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GCEDC's 2016 Financial Reporting Found in 'Full Accordance' with US Accounting Principals
BATAVIA, NY - Mostert, Manzanero & Scott, LLP presented a summary of the audit procedures - undertaken in accordance with the scope of their engagement – and the final audit results to the Board of Directors of the Genesee County Economic Development Center at its March 30, 2017 meeting.
The GCEDC Board engaged Mostert, Manzanero & Scott, LLP, a certified public accounting firm, to perform an audit of the 2016 financial statements. The audit was preformed to issue an opinion on the financial statements of the GCEDC for the year ending December 31, 2016; a management letter to the Board of Directors and management; and, a report regarding internal control over financial reporting in accordance with Government Auditing Standards.
Included in the management letter is a statement from Mostert, Manzanero & Scott, LLP affirming that “no material deficiencies in internal controls were identified” during the audit.
Mostert, Manzanero & Scott, LLP also affirmed that, in their opinion, the audited financial statements present fairly, in all material respects, the financial position of the GCEDC as of December 31, 2016, in accordance with accounting principles generally accepted in the U.S.
“We are obviously very pleased that an outside auditor has affirmed that the GCEDC internal control policies are functioning well and that our Chief Financial Officer (CFO) monitors the agency’s finances in accordance with the highest accounting principles and standards,” said Paul Battaglia, Chairman of the GCEDC. “The GCEDC’s CFO, Lezlie Farrell, who is a Certified Public Accountant, does an outstanding job monitoring all of our agency procurement and financial activities.”
The financial statements of the GCEDC 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 transaction takes place. For example, expenditures are recorded in the period that services are provided, even though corresponding payment for those services may not be made until a later date.
The GCEDC finished 2016 with a net operating loss of $570,000. Fee revenue in 2016 totaled $150,000. According to the GCEDC, project fee revenue was down from the previous year as companies held off on major expansion decisions due to an uncertain federal climate. County contributions to the agency remained unchanged from the prior year at $215,014, but will be reduced for the 2017 operating year.
Grant income to the agency totaled $3.6 million with $2.8 million attributable to the WNY STAMP project. In 2016, the GCEDC began full design, engineering, and permitting for the initial infrastructure at the WNY STAMP site to support the first tenant, 1366 Technologies. The GCEDC has been utilizing the funds available in the $33 million New York State budget allocation for this effort. Bids for construction of the water and onsite roadway infrastructure have been issued with work anticipated to begin in 2017.
“The GCEDC is cautiously optimistic that we will secure some major projects in 2017,” said Lezlie Farrell, CFO for the GCEDC. “At the end of 2016 there were several attraction projects in the sales pipeline that still remain active today. These Projects include 1366 Technologies, Freightliner and Western Starr and Yancey’s Fancy.”