Audit Up at Tonight’s Algnquin Township Meeting

The meeting is tonight in the Algonquin Township Hall at 7 PM.

Cutting to the chase, here is the auditor George Roach & Associates, P.C.’s opinion:

Further comments follow:

Year Ended March 31, 2018

As management of Algonquin Township, Illinois (Township), we offer readers of the Township’s
statements this narrative overview and analysis of the financial activities of the Township for the
fiscal year ended March 31, 2018. The Management of the Township encourages the readers of
this financial information presented in conjunction with the financial statements to obtain a better
understanding of the Township’s financial operations.

• The assets and deferred outflows of the Township exceeded its liabilities and
deferred inflows at March 31, 2018 by $14,957,682 (net position). Of this amount,
$2,242,123 (unrestricted net position) may be used to meet the Township’s ongoing
obligations to citizens and creditors.
• The Township’s total net position increased by $570,034.
• At March 31, 2018, the Township’s governmental funds reported combined ending
fund balances of $4,060,767, a decrease of $826,910 from the prior year.
• At March 31, 2018, the fund balance for the Town Fund was $1,620,907, a
decrease of $15,407 from the prior year.
• The Township’s total net fixed assets increased by $1,085,989 during the year
ended March 31, 2018.

This discussion and analysis are intended to serve as an introduction to the Township’s basic
financial statements. The Township’s basic financial statements are comprise of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. In addition to the basic financial statements, this report also contains
required supplementary information and other supplementary information.
Government-wide financial statements

The government-wide financial statements are prepared using the accrual basis of accounting
and are designed to provide readers with a broad overview of the Township’s finances, in a
manner similar to private-sector businesses.

The statement of net position presents financial information on all of the Township’s assets and
liabilities plus deferred inflows, with the difference between the two reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the
financial position of the Township is improving or deteriorating.

The statement of activities presents information showing how the Township’s net position
changed during the most recent fiscal year.

Both of the government-wide financial statements distinguish functions of the Township that are
principally supported by property taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover a portion of the costs through user
fees and charges. The governmental activities of the Township include general government,
services for youth, family, and seniors, general assistance and mental health, and road and bridge

Fund financial statements
All of the funds of the Township are governmental funds. The fund financial statements are
prepared using the modified accrual basis of accounting. Unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. The fund financial statements report the Township’s operations in more detail than
the government-wide statements by providing information about the Township’s five funds and
one blended component unit (road and bridge type funds).

Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and government-wide activities.

Notes to the financial statements
Notes to the financial statements provide additional information that is essential to a full
understanding of the information provided in the basic financial statements. Required
supplementary information consists of more detailed data on budget to actual revenues and

Required Supplementary Information
In addition to the basic financial statements and the accompanying notes, this report also presents
certain required supplementary information concerning Algonquin Township’s progress in
funding its obligation to provide pension benefits, if any, to its employees. Additionally, required
supplementary information regarding a statement of revenues, expenditures, and changes in fund
balance – budget vs. actual for each major fund is presented in this section.

The Township adopts an annual budget for all funds except the Motor Fuel Tax fund which is
managed and administered by the county on behalf of the Township. A budgetary comparison
statement has been provided for the Town Fund and other governmental funds to demonstrate
compliance with the budget.

As noted earlier, net position may serve, over time, as a useful indicator of a government’s financial
position. In the case of the Township, assets and deferred outflows exceeded liabilities and
deferred inflows by $14,957,682 for the year ended March 31, 2018. A portion of the Township’s
net position reflects its investment in capital assets of $10,482,599. The Township uses these capital
assets to provide services, and consequently these assets are not available to liquidate liabilities or
for other spending. The remaining net position balance is $4,475,083, of which $2,232,960 is
restricted and $2,242,123 is unrestricted.


Audit Up at Tonight’s Algnquin Township Meeting — 1 Comment

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