Independent Financial Audit Reports
The Township follows the new reporting model officially promulgated in 1999 as GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. It is important to note that the basic financial statements are the responsibility of the township’s management. The independent auditor’s responsibility is to express an opinion on the basic financial statements based on their audit. They conduct their audit in accordance with auditing standards generally accepted in the USA which includes standards for planning and performing the audit.
The Governmental Accounting Standards Board (GASB) has identified both operational and fiscal accountability as the paramount objectives of financial reporting:
Operational accountability requires that a government demonstrates the extent to which is has met its operating objectives efficiently and effectively, using all resources available for that purpose, and whether it can continue to do so. This is accomplished by the use of government-wide financial statements. These statements are reported using the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when the liability is incurred regardless of when the revenue is received or the expense is paid.
Fiscal accountability requires that a government demonstrates compliance with public decisions concerning the raising and spending of public monies in the short term (usually one annual budget cycle). This is accomplished by the use of fund-based financial statements, similar to what readers have grown accustomed to prior to the adoption of GASB 34. Fund-based statements are reported using the modified accrual basis whereby revenues are recognized when earned provided they are collectible within the current period or soon enough afterwards to be used to pay current period liabilities. Expenditures are generally recorded when the liability is incurred.
The Township’s basic (required) financial statements consist of the following three components: 1) government-wide financial statements (operational accountability), 2) fund-based financial statements (fiscal accountability), and 3) notes to the financial statements. This report also includes both required and optional supplementary information schedules which are intended to enhance the reader’s understanding of the financial condition of the Township.
The following audit reports may be viewed and / or downloaded: