COUNTY OF NORTHAMPTON MEMO DEPARTMENT OF FISCAL AFFAIRS TO: Shawn Langen, Chairman Northampton County GPA. Dave Hughes, County Representative to the GPA Tina Smith, Director of Community and Economic Development John Lushis, Esq., GPA Solicitor Stephen J Barron, Jr., Director Fiscal CC —— Approval of the GPA Financial Statements May 7, 2018 | was surprised to find the GPA Meeting on May 1, 2018 was canceled especially when Iwas informed that Debra Borger from Riley and Company was to be presenting for your approval the GPA Financial Statement for 2017. This item is important because the P3 project and the GPA’s Financial Statements are now incorporated into the County's Financial Statement as a blended component unit. Our External Auditors, RKL, LLC cannot issue the County's opinion letter for 2017 until the GPA approves their Financial Statements and the audit of the GPA is complete with an approved opinion letter. Usually by the end of March early April we receive the GPAs financial Statements so that we can review them and have our statements reflect information needed. However, this year the fiscal team worked hard to help Dave Hughes and Ms. Borger to make sure that were able to get the correct information into the financial statements so we did not have needless delays. This year we did not get the GPA Draft Financial Statements until two weeks after the agreed upon date of April 1. That said, the fact that Ms. Borger was ready to come to the meeting Tuesday, May 1*, and report the financials of the GPA and that meeting was canceled because there was “no business to be done” by the GPA is appalling and now placed the county further from the Home Rule Charter reporting deadline for our financial statements (which are due April 30). Due to these delays we will not be releasing our 2017 Financial Statements until sometime after the GPA Financial Statements are approved (hopefully) in the June 5" Meeting | understand that the solicitor for he GPA said board action was not needed to accept the statements, but upon talking to Ms. Borger and the auditors from RKL, LLC they believe that some acknowledgement from the board is necessary as was always done in the past, especially since this is the first year the P3 Project milestone payments are being paid.| do not believe when the GPA undertook this P3 project they appreciated the impact these milestone payments and costs related to the project would have when it came to accounting and Northampton County's Financial Statements. Please understand that choosing to engage in this project and the payments involved must be accounted for and conform to the GFOA standards as well as generally accepted accounting standards. Having final financial statements from external auditors provided in a timely manner is one of those standards that need to be met from this point forward.