WAYNE COUNTY
SINGLE AUDIT
FOR THE YEAR ENDED DECEMBER 31, 2008
WAYNE COUNTY
TABLE OF CONTENTS
TITLE
PAGE
Independent Accountants' Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Required by Government Auditing Standards ........................................................................................ 1
Independent Accountants' Report on Compliance with Requirements
Applicable to Each Major Federal Program and Internal Control Over
Compliance in Accordance with OMB Circular A-133 ............................................................................ 3
Federal Awards Receipts and Expenditures Schedule ............................................................................. 5
Notes to the Federal Awards Receipts and Expenditures Schedule ........................................................ 7
Schedule of Findings ................................................................................................................................. 9
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1
101*Central*Plaza*South*/*700*Chase
*Tower*/*Canton, *OH*44702*1509*
Telephone:**(330)*438*0617**********(800)*443*9272**********Fax:**(330)*471*0001*
www.auditor.state.oh.us*
INDEPENDENT ACCOUNTANTS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
REQUIRED BY GOVERNMENT AUDITING STANDARDS
Wayne County
428 West Liberty Street
Wooster, Ohio 44691
To the County Commissioners:
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate discretely presented component unit and remaining fund information of
Wayne County, Ohio, (the County) as of and for the year ended December 31, 2008, which collectively
comprise the County's basic financial statements and have issued our report thereon dated June 26,
2009, wherein we indicated the financial statements of Nick Amster Sheltered Workshop, Inc., the
discretely presented component unit were audited by other auditors. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in the Comptroller General of the United States' Government
Auditing Standards . Other auditors audited the financial statements of the Nick Amster Workshop, Inc. in
accordance with auditing standards generally accepted in the United States of America and not in
accordance with Government Auditing Standards and accordingly this report does not extend to that
component unit.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial reporting
as a basis for designing our audit procedures for expressing our opinions on the financial statements, but
not to opine on the effectiveness of the County's internal control over financial reporting. Accordingly, we
have not opined on the effectiveness of the County's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in performing their assigned functions, to prevent or detect misstatements on a timely basis.
A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely
affects the County's ability to initiate, authorize, record, process, or report financial data reliably in
accordance with its applicable accounting basis, such that there is more than a remote likelihood that the
County's internal control will not prevent or detect a more-than-inconsequential financial statement
misstatement.
A material weakness is a significant deficiency, or combination of significant deficiencies resulting in more
than a remote likelihood that the County's internal control will not prevent or detect a material financial
statement misstatement.
Wayne County
Independent Accountants' Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Required by Government Auditing Standards
Page 2
2
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all internal control deficiencies that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over financial reporting that we consider material weaknesses, as defined above.
We noted certain matters that we reported to the County's management in a separate letter dated June
26, 2009.
Compliance and Other Matters
As part of reasonably assuring whether the County's financial statements are free of material
misstatement, we tested its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could directly and materially affect the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and accordingly, we do not express an opinion. The results of our tests disclosed no
instances of noncompliance or other matters we must report under Government Auditing Standards .
We did note certain noncompliance or other mattersthat we reported to the County's management in a
separate letter dated June 26, 2009.
We intend this report solely for the information and use of management, the County Commissioners, and
federal awarding agencies and pass-through entities. We intend it for no one other than these specified
parties.
Mary Taylor, CPA
Auditor of State
June 26, 2009
3
101*Central*Plaza*South*/*700*Chase
*Tower*/*Canton, *OH*44702*1509*
Telephone:**(330)*438*0617**********(800)*443*9272**********Fax:**(330)*471*0001*
www.auditor.state.oh.us*
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Wayne County
428 West Liberty Street
Wooster, Ohio 44691
To the County Commissioners:
Compliance
We have audited the compliance of Wayne County, Ohio, (the County) with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133, Compliance
Supplement that apply to each of its major federal programs for the year ended December 31, 2008.
The summary of auditor's results section of the accompanying Schedule of Findings identifies the
County's major federal programs. The County's management is responsible for complying with the
requirements of laws, regulations, contracts, and grants applicable to each major federal program. Our
responsibility is to express an opinion on the County's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations . Those standards and OMB Circular A-133
require that we plan and perform the audit to reasonably assure whether noncompliance occurred with
the types of compliance requirements referred to above that could directly and materially affect a major
federal program. An audit includes examining, on a test basis, evidence about the County's compliance
with those requirements and performing other procedures we considered necessary in the circumstances.
We believe our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination on the County's compliance with those requirements.
In our opinion, Wayne County complied, in all material respects, with the requirements referred to above
that apply to each ofits major federal programs for the year ended December 31, 2008. In a separate
letter to the County's management dated June 26, 2009, we reported an other matter related to federal
noncompliance not requiring inclusion in this report.
Internal Control Over Compliance
The County's management is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the County's internal control over
compliance with requirements that could directly and materially affect a major federal program in order to
determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the County's internal control over
compliance.
Wayne County
Independent Accountants' Report on Compliance with Requirements
Applicable to Each Major Federal Program and on Internal Controls Over
Compliance in Accordance with OMB Circular A-133
Page 2
4
Acontrol deficiency in internal control over compliance exists when the design or operation of a control
does not allow management or employees, when performing their assigned functions, to prevent or detect
noncompliance with a federal program compliance requirement on a timely basis. A significant deficiency
is a control deficiency, or combination of control deficiencies, that adversely affects the County's ability to
administer a federal program such that there is more than a remote likelihood that the County's internal
control will not prevent or detect more-than-inconsequential noncompliance with a federal program
compliance requirement.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that the County's internal control will not prevent or detect material
noncompliance with a federal program's compliance requirements.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, we noted a
matter involving the internal control over federal compliance not requiring inclusion in this report, that we
reported to the County's management in a separate letter dated June 26, 2009.
Federal AwardsReceipts and Expenditures Schedule
We have also audited thefinancial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate discretely presented component unit and remaining fund information
of Wayne County as of and for the year ended December 31, 2008, and have issued our report thereon
dated June 26, 2009, wherein we indicated the financial statements of Nick Amster Sheltered Workshop,
Inc., the discretely presented component unit were audited by other auditors. Our audit was performed to
form opinions on thefinancial statements that collectively comprise the County's basic financial
statements. The accompanying Federal Awards Receipts and Expenditures Schedule provides additional
information as required by OMB Circular A-133 and is not a required part of the basic financial
statements. We subjected this information to the auditing procedures applied in the audit of the basic
financial statements. In our opinion, this information is fairly stated, in all material respects, in relation to
the basic financial statements taken as a whole.
We intend this report solely for the information and use of management, the County Commissioners,
federal awarding agencies, and pass-through entities. It is not intended for anyone other than these
specified parties.
Mary Taylor, CPA
Auditor of State
June 26, 2009
Federal Grantor/
Pass Through
Federal
Pass Through Grantor/
Entity
CFDA
Program Title
Number
Number
Receipts
Expenditures
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(Passed through the Ohio Department of Development)
Community Development Block Grants/State's Program
BC070781
14.228
$94,714
$90,327
BF060781
195,072
199,789
BF070781
156,630
154,447
Total Community Development Block Grants/State's Program
446,416
444,563
Home Investment Partnerships Program
BC070782
14.239
167,030
226,054
Total U.S. Department of Housing and Urban Development
613,446
670,617
U.S. DEPARTMENT OF JUSTICE
(Passed through the Ohio Office of Criminal Justice Service)
Edward Byrne Memorial Justice Assistance Grant Formula Programs
2007JGA016445
16.738
59,475
67,423
2007JGLLE5239
10,981
10,981
2006JGD016463
4,631
2007JGD016463
11,836
13,828
Total Edward Byrne Memorial Justice Assistance Grant Formula Programs
86,923
92,232
(Passed through Ohio Attorney General)
Crime Victim Assistance
2008VAGENE254
16.575
67,387
69,776
2009VAGENE254
20,217
13,471
2008VACHAE515
14,179
14,179
2009VACHAE515
4,254
2,836
Total Crime Victim Assistance
106,037
100,262
Total U.S. Department of Justice
192,960
192,494
U.S. DEPARTMENT OF HOMELAND SECURITY
(Passed through the Ohio Emergency Management Agency)
State Homeland Security Program
S06SHSP6850331
97.073
68,910
68,910
Homeland Security Grant Program
07-008
97.067
6,181
6,181
Emergency Management Performance Grants
S07HEM7850196
97.042
57,448
54,437
Hazard Mitigation Grant Program
FEMA-DR-1580.5-OH
97.039
377,638
377,638
Total U.S. Department of Homeland Security
510,177
507,166
U.S. DEPARTMENT OF EDUCATION
(Passed through the Ohio Department of Education)
Special Education Cluster:
Special Education_Grants to States
071191-6B-SF-08
84.027
68,066
68,066
071191-6B-SF-09
5,931
5,931
Total Special Education_Grants to States
73,997
73,997
Special Education_Preschool Grants
071191-PG-S1-2008
84.173
11,784
11,784
071191-PG-S1-2009
1,014
1,014
071191-PGD106
3,000
3,000
Total Special Education_Preschool Grants
15,798
15,798
Total Special Education Cluster
89,795
89,795
State Grants for Innovative Programs
071191-C2-S1-08
84.298
218
232
071191-C2-S1-09
10
Total State Grants for Innovative Programs
228
232
Total U.S. Department of Education
$90,023
$90,027
(Continued)
WAYNE COUNTY
FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2008
5
Federal Grantor/
Pass Through
Federal
Pass Through Grantor/
Entity
CFDA
Program Title
Number
Number
Receipts
Expenditures
WAYNE COUNTY
FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2008
U.S. DEPARTMENT OF AGRICULTURE
(Passed through the Ohio Department of Education)
National School Lunch Program
071191-LLP4-2008
10.555
$16,321
$16,321
Total U.S. Department of Agriculture
16,321
16,321
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
(Passed through the Ohio Department of Mental Retardation and Development Disabilities)
Social Services Block Grant
MR-85
93.667
91,618
73,574
State Children's Insurance Program
N/A
93.767
1,191
1,191
Medical Assistance Program
N/A
93.778
1,473,483
1,473,483
Total U.S. Department of Health and Human Services
1,566,292
1,548,248
U.S. DEPARTMENT OF TRANSPORTATION
(Passed through the Ohio Department of Transportation)
Highway Planning and Construction
N/A
20.205
460,178
460,178
(Direct)
Airport Improvement Programs
1-3-39-0093-1204
20.106
1,520
1,520
1-3-39-0093-1304
32,740
32,740
1-3-39-0093-1406
149,999
149,999
1-3-39-0093-1608
102,600
102,600
Total Airport Improvement Programs
286,859
286,859
Total U.S. Department of Transportation
747,037
747,037
U.S. DEPARTMENT OF LABOR
(Passed through the Ohio Department of Job and Family Services)
(Passed through Area 7 Workforce Investment Board)
WIA Cluster:
Workforce Investment Act Adult Program
N/A
17.258
250,905
103,872
Workforce Investment Act Adult Program Administration
15,811
191,009
Total Workforce Investment Act Adult Program
266,716
294,881
Workforce Investment Act Youth Activities
N/A
17.259
630,159
217,471
Workforce Investment Act Youth Activities Administration
39,710
34,419
Youth Employment Project
25,076
32,583
Youth Employment Administration
1,580
5,170
Total Workforce Investment Act Youth Activities
696,525
289,643
Workforce Investment Act Dislocated Worker
N/A
17.260
198,495
54,086
Workforce Investment Act Dislocated Worker Administration
12,508
84,614
Total Workforce Investment Act Dislocated Worker
211,003
138,700
Workforce Investment Act Rapid Response
N/A
17.260
9,954
Workforce Investment Act Rapid Response Administration
4,455
Total Workforce Investment Act Rapid Response
14,409
Workforce Investment Act VR2 Work Keys Assessment
N/A
17.260
6,585
8,157
Workforce Investment Act VR2 Work Keys Administration
415
1,211
Total Workforce Investment Act VR2 Work Keys Assessment
7,000
9,368
Total Workforce Investment Act Cluster
1,181,244
747,001
Reed Act One Stop Program
N/A
17.225
6,405
Reed Act One Stop Program Administration
404
Total Reed Act One Stop Program
6,809
Total U.S. Department of Labor
1,188,053
747,001
TOTAL
$4,924,309
$4,518,911
See accompanying Notes to the Federal Award Receipts and Expenditures Schedule
6
7
WAYNE COUNTY
NOTES TO THE FEDERAL AWARDS RECEIPTS AND EXPENDITURES SCHEDULE
FISCAL YEAR ENDED DECEMBER 31, 2008
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
The accompanying Federal Awards Receipts and Expenditures Schedule (the Schedule) summarizes
activity of the County's federal awards programs. The Schedule has been prepared on the cash basis of
accounting, except expenditures of assistance passed through the Ohio Department of Jobs and Family
Services Workforce Investment Act are presented on an accrual basis.
NOTE B - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVOLVING LOAN PROGRAMS
The County maintains a Revolving Loan Fund to account for development grants from the U.S.
Department of Housing and Urban Development. The Federal Department of Housing and Urban
Development (HUD) grants money for these loans to the County passed through the Ohio Department of
Development. The initial loan of this money is recorded as a disbursement on the accompanying
Schedule of Federal Awards Receipts and Expenditures (the Schedule). Loans repaid, including interest,
are used to make additional loans. Such subsequent loans are subject to certain compliance
requirements imposed by HUD, and are included as disbursements on the Schedule, when made.
As of December 31, 2008, there were four outstanding loans with a total loan amount of $438,500 and
current loan balance of $324,729. Payments were received for principal in the amount of $33,311 and for
interest in the amount of $15,048. Payments are received on a monthly basis. Collateral for
development loans is certified in the "Legally Binding Documents" of the loan process.
NOTE C - FEDERAL HOUSING REVOLVING LOAN
The County entered into a Housing Revolving Loan Administration Agreement with the Ohio Department
of Development in February 2007 to account for housing program income generated from housing
program grants from the U.S. Department of Housing and Urban Development. At December 31, 2008,
housing revolving loan funds amounts to $68,967.
NOTE D - MATCHING REQUIREMENTS
Certain Federal programs require that the County contribute non-Federal funds (matching funds) to
support the Federally-funded programs. The County has complied with the matching requirements. The
expenditure of non-Federal matching funds is not included on the Schedule.
8
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9
WAYNE COUNTY
SCHEDULE OF FINDINGS
OMB CIRCULAR A -133 § .505
DECEMBER 31, 2008
1. SUMMARY OF AUDITOR'S RESULTS
(d)(1)(i)
Type of Financial Statement Opinion
Unqualified
(d)(1)(ii) Were there any material control weaknesses
reported at the financial statement level
(GAGAS)?
No
(d)(1)(ii) Were there any other significant deficiencies
in internal control reported at the financial
statement level (GAGAS)?
No
(d)(1)(iii) Was there any reported material
noncompliance at the financial statement level
(GAGAS)?
No
(d)(1)(iv) Were there any material internal control
weaknesses reported for major federal
programs?
No
(d)(1)(iv) Were there any other significant deficiencies
in internal control reported for major federal
programs?
No
(d)(1)(v) Type of Major Programs' Compliance Opinion Unqualified
(d)(1)(vi) Are there any reportable findings under
§ .510?
No
(d)(1)(vii) Major Programs (list):
Community Development Block
Grants/State's Program CFDA
#14.228
Hazard Mitigation Grant Program
CFDA #97.039
Medical Assistance Program CFDA
#93.778
(d)(1)(viii) Dollar Threshold: Type A\B Programs
Type A: > $ 300,000
Type B: all others
(d)(1)(ix) Low Risk Auditee?
Yes
2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS
REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS
None.
3. FINDINGS FOR FEDERAL AWARDS
None.
C
omprehensive
A
nnual
F
inancial
R
eport
FOR THE FISCAL YEAR END DECEMBER 31, 2008
C
omprehensive
A
nnual
F
inancial
R
eport
ofWayne County, Ohio
for the year ended December 31, 2008
PREPARED BY THE AUDITOR'S OFFICE
Jarra L. Underwood, Auditor
428 WEST LIBERTY STREET
WOOSTER, OHIO 44691
Wayne County, Ohio
Comprehensive Annual Financial Report
For the Year Ended December 31, 2008
i
Table of Contents
Introductory Section
Page
Table of Contents ................................................................................................................................. i
Letter of Transmittal ............................................................................................................................
v
Elected Officials Roster .......................................................................................................................
xiii
Organization Chart ............................................................................................................................... xiv
Certificate of Achievement for Excellence in Financial Reporting .....................................................
xv
Financial Section
Independent Accountants' Report ........................................................................................................
1
Management's Discussion and Analysis ..............................................................................................
3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets .............................................................................................................
15
Statement of Activities ...............................................................................................................
16
Fund Financial Statements:
Balance Sheet - Governmental Funds .......................................................................................
18
Reconciliation of Total Governmental Fund Balances to Net Assets of
Governmental Activities .........................................................................................................
21
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
..............................................................................................................
22
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ...........................................
24
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget (Non-GAAP Basis) and Actual:
General Fund ...........................................................................................................................
25
Motor Vehicle and Gas Tax ....................................................................................................
26
County Board of MRDD .........................................................................................................
27
Job and Family Services .........................................................................................................
28
Wayne County Care Center ....................................................................................................
29
Children Services Board .........................................................................................................
30
Statement of Fund Net Assets - Proprietary Funds ..................................................................
31
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds ....................................................................................................................
32
Wayne County, Ohio
Comprehensive Annual Financial Report
For the Year Ended December 31, 2008
ii
Table of Contents (continued)
Statement of Cash Flows - Proprietary Funds ...........................................................................
33
Statement of Fiduciary Net Assets - Fiduciary Funds ...............................................................
34
Statement of Changes in Fiduciary Net Assets - Private Purpose Trust Funds .........................
35
Notes to the Basic Financial Statements .............................................................................................
36
Combining Statements:
Combining Statements - Nonmajor Governmental Funds:
Fund Descriptions ...................................................................................................................
70
Combining Balance Sheet - Nonmajor Governmental Funds ...............................................
72
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds .........................................................................................
73
Combining Balance Sheet - Nonmajor Special Revenue Funds ...........................................
74
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Special Revenue Funds ......................................................................................
82
Combining Balance Sheet - Nonmajor Capital Projects Funds ..............................................
90
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Capital Projects Funds ........................................................................................
92
Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance -
Budget (Non-GAAP Basis) and Actual
General Fund ..................................................................................................................................
96
Motor Vehicle and Gas Tax ............................................................................................................
102
County Board of MRDD .................................................................................................................
103
Job and Family Services .................................................................................................................
104
Wayne County Care Center ............................................................................................................
105
Children Services Board .................................................................................................................
106
Delinquent Real Estate Tax Assessment Collection .......................................................................
107
Real Estate Assessment ...................................................................................................................
108
Indigent Guardianship .....................................................................................................................
109
Victim's Assistance Trust ...............................................................................................................
110
Youth Services Subsidy Grant ........................................................................................................
111
Dog and Kennel ..............................................................................................................................
112
Hazardous Materials .......................................................................................................................
113
Bureau of Support ...........................................................................................................................
114
Community Development Block Grant ..........................................................................................
115
Wayne County, Ohio
Comprehensive Annual Financial Report
For the Year Ended December 31, 2008
iii
Table of Contents (continued)
Ditch Maintenance ..........................................................................................................................
116
Law Enforcement ............................................................................................................................
117
Enforcement and Education ............................................................................................................
118
Indigent Drivers Alcohol Treatment ...............................................................................................
119
Litter Control...................................................................................................................................
120
Probation Services ...........................................................................................................................
121
Felony Delinquent Care and Custody .............................................................................................
122
Recorder's Equipment .....................................................................................................................
123
Solid Waste District Litter Grant ....................................................................................................
124
Local Emergency Planning .............................................................................................................
125
Narcotics Task Force ......................................................................................................................
126
Pilot Probation Program ..................................................................................................................
127
Certificate of Title Administration ..................................................................................................
128
CHIP Program .................................................................................................................................
129
Court Computerization ....................................................................................................................
130
Victim Witness Assistance Program ...............................................................................................
131
Home Arrest Grant ..........................................................................................................................
132
VOCA Grant ...................................................................................................................................
133
Mediation Services ..........................................................................................................................
134
Municipal Court Probation ..............................................................................................................
135
Department of Justice Special Projects ...........................................................................................
136
Employee Benefits Liability ...........................................................................................................
137
Indigent Fee Assessment .................................................................................................................
138
Juvenile Court Special Project ........................................................................................................
139
Juvenile Probation Services ............................................................................................................
140
Law Enforcement Training .............................................................................................................
141
U. S. Justice Radio Grant ................................................................................................................
142
Debt Retirement ..............................................................................................................................
143
County Building Construction ........................................................................................................
144
Issue II .............................................................................................................................................
145
Justice Center Communications ......................................................................................................
146
Federal Bridge Project ....................................................................................................................
147
Airport Improvement ......................................................................................................................
148
County Line Trail (LPA/RTT) ........................................................................................................
149
Proprietary Funds - Individual Fund Schedules of Revenues, Expenses and Changes in Fund Equity -
Budget (Non-GAAP Basis) and Actual
Sanitary Sewer District ...................................................................................................................
151
Water District ..................................................................................................................................
152
Health Care .....................................................................................................................................
153
Combining Statements - Fiduciary Funds:
Fund Descriptions
.........................................................................................................................
156
Wayne County, Ohio
Comprehensive Annual Financial Report
For the Year Ended December 31, 2008
iv
Table of Contents (continued)
Combining Statement of Net Assets - Private Purpose Trust Funds ............................................
158
Combining Statement of Changes in Net Assets - Private Purpose Trust Funds .........................
159
Combining Statement of Assets and Liabilities - Agency Funds .................................................
160
Combining Statement of Changes in Assets and Liabilities - Agency Funds ..............................
162
Individual Fund Schedule of Revenue, Expenses and Changes in Fund Balance -
Budget (Non-GAAP Basis) and Actual
Children's Services Trust ................................................................................................................
165
MRDD Supplemental Trust ............................................................................................................
166
Statistical Section
Statistical Section Contents ..................................................................................................................
S-1
Net Assets by Component - Last Eight Years (accrual basis of accounting) ......................................
S-3
Changes in Net Assets - Last Eight Years (accrual basis of accounting) ............................................
S-4
Fund Balances, Governmental Funds - Last Ten Years (modified accrual basis of accounting) ........
S-6
Changes in Fund Balances, Governmental Funds - Last Ten Years
(modified accrual basis of accounting) ..............................................................................................
S-8
Assessed and Estimated Actual Value of Taxable Property - Last Ten Collection Years ..................
S-10
Property Tax Rates - Direct and Overlapping Governments (Per $1,000 of Assess Value) -
Last Ten Years ...................................................................................................................................
S-12
Property Tax Levies and Collections - Last Ten Collection Years .....................................................
S-16
Principal Taxpayers - Real Estate and Tangible Personal Property Tax -
December 31, 2008 and 1999 ..........................................................................................................
S-17
Special Assessment Billings and Collections - Last Ten Collection Years ........................................
S-18
Pledged Revenue Coverage - Sewer System Revenue Bonds - Last Five Years ...............................
S-19
Ratios of Outstanding Debt by Type - Last Ten Years .......................................................................
S-20
Ratios of Net General Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita
- Last Ten Collection Years .............................................................................................................
S-22
Computation of Direct and Overlapping Debt - December 31, 2008 ..................................................
S-23
Computation of Legal Debt Margin - Last Ten Years ........................................................................
S-24
Demographic and Economic Statistics - Last Ten Years ....................................................................
S-26
Principal Employers - Current Year and Nine Years Ago ..................................................................
S-27
County Government Employees by Function/Activity - Last Seven Years ........................................
S-28
Operating Indicators by Function/Activity - Last Seven Years ..........................................................
S-29
Capital Asset Statistics by Function/Activity - Last Seven Years ......................................................
S-32
Introduction
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June 26, 2009
To the Citizens of Wayne County, Ohio and
Board of County Commissioners
I am pleased to present the Comprehensive Annual Financial Report ("CAFR") of Wayne County, Ohio ("County")
for the year ended December 31, 2008. This report, which is prepared in conformance with accounting principles
generally accepted in the United States of America ("GAAP") as set forth by the Government Accounting Standards
Board ("GASB"), is indicative of the continued commitment of the Auditor's office to provide quality financial
information to the citizens of the County and all other interested parties. Responsibility for both the accuracy of the
data and the completeness and fairness of the presentation, including all disclosures, rests with the County Auditor's
office. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported
in a manner designed to present fairly the financial position and results of operations of the various funds of the
County. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities
have been included.
REPORTING ENTITY AND SERVICES
The County's reporting entity has been defined in accordance with GASB Statement No. 14, "The Financial
Reporting Entity." The basic financial statements contained within this CAFR include all funds, agencies, boards,
and commissions for which the County (the reporting entity) is financially accountable. The County provides a
wide range of general government sources to its residents which include: human and social services, health and
community assistance related services, civil and criminal justice systems, road and bridge maintenance and other
general legislative and administrative support services.
Organizations that are legally separate from the County are included if the County's elected officials appoint a
voting majority of the organization's governing body and either the County has the ability to impose its will on that
organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the County. The County may also be financially accountable for governmental organizations
that are fiscally dependent on it.
Component units are legally separate organizations which are fiscally dependent on the County or for which the
County is fiscally accountable. The County reports the Nick Amster Sheltered Workshop, Inc. ("Workshop") as a
discretely presented component unit.
The County is also associated with the following organizations:
Joint Ventures without Equity Interest
Wayne County Emergency Management
Multi-County Juvenile Attention Center
Stark, Tuscarawas, and Wayne Joint Solid Waste Management District
Multi-County Community Mental Health District
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Jointly Governed Organizations
Stark Regional Community Corrections Center
Medway Drug Enforcement Agency
North East Ohio Network
Related Organizations
Wayne County Public Library
Wayne County Park District
Wayne Metropolitan Housing Authority
Public Entity Risk Consortium
The County also serves as fiscal officer and custodian of funds but is not accountable for the following
organizations:
Wayne County District Board of Health
Wayne County Soil and Water Conservation District
Wayne County Mental Health and Recovery Board
The operations of the three above mentioned agencies have been excluded from the County's basic financial
statements, but the funds held on their behalf in the County Treasury are included in the agency funds.
A complete discussion of the County's reporting entity is provided in Note 2A of the basic financial statements.
THE COUNTY AND FORM OF GOVERNMENT
Profile of the County
The County is located in Northeastern Ohio centrally located between Cleveland and Columbus and served by U.S.
Route 30. The State of Ohio originally recognized the present County as a township of Columbiana County known
as Killbuck. As new counties were authorized in 1808, Killbuck Township established its own governing bodies
and was reorganized as Wayne County in 1812. Currently the County includes sixteen townships, twelve villages,
and three cities. Of the three cities, Wooster is the County seat and the largest city in the County. The County
encompasses 555 square miles with approximately 113,800 residents and ranks 24th largest county in Ohio.
Form of Government
To govern the County, a three-member Board of County Commissioners is elected at-large in even-numbered years
for overlapping four-year terms. The Board of Commissioners serves as the taxing authority, contracting body, and
the chief administrator of public services for the County. The Board of Commissioners creates and adopts the
annual operating budget and approves expenditures of County funds. In addition to the Board of Commissioners,
the offices of the County Auditor and County Treasurer, grouped under the category of general government, are of
particular importance to the financial affairs of the County.
The County Auditor serves as the chief fiscal officer for the County and the real property assessor for all political
subdivisions within the County. As chief fiscal officer, the Auditor is responsible for maintaining the County's
centralized accounting, payroll and benefits system; for preparing the CAFR; and for auditing payments made on
behalf of county agencies and issuing the warrants therefore. The Auditor also prepares the general tax list of the
County, calculates the voted and unvoted tax rates for real estate and general personal property and, once collected,
distributes the receipts to the appropriate political subdivisions and agencies within the County.
As real property assessor, the Auditor is responsible for a full reappraisal of the approximately 59,000 parcels of
real property in the County every six years, with an interim update every third year. The last full reappraisal was
completed in 2008. The Auditor also prepares and maintains a comprehensive set of the County's real estate
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records that includes ownership, appraised value, property description and dimensions and sketches for each parcel.
Along with the Treasurer and the President of the Board of County Commissioners, the Auditor serves on the
County Board of Revision. The County Board of Revision hears all complaints on real property and may revise real
estate assessment, except those for public utilities.
The County Auditor, County Prosecuting Attorney and County Treasurer form the County Budget Commission,
which plays an important role in the financial administration of county government as well as all local government
throughout the County. The Auditor also serves as administrator of the County Data Processing Board and is the
Deputy Registrar for the State of Ohio in Wayne County.
Along with the County Auditor and County Commissioners, the County Treasurer plays an important role in the
financial affairs of the County. State law requires the Treasurer to collect certain locally assessed taxes. The
Treasurer is the distributing agent for expenditures, authorized by the County upon the Auditor's warrant. The
Treasurer must make daily reports showing receipts, payments and balances to the Auditor, and the books of
accounts must always balance with those of the Auditor. The Treasurer is a member of the County Investment
Committee, and is responsible for the investment of all idle funds of the County as specified by Ohio Law.
Other elected officials include the Recorder, Clerk of Courts, Coroner, two Court of Common Pleas Judges, two
County Municipal Court Judges, Engineer, Probate Court Judge, Prosecutor, and Sheriff.
LOCAL ECONOMY
Wayne County is fortunate to have a diversified economic base consisting of wire products, food processing, health
care, paint supplies, automotive parts, fire apparatus equipment and agribusiness. The county maintains a delicate
balance between industry, commercial retail and agriculture to preserve our rural character and ambiance, and the
Elected Officials are cognizant of the fact that the County is rich in natural beauty and natural wonders and they are
continually working to protect our unique flavor and diversity.
A number of state highways traverse the County, which provide a direct link to the markets of metropolitan areas of
Akron, Cleveland and Columbus. With access to major thoroughfares, the County benefits from trucking terminals
of several large carriers located in the County.
Air service is easily accessible to industry and residents as are major railroad lines. These forms of commercial
transportation enhance the County's ability to attract businesses.
Wayne County, crossroads of culture and country, is often dubbed the Gateway to Amish County, with one of the
largest communities of Amish in the world. Horse-drawn buggies, one room schoolhouses and community barn
raisings are frequent sights for visitors intrigued by the old world lifestyle.
Tourism is a big diverse composite of economic activities in the County including transportation, recreation, retail
lodging and food and beverage sectors. Popular attractions are Lehman's Old Time Hardware, the Ohio Light
Opera, the Secrest Arboretum, Johnson Woods State Nature Preserve or the 5,000 acre Killbuck Marsh wildlife
area. Visitors to Wayne County generated business sales of $195 million and sustained 5% of private sector jobs.
The economy of Wayne County consists of a diverse mixture of agriculture production, manufacturing including
particular strengths in metals, advanced materials and energy industry components, agribusiness and food
processing, education and research as well as financial and business services.
J.M. Smucker and the Wooster Brush Companies main headquarters are located in the County and these companies
continue to prosper.
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Three higher education facilities are located in the County: University of Akron branch, The Ohio State University
branch, and the College of Wooster. The facilities bring exceptional higher education opportunities to citizens of
the County.
Unemployment in Wayne County for 2008 was ranked 12th lowest in the state at 5.6%, which was lower than the
state average of 6.5% and slightly lower than the national average of 5.8%.
With the steady growth both in residential and commercial construction, the financial outlook for the County
appears positive. While the County has benefited from growth in recent years, there has been a concerted effort to
conserve the County's rural atmosphere. Agriculture remains our number one industry today, with nearly 260,000
acres of total farming land and $200 million in annual cash receipts from farm commodities. Wayne County ranked
1st in hay with 35,000 acres in production, first in cattle and milk cows and 5,300 acres of oats were planted in
earning the County a second place ranking in the state. Wayne County agriculture is also experiencing significant
growth in fruit, vegetable and poultry sectors with many of these operations targeting local and organic niche
markets. Leaders of the County will continue working hard to bridge the gap over the next 10 years as Wayne
County migrates from more of rural to an urban county to ensure a strong economy and quality way of life.
MAJOR INITIATIVES
Current Projects
Very few facility capital improvement projects were undertaken in 2008 by the County. With improvements to
County owned buildings being addressed on an as needed basis. The Wayne County Courthouse is a primary
concern needing structural and cosmetic improvements. Grants are being sought to help with this $6 million
project.
The economic condition in 2008, although challenging, had some positive attributes. Residential and agricultural
development added $53,000,000 to the tax base in the County, the total commercial and industrial development
exceeded $32,000,000. The following companies made initial investments or expanded their operations in 2008.
Buckeye Expo Center constructed a$1.5 million event center expanding 63,000 square feet.
G&S Titanium completed a $1million office complex with 11,000 square feet.
Technigraphics enhanced their existing campus with a 34,000 square foot building investing $4.2 million.
The J.M. Smucker Company acquired the Folgers label and invested $3.5 million in their Orrville facility.
Collier Well Equipment, Frito Lay, Speed North America II, Westerman Companies II, The College of Wooster,
Cleveland Clinic and Wooster Hospital also invested in brick and mortar and machinery and equipment.
FUTURE PROJECTS
A Nursing Home facility plans to break ground on a 65,000 square foot building with investments of $5.2 million.
The College of Wooster plans a $3 million renovation project to Babcock Hall.
Downtown Wooster continues revitalization plans by razing the Freedlander building and constructing residential
condos, offices and retail space.
The Ohio Agricultural Research and Development Center (OARDC) has proposed a Bio Hio Research Park. This
Bio Hio space will be marketed to bio-processing, biomass conservation, food and bio security companies.
Infrastructure improvements will be funded by a grant of $4 million through state and national programs.
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Apple Creek and East Union Township will continue to work together to bring new businesses and income tax
money through development of Wayne County's first Joint Economic Development District.
The City of Rittman is seeking land for an industrial park.
DEPARTMENTAL FOCUS
Auditor's Office
Improvements to County operations are an integral part in the evolution of County government. The Auditor's
Office has implemented numerous enhancements to improve the operations and efficiency of the office. In an
effort to display the Auditor's office's continued dedication to excellence, the following service efforts and
accomplishments are being presented.
The Auditor's office continues to build and enhance the Geographic Information Systems working toward on-line
aerial maps, completing a pilot project of Baughman Township.
A new dog licensing application was launched permitting on-line access to licensed dogs. This streamlined process
will facilitate the return of lost dogs to their owners and has greatly increased the efficiency in this area of our
office.
The office completed the sextinnual reappraisal.
Technology is on the move, which will equate to better service of the public and other government agencies.
FINANCIAL INFORMATION
Budgetary and Internal Control
Management of the County is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the County are protected from loss, theft, or misuse and to ensure that adequate accounting
data is compiled to allow for the preparation of the basic financial statements in conformity with GAAP. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to
be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management.
The County utilizes a fully automated accounting system. Budgetary control is maintained at the object level by the
encumbrance of estimated purchase amounts coupled with the manual auditing of each purchase order prior to its
release to a vendor or prior to payment to ensure that financial information generated is both accurate and reliable.
Those purchase orders, which exceed the available appropriations, are returned to the department head.
The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the County Budget Commission. All funds, other than agency funds, are required
to be budgeted and appropriated and, therefore, are included in the annual appropriated budget, except for the
airport special revenue fund and the care center resident trust private purpose trust fund. The level of budgetary
control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the
object level within each department.
Accounting System
This is the seventh year the County has prepared financial statements following GASB Statement No. 34 "Basic
Financial Statements - and Management's Discussion and Analysis - for State and Local Governments." GASB
Statement No. 34 creates basic financial statements for reporting on the County's financial activities as follows:
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Government-wide financial statements - These statements are prepared on the accrual basis of accounting,
which is similar to the basis of accounting followed by businesses. The government-wide statements
distinguish between those activities of the County that are governmental and those that are considered
business-type activities.
Fund financial statements - These statements present information for individual major funds rather than
by fund type. Non-major funds are presented in total in one column. Governmental funds use the modified
accrual basis of accounting and include reconciliation to the government-wide financial statements.
Proprietary and fiduciary funds use the accrual basis of accounting.
Statement of budgetary comparisons - These statements present comparisons of actual information to the
legally adopted budget. The budgetary basis as provided by law is based upon accounting for certain
transactions on a basis of cash receipts, disbursements and encumbrances.
As part of this reporting model, management is also responsible for preparing a discussion and analysis of the
County. This discussion follows the Independent Accountants' Report, providing an assessment of the County's
finances for 2008 and the outlook for the future. Because that discussion focuses on major funds, the financial
highlights provided in this letter focus on certain nonmajor funds of the County.
Financial Highlights
Internal Service Fund - The only internal service fund of the County is the Health Care fund. The internal service
fund has $672,892 in net assets at December 31, 2008. This balance is the result of the accumulation of sufficient
resources from charging back the County funds, and several governmental units within the County, that participate
in the self-insurance program, which is deemed sufficient to cover outstanding claims of the County.
Fiduciary Funds - The fiduciary funds account for assets held by the County in a trustee capacity, or as an agent,
for individuals, private organizations, or other governments. The agency funds have total assets of $123,531,082 at
December 31, 2008. The most significant agency funds maintained by the County are undivided taxes, undivided
auto, undivided local government, and monies due to other governments such as the District Board of Health and
the Mental Health and Recovery Board. The County's private purpose trust funds, which include the Care Center
Residents Trust and the Children Services Trust, have net assets of $229,083 at December 31, 2008.
Cash Management
The County pools its cash for maximum efficiency and to simplify accountability. The County's investment policy
is to minimize credit and market risks while maintaining a competitive yield on its portfolio. During the year ended
December 31, 2008, the County's investments were limited to federal agency securities, repurchase agreements,
certificates of deposit and investments in the State Asset Treasury Reserve of Ohio (STAR Ohio). The total amount
of investment income earned by governmental activities was $2,381,710 for the year ended December 31, 2008,
$25,047 being credited directly to program revenues.
Protection of the County's cash and investments is provided by the Federal Deposit Insurance Corporation as well
as by qualified securities pledged by the institution holding the assets. By law, financial institutions may establish a
collateral pool to cover all public deposits. As required under Ohio law, pooled securities have been pledged in an
amount equal to 105% of the total deposits, to secure the repayment of all public moneys deposited in a financial
institution. A detailed description of the County's investment function is described in Note 4 to the financial
statements.
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Risk Management
The County has contracted with Arthur J. Gallagher & Company and the Public Entity Risk Consortium (PERC) to
meet the needs of the County for general liability, property, auto, crime, forgery, and employee liability, public
officers' liability, and boiler and machinery insurance. The County also carries insurance coverage that protects
individual departments from liabilities arising from normal operations. The County has contracted with Scottsdale
Surplus Lines Company to provide social service professional liability.
The County has also established a risk management program for the self-insurance of employee health care benefits.
This risk management program is further described in Note 12 to the basic financial statements.
OTHER INFORMATION
Independent Audit
Included in this report is an unqualified audit opinion rendered on the County's basic financial statements as of and
for the year ended December 31, 2008, by the Auditor of State's Office. County management plans to continue to
subject the basic financial statements to an annual independent audit as part of the preparation of a CAFR. The
Auditor's report on the basic financial statements and combining and individual fund statements and schedules is
included in the financial section of this report. The annual audit serves to maintain and strengthen the County's
accounting and budgetary controls.
The County participates in the federal "single audit" program which consists of a single audit of all federal and
federal flow through funded programs administered by the County. Congressional legislation made the "single
audit" program mandatory for most local governments, including Wayne County. This mandate began in 1985 as a
requirement for federal funding eligibility. Information related to this audit, including the Federal Awards Receipts
and Expenditures Schedule, findings and recommendations and a combined report on internal control and
compliance, are published in a separate report.
Use of the Report
The report is published to provide the County Commissioners, as well as to provide our citizens and other interested
persons, detailed information concerning the financial condition of the County, with particular emphasis placed on
the utilization of resources during the past fiscal year. It is also intended that this report serves as a guide in
formulating policies and in conducting the County's future day-to-day activities. We believe the information, as
presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial
activity of its various funds; and that all disclosures necessary