48,736
1,770
209
$
24,988
1,182
1,320
165
$
-
Total liabilities
2,909
50,715
27,655
-
Fund balances
Restricted
Committed
18,910
192,699
-
115,010
Total fund balances
18,910
192,699
-
115,010
Total liabilities and fund balances
$
112
21,819
$
243,414
$
27,655
$
115,010
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Construction
Code
Enforcement
$
458,175
Remonumentation
Grant
$
-
29,581
Register
of Deeds
Technology
$
7,359
Criminal
Property
Forfeiture
177,067
$
-
Drug Law
Forfeiture
868
$
-
S.T.O.P.
Grant
3,166
$
-
Drug Court III Circuit Court
-
$
36,314
6,620
20,929
$
458,175
$
36,940
$
177,067
$
868
$
3,166
$
36,314
$
27,549
$
52,946
5,378
1,280
$
31,540
-
$
775
-
$
-
$
60
-
$
33,653
2,365
296
$
1,625
1,507
189
$
59,604
31,540
775
-
60
36,314
3,321
398,571
-
5,400
-
176,292
-
868
3,106
-
-
24,228
-
398,571
5,400
176,292
868
3,106
-
24,228
458,175
$
36,940
$
177,067
$
868
$
3,166
$
36,314
$
27,549
continued…
113
EATON COUNTY, MICHIGAN
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Community
Corrections
Assets
Cash and cash equivalents
Receivables:
Property taxes
Accounts receivable, net
Due from other governmental units
$
-
$
21,883
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable
Accrued liabilities
Due to other governmental units
Due to other funds
Property
Forfeiture
Prosecutor
Domestic
Preparedness
37,459
$
15,778
Bureau of
Justice
LLEBG
2,384
$
-
7,045
$
21,883
$
53,237
$
2,384
$
7,045
$
10,945
5,893
521
54
$
700
-
$
-
$
7,045
-
Total liabilities
17,413
700
-
7,045
Fund balances
Restricted
Committed
4,470
-
52,537
-
2,384
-
Total fund balances
4,470
52,537
2,384
-
Total liabilities and fund balances
$
114
21,883
$
53,237
$
2,384
$
7,045
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Drug
Forfeiture
Prosecutor
$
Michigan
Justice
Training
16,849
$
-
Concealed
Pistol
Licenses
18,378
$
-
OHSP
Traffic
Enforcement
13,571
$
-
-
Department
of Human
Services
$
24,772
Home Tax
Exemption
Audit
Veterans
Trust
92,833
$
-
726
$
-
14,310
-
$
16,849
$
18,378
$
13,571
$
24,772
$
92,833
$
726
$
14,310
$
-
$
1,200
-
$
-
$
22,977
385
1,253
157
$
592
-
$
-
$
4,877
-
$
-
1,200
-
24,772
592
-
4,877
16,849
-
17,178
-
13,571
-
92,241
726
-
9,433
16,849
17,178
13,571
-
92,241
726
9,433
16,849
$
18,378
$
13,571
$
24,772
$
92,833
$
726
$
14,310
continued…
115
EATON COUNTY, MICHIGAN
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Local
Corrections
Officer
Training
Assets
Cash and cash equivalents
Receivables:
Property taxes
Accounts receivable, net
Due from other governmental units
$
LEAD
Drug
Testing
192,720
$
-
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable
Accrued liabilities
Due to other governmental units
Due to other funds
Juvenile
Millage
1,839
$
-
449,028
Jail
Millage II
$
295
-
81,554
592
2,922
$
192,720
$
1,839
$
449,323
$
85,068
$
-
$
-
$
25,038
-
$
2,979
25,883
5,089
Total liabilities
-
-
25,038
33,951
Fund balances
Restricted
Committed
192,720
-
1,839
424,285
-
51,117
-
Total fund balances
192,720
1,839
424,285
51,117
Total liabilities and fund balances
$
116
192,720
$
1,839
$
449,323
$
85,068
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special
Revenue Funds
Building
Authority
Health
Clinic
Veterans'
Court
Grant
$
-
Capital
Projects Fund
Debt Service Funds
$
29,869
Building
Authority
Jail
-
$
175
-
$
-
Juvenile
Court
Trust
Dental
Clinic
Construction
Dental
Clinic
-
Permanent Trust Funds
48,439
$
-
-
$
-
Youth
Facility
Trust
9,905
$
-
Lincoln
Brick
Trust
3,791
$
-
69,859
-
$
29,869
$
175
$
-
$
48,439
$
-
$
9,905
$
3,791
$
69,859
$
26,312
2,886
669
2
-
$
175
-
$
-
$
-
$
-
$
25
-
$
-
$
-
$
29,869
175
-
-
-
25
-
-
-
-
-
48,439
-
-
9,880
-
3,791
-
69,859
-
-
-
-
48,439
-
9,880
3,791
69,859
29,869
$
175
$
-
$
48,439
$
-
$
9,905
$
3,791
$
69,859
continued…
117
EATON COUNTY, MICHIGAN
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Permanent Trust Funds
Animal
Control
Donations
Trust
Sheriff
Donations
Trust
Assets
Cash and cash equivalents
Receivables:
Property taxes
Accounts receivable, net
Due from other governmental units
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable
Accrued liabilities
Due to other governmental units
Due to other funds
$
3,112
$
-
Prosecuting
Attorney
Donations
Trust
3,281
$
-
EATON
Trust
44
$
-
Total
595
$
-
2,110,497
887
6,075
194,526
$
3,112
$
3,281
$
44
$
595
$
2,311,985
$
-
$
-
$
-
$
-
$
126,095
177,210
42,476
4,879
7,890
Total liabilities
-
-
-
-
358,550
Fund balances
Restricted
Committed
3,112
-
3,281
-
44
-
595
-
1,506,480
446,955
Total fund balances
3,112
3,281
44
595
1,953,435
Total liabilities and fund balances
$
3,112
$
3,281
$
44
$
595
$
2,311,985
concluded
118
This page intentionally left blank.
119
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
Sheriff
Road
Crew
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Solid
Waste
Ordinance
-
$
Swift
and Sure
Sanctions
-
$
CDBG
Housing
Grant
-
$
-
44,250
-
11,500
289,546
15,000
87,936
-
146,959
34,457
-
44,250
316,046
87,936
181,416
65,277
-
336,460
-
87,936
-
150,182
-
-
-
-
-
65,277
336,460
87,936
150,182
(21,027)
(20,414)
-
31,234
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
25,110
-
-
-
32,133
-
Total other financing sources (uses)
25,110
-
-
32,133
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
120
4,083
(20,414)
-
63,367
14,827
213,113
-
51,643
18,910
$
192,699
$
-
$
115,010
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
Construction
Code
Enforcement
$
$
396,036
Remonumentation
Grant
$
Register
of Deeds
Technology
-
$
Criminal
Property
Forfeiture
-
$
Drug Law
Forfeiture
-
$
S.T.O.P.
Grant
-
$
Drug Court III Circuit Court
-
$
-
9,970
3,011
200
447
86,310
17,671
-
91,375
20
-
-
500
-
55,354
-
84,750
23,760
-
409,664
103,981
91,395
-
500
55,354
108,510
275,135
57,043
103,981
-
24,906
-
-
4,560
-
93,128
-
108,510
-
-
-
-
-
-
-
-
332,178
103,981
24,906
-
4,560
93,128
108,510
77,486
-
66,489
-
(4,060)
(37,774)
-
-
-
(82,202)
-
-
-
37,774
-
-
-
-
(82,202)
-
-
37,774
-
77,486
-
(15,713)
-
(4,060)
-
-
321,085
5,400
7,166
-
24,228
398,571
$
5,400
192,005
$
176,292
868
$
868
$
3,106
$
-
$
24,228
continued…
121
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
Community
Corrections
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
Property
Forfeiture
Prosecutor
Domestic
Preparedness
-
$
-
$
Bureau of
Justice
LLEBG
-
$
-
142,796
-
47,606
-
-
20,050
-
142,796
47,606
-
20,050
142,796
-
47,606
-
-
20,050
-
-
-
-
-
142,796
47,606
-
20,050
-
-
-
-
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
3,000
-
-
-
-
Total other financing sources (uses)
3,000
-
-
-
Net change in fund balances
3,000
-
-
-
Fund balances, beginning of year
1,470
52,537
2,384
-
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Fund balances, end of year
$
122
4,470
$
52,537
$
2,384
$
-
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
Drug
Forfeiture
Prosecutor
$
Michigan
Justice
Training
-
$
-
$
OHSP
Traffic
Enforcement
13,571
$
-
Department
of Human
Services
$
Home Tax
Exemption
Audit
Veterans
Trust
-
$
-
$
-
3,318
-
13,471
-
-
83,800
11,560
-
232
-
13,080
-
4,839
-
3,318
13,471
13,571
95,360
232
13,080
4,839
973
-
15,464
-
-
95,360
-
4,212
-
16,474
-
3,117
-
-
-
-
-
-
-
-
973
15,464
-
95,360
4,212
16,474
3,117
13,571
-
(3,980)
(3,394)
1,722
2,345
$
Concealed
Pistol
Licenses
(1,993)
-
-
(13,710)
-
-
14,000
-
-
(7,118)
-
-
-
(13,710)
-
14,000
-
(7,118)
(139)
-
10,020
(3,394)
(5,396)
-
82,221
4,120
14,829
2,345
(1,993)
14,504
19,171
16,849
$
17,178
13,710
$
13,571
$
-
$
92,241
$
726
$
9,433
continued…
123
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
Local
Corrections
Officer
Training
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
LEAD
Drug
Testing
-
$
Juvenile
Millage
-
$
Jail
Millage II
1,139,354
-
$
2,278,844
-
26,800
-
179
-
-
2,662
15,000
26,800
179
1,139,354
2,296,506
10,769
-
-
176,381
-
1,125,650
427,062
-
-
-
27,833
7,518
Total expenditures
10,769
-
176,381
1,588,063
Revenues over (under) expenditures
16,031
179
962,973
708,443
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
(1,038,577)
-
(1,205,438)
427,062
Total other financing sources (uses)
-
-
(1,038,577)
(778,376)
16,031
179
(75,604)
(69,933)
176,689
1,660
499,889
121,050
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
124
192,720
$
1,839
$
424,285
$
51,117
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special
Revenue Funds
Building
Authority
Health
Clinic
Veterans'
Court
Grant
$
$
-
Capital
Projects Fund
Debt Service Funds
$
Building
Authority
Jail
-
$
$
Juvenile
Court
Trust
Dental
Clinic
Construction
Dental
Clinic
-
Permanent Trust Funds
-
$
-
$
Youth
Facility
Trust
-
$
Lincoln
Brick
Trust
-
$
-
39,945
-
-
-
70,320
-
(24)
6,243
12
14,162
39,945
-
-
70,320
-
(24)
6,243
14,174
39,945
-
-
-
-
-
413
-
6,941
-
544
-
-
-
670,000
535,438
35,000
30,420
-
-
-
-
39,945
-
1,205,438
65,420
-
413
6,941
544
-
-
(1,205,438)
4,900
-
(437)
-
-
1,205,438
-
246
-
(246)
-
-
-
(12,749)
-
-
-
1,205,438
246
(246)
-
-
(12,749)
-
-
-
5,146
(246)
-
-
-
43,293
246
-
$
-
$
-
$
48,439
$
-
(698)
(437)
(698)
10,317
$
9,880
13,630
881
4,489
$
3,791
68,978
$
69,859
continued…
125
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Permanent Trust Funds
Animal
Control
Donations
Trust
Sheriff
Donations
Trust
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rents
Other
$
-
$
Prosecuting
Attorney
Donations
Trust
-
$
EATON
Trust
-
$
Total
-
$
3,418,198
409,607
3,612
646
-
-
824,951
21,470
542,609
4,018
4,871
125,406
3,612
646
-
-
5,351,130
719
-
-
-
-
108,510
132,004
2,201,030
507,328
8,617
484,105
-
-
-
-
732,833
573,376
719
-
-
-
4,747,803
2,893
646
-
-
603,327
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
-
-
1,317,701
(2,360,040)
427,062
Total other financing sources (uses)
-
-
-
-
(615,277)
2,893
646
-
-
(11,950)
219
2,635
44
595
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Other
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
3,112
$
3,281
$
44
$
595
1,965,385
$
1,953,435
concluded
126
This page intentionally left blank.
127
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Sheriff Road Crew
Final
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
$
Actual
-
$
Solid Waste Ordinance
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
59,500
-
44,250
-
(15,250)
-
11,500
253,751
15,000
11,500
289,546
15,000
35,795
-
59,500
44,250
(15,250)
280,251
316,046
35,795
84,610
-
65,277
-
(19,333)
-
340,304
-
336,460
-
-
-
-
-
(3,844)
-
84,610
65,277
(19,333)
340,304
336,460
(3,844)
(25,110)
(21,027)
4,083
(60,053)
(20,414)
39,639
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
25,110
-
25,110
-
-
-
-
-
Total other financing sources (uses)
25,110
25,110
-
-
-
-
-
4,083
4,083
14,827
14,827
-
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
14,827
$
18,910
128
-
$
4,083
$
(60,053)
(20,414)
213,113
213,113
153,060
$
192,699
39,639
$
39,639
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Swift and Sure Sanctions
Final
Budget
$
$
Actual
-
$
CDBG Housing Grant
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual
-
$
Construction Code Enforcement
Actual Over
(Under) Final
Budget
-
$
-
187,474
-
87,936
-
(99,538)
-
160,000
12,200
-
146,959
34,457
-
(13,041)
22,257
-
187,474
87,936
(99,538)
172,200
181,416
187,474
-
87,936
-
(99,538)
-
204,333
-
150,182
-
-
-
-
187,474
87,936
-
-
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
331,000
$
396,036
$
65,036
4,800
-
9,970
3,011
200
447
9,216
335,800
409,664
73,864
278,731
71,000
275,135
57,043
(3,596)
(13,957)
-
(54,151)
-
-
-
204,333
150,182
(54,151)
349,731
332,178
(17,553)
-
(32,133)
31,234
63,367
(13,931)
77,486
91,417
-
-
32,133
-
32,133
-
-
-
-
-
-
-
-
32,133
32,133
-
-
-
-
-
-
-
-
63,367
63,367
(13,931)
77,486
91,417
-
-
-
51,643
51,643
-
321,085
321,085
-
-
$
-
(99,538)
$
-
$
51,643
$
115,010
$
63,367
$
307,154
$
398,571
9,970
(1,789)
200
447
-
$
91,417
continued…
129
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Remonumentation Grant
Final
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
$
Actual
-
$
Register of Deeds Technology
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
81,482
22,500
-
86,310
17,671
-
4,828
(4,829)
-
105,000
-
91,375
20
-
(13,625)
20
-
103,982
103,981
(1)
105,000
91,395
(13,605)
103,982
-
103,981
-
(1)
-
27,546
-
24,906
-
(2,640)
-
-
-
-
-
103,982
103,981
(1)
27,546
24,906
(2,640)
Revenues over (under) expenditures
-
-
-
77,454
66,489
(10,965)
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
-
(82,202)
-
(82,202)
-
-
Total other financing sources (uses)
-
-
-
(82,202)
(82,202)
-
Net change in fund balances
-
-
-
(4,748)
(15,713)
5,400
5,400
-
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Fund balances, beginning of year
Fund balances, end of year
$
5,400
$
5,400
130
-
$
-
192,005
$
187,257
-
(10,965)
192,005
$
176,292
$
(10,965)
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Criminal Property Forfeiture
Final
Budget
$
$
Actual
-
$
Drug Law Forfeiture
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual
-
$
S.T.O.P. Grant
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
1,000
-
-
(1,000)
-
10,000
-
500
-
(9,500)
-
55,354
-
55,354
-
-
1,000
-
(1,000)
10,000
500
(9,500)
55,354
55,354
-
1,000
-
-
(1,000)
-
10,000
-
4,560
-
(5,440)
-
100,568
-
93,128
-
-
-
-
-
-
-
1,000
-
10,000
4,560
(5,440)
100,568
93,128
(7,440)
-
-
-
-
(4,060)
(4,060)
(45,214)
(37,774)
7,440
-
-
-
-
-
-
45,214
-
37,774
-
(7,440)
-
-
-
-
-
-
-
45,214
37,774
(7,440)
-
-
-
-
-
-
-
868
868
-
7,166
-
-
-
868
$
868
(1,000)
$
-
$
7,166
-
(4,060)
(4,060)
7,166
$
3,106
$
(4,060)
$
-
$
-
(7,440)
-
$
continued…
131
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Drug Court III - Circuit Court
Final
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
$
Actual
-
$
Community Corrections
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
85,000
23,909
-
84,750
23,760
-
(250)
(149)
-
181,126
-
142,796
-
(38,330)
-
108,909
108,510
(399)
181,126
142,796
(38,330)
108,909
-
108,510
-
(399)
-
184,126
-
142,796
-
(41,330)
-
-
-
-
-
108,909
108,510
184,126
142,796
Revenues over (under) expenditures
-
-
-
(3,000)
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
-
Total other financing sources (uses)
-
-
Net change in fund balances
24,228
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Fund balances, beginning of year
Fund balances, end of year
$
24,228
$
(399)
(41,330)
-
3,000
3,000
-
3,000
-
-
-
3,000
3,000
-
-
-
-
3,000
3,000
24,228
-
1,470
1,470
-
24,228
132
$
-
$
1,470
$
4,470
$
3,000
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Domestic Preparedness
Final
Budget
$
$
Actual
-
$
Property Forfeiture Prosecutor
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual
-
$
Bureau of Justice LLEBG
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
122,500
-
47,606
-
(74,894)
-
-
-
-
23,000
-
20,050
-
(2,950)
-
122,500
47,606
(74,894)
-
-
-
23,000
20,050
(2,950)
72,500
50,000
47,606
-
(24,894)
(50,000)
500
-
-
23,000
-
20,050
-
(2,950)
-
-
-
-
-
-
-
122,500
47,606
500
-
(500)
23,000
20,050
-
-
-
(500)
-
500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500
-
-
-
52,537
52,537
-
2,384
-
-
-
-
52,537
$
52,537
(74,894)
$
-
(500)
2,384
$
1,884
$
2,384
(500)
-
$
500
$
-
$
-
(2,950)
$
continued…
133
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Drug Forfeiture Prosecutor
Final
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
$
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Actual
-
$
Michigan Justice Training
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
2,500
-
3,318
-
818
-
15,464
-
13,471
-
(1,993)
-
2,500
3,318
818
15,464
13,471
(1,993)
6,000
-
973
-
15,464
-
15,464
-
-
-
-
-
-
-
6,000
973
15,464
15,464
-
(3,500)
(5,027)
(5,027)
2,345
5,845
-
(1,993)
(1,993)
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
-
-
-
-
Total other financing sources (uses)
-
-
-
-
-
-
Net change in fund balances
(3,500)
2,345
5,845
-
Fund balances, beginning of year
14,504
14,504
-
19,171
Fund balances, end of year
$
11,004
$
16,849
134
$
5,845
$
19,171
(1,993)
(1,993)
19,171
$
17,178
$
(1,993)
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Concealed Pistol Licenses
Final
Budget
$
Actual
-
$
13,571
$
13,571
Final
Budget
$
Actual
-
$
Department of Human Services
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
-
-
-
85,000
11,585
-
83,800
11,560
-
(1,200)
(25)
-
120,000
-
232
-
(119,768)
-
-
13,571
13,571
96,585
95,360
(1,225)
120,000
232
(119,768)
-
-
-
96,585
-
95,360
-
(1,225)
-
134,000
-
4,212
-
(129,788)
-
-
-
-
-
-
-
-
-
-
-
96,585
95,360
134,000
4,212
(129,788)
-
13,571
13,571
-
-
-
(14,000)
(3,980)
10,020
-
(13,710)
-
(13,710)
-
-
-
-
14,000
-
14,000
-
-
-
(13,710)
(13,710)
-
-
-
14,000
14,000
-
-
(139)
(139)
-
-
-
-
10,020
10,020
-
-
-
82,221
82,221
-
13,710
$
OHSP Traffic Enforcement
Actual Over
(Under) Final
Budget
13,710
13,710
$
13,571
$
(139)
$
-
$
-
(1,225)
$
-
$
82,221
$
92,241
-
$
10,020
continued…
135
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Veterans Trust
Final
Budget
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
$
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Actual
-
$
Home Tax Exemption Audit
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
40,000
-
13,080
-
(26,920)
-
8,000
-
4,839
-
(3,161)
-
40,000
13,080
(26,920)
8,000
4,839
(3,161)
40,000
-
16,474
-
(23,526)
-
3,117
-
3,117
-
-
-
-
-
-
-
40,000
16,474
(23,526)
3,117
3,117
-
(3,394)
(3,394)
4,883
1,722
-
Revenues over (under) expenditures
-
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
-
-
-
(7,118)
-
(7,118)
-
-
Total other financing sources (uses)
-
-
-
(7,118)
(7,118)
-
Net change in fund balances
-
(2,235)
(5,396)
14,829
14,829
Fund balances, beginning of year
Fund balances, end of year
(3,394)
4,120
$
4,120
(3,394)
4,120
$
726
136
$
(3,394)
$
12,594
$
9,433
(3,161)
(3,161)
$
(3,161)
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Local Corrections Officer Training
Final
Budget
$
$
Actual
-
$
LEAD Drug Testing
Actual Over
(Under) Final
Budget
-
$
-
Final
Budget
$
Actual
-
$
Juvenile Millage
Actual Over
(Under) Final
Budget
-
$
Final
Budget
Actual
Actual Over
(Under) Final
Budget
-
$ 2,309,976
-
$ 1,139,354
-
$ (1,170,622)
-
30,000
-
26,800
-
(3,200)
-
-
179
-
179
-
2,000
-
-
(2,000)
-
30,000
26,800
(3,200)
-
179
179
2,311,976
1,139,354
(1,172,622)
30,000
-
10,769
-
(19,231)
-
-
-
-
1,199,300
-
176,381
-
(1,022,919)
-
-
-
-
-
-
7,518
-
-
(7,518)
-
30,000
10,769
(19,231)
-
-
-
1,206,818
176,381
(1,030,437)
-
16,031
16,031
-
179
179
1,105,158
962,973
(142,185)
-
-
-
-
-
-
(1,205,438)
-
(1,038,577)
-
166,861
-
-
-
-
-
-
-
(1,205,438)
(1,038,577)
166,861
-
16,031
16,031
-
179
179
(100,280)
(75,604)
24,676
176,689
176,689
-
1,660
1,660
-
499,889
499,889
176,689
$
192,720
-
$
16,031
$
1,660
$
1,839
$
179
$
399,609
$
424,285
$
24,676
continued…
137
EATON COUNTY, MICHIGAN
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Nonmajor Special Revenue Funds
For the Year Ended September 30, 2015
Jail Millage II
Revenues
Property taxes
Licenses and permits
Intergovernmental:
Federal/state
Local
Charges for services
Fines and forfeitures
Interest and rent
Other
Final
Budget
Actual
$ 2,309,976
-
$ 2,278,844
-
2,000
-
2,662
15,000
2,311,976
Veterans' Court Grant
Actual Over
(Under) Final
Budget
$
(31,132)
-
Final
Budget
$
Actual Over
(Under) Final
Budget
Actual
-
$
-
$
-
662
15,000
40,000
-
39,945
-
(55)
-
2,296,506
(15,470)
40,000
39,945
(55)
1,199,300
-
1,125,650
427,062
(73,650)
427,062
40,000
-
39,945
-
(55)
-
27,834
7,518
27,833
7,518
(1)
-
-
-
Total expenditures
1,234,652
1,588,063
40,000
39,945
Revenues over (under) expenditures
1,077,324
708,443
(368,881)
-
-
-
Total revenues
Expenditures
Current:
Judicial
General government
Public safety
Health and social services
Capital outlay
Debt service:
Principal
Interest and fiscal charges
353,411
(55)
Other financing sources (uses)
Transfers in
Transfers out
Issuance of long-term debt
(1,205,438)
-
(1,205,438)
427,062
427,062
-
-
-
Total other financing sources (uses)
(1,205,438)
(778,376)
427,062
-
-
-
(128,114)
(69,933)
58,181
-
-
-
121,050
121,050
-
-
-
-
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
(7,064)
$
51,117
$
58,181
$
-
$
-
$
concluded
138
EATON COUNTY, MICHIGAN
Combining Statement of Net Position
Nonmajor Enterprise Funds
September 30, 2015
Business-type Activities - Enterprise Funds
Jail
Commissary
Assets
Current assets:
Cash and cash equivalents
Taxes receivable
Accounts receivable
Inventories
$
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Due to other governments
Total liabilities
Net position
Unrestricted
$
139
206,184
10,385
16,790
Foreclosing
Government
Unit
$
15,704
23,273
78,835
-
Total
$
221,888
23,273
89,220
16,790
233,359
117,812
351,171
585
130
390
17,376
938
211
-
17,376
1,523
341
390
1,105
18,525
19,630
232,254
$
99,287
$
331,541
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Nonmajor Enterprise Funds
For the Year Ended September 30, 2015
Business-type Activities - Enterprise Funds
Jail
Commissary
Operating revenues
Sales
Administrative fees/penalties
$
69,489
-
Foreclosing
Government
Unit
$
84,708
90,863
Total
$
154,197
90,863
Total operating revenues
69,489
175,571
245,060
Operating expenses
Personal services and benefits
Contractual services
24,105
7,523
42,505
33,779
66,610
41,302
Total operating expenses
31,628
76,284
107,912
Change in net position
37,861
99,287
137,148
194,393
-
194,393
Net position, beginning of year
Net position, end of year
$
140
232,254
$
99,287
$
331,541
EATON COUNTY, MICHIGAN
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2015
Business-type Activities - Enterprise Funds
Jail
Commissary
Cash flows from operating activities
Cash received from customers
Cash paid to/for employees
Cash paid to suppliers
$
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Reconciliation of operating income to net
cash provided by operating activities
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Change in assets and liabilities:
Taxes receivable
Accounts receivable
Inventories
Accounts payable
Accrued liabilities
Due to other funds
Due to other governments
Net cash provided by operating activities
$
74,355
(41,567)
(17,084)
Total
$
139,472
(65,572)
(30,516)
27,680
15,704
43,384
178,504
-
178,504
$
206,184
$
15,704
$
221,888
$
37,861
$
99,287
$
137,148
(4,372)
(3,326)
100
27
(2,610)
$
141
65,117
(24,005)
(13,432)
Foreclosing
Government
Unit
27,680
(23,273)
(77,943)
16,484
938
211
$
15,704
(23,273)
(82,315)
(3,326)
16,484
1,038
238
(2,610)
$
43,384
EATON COUNTY, MICHIGAN
Combining Statement of Net Position
Internal Service Funds
September 30, 2015
Retirees
Health
Insurance
Assets
Current assets:
Cash and cash equivalents
Due from other funds
Prepaid items
$
Total assets
Workers'
Compensation
396,356
40,853
-
$
963,385
2,395
14,985
Health
Insurance
$
2,239,977
668,307
Liability
Insurance
$
1,445,883
-
437,209
980,765
2,908,284
1,445,883
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
-
12,784
90,321
920,563
753,030
Total liabilities
-
103,105
920,563
753,030
Net position
Unrestricted
$
437,209
142
$
877,660
$
1,987,721
$
692,853
Combining Statement of Net Position
Internal Service Funds
September 30, 2015
Life and
Disability
Unemployment
$
$
220,992
1,129
-
$
18,244
2,128
-
Retirement
Stabilization
$
260,279
79,720
-
Dental
Insurance
$
214,603
-
Total
$
5,759,719
126,225
683,292
222,121
20,372
339,999
214,603
6,569,236
-
2,290
203,181
12,175
-
24,959
1,969,385
-
2,290
203,181
12,175
1,994,344
222,121
$
18,082
$
136,818
$
202,428
143
$
4,574,892
EATON COUNTY, MICHIGAN
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2015
Retirees
Health
Insurance
Operating revenues
Charges for services
Other revenues
$
Workers'
Compensation
1,468,854
77,688
$
107,772
1,040
Health
Insurance
$
Liability
Insurance
5,198,916
-
$
1,086,129
-
Total operating revenues
1,546,542
108,812
5,198,916
1,086,129
Operating expenses
Personal services and benefits
Contractual services
Insurance and claims
3,998,916
23,998
1,532,497
16,625
95,162
2,250
5,872,989
10,696
1,295,254
Total operating expenses
5,555,411
111,787
5,875,239
1,305,950
Operating income (loss)
(4,008,869)
(2,975)
(676,323)
(219,821)
Nonoperating revenues
Interest income
Unrealized gain on investment
4
188,439
1,734
-
-
46,898
-
Total nonoperating revenues
188,443
1,734
-
46,898
Income (loss) before transfers
(3,820,426)
Transfers out
-
Change in net position
-
(3,820,426)
Net position, beginning of year
Net position, end of year
(1,241)
(1,241)
4,257,635
$
437,209
144
878,901
$
877,660
$
(676,323)
(172,923)
(600,000)
(100,000)
(1,276,323)
(272,923)
3,264,044
965,776
1,987,721
$
692,853
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2015
Life and
Disability
Unemployment
$
38,429
-
$
71,423
-
$
2,696,953
-
Dental
Insurance
$
Total
152,041
-
$
10,820,517
78,728
38,429
71,423
2,696,953
152,041
10,899,245
22,203
4,153
116,449
2,652,484
37,608
-
223,388
-
6,651,400
318,718
8,934,554
22,203
120,602
2,690,092
223,388
15,904,672
16,226
(49,179)
(71,347)
(5,005,427)
6,861
-
-
-
-
48,636
188,439
-
-
-
-
237,075
16,226
(49,179)
-
$
Retirement
Stabilization
-
16,226
(49,179)
205,895
67,261
222,121
6,861
$
18,082
(71,347)
-
-
6,861
129,957
$
136,818
(4,768,352)
$
(700,000)
(71,347)
(5,468,352)
273,775
10,043,244
202,428
145
$
4,574,892
EATON COUNTY, MICHIGAN
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2015
Retirees
Health
Insurance
Cash flows from operating activities
Cash received from interfund services
Cash paid to/for employees
Cash paid to suppliers
$
Net cash provided by (used in)
operating activities
Workers'
Compensation
1,535,888
(5,504,780)
(23,998)
$
(3,992,890)
109,043
(81,483)
(19,825)
Health
Insurance
$
Liability
Insurance
5,198,916
(5,974,051)
$
1,086,129
(802,024)
7,735
(775,135)
284,105
-
-
(600,000)
(100,000)
Cash flows from investing activities
Sale of investments
Interest received
3,998,641
4
1,734
-
46,898
Net cash provided by investing activities
3,998,645
1,734
-
46,898
Net change in cash and cash equivalents
5,755
9,469
390,601
953,916
Cash flows from noncapital financing activities
Transfers out
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash provided by (used in)
operating activities:
Change in assets and liabilities:
Accounts receivable
Due from other funds
Prepaid items
Accounts payable
Accrued liabilities
Net cash provided by (used in)
operating activities
$
$
396,356
(4,008,869)
$
$
26,633
(10,654)
-
$
(3,992,890)
146
963,385
(2,975)
(1,375,135)
3,615,112
$
$
231
(14,985)
11,785
13,679
$
7,735
231,003
2,239,977
(676,323)
1,214,880
$
$
(174,643)
75,831
$
(775,135)
1,445,883
(219,821)
503,926
$
284,105
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2015
Life and
Disability
Unemployment
$
39,723
(22,202)
-
$
17,521
Retirement
Stabilization
71,136
(117,107)
(4,153)
$
(50,124)
2,686,009
(2,449,303)
(37,608)
Dental
Insurance
$
199,098
Total
152,041
(223,765)
$
(71,724)
10,878,885
(8,174,875)
(7,085,424)
(4,381,414)
-
-
-
-
(700,000)
-
-
-
-
3,998,641
48,636
-
-
-
-
4,047,277
17,521
(50,124)
199,098
(71,724)
(1,034,137)
203,471
68,368
61,181
286,327
6,793,856
$
220,992
$
18,244
$
260,279
$
214,603
$
5,759,719
$
16,226
$
(49,179)
$
6,861
$
(71,347)
$
(5,005,427)
1,295
-
$
17,521
(287)
(658)
$
(50,124)
(10,944)
203,181
$
199,098
(377)
-
$
(71,724)
147
26,633
(20,359)
(189,628)
11,408
795,959
$
(4,381,414)
EATON COUNTY, MICHIGAN
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2015
Trust and
Agency
Inmate
Trust
Account
District
Court Bond
Library
Assets
Cash and cash equivalents
Due from other governments
$
5,423,111
60,932
$
127,119
-
$
162,583
-
$
9,702
-
Total assets
$
5,484,043
$
127,119
$
162,583
$
9,702
Liabilities
Undistributed receipts
$
5,484,043
$
127,119
$
162,583
$
9,702
148
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2015
Property
Forfeiture
Trust
Total
$
6,696
-
$
5,729,211
60,932
$
6,696
$
5,790,143
$
6,696
$
5,790,143
149
EATON COUNTY, MICHIGAN
Statement of Net Position and Governmental Funds Balance Sheet
Board of Public Works Component Unit
September 30, 2015
Debt Service Funds
Grand
Ledge Water
System
Assets
Prepaid items
Leases receivable
$
Total assets
53,853
6,775,385
Liabilities
Unearned revenue
Long-term debt:
Due within one year
Due in more than one year
$
$
-
-
Total
$
53,853
6,775,385
-
-
6,829,238
-
-
-
-
$
6,829,238
$
-
$
-
$
6,829,238
$
53,853
$
-
$
-
$
53,853
Total liabilities
Deferred inflows of resources
Unavailable revenue - leases receivable
-
-
-
-
53,853
-
-
53,853
6,775,385
-
-
6,775,385
-
-
-
-
Fund balances
Unassigned
Total liabilities, deferred inflows of resources
and fund balances
Brookfield
Water/Sewer
Systems
6,829,238
Deferred outflows of resources
Deferred loss on refunding
Total assets and deferred outflows
of resources
Dimondale
Water/Sewer
Systems
$
6,829,238
Net position - unrestricted
150
$
-
$
-
$
6,829,238
Statement of Net Position and Governmental Funds Balance Sheet
Board of Public Works Component Unit
September 30, 2015
GASB 34
Adjustments
$
-
Statement of
Net Position
$
-
6,829,238
93,907
93,907
93,907
6,923,145
-
53,853
602,935
6,172,450
602,935
6,172,450
6,775,385
6,829,238
(6,775,385)
-
-
$
53,853
6,775,385
93,907
-
$
93,907
151
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152
EATON COUNTY, MICHIGAN
Reconciliation
Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Board of Public Works Component Unit
September 30, 2015
Total fund balances for governmental funds
$
-
Amounts reported for governmental activities in the Statement of Net Position
are different because:
The focus of governmental funds is on short-term financing. Accordingly, some assets will
not be available to pay for current period expenditures. Those assets (such as certain
receivables) are offset by deferred inflows in the governmental funds, and
thus are not included in fund balance.
Leases receivable
6,775,385
Certain liabilities, such as bonds payable, are not due and payable in the current
period, and therefore are not reported in the funds.
Bonds payable
Unamortized bond premium
Unamortized deferred loss on refunding
Net position of governmental activities
(6,700,000)
(75,385)
93,907
$
153
93,907
EATON COUNTY, MICHIGAN
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Board of Public Works Component Unit
For the Year Ended September 30, 2015
Debt Service Funds
Grand
Ledge Water
System
Revenues
Intergovernmental - local
$
574,465
Dimondale
Water/Sewer
Systems
Brookfield
Water/Sewer
Systems
$
$
313,425
168,600
Total
$
1,056,490
Expenditures / expenses
Debt service:
Principal
Interest and fiscal charges
450,000
124,465
300,000
13,425
140,000
28,600
890,000
166,490
Total expenditures/expenses
574,465
313,425
168,600
1,056,490
Net changes in fund balances
-
-
-
-
Change in net position
-
-
-
-
Fund balances / net position,
beginning of year
-
-
-
-
Fund balances / net position,
end of year
$
-
154
$
-
$
-
$
-
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Board of Public Works Component Unit
For the Year Ended September 30, 2015
GASB 34
Adjustments
$
(903,405)
Statement of
Net Position
$
(890,000)
(3,520)
162,970
(893,520)
162,970
-
-
(9,885)
(9,885)
103,792
$
153,085
93,907
103,792
$
93,907
155
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156
EATON COUNTY, MICHIGAN
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
Board of Public Works Component Unit
For the Year Ended September 30, 2015
Net change in fund balance - total governmental funds
$
-
Amounts reported for governmental activities in the Statement of Activities
are different because:
Amounts received from local governments for the payment of bond
principal is recorded in the funds as revenue, but eliminated for the
Statement of Activities.
Collections attributable to bond principal and accrued interest
(903,405)
Bond proceeds provide current financial resources to governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
Statement of Net Position. Repayment of bond principal is an expenditure in
governmental funds, but the repayment reduces long-term liabilities
in the Statement of Net Position.
Repayment of debt principal
890,000
Certain expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore are
not reported as expenditures in the funds.
Change in accrual for interest payable
Amortization of bond premium
Amortization of deferred loss on refunding
Change in net position of governmental activities
5,469
7,936
(9,885)
$
157
(9,885)
EATON COUNTY, MICHIGAN
Statement of Net Position and Governmental Funds Balance Sheet
Drainage Districts Component Unit
September 30, 2015
Debt
Service Fund
Capital Projects Funds
Regular
Drain
Assets
Cash and cash equivalents
Special assessments receivable
Due from other funds
Prepaid items
Capital assets being depreciated, net
$
Total assets
Deferred outflows of resources
Deferred loss on refunding
Total assets and deferred outflows
of resources
Liabilities
Accounts payable
Interest payable
Due to other funds
Advances from primary government
Long-term debt:
Due within one year
Due in more than one year
906,479
27,621,429
6,139
25,750
-
$
Drain
Revolving
8,465,526
34,000
-
$
Narrow Lake
Level
11,224
48,776
-
$
10,999
-
Lacey Lake
Level
$
351
-
28,559,797
8,499,526
60,000
10,999
351
-
-
-
-
-
$
28,559,797
$
8,499,526
$
60,000
$
10,999
$
351
$
37,115
-
$
205,429
51,800
-
$
60,000
$
-
$
-
Total liabilities
Deferred inflows of resources
Unavailable revenue special assessments
Fund balances
Unassigned
Total liabilities, deferred inflows
of resources and fund balances
Regular
Drain
$
-
-
-
-
-
37,115
257,229
60,000
-
-
27,601,770
-
-
-
-
920,912
8,242,297
-
10,999
351
28,559,797
$
8,499,526
Net position
Net investment in capital assets
Unrestricted
Total net position
158
$
60,000
$
10,999
$
351
Statement of Net Position and Governmental Funds Balance Sheet
Drainage Districts Component Unit
September 30, 2015
GASB 34
Adjustments
Total
$
9,394,579
27,621,429
88,915
25,750
-
$
(88,915)
74,091,228
Statement
of Net Position
$
9,394,579
27,621,429
25,750
74,091,228
37,130,673
74,002,313
111,132,986
-
317,719
317,719
$
37,130,673
74,320,032
111,450,705
$
205,429
88,915
60,000
$
318,276
(88,915)
-
205,429
318,276
60,000
-
3,066,497
25,214,366
3,066,497
25,214,366
354,344
28,510,224
28,864,568
27,601,770
(27,601,770)
-
9,174,559
(9,174,559)
-
37,130,673
46,128,084
36,458,053
$
82,586,137
46,128,084
36,458,053
$
82,586,137
159
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160
EATON COUNTY, MICHIGAN
Reconciliation
Fund Balances of Governmental Funds
to Net Position of Governmental Activities
Drainage Districts Component Unit
September 30, 2015
Total fund balances for governmental funds
$
9,174,559
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Capital assets being depreciated, net
74,091,228
Because the focus of governmental funds is on short-term financing, some
assets will not be available to pay for current expenditures. Those assets
(i.e. receivables) are offset by deferred inflows of resources in the governmental
funds and, therefore, not included in fund balance.
Deferred special assessments
27,601,770
Certain liabilities, such as bonds payable, are not due and payable in the current period,
and therefore are not reported in the funds.
Long-term debt
Unamortized premiums
Unamortized deferred loss on refunding
Interest payable
Net position of governmental activities
(27,720,642)
(560,221)
317,719
(318,276)
$
161
82,586,137
EATON COUNTY, MICHIGAN
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Drainage Districts Component Unit
For the Year Ended September 30, 2015
Debt
Service Fund
Capital Projects Funds
Regular
Drain
Revenues
Charges for services
Special assessments
Interest revenue
Miscellaneous
$
Total revenues
Regular
Drain
4,576,384
348
-
$
Drain
Revolving
3,444
392,644
48
$
Narrow Lake
Level
-
$
-
Lacey Lake
Level
$
-
4,576,732
396,136
-
-
-
-
-
-
-
-
Expenditures / expenses
Public works
Capital outlay - construction
and maintenance
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
-
1,373,627
-
-
-
3,322,543
947,960
144,376
-
-
-
-
Total expenditures / expenses
4,414,879
1,373,627
-
-
-
-
-
-
Revenues over (under)
expenditures/expenses
161,853
Other financing sources (uses)
Issuance of long-term refunding debt
Premium on issuance of long-term
refunding debt
Payment to refunding bond
escrow agent
(977,491)
14,415,000
-
-
-
-
618,175
-
-
-
-
(18,520,431)
-
-
-
-
Total other financing sources (uses)
(3,487,256)
-
-
-
-
Net changes in fund balances
(3,325,403)
-
-
-
Change in net position
Fund balances / net position,
beginning of year
Fund balances / net position,
end of year
$
(977,491)
-
-
-
-
-
4,246,315
9,219,788
-
10,999
351
920,912
$
8,242,297
162
$
-
$
10,999
$
351
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
Drainage Districts Component Unit
For the Year Ended September 30, 2015
GASB 34
Adjustments
Total
$
3,444
4,969,028
348
48
$
4,972,868
-
$
3,444
1,930,245
348
48
(3,038,783)
1,934,085
3,112,006
3,112,006
1,373,627
(39,080)
1,334,547
3,322,543
947,960
144,376
(3,322,543)
(199,722)
-
748,238
144,376
5,788,506
(449,339)
5,339,167
(815,638)
(2,589,444)
(3,405,082)
14,415,000
(14,415,000)
-
618,175
(618,175)
-
(18,520,431)
18,520,431
-
(3,487,256)
3,487,256
-
(4,302,894)
897,812
-
-
13,477,453
$
(3,038,783)
-
Statement
of Net Position
9,174,559
$
(17,004,444)
(3,405,082)
72,513,766
85,991,219
56,407,134
$
82,586,137
163
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164
EATON COUNTY, MICHIGAN
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
Drainage Districts Component Unit
For the Year Ended September 30, 2015
Net change in fund balance - total governmental funds
$
(4,302,894)
Amounts reported for governmental activities in the Statement of Activities
are different because:
Revenues in the Statement of Activities that do not provide current resources
are not reported as revenues in the funds, but rather are deferred to subsequent
fiscal years.
Change in deferred special assessments
(3,038,783)
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the costs of those assets is allocated over their
estimated useful lives as depreciation expense.
Purchases of capital assets
Depreciation expense
39,080
(3,112,006)
Bond proceeds provide current financial resources to the governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
Statement of Net Position. Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities
in the Statement of Net Position.
Issuance of long-term refunding debt
Premium on issuance of long-term refunding debt
Payment to refunding bond escrow agent
Principal payments on long-term debt
(14,415,000)
(618,175)
18,520,431
3,322,543
Certain expenses reported in the Statement of Activities do not require
the use of current financial resources and therefore are not reported
as expenditures in the funds.
Change in accrual for interest payable on long-term debt
Amortization of bond premium
Amortization of deferred loss on refunding
Change in net position of governmental activities
174,635
57,954
(32,867)
$
165
(3,405,082)
EATON COUNTY, MICHIGAN
Statement of Net Position and Governmental Funds Balance Sheet
District Health Department Component Unit
September 30, 2015
General
Fund
Assets
Cash and cash equivalents
Accounts receivable, net
Prepaid items
Capital assets being depreciated, net
$
Total assets
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Long-term debt:
Due within one year
Due in more than one year
Net pension liability
2,213,441
269,589
59,679
-
$
Statement
of Activities
79,447
$
2,213,441
269,589
59,679
79,447
2,542,709
79,447
2,622,156
-
647,542
647,542
$
2,542,709
726,989
3,269,698
$
163,256
223,916
50,460
-
163,256
223,916
50,460
-
43,682
241,152
4,294,691
43,682
241,152
4,294,691
437,632
4,579,525
5,017,157
Deferred outflows of resources
Deferred pension amounts
Total assets and deferred outflows of resources
GASB 34
Adjustments
Total liabilities
Fund balance
Nonspendable for prepaids
Restricted for immunizations
Unassigned
59,679
211,756
1,833,642
(59,679)
(211,756)
(1,833,642)
-
Total fund balance
2,105,077
(2,105,077)
-
Total liabilities and fund balance
$
2,542,709
Net position
Net investment in capital assets
Restricted for immunizations
Unrestricted (deficit)
79,447
211,756
(2,038,662)
Total net position
$
166
(1,747,459)
79,447
211,756
(2,038,662)
$
(1,747,459)
EATON COUNTY, MICHIGAN
Reconciliation
Fund Balances of Governmental Funds
to Net Position of Governmental Activities
District Health Department Component Unit
September 30, 2015
Total fund balances for governmental funds
$
2,105,077
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Capital assets being depreciated, net
79,447
Accrued vacation and sick time earned by eligible employees is not payable
in the current period and therefore is not reported in the funds. However,
these amounts are included in the Statement of Net Position.
(284,834)
Certain pension-related amounts, such as the net pension liability and deferred amounts,
are not due and payable in the current period or do not represent current financial
resources, and therefore are not reported in the funds.
Net pension liability
Deferred outflows related to the net pension liability
Net position of governmental activities
(4,294,691)
647,542
$
167
(1,747,459)
EATON COUNTY, MICHIGAN
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance
District Health Department Component Unit
For the Year Ended September 30, 2015
General
Fund
Revenues
Licenses and permits
Intergovernmental:
Federal/State
Local
Charges for services
Miscellaneous
$
GASB 34
Adjustments
180,950
$
Statement
of Activities
-
$
180,950
3,529,324
1,622,769
1,144,563
146,500
-
3,529,324
1,622,769
1,144,563
146,500
Total revenues
6,624,106
-
6,624,106
Expenditures / expenses
Health and social services
6,625,631
Net change in fund balance
(401,170)
(1,525)
Change in net position
-
Fund balance / net position, beginning of year
2,106,602
Fund balance / net position, end of year
$
168
2,105,077
6,224,461
1,525
-
399,645
399,645
(4,253,706)
$
(3,852,536)
(2,147,104)
$
(1,747,459)
EATON COUNTY, MICHIGAN
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
District Health Department Component Unit
For the Year Ended September 30, 2015
Net change in fund balance - total governmental funds
$
(1,525)
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the costs of those assets is allocated over their
estimated useful lives as depreciation expense.
Purchases of capital assets
Depreciation expense
79,205
(27,040)
Certain expenses reported in the Statement of Activities do not require
the use of current financial resources and therefore are not reported
as expenditures in the funds.
Change in accrual for accrued compensated absences
Change in the net pension liability and related deferred amounts
(3,391)
352,396
Change in net position of governmental activities
$
169
399,645
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170
SINGLE AUDIT ACT COMPLIANCE
171
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172
Rehmann Robson
2330 East Paris Ave. SE
Grand Rapids, MI 49546
Ph: 616.975.4100
Fx: 616.975.4400
rehmann.com
INDEPENDENT AUDITORS’ REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY OMB CIRCULAR A-133
March 9, 2016
To the Board of Commissioners
Eaton County, Michigan
Charlotte, Michigan
We have audited the financial statements of the governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of Eaton County, Michigan (the "County") as of and for the year ended September 30,
2015, and the related notes to the financial statements, which collectively comprise the County’s basic
financial statements. We issued our report thereon dated March 9, 2016, which contained unmodified
opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on
the financial statements that collectively comprise the basic financial statements. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as required
by OMB Circular A-133 and is not a required part of the basic financial statements. Such 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. The information has been
subjected to the auditing procedures applied in the audit of the 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 schedule of expenditure of
federal awards is fairly stated in all material respects in relation to the basic financial statements as a
whole.
173
EATON COUNTY, MICHIGAN
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2015
Federal Agency / Cluster / Program Title
CFDA
Passed
Number Through
U.S. Department of Agriculture
Child Nutrition Cluster:
School Breakfast Program
National School Lunch Program
Special Snack Program
Commodities (non-cash assistance)
Women, Infants and Children
Women, Infants and Children Breastfeeding
Women, Infants and Children Breastfeeding
Pass-through /
Grantor Number
10.553
10.555
10.555
10.555
MDE
MDE
MDE
MDE
230008001
230008001
230008001
230008001
10.557
10.557
10.557
MDCH
MDCH
MDCH
IW100342
IW100342
W500342
Total U.S. Department of Agriculture
Federal
Expenditures
$
15,185
23,866
3,921
4,129
47,101
487,915
5,450
16,249
509,614
556,715
U.S. Department of Housing and Urban Development
Community Development Block Grant
14.228
MSHDA
MSC-2011-0778-HOA
146,959
U.S. Department of Justice
Federal Surplus Property Transfer
Program (non-cash assistance)
16.578
Direct
n/a
19,763
Violence Against Women - S.T.O.P. Grant
16.588
MDHS
STOP-15-13001-1
55,354
State Criminal Alien Assistance Program
16.606
Direct
2014-H2949-MI-AP
2,662
Drug Court - Priority
Drug Court - Sobriety
Edward Byrne Memorial Justice Assistance - Vertical Drug
16.738
16.738
16.738
SCAO
SCAO
COL
SCAO-2014-622
SCAO-2015-3061
70901-4-14-B
Total U.S. Department of Justice
84,750
50,000
14,164
148,914
226,693
U.S. Department of Transportation
Alcohol Impaired Driving Countermeasures Incentive Grant
Strategic Traffic Enforcement Program
20.601
MSP
SCAO-15-626
33,800
20.614
MSP
PT-15-08
20,050
Total U.S. Department of Transportation
53,850
U.S. Environmental Protection Agency
Operator Certification
66.468
MDEQ
FS97548712
875
continued...
174
EATON COUNTY, MICHIGAN
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2015
Federal Agency / Cluster / Program Title
CFDA
Passed
Number Through
U.S. Department of Health and Human Services
Bioterrorism - Supplemental
Pass-through /
Grantor Number
Federal
Expenditures
93.069
MDCH
U90TP000528
Tuberculosis Control Program
93.116
MDCH
1U52P2004693
100
Immunization and Vaccine Program
Vaccines (non-cash assistance)
93.268
93.268
MDCH
MDCH
H23 CCH522556
n/a
75,124
253,878
329,002
Centers for Disease Control and Prevention:
Investigations and Technical Assistance
Investigations and Technical Assistance
93.283
93.283
MDCH
MDCH
U55DP003040
1U58DP003921
29,971
7,500
37,471
PPHF Capacity Building Assistance to Strengthen Public
Health Immunization
93.539
MDCH
H23 IP000752
8,361
Child Support Enforcement:
Incentive Payments
Friend of the Court
Prosecuting Attorney
93.563
93.563
93.563
MDHS
MDHS
MDHS
n/a
CSFOC13-23001
CSPA13-23002
Access and Visitation Programs
93.597
SCAO
n/a
1,112
Prevention and Public Health Funds
93.752
MDCH
1U58DP003921
27,025
Medical Assistance Program:
CSHC Medicaid Outreach
CSHC Outreach and Advocacy
Medicaid Outreach
93.778
93.778
93.778
MDCH
MDCH
MDCH
05 U05M15ADM
05 U05M15ADM
05 U05M15ADM
23,934
40,000
127,024
190,958
Outpatient/Intensive Outpatient
Women's Services
93.959
93.959
MSSAC
MSSAC
n/a
n/a
165,484
48,827
214,311
Preventative Health and Health Services Block Grant
93.991
MDCH
2B010T009028
27,096
Maternal and Child Health Services Block Grant
93.994
MDCH
B1MIMCHS
67,824
Total U.S. Department of Health and Human Services
$
127,266
151,943
543,173
121,102
816,218
1,846,744
continued...
175
EATON COUNTY, MICHIGAN
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2015
Federal Agency / Cluster / Program Title
CFDA
Passed
Number Through
U.S. Department of Homeland Security
Emergency Management Preparedness Grant
Homeland Security Grant Program
Pass-through /
Grantor Number
97.042
MSP
EMW-2015-EP-00029-S01
97.067
COL
n/a
Total U.S. Department of Homeland Security
Federal
Expenditures
$
37,852
47,606
85,458
Total Expenditures of Federal Awards
$ 2,917,294
concluded
See accompanying notes to the schedule of expenditures of federal awards.
176
EATON COUNTY, MICHIGAN
Notes to Schedule of Expenditures of Federal Awards
1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant
activity of Eaton County, Michigan (the “County”) under programs of the federal government for the year
ended September 30, 2015. The information in this schedule is presented in accordance with the
requirements of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the
operations of the County, it is not intended to and does not present the financial position, changes in net
position or cash flows of the County.
The County's reporting entity is defined in Note 1 of the financial statements. The County's financial
statement includes the operations of the Eaton County Road Commission discretely-presented component
unit, which received federal awards that are not included in the Schedule for the year ended September 30,
2015 as this entity was separately audited.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is
described in Note 1 to the County's financial statements. Such expenditures are recognized following the
cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Pass-through entity identifying numbers are presented where available.
3. PASS-THROUGH AGENCIES
The County receives certain federal grant as subawards from non-federal entities. Pass-through entities,
where applicable, have been identified in the Schedule with an abbreviation, defined as follows:
Pass-through
Agency
Abbreviation
COL
MDCH
MDE
MDEQ
MDHS
MSHDA
MSP
MSSAC
SCAO
Pass-through Agency Name
City of Lansing
Michigan Department of Community Health
Michigan Department of Education
Michigan Department of Environmental Quality
Michigan Department of Human Services
Michigan State Housing Development Authority
Michigan State Police
Mid-South Substance Abuse Commission
State Court Administrative Office
3. SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the County provided federal awards amounting to
$16,206 to subrecipients under the State Homeland Security Grant Programs (CFDA #97.067).
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178
Rehmann Robson
2330 East Paris Ave. SE
Grand Rapids, MI 49546
Ph: 616.975.4100
Fx: 616.975.4400
rehmann.com
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
March 9, 2016
To the Board of Commissioners
Eaton County, Michigan
Charlotte, Michigan
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, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of Eaton County, Michigan (the "County"), as of
and for the year ended September 30, 2015, and the related notes to the financial statements, which
collectively comprise the County’s basic financial statements, and have issued our report thereon dated
March 9, 2016. Our report includes a reference to other auditors who audited the financial statements
of the Eaton County Health and Rehabilitation Services Facility enterprise fund and the Eaton County
Road Commission discretely presented component unit, as described in our report on the County’s
financial statements. This report does not include the results of the other auditors’ testing of internal
control over financial reporting or compliance and other matters that are reported on separately by
those auditors. The financial statements of the Eaton County Health and Rehabilitation Services were
not audited in accordance with Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County’s internal
control over financial reporting (internal control) to determine the audit 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 County’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s
internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses
or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that
were not identified. However, as described in the accompanying schedule of findings and questioned
costs, we identified a certain deficiency in internal control over financial reporting that we consider to
be a material weakness and another deficiency that we consider to be a significant deficiency.
179
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 a
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. We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item 2015-001 to be a material weakness.
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. We consider the deficiency described in the accompanying schedule of findings and
questioned costs as item 2015-002 to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free
from 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.
Eaton County's Response to Findings
The County’s responses to the findings identified in our audit is described in the accompanying schedule
of findings and questioned costs. The County’s responses are not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
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
County’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 entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
180
Rehmann Robson
2330 East Paris Ave. SE
Grand Rapids, MI 49546
Ph: 616.975.4100
Fx: 616.975.4400
rehmann.com
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
March 9, 2016
To the Board of Commissioners
Eaton County, Michigan
Charlotte, Michigan
Report on Compliance for Each Major Federal Program
We have audited the compliance of Eaton County, Michigan (the "County") with the types of
compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the County’s major federal programs for the year ended September 30,
2015. The County’s major federal programs are identified in the summary of auditors’ results section of
the accompanying schedule of findings and questioned costs.
The County's basic financial statements include the operations of the Eaton County Road Commission,
which received federal awards which are not included in the schedule. Our audit, described below, did
not include the operations of the Eaton County Road Commission because that entity engaged other
auditors to perform their financial statement audit and did not meet the threshold for a single audit in
accordance with OMB Circular A-133.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Independent Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the County’s major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about the
County’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
181
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the County’s
compliance.
Opinion on Each Major Federal Program
In our opinion, the County complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended September 30, 2015.
Report on Internal Control Over Compliance
Management of the County is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the County’s internal control over compliance with
the types of requirements that could have a direct and material effect on each major federal program
to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and report on internal
control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the County’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe that a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
we identified a certain deficiency in internal control over compliance, as described in the
accompanying schedule of findings and questioned costs as item 2015-003 that we consider to be a
significant deficiency.
The County’s response to the internal control over compliance finding identified in our audit is
described in the accompanying schedule of findings and questioned costs. The County’s response was
not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on it.
182
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
183
EATON COUNTY, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2015
SECTION I - SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified?
X
yes
no
Significant deficiency(ies) identified?
X
yes
none reported
Noncompliance material to financial statements
noted?
yes
X
no
yes
X
no
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
X
Type of auditors’ report issued on compliance
for major programs:
yes
none reported
Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-133, Section 510(a)?
X
yes
no
Identification of major programs:
CFDA Number
Name of Federal Program or Cluster
10.557
93.268
93.563
Special Supplemental Nutrition Program for
Women, Infants, and Children
Immunizations and Vaccine Program
Child Support Enforcement
Dollar threshold used to distinguish
between Type A and Type B programs:
$
300,000
yes
Auditee qualified as low-risk auditee?
184
X
no
EATON COUNTY, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2015
SECTION II – FINANCIAL STATEMENT FINDINGS
2015-001 – Material Audit Adjustments
Finding Type. Material Weakness in Internal Control over Financial Reporting.
Criteria. Management is responsible for maintaining its accounting records in accordance with generally
accepted accounting principles (GAAP).
Condition. During our audit, we identified and proposed material adjustments (which were approved and
posted by management) to adjust the County’s general ledger to the appropriate balances. These adjustments
related to current and delinquent property tax revenue and receivables, bank reconciling items and the
establishment of a retiree healthcare trust fund.
Cause. This condition was the result of an oversight in recording interest and administrative fees receivable on
delinquent taxes and the establishment of the retiree healthcare trust. In addition, while bank reconciliations
were performed, the related general ledger accounts were not adjusted timely which resulted in the need for
material audit adjustments.
Effect. As a result of this condition, the County’s accounting records were initially misstated by amounts
material to the financial statements.
Recommendation. Management has already taken appropriate corrective action by reviewing and approving
the proposed audit adjustments. We recommend that management evaluate the delinquent tax revenue and
related accounts receivable at the end of fiscal year and post general ledger adjustments resulting from bank
reconciliations timely (as suggested by the State of Michigan, within six weeks of year-end).
View of Responsible Officials. Management agrees with the adjustments proposed by its auditors, and they
have been posted in the County's records.
185
EATON COUNTY, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2015
SECTION II – FINANCIAL STATEMENT FINDINGS
2015-002 – Capital Assets
Finding Type. Significant Deficiency in Internal Control over Financial Reporting.
Criteria. Management is responsible for maintaining its accounting records in accordance with generally
accepted accounting principles (GAAP), which includes the monitoring and adjustment of capital asset accounts
and activity.
Condition. The County brought to our attention certain balances in construction in progress for drain projects
that were completed but not transferred into service in a prior year. As a result, these assets did not have
related depreciation expense recognized for several years. In addition, management determined that $506,296
of construction in progress did not meet the requirements for capitalization and had to be written off in the
current year.
Cause. This condition was the result of an oversight in review of the drain construction in progress accounts.
Effect. As a result of this condition, the County’s accounting records were initially misstated. An adjustment
was posted in the current year to retroactively record depreciation expense for these previous year, and to
expense amounts that should not have been capitalized.
Recommendation. We recommend that management prepare a rollforward of construction in progress
balances by project in the future. The only projects with balances at the end of the year should be those with
active construction in progress. Completed projects (or discrete phases of projects) should be transferred out of
construction in progress and depreciated once placed in service. Any abandoned projects should be written off
when it is determined that the project will not be completed.
View of Responsible Officials. Management agrees with the adjustments proposed by its auditors, and they
have been posted in the County's records. The County has implemented new procedures for the calculation of
construction in progress for drain projects.
186
EATON COUNTY, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2015
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
2015-003 – Internal Controls over Grant Reporting
Finding Type. Significant Deficiency in Internal Control over Compliance (Reporting).
Programs. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); U.S. Department
of Agriculture; CFDA Number 10.557; Passed through Michigan Department of Community Health; Pass-through
award numbers IW100342 and W500342. Immunizations and Vaccine Program; U.S. Department of Health and
Human Services; CFDA Number 93.268; Passed through Michigan Department of Community Health; Pass-through
award number H23 CCH522556.
Criteria. Recipients of federal awards are required to report periodically on financial information, as specified
by the OMB Compliance Supplement or grant agreement. Reported information should be supported by the
entity’s accounting records, filed internally with supporting documents, and evidence review and approval by
an individual independent of the preparation.
Condition. The County filed the required quarterly reports on a timely basis. However, the reports were not
subject to independent review and approval.
Cause. This condition was caused by constraints in the finance department due to employee turnover.
Effect. As a result of this condition, the County was exposed to the increased risk that errors or omissions in
required reports could remain undetected.
Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no
unallowable expenditures were noted and the reports did not serve as a mechanism for reimbursement.
Recommendation. We recommend that the County review the controls over reporting of grant expenditures to
federal and pass-through grantor agencies. At a minimum, reports should be filed internally with supporting
documentation and be subject to an independent review and approval prior to submission. This review should
be documented with a signature/initials and date and be retained as evidence of the control process.
View of Responsible Officials. Management agrees with the recommendation and has established procedures
to document internal controls over grant reporting.

187
EATON COUNTY, MICHIGAN
Summary Schedule of Prior Audit Findings
For the Year Ended September 30, 2015
2014-001 – Material Audit Adjustments and Prior Period Adjustment
During the audit, there were identified and proposed material adjustments (which were approved and posted
by management) to adjust the County’s general ledger to the appropriate balances. These adjustments related
to current and delinquent property tax revenue and receivables, the effects of a capital lease asset acquisition,
and a prior period restatement to correct the previously reported net other postemployment benefit obligation.
This finding has been partially corrected as it relates to the prior period adjustment restatement. This finding
has been repeated for unrelated audit adjustments and is reported as item 2015-001.

188