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8 <br /> 1 or otherwise reproduce the financial statements and mae reference to our firm, <br /> 2 we must be provided with printers' proof for our review and approval before <br /> 3 printing. The County must also provide us with a copy of the financial <br /> 4 reproduced for material for our approval before it is distributed. <br /> 5 <br /> 6 • Auditor Independence <br /> 7 o In accordance with AICPA professional standards, M&J is independent with <br /> 8 regard to the County and its financial reporting process <br /> 9 o There were no fees paid to M&J for management advisory services during the <br /> 10 fiscal year 2016 that may affect our independence as auditors. <br /> 11 <br /> 12 General Fund Fund Balance Ratio to Expenditures (graph) <br /> 13 <br /> 14 Trend Analysis of Property and Sales Tax Revenue per capita (graph) <br /> 15 <br /> 16 Assessed Values vs Tax Rates (graph) <br /> 17 <br /> 18 General Fund Budget to Actual Results —Fiscal Year 2016 (graph) <br /> 19 • General Fund revenues were 1.2% more than the amended budgeted amount. The <br /> 20 actual revenue was over budget due to increased actual sales tax collections from the <br /> 21 State. <br /> 22 • Expenditures for many functional areas were less than budget as the County generated <br /> 23 savings of$10.1 million (4.9%) from the operating budget. Several departments came in <br /> 24 under budget due to personnel vacancies and efforts to spend conservatively. <br /> 25 • Budgeted use of fund balance was not needed to the extent anticipated, as actual use of <br /> 26 reserves was only 4.5% of the final budgeted use. <br /> 27 • General Fund significant transfers were $5,167,984 to School Capital Improvement <br /> 28 Fund; $703,227 to County Capital Improvement Fund; and $1,718,018 to Solid Waste <br /> 29 Landfill Fund. <br /> 30 <br /> 31 Enterprise Results (graph) <br /> 32 <br /> 33 James Bence, Mauldin and Jenkins Audit Services Partner, reviewed the following <br /> 34 portion of the PowerPoint presentation: <br /> 35 <br /> 36 Comments, Recommendations, and Other Issues <br /> 37 Material Weaknesses Reported <br /> 38 2016-001 Expenditure and Expense Recognition <br /> 39 Generally, expenditures/expenses should be recognized as soon as a liability is incurred, <br /> 40 regardless of the timing of the related cash flows in accordance with generally accepted <br /> 41 accounting principles. Misstatements were detected in the reporting of the County's <br /> 42 expenditures/expenses and the related balance sheet accounts. Audit adjustments totaling <br /> 43 approximately $6,354,000 were needed to correct the County's expenditures/expenses and <br /> 44 related balance accounts. This included three adjustments to the prior financial statement <br /> 45 amounts. <br /> 46 <br /> 47 2016-002 Equity Reconciliation <br /> 48 Internal controls should be in place to ensure that financial statements are properly presenting <br /> 49 the financial position and results of operations of the County in accordance with generally <br /> 50 accepted accounting principles. Internal controls were not sufficient to detect misstatements in <br />