AGENDAC7A9863B-59C9-4406-A35B... · Thursday~ January 19, 2016 at 2:30 pm TOWN HALL - COMMUNITY...
Transcript of AGENDAC7A9863B-59C9-4406-A35B... · Thursday~ January 19, 2016 at 2:30 pm TOWN HALL - COMMUNITY...
AGENDA SWANSBORO TOURISM DEVELOPMENT AUTHORITY
Thursday~ January 19, 2016 at 2:30 pm TOWN HALL - COMMUNITY ROOM
A. Call to Order Dr. Tina Siegel, Chair
B. Approval of Minutes 1. October 13, 2016
C. Reports 1. Financial Report Sonia Johnson
D. Old Business
1. Swan Project (Attorney Letter) Dr. Tina Siegel, Chair
E. New Business 1. Funding Request-Wayfinding Project ($5,000) Scott Chase, Brittany Shipp
a. Motion to approve/deny funding 2. Funding Request-Snow up the Park Brittany Shipp
a. Motion to approve/deny funding b. Motion to approve/deny Budget Amendment #3
3. Funding Request-Ward Shore Park Living Shoreline Brittany Shipp (Town match required of $24,750)
a. Motion to approve/deny funding b. Motion to approve/deny Budget Amendment #4
4. Funding Request-Bicentennial Park Fishing Pier Brittany Shipp (Town match required of $37,658)
a. Motion to approve/deny funding b. Motion to approve/deny Budget Amendment #5
5. Audited Financial Statements-June 30, 2016 Sonia Johnson 6. Advertising Update Donna Hammond/Chamber
F. Public Comments
G. Board Comments
H. Adjournment
Enclosures: Draft Minutes-October 13, 2016 Meeting Financial Summary Analysis as of 12/31/16 Funding Request information: Wayfinding Project Snow up the Park Ward Shore Park Living Shoreline Bicentennial Park Audited Financial Statements for Fiscal Year Ended June 30, 2016 Next Scheduled Meeting: Thursday, April 13, 2017 at 2:30 pm
SWANSBORO TOURISM DEVELOPMENT AUTHORITY REGULAR MEETING MINUTES
Thursday, October 13, 2016
Call to Order Mrs. Siegel called the meeting to order at 2:33 pm. Board members in attendance were: Tina Siegel, Randy Swanson, Jack Harnatkiewicz, Hal Silver, and Junior Freemen. Board members absent were: Linda Thornley. Town Staff in attendance were: Finance Director Sonia Johnson and Deputy Clerk Alissa Fender.
Approval of Minutes On a motion by Mr. Silver the July 14, 2016, regular meeting minutes were approved by all board members.
Reports Sonia Johnson reviewed the following Financial Report.
Page 2 of 4
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Old Business Swansboro Historical Association- (Matching Grant) Mrs. Johnson shared with the board that all receipts from the Historical Association have not been provided, and once all receipts are received she will cut a check. Billboard Advertising After discussion, Mr. Freeman moved to remove Billboard Advertising from the current budget and to revisit this option with the next fiscal year budget. The board approved unanimously. New Business Amended Contract for Audit Services FY 14/15 Mrs. Johnson shared that the contract for Audit Services FY 14/15 had to be amended past October 31, 2016, due to new reporting requirements, which resulted in the audit taking longer to complete.
On a motion by Mr. Freeman, the Amended Contract for Audit Services FY 14/15 was approved. The board approved unanimously.
Budget Amendment-Audit Services FY 14/15 Mrs. Johnson shared that and amendment was needed for the Budget Ordinance for FY 15/16, due to $1,900 being appropriated for audit services that were not invoiced before the end of last fiscal year and the funds were returned back to fund balance.
On a motion by Mr. Freeman Budget Amendment # 2016-3 was approved unanimously.
2017 Meeting Schedule The board reviewed the proposed meeting dates of January 12, 2017, April 13, 2017, July 13, 2017, and October 12, 2017. Several board members were not able to commit to January 12th. On a motion by Mr. Freeman, the 2017 Meeting Scheduled was approved to meet at 2:30 pm in the Town Hall Community room on January 19, 2017, April 13, 2017, July 13, 2017, and October 12, 2017. The board approved unanimously.
TDA hosting the Coast Host group on October 19th and 20th Mrs. Siegel shared the details for the hosting the Coast Host groups quarterly meeting. The TDA provided lunch and an activity.
Advertising Update The board review the advertising update provided by Donna Hammonds from the Swansboro Area Chamber of Commerce. The new item of consideration was the Distinctive NC Coffee Table book and the board reviewed a draft layout. During discussion it was suggested that a photo of downtown be used.
Public Comments – No comments were offered.
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Board Comments Mrs. Siegel shared a concern that the visits to the area hotels were decreasing and suggested that more be done to promote the hotel and drive visitors to the area, such has special packages.
Mr. Freeman commented that Golf Carts to take hotel guest to downtown be reconsidered and would be an added amenity. He also shared that the Rotary Club in Jacksonville provides the fish for the Mullet Festival and with the cancellation of the festival they have unused fish that could be used for the Flotilla, suggested reaching out and possibly doing a fish fry.
Mr. Swanson shared that he was willing to consider a package option with the hotel with dinner vouchers.
Adjournment On a motion by Mr. Silver, the meeting adjourned at 2:58pm with unanimous approval.
Minutes from October 13, 2016, were prepared by Deputy Clerk Alissa Fender and were documented for the official record and accepted by the
Town of Swansboro Tourism Development Authority.
SWANSBORO TOURISM DEVELOPMENT AUTHORITYFINANCIAL SUMMARY ANALYSISFY 2016/2017
BUDGET LINE ITEM BUDGET BUDGET ACTUAL2015-2016 TRANSFERS AMENDMENT REVISIONS 07/01/16-12/31/16
46,646.24$
Revenue:Acct #
70-390-0950 Occupancy Tax - Transferred from Gen Fund 57,000.00$ 57,000.00$ 33,322.20$ 70-399-0991 Fund Balance Appropriation 8,650.00$ 8,650.00$ -$
57,000.00$ 8,650.00$ 65,650.00$ 33,322.20$ Expenditures:
Acct #70-800-1910 Services - Auditor 1,900.00$ 1,900.00$ 3,800.00$ 1,800.00$ 70-800-3910 Advertising/Promotions: -$
Chamber - Visitor Ctr Management / $2300 Qtr 9,200.00$ 9,200.00$ 4,622.36$ General advertising ($5050/qtr) 20,200.00$ 2,500.00$ 22,700.00$ 15,233.22$ Liz Honeycutt Advertising -$ 5,000.00$ 5,000.00$ 2,370.00$
70-800-2995 Administrative Services 3,600.00$ 3,600.00$ 1,800.00$ 70-800-2010 Supplies 450.00$ 450.00$ 214.83$ 70-800-3100 Travel / Conference 2,000.00$ 2,000.00$ 850.00$ 70-800-4540 Insurance 300.00$ 300.00$ 200.00$ 70-800-4910 Dues & Subscriptions 350.00$ 350.00$ 350.00$ 70-800-5000 Capital Outlay -$ -$ -$ 70-800-7910 Tourism-Related Expenses (Grants) - Awarded (Marketing) -$ -$ -$ -$ 70-800-7920 Tourism-Related Expenses (Grants) - Awarded (Capital) 19,000.00$ (7,500.00)$ 6,750.00$ 18,250.00$ 1,250.00$
57,000.00$ -$ 8,650.00$ 65,650.00$ 28,690.41$
ACTUAL CASH BALANCE @ 12/31/16 51,278.03$
AVAILABLE FUND BALANCE @ 12/31/16 51,278.03$ News & Observer 1,216.00$ ENC Publishing 1,150.00$ Our State 1,160.00$ Sight & Sound Media 200.00$ Carolina Publishing & Assoc 2,455.00$ Swansboro Area Chamber of Commerce 2,079.72$ Waterway Guide 2,370.00$ 3,195.00$ Co-Op Checks Poor's Mans Hole 275.00$ Coast Host -$ Southern Coast Realty Group 275.00$ Appy City 2,500.00$ Swansboro Paddle Boarding 275.00$ Healey Publishing 1,295.00$ 825.00$ Barefoot Guide 807.50$ Total General Advertising 15,233.22$
Beginning FB 46,646.24$ Revenues 33,322.20$ Expenditures 28,690.41$ Cash balance 51,278.03$ Available FB 51,278.03$
Fund Balance @ 6-30-2016
07/01/15-12/31/16
SWANSBORO TOURISM DEVELOPMENT AUTHORITYANALYSIS OF REVENUE/ EXPENSESAPPLICATION OF 2/3 AND 1/3 RESTRICTIONS
PERIOD TOTAL
2/3-Promote Travel and
Tourism plus administrative
1/3-Tourism-Related Capital Expenditures
FYE 2011/2012 44,928.62$ 29,952.41$ 14,976.21$ FYE 2012/2013 71,128.06$ 47,418.70$ 23,709.36$ FYE 2013/2014 60,300.68$ 40,200.45$ 20,100.23$ FYE 2014/2015 59,772.79$ 39,848.53$ 19,924.26$ FYE 2015/2016 56,925.03$ 37,950.02$ 18,975.01$ FYE 2016/2017 33,322.20$ 22,214.80$ 11,107.40$
TOTALS 217,584.91$ 108,792.47$
PERIOD TOTAL
Travel and Tourism
Expenditures plus administrative
Tourism-Related Capital
ExpendituresFYE 2011/2012 4,415.12$ 4,415.12$ -$ FYE 2012/2013 38,523.85$ 38,523.85$ -$ FYE 2013/2014 87,610.72$ 62,610.72$ 25,000.00$ FYE 2014/2015 59,297.48$ 53,013.10$ 6,284.38$ FYE 2015/2016 56,561.77$ 41,944.77$ 14,617.00$ FYE 2016/2017 28,690.41$ 19,940.41$ 8,750.00$
220,447.97$ 54,651.38$
AVAILABLE FUNDS AS OF 12/31/16 (2,863.06)$ 54,141.09$
51,278.03$
REVENUES
LESS: EXPENSES
07/01/16-12/31/16
Swansboro Tourism Development Authority
Provided by: Brittany Shipp, Director – Swansboro Parks and Recreation Department
Wayfinding Project $5,000
Snow Up the Park Sponsorship Opportunity February 4, 2017
Winter fun for the entire family with a 100% chance of snow on February 4 at Swansboro
Municipal Park, 12-4 p.m. Swansboro Parks and Recreation is seeking volunteers and sponsors
for this one of a kind annual event. (Sponsorship packet attached.)
2016 participants: Estimated 2,000 event participants
6 food vendors and 1 non-profit organization
SWANSBORO PARKS AND RECREATION
2017 SPONSORSHIPS
Platinum Level: $1500 and up
Includes 3 events: Snow Up the Park (Feb 4, 2017), Touch a Truck (April 8, 2017), and Santa Fest (December 16, 2017)
Event name presented by: Sponsor name
Logo on all advertising including website, social media, and print media
Logo on event posters and flyers
Choice of banner placement at all events (banner provided by sponsor)
Prominent logo placement on our home and event pages for one event year
Logo linked back to sponsor website or business Facebook page
Logo placed on border of TapSnap photos
Choice of logo placement on T-shirt (Riverview Reindeer 5K)
Booth space at all events and opportunity to hand out promotional material
Product and marketing material in runner bags
Five tickets for unlimited sledding at Snow Up the Park
Three entries to Riverview Reindeer 5K
Gold Level: $500-$999
Includes 3 events: Snow Up the Park (Feb 4, 2017), Touch a Truck (April 8, 2017), and Santa Fest (December 16, 2017)
Prominent logo placed on our event page for one event year
Logo on event posters and flyers
Website and social media recognition
Logo linked back to sponsor website or business Facebook page
Display sponsor banner at all events (banner provided by sponsor)
Sponsor logo on back of T-shirt (Riverview Reindeer 5K)
Booth space at all events and opportunity to hand out promotional material
Three tickets for unlimited sledding at Snow Up the Park
Two entries to Riverview Reindeer 5K
Silver Level: $250-$499
Includes 3 events: Snow Up the Park (Feb 4, 2017), Touch a Truck (April 8, 2017), and Santa Fest
(December 16, 2017)
Logo placed on our event page for one event year
Website and social media recognition
Sponsor name on back of T-shirt (Riverview Reindeer 5K)
Booth space at all events and opportunity to hand out promotional material
Two tickets for unlimited sledding at Snow Up the Park
One entries to Riverview 5K
Bronze Level: $100-$249
Snow Up the Park sponsor
Logo placed on our event page for one event year
Website and social media recognition
Two tickets for unlimited sledding at Snow Up the Park
TapSnap Photo Sponsor (3) $250
TapSnap is a photo booth reinvented for the digital age. It is an interactive photo booth were participants can choose
from three backgrounds and have props for their photos. TapSnap is 100% social media integrated-photos can be shared
to Facebook, Twitter, or emailed live from the event. Participants also have the option to have their photos printed and
can be view at an online gallery after the event.
Logos are displayed on the photo border of every photo that is taken
Photos posted to Facebook
Photos emailed to participant then they can be downloaded
Once photos are downloaded then they can be shared on Facebook, Twitter, Instagram, Pinterest, Snap Chat, or
anywhere that allows photos to be posted
Company’s logo can be shared thousands of times through social media outlets
SWANSBORO PARKS AND RECREATION
2017 SPONSORSHIPS
SPONSORSHIP FORM
Business Name: _______________________________ Contact: __________________________________
Address: _____________________________________ City, State, Zip: _____________________________
Phone: _____________________Fax: _________________Email: _________________________________
Please circle level of Sponsorship: Platinum Gold Silver Bronze Donation
Amount: ______________ Method of payment: _____________________ Receipt #: ________________
Sponsor signature: ____________________________________________ Date: ____________________
Received by: _________________________________________________ Date: ____________________
Payments should be addressed and directed to:
Town of Swansboro
Attn: Parks and Recreation
601 W Corbett Avenue
Swansboro, NC 28584
Thank you for your generous support!
Any questions should be directed to:
Brittany Shipp, Director Swansboro Parks & Recreation
910-326-2600
Ward Shore Park Living Shoreline Project Period: 12/1/16-11/30/18
Funding Source: NC Department of Environmental Quality - Water Resources Development
Project Grant Program
Project Cost: $49,500 50/50: $24,750 local cash match; $24,750 DEQ
Project Description: The Town of Swansboro proposes to remove the deteriorated pilings and
bulkhead from Ward Shore Park and replace it with a living shoreline. This will provide a more
natural bank stabilization technique utilizing plants, sand, and rock to protect vegetation and
soils. Living shorelines also allow for enhanced recreational uses including easier access to te
water. In addition, the rock will serve as a “living breakwater” that will help to decrease the
energy of the waves as they reach the shoreline.
Bicentennial Park Project Period: awaiting contract; expiration expected 7/18
Funding Source: NC Department of Environmental Quality – Division of Coastal Management
Project Cost: $150,631 75/25: $37,658 local cash match; $112,973 DCM
Project Description: The Town of Swansboro has been awarded $112,973 to replace the public
pedestrian/fishing pier at Bicentennial Park. Funds were awarded to also install a wooden trellis
with swings, replace picnic tables and trash cans and incorporate in new landscaping throughout
the park. The proposed T-style pier will be constructed of concrete slats and will include varying
height railing to provide ease in accessibility for individuals of all ages, abilities and those using
wheelchairs. The pier will include a roofed entry that will contain built-in benches and tables
and will be roofed in the same style as the Church St. Gazebo and Pug Pavilion. A fish cleaning
station and built-in benches are also proposed. The Bicentennial Park improvement project will
implement policies contained in the Town of Swansboro Land Use Plan, Waterfront Access and
Development Plan, Comprehensive Parks and Recreation Plan, and report of the Downtown
Renaissance Committee.
SWANSBORO TOURISM DEVELOPMENT AUTHORITY
(A Component Unit of the Town of Swansboro, North Carolina)
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED JUNE 30, 2016
GREGORY T. REDMAN, CPA TARBORO, NORTH CAROLINA
Financial Statements
Swansboro Tourism Development Authority
Swansboro, North Carolina
Board of Commissioners
Tina Siegel, Chairperson
Linda Thornley
Hal Silver
Junior Freeman
Jack Harnatkiewicz
Randy Swanson
Swansboro Tourism Development Authority
Table of Contents
June 30, 2016
Page
Financial Section
Independent Auditor’s Report 1
Management’s Discussion and Analysis 3
Government-wide Financial Statements:
Statement of Net Position 10
Statement of Activities 11
Fund Financial Statements:
Balance Sheet - Governmental Funds 12
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds 14
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual – General Fund 16
Notes to the Financial Statements 17
Financial Section
1
410 Dowd Street • Post Office Box 369 • Tarboro, NC 27886 • Phone: (252) 641-1999 • Fax: (252) 641-1946
GTR
Member Member
North Carolina Association of American Institute of
Certified Public Accountants Certified Public Accountants
Independent Auditor’s Report
To the Board Members
Swansboro Tourism Development Authority
Swansboro, North Carolina
Report on the Financial Statements
I have audited the accompanying financial statements of the governmental activities and each major fund
of the Swansboro Tourism Development Authority, a component unit of the Town of Swansboro, North
Carolina, as of and for the year ended June 30, 2016, and the related notes to the financial statements,
which collectively comprise the Authority’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.
Auditor's Responsibility
My responsibility is to express opinions on these financial statements based on my audit. I conducted my
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, I 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 financial statement presentation of the financial
statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
audit opinions.
2
Opinions
In my opinion, based on my audit, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and each major fund of the
Swansboro Tourism Development Authority, as of June 30, 2016, and the respective changes in financial
position and budgetary comparison for the General Fund for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis on pages 3-9 be presented to supplement the basic financial statements. Such
information, although not a required 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. I
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 my inquiries, the basic financial statements, and other
knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or
provide any assurance on the information because the limited procedures do not provide me with
sufficient evidence to express an opinion or provide any assurance.
Gregory T. Redman, CPA
Tarboro, North Carolina
October 25, 2016
Management’s Discussion and Analysis
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
3
As management of the Swansboro Tourism Development Authority “the Authority”, we offer readers of
the Authority’s financial statements this narrative overview and analysis of the financial activities of the
Swansboro Tourism Development Authority for the fiscal year ended June 30, 2016. I encourage readers
to read the information presented here in conjunction with additional information that we have furnished
in the Authority’s financial statements, which follow this narrative.
Financial Highlights
The assets of the Authority exceeded its liabilities at the close of the fiscal year by $53,916 (net
position).
The government’s total net position increased by $221, due to a combination of factors; such as
decreased economic and physical development expenditures.
At the close of the current fiscal year, the Authority’s governmental fund (General Fund) reported
ending fund balances of $53,916, an increase of $221 in comparison with the prior year. The
central reasons for the increase include lower expenditures. Approximately 86 percent of this total
amount, or $46,596, is available for spending at the government’s discretion (unassigned fund
balance). For additional information regarding classification of the Authority’s fund balance,
please see Note 2, C.
At the end of the current fiscal year, unassigned fund balance for the General Fund was $46,596 or
82 percent of total general fund expenditures for the fiscal year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Swansboro Tourism
Development Authority’s basic financial statements. The Authority’s basic financial statements consist
of three components (see Figure 1). They are as follows:
Government-wide financial statements
Fund financial statements
Notes to the financial statements
The basic financial statements present two different views of the Authority through the use of
government-wide statements and fund financial statements. In addition to the basic financial statements,
this report contains other supplemental information that will enhance the reader’s understanding of the
financial condition of the Authority.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
4
Required Components of Annual Financial Report
Figure 1
Summary Detail
Basic Financial Statements
The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide
Financial Statements. They provide both short and long-term information about the Authority’s
financial status.
The next statements (Exhibits 3, 4, and 5) are Fund Financial Statements. These statements focus on
the activities of the individual parts of the Authority’s government. These statements provide more
detail than the government-wide statements. There are two parts to the Fund Financial Statements: 1)
the governmental funds statements; and 2) the budgetary comparison statements.
The next section of the basic financial statements is the Notes. The notes to the financial statements
explain in detail some of the data contained in those statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of
the Authority’s finances, in a manner similar in format to a private-sector business. The government-
wide statements provide short and long-term information about the Authority’s financial status as a
whole.
Management’s
Discussion and
Analysis
Basic
Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Government-wide
Financial
Statements
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
5
The two government-wide statements report the Authority’s net position and how they have changed.
Net position are the difference between the Authority’s total assets and deferred outflows of resources
and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the
Authority’s financial condition.
The government-wide statements show the Authority’s governmental activities. The governmental
activities include most of the Authority’s economic/physical development.
The government-wide financial statements are Exhibits 1 and 2 of this report.
Fund Financial Statements
The fund financial statements (see Figure 1) provides a more detailed look at the Authority’s most
significant activities. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Authority, like other local
governments, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance
related legal requirements, such as the General Statutes or the Authority’s budget ordinance. The
Authority has one fund, the General Fund, which belongs in one category, governmental funds.
Governmental Fund. Governmental funds are used to account for those functions reported as
governmental activities in the government-wide financial statements. The Authority’s activities are
accounted for in one governmental fund, the General Fund. This fund focuses on how assets can
readily be converted into cash flow in and out, and what monies are left at year-end that will be
available for spending in the next year. Governmental funds are reported using an accounting method
called modified accrual accounting, which provides a short-term spending focus. As a result, the
governmental fund financial statements give the reader a detailed short-term view that helps him or her
determine if there are more or less financial resources available to finance the Authority’s programs.
The Authority adopts an annual budget for its General Fund, as required by the General Statutes. The
budget is a legally adopted document that incorporates input from the citizens of the Town of
Swansboro, the management of the Authority, and the decisions of the Board about which services to
provide and how to pay for them. It also authorizes the Authority to obtain funds from identified
sources to finance these current period activities. The budgetary statement provided for the General
Fund demonstrates how well the Authority compiled with the budget ordinance and whether or not the
Authority succeeded in providing the services as planned when the budget was adopted. The budgetary
comparison statement uses the budgetary basis of accounting and is presented using the same format,
language, and classifications as the legal budget document. The statement shows four columns: 1) the
original budget as adopted by the board; 2) the final budget as amended by the board; 3) the actual
resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or
variance between the final budget and the actual resources and charges.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
6
Notes to the financial statements. 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.
The notes to the financial statements can be found on pages 15 – 19 of this report.
Independence with Other Entities. The Authority depends on financial resources flowing from, or
associated with, Town of Swansboro. Because of this dependency, the Authority is subject to changes
in specific flows of intergovernmental revenues based on modifications to Town appropriations.
Government-wide Financial Analysis
2016 2015
Increase
(Decrease)
Current assets 53,916$ 54,935$ (1,019)$
Current liabilities -$ 1,240$ (1,240)$
Net position:
Restricted for Stabilization by State Statute 7,270$ 7,411$ (141)$
Unrestricted 46,646 46,284 362
Total Net Position 53,916$ 53,695$ 221$
Governmental Activities
Swansboro Tourism Development Authority's Net Position
Figure 2
As noted earlier, net position may serve over time as one useful indicator of a government’s financial
condition. The assets of the Swansboro Tourism Development Authority exceeded liabilities by
$53,916 as of June 30, 2016. A portion of the Authority’s net position (14%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of $46,646 is
unrestricted.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
7
2016 2015
Revenues:
General revenues:
Other taxes 56,784$ 60,083$
Total Revenues 56,784$ 60,083$
Expenses:
Economic and physical development 56,563$ 65,697$
Total Expenses 56,563$ 65,697$
Increase (decrease) in net position 221 (5,614)
Net position, beginning 53,695 59,309
Net position, ending 53,916$ 53,695$
Swansboro Tourism Development Authority's Changes in Net Position
Governmental
Activities
Figure 3
55,000
55,500
56,000
56,500
57,000
57,500
58,000
58,500
59,000
59,500
60,000
60,500
2016 2015
Government-wide Revenues - 6/30/16 and 6/30/15
Other taxes
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
8
50,000
52,000
54,000
56,000
58,000
60,000
62,000
64,000
66,000
2016 2015
Government-wide Expenses - 6/30/16 and 6/30/15
Economic and physicaldevelopment
Total governmental activities generated revenues of $56,784 while expenses in this category totaled
$56,563 for the year ended June 30, 2016. The increase in net position was $221 at June 30, 2016.
Key elements of this increase are as follows:
Occupancy tax collections were down slightly for the Town of Swansboro as the economic
grants disbursed in the prior year did not achieve desired results.
Advertising and promotion efforts were decreased during the year as tourism related grants were
decreased to reexamine the grant awarding process.
Financial Analysis of the Authority’s Funds
As noted earlier, the Swansboro Tourism Development Authority uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements.
The focus of the Authority’s government fund is to provide information on near-term inflows,
outflows, and balances of usable resources. Such information is useful in assessing the Authority’s
financing requirements. Specifically, unreserved fund balance can be a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
The General Fund is the only operating fund of the Authority. At the end of the current fiscal year, the
Authority’s unassigned fund balance in the General Fund was $46,596, while total fund balance
reached $53,916 at June 30, 2016.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Management’s Discussion and Analysis
For the Year Ended June 30, 2016
9
General Fund Budgetary Highlights
During the fiscal year, the Authority revised the budget on several occasions. Generally, budget
amendments fall into one of three categories: 1) amendments made to adjust the estimates that are
used to prepare the original budget ordinance once exact information is available; 2) amendments
made to recognize new funding amounts from external sources, such as Federal and State grants; and
3) increases in appropriations that become necessary to maintain services.
During the fiscal year, the Authority amended its original budget on several occasions. Several of the
largest amendments related to economic and physical development, advertising, and promotions.
Budget Highlights for the Fiscal Year Ending June 30, 2017
The Authority and the Town of Swansboro will keep occupancy rates at 3%. We are expecting
revenue and operating expenses to remain at fiscal year 2015-2016 fiscal year levels. Also, the
Authority is increasing its advertising and promotions. These funds should promote tourism in the
area and increase overall occupancy rates.
Requests for Information
This report is designed to provide an overview of the Authority’s finances for those with an interest in
this area. Questions concerning any of the information found in this report or requests for additional
information should be directed to:
Swansboro Tourism Development Authority
Finance Director
601 W. Corbett Avenue
Swansboro, NC 28584
Financial Section
Basic Financial Statements
The notes to the financial statements are an integral part of this statement.
10
Exhibit 1
Primary Government
Governmental
Activities
Assets
Current assets:
Cash and cash equivalents 46,596$
Deposits 50
Accounts receivable (net) 7,270
Total Assets 53,916$
Liabilities
Current liabilities:
Accounts payable and accrued liabilities -$
Totalt Liabilities -$
Net Position
Restricted for:
Stabilization by State Statute 7,270$
Unrestricted net position 46,646
Total Net Position 53,916$
Swansboro Tourism Development Authority
Statement of Net Position
June 30, 2016
(A Component Unit of the Town of Swansboro, North Carolina)
The notes to the financial statements are an integral part of this statement.
11
Exhibit 2
Net (Expense)
Revenue and
Changes in
Net Position
Governmental
Functions/Programs Expenses Activities
Primary Government:
Governmental Activities:
Economic and physical development 56,563$ 56,563$
Total governmental activities 56,563$ 56,563$
General Revenues
Taxes:
Other taxes 56,784$
Change in Net Position 221$
Net Position, Beginning of year 53,695
Net Position, End of year 53,916$
Swansboro Tourism Development Authority
(A Component Unit of the Town of Swansboro, North Carolina)
Statement of Activities
For the Year Ended June 30, 2016
The notes to the financial statements are an integral part of this statement.
12
Exhibit 3
General
Assets
Current assets:
Cash and cash equivalents 46,596$
Deposits 50
Accounts receivable (net) 7,270
Total Assets 53,916$
Liabilities and Fund Balances
Accounts payable and accrued liabilities -$
Fund Balances
Non-spendable
Prepaid expense 50$
Restricted:
Stabilization by State Statute 7,270
Unassigned 46,596
Total Fund Balances 53,916$
Total Liabilities and Fund Balances 53,916$
Swansboro Tourism Development Authority
Balance Sheet
Governmental Funds
June 30, 2016
(A Component Unit of the Town of Swansboro, North Carolina)
The notes to the financial statements are an integral part of this statement.
13
Exhibit 4
General Fund
Revenues
Unrestricted intergovernmental 56,784$
Total Revenues 56,784$
Expenditures
Current:
Economic and physical development 56,563$
Total Expenditures 56,563$
Net Change in Fund Balance 221$
Fund Balances:
Beginning of year 53,695
End of year 53,916$
Swansboro Tourism Development Authority
(A Component Unit of the Town of Swansboro, North Carolina)
Statement of Revenues, Expenditures, and Change in Fund Balance
Governmental Funds
For the Year Ended June 30, 2016
The notes to the financial statements are an integral part of this statement.
14
Exhibit 5
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Revenues
Unrestricted intergovernmental 59,000$ 59,000$ 56,784$ (2,216)$
Total Revenues 59,000$ 59,000$ 56,784$ (2,216)$
Expenditures
Advertising and promotion 30,440$ 55,340$ 51,196$ 4,144$
Audit fee 1,900 1,900 - 1,900
Administrative services 3,600 3,600 3,600 -
Bad debt expense - - - -
Non-capitalized outlay - - - -
Miscellaneous - - - -
Supplies 210 210 434 (224)
Travel 2,000 2,000 283 1,717
Insurance 300 300 200 100
Dues and subscriptions 350 350 - 350
Tourism related grants 20,200 5,900 850 5,050
Total Expenditures 59,000$ 69,600$ 56,563$ 13,037$
Revenues Over (Under) Expenditures -$ (10,600)$ 221$ 10,821$
Other financing sources (uses):
Fund balance appropriated - 10,600 - (10,600)
Net Change in Fund Balance -$ -$ 221$ 221$
Fund Balances
Beginning of year 53,695
End of year 53,916$
General Fund
Swansboro Tourism Development Authority
General Fund
Statement of Revenues, Expenditures, And
Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2016
(A Component Unit of the Town of Swansboro, North Carolina)
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Notes to the Financial Statements
For the Year Ended June 30, 2016
15
I. Summary of Significant Accounting Policies
The accounting policies of Swansboro Tourism Development Authority conform to generally accepted
accounting principles as applicable to governments. The following is a summary of the more significant
accounting policies:
A. Reporting Entity
The Swansboro Tourism Development Authority is considered a component unit of the Town of
Swansboro, North Carolina, and the Authority’s transactions are reported as part of the Town’s
financial statements. The 2011 Session of the General Assembly through a ratified bill authorized
Town of Swansboro to adopt a resolution to levy a room occupancy tax and a resolution creating the
Swansboro Tourism Development Authority. The criteria in GASB Statement 39 were applied to the
Travel and Tourism Authority and it was determined that the Town has significant influence over the
Authority and that the Authority is dependent upon the Town to a degree sufficient to justify the
inclusion of the Authority as a part of the Town reporting entity. The Authority is governed by a
Board which is appointed by the Town Commissioners.
B. Basis of Presentation
Government-wide Statements. The statement of net position and the statement of activities display
information about the primary government. These statements include the financial activities of the
overall government. Governmental activities generally are financed through taxes, intergovernmental
revenues, and other non-exchange transactions.
The statement of activities presents a comparison between direct expenses and program revenues for
each function of the Authority’s governmental activities. Direct expenses are those that are
specifically associated with a program or function and, therefore, are clearly identifiable to a
particular function. Indirect expense allocations that have been made in the funds have been reversed
for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of
goods or services offered by the programs and (b) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular program. The Authority had no
program revenues at June 30, 2016. Revenues that are not classified as program revenues, including
all taxes, are presented as general revenues.
Fund Financial Statements. The fund financial statements provide information about the Authority’s
governmental fund.
The Authority reports the following major governmental funds:
General Fund. The General Fund is the general operating fund of the Authority. The General Fund
accounts for all financial resources. The primary revenue sources are transfers in from the Town of
Swansboro, which consists of the room occupancy tax revenue levied by the Town of Swansboro.
The primary expenditures are for economic and physical development.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Notes to the Financial Statements
For the Year Ended June 30, 2016
16
C. Measurement Focus and Basis of Accounting
In accordance with North Carolina General Statutes, all funds of the Authority are maintained during
the year using the modified accrual basis of accounting.
Government-wide Fund Financial Statements. The government-wide financial statements are
reported using the economic resources measurement focus. The government-wide financial
statements are reported using the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred, regardless of when the related cash
flows take place. Nonexchange transactions, in which the Authority gives (or receives) value without
directly receiving (or giving) equal value in exchange, include grants, and donations. On an accrual
basis, revenue from occupancy taxes is recognized in the fiscal year for which the taxes are levied.
Revenue from grants and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Governmental Fund Financial Statements. Governmental funds are reported using the current
financial resources measurement focus and the modified accrual basis of accounting. Under this
method, revenues are recognized when measurable and available. Expenditures are recorded when
the related fund liability is incurred, except for principal and interest on general long-term debt,
claims and judgments, and compensated absences, which are recognized as expenditures to the extent
they have matured. General capital asset acquisitions are reported as expenditures in governmental
funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other
financing sources. The Authority considers all revenues available if they are collected within 90 days
after year end.
D. Budgetary Data
The Authority’s budgets are adopted as required by the North Carolina General Statutes. An annual
budget is adopted for the General Fund. All annual appropriations lapse at the fiscal year-end. The
budget is prepared using the modified accrual basis of accounting. Expenditures may not legally
exceed appropriations at the functional level for General Fund. During the year, amendments to the
original budget were necessary to account for additional grant appropriations approved by the Board.
All amendments must be approved by the governing board and the budget must be adopted by July 1
of the fiscal year or the Board must adopt an interim budget that covers that time until the annual
ordinance can be adopted.
E. Assets, Liabilities, and Fund Equity
1. Deposits and Investments
All deposits of the Authority are made in Council-designated official depositories and are secured
as required by State law [G.S. 159-31]. The Authority may designate, as an official depository,
and bank or savings association whose principal office is located in North Carolina. Also, the
Authority may establish time deposit accounts such as NOW and SuperNOW accounts, money
market accounts, and certificates of deposit.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Notes to the Financial Statements
For the Year Ended June 30, 2016
17
State law [G.S. 159-30(c)] authorizes the Authority to invest in obligations of the United States or
obligations fully guaranteed both as to principal and interest by the United States; obligations of
the State of North Carolina; bonds and notes of any North Carolina local government or public
authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of
commercial paper and bankers’ acceptances and the North Carolina Capital Management Trust
(NCCMT).
The Authority had no such investments as June 30, 2016.
2. Cash and Cash Equivalents
All cash and investments are essentially demand deposits and are considered cash and cash
equivalents. The Authority considers all highly liquid investments (including restricted assets)
with a maturity of three months or less when purchased to be cash and cash equivalents.
3. Net Position/Fund Balances
a. Net Position
Net position in government-wide financial statements is classified as restricted and
unrestricted. Restricted net position represent constraints on resources that are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments or imposed by law through state statute.
b. Fund Balances
In the governmental fund financial statements, fund balance is composed of three
classifications designed to dissolve the hierarchy of constraints placed on how fund balance
can be spent.
The governmental fund types classify fund balances as follows:
Nonspendable Fund Balance - this classification includes amounts that cannot be spent
because they are either (a) not in spendable form or (b) legally or contractually required to be
maintained intact.
Prepaid Expense - portion of fund balance that is not an available resource because it
represents funds to be used for future expenditures, which are not spendable resources.
Restricted Fund Balance – this classification incudes amounts that are restricted to specific
purposes externally imposed by creditors or imposed by law.
Restricted for Stabilization by State Statute – portion of fund balance that is restricted by
State Statute [G.S. 159-8(a)].
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Notes to the Financial Statements
For the Year Ended June 30, 2016
18
Unassigned Fund Balance – portion of fund balance that has not been restricted,
committed, or assigned to specific purposes or other funds.
II. Detail Notes on All Funds
A. Assets
1. Deposits
All the deposits of the Authority are either insured or collateralized by using one of two methods.
Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage
level are collateralized with securities held by the Authority's agents in these units' names. Under
the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with
securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State
Treasurer is acting in a fiduciary capacity for the Authority, these deposits are considered to be
held by the Authority's agents in its name. The amount of the pledged collateral is based on an
approved averaging method for non-interest bearing deposits and the actual current balance for
interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the
adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not
confirm this information with the Authority or the escrow agent. Because of the inability to
measure the exact amounts of collateral pledged for the Authority under the Pooling Method, the
potential exists for under-collateralization. This risk may increase in periods of high cash flows.
However, the State Treasurer of North Carolina enforces strict standards of financial stability for
each depository that collateralizes public deposits under the Pooling Method. The Authority has
no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to
enforce standards of minimum capitalization for all polling method institutions and to monitor
them for compliance. The Authority complies with the provisions of G.S. 159-31 when
designating official depositions and verifying that deposits are properly secured.
At June 30, 2016, the Authority's deposits had a carrying amount of $46,596 and a bank balance
of $51,528. All of the bank balances were covered by federal deposit insurance.
B. Liabilities
Risk Management
In accordance with G.S. 159-29, the Authority’s finance officer is individually bonded for $50,000.
C. Fund Balance
The following schedule provides management and citizens with information on the portion of General
fund balance that is available for appropriation.
Swansboro Tourism Development Authority (A Component Unit of the Town of Swansboro, North Carolina)
Notes to the Financial Statements
For the Year Ended June 30, 2016
19
Total fund balance-General Fund 53,916$
Less:
Prepaid Expense 50
Stabilization by State Statute 7,270
Remaining Fund Balance 46,596
III. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts revenues and expenses during the reporting period. Actual results could differ from
those estimates.
IV. Subsequent Events
Management has evaluated subsequent events through October 25, 2016, the date on which the
financial statements were available to be issued.