ANNUAL FINANCIAL REPPORT - South Bend International …

1 B46889. ANNUA. A AL FINA. ANCIA. AL REP. PORT. FOR THE. T FISC. CAL YEAR. R ENDED D. DECEMBER 31, 20. 015. T. JOS. ST SEPH COUNT. C TY AIRP. PORT A. AUTHO. ORITY. A COMPONEN. C NT UNIT OF ST. JOSEP. PH COUNTY. Y, INDIANA. Prrepared by th he Departme ent of Admin nistration an nd Finance FILED 09/15/2016. ST. JOSEPH COUNTY AIRPORT AUTHORITY. ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED. DECEMBER 31, 2015. TABLE OF CONTENTS. INTRODUCTORY SECTION PAGE. Letter of Transmittal .. 3-4. Airport Authority Officials .. 5. FINANCIAL SECTION. Independent Auditor's Report .. 6-8. Independent Auditor's Report on Internal Control over FINANCIAL Reporting and on Compliance and Other Matters Based on an Audit of FINANCIAL Statements Performed in Accordance with Government Auditing Standards.

2 9-10. Management's Discussion and Analysis .. 11-27. Basic FINANCIAL Statements: Fund FINANCIAL Statements: Statement of Net Position .. 30-31. Statement of Revenues, Expenses and Changes in Net Position .. 32. Statement of Cash Flows - Enterprise Funds .. 33-34. Notes to the FINANCIAL Statements .. 35-48. Required Supplementary Information: Schedule of Proportionate Share of the Net Pension Liability .. 49. Schedule of Contributions .. 50. Schedule of Funding 51. Notes to Required Supplementary 52. -1- ST. JOSEPH COUNTY AIRPORT AUTHORITY. ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED.

3 DECEMBER 31, 2015. TABLE OF CONTENTS. (Continued). FINANCIAL SECTION (continued) PAGE. Supplemental FINANCIAL Information: Budgetary Comparison Schedule .. 53. Budget/GAAP Reconciliation .. 54. Schedule of Expenditures of Passenger Facility Charges .. 55. TREND SECTION (NOT COVERED BY AUDITOR'S OPINION). Trend Overview .. 57. Schedule of Revenues .. 58. Schedule of Expenses and Changes in Net Position .. 59. Assessed Value of Taxable Property (St. Joseph County) .. 60. Property Tax Rates - Direct .. 60. Property Tax Levies and Collections .. 61. COMPLIANCE SECTION. Supplemental Audit of Federal Awards: Independent Auditor's Report on Compliance for the Major Federal Program; Report on Internal Control over Compliance; Report on Schedule of Expenditures of Federal Awards.

4 64-65. Schedule of Expenditures of Federal Awards and Accompanying Notes: Schedule of Expenditures of Federal Awards .. 68. Notes to Schedule of Expenditures of Federal Awards .. 69. Schedule of Findings and Questioned Costs .. 70-73. Auditee Prepared Documents: Summary Schedule of Prior Audit Findings .. 76. Corrective Action Plan .. 77-78. Other Reports .. 79. -2- flysbn .com August 1, 2016, 2. embers of the To the Me e Board: The Annua al FINANCIAL Re S Joseph County Airport A. eport of the St. Authority for th he fiscal year ended Decem mber 31, 2015, is s submitted herewith.

5 This s report was prepared by th e Department of Administrration and Finance of the St. Joseph J Countty Airport Authhority in conju unction with H. Umbaugh h and Associa ates, the Aud ditor's Office of St. Joseph Cou unty, Indiana,, and the India ana State Booard of Accounts. Responsib bility for both the accuracy y of the pres sented data a and the com mpleteness an nd fairness of the presentatio on, including all a disclosures s, rests with th he Airport Autthority. We be elieve the dataa, as presente ed, is accurate in n all material aspects; thatt it is presentted in a mann ner designed d to fairly set forth the fina ancial position an nd results of operations o of the Airport Au uthority; and that all disclo osures necesssary to enable e the reader to gain g the maxim mum understa anding of the Airport Autho ority's financia al affairs have e been includ ded.

6 The guidellines recomm mended by the e Governmen nt Finance O Officers Assocciation of the United State es and Canada ha ave been follo owed in the preparation p off this report. One should read this lettter of transmiittal in conjunctionn with the Management Dis scussion and Analysis (MD D&A) that is lo ocated immeddiately followin ng the report of th he independent auditor in the t FINANCIAL Section of thi s report. THE REPO. ORTING ENT. TITY. The St. Joseph J Countty Airport Autthority (the "A Airport Authorrity") is a municipal corporation established January 1, 1 1974, by the e St.

7 Joseph County, C Indianna, Council, un nder authorityy granted by In ndiana Statutee ( 1971 19-6-2 as amend ded by Chaptter , comm monly known as Public La aw 304 and su uperseded byy 8-22-3). The T Authority y, a componen nt unit of St. Joseph J Countty, has jurisdiction over a sspecial districtt and was established for the general purrpose of acqu uiring, maintaaining, operatting, and finan ncing airportss and landing fie elds in St. Jos seph County, Indiana; and in i connection therewith is aauthorized, ammong other things, to issue general g obliga ation and reve enue bonds and a to levy taxxes in accord dance with thee provisions oof the statute.

8 The T Airport Au uthority adminnisters The So outh Bend Inte ernational Airp Bend, Indiana. The port in South B. Airport Authority has no stockhold ders or equity y holders and d all revenue es and other receipts musst be disbursedd in accordanc ce with such statute. s The Authority A has no componen nt units. The Airport Authoority's bi-partisa an Board cons sists of four members m who are appointed d by the St. Joseph Countyy Commission ners. -3- FINANCIA. AL INFORMAT. TION. Internal Control C Struc cture and Bu udgetary Con ntrols In develop ping and imple ementing the Airport Authoority's accountting system, cconsideration has been givven to the adequ uacy of intern nal accountinng controls, designing d them m to provide reasonable, but not abso olute, assurance e regarding thhe safeguarding of assets against a loss frrom unauthorrized use or disposition, an nd the reliability of FINANCIAL re ecords for pre eparing financcial statementts and mainta aining accoun ntability for asssets.

9 The conce ept of reason nable assuran nce recognizees that the coost of control sshould not exxceed the ben nefits likely to bee derived and d the evaluatio on of costs an nd benefits req quires estima ates and judgmments by man nage- ment. We believve that operating within thiis framework;; the Airport A. Authority's intternal accounnting controls ade- quately sa afeguard asseets and providde reasonable e assurance o of proper reco ording of finan ncial transacttions. The accounts of the Aiirport Authoritty are maintained in six (6)) main funds (Aviation, Cumulative Building, Restrictedd, PFC, Debt Service S and Section S 125) as a required by state statute ffor budgetaryy purposes.

10 An nnual budgets are a adopted anda monthly budget reports s are prepared d on a cash ba asis. Appropriations lapse e with the expira ation of the buudgetary period unless encumbered byy a purchase o order or contract. Encumb bered appropria ations for purchase orders or o contracts arre carried overr and added to o the subsequ uent year's budget. For exterrnal FINANCIAL reporting purrposes, the Airport A Authorrity consolidattes its FINANCIAL activity intto an enterprise e fund which recognizes r exxpenses when n incurred. Th hus, this component unit FINANCIAL reporrt has been prep pared using thhe accrual meethod of acco ounting.