BOROUGH OF IRWIN IRWIN, PENNSYLVANIA FINANCIAL STATEMENTS - CASH BASIS YEAR ENDED DECEMBER 31, 2023 BOROUGH OF IRWIN YEAR ENDED DECEMBER: 31, 2023 CONTENTS Page 1-3 4-18 19-30 Independent. Auditor's Report Notes to the Financial Statements Supplementary Information 2023 DCED Municipal Annual Audit and Financial Report Schedule of Revenues, Expenditures, and Changes in Fund Balance- Cash Basis - Budget and Actual - General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Cash Basis - Budget and Actual - Liquid Fuels Fund Combined Statement of Assets, Liabilities, and Fund Balance- - Cash Basis - Special Revenue Funds Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Cash Basis - Special Revenue Funds Statement of Net Position - Cash Basis - Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position - Cash Basis - Proprietary Funds Combined Statement of Assets, Liabilities, and Net Position- Cash Basis - Fiduciary Fund Types Combined Statement of Revenues, Expenses, and Changes in Net Position - Cash Basis - Fiduciary Fund Types 32 33 34 35 36 37 38 39 Zelenkofske Axelrod LLC CERTIFIED PUBLIC ACCOUNTANTS EXPERIENCE 1 EXPERTISE ACCOUNTABILITY A I INDEPENDENT AUDITOR'S REPORT To the Members of Council Borough of Irwin Irwin, Pennsylvania 15642 Report on the Audit of the Financial Statements Opinions We have audited the accompanying cash basis balance sheet, statement of revenues and expenditures and statement of capital expenditures and employee compensation, and the related notes to the financial statements (the "financial statements"), of the Borough of Irwin, which are included in the Pennsylvania Department of Community and Economic Development's (DCED) prescribed form as of December 31, In our opinion, the financial statements referred to above present fairly, in all material respects, the cash basis assets, liabilities, and fund balances of the Borough of Irwin, as of December 31, 2023, and the revenues it received and expenditures it paid for the year then ended, in accordance with the financial reporting provisions of the Pennsylvania Department of Community and Economic Development's 2023, for the year then. ended. prescribed form as described in Note 1. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Borough of Irwin and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide al basis for our audit opinions. Emphasis of Matter - Basis of Accounting We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting in the Pennsylvania Department of Community and Economic Development's (DCED) prescribed form, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. 830 Sir Thomas Court, Suite 100, Harrisburg, PA1 17109 38001 McKnight EastI Drive, Suite 3805, Pittsburgh, PAI 15237 34745 Burbage Road, Frankford, DE1 19945 2370 York Road, Suite A-5, Jamison, PAI 18929 420 Chinquapin Round) Road, Suite 2-i, Annapolis, MD21401 2101 Tollgate Hilll Road, Greensburg, PAI 15601 www.rdllcorg Zelenkofske Axelrod LLC CERTIFIED PUBLIC ACCOUNTANTS EXPERIENCE I EXPERTISE ACCOUNTABILITY A I Members of Council Borough of Irwin Page 2 Responsibilities of Management for the Financial Statements Borough of Irwin's management is responsible for the preparation and fair presentation of the financial statements in accordance with the cash basis of accounting described in Note 1, and for determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an. auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material ift there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Borough of Irwin's internal control. Accordingly, no such opinion is Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the Conclude whether, in our. judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Borough of Irwin's ability to continue as a going concern for We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related in thet financial statements. expressed. financial statements. areasonable period of time. matters that we identified during the audit. Zelenkofske Axelrod LLC CERTIFIED PUBLIC ACCOUNTANTS EXPERIENCE I EXPERTISE ACCOUNTABILITY A I Members of Council Borough of Irwin Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinion on the financial statements that collectively comprise the Borough's financial statements. The Schedule of Revenues, Expenditures, and Changes in Fund Balance- Cash Basis - Budget and Actual - General Fund on page. 32, Schedule of Revenues, Expenditures, and Changes in Fund Balance-Cash Basis-Budget and Actual-Liquid Fuels Fund on page 33, the combining special revenue fund financial statements on pages 34 through 35, the proprietary fund financial states on pages 36 through 37, and the combining fiduciary fund statements on pages 38 through 39, are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to thet financial statements as a whole. Z-4pALK ZELENKOFSKE AXELROD LLC January 20, 2025 Greensburg, Pennsylvania Page 4 8 - 3 & 2 S M 8 € 3 - - E - : E : - 8 5 a L S E M 3 < V 5 t 15 6 6 00 88 00 8 Page 19 BOROUGH OF IRWIN DECEMBER 31, 2023 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING The Borough of Irwin is incorporated under the laws of the Commonwealth of Pennsylvania. The Borough operates under a Mayor-Council form of government. The Borough provides the following services: public safety, streets, health and social services, sanitation, culture-recreation, public improvements, planning and zoning and general administrative services. The Borough regularly maintains its books on the cash receipts and disbursements method. The Borough has not made any provisions for uncollectible taxes, as all real estate taxes unpaid by the due date are liened and will be collected. POLICES A. Reporting Entity Consistent with the guidance contained in GASB Statement No. 61, "The Financial Reporting Entity: Omnibus - an amendment of GASB Statements No. 14 and No. 34", the criteria used by the Borough to evaluate the possible inclusion of related entities within its reporting entity are financial accountability and the nature and significance of the relationship. In determining financial accountability in a given case, the Borough reviews the applicability of the following criteria. Thel Borough is financially accountable for: a. Organizations that make up the legal Borough entity. b. Legally separate organizations if the Borough's officials appoint a voting majority of the organization's governing body and the Borough is able to impose its will on the organization or if there is a potential for the organization to provide specific financial benefits to, or impose specific Impose Its Will = If the Borough can significantly influence the programs, projects, or activities of, or the level of services performed or provided by the Financial Benefit or Burden - Exists if the Borough (1) is entitled to the organization's resources or (2) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide support to, the organization or (3)is obligated in some manner for the debt of the organization. Organizations that are fiscally dependent on the Borough. Fiscal dependency is established if the organization is unable to adopt its budget, levy taxes or set rates or charges, or issued bonded debt without Based upon the application of these criteria, the Borough of Irwin has no financial burdens on the Borough as defined below: organization. approval by the Borough. component units, and the reporting entityi is all inclusive. Page 20 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED) Basis of Presentation Governmental Fund Types B. General Fund = The General Fund is the general operating fund of the Borough. Itis used to account for all activities except those required to be accounted fori in Capital Projects Fund - Capital Projects funds are used to account for financial resources to be used for the acquisition of capital assets other than those Debt Service Fund - Debt Service funds are used to account for resources set Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than capital projects). requiring separate accounting because of legal or regulatory provisions or administrative another fund. financed by proprietary fund types. aside to pay interest and principal on long-term debt. actions. Fund Liquid Fuels Description Liquid Fuels funds are used to account for revenues and expenditures of state liquid fuels Accounts for revenues and expenditures used for recreation program in the Borough Accounts fore expenditures used for sewer repairs and replacement. Accounts for expenditures used for sewer repairs and replacement. Accounts for revenues and expenditures of CARES Act funding. collected for the purpose of supporting the volunteer fire department. grant funds. Neighborhood Association And Recreation Board Phase Combined Sewer Separation Project Phase Il and III Combined Sewer Separation Project CARES Act Fund Irwin' VFD Real Estate Fund Accounts for the collection of real estate taxes Proprietary Fund Types Enterprise Funds - Enterprise Funds are used to account for activities in which the governing body intends that the costs of providing goods or services will be recovered primarily through user charges or where the governing body has decided that periodic determination of revenue earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, managerial control, accountability, or other purposes. Page 21 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED) B. Basis of Presentation (Continued) Fiduciary Fund Types The Fiduciary Funds function to account for the activities related to the Police and Employees' Pension Funds which are held for the benefit of employees and retirees. These funds are restricted as to their use and are not available to the Borough toi finance its operations. Basis of Accounting All governmental, proprietary, and fiduciary funds of the Borough demonstrate compliance with the cash basis and budget laws of Pennsylvania. The cash basis method of accounting, which is another comprehensive basis of accounting, recognizes receipts as revenues when cash or its equivalent is actually received rather than when earned, and recognizes a purchase for goods acquired or a service rendered to the Borough as an expenditure when the goods or services are actually paid for rather than when incurred. Accordingly, the accounting policies of the Borough do not conform to generally accepted accounting principles as applicable to governments and as promulgated by the Governmental Accounting Standards Board and the American Institute of The Borough did not adopt the accounting and recording model under GASB 34. In the future, implementation of GASB 34 will require prior period adjustments Certified Public Accountants. and the effect could be material. Cash and Cash Equivalents D. Assets, Liabilities, and Net Position or Fund Balance The Borough of Irwin maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "Cash and Investments" under each fund's caption. For deposits, custodial credit risk is the risk that, in the event of bank failure, the Borough's deposits may not be returned to it. The Borough's deposits are in two financial institutions and are carried at cost plus accrued interest. Page 22 BOROUGH OF IRWIN NOTES TOTHE FINANCIAL STATEMENTS DECEMBER31, 2023 (CONTINUED) NOTE1: NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (CONTINUED) D. Assets, Liabilities, and Net Position or Fund Balance (CONTINUED) Cash and Cash Equivalents (Continued) Custodial Credit Risk - For deposits custodial credit risk is the risk that in the event of the failure of the counterparty, the Borough will be able to recover the value of its investment or collateral securities that are in the possession of an outside party. As of December 31, 2023, the Borough's cash balances were $2,677,775 and its bank balances were $2,843,255. Of these bank balances, $250,000 was insured by the FDIC, $78,809 was in an external investment pool through PLGIT, and $2,514,446 was collateralized with securities held by the pledging financial institutions, or by their trust departments or agents, but not in The Borough uses an external investment pool to ensure safety and to maximize efficiency, liquidity, and yield for Borough funds. At December 31, 2023, PLGIT carried an AAA rating with an average maturity of less than one year. PLGIT separately issues audited financial statements that are available to the public. The fair value of the Borough's position in the external investment pool is equivalent to the value of the pool shares and amounted to $78,809 as of December 31, 2023. The Commonwealth of Pennsylvania provides external the Borough's name. regulatory oversight of the external investment pool. Investments Custodial Credit Risk = Investments: Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Borough will not be able to recover the value ofi its investments or collateral security that are in the possession of an outside party. The Borough has no investments subject to custodial credit risk. Credit Risk The Borough has no investment policy that would limit its choices to certain credit ratings. As of December 31, 2023, the Borough had investments Concentration of Credit Risk Investments: Investments totaling $2,193,658 are reported by the Borough in the Fiduciary Funds. These investments are held ina trust at the Pennsylvania State Association of Borough's Municipal Retirement Trust for the Borough of Irwin Employees' and Police Retirement Plan. For further information concerning these investments, see Note 7. concerning the Fiduciary Fund. Property7 Taxes Taxes are levied on March 1 and are due and payable at that time. All unpaid taxes levied on March 1 become delinquent December 31 of the same year. Borough property tax revenues are recognized when received. Property taxes delinquent as of December 31 are passed on to Westmoreland County for collection. Page 23 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE 1: NATURE OF ORGANIZATION, AND SUMMARY OF SIGNIFICANT ACCOUNTING Assets, Liabilities, and Net Position or Fund Balance (CONTINUED) POLICES (CONTINUED) D. Compensated Absences As of December 31, 2023, the Borough's policy on compensated absences is that unused sick and vacation time do not accumulate. Consequently, sick and vacation time are expensed when used by employees and the Borough has not established an accrual for compensated absences. Budgets The Borough budget must be officially enacted before December 31 preceding the new year. The proposed budget shall be made available for public inspection The Council in its reasonable discretion may, in any year, by motion, modify the budget after its final adoption. New appropriations, supplementary appropriations, and transfers from one appropriation to another may be made during the fiscal year, either before or after the expenditure is authorized or ratified after the expenditure is made, provided it is within the current year's revenues, or the money, therefore promptly made available through borrowing, as allowed by law. The Borough budget is prepared and presented on the cash General funds expenditures for public safety, sanitation, highways and streets, other public works, enterprises, and debt services exceeded the budgeted amount; however, these overages were absorbed by surpluses in other areas and higher than expected tax, fines and forfeits, interest, rents and royalties, and for a period of ten days. basis. charges for services revenues. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. Page 24 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE2: CAPITAL ASSETS Capital asset purchases are expensed when paid and retirements are recorded as The following is a schedule of capital assets of the Borough of Irwin. The capital assets acquired prior to 2003 are valued at appraisal value as determined by Industrial Appraisals for 2002. Capital assets acquired after 2002 are recorded at cost. revenue to the extent cash is received upon disposition. Balance December 31, 2022 $ 2,058,872 836,751 7,238,086 $10.133.709 Balance December 31, 2023 5 2,058,872 1,029,075 7,238,086 $10.326.033 Additions $ 192,324 192.324 Disposals $ Buildings Equipment Infrastructure Total NOTE: 3: SHORT TERM DEBT In December 2022, the Borough Council authorized the Borough to enter into a loan agreement with S&T Bank for a tax anticipation note for the year ended December 31, 2023. The note has an interest rate of 5%, and the final payment is due on December 31, The following schedule represents activity affecting short term debt during 2023: 2023. Balance January 1, 2023 Balance December 31, 2023 $ $ New Issues $ 150,000 $150.000 Principal Repaid $150.000 $_150.000 Note Payable S&T Bank-2023 $ Total Page 25 BOROUGH OF IRWIN DECEMBER 31, 2023 (CONTINUED) NOTES TOTHE FINANCIAL STATEMENTS NOTE4 4: LONG TERM DEBT The following schedule represents activity affecting long term debt during 2023:: Balance January1, New 2023 220,784 $ $2.239.216 $ Balance 2023 1,793,348 Amounts One Year 233,647 Principal December 31, Due Within $ 42,525 $ 178,259 $ 43,531 $267,609 $ 1.971.607 $ 277.179 Issues Repaid 225,084 PennVest Loan #74133 PennVest Loan #P33000770-102 2,018,432 Total The following represents the Borough's future debt service requirements. Year Ended December 31, 2024 2025 2026 2027 2028 2029-2030 Total Debt Principal $ 277,179 284,326 291,656 299,177 258,678 560,591 $1.971.607 Interest 47,008 $ 324,187 39,861 32,531 25,010 17,859 15,597 Total 324,187 324,187 324,187 276,537 576,189 1 177.869 $2.149.474 General long-term debt of the Borough of Irwin consists of the following: On September 13, 2006, the Borough entered into loan agreement Number 74133 with the Pennsylvania infrastructure Investment Authority (PENNVEST): for the sum of $768,000. The terms of the loan call for 240 consecutive monthly installments. Sixty principal and interest installments beginning January 1, 2008, of $3,628.06 through December 31, 2012, at an annual interest rate of 1.278 percent. The remaining one hundred eighty (180) installments will bear interest at 2.556 percent. At December 31, 2023, the On August 13, 2008, the Borough Council authorized the Borough to enter into al loan agreement with the Pennsylvania Infrastructure Investment Authority (PENNVEST) for the sum of $5,250,000. The terms of the loan will call for 240 consecutive payments. The first sixty (60) installments will bear interest at 1.274 percent and the remaining installments will bear interest at 2.547 percent. At December 31, 2023, the outstanding balance was: outstanding balance was: $ 178,259 1,793,348 1.971.607 $ Page 26 BOROUGH OF IRWIN NOTES TOTHE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE5: INTERFUND OPERATING TRANSFERS Governmental Fund Types Transfers In Transfers Out $ 112,667 $ 919,327 595,709 14,411 51,621 299,581 3,349 91,400 20.000 1,188.768 General Fund Capital Projects Fund Liquid Fuels Fund Phase I Combined Sewer Project Fund Phase Ila and III Combined Sewer Project Fund Irwin VFD Real Tax Fund Second Street Fund Street Light Fund Total Governmental Funds Sewer Project Fund Total Proprietary Funds Total Interfund Transfers LEGAL MATTERS 146,744 80,505 1,146.526 Proprietary Fund Types 308,960 $ 351,202 308.960 $ 351,202 1 1,497.728 $ 1.497.728 NOTE 6: The Borough of Irwin is involved in various legal matters in the normal course of business of a local municipality. None of the aforementioned legal matters require contingency disclosure in the December 31, 2023, financial statements. NOTE7: PENSION PLANS Plan Description The Borough has two single-employer defined benefit pension plans: The Police Pension Plan and the Employee Pension Plan. The Police Pension Plan was established by Ordinance No. 3-1958, effective May 12, 1958, (adopted pursuant to Act 600 of 1956) and entered into a Joinder Agreement with Pennsylvania State Association of Borough's Municipal Retirement Trust (PSABMRT) dated June 2, 1986. The Employee Pension Plan was established January 1, 1984, and entered into a Joinder Agreement with PSABMRT dated December 28, 1990. Both plans are governed by Borough Council of the Borough of Irwin which may amend plan provisions, and which is responsible for the management of each plan's assets. The Borough Council has delegated the Authority to The Plans are administered by the Pennsylvania State Association of Borough's Municipal Retirement Trust and are not considered Pension Trust Funds of the Borough of Irwin. Accordingly, these plans are not presented in the Borough's financial statements As a result of the Borough's cash basis method of accounting, the new accounting and reporting model for pensions, GASB Statements 67 and 68 were not adopted. In the future, implementation of GASB 67 and 68 will require prior period adjustments and the manage certain Plan assets to the PSABMRT for both plans. as Pension Trust Funds. effect could be material. Page 27 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE7: PENSION PLANS (CONTINUED) Plan Memberships As of December 31, 2023, the date of the most recent actuarial report, membership in the plans consisted of the following: Police Plan 6 2 Employee Plan 3 7 Active employees Retirees and beneficiaries currently receiving benefits Terminated employees entitled tob benefits but not yet receiving them 10 Benefit Provisions The Plans pay benefits in the event of death, disability or retirement of participants who Police Pension benefits are calculated as 50 percent of final monthly average salary averaged over the last 36 months of employment. Participants hired after June 1, 1998, also receive a service increment equal to $100 per month for service in excess of 25 years, up to a maximum of $500 per month. Killed in Service benefits are calculated at 50% of retirement benefit. Disability benefits are calculated as the greater of 50% of the members salary at the date of disability less Social Security disability benefit for the same injury or 50% of the final monthly average salary less Social Security disability benefit for Employee pension benefits are calculated as 1.8 percent of compensation averaged over the last 36 months of employment, multiplied by years of credited service. Years of meet the eligibility requirements. the same injury. credited service are limited to a maximum of 25 years. Summary of Significant Accounting Policies 1. Basis of Accounting Both plans' statements have been prepared on the accrual basis of accounting. Contributions and pension payments are recognized in the period when they are due. 2. Valuation of Investments 3. Contributions Plan investments are listed at fair value as reported by the PSABMRT. Act 205 requires that annual contributions be based upon the Plan's minimum municipal obligation (MMO). The MMO is based upon the Plan's biennial actuarial valuation. Employees covered under the Employee Pension Plan are required to contribute 5.0 percent of covered payroll to the Plan, which is currently eliminated. The contribution is governed by the Plan's governing ordinances and collective bargaining. Active members may elect to contribute up to 10 percent of wages. Page 28 BOROUGH OF IRWIN NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 (CONTINUED) NOTE7: PENSION PLANS (CONTINUED) Employees covered under the Police Pension Plan are required to contribute 5.0 percent of covered payroll to the Plan. This contribution is governed by the Plan's governing ordinances and collective bargaining. Full-time employees are currently not required to Both plans may also be eligible to receive an allocation of state aid from the General Municipal Pension System State Aid Program which must be used for pension funding. Any funding requirements established by the MMO are excess of employee contributions Administrative fees which may include, but are not limited to, investment management fees and actuarial services are charged to the Plan and funded through the MMO and/or contribute to the plan. and State Aid must be funded by the Borough. Plan earnings. Contributions Required and Contributions Made The actuarial computed minimum municipal obligation of contributions required to the pension plans for 2023 was $65,061 for the Police Pension Plan and $20,258 for the Employee Pension Plan Actual contributions made for the year ended December 31, 2023, were as follows: Police $ Employee $ 16,787 58,597 20,258 58.597 $ 37.045 Pension Plan Pension Plan Employee Borough of Irwin State Total Contributions to the Plans $ Police Pension Plan Schedule of Funding Progress Actuarial Accrued Value of Assets (a) 927,083 931,416 1,067,973 969,084 979,342 1,203,390 1,072,019 1,246,403 Accrued Liability Unfunded Liability (UAAL) Entry Age (b) 1,081,218 1,213,588 1,309,445 1,206,339 UAAL as a Percentage Payroll (b-a/c) Actual Valuation Date 1/1/2011 1/1/2013 1/1/2015 1/1/2017 1/1/2019 1/1/2021 1/1/2023 AAL- (UAAL) (b-a) Funded Ratio (b/a) Covered ofCovered Payroll (c) $ 124,323 70.00% 117,298 131.40% 153,393 89.02% 197,031 124.10% 223,530 147.70% 145,431 (90.30)% 410,322 (9.8)% $1 1,065,345 $ 1,143,393 $ 87,048 92.40% 154,135 85.70% 136,557 87.20% 244,504 79.90% 330,103 74.80% (131,371) 112.30% (40,064) 103.30% Note: Cash value of life insurance is not reflected in Actuarial Value of Assets or Actuarial Page 29 BOROUGH OF IRWIN DECEMBER: 31, 2023 (CONTINUED) Police Pension Plan Schedule of Contributions from Employer and Other Contributing Entities Annual Required Contribution $ 36,984 59,870 60,371 63,089 78,028 85,602 98,872 106,956 53,751 58,597 NOTES TO THE FINANCIAL STATEMENTS NOTE7: PENSION PLANS (CONTINUED) Year Ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Percentage Contributed 112% 100% 100% 100% 100% 100% 100% 100% 100% 100% Employee Pension Plan Schedule of Funding Progress Actuarial Accrued Value of Assets (a) 478,609 570,796 655,035 657,203 740,937 693,276 Unfunded Liability (UAAL) Entry Age (b) 511,847 548,736 634,501 658,631 682,205 723,543 UAAL as a Percentage Payroll (b-a/c) Actual Valuation Date 1/1/2011 1/1/2013 1/1/2015 1/1/2017 1/1/2019 1/1/2021 1/1/2023 AAL- (UAAL) (b-a) Funded Ratio (b/a) Covered ofCovered Payroll (c) $ 162,917 33.60% 190,599 17.40% 199,201 (11.10)% 174,978 (11.70)% 207,168 00.70% 251,215 (23.40)% 310,569 $444,325 $ 503,940 $ 59,705 88.20% 33,238 93.50% (22,060) 104.00% (20,534) 103.20% 1,428 99.80% (58,732) 108.60% 30,267 95.8% 9.7% Page 30 BOROUGH OF IRWIN NOTES TOTHE FINANCIAL STATEMENTS DECEMBER31,2023 (CONTINUED) Employee Pension Plan Schedule of Contributions from Employer and Other Contributing Entities Annual Required Contribution $ 23,564 21,617 22,130 11,976 11,749 21,763 12,248 19,811 25,625 20,085 20,258 NOTE7: PENSION PLANS (CONTINUED) Year Ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Percentage Contributed 100% 100% 100% 100% 100% 185% 100% 100% 100% 100% 100% 4.Actuarial Valuations and Other Inputs Police Pension Plan Employee Pension Plan Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Includes inflation at January 1, 2023 Entry age normal Level dollar, closed N/A Market' Value 6.75 percent 4.50 percent 2.75 percent MP-2020.. January 1, 2023 Entry age normal Level dollar, closed 20 years Market' Value 6.75 percent 4.50 percent 2.75 percent Mortality rates were based on the PUBS-2010 Mortality projected to 2026 using NOTE8 SUBSEQUENT EVENTS Management has evaluated subsequent events through the report date, January 20, 2025. Management is not aware of any subsequent events that require recognition or disclosure in the financial statements. SUPPLEMENTARY INFORMATION Page 32 BOROUGHOFI IRWIN SCHEDULE OFF REVENUES, EXPENDITURES, AND CHANGES INFUNDI BALANCES- CASHE BASIS BUDGETA AND ACTUAL- GENERALI FUND FOR THE YEARE ENDED DECEMBER: 31, 2023 Variance With Final Budget Positive (Negative) 93,032 (9,771) 13,194 11,439 (37,126) 150,196 (151,300) 69,664 234,457 (131,610) (13,344) (25,279) (67,138) 13,780 79,404 (1,229) (150,000) (1,643) (62,602) 7,062 32,939 38,938 (2,100) 950 112,667 (387,574) (204,180) (197,118) Budgeted. Amounts Original $ 1,419,600 $ 94,300 24,100 21,150 113,751 2,444,377 171,500 4,288,778 701,709 671,534 1,504,650 470,847 31,534 38,900 184,800 Actual (Cash Basis) Final Revenue: Taxes Licenses and Permits Fines and Forfeits Interest, Rents and Royalties Intergovernmental Revenues Charges for Services Miscellaneous Revenues Total Revenue Expenditures: General Government Public Safety Public Works: Sanitation Highways and Streets Other Public' Works Enterprises Culture and Recreation Insurance Compensation Debt Service: Principal Interest Total Expenditures Excess Revenue Over Expenditures Other Financing Sources (Uses): Refund of Prior Year Expenses Proceeds of GeneralF FixedA Asset Disposition Tax Anticipation Note Proceeds Refund of Prior Year Revenues Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenue and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balance, January 1, 2023 Fund Balance, December 31, 2023 1,419,600 $ 1,512,632 $ 94,300 24,100 21,150 113,751 2,444,377 171,500 4,288,778 701,709 671,534 1,504,650 470,847 31,534 38,900 184,800 84,529 37,294 32,589 76,625 2,594,573 20,200 4,358,442 467,252 803,144 1,517,994 496,126 98,672 25,120 105,396 1,229 150,000 1,643 3,666,576 691,866 32,939 38,938 150,000 (50) 112,667 (919,277) (584,783) 107,083 955,444 1,062,527 $ (197,118) Employer Paid Withholding Taxes and Unemployed 3,603,974 684,804 3,603,974 684,804 152,100 (1,000) (531,703) (380,603) 304,201 762,745 1,066,946 152,100 (1,000) (531,703) (380,603) 304,201 762,745 1,066,946 Page 33 BOROUGH OF IRWIN SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES INF FUNDE BALANCES- - CASHBASIS BUDGET AND ACTUAL LIQUIDI FUELS FUND FOR THE YEARI ENDED DECEMBER31, 2023 Variance With Final Budget Positive Budgeted Amounts Original $ 30 $ 122,396 122,426 1,000 122,396 123,396 (970) Actual Final (Cash Basis) (Negative) Revenue: Interest, Rents and Royalties Intergovernmental Revenues Total Revenue Expenditures: General Government Public Works: Highways and Streets Total Expenditures Excess Expenditures Over Revenues Other Financing Sources (Uses): Operating Transfers In Total Other Financing Sources (Uses) Excess of Revenue and Other Financing Sources Over (Under) Expenditures and Other Uses Fund Balance, January 1, 2023 Fund Balance, December 31, 2023 30 - $ 122,396 122,426 1,000 122,396 123,396 (970) 1,826 $ 124,022 125,848 1,796 1,626 3,422 1,000 (14,697) (13,697) (10,275) 14,441 14,441 4,166 (93,369) 137,093 137,093 (11,245) 14,441 14,441 3,196 1,002 (970) 94,371 (970) 94,371 93,401 $ 93,401 $ 4,198 $ (89,203) e 8 e Page 36 BOROUGH OF IRWIN PROPRIETARY FUNDS DECEMBER31, 2023 STATEMENT OF NETI POSITION- CASHI BASIS H. Allshouse Recreation Fund $ 60,989 $ 60,989 Civic Activities Sewer Project Committee Fund Total Assets: Cash Total Assets Net Position: Unrestricted Restricted Total Net Position 3,932 $ 242,273 $ 307,194 3,932 3,932 242,273 307,194 3,932 303,262 60,989 60,989 $ 242,273 3,932 $ 242,273 $ 307,194 Page 37 BOROUGHOF IRWIN STATEMENT OF REVENUES, EXPENSES, AND CHANGES INI NET POSITION- CASHI BASIS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER31, 2023 H. Allshouse Fund $ Civic Committee $ 4,663 $ 4,663 430 20,724 21,154 (16,491) 1,286 1,286 (15,205) 19,137 Recreation Activities Sewer Project Fund Total $ 4,663 4,663 430 20,724 5,217 26,371 (21,708) 4,689 308,960 (351,202) (37,553) (59,261) 366,455 Operating Revenue: Charges for Service Total Operating Revenues Operating Expenses: General Government Culture and Recreation Public Works Total Operating Expenses Operating Income (Loss) Nonoperating Revenue (Expenses): Interest Operating Transfers In Operating Transfers Out Changes in Net Position Net Position, January 1, 2023 Net Position, December 31, 2023 5,217 5,217 (5,217) 2,793 308,960 (351,202) (39,449) (44,666) 286,939 610 610 610 60,379 Total Nonoperating Revenue (Expenses) 60,989 $ 3,932 $ 242,273 $ 307,194 Page 38 BOROUGHOF IRWIN COMBINED STATEMENT OF ASSETS, LIABILITIES, AND NETE POSITION- CASHBASIS FIDUCIARY FUND TYPES DECEMBER31, 2023 Employee Pension Fund Police Pension Fund Total Assets Investments Receivables Total Assets Net Position Held in Trust For Pension Benefits Total Net Position $ 761,931 549 762,480 $ 1,431,727 $ 2,193,658 549 2,194,207 1,431,727 762,480 762,480 1,431,727 1,431,727 2,194,207 2,194,207 Page 39 BOROUGH OF IRWIN COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION- CASHBASIS FIDUCIARY FUND TYPES FOR THE YEAR ENDEDI DECEMBER31, 2023 Employee Pension Fund Police Pension Fund Total Operating Revenues: Intergovernmental Revenues: State Shared Revenues Other Revenues: Member Contributions Municipal Contributions Total Revenues Operating Expenses: Benefits Administration Fees Total Expenses Operating Income (Loss) Nonoperating Revenues (Loss): Interest Dividends Unrealized Gain (Loss) Total Nonoperating Revenues (Loss) Changes in Net Position Net Position, January 1, 2023 Net Position, December 31, 2023 $ 20,258 $ 16,787 37,045 51,196 11,448 62,644 (25,599) 3,561 8,620 82,622 94,803 69,204 65,061 $ 65,061 40,100 14,748 54,848 10,213 6,501 15,765 152,845 175,111 185,324 85,319 16,787 102,106 91,296 26,196 117,492 (15,386) 10,062 24,385 235,467 269,914 254,528 1,939,679 2,194,207 $ 693,276 $ 1,246,403 762,480 $ 1,431,727