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GCEDC’S 2017 Financial Reporting Found to be in “Full Accordance” With U.S. 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 29, 2018 meeting.
The GCEDC Board engaged Mostert, Manzanero & Scott, LLP, a certified public accounting firm, to perform an audit of the 2017 financial statements. The audit was preformed to issue an opinion on the financial statements of the GCEDC for the year ending December 31, 2017; 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, 2017, 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 2017 with a net operating income of $2.9 million. Fee revenue in 2018 totaled $2.2 million with $1.6 million attributed to the HP Hood project closing. The project origination fees for this project have been termed out and will be collected over six years. In 2017 the first payment of $279,000 was received. County contributions to the agency totaled $193,500 for 2017.
“Grant income to the agency totaled $5.5 million with $5.0 million attributable to the WNY STAMP project, said Mark Masse,” Sr. Vice President of Operations. “In 2017, the GCEDC continued design, engineering, and permitting for the initial infrastructure at the WNY STAMP site. The GCEDC has been utilizing the funds available in the $33 million New York State budget allocation to complete the main entrance road and start construction on the main water line. Currently design of Phase II water for Town of Alabama residents is underway, with construction anticipated this summer. Design and engineering for the re-route of National Grid’s 115kV lines is proceeding, and this will prepare the main manufacturing campus for a large-scale tenant. Conceptual design process has started on the 345kV substation which is critical to brining 500MW of low-cost hydro-power to the site,” said Masse.
“The GCEDC continues to see business development projects that will increase investment in our community, build tax base and jobs,” said Lezlie Farrell, CFO for the GCEDC. “At the end of 2017 there were several attraction projects in the sales pipeline that still remain active today. These Projects include Freightliner and Western Starr, Ellicott Station (Savarino Companies), Coach Tony’s and Gateway GS (Gallina).”