Published On: Mon, Jul 14th, 2014

Finance presents Tribal Audit findings

Annual financial report

SUBMITTED By EBCI FINANCE

 

The EBCI Budget and Finance Department presented the FY13 audited financial statements to Tribal Council on Tuesday, July 8.  Each year, the Tribe has an independent audit to provide reasonable assurance that the financial statements are fairly presented in accordance with generally-accepted accounting principles (GAAP).

The FY13 audit was conducted by the firm of Dixon Hughes Goodman, LLP, of Asheville, and the Tribe received an unqualified or “clean” opinion.

“Budget and Finance has worked very hard to own our financials, an end product that most tribal governments don’t have the privilege of saying,” said Kim Peone, Deputy of Finance.  “It takes a competent team to accomplish this, and it’s a product of our budgeting process where we develop our priorities and quantify them.  The audit report is what we see as a report card for our work.  We are striving for excellence through accountability, transparency, relationships and community.  This audit is the result of that.”

For FY13, the report was expanded from the minimum required basic financial statements to the more Comprehensive Annual Financial Report.  The goal is to provide a report that will be easier to read and understand.  There were two sections added to the report – an Introductory Section and a Statistical Section.  The Introductory Section provides general information about the Tribe and includes narrative updates on major initiatives that were originally highlighted in the annual budgeting process.  The Statistical Section provides information relating to financial trends and reflects the demand for services or the level of services being provided.

The Tribe’s financial position is strong and continues to grow with an increase in net position of $92.9 million to bring the total net position to just over $786 million.  This does not include Component Units or Fiduciary Funds such as the Pension Trust Funds and the Minors Fund.  The 13 percent increase in net position resulted primarily from an increase in cash and investments along with a decrease in long-term debt.

Definitions:

Gaming Proceeds – Net income from gaming operations
Levy Collections – Levy (Sales Tax) collected from businesses licensed by the Tribe. Current levy rate is 7.5%
Privilege Tax Collection – Privilege (Occupancy) tax collected from business licensed by the Tribe. Current privilege tax rate is 3%
DSSF – Debt Service Sinking Fund; for retiring tribal debt.
Market Value – the amount for which something can be sold on a particular market.
Endowment 1 – the tribe’s emergency reserve fund for catastrophic, unforeseen events.
Endowment 2 – the tribe’s capital improvement and business investment reserve fund.
Minors – the Minor’s Trust Fund.
Net Assets/Net Position – is the overall “net worth” of the tribe excluding fiduciary funds such as the employee pension and minors trust fund; those held for the benefit of others.
Net Capital Assets – total value of all capital assets
Capital Asset – an asset with a useful life longer than one year and not intended for sale during the normal course of business.
Business Type – the business or commercial operations of the Tribe, such as the gaming operation.
Long Term Debt – a bank loan or other obligation for a term longer than one year.
Business Type Debt – debt of the business or commercial operations of the Tribe, such as the gaming operation.

 

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