15234 charter township of independence - .business-type activities, ... collectively comprise the

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  • Charter Township of Independence Oakland County, Michigan

    Financial Report

    with Supplemental Information

    December 31, 2007

  • Charter Township of Independence Contents

    Report Letter 1-2

    Managements Discussion and Analysis 3-7

    Basic Financial Statements

    Government-wide Financial Statements: Statement of Net Assets 8 Statement of Activities 9-10

    Fund Financial Statements: Governmental Funds: Balance Sheet 11-12 Reconciliation of Governmental Fund Balances to Net Assets 13 Statement of Revenue, Expenditures, and Changes in Fund Balances 14-15 Reconciliation of the Statement of Revenue, Expenditures, and

    Changes in Fund Balances of Governmental Funds to the Statement of Activities 16

    Proprietary Funds: Statement of Net Assets 17 Statement of Revenue, Expenses, and Changes in Net Assets 18 Statement of Cash Flows 19

    Fiduciary Funds - Statement of Assets and Liabilities 20

    Notes to Financial Statements 21-38

    Required Supplemental Information 39

    Budgetary Comparison Schedule - General Fund 40

    Budgetary Comparison Schedule - Major Special Revenue Funds 41

    Pension System Schedule of Funding Progress and Employer Contributions 42

    Note to Required Supplemental Information 43

  • Charter Township of Independence Contents (Continued)

    Other Supplemental Information 44

    Nonmajor Governmental Funds: Combining Balance Sheet 45-46 Combining Statement of Revenue, Expenditures, and Changes in Fund

    Balances (Deficit) 47-48

    Special Assessment Funds: Combining Balance Sheet 49-52 Combining Statement of Revenue, Expenditures, and Changes in Fund

    Balances (Deficit) 53-56

    Fiduciary Funds - Combining Statement of Assets and Liabilities 57

  • 1

    Independent Auditors Report

    To the Honorable Members of the Township Board Charter Township of Independence Oakland County, Michigan

    We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Charter Township of Independence (the Township) as of and for the year ended December 31, 2007, which collectively comprise the Townships basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Townships management. Our responsibility is to express opinions on these financial statements based on our audit.

    We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

    In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Charter Township of Independence as of December 31, 2007 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

    The managements discussion and analysis and the budgetary comparison schedules of the General Fund and Major Special Revenue Funds and the pension system schedule of funding progress and employer contributions identified in the table of contents are not required parts of the basic financial statements but are supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management, regarding the methods of measurement and presentation of the required supplemental information. However, we did not audit the information and express no opinion on it.

  • To the Honorable Members of the Township Board Charter Township of Independence Oakland County, Michigan

    2

    Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Charter Township of Independences basic financial statements. The accompanying other supplemental information, as identified in the table of contents, is presented for the purpose of additional analysis and is not a required part of the basic financial statements. The other supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

    June 13, 2008

  • Charter Township of Independence Managements Discussion and Analysis

    3

    Our discussion and analysis of the Charter Township of Independences (the Township) financial performance provides an overview of the Townships financial activities for the fiscal year ended December 31, 2007. Please read it in conjunction with the Townships financial statements.

    Using this Annual Report

    This annual report consists of a series of financial statements. The statement of net assets and the statement of activities provide information about the activities of the Township as a whole and present a longer-term view of the Townships finances. This longer-term view uses the accrual basis of accounting so that it can measure the cost of providing services during the current year and whether the taxpayers have funded the full cost of providing government services.

    The fund financial statements present a short-term view; they tell us how the taxpayers resources were spent during the year, as well as how much is available for future spending. Fund financial statements also report the Townships operations in more detail than the government-wide financial statements by providing information about the Townships most significant funds. The fiduciary fund statement provides financial information about activities for which the Township acts solely as a trustee or agent for the benefit of those outside of the government.

    Governmental Activities

    The following table shows, in a condensed format, the current years net assets and changes in net assets, compared to the prior year:

    Change from Prior Year2005 2006 2007 Amount Percent

    AssetsCurrent assets 22,295,804$ 24,289,434$ 22,788,364$ (1,501,070)$ (6.2) Capital assets 15,320,635 14,847,766 15,565,941 718,175 4.8

    Total assets 37,616,439 39,137,200 38,354,305 (782,895) (2.0)

    LiabilitiesCurrent liabilities 13,127,729 13,360,307 13,615,912 255,605 1.9 Long-term liabilities 885,225 1,193,196 823,484 (369,712) (31.0)

    Total liabilities 14,012,954 14,553,503 14,439,396 (114,107) (0.8)

    Net AssetsInvested in capital assets -

    Net of related debt 14,445,252 13,500,132 14,689,675 1,189,543 8.8 Restricted 5,965,369 7,217,041 5,279,489 (1,937,552) (26.8) Unrestricted 3,192,864 3,866,524 3,945,745 79,221 2.0

    Total net assets 23,603,485$ 24,583,697$ 23,914,909$ (668,788)$ (2.7)

  • Charter Township of Independence Managements Discussion and Analysis (Continued)

    4

    Change from Prior Year2005 2006 2007 Amount Percent

    RevenueProgram revenue:

    Charges for services 3,409,517$ 3,348,595$ 3,093,159$ (255,436)$ (7.6) Operating grants and

    contributions 100,577 173,356 355,780 182,424 105.2 Capital grants and contributions 272,395 660,634 30,600 (630,034) (95.4)

    General revenue:Property taxes 10,516,078 11,050,191 11,763,959 713,768 6.5 State-shared revenue 2,473,666 2,427,673 2,396,003 (31,670) (1.3) Investment earnings 496,849 649,538 1,144,885 495,347 76.3 Franchise fees 318,615 362,087 392,805 30,718 8.5 Miscellaneous 60,722 75,212 81,468 6,256 8.3

    Total revenue 17,648,419 18,747,286 19,258,659 511,373 2.7

    Program ExpensesGeneral government 2,693,708 2,698,114 2,797,954 99,840 3.7 Public safety 8,089,031 9,116,398 9,774,226 657,828 7.2 Public works 526,736 607,654 681,544 73,890 12.2 Publ

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