AGENDA - Swansboro, North Carolinaswansboro-nc.org/vertical/sites/{C7A9863B-59C9-4406... · October...

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)


4. Funding Request-Bicentennial Park Fishing Pier Brittany Shipp (Town match required of $37,658)


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.

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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)


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


Sponsor name on back of T-shirt (Riverview Reindeer 5K)


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


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

[email protected]

910-326-2600

mailto:[email protected]

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, North Carolina

Board of Commissioners

Tina Siegel, Chairperson

Linda Thornley

Hal Silver

Junior Freeman

Jack Harnatkiewicz

Randy Swanson


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, 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)


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.




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




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.




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.




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




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.




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:


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$


Statement of Net Position

June 30, 2016



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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$



Statement of Activities



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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$


Balance Sheet

Governmental Funds

June 30, 2016



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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$



Statement of Revenues, Expenditures, and Change in Fund Balance

Governmental Funds



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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


General Fund

Statement of Revenues, Expenditures, And

Changes in Fund Balances - Budget and Actual




Notes to the Financial Statements


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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.




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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.




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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)].




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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.




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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.

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