Township of Union

Auditor’s Presentation

April 18, 2005

• Auditor’s Report
• Report covered the general purpose financial statements for the year ended December 31, 2004
• Statements are the responsibility of the Board of Supervisors and Township management
• Audit conducted in accordance with generally accepted auditing standards.
• Auditor’s opinion is qualified for scope limitation and departures form generally accepted accounting principles.

• General Fund Balance Sheet (12-31-2004)
• Current Assets of $145,020
• Cash and investments of $90,335
• Current Liabilities of $182,532
• Fund Balance of $(37,512)

• Union Township History of Unreserved Fund Balance General and Other Funds

• Why is a Fund Balance Important?
• A fund balance is your working capital
• A fund balance is your contingency fund.
• A fund balance gives the Township the ability to plan for tomorrow.

• General Fund – Operating Highlights

• General fund revenues and other financing sources - $1,298,857
• General fund expenditures and other financing uses - $1,440,725
• Fund balance decrease by $(141,868) from December 31, 2003.
• Fund balance decrease by $(73,093) from December 31, 2002.

• Management Letter
• Fund balance
• Amended budget
• Books and records
• State pension fund
• Bookkeeping Matters
• Disorganization
• Bank reconciliations
• Disbursement approval
• Supporting documentation
• Chart of accounts
• Payroll
• Supervisors Pay
• Compensation Package
• Compensatory Time
• Monitoring of Health Benefits
• Use of Encumbered Funds
• Compliance with contracts
• Minutes of the Board of Supervisors
• Further investigation