This document provides an overview of financial accounting and reporting done by the Lucas County Auditor's Office. It discusses the Comprehensive Annual Financial Report (CAFR) and Popular Annual Financial Report (PAFR) produced by the office, including their purpose, contents, and distribution. It also summarizes the county's sources of revenue and describes the tax collection and distribution cycle, including the roles of different government bodies and processes like tax levy certification and collection.
1. Financial AccountingFinancial Accounting
& Reporting& Reporting
WHAT WE DOWHAT WE DO
Presented byPresented by
Scott S. Smith &Scott S. Smith &
Peter M. Rancatore, Jr.Peter M. Rancatore, Jr.
2. Lucas County Auditor’sLucas County Auditor’s
Office (Accounting)Office (Accounting)
Scott Smith
Chief Deputy Auditor
Peter Rancatore
Chief Accountant
Dave Polek
Staff Accountant
Karla Hayes
Accounting Specialist
3. Lucas County Auditor =Lucas County Auditor =
Anita LopezAnita Lopez
Anita’s CreedAnita’s Creed
•Take the Burden off the TaxpayerTake the Burden off the Taxpayer
• Government is TransparentGovernment is Transparent
•The Citizen is the Boss --The Citizen is the Boss --
Customer Service ReignsCustomer Service Reigns
4. Burden LesseningBurden Lessening
Assisting in Special ProjectsAssisting in Special Projects
• Tax EstimatorTax Estimator
• Tax DistributorTax Distributor
• Homestead Savings ProjectHomestead Savings Project
• Implementing GL PeopleSoft - ERPImplementing GL PeopleSoft - ERP
Steering Committee MembersSteering Committee Members
5. Customer ServiceCustomer Service
OrientationOrientation
*Information source for*Information source for
– Public officialsPublic officials
– School TreasurersSchool Treasurers
– Township AdministratorsTownship Administrators
– Municipal OfficialsMunicipal Officials
– Fiscal OfficersFiscal Officers
– Other County Offices & AdministratorsOther County Offices & Administrators
*Issue 1099s for Vendors & Childcare Providers*Issue 1099s for Vendors & Childcare Providers
*Initiate Wage Garnishments*Initiate Wage Garnishments
*Replace Lost/uncashed checks*Replace Lost/uncashed checks
*Place some funds into unclaimed funds (5 yr rule)*Place some funds into unclaimed funds (5 yr rule)
*Calculate $$$ to provide the taxing jurisdictions*Calculate $$$ to provide the taxing jurisdictions
*Accounting for Fixed Assets*Accounting for Fixed Assets
6. TransparencyTransparency
- Tax Estimator, Tax Distributor- Tax Estimator, Tax Distributor
Homestead Savings ProjectHomestead Savings Project
- Preparation and publication of- Preparation and publication of
optional and statutory reportsoptional and statutory reports
8. What is the CAFR?What is the CAFR?
CAFR = Comprehensive Annual Financial ReportCAFR = Comprehensive Annual Financial Report
• Basic financial statementsBasic financial statements
• Management’s discussions & analysisManagement’s discussions & analysis
• Supplemental financial statementsSupplemental financial statements
• Other financial and statistical information asOther financial and statistical information as
required by the GFOA.required by the GFOA.
• Statements conforming to generallyStatements conforming to generally
accepted accounting principles (GAAP).accepted accounting principles (GAAP).
• ““Everything you ever wanted to know aboutEverything you ever wanted to know about
the County,” Scott S. Smith.the County,” Scott S. Smith.
9. Is preparing a CAFRIs preparing a CAFR
required?required?
• Doing a financial section isDoing a financial section is
required by statute (pgs 13-78).required by statute (pgs 13-78).
– Preparing a CAFR is not (pgs 79-Preparing a CAFR is not (pgs 79-
214).214).
10. Examples of GovernmentsExamples of Governments
Preparing a 2005 CAFRPreparing a 2005 CAFR
√ MaumeeMaumee
√ FindlayFindlay
√ NorthwoodNorthwood
√ OregonOregon
√ ToledoToledo
√ NapoleonNapoleon
√ RossfordRossford
Anthony Wayne SchoolsAnthony Wayne Schools
Ohio Def. Comp ProgramOhio Def. Comp Program
PERS, STRS, Ohio Police &PERS, STRS, Ohio Police &
Fire Pension FundFire Pension Fund
Ohio State AuditorOhio State Auditor
Sylvania, Toledo SchoolsSylvania, Toledo Schools
Toledo-Lucas CountyToledo-Lucas County
Public LibraryPublic Library
11. Examples of GovernmentsExamples of Governments
NotNot preparing a 2005 CAFRpreparing a 2005 CAFR
Х SylvaniaSylvania
Х Ottawa HillsOttawa Hills
Х WatervilleWaterville
Х WhitehouseWhitehouse
Х PerrysburgPerrysburg
Х DefianceDefiance
Х BGBG
Х Port ClintonPort Clinton
Х GibsonburgGibsonburg
Х WalbridgeWalbridge
Х ClydeClyde
Х BryanBryan
Х TiffinTiffin
12. Purpose of the CAFRPurpose of the CAFR
TransparencyTransparency
*As the Audited Financial*As the Audited Financial
Statement of the County, theStatement of the County, the
CAFR is an informational toolCAFR is an informational tool
for the public.for the public.
13. Who Reads this?Who Reads this?
• Bond Rating AgenciesBond Rating Agencies
-Moody’s (A1)-Moody’s (A1)
-Fitch (AA-)-Fitch (AA-)
-Standard & Poors (A+)-Standard & Poors (A+)
• Good Bond Ratings lower the County’sGood Bond Ratings lower the County’s
interest that it pays on debt.interest that it pays on debt.
• Distribution = 400 + online availabilityDistribution = 400 + online availability
14. GFOA AwardGFOA Award
• An Award winning CAFRAn Award winning CAFR
provides an additionalprovides an additional
amount of confidence inamount of confidence in
the numbers presented.the numbers presented.
15. CAFRs undergo scrutiny,CAFRs undergo scrutiny,
meeting stringent financialmeeting stringent financial
reporting requirementsreporting requirements
A CAFR is Audited 3 Times!!!A CAFR is Audited 3 Times!!!
• Ernst & YoungErnst & Young
• State of OhioState of Ohio
• Government Finance OfficersGovernment Finance Officers
Association (GFOA)Association (GFOA)
16. What Type of InformationWhat Type of Information
is in the CAFR?is in the CAFR?
• NumbersNumbers
• NarrativesNarratives
• StatisticsStatistics
18. What Kind of AccountingWhat Kind of Accounting
is in the CAFR?is in the CAFR?
Methods of AccountingMethods of Accounting
• CashCash - Recognize income when cash- Recognize income when cash
(or check) is actually received;(or check) is actually received;
Recognize expenses when paid.Recognize expenses when paid.
• AccrualAccrual - Transactions recorded- Transactions recorded
when the order is made, the item iswhen the order is made, the item is
delivered, or the services occur,delivered, or the services occur,
regardless of when money isregardless of when money is
actually received oractually received or paidpaid..
19. Cash/Accrual ExamplesCash/Accrual Examples
Example 1: Your computer installationExample 1: Your computer installation
business finishes a job in November,business finishes a job in November,
and doesn't get paid until threeand doesn't get paid until three
months later in January.months later in January.
When Income RecognizedWhen Income Recognized
Cash:Cash: JanuaryJanuary
Accrual:Accrual: NovemberNovember
20. Example 2Example 2
You purchase a new laser printerYou purchase a new laser printer
with a credit card in May andwith a credit card in May and
pay $1,000 for it in July, twopay $1,000 for it in July, two
months later.months later.
When Expense RecognizedWhen Expense Recognized
• Cash:Cash: JulyJuly
• Accrual:Accrual: MayMay
21. Modified AccrualModified Accrual
• Revenue is recognized when it becomes available andRevenue is recognized when it becomes available and
measurable.measurable.
“Available” means that the government has collected the“Available” means that the government has collected the
revenues in the current period or expects to collect themrevenues in the current period or expects to collect them
soon enough after the end of the period to use them tosoon enough after the end of the period to use them to
pay liabilities of the current period.pay liabilities of the current period.
• Expenditures are generally recognized when the relatedExpenditures are generally recognized when the related
fund liability is incurred, if measurable.fund liability is incurred, if measurable.
Layman’s DefinitionLayman’s Definition::
• Government fund accounting is cash accounting, exceptGovernment fund accounting is cash accounting, except
for the first 2 months of the year when accruals are done.for the first 2 months of the year when accruals are done.
22. Modified AccrualModified Accrual
ExampleExample
Example: BMR physically receives aExample: BMR physically receives a
grant on February 15, 2007. Thegrant on February 15, 2007. The
grant payment was for the calendargrant payment was for the calendar
year 2006.year 2006.
Lucas County will record this asLucas County will record this as
income in theincome in the
2006 CAFR.2006 CAFR.
23. County FundsCounty Funds
• Governmental FundsGovernmental Funds
• Proprietary & Internal Service FundsProprietary & Internal Service Funds
• Fiduciary FundsFiduciary Funds
24. What is the PAFR?What is the PAFR?
• Popular Annual Financial ReportPopular Annual Financial Report
• Translation – Accounting info forTranslation – Accounting info for
the commonerthe commoner
26. What are the County’sWhat are the County’s
Sources of Revenue?Sources of Revenue?
• Sales TaxSales Tax
(.5 in 1970, .5 in 1982, .25 in 1993).(.5 in 1970, .5 in 1982, .25 in 1993).
• Property TaxProperty Tax
• GrantsGrants
• Charges for ServicesCharges for Services
• LicensesLicenses
• Investment IncomeInvestment Income
27. PAFR = Also can receivePAFR = Also can receive
a GFOA Awarda GFOA Award
CreativityCreativity
PresentationPresentation
UnderstandabilityUnderstandability
Reader AppealReader Appeal
It looks cool, & it’s understandable.It looks cool, & it’s understandable.
28. This Concludes Part I!This Concludes Part I!
Special thanks toSpecial thanks to
• The AudienceThe Audience
• Shimeako ColeShimeako Cole
• Karla HaysKarla Hays
• Dave PolekDave Polek
• Scott SmithScott Smith
• Peter Rancatore, IV. (10yrs old)Peter Rancatore, IV. (10yrs old)
• Mely ArribasMely Arribas
29. Part IIPart II
Tax Collection /Tax Collection /
Distribution CycleDistribution Cycle
30. Who Has TaxingWho Has Taxing
Authority?Authority?
TownshipsTownships
MunicipalitiesMunicipalities
School DistrictsSchool Districts
County CommissionersCounty Commissioners
OthersOthers
32. MunicipalitiesMunicipalities
Berkey VillageBerkey Village
Harbor ViewHarbor View
VillageVillage
Holland VillageHolland Village
Maumee CityMaumee City
Oregon CityOregon City
Ottawa HillsOttawa Hills
VillageVillage
Swanton VillageSwanton Village
Sylvania CitySylvania City
Toledo CityToledo City
WatervilleWaterville
VillageVillage
White HouseWhite House
VillageVillage
34. CommissionersCommissioners
County General FundCounty General Fund
Senior ServicesSenior Services
911 Telephone911 Telephone
Zoo OperatingZoo Operating
Zoo ImprovementZoo Improvement
COSICOSI
CSBCSB
MRDDMRDD
Mental Health and RecoveryMental Health and Recovery
Port AuthorityPort Authority
36. Tax Collection CycleTax Collection Cycle
75 days before the election, the75 days before the election, the
subdivision must file with thesubdivision must file with the
Broad of Elections. TheBroad of Elections. The AuditorAuditor
mustmust certify the amount to becertify the amount to be
generated by the levy before theygenerated by the levy before they
can go to the Board of Elections.can go to the Board of Elections.
39. Different TypesDifferent Types
RenewalRenewal
Renewal with increaseRenewal with increase
Renewal with decreaseRenewal with decrease
ReplacementReplacement
Replacement with increaseReplacement with increase
Replacement with decreaseReplacement with decrease
AdditionalAdditional
EmergencyEmergency
41. Successful levies and expiring leviesSuccessful levies and expiring levies
are updated with the Stateare updated with the State
Department of Tax Equalization.Department of Tax Equalization.
DTE, using property value info,DTE, using property value info,
calculates reduction factors.calculates reduction factors.
Reduction factors are entered intoReduction factors are entered into
tax accounting system and createtax accounting system and create
“tax duplicate”.“tax duplicate”.
42.
43. At Budget Commission meeting,At Budget Commission meeting,
Auditor delivers the taxAuditor delivers the tax
duplicate to Treasurerduplicate to Treasurer
Treasurer prepares bills andTreasurer prepares bills and
collects taxes.collects taxes.
44.
45. Other SettlementsOther Settlements
Mobile HomesMobile Homes
Mobile homes like real estateMobile homes like real estate
Personal property taxPersonal property tax
Rollback and HomesteadRollback and Homestead
Estate TaxEstate Tax
Cigarette license feeCigarette license fee
46. Other Funds PassedOther Funds Passed
Through the AuditorThrough the Auditor
Local government fundLocal government fund
HB 66 Personal Property PhaseHB 66 Personal Property Phase
out.out.
Public utility deregulationPublic utility deregulation
$10,000 exemption$10,000 exemption
Library and Local GovernmentLibrary and Local Government
Support Fund.Support Fund.