ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
Resolution No. RVR-17-03-04
March 28, 2017
ACCEPTING 2016 AUDIT
WHEREAS, the St. Lawrence River Valley Redevelopment Agency has appointed the
firm of Pinto, Mucenski, Hooper, VanHouse and Company PC as its auditor for the years 2015
through 2017, and
WHEREAS, Pinto, Mucenski, Hooper, VanHouse and Company PC has submitted the
attached document entitled “St. Lawrence River Valley Redevelopment Agency Financial
Statements, December 31, 2016 and 2015;”
NOW, THEREFORE, BE IT RESOLVED that the St. Lawrence River Valley
Redevelopment Agency accepts and approves said report.
Move:
Second:
VOTE
McNeil
Strait
Murphy
Carroll
Forsythe
Strait
Forsythe
AYE
X
X
NAY
ABSTAIN
ABSENT
X
X
I HEREBY CERTIFY that I have compared this copy
of this Resolution with the original record in this office,
and that the same is a correct transcript thereof and of
the whole of said original record.
/s/
X
Lori Sibley
03/28/17
S T. LA W RE N CE R IV E R V A L LE Y
RE D EV E LO P M EN T A G E NC Y
FI NA NC IA L S T A TEM EN T S AN D
SUP P L EM EN TA RY I N FO RM AT IO N
YE AR S E ND E D D E C E M B ER 3 1 , 2 0 1 6 a nd 2 0 1 5
S T. LA W RE N CE R IV E R V A L LE Y R ED E VE L O P M EN T A G E N CY
P age s
I NDE P E ND E NT AUDI T OR ’ S R E P O RT
1 - 2
FI N AN CI AL ST AT E ME NT S
Sta te me n t s o f F i na nc ia l P o sit io n
Dece mb er 3 1 , 2 0 1 6 And 2 0 1 5
3
Sta te me n t s o f Ac ti v it ie s
fo r t he Yea r s E nd ed Dec e mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
4
Sta te me n t s o f C as h F lo ws
fo r t he Yea r s E nd ed Dec e mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
5
No te s to Fi na n ci al St at e me n t s
SUP P LE M ENT ARY I N F OR M AT I O N
Rep o r t o n I n ter na l Co n tr o l a nd Co mp li a nce
6 - 10
11 - 12
13 - 15
301 Ford Street
P.O. Box 327
Ogdensburg, NY 13669
(315) 393-7502
Fax: (315) 393-9231
www.pmhvcpa.com
IN D EP EN D EN T AU D I TO R' S R E P O R T
B o ar d o f D ir e cto r s
St. La wr e nc e Ri v er V al l e y R ed e ve lo p me n t Ag e n c y
Ca n to n, Ne w Yo r k
Re po rt o n t he F i na n cia l St a t e me nt s
W e ha v e a ud i ted t h e ac co mp a n yi n g f i na nc ia l s tat e me n ts o f t h e S t. La wr e nc e R i ver V al le y
Red e velo p me nt Age n c y ( S L RV R A) ( a no np r o f it o r ga n iz at io n) , wh ic h co mp r i se t he st ate me nt s
o f fi na n ci al p o s it io n a s o f D ece mb er 3 1 , 2 0 1 6 and 2 0 1 5 , and t h e r ela ted s ta te me n t s o f
act i vi tie s a nd ca s h flo ws fo r t h e year s t he n end ed , a nd t he r e la ted no t e s to t he fi n a nc ial
st ate me nt s.
Ma na g em e nt’ s Re sp o n si b ili ty f o r t he F ina nc ia l Sta tem en ts
Ma na ge me nt i s r e sp o n s ib le f o r t h e p r ep ar a tio n a nd fa ir p r e se n ta tio n o f t he se fi na n ci al
st ate me nt s i n acco r d a nc e wi t h ac co u nt i n g p r i nc ip le s ge n er a ll y a ccep ted in t he U n it ed S ta te s
o f A mer ic a; t hi s i nc l ud es t he d e si g n, i mp le me nt at io n, a nd ma i nt e na nc e o f i n ter n al co ntr o l
r ele v a nt to t he p r ep ar a t io n a nd fa ir p r e se nt at io n o f f i na nc ia l s tat e me n ts t h at ar e fr e e f r o m
ma ter ia l mi s s tat e me n t, wh et h er d ue to fr a ud o r er r o r .
A ud i to r’ s R esp o n sib il it y
O ur r e sp o ns ib i li t y i s to exp r e ss a n o p i nio n o n t he se f i na nc ia l s ta te me n t s b a sed o n o u r a ud i ts .
W e co nd uct ed o ur a ud i ts i n ac co r d a nc e wi t h aud it i n g sta nd ar d s g e ne r all y acc ep ted i n t h e
U ni ted St at es o f A me r ica a nd t he sta nd ar d s ap p li cab l e to f i na nc ia l a ud i t s co n ta i ned i n
Go ve rn m en t A u d it in g S ta n d a rd s, i s s ued b y t he Co mp tr o ll er Ge ne r al o f t h e U ni ted S ta te s .
T ho se s ta nd ar d s r eq u ir e t ha t we p l a n a nd p er fo r m t he a ud i t to o b t ai n r ea so nab l e a s s ur a n ce
ab o u t wh et h er t h e fi n a n cia l sta te me n t s a r e fr e e fr o m mat er i al mi s sta te m en t.
An a ud it i n vo l v es p er f o r mi n g p r o c ed ur e s to o b tai n a ud i t e v id e n ce ab o ut t h e a mo u n ts a nd
d is clo s ur e s i n t h e f i na nc ia l s tat e me n ts . T he p r o ced ur e s s ele ct ed d e p end o n t he a ud ito r ’s
j ud g me nt , i nc l ud i n g t he as se s s me n t o f t he r is k s o f ma ter i al mi s s ta te m en t o f t he f i na n cia l
st ate me nt s, wh e t h er d u e to fr a ud o r er r o r . I n ma k i n g t ho se r i s k a ss es s me n t s, t he a ud ito r
co n s id er s i n ter na l co ntr o l r ele v a nt to t he e n ti t y’ s p r ep ar at io n a nd fa i r p r ese n ta tio n o f t h e
f i na nc ia l s ta te me n t s i n o r d er to d es i g n a ud i t p r o ced ur es t ha t ar e ap p r o p r ia te i n t h e
cir c u ms t a nc es , b u t no t fo r t h e p ur p o se o f e xp r es si n g a n o p i n io n o n t h e ef f ect i ve n es s o f t he
en ti t y’ s i nt er nal co n tr o l . Ac co r d i n g l y, we e xp r es s no s uc h o p i n io n. An a ud i t al so i nc l ud e s
ev al ua ti n g t h e ap p r o p r iat e ne ss o f acco u n ti n g p o li cie s us ed a nd t h e r ea so nab le n es s o f
si g n i fi ca nt ac co u nt i n g es ti ma te s mad e b y ma na g e me n t, a s we ll a s e va l ua ti n g t he o v er a ll
p r es e nta tio n o f t h e fi n a n cia l sta te me n t s.
W e b eli e ve t h at t he a ud it e v id e nc e we ha v e o b t ai ned i s s u f fi ci e nt a nd a p p r o p r iat e to p r o v id e
a b a si s fo r o ur a ud i t o p i nio n .
P age 1
Op i nio n
I n o ur o p i n io n, t he f i n an cia l s tat e me n ts r e f er r ed to
r esp ect s, t he fi na n ci al p o si tio n o f t h e S L RV R A as o f
ch a n ge s i n i ts n et a ss e ts a nd i t s ca s h f lo ws f o r t he
acco u nt i n g p r i nc ip le s g e ner al l y a ccep ted i n t h e U ni ted
ab o ve p r e se nt fa ir l y, i n al l ma ter ia l
D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 , a nd t h e
ye ar s t h e n e nd e d i n ac co r d a n ce wi t h
Sta te s o f Ame r ic a.
Ot he r Ma tt er s
Oth e r I n fo rma tio n
O ur aud it wa s co nd uct e d fo r t he p ur p o se o f fo r mi n g a n o p i nio n o n t he f i na nc ia l st ate me nt s a s
a wh o le. T he acco mp a n yi n g sc hed u le o f f u n ct io n al e xp e n s es o n P a g e 1 2 i s p r e se n ted fo r
p ur p o se s o f ad d i tio na l an al ys i s a nd i s no t a r e q ui r ed p ar t o f t he f i na n cia l st at e me n ts . S uc h
in f o r ma tio n i s t he r e sp o n sib il it y o f ma na g e me n t and wa s d er i v ed f r o m a nd r el at es d ir ec tl y to
th e u nd er l yi n g ac co u nt i n g a nd o t h er r eco r d s u s ed to p r ep ar e t he f i na n cia l s tat e me n t s. T he
in f o r ma tio n h as b ee n s ub j ect ed to t he a ud i ti n g p r o ced ur e s ap p li ed i n t h e a ud i t o f t he
f i na nc ia l s tat e me n ts a nd cer ta i n ad d iti o nal p r o c ed ur e s, i nc l ud i n g co mp ar i n g a nd r e co nci li n g
s uc h i n fo r ma tio n d ir ec tl y to t he u nd er l yi n g ac c o u n ti n g a nd o t her r eco r d s u sed to p r ep ar e t he
f i na nc ia l st ate me nt s o r to t he fi n a nc ial st ate me n t s t he ms e l ve s, and o t h er ad d i tio na l
p r o ced ur e s i n acco r d a nc e wi t h a ud it i n g st a nd ar d s g e ner a ll y ac cep t ed i n t he U n it ed Sta te s o f
A mer ica. I n o ur o p i n io n, t h e i n fo r ma t io n i s fai r l y s tat ed , i n a ll ma ter ia l r esp ec ts , i n r e lat io n
to t he fi n a nci al s tat e me nt s a s a wh o l e.
O t he r R epo rt i ng Re qu i red by Go v er nm en t Aud iti ng Sta nd a rd s
I n ac co r d a nc e wi t h Go vern men t A u d it in g S ta n d a rd s , we ha ve al so i s s ued o ur r ep o r t d at ed
Mar c h 1 5 , 2 0 1 7 , o n o u r co n s id er a tio n o f t he S L RV R A’ s i nt er na l c o nt r o l o ver f i na n cia l
r ep o r ti n g a nd o n o ur t es ts o f i t s co mp li a nce wi t h ce r ta i n p r o v is io n s o f la ws , r e g ula tio n s,
co n tr a ct s, gr a nt a gr ee m en t s and o t her ma tter s. T he p ur p o se o f t hat r e p o r t is to d e sc r ib e t h e
sco p e o f o ur t es ti n g o f i nter n al co ntr o l o ver f i na nc ia l r ep o r ti n g a nd co mp l ia nc e a nd t he
r es u lt s o f t h at te st i n g, and no t to p r o v id e a n o p i n io n o n i n ter n al co n tr o l o v er fi n a nci al
r ep o r ti n g o r o n co mp li an ce. T hat r ep o r t i s an i nt e gr a l p ar t o f a n aud it p er fo r me d i n
acco r d a n ce wi t h Go ve r n men t A u d i tin g S ta n d a rd s i n co n sid er i n g t he S L R V R A’ s i nte r nal
co n tr o l o ver f i na nc ia l r e p o r ti n g a nd co mp li a nce.
Mar c h 1 5 , 2 0 1 7
P age 2
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2016 AND 2015
12/31/2016
12/31/2015
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Cash - Security Deposits
Accounts Receivable
Accrued Interest Receivable
Due from Affiliate
Mortgages and Notes Receivable (Net of Allowance)
$
Total Current Assets
Fixed Assets - Net
LONG-TERM ASSETS
Mortgages and Notes Receivable - Net of Current Portion
TOTAL ASSETS
7,997,203
532
4,022
6,047
2,842
2,065,857
$
9,942,851
531
2,161
1,805
440,710
10,076,503
10,388,058
754,474
783,540
1,120,187
1,277,275
$
11,951,164
$
12,448,873
$
19,978
531
532
$
36,188
3,089
531
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable
Deferred Rental Revenue
Security Deposits Payable
Total Current Liabilities
NET ASSETS
Temporarily Restricted
TOTAL LIABILITIES AND NET ASSETS
$
21,041
39,808
11,930,123
12,409,065
11,951,164
The accompanying notes are an integral part of these financial statements.
Page 3
$
12,448,873
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
2016
Temporarily
Restricted
Unrestricted
SUPPORT AND REVENUE
Rental Income
Interest Income - Banks
Interest Income - Loans
Grant Income
Miscellaneous Income
Net Assets Released
from Restrictions
$
Total Support and Revenue
-
$
Totals
82,315
4,987
56,121
25,000
2,260
$
2015
Temporarily
Restricted
Unrestricted
82,315
4,987
56,121
25,000
2,260
$
-
$
Totals
48,709
7,011
43,425
59,715
2,368
$
48,709
7,011
43,425
59,715
2,368
649,625
(649,625)
-
871,522
(871,522)
-
649,625
(478,942)
170,683
871,522
(710,294)
161,228
EXPENSES
Program Services
Management and General
643,797
5,828
-
643,797
5,828
865,257
6,265
-
865,257
6,265
Total Expenses
649,625
-
649,625
871,522
-
871,522
CHANGE IN NET ASSETS
-
Net Assets - Beginning of Year
-
Net Assets - End of Year
$
-
(478,942)
$
(478,942)
12,409,065
12,409,065
11,930,123
$ 11,930,123
-
$
The accompanying notes are an integral part of these financial statements.
Page 4
(710,294)
(710,294)
-
13,119,359
13,119,359
-
$ 12,409,065
$ 12,409,065
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
12/31/2016
OPERATING ACTIVITIES
Change in Net Assets
$
ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Depreciation
Bad Debt Reserve
Changes in Operating Assets and Liabilities
Cash - Security Deposits
Accrued Interest Receivable
Accounts Receivable
Due from Affiliate
Accounts Payable
Deferred Rental Revenue
Security Deposits Payable
Net Cash Provided (Used) By Operating Activities
INVESTING ACTIVITIES
New Mortgages and Notes
Payments Received on Mortgages and Notes
Fixed Asset Purchases
Net Cash Provided (Used) By Investing Activities
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
(478,942)
12/31/2015
$
29,066
95,000
22,789
80,000
(1)
(4,242)
(1,861)
(2,842)
(16,210)
(2,558)
1
(531)
820
(2,161)
35,327
651
531
(382,589)
(572,868)
(2,378,231)
815,172
-
(157,287)
445,789
(949)
(1,563,059)
287,553
(1,945,648)
(285,315)
9,942,851
$
(710,294)
7,997,203
The accompanying notes are an integral part of these financial statements.
Page 5
10,228,166
$
9,942,851
S T. LA W RE N CE R IV E R V A L LE Y R ED E VE L O P M EN T A G E N CY
NO T ES TO F IN AN CI A L S TA T EM EN T S
DE C EM B ER 3 1 , 2 0 1 6
NO T E 1 -
H I S TO R Y A ND B A S IS O F F IN AN CI A L S TA T EM EN T P R E S EN T A TI O N
T he S t. La wr e nc e R i ve r Val le y Red e v elo p me n t Age nc y ( S L R V R A) i s a j o int
act io n a g e nc y fo r me d o n J u ne 2 , 2 0 1 0 to ma k e u se o f c er ta i n Ne w Yo r k P o wer
Au t ho r it y ( NYP A) a s se t s fo r t he p ur p o s e s o f e co no mi c d e ve lo p me n t i n t he S t.
L a wr e n ce Va lle y a nd s u r r o u nd i n g co m m u n i tie s. U nd er t he 2 0 1 0 a gr ee me n t, t he
Ne w Yo r k P o wer Au t ho r it y ma d e a v ai lab le fo r e co no mi c d e ve lo p me n t p ur p o se s a
$ 1 6 mil lio n f u nd a nd 2 0 me g a wa t ts o f el ectr ic al p o we r ge ner at io n fr o m h yd r o elec tr ic fac il it ie s si t uat e d o n t h e S t. La wr e nc e R iv er . A p a r al le l a gr e e m en t, a lso
d ated J u ne 2 , 2 0 1 0 , b et we e n t he S LR VR A a nd t h e S t. La wr e nc e Co u n t y
I nd u str ia l D e ve lo p me n t Ag e nc y Lo ca l De ve lo p m en t Co r p o r a tio n ( S LC I D A - L D C)
p r o v id ed t he me c ha n i s m fo r ad mi n i st er i n g t he se as se t s. T he S LRV R A ha s no
e mp lo ye es .
As p er t h e 2 0 1 0 a g r e e me nt s, NYP A had p r o vi d ed t h e $ 1 6 mi l lio n to t h e
S L RV R A a nd t he S LC I D A- LD C.
O n Oc to b e r 1 8 , 2 0 1 3 , NYP A e x ec ut ed a n
agr ee me n t wi t h t he M as se n a El ectr ic Dep ar t me n t ( a s p r o p o sed i n th e 2 0 1 0
agr ee me n t s) t h at mad e t he 2 0 me g a wa t ts o f ele c tr ic it y al lo ca ted to t he S L RV R A
av ai lab l e fo r eco no mi c d ev elo p me n t p r o j e ct s i n St. La wr e nc e Co u nt y.
NO T E 2 -
SUM M ARY O F S I G NI FI CA NT A CCO UN T I N G PO LI C I ES
T he f i na nc ia l st at e me n t s o f St. La wr e n ce R i ve r Vall e y R ed e ve lo p me n t Age nc y
( S LRV R A) h a ve b ee n p r ep ar ed o n t he accr u al b as is . T h e si g n i fi ca nt a cco u nt i n g
p o lic ie s fo l lo wed a r e d e scr ib ed b elo w to e n h a nc e th e us e f ul ne s s o f t he f in a nc ial
st ate me nt s to t h e r e ad er .
F ina nc ia l St a t e me nt P r ese nt a t io n
T he S L R V R A ha s ad o p ted F AS B A S C 9 5 8 - 2 0 5 .
Und er t h i s s ta n d ar d , t he
S LRV R A i s r eq u ir ed to r ep o r t i n fo r mat io n r e g ar d i n g i t s fi na n ci al p o s itio n a nd
act i vi tie s a cco r d i n g to thr ee c la s se s o f net as se ts : u nr e str ic ted n et a s set s,
te mp o r ar il y r e str ic ted ne t a s se ts, a nd p er ma ne n tl y r e str ict ed ne t a s set s. I n
ad d it io n, t he S LRV R A is r eq uir ed to p r e se nt a sta te me n t o f ca s h f lo ws . As
p r o v id ed b y t hi s s ta te m en t, t he S L RV R A ha s ar r an g ed it s fi n a nc ial st at e me nt s to
p r es e nt t he t hr ee cl as s es o f n et a ss et s r eq u ir ed , a s ap p li cab l e.
Co nt ri bu t io n s
T he S L R V R A ha s a l so ad o p ted F A S B A S C 9 5 8 - 6 0 5 . I n a cco r d a n ce wi t h t h is
st a nd ar d , co ntr ib ut io ns r ece i ved ar e r e co r d e d as u nr e str ict ed , te mp o r ar i l y
r es tr i cted , o r p er ma ne n tl y r e str ic ted s up p o r t d ep e nd i n g o n t he e x is te nce o r
na t ur e o f a n y d o no r r e st r ict io n s.
Us e o f E st i ma t e s
T he p r ep ar a tio n o f fi na n cia l st at e me n ts i n co n fo r mit y wi t h a cco u nt i n g p r i ncip le s
ge n er a ll y ac cep ted i n t h e U ni ted S ta te s o f Amer ica r eq u ir e s ma na g e me n t to ma k e
es ti ma te s a nd as s u mp tio n s t hat a f f ect c er ta i n r e p o r ted a mo u nt s a nd d is clo s ur e s.
Acco r d i n gl y, ac t ua l r e s u lt s co u ld d i f f er fr o m t ho se es ti ma t es .
P age 6
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
NO T E 2 -
SUM M ARY O F S I G NI FI CA NT A CCO UN T I N G PO LI C I ES ( Co n ti n u e d )
Ca s h a n d Ca s h Eq u iv a l ent s
Fo r t he p ur p o se s o f r ep o r ti n g ca s h f lo ws , ca s h a nd ca s h eq u i va le n ts i n cl ud e ca s h
o n h a nd , a mo u nt s d u e f r o m b a n k s, a nd sa vi n g s i n str u me n t s wi t h a ma tu r i t y o f
le ss t ha n t hr e e mo n t hs.
M o rt g a g es a n d No t e s R eceiv a b le
Mo r t ga g es a nd no te s r ecei v ab l e ar e r ep o r ted a t t he ir p r i n cip a l a mo u n t s
o ut s ta nd i n g, n et o f a llo wa n ce s fo r p o s sib le cr ed it lo ss e s. I nt er e st r e ve n ue o n t h e
mo r t ga ge s a nd no te s ar e a cr ed it to i nt er e st i nco me b a sed o n lo a n p r i ncip al
a mo u n t s o ut s ta nd i n g at ap p r o p r ia te i nt er e st r at e s.
Te mp o ra r ily Re st rict ed Net A ss et s
T he te mp o r ar i l y r e s tr ic t ed n et a s se ts r ep r e se n t a ct i vi t y r el at ed to a $ 1 6 ,0 0 0 ,0 0 0
gr a n t fr o m t he Ne w Yo r k P o we r Au t ho r it y.
In co me Ta xe s
T he S LRV R A is e x e mp t f r o m f ed er a l i nco me t a x u nd er Se ct io n 5 0 1 ( c) ( 3 ) o f t h e
I n ter na l R e ve n ue Co d e and i s al so d ul y e stab li s hed u nd er S ect io n 4 0 2 o f t he
No t - Fo r -P r o fi t Co r p o r at io n la w o f t he S ta te o f Ne w Yo r k. Fo r t a x r ep o r ti n g
p ur p o se s, t h e acco u n t s o f t he S LR VR A ar e co n so lid a ted wit h t ho s e o f t h e
S L CI D A- L D C fo r r ep o r t in g a s a co mb i n ed e n ti t y .
Adv ert i s ing
T he S L R V R A e xp e ns e s ad ver ti si n g co s t s as th e y ar e i n c ur r ed . A d ver ti s i n g
exp e ns e s fo r t he ye ar s end ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 we r e $ 2 0 , 2 0 3 a nd
$ 3 6 ,9 4 6 , r e sp e ct i vel y.
De prec ia t io n
Dep r e cia tio n i s c alc u la t ed o n b ui ld i n g s a nd i m p r o ve me nt s o n t he s tr a i g ht - l i ne
me t ho d o v er t he a ss et s es ti ma ted u se f ul l i fe . D ep r ec iat io n e xp e n se fo r th e ye ar s
end ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 we r e $ 2 9 ,0 6 6 , a nd $ 2 2 ,7 8 9 , r e sp ec t iv el y.
NO T E 3 -
M O RT GA G E S AN D N O T E S R E C E IV AB L E
T he S L R V R A c ar r i es i ts mo r t ga ge s a nd no t e s r ecei v ab le at co st r ec o g n izi n g
in ter es t i n co me o n t h e a ccr ua l b as i s a s sp eci f ied in t he var io us a gr ee me nt s. T h e
S LRV R A e va l uat e s t he co ll ect ab i li t y o f it s mo r tg a ge s a nd no te s r e cei v ab le a nd
th e B o ar d es tab li s he s wr i te -o f f s wh e n co n s id er ed nec e ss ar y. T h er e wer e no
wr i te -o f f s d ur i n g t he y ear s e nd ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 . T h e a mo u n t
ad d ed to t he lo a n lo s s r ese r ve at De ce mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 wa s $ 9 5 ,0 0 0 a nd
$ 8 0 ,0 0 0 , r e sp ec ti v el y. T he lo a n lo s s r e ser v e at D ece mb er 3 1 , 2 0 1 6 and 2 0 1 5
wa s $ 1 7 5 ,0 0 0 a nd $ 8 0 , 0 0 0 , r e sp ec ti ve l y.
P age 7
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
NO T E 3 -
M O RT GA G E S AN D N O T E S R E C E IV AB L E ( Co nt i n ued )
Mo r t ga g es a nd no te s r ecei v ab l e b a la nc es at Dece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
co n s is ted o f t he fo l lo wi n g:
Ansen
BlastBoss, Inc.
City of Ogdensburg
Curran Renewable Energy
First Class Aire
High Peaks Winery
Hoosier Magnetics
Hozmerica, LLC
Massena BDC Rail
NC Dairy, LLC
Nicholville Telephone Co.
Riverside Iron, LLC
SLCIDA - CIB
SLCIDA Rail Loan
SLIC Network Solutions
Structural Wood
Swift Labs
Town of Louisville
Town of Massena
Date
Due
Interest
Rate
Original
Amount
03/04/16
06/17/14
01/26/15
03/16/16
09/12/14
04/30/14
09/18/15
07/21/15
05/05/14
12/02/11
12/09/11
06/27/14
12/04/14
08/30/16
12/09/11
12/20/11
09/22/16
03/23/15
11/19/13
03/01/16
05/01/19
01/26/20
03/01/17
09/01/29
05/01/29
09/01/20
07/01/20
12/30/16
12/01/16
12/01/18
07/01/24
11/01/21
09/01/19
12/01/18
12/01/21
10/01/23
03/01/17
03/01/16
2.750%
2.650%
1.000%
2.750%
2.625%
2.625%
2.625%
2.625%
0.000%
2.625%
4.000%
2.625%
1.000%
1.500%
4.000%
2.625%
2.750%
1.000%
1.000%
$ 241,954
37,788
23,532
1,356,278
51,500
36,500
100,000
17,500
197,504
400,000
388,926
100,000
700,000
750,000
436,074
150,000
30,000
16,000
60,557
Less Allowance for Bad Debts
Balance
2016
$
226,051
19,836
15,049
1,354,391
45,195
31,812
79,943
12,740
78,162
636,081
750,000
81,007
29,365
1,412
3,361,044
(175,000)
$ 3,186,044
Balance
2015
$
27,667
19,302
47,652
34,020
98,330
15,823
197,504
77,386
194,679
86,564
668,177
214,284
94,516
9,384
12,697
1,797,985
(80,000)
$ 1,717,985
F ut ur e ma t ur i ti es o f t h e mo r t ga ge s a nd no t es r e c ei vab le a r e a s fo llo ws :
Dece mb er 3 1 , 2 0 1 7
2018
2019
2020
2021
T her ea f ter
$
$
NO T E 4 -
2 ,2 4 0 ,8 5 7
1 3 2 ,4 5 7
1 3 0 ,8 2 9
1 0 7 ,5 2 7
9 1 ,0 8 9
6 5 8 ,2 8 5
3 ,3 6 1 ,0 4 4
LO AN S IN AR R EA R S
T her e a r e no lo a n s i n ar r ear s a t t h is t i me.
NO T E 5 -
LO AN S IN D EF AU L T
T her e a r e no lo a n s i n d e fa u lt at t h is ti me.
NO T E 6 -
LO AN S WR I T T EN O F F
T her e wer e no lo a ns wr it te n o f f i n 2 0 1 6 o r 20 1 5 .
r es er ve.
P age 8
S ee No te 3 fo r l o an lo s s
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
NO T E 7 -
CO M M UNIT Y D EV E L O P M EN T EN V IRO NM EN T A L IM PRO V EM E NT
PRO J E C TS
T he S L R V R A mad e gr a nt a war d s d ur i n g t he ye ar s 2 0 1 1 t hr o u g h 2 0 1 6 as p ar t o f
it s Co m mu n i t y De ve lo p me n t E n v ir o n me n ta l I m p r o ve me nt P r o j ec t s ( CD E I P ), as
au t ho r i zed b y t he J u n e 2 , 2 0 1 0 co ntr ac ts . T he o r i gi na l gr a n t a war d a m o u n ts a nd
exp e nd i t ur e s a s o f De ce mb e r 3 1 , 2 0 1 6 ar e as f o l lo ws :
Date of
Grant
Award
Award
NO T E 8 -
Balance
of Grant
Expended
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
2016
$
540,000
556,694
403,899
415,152
364,146
475,640
$
55,000
-
$ 254,807 $ 100,000 $
4,315 $ 72,280
483,552
53,874
15,000
194,798
140,253
40,000
59,081
208,271
40,937
-
Total
$ 2,755,531
$
55,000
$ 738,359
$ 348,672
$ 218,649
$ 361,488
2016
$
Remaining
36,151
4,268
42,800
58,209
4,500
$
17,447
28,848
105,000
265,000
471,140
$ 145,928
$
887,435
F I XE D AS S E T S
Fi x ed a s set s at Dec e mb e r 3 1 , 2 0 1 6 a nd 2 0 1 5 co n si s ted o f :
2016
Ma ss e na Lo t 1 8 - B u ild i n g a nd I mp r o ve me nt s
Ma ss e na Lo t 1 9 - B u ild i n g a nd I mp r o ve me nt s
L es s : Acc u mu l a ted Dep r eci at io n
NO T E 9 -
$ 417,922
4 3 2 ,7 4 0
8 5 0 ,6 6 2
( 9 6 ,1 8 8 )
$ 7 5 4 ,4 7 4
2015
$ 4 1 7 ,9 2 2
4 3 2 ,7 4 0
8 5 0 ,6 6 2
( 6 7 ,1 2 2 )
$ 7 8 3 ,5 4 0
SUB S E QU E N T EV E N T S
Ma na ge me nt ha s r e v ie we d a nd e val u at ed all eve n t s a nd t r a n sac tio n s f r o m
J an ua r y 1 , 2 0 1 7 t hr o u g h Mar c h 1 5 , 2 0 1 7 , t h e d a te t h e fi n a nci al st at e me nt s wer e
av ai lab l e to b e i s s ued , fo r p o s sib le d i sclo s u r e a nd , o r , r eco g n it io n i n t he
f i na nc ia l st ate me nt s. T her e wer e no e ve n t s o r tr an s act io n s t hat e x i st ed wh ic h
wo u ld p r o vid e ad d it io n al p er t i ne n t i n fo r ma tio n ab o ut co nd it io n s at t he b ala nce
s hee t d a te wh i c h ar e r eq ui r ed to b e r eco g n ized o r d is clo sed i n t he a cco m p an yi n g
f i na nc ia l s ta te me n t s.
NO T E 1 0 - CO N C EN T RA T IO N O F CR E DI T R IS K
At De ce mb e r 3 1 , 2 0 1 6 , th e S L R V R A had b a n k b ala nc e s to ta li n g $ 7 ,9 9 5 , 9 8 5 . A
co mb i na tio n o f f ed er a l d ep o s ito r y i n s ur a n ce a n d se c ur i ti es p l ed ged a n d h eld b y
th e b a n k f u l l y co ver ed t he se b a n k b a la n ce s.
P age 9
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2016
NO T E 1 1 - RE CO G N IT IO N O F C ER T A IN G R AN T R EV EN U E AN D EXP E ND I TU R E S
Occa s io na ll y, t he S L R V R A ( t h e “gr a n te e”) ap p l ie s fo r a nd r ec ei ve s gr a nt s f r o m
go ver n me nt a ge nc ie s and o t her o r g a ni zat io n s.
T h es e gr a n ts ar e u s ua ll y
“r ei mb ur s e me n t gr a nt s” , i.e., t h e mo n ie s fr o m the gr a n t ar e o nl y p a i d to th e
gr a n te e a s r e i mb ur se me nt s a ft er t h e gr a n tee ha s d o c u me n t ed to t he gr an to r t hat
th e gr a n tee ha s a c hi e v ed d e fi ned b e nc h ma r ks , p aid o ut r eq u ir ed f u nd s, a nd
o th er wi s e co mp li ed wi t h a ll o t her r eq uir ed g r a nt co nd i tio n s. P r o j ec ts in wh i c h
s uc h g r a nt s ar e i n vo l v e d o f te n sp a n se ver al fi s cal ye ar s a nd lo n g d e la ys i n t h e
r ei mb ur se me n t p r o c es s ar e fr eq ue nt .
Co n seq ue n tl y, i n ca se s i n vo l vi n g
r ei mb ur se me n t gr a nt s, t he S LR V R A d o e s no t a ccr ue e xp ec ted gr a n t r e ve n u e o r
r ece i vab l es u n ti l i t ha s co mp li ed wi t h t he co nd itio n s o f t he gr a n t a gr e e me nt( s)
and s ub mi t ted t he ne ces s a r y d o c u me n ta tio n t ha t wi l l t r i g ger t he p a y me n t
p r o ce ss.
U n ti l s uc h d o cu me n t at io n h as b e e n s ub mi tted , and a cce p ted , t he
gr a n to r s ti ll h as s ub s ta n tia l d is cr e tio n to d e n y o r r ed uce p a y me n t. Acc o r d i n g l y,
at year e nd t he S L R V R A d o e s no t ac cr ue a n y exp e ns e s o r p a yab le s a s so ci ated
wi t h i te ms to b e p a id o ut fo r f u t ur e gr a n t r ei m b ur se me n t u n ti l t h e S LRV R A is
sa ti s fi ed t ha t it ha s co mp lied wi t h all gr a n t r ei mb ur s e me n t eli g ib i li t y
r eq u ir e me n t s. T he se i te ms ar e u s ua ll y p aid o ut in t h e s ub s eq ue n t p er io d a nd wi l l
b e r eco r d ed a s p r o j ect e xp e n se s. As o f D ece mb er 3 1 , 2 0 1 6 , t h er e wer e no a ct i ve
gr a n t s o f t hi s na t ur e.
T he S LR V R A al so f u nd s a gr a nt p r o gr a m o f it s o wn – t he Co m mu n i t y
De ve lo p me n t E n v ir o n me nt al I mp r o ve me nt P r o gr a m. S i n ce t h es e gr a nt s ar e al so
r ei mb ur se me n t gr a n ts , t he S LRV R A ad o p t s t he s a me p o l ic y wh e n ac ti n g a s a
gr a n to r t h at is d es cr ib e d ab o v e wh e n it is a gr an tee , i. e., i t d o e s n ’t a ccr ue t h e
exp e ns e u n ti l t h e gr a nte e ha s d o c u me nt ed sa ti s f acto r il y t ha t it ha s co mp lied wi t h
th e gr a nt co nd it io ns . As o f D ece mb er 3 1 , 2 0 1 6 , th er e wer e no ac ti v e gr a n t s o f
th i s na t ur e.
NO T E 1 2 - RE L A T ED PA R TY T R AN SA C TI O N S
T he S L R V R A i s r ela ted to t he fo l lo wi n g e n ti ti es :
•
St. L a wr e nce Co u n t y I n d u str ia l De v elo p me n t A ge n c y Lo c al D e ve lo p me nt
Co r p o r a tio n ( S L C I D A- L DC )
- P r o gr a m Ad mi n i s tr a ti v e Agr e e me n ts .
•
Gr ea ter Ma s se na E co no mi c De ve lo p me n t F u nd ( GME DF)
- P ar ti cip a tio n Lo a n Ag r ee me n ts .
Ad mi n is tr a ti v e fe es p a i d to t he S LCI D A - L D C b y S L R V R A to t aled $ 3 0 0 ,0 0 0 fo r
b o t h 2 0 1 6 a nd 2 0 1 5 .
A p ar t ic ip a tio n lo a n a g r ee me n t b e t we e n t h e G MED F a nd t he S LR V R A r e s ul ted
in a n acco u n t p a yab l e to t he S L RV R A b y t h e GM ED F o f $ 2 ,8 4 2 at
Dece mb er 3 1 , 2 0 1 6 .
P age 1 0
SUP P L EM EN TA RY I N FO RM AT IO N
P age 1 1
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
SCHEDULE OF FUNCTIONAL EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Program
EXPENSES
Advertising
Accounting
Contractual
Community Development
D & O Insurance
Depreciation
Insurance
Legal Expenses
Miscellaneous
Office Supplies
Repairs and Maintenance
Underwriting Fees
Utilities
Bad Debt Reserve
Total Expenses
2016
Management
and General
Totals
Program
2015
Management
and General
Totals
$
20,203
344,300
145,928
29,066
6,931
440
1,929
95,000
$
2,969
571
2,273
15
-
$
20,203
2,969
344,300
145,928
571
29,066
6,931
2,273
15
440
1,929
95,000
$
36,946
348,600
361,488
22,789
11,092
169
550
3,623
80,000
$
3,783
454
1,920
30
78
-
$
36,946
3,783
348,600
361,488
454
22,789
11,092
1,920
30
78
169
550
3,623
80,000
$
643,797
$
5,828
$
649,625
$
865,257
$
6,265
$
871,522
See Independent Auditor's Report.
Page 12
IN D EP EN D EN T AU D I TO R’ S R EP O R T O N I NT E RN A L CO N T RO L O V ER
F I NA NC IA L R EP O R T I N G A ND O N CO M PL I AN CE A ND O T H ER M AT T E RS
B AS E D O N A N A UD I T O F F IN AN C IA L S TA T EM EN T S P E RF O RM E D I N
AC CO R DA NC E W I TH GO V E RN M ENT AU DI T IN G ST AN D A RD S
P age 1 3
301 Ford Street
P.O. Box 327
Ogdensburg, NY 13669
(315) 393-7502
Fax: (315) 393-9231
www.pmhvcpa.com
IN D EP EN D EN T AU D I TO R’ S R EP O R T O N I NT E RN A L CO N T RO L O V ER
F I NA NC IA L R EP O R T I N G A ND O N CO M PL I AN CE A ND O T H ER M AT T E RS
B AS E D O N A N A UD I T O F F IN AN C IA L S TA T EM EN T S P E RF O RM E D I N
AC CO R DA NC E W I TH GO V E RN M ENT AU DI T IN G ST AN D A RD S
B o ar d o f D ir e cto r s
St. La wr e nc e Ri v er V al l e y R ed e ve lo p me n t Ag e n c y
Ca n to n, Ne w Yo r k
W e ha v e a ud i ted , i n acc o r d an ce wi t h t he a ud i ti n g sta nd ar d s g e ner a ll y a c cep ted i n t he U ni ted
Sta te s o f Ame r i ca a nd t he s ta nd ar d s ap p l ic ab le to f i na nc ia l a ud it s co n tai n ed i n Go ve rn men t
Au d it in g S ta n d a rd s is s ued b y t he Co mp tr o ll er Ge ner al o f t he U n ited St ate s, t he fi na n ci al
st ate me nt s o f t he St. La wr e nc e R i ver Va lle y R e d ev elo p me n t Ag e nc y ( S L R V R A) ( a no np r o fi t
o r ga n iz at io n) , wh i c h co mp r i se t he st ate me nt o f fi n a nci al p o si tio n a s o f D ece mb er 3 1 , 2 0 1 6 ,
and t he r e lat ed st ate me nt s o f a ct i vi tie s a nd c as h f lo ws f o r t he ye ar t he n e nd ed , a nd t he
r ela ted no t es to t he f i na nc ia l s tat e me n ts , a nd ha ve is s ued o ur r ep o r t t he r eo n d a t ed
Mar c h 1 5 , 2 0 1 7 .
In t er na l Co nt ro l O v e r F ina nc ia l Re po r t i ng
I n p la n ni n g a nd p er fo r mi n g o ur a ud it o f t h e f i na nc ia l s ta te me n t s, we co n sid er ed t h e
S LRV R A’ s i n ter n al co n tr o l o v er f i na nc ia l r ep o r ti n g ( i nt er na l co n tr o l) t o d ete r mi ne t h e a ud it
p r o ced ur e s t hat ar e ap p r o p r iat e i n t he cir c u ms t a nce s fo r t he p u r p o se o f e xp r e s si n g o ur
o p i nio n o n t he fi n a nci al sta te me n t s, b ut no t fo r the p ur p o se o f e xp r e s si n g a n o p i n io n o n t h e
ef f ec ti ve n e ss o f t he S L RV R A’ s i n ter na l co n tr o l. Acco r d i n g l y, we d o n o t e xp r e s s a n o p i nio n
o n t he e f f ec ti v e ne ss o f t he S L R V R A’ s i nt er na l c o nt r o l.
A d ef ic ien c y in in te rn a l co n t ro l e x is t s wh e n t he d e si g n o r o p er a tio n o f a co n tr o l d o es no t
allo w ma n a ge me nt o r e mp lo ye e s, i n t he n o r mal co ur se o f p er fo r mi n g t hei r a s si g n ed
f u nc tio n s, to p r e v e nt , o r d ete ct a nd co r r e ct, mi s s tat e me n t s o n a t i m el y b a si s. A ma te ria l
wea kn e ss i s a d e f ic ie nc y , o r a co mb i n at io n o f d e f ici e nc ie s, i n i n ter n al co nt r o l, s u c h t h at t her e
is a r ea so nab le p o s s ib i l it y t h at a ma t er ia l mi s s tat e me n t o f t he e n ti t y’ s fi n a nc ial st at e me n ts
wi l l no t b e p r e ve n ted , o r d etec ted a nd co r r ec ted o n a t i me l y b a si s. A s ig n if ica n t d ef ic ien c y
is a d e f ic ie nc y, o r a co mb i nat io n o f d e fi ci e nci e s, i n i n ter n al co ntr o l t h a t i s le s s s e ver e t h a n a
ma ter ia l we a k ne s s, ye t i mp o r ta n t e no u g h t o mer i t a tte n tio n b y t ho s e c ha r ged wi t h
go ver n a nce .
O ur co n sid e r at io n o f i nt er na l co nt r o l wa s f o r th e l i mi ted p ur p o se d esc r ib ed i n t he f ir st
p ar a gr ap h o f t h i s sec tio n a nd wa s no t d e si g n ed to id e nt i f y a ll d e f ici e nc ie s i n i n ter na l co ntr o l
th at mi g h t b e ma te r ia l wea k ne s se s o r s i g ni f ica n t d ef ic ie nc ie s. G i ve n t h e se l i mi ta tio n s, d ur i n g
o ur a ud it we d id no t i d en ti f y a n y d e f ic ie nc ie s i n i n ter na l co ntr o l t h at we c o n s id er to b e
ma ter ia l we a k ne s se s. H o we ver , ma ter i al we a k n es se s ma y e x is t t hat h a v e n o t b e e n id e nt i fi ed .
P age 1 4
Co mp l ia nce a n d O t he r M a t t ers
As p ar t o f o b t ai n i n g r e a so nab le a s s ur a n ce ab o ut wh e t her t he S L RV R A’ s f i na nc ia l sta te me n t s
ar e fr ee fr o m ma te r ia l mi s st at e me n t, we p e r f o r med te st s o f i t s co m p lia n ce wi t h c er t ai n
p r o v is io n s o f la ws , r e g ul at io n s, co ntr ac ts, a nd gr a n t a gr e e me n ts , no n c o mp lia n ce wi t h wh ic h
co u ld ha v e a d ir e ct a nd mat er ia l e f fec t o n t he d eter mi n a tio n o f fi n a nci al st ate me nt a mo u n ts .
Ho we v er , p r o v id i n g a n o p i nio n o n co mp li a nce wi t h t ho se p r o v is io n s was no t a n o b j ec ti ve o f
o ur a ud it, a nd acco r d i n gl y, we d o no t e xp r e s s s uc h a n o p i n io n. T he r es ul t s o f o ur te st s
d is clo sed no i ns ta nc e s o f no nco mp lia n ce o r o t her ma tt er s t h at ar e r e q ui r ed to b e r ep o r ted
u nd er Go v e rn men t A u d it in g S ta n d a rd s .
Pur po se o f t h is Re po rt
T he p ur p o s e o f t hi s r ep o r t i s so l el y to d e scr ib e t he sco p e o f o ur t es ti n g o f i nt er nal co ntr o l
and co mp li a nce a nd t h e r es u lt s o f t hat te st i n g, a nd no t to p r o vid e an o p i n io n o n t he
ef f ec ti ve n e ss o f t he O r ga n iza tio n ’ s i nt er nal co nt r o l o r o n co mp li a nce . T his r ep o r t i s a n
in te gr al p ar t o f a n a ud i t p er fo r me d i n a cco r d a nc e wi t h Go ve rn men t A u d itin g S ta n d a rd s i n
co n s id er i n g t h e Or ga n iza tio n ’ s i nt er na l co n t r o l a nd co mp lia n ce.
Ac co r d i n g l y, t hi s
co m mu n ic at io n i s no t s u itab le fo r a n y o t her p ur p o se.
Mar c h 1 5 , 2 0 1 7
P age 1 5