Delta Regional Authority

Performance and Accountability Report

September 30, 2019
Delta Regional Authority

September 30, 2019

Federal Co-Chairman States’ Co-Chair 

Christopher Caldwell Governor Matt Bevin

Alternate Federal Co-Chairman Alternate States’ Co-Chair

Vacant Vacant

State Governors, Designees and Alternates

Alabama Louisiana

Governor Kay Ivey Governor John Bel Edwards

Kenneth Boswell (Designee) Leslie Durham

Crystal G. Davis (Alternate) (Designee & Alternate)

Arkansas Mississippi

Governor Asa Hutchinson Governor Phil Bryant

Amy Fecher (Designee) Trip Polles

Clint O’Neal (Alternate) (Designee & Alternate)

Illinois Missouri

Governor J. B. Pritzker Governor Michael L. Parson

Brandi Bradley (Designee) Luke Holtschneider 

Nicole Jai Budzinksi (Alternate) (Designee)

Kentucky Tennessee

Governor Matt Bevin Governor Bill Lee

Sandra Dunahoo Brooxie Carlton (Designee)

(Designee & Alternate) Brian Kelsey (Alternate)
Delta Regional Authority Service Area
Page(s)

Agency Head Letter 1 - 2

Section 1 - Management Discussion and Analysis 3 - 17

Section 2 - Performance Report 18 - 22

Section 3 - Financial Section

Independent Auditor’s Report 23 - 27

Basic Financial Statements

Balance Sheets 28

Statements of Net Cost 29

Statements of Changes in Net Position 30

Statements of Resources (Budgetary and Non-Budgetary) 31 - 32

Notes to Financial Statements 33 - 43

Other Information

Combining Balance Sheets 44 - 45

Combining Statements of Net Cost 46 - 47

Combining Statements of Changes in Net Position 48 - 49

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget 50 - 51

Schedule of Expenditures 52

Schedules of Grants Made 53 - 54

Delta Regional Authority

Performance and Accountability Report

September 30, 2019

Table of Contents


Section 1 – Management’s Discussion and Analysis
Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Introduction 

As management of Delta Regional Authority (DRA or the Authority), we offer readers of DRA’s 

Performance and Accountability Report this narrative overview and analysis of the financial 

activities of DRA for the fiscal year ended September 30, 2019. We encourage the readers to 

consider the information presented here in conjunction with information furnished within this 

report. 

The Delta Regional Authority is a federal-state partnership serving 252 counties and parishes in 

an eight-state region. Led by a Federal Co-Chairman and the Governors of each participating 

state, DRA is designed to remedy severe and chronic economic distress by stimulating economic 

development and fostering partnerships that have a positive impact on the region's economy. 

DRA helps economically distressed communities capitalize on other federal and state programs 

focused on basic infrastructure development, transportation improvements, business 

development and job training services. 

Congress mandated (7 U.S.C. §2009aa) that DRA shall provide funding for the following four 

categories: 

x Basic public infrastructure in distressed counties and isolated areas of distress; 

x Transportation infrastructure for the purpose of facilitating economic development in the 

region; 

x Business development, with emphasis on entrepreneurship; and 

x Job training or employment-related education, with emphasis on use of existing public 

educational institutions located in the region. 

Congressional stipulations include: 

x The Authority will allocate at least 75% of Authority funds for use in distressed counties; 

and

x The Authority shall allocate at least 50% of any funds for transportation and basic public 

infrastructure projects. 

The following is a discussion and analysis of the operating results and financial position of DRA, 

created by the Delta Regional Authority Act of 2000. The Authority's reauthorization expired on 

October 1, 2018 and was extended by the Agricultural Act of 2018 to 2022. 

As listed in the Management's Discussion and Analysis and throughout the Performance and 

Accountability Report, DRA continues to emphasize performance, accountability and 

sustainability within its programs. Please review this document in conjunction with the annual 

financial statements and accompanying notes. 

Program Highlights for Fiscal Year 2019 

DRA – through its available funding programs – invested $19,628,456 of its available funds into 

87 projects in its eight-state region. These investments combined with $34,905,644 in other 

federal, state and local funds – a ratio of 1.8 to 1 for a total project investment of $54,534,100. 

Additionally, DRA's investments include private investments totaling $67,788,000– a ratio of 3.5 

to 1. Ultimately, DRA funded projects leveraged $102,693,644 in other public and private 

investments for a total investment ratio of 5.2 to 1. 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

With these investments, DRA’s FY 2019 funding programs are expected to help achieve the 

following results: 

x Provide 33,547 families with access to improved water and sewer; 

x Train 20,775 individuals for a 21st century workforce; and 

x Create and retain 3,100 jobs. 

Fiscal Year 2019 Counties and Parishes 

Distressed counties are defined as those counties that are one percent higher than the national 

average for unemployment for the most recent 24-month period and/or 80% or less than the 

national per capita income. Non-distressed counties are those under one percent of the national 

average for unemployment and more than 80% of national per capita income. 

DRA’s enabling legislation requires the Authority to update its distressed and non-distressed 

county designation annually. The tabulation for Fiscal Year 2019 resulted in 231 distressed 

counties and parishes and 21 non-distressed counties (see list below). 

Arkansas Louisiana Mississippi Alabama - None

Arkansas Ascension Madison

Pulaski Cameron Rankin Kentucky - None

East Baton Rouge

Illinois East Feliciana Missouri

Hamilton Jefferson Cape Girardeau

White Lafourche

Williamson Orleans Tennessee

Plaquemines Fayette

St. Charles Madison

West Baton Rouge Shelby

Non-Distressed List as of September 30, 2019

Alabama Dallas Monroe Louisiana Iberia St. Helena

Barbour Escambia Perry Acadia Iberville St. James

Bullock Greene Pickens Allen Jackson St. John the Baptist

Butler Hale Russell Assumption Jefferson Davis St. Landry

Choctaw Lowndes Sumter Avoyelles La Salle St. Martin

Clarke Macon Washington Beauregard Lincoln St. Mary

Conecuh Marengo Wilcox Bienville Livingston Tangipahoa

Caldwell Madison Tensas

Distressed List as of September 30, 2019

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Arkansas Fulton Ouachita

 Louisiana

(continued) Grant St. Bernard

Ashley Grant Phillips Catahoula Morehouse Union

Baxter Greene Poinsett Claiborne Natchitoches Vermillion

Bradley Independence Prairie Concordia Ouachita Washington

Calhoun Izard Randolph De Soto Pointe Coupee Webster

Chicot Jackson Searcy East Carroll Rapides West Carroll

Clay Jefferson Sharp Evangeline Red River West Feliciana

Cleveland Lawrence St. Francis Franklin Richland Winn

Craighead Lee Stone

Crittenden Lincoln Union Mississippi Humphreys Sharkey

Cross Lonoke Van Buren Adams Issaquena Simpson

Dallas Marion White Amite Jasper Smith

Desha Mississippi Woodruff Attala Jefferson Sunflower

Drew Monroe Benton Jefferson Davis Tallahatchie

Bolivar Lafayette Tate

Illinois Jackson Pulaski Carroll Lawrence Tippah

Alexander Johnson Randolph Claiborne Leflore Tunica

Franklin Massac Saline Coahoma Lincoln Union

Gallatin Perry Union Copiah Marion Walthall

Hardin Pope Covington Marshall Warren

DeSoto Montgomery Washington

Kentucky Graves Marshall Franklin Panola Wilkinson

Ballard Henderson Muhlenberg Grenada Pike Yalobusha

Caldwell Hickman Todd Hinds Quitman Yazoo

Calloway Hopkins Trigg Holmes

Carlisle Livingston Union

Christian Lyon Webster Missouri Madison Scott

Crittenden McCracken Bollinger Mississippi Shannon

Fulton McLean Butler New Madrid Ste. Genevieve

Carter Oregon St. Francois

Tennessee Gibson Lake Crawford Ozark Stoddard

Benton Hardeman Lauderdale Dent Pemiscot Texas

Carroll Hardin McNairy Douglas Perry Washington

Chester Haywood Obion Dunklin Phelps Wayne

Crockett Henderson Tipton Howell Reynolds Wright

Decatur Henry Weakley Iron Ripley

Dyer

Distressed List as of September 30, 2019 (continued)

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Organizational Structure 

The DRA Board is comprised of Governors from the eight states in the DRA region along with 

the Federal member, Christopher Caldwell, who was appointed by President Trump as the 

Federal Co-Chairman in September 2017 and confirmed by the U.S. Senate in December 2017. 

The Governors annually appoint a States' Co-Chairman, and in FY 2019, Governor Matt Bevin 

of Kentucky was elected to serve as the tenth States' Co-Chairman. The DRA statute requires the 

Board to hold an annual quorum meeting, which compels the attendance of a majority of the 

states' Governors. For all other DRA meetings, Governors may appoint a designee/alternate to 

serve in their absence. 

The relationship between the Federal Member and Governors is a partnership in which all board 

members share the fiduciary responsibility of the Authority. Moreover, the Board's 

responsibilities are: to establish and approve investments for economic development to the 

region; assess the state of the region; facilitate and recommend interstate cooperation among 

region members; develop model legislation; support and train local development districts; and 

encourage private investment and cooperate with state economic development programs within 

the region. Board decisions require affirmation from the Federal member and a majority of 

participating Governors. 

The Federal Co-Chairman maintains an office within the DRA office and at the end of FY 2019 

was the only full-time federal employee. Additionally, the DRA office employs eleven nonfederal employees who carry out the day-to-day operations within the following areas: Finance 

and Administration; Project Development and Management; Policy Programs and Federal 

Affairs; and Public Engagement and Communication. The DRA organizational chart is as 

follows:

Organizational Chart 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Financial Management of Delta Regional Authority 

DRA utilizes the General Services Administration (GSA) for assistance in the management of 

DRA’s economic development obligations, disbursements, and the financial reporting of its 

federally-appropriated dollars. Because of the Authority’s relatively small size, the use of GSA 

has been very cost-effective. GSA also assists the Authority with compliance with many federalmandated requirements. State administrative funds are held by banks located in the DRA Region 

and are accounted for by the Director of Finance and Administration. 

DRA completed its 17th year of compliance with the Accountability of Tax Dollars Act of 2002. 

DRA has consistently initiated additional controls and expanded compliance testing to ensure the 

financial integrity of the Authority. 

Financial Highlights 

The following is a summary of changes in assets, liabilities, revenues, expenditures and net 

position at September 30, 2019, as compared to the prior year: 

x Total assets increased $5,146,661 or 9% in 2019 compared to an increase of 

$11,308,731 or 23% in 2018; 

x Total liabilities decreased $18,248 or 0.2% in 2019 compared to an increase of 

$5,245,972 or 253% in 2018; 

x Total net program costs decreased $459,462 or 2% in 2019 compared to an increase 

of $2,293,611 or 11% in 2018; 

x Financing sources of operations decreased $459,436 or 2% in 2019 compared to an 

increase of $2,267,023 or 11% in 2018; and 

x Net position increased $5,164,909 or 10% in 2019 compared to an increase of 

$6,062,759 or 13% in 2018. 

Overview of the Financial Statements 

The Management’s Discussion and Analysis introduces DRA’s principal statements. The 

principal statements include: (1) balance sheets, (2) statements of net cost, (3) statements of 

changes in net position, (4) statements of resources (budgetary and non-budgetary), and (5) notes 

to financial statements. DRA also includes in this report additional information to supplement the 

principal statements. 

Balance Sheet – The balance sheet is a summary of assets, liabilities and net position for each 

fiscal year. It includes assets in possession or managed by the entity exclusive of items subject 

to stewardship reporting (assets), amounts owed by the entity (liabilities), and amounts which 

comprise the difference (net position). 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

2019 2018 $ Change % Change

Total assets $ 65,271,268 $ 60,124,607 5,146,661$ 9%

Total liabilities 7,299,223 7,317,471 (18,248) -0.2%

Total net position 57,972,045 52,807,136 5,164,909 10%

Total liabilities & net position $ 65,271,268 $ 60,124,607 5,146,661$ 9%

2018 2017 $ Change % Change

Total assets $ 60,124,607 $ 48,815,876 $ 11,308,731 23%

Total liabilities 7,317,471 2,071,499 5,245,972 253%

Total net position 52,807,136 46,744,377 6,062,759 13%

Total liabilities & net position $ 60,124,607 $ 48,815,876 $ 11,308,731 23%

Summary Balance Sheet 

As of September 30,

Summary Balance Sheet 

As of September 30,

The FY 2019 and 2018 increases in total assets was largely attributable to federal appropriations 

for economic development purposes. Total liabilities decreased in FY 2019 due to normal trade 

policies during FY 2019. Net position increased in FY 2019 compared to FY 2018. The increase 

in net position is directly attributable to the EDA partnership. An increase in net position 

indicates that DRA’s financial condition improved in FY 2019. 

Statements of Net Cost – The statements of net cost are designed to show separately the 

components of the net cost of the reporting entity’s operations for the period. The net cost of 

operations is the gross cost incurred by the reporting entity less any exchange revenue earned 

from its activities. The gross cost of a program consists of the full cost of the outputs produced 

by that program plus any non-production costs that can be assigned to the program. Nonproduction costs are costs linked to events other than the production of goods and services. The 

net cost of a program consists of gross cost less related exchange revenues. By disclosing the 

gross and net cost of the entity’s programs, the statements of net cost provide information that 

can be related to the outputs and outcomes of the programs and activities. 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

2019 2018 $ Change % Change

Program Costs

Gross costs $ 24,668,449 $ 25,049,217 $ (380,768) -2%

Less: earned revenue (1,791,220) (1,712,526) (78,694) 5%

Total net program costs $ 22,877,229 $ 23,336,691 $ (459,462) -2%

2018 2017 $ Change % Change

Program Costs

Gross costs $ 25,049,217 $ 21,043,080 $ 4,006,137 19%

Less: earned revenue (1,712,526) (1,712,526) - 100%

Total net program costs $ 23,336,691 $ 21,043,080 $ 2,293,611 11%

Summary Statement of Net Costs 

Years Ended September 30,

Summary Statement of Net Costs 

Years Ended September 30,

The FY 2019 decrease in total net program costs is attributable to a decrease in EDA and 

SEDAP project disbursements.

Statements of Changes in Net Position – The statements of changes in net position report the 

change in net position during the reporting period. Net position is affected by changes to its two 

components: cumulative results of operations and unexpended appropriations. The statement 

format is designed to display both components of net position separately to enable the user to 

better understand the nature of changes to net position as a whole. 

2019 2018 $ Change % Change

Unexpended appropriations

Beginning balance $ 52,807,136 $ 46,744,351 6,062,785$ 13%

Total financing sources 5,164,909 6,062,785 (897,876) -15%

Total unexpended appropriations $ 57,972,045 $ 52,807,136 5,164,909$ 10%

Cumulative results of operations

Beginning balance $ - $ 26 $ (26) -100%

Total financing sources 22,877,229 23,336,665 (459,436) -2%

Net cost of operations 22,877,229 23,336,691 (459,462) -2%

Net change - (26) -100% 26

Cummulative results of operations - - - -

Net position $ 57,972,045 $ 52,807,136 5,164,909$ 10%

Years Ended September 30, 

Summary Statement of Changes in Net Position 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

2018 2017 $ Change % Change

Unexpended appropriations

Beginning balance $ 46,744,351 $ 37,556,987 $ 9,187,364 24%

Total Financing sources 6,062,785 9,187,364 (3,124,579) -34%

Total unexpended appropriations 52,807,136 $ $ 46,744,351 $ 6,062,785 13%

Cumulative results of operations

Beginning balance $ (26,536) 26 $ 26,562$ -100%

Total financing sources 23,336,665 21,069,642 2,267,023 11%

Cost of operations 23,336,691 21,043,080 2,293,611 11%

Net change (26) 26,562 (26,588) -100%

Cumulative results of operations - 26 (26) 100%

Net position $ 52,807,136 $ 46,744,377 $ 6,062,759 13%

Summary Statement of Changes in Net Position 

Years Ended September 30, 

The decrease in total financing sources is related to a decrease in disbursements of EDA and 

SEDAP funds expended in FY 2019 and FY 2018. 

Statements of Resources (Budgetary and Non-Budgetary) – The statements of resources 

(budgetary and non-budgetary) and related disclosures provide information about how budgetary 

resources were made available, as well as their status at the end of the year. It is the only 

financial statement predominantly derived from an entity’s budgetary general ledger in 

accordance with budgetary accounting rules, which are incorporated into generally accepted 

accounting principles (GAAP) in the United States of America for the federal government. 

2019 2018 $ Change % Change

Resources (budgetary & nonbudgetary) $ 39,224,020 $ 39,718,713 $ (494,693) -1%

Status of budgetary $ 37,079,675 $ 36,669,857 $ 409,818 1%

Net outlays, end of year $ 20,165,595 $ 13,993,546 $ 6,172,049 44%

Unpaid obligated balance, net $ 50,046,550 $ 51,662,246 $ (1,615,696) -3%

2018 2017 $ Change % Change

Resources (budgetary & nonbudgetary) $ 39,718,713 $ 33,446,330 $ 6,272,383 19%

Status of budgetary $ 36,669,857 $ 28,333,736 $ 8,336,121 29%

Net outlays, end of year $ 13,993,546 $ 16,061,792 $ (2,068,246) -13%

Unpaid obligated balance, net $ 51,662,246 $ 47,499,884 4,162,362$ 

9%

Years Ended September 30,

Years Ended September 30,

Summary Statement of Resources (Budgetary & Non-Budgetary)

Summary Statement of Resources (Budgetary & Non-Budgetary)

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

The decrease in FY 2019 is due to a reduction in the transfer of appropriation from EDA. 

Notes to Financial Statements – The notes to financial statements are an integral part of the 

financial statements and provide more detailed data. 

Limitations of the Financial Statements 

The principal financial statements have been prepared to report the financial position and results 

of operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b). While the 

statements have been prepared from the books and records of the entity in accordance with 

GAAP for federal entities and the formats prescribed by the President’s Office of Management 

and Budget, the statements are, in addition to the financial reports, used to monitor and control 

budgetary resources, which are prepared from the same books and records. 

Audit Opinion: Unmodified

Restatement: No

Material Weakness(es)

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Total Material Weaknesses - - - - - 

Year Ended September 30, 2019

Summary of Financial Statement Audit

Grants Oversight & New Efficiency (GONE) Act 

The objective of the Grants Oversight and New Efficiency (GONE) Act is to identify and close 

out expired grants. The covered grants are those within an agency’s cash payment management 

system that have been expired for two or more years and have not been closed out. 

DRA reviewed its close-out population of federal grants and cooperative agreements and found 

instances where either a grant award or cooperative agreement with the period of performance 

ending on or prior to September 30, 2017 had not been closed out. Delays in grant and 

cooperative agreement closeout, and challenges to be addressed pursuant to the GONE Act 

follow the table below. 

Category No. of 2-3 Years No. of >3-5 Years

Grants and cooperative agreements 

with undisbursed balances 1,470,249$ 10 9,900$ 1

Summary of Grants Oversight & New Efficiency (GONE) Act

As of September 30, 2019

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Challenges

Delays in Grant and Cooperative Agreement Award Closeout - As noted in DRA's enabling 

legislation, "Congress finds that certain States and local communities of the region, including 

local development districts, may be unable to take maximum advantage of Federal grant 

programs for which the States and communities are eligible because: (1) the States or 

communities lack the economic resources to provide the required matching share; or (2) there are 

insufficient funds available under the applicable Federal law authorizing the Federal grant 

program to meet pressing needs of the region." These limitations are often the reason DRA funds 

are needed as first dollars in on some of these grants. These limitations speak to other intrinsic 

limitations some of these communities experience, that being, other resources to ensure the 

projects are completed on time and on budget. 

Changes in the Fund Obligation Process - DRA has obligated funds over the course of three 

administrations. The first administration obligated with a signed grant agreement; the second 

administration obligated with a board approved (voted on) project. Typically grant agreements 

were signed and returned soon after, but there have been occasions where the signed grant 

agreement took much longer to return. This issue is exacerbated by an extremely small 

administrative staff with little continuity over DRA's first 17 years of existence. 

Planned Corrective Actions 

DRA will address the staffing situation to divide administrative tasks proportionally. DRA will 

be looking to purchase an accounting system which will accommodate financial accounting for 

both DRA administrative costs and grant funding. There are still a great number of outstanding 

grants and cooperative agreements, but more could be done to claw back unused and 

underutilized funding. DRA will improve training with the Local Development Districts to 

expedite the identification of these projects, allowing DRA to start the claw back process sooner. 

Likewise, DRA will need to further educate our board members on the risks associated with 

certain projects and how to identify projects that are capable of moving faster. Lastly, the 

demographics of the Delta region must be taken into consideration and the inherent challenges 

that exist here. Some leeway must be given to these communities that struggle to obtain federal 

funds. 

The Anti-Deficiency Act

Public Law 31 USC S 1341, Limitations on Expending and Obligating Amounts, 31 USC S 

1342, Limitation on Voluntary Services, and 31 USC S 1517, Prohibited Obligations and 

Expenditures, and 31 USC S 1501, Documentary Evidence Requirement for Government 

Obligations make up the core of this Act. 

31 USC, Section 1341, Limitations on Expending and Obligating Amounts 

An officer or employee of the U.S. Government or of the District of Columbia government may 

not--- 

 make or authorize an expenditure or obligation exceeding an amount available in an 

appropriation or fund for the expenditure or obligation; 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

 involve either government in a contract or obligation for the payment of money before an 

appropriation is made unless authorized by law; 

31 USC, Section 1342, Limitation on Voluntary Services 

An officer or employee of the U.S. Government or of the District of Columbia government may 

not accept voluntary services for either government or employ personal services exceeding that 

authorized by law except for emergencies involving the safety of human life or the protection of 

property. 

31 USC, Section 1517, Prohibited Obligations and Expenditures 

An officer or employee of the U.S. Government or of the District of Columbia government may 

not make or authorize an expenditure or obligation exceeding---

 an apportionment; or 

 the amount permitted by regulations prescribed under section 1514(a) of this title; 

31 USC, Section 1501, Documentary Evidence Requirement for Government Obligations 

An amount shall be recorded as an obligation of the U.S. Government only when supported by 

documentary evidence of---

 A binding agreement 

 A loan agreement 

 Order required by law 

 A grant or subsidy 

 A liability from litigation 

 Employment of persons 

 Public utilities services 

 Other 

Violations of the Anti-Deficiency Act 

Making or authorizing an obligation or expenditure: 

 In excess of an appropriation 

 Before an appropriation is made 

 In excess of an apportionment 

 In excess of agency regulations (e.g., allotment) 

 Accepting voluntary services (except in an emergency); employing personal services 

Violations of these rules will subject the officer or employee to: 

 Appropriate administrative discipline 

 Suspension from duty without pay 

 Removal from office 

Intentional violation of the Anti-Deficiency Act will subject the officer or employee to: 

 Fines up to $5,000 

 Imprisonment up to 2 years 

 Or both 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Reporting a Violation

A violation report has to be prepared by the head of the offending agency and sent to: 

 The President (through OMB) 

 The Speaker of the House 

 The President of the Senate 

 The Comptroller General 

The violation report must contain: 

 Date, amount, account involved in violation 

 The name and position of the person responsible 

 Discipline imposed

 Statement about the adequacy of administrative control system 

 Statement of actions taken to prevent it from ever happening again. 

For the year ended September 30, 2019, Delta Regional Authority complied with the AntiDeficiency Act. 

The Prompt Payment Act (PPA) 

The Prompt Payment Act was enacted to ensure the federal government makes timely payments. 

Bills are to be paid within 30 days after receipt and acceptance of material and/or services, or 

after receipt of a proper invoice whichever is later. When payments are not made timely, interest 

should be automatically paid. The basic requirements of the PPA for government finance offices 

are to: 

 Date stamp all incoming invoices. 

 Make payments no earlier than 23 days and no later than 30 days from the invoice date. 

 Take discounts only within the terms offered. 

 Pay interest automatically when payment is late. 

 Report performance based on statistical sampling to the Office of Management and 

Budget. 

Procedures and Guidelines DRA uses to comply with the Prompt Payment Act 

Mandatory IMP AC (government credit card program) for all purchases less than $2,500 may 

eliminate hours of collection time on smaller dollar invoices. Under the current VISA card 

program, vendors are paid usually within 2-3 days of shipment of the order. The merchant bank 

then collects from the government. The government purchase order is e-mailed to the vendor, 

input into their order processing system and then invoiced electronically to the payment office. 

When information is not re-keyed into systems, the chances for errors in the order and billing 

processes are reduced if not eliminated. Delta Regional Authority complied, in all relevant 

respects, with the Prompt Payment Act. 

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

Data Accountability and Transparency Act (DATA Act) of 2014 31 USC S6101, PL 113-101 

The purpose of the DATA Act is to establish government-wide financial data standards and 

increase the availability, accuracy, and usefulness of Federal spending information. The Act's 

vision was to provide reliable, timely, secure, and consumable financial management data for the 

purpose of promoting transparency, facilitating better decision making, and improving 

operational efficiency. 

Delta Regional Authority complied, with all material respects, with the DATA ACT and reported 

information quarterly, as required during the fiscal year. 

Fraud Reduction and Data Analytics Act (FRDAA) of 2015 

Under the Fraud Reduction and Data Analytics Act (FRDAA) of 2015, agencies are required to 

report on efforts to reduce fraud. Standards require agencies to identify fraud risk factors and 

programs with increased susceptibility for fraud. The report must include information on the 

agency’s progress in implementing: 

 Financial and administrative controls established pursuant to the act, 

 The fraud risk principle in the Standards for Internal Control in the Government, and OMB 

Circular A-123, Management’s Responsibility for Internal Control, with respect to leading 

practices for managing fraud risk, 

 Progress in identifying risks and vulnerabilities to fraud, including with respect to payroll, 

beneficiary payments, grants, large contracts, purchase and travel cards, and 

 Progress on establishing strategies, procedures, and other steps to curb fraud. 

Control 

Environment

Risk 

Assessment 

Control 

Activities

Information & 

Communication

Monitoring 

Activities

Demonstrates 

commitment to 

integrity and ethical 

values.

Define objectives 

and risk 

tolerances.

Designs control 

activities.

Uses relevant, 

quality information.

Performs ongoing 

monitoring activities.

Exercises oversight 

responsibilities.

Identifies, analyzes 

and responds to 

risk.

Selects and 

develops general 

system controls.

Communicates 

internally.

Evaluates issues and 

remediates 

deficiencies.

Establishes structure, 

authority and 

responsibility.

Assess fraud risk. Deploys & 

implements 

control activities.

Communicates 

externally.

Demonstrates 

commitment to 

competence.

Identifies, analyzes 

and responds to 

change.

Framework of Internal Control

Year Ended September 30, 2019

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Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

DRA maintains an annual Financial Internal Control and Risk Management Plan that identifies, 

through quantitative and qualitative analysis, transactional areas that are susceptible to 

inaccuracies and/or fraud. The plan contains specific process areas that are tested throughout the 

fiscal year to ensure the process results are accurate and reasonable. Government-issued travel 

cards have been identified as a program with a high risk for fraud. 

The following controls are in place to prevent/mitigate fraud within the government travel card 

program: 

 Reduced employee-held travel cards to $2,500, 

 A government travel card SOP is published defining the roles and rules of the program. 

The handbook is reviewed and updated as needed, and 

 Reduce the number of employees eligible for a government travel card. 

The following administrative controls are in place to detect potential fraud within the travel card 

program: 

 The Senior Accountant reviews purchase card holders’ statements and matches 

supporting receipts to billed charges monthly and communicates with cardholders 

regarding unmatched or suspicious charges. When cardholders deny unmatched or 

suspicious charges, the Accounting Supervisor refers such charges to the Director of 

Finance & Administration for review and disposition, 

 The Director of Finance & Administration rejects payments for unknown or suspicious 

charges and requests the bank to investigate those purchases deemed suspect, 

 After an investigation, the bank either provides copies of receipts to prove the employee 

initiated the charge or issues credit to the cardholder. 

Other areas reviewed for the annual Financial Internal Control and Risk Management Plan 

include: 

 Payroll, and how fraud could be perpetuated through the time management system. The 

Accounting/HR Supervisor prepares the payroll for bi-weekly submission to the Director 

of Finance/Administration, who reviews the submission for changes of personnel or 

salary from the prior month and budget and compares names to authorized personnel and 

salaries to authorized/approved salaries. 

 Contracts over $25,000, and how procurement procedures can be manipulated through 

fraud. 

Below are additional strategies, procedures, and other steps employed by the agency to curb 

fraud: 

 Prevent – educate employees on the care and use of a travel card, 

 Prevent – conduct detailed fraud risk assessments to focus management attention, 

 Deter/Detect – Promote effective reporting tools for suspicious or inappropriate activities 

(whistleblower hotline), 

 Anti-Fraud Policy/Training – communicate a policy and train employees to recognize 

suspicious or inappropriate activities, 

 Deter/Detect – Response to fraud allegations of how it will be investigated/resolved. 

16
Delta Regional Authority 

Management’s Discussion and Analysis

September 30, 2019 

DRA’s senior management believes that this policy sends a clear message that senior 

management is committed to preventing and detecting fraud committed against the organization. 

Contacting DRA’s Financial Management

This financial report is designed to fulfill the obligations of DRA as it relates to the 

Accountability for Tax Dollars Act of 2002. The report details the financial position of DRA as 

of September 30, 2019 and 2018, and demonstrates DRA’s accountability for all funds and 

appropriations received. 

If you have any questions about this report or need additional information, please contact the 

Delta Regional Authority via telephone by calling (662) 624-8600 or mail by directing inquiries 

to the Director of Finance & Administration, Delta Regional Authority, 236 Sharkey Ave, Suite 

400, Clarksdale, MS 38614. 

Other Contact/Reports 

Internet Home Page http://dra.gov

Fraud/Whistleblower http://dra.gov/accountability/promoting-a-transparent-government/#fraud

Agency Financial Report http://dra.gov/accountability/promoting-a-transparent-government/

Strategic Plan http://dra.gov/funding-programs/strategic-economic-development-plans-by-state/

17
Section 2 – Performance Report
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2019 

Overview 

The Government Performance and Results Act of 1993 ("GPRA") requires all federal agencies to 

submit a report to Congress on actual program results at the end of each Fiscal Year along with its 

audited financial statements outlined in the Office of Management and Budget (OMB) Circular 

No. A-136, Financial Audit Manual. This report includes a summary of results on the following 

DRA programs and initiatives: 

Project Development and Management 

 States’ Economic Development Assistance Program (SEDAP)

 Community Infrastructure Fund (CIF) 

 Public Works and Economic Adjustment Assistance (PWEAA) Program 

 Local Development Districts (LDD) Training/Administration 

Policy Programs and Initiatives 

 Delta Leadership Institute (DLI) 

 Delta Leadership Network (DLN) 

 Delta Doctors 

Regional Development Plan III (RDP III) Strategic Goals 

In April 2016, DRA presented its third Regional Development Plan (RDP III) as an assessment of, 

and response to, the region’s myriad opportunities, assets, and challenges. This plan serves to 

update the agency’s Regional Development Plan II (RDP II), originally adopted in 2008. The RDP 

III sets forth revised goals that will drive the DRA’s work through 2020, building on the successes 

of many of the DRA’s existing programs and setting new goals for the future.

Goal 1: Improved Workforce Competitiveness. 

Advance the productivity and economic competitiveness of the Delta workforce. 

Access to a skilled workforce is a crucial factor affecting the ability of businesses to succeed in 

today’s economy; thus employers are notably drawn to locations with concentrations of skilled 

workers. As national demographic trends project a decline in the working-age population over the 

coming decades, employers will increasingly have difficulties finding skilled workers. Thus, one 

of the most urgent priorities for communities across the country is to develop a pipeline of talented 

workers to support the growth of existing and future employers. This is especially true for 

communities in the Delta region as they compete for businesses, jobs, and economic opportunities. 

Goal 2: Strengthened Infrastructure. 

Strengthen the Delta’s physical, digital, and capital connections to the global economy.

High-functioning transportation networks and basic infrastructure (e.g. water, wastewater, 

electricity, and natural gas, and affordable broadband internet) are essential for the long-term 

success of resilient regional economies. While it will be important to maintain the Delta region’s 

18
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2019 

existing infrastructure, there are also opportunities to make strategic investments in transportation 

and broadband infrastructure that will boost the region’s economic potential. It is also necessary 

for communities to have the appropriate real estate options and financing available to attract new 

businesses and take advantage of the economic development opportunities available to them. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, and businesses. 

Strong local leadership in Delta communities is a prerequisite for the capacity building that will 

yield long-term economic prosperity for the region’s businesses and residents. Competitive and 

resilient communities are able to attract new jobs and investment and keep those jobs thanks in 

large part to their high level of engagement from community and business leaders. The 

development of a robust entrepreneurial environment is also important to the long-term success of 

the region. Entrepreneurs, innovative companies, creative workers, and technology are key 

elements of the regional economy. Finally, the quality of place in Delta communities has a major 

influence on their potential for economic development, providing an attractive environment that 

appeals to young professionals. 

Project Development and Management 

States’ Economic Development Assistance Program (SEDAP) - The States’ Economic 

Development Assistance Program is DRA’s primary investment program. Since 2002, DRA has 

leveraged more than $201 million of its own appropriations with more than $3.6 billion in other 

public and private sector dollars. SEDAP investments are subject to Federal Priority Eligibility 

Criteria and must help improve the following in Delta communities: 

 Basic Public Infrastructure 

 Transportation Infrastructure 

 Workforce Training and Education 

 Business Development and Entrepreneurship 

At least 50% of SEDAP funds must be invested in basic public infrastructure and transportation 

infrastructure. At least 75% of SEDAP funds must be invested in economically distressed counties 

and parishes. 

Community Infrastructure Fund (CIF) - The Community Infrastructure Fund helps strengthen 

the economic viability of Delta communities. In FY 2019, DRA invested $10 million in projects 

addressing flood control, basic public infrastructure, and local transportation improvements that 

enhance local and regional economies throughout the Delta region.

Public Works and Economic Adjustment Assistance Program (PWEAA) - In FY 2019, the U.S. 

Department of Commerce Economic Development Administration made $3 million of its Public 

Works and Economic Adjustment Assistance program available to DRA. This program supports 

rural communities by investing in projects that leverage existing regional assets and the 

19
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2019 

implementation of community development strategies that advance economic prosperity in 

distressed regions.

In FY 2019, DRA - through its available funding programs - invested $19,628,456 of its total 

appropriation into 87 projects in its eight-state region. This investment leveraged $34,905,644 in 

other federal, state and local funds - a ratio of 1.8 to 1 for a total project investment of $54,534,100. 

Additionally, DRA's investments attracted private investments totaling $67,788,000 - a ratio of 3.5 

to 1. Ultimately, DRA has leveraged $102,693,644 in other public and private investments for a 

total investment ratio of 5.2 to 1. 

With these investments, the 2019 DRA funding programs are expected to help achieve the 

following results: 

 Provide 33,547 families with access to improved water and sewer; 

 Train and prepare 20,775 individuals for the workforce; and 

 Create and retain 3,100 jobs. 

Goal 2: Strengthened Infrastructure. 

Strengthen the Delta’s physical, digital, and capital connections to the global economy. 

Aligned with DRA’s Regional Development Plan III: Goal 2 – Strengthened Infrastructure, 

SEDAP, CIF and PWEAA collectively direct public and private investments into basic public 

infrastructure and transportation projects that can facilitate business expansion, company 

relocation, and job growth in Delta communities. 

Local Development Districts (LDD) Training/Administration 

Per DRA's statue, local development districts (LDDs) are the Authority's front-line project 

developers and managers. The LDDs within the DRA footprint provide technical assistance, 

application support and review, and other services to DRA and the entities in their districts wishing 

to apply for DRA funding. LDDs help identify effective and impactful economic development 

projects for consideration for DRA investment. All projects, regardless of the funding source, are 

developed in coordination with the appropriate LDD. LDD staff review and certify that each 

project is legitimate and meets the parameters of DRA programs. 

Based on guidance from the LDD Advisory Board, LDDs who are out of compliance with 

certification requirements are ineligible to submit applications for DRA funding. These 

compliance requirements have helped ensure consistent improvements in the quality of 

applications over time. Guidance is given annually during the LDD training workshop and 

provided publicly in DRA's administrative program manual. 

These actions help ensure DRA stakeholders are receiving the most up to date technical assistance 

from their LDD when applying for DRA funding. 

20
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2019 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

DRA’s annual LDD Training/Administration provides executive directors and project 

development staff with best practices, innovative strategies and resources to boost the economic 

development potential of their regional footprints. 

Programs and Initiatives 

Delta Leadership Institute (DLI) 

Founded in 2005, the Delta Leadership Institute (DLI) supports local economic development by 

building leadership skills and fostering collaboration among established community leaders in the 

public, private, and nonprofit sectors to improve the economic and social opportunities of the Delta 

region and its people. DLI relies on the administrative, programming, and curricular support from 

a consortium of three university partners: The University of Alabama, Arkansas State University, 

and the University of Louisiana at Monroe. 

The year-long DLI Executive Academy is designed to provide professional leadership 

development and policy training in the issues most challenging to Delta communities. The 

Executive Academy held six sessions in 2019 that focused on transportation and infrastructure, 

public health and education, small business and entrepreneurship, culture and tourism, and public 

policy and innovative partnerships. The Delta Leadership Institute graduated 25 fellows from its 

fourteenth class in August 2019. 

Delta Leadership Network (DLN) 

The Delta Leadership Network comprises the alumni of the Executive Academy and is tasked with 

maintaining these relationships among regional leaders so as to foster regional collaboration, 

resource sharing, and continued education to help these leaders address the Delta’s most pressing 

issues. Now more than 500 community leaders make up the DLN, through which they continue 

their engagement with the Delta Leadership Institute at state meetings, an annual Delta Leadership 

Network conference, and events with new Executive Academy classes. 

In February 2019, the DLN hosted its sixth annual conference in Little Rock, AR, bringing together 

200 members, partners, and prospective DLI fellows. The Delta Leadership Network Annual 

Conference allowed a deep dive into the current programs and strategies working in Delta 

communities to address cross-sector partnership opportunities for vibrant, sustainable local 

economies. The summer state meetings brought opportunities to learn from economic development 

professionals from each state. 

21
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2019 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

DLI and DLN supports a wide array of leaders across the region through the Executive Academy, 

DLN conference, and continuing education programs. 

Delta Doctors 

In an effort to increase the number of doctors serving Delta residents, the Delta Regional Authority 

began implementing the Delta Doctors program in 2003. The program allows foreign physicians 

who are trained in the US to work in medically underserved areas for three years by providing 

those physicians with J-1 Visa Waivers. Most choose to stay far longer once they develop a patient 

base. Those in the Delta Doctors program do not take jobs away from U.S.-born physicians. 

Instead, they provide services in areas where there would otherwise be a shortage of physicians. 

The impact of Delta Doctors in the region is realized both by access to quality affordable healthcare 

and the economic impact the doctors make on the community in which they reside and practice. 

On average, each doctor participating in the program is estimated to create 5 full-time jobs within 

their clinics and offices, and an additional 3.4 full and part-time jobs within the communities where 

they work. 

Since the end of FY 2018, DRA has submitted 160 J-1 Visa Waiver recommendations to the U.S. 

Department of State for physician placement in medically underserved areas/health professional 

shortage areas throughout the 252 counties and parishes making up the DRA service area. 

Goal 1. Improved Workforce Competitiveness. 

Advance the productivity and economic competitiveness of the Delta workforce. 

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce 

Competitiveness, Delta Doctors improves the health and wellness of the Delta’s workforce to 

elevate productivity and competitiveness of the region’s employers by providing Americantrained, foreign physicians to health professional shortage areas (HPSA) and medically 

underserved areas (MUA).

22
Section 3 – Financial Section
 105 West President Ave. • P.O. Box 894 • Greenwood, MS 38935 • P. 662-453-7112 • F. 662-453-7123 

Robert K. VanDevender, CPA 

Lance Mohamed, CPA

Stribling W. Hargett, CPA

W. Lee Mattox, CPA 

William A. Adams, CPA 

Gay G. Moss, CPA

Fred T. Neely, CPA 

(1897-1967)

Billy Joe Killebrew, CPA 

(1942-2010)

Ralph F. Neely, CPA 

(1927 - )

Independent Auditor’s Report 

Federal and State Co-Chairs 

Members of the Board Delta Regional Authority 

Clarksdale, Mississippi 

In our audits of the fiscal years 2019 and 2018 financial statements of Delta Regional Authority (the 

Authority), we found 

 the Authority’s financial statements as of and for the fiscal years ended September 30, 2019 and 

2018, are presented fairly, in all material respects, in accordance with U.S. generally accepted 

accounting principles; 

 no material weaknesses in internal control over financial reporting based on the limited procedures 

we performed; and 

 no reportable noncompliance for fiscal year 2019 with provisions of applicable laws, regulations, 

contracts, and grant agreements we tested. 

The following sections discuss in more detail (1) our report on the financial statements, required 

supplementary information (RSI) and other information included with the financial statements; (2) our 

report on internal control over financial reporting; and (3) our report on compliance with laws, 

regulations, contracts, and grant agreements. 

Report on the Financial Statements 

In accordance with auditing standards generally accepted in the United States of America and the 

standards applicable to financial audits contained in Government Auditing Standards, issued by the 

Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 

19-03, Audit Requirements for Federal Financial Statements, we have audited the Authority’s balance 

sheets as of September 30, 2019 and 2018; the related statements of net cost, changes in net position, 

and resources (budgetary and non-budgetary) for the fiscal years then ended; and the related notes to the 

financial statements. 

We conducted our audit in accordance with U.S. generally accepted government auditing standards. We 

believe that the audit evidence we obtained is sufficient and appropriate to provide a basis of our audit 

opinion. 

Management’s Responsibility

Authority management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, 

and presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing 

23
and presenting other information included in documents containing the audited financial statements and 

auditor’s report, and ensuring the consistency of that information with the audited financial statements 

and the RSI; and (4) maintaining effective internal control over financial reporting, including 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 Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. U.S. 

generally accepted government auditing standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free from material misstatement. We 

are also responsible for applying certain limited procedures to RSI and other information included with 

the financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about the 

amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the auditor’s assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor considers 

internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 the entity’s internal control. Accordingly, we express no 

such opinion. An audit of financial statements also involves evaluating the appropriateness of the 

accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements. Our audit also 

included performing such other procedures as we considered necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, the Authority’s financial statements present fairly, in all material respects, the 

Authority’s financial position as of September 30, 2019 and 2018, and its net cost of operations, 

changes in net position, and resources (budgetary and non-budgetary) for the fiscal years then ended in 

accordance with U.S. generally accepted accounting principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory 

Board (FASAB) require that the RSI be presented to supplement the financial statements. Although 

the RSI is not a part of the financial statements, FASAB considers this information to be an essential 

part of financial reporting for placing the financial statements in appropriate operational, economic, or 

historical context. We have applied certain limited procedures to the RSI in accordance with U.S. 

generally accepted government auditing standards, which consisted of inquiries of management about 

the methods of preparing the RSI and comparing the information for consistency with management’s 

responses to the auditor’s inquiries, the financial statements, and other knowledge we obtained during 

the audit of the financial statements, in order to report omissions or material departures from FASAB 

guidelines, if any, identified by these limited procedures. We did not audit and we do not express an 

opinion or provide any assurance on the RSI because the limited procedures we applied do not 

provide sufficient evidence to express an opinion or provide any assurance. 

24
Other Information 

The Authority’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional analysis 

and is not a required part of the financial statements or the RSI. We read the other information 

included with the financial statements in order to identify material inconsistencies, if any, with the 

audited financial statements. Our audit was conducted for the purpose of forming an opinion on the 

Authority’s financial statements. We did not audit and do not express an opinion or provide any 

assurance on the other information. 

Report on Internal Control over Financial Reporting 

In connection with our audit of the Authority’s basic financial statements, we considered the 

Authority’s internal control over financial reporting, consistent with our auditor’s responsibility 

discussed below. We performed our procedures related to the Authority’s internal control over financial 

reporting in accordance with U.S. generally accepted auditing standards. 

Management’s Responsibility 

The Authority’s management is responsible for maintaining effective internal control over financial 

reporting, including 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 Responsibility

In planning and performing our audit of the Authority’s financial statements as of and for the year 

ended September 30, 2019, in accordance with the U.S. generally accepted government auditing 

standards, we considered the Authority’s internal control over financial reporting as a basis for 

designing audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the financial statements, but not for the purpose of expressing an opinion on the 

effectiveness of the Authority’s internal control over financial reporting. Accordingly, we do not 

express an opinion on the effectiveness of the Authority’s internal control over financial reporting. We 

are required to report all deficiencies that are considered to be significant deficiencies or material 

weaknesses. We did not consider all internal controls relevant to operating objectives, such as those 

controls relevant to preparing performance information and ensuring efficient operations. 

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide reasonable 

assurance that (1) transactions are properly recorded, processed, and summarized to permit the 

preparation of financial statements in accordance with U.S. generally accepted accounting principles, 

and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2) 

transactions are executed in accordance with provisions of applicable laws, including those governing 

the use of budget authority, regulations, contracts, and grant agreements, noncompliance with which 

could have a material effect on the financial statements. 

25
Because of its inherent limitations, internal control over financial reporting may not prevent, or detect 

and correct, misstatements due to fraud or error. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not designed 

to identify all deficiencies in internal control that might be material weaknesses and significant 

deficiencies or to express an opinion on the effectiveness of the Authority’s internal control over 

financial reporting. Given these limitations, during our audit, we did not identify any deficiencies in 

internal control over financial reporting that we considered to be material weaknesses. However, 

material weaknesses may exist that have not been identified. 

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of the Authority’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion on the 

effectiveness of the Authority’s internal control over financial reporting. This report is an integral part 

of an audit performed in accordance with U.S. generally accepted government auditing standards in 

considering internal control over financial reporting. Accordingly, this report on internal control over 

financial reporting is not suitable for any other purpose. 

Report on Compliance with Laws, Regulations, Contract, and Grant Agreements 

In connection with our audit of the Authority’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibility discussed below. We caution that noncompliance may occur and not be detected by these 

tests. We performed our tests of compliance in accordance with U.S. generally accepted government 

auditing standards. 

Management’s Responsibility

The Authority’s management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to the Authority. 

Auditor’s Responsibility 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

contracts, and grant agreements applicable to the Authority that have a direct effect on the 

determination of material amounts and disclosures in the Authority’s financial statements, and perform 

certain other limited procedures. Accordingly, we did not test compliance with all laws, regulations, 

contracts, and grant agreements applicable to the Authority. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2019 that would be reportable under 

U.S. generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to 

the Authority. Accordingly, we do not express such an opinion. 

26
Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that 

testing, and not to provide an opinion on compliance. This report is an integral part of an audit 

performed in accordance with U.S. generally accepted government auditing standards in considering 

compliance. Accordingly, this report on compliance with laws, regulations, contracts, and grant 

agreements is not suitable for any other purpose. 

Fred T. Neely & Company, PLLC 

Fred T. Neely & Company, PLLC 

Greenwood, Mississippi 

November 11, 2019 

27
Delta Regional Authority

Balance Sheets

September 30, 2019 and 2018

2019 2018

Assets

Intragovernmental

Fund balance with Treasury $ 61,307,533 $ 57,231,491

Total intragovernmental 61,307,533 57,231,491

Cash 3,567,795 2,415,632

Accounts receivable, net 278,034 312,797

General property and equipment, net 117,906 164,687

Total assets $ 65,271,268 $ 60,124,607

Liabilities

Intragovernmental

Employer contributions and payroll taxes payable $ 2,040 $ 1,827

Liability for advances and prepayments 5,118,919 4,120,542

Total intragovernmental 5,120,959 4,122,369

Accounts payable 1,613,049 2,630,697

Grants and other payables 483,478 493,214

Accrued funded payroll and leave 81,737 71,191

Total liabilities 7,299,223 7,317,471

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 57,972,045 52,807,136

Cumulative results of operations - all other funds 

(consolidated totals) - -

Total net position 57,972,045 52,807,136

Total liabilities and net position $ 65,271,268 $ 60,124,607

The accompanying notes are an integral part of these statements. 

28 
Delta Regional Authority

Statements of Net Cost

Years Ended September 30, 2019 and 2018

2019 2018

Program cost

Council of Inspectors General on Integrity and Efficiency

Fund balance with Treasury $ 24,668,449 $ 25,049,217

Less: earned revenue (1,791,220) (1,712,526)

Total net program costs 22,877,229 23,336,691

Net cost of operations $ 22,877,229 $ 23,336,691

The accompanying notes are an integral part of these statements. 

29 
Delta Regional Authority

Statements of Changes in Net Position

Years Ended September 30, 2019 and 2018

2019 2018

Unexpended appropriations

Beginning balance $ 52,807,136 $ 46,744,351

Budgetary financing sources

Appropriations received 25,000,000 25,000,000

Appropriations used (20,723,851) (20,275,963)

Other financing sources (uses)

Cost of operations absorbed by member states and others 2,090,867 2,152,319

Cost of operations absorbed by Rural Community Assistance 

Program (RCAP) 942,237 2,235,285

Disbursements of funds provided by member states and others (1,209,116) (773,247)

Disbursements of Rural Community Assistance Program 

(RCAP) funds (935,228) (2,275,609)

Total financings sources (uses) 5,164,909 6,062,785

Total unexpended appropriations $ 57,972,045 $ 52,807,136

Cumulative results of operations

Beginning balance $ - $ 26

Budgetary financing sources

Appropriations used 20,723,851 20,275,963

Other financing sources

Imputed financing from costs absorbed by others 9,034 11,846

Disbursements of RCAP funds 935,228 2,275,609

Disbursements of funds provided by member states and others 1,209,116 773,247

Total financing sources 22,877,229 23,336,665

Net cost of operations 22,877,229 23,336,691

Net change - (26)

Cumulative results of operations - -

Net position $ 57,972,045 $ 52,807,136

The accompanying notes are an integral part of these statements. 

30 
Federal 

State and 

Other RCAP Combined

Budgetary

NonBudgetaryNonBudgetaryBudgetary and 

Non-Budgetary

Budgetary resources 

Unobligated balance from prior year budget 

authority, net (discretionary and mandatory) 5,856,845 2,547,135$ (2,661)$ $ 8,401,319

Appropriations (discretionary and mandatory) 25,000,000 - - 25,000,000 

Spending authority from offsetting collections 

(discretionary and mandatory) 2,789,597 2,090,867 942,237 5,822,701

Total resources $ 33,646,442 4,638,002$ 939,576$ $ 39,224,020

Status of budgetary resources

New obligations and upward adjustments $ 22,230,000 -$ -$ 22,230,000 $ 

Unobligated balances/unexpended funds, 

end of year

Apportioned, unexpired accounts 11,416,441 - - 11,416,441 

Unapportioned, unexpired accounts - - - -

Unexpired unobligated balance, end of year 11,416,441 - - 11,416,441 

Unexpended funds 3,428,886 - 4,348 3,433,234

Unobligated/Unexpended balance, end of year 11,416,441 3,428,886 4,348 14,849,675

Total budgetary resources $ 3,428,886$ 33,646,441 4,348$ $ 37,079,675

Change in obligated balances 

(memorandum) (non-add) entries) 

Unpaid obligated balance, net, 

beginning of year $ 51,376,391 90,637$ 195,218$ $ 51,662,246

New obligations and upward adjustments 22,230,000 1,209,116 935,228 24,374,344

Other - - - -

Gross outlays (23,713,555) (1,245,735) (1,029,006) (25,988,296)

Recoveries of prior year unpaid obligations (1,744) - - (1,744)

Unpaid obligated balance, net, end of year

Undelivered orders 48,241,093 - - 48,241,093 

Accounts payable 1,649,999 54,018 101,440 1,805,457 

Total obligated balance, net, end of year $ 54,018$ 49,891,092 101,440$ $ 50,046,550

Outlays, net 

Outlays, net (total) (discretionary and 

mandatory) $ 20,923,958 $ (845,132) 86,769$ $ 20,165,595

Agency outlays, net (discretionary and 

mandatory) $ 20,923,958 $ (845,132) 86,769$ $ 20,165,595

Statement of Resources (Budgetary and Non-Budgetary)

Delta Regional Authority

Years Ended September 30, 2019 

The accompanying notes are an integral part of these statements. 

31 
Federal 

State and 

Other RCAP Combined

Budgetary

NonBudgetary Non-BudgetaryBudgetary and 

Non-Budgetary

Budgetary resources

Unobligated balance from prior year budget 

authority, net (discretionary and mandatory) 3,524,380 $ 1,168,063 $ 37,663 $ 4,730,106

Appropriations (discretionary/mandatory) 25,000,000 - - 25,000,000

Spending authority from offsetting collections 

(discretionary and mandatory) 5,601,003 2,152,319 2,235,285 9,988,607

Total resources $ 34,125,383 $ 3,320,382 $ 2,272,948 $ 39,718,713

Status of budgetary resources

New obligations and upward adjustments $ 28,270,283 $ - $ - $ 28,270,283

Unobligated balances/unexpended funds, 

end of year

Apportioned, unexpired accounts 5,722,311 - - 5,722,311

Unapportioned, unexpired accounts 132,789 - - 132,789

Unexpired unobligated balance, end of year 5,855,100 - - 5,855,100

Unexpended funds - 2,547,135 (2,661) 2,544,474

Unobligated/Unexpended balance, end of year 5,855,100 2,547,135 (2,661) 8,399,574

Total budgetary resources $ 34,125,383 $ 2,547,135 $ (2,661) $ 36,669,857

Change in obligated balances 

(memorandum) (non-add) entries) 

Unpaid obligated balance, net, 

beginning of year $ 47,242,566 $ 17,730 $ 239,588 $ 47,499,884

New obligations and upward adjustments 28,270,283 773,247 2,275,609 31,319,139

Other (5,270) - - (5,270)

Gross outlays (20,961,834) (700,340) (2,319,979) (23,982,153)

Recoveries of prior year unpaid obligations (3,169,354) - - (3,169,354)

Unpaid obligated balance, net, end of year

Undelivered orders 48,528,103 - - 48,528,103

Accounts payable 2,848,288 90,637 195,218 3,134,143

Total obligated balance, net, end of year $ 51,376,391 $ 90,637 $ 195,218 $ 51,662,246

Outlays, net 

Outlays, net (total) (discretionary and 

mandatory) $ 15,360,831 $ (1,451,979) $ 84,694 $ 13,993,546

Agency outlays, net (discretionary and 

mandatory) $ 15,360,831 $ (1,451,979) $ 84,694 $ 13,993,546

Delta Regional Authority

Statement of Resources (Budgetary and Non-Budgetary)

Years Ended September 30, 2018 

The accompanying notes are an integral part of these statements. 

32 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

Note 1 – Summary of Significant Accounting Principles 

A. Reporting Entity 

The Delta Regional Authority (DRA or the Authority) is a federal-state partnership serving a 

252 county/parish area in an eight-state region. Led by a federal co-chairman and the 

governors of each participating state, DRA is designed to remedy severe and chronic economic

distress by stimulating economic development and fostering partnerships that will have a 

positive impact on the region’s economy. DRA helps economically distressed communities take 

advantage of other federal and state programs focused on basic infrastructure development and

transportation improvements, business development and job training services. 

The Authority is a party to allocation transfers with other federal agencies as a transferring 

(parent) entity. Allocation transfers are legal delegations by one department of its authority to 

obligate budget authority and outlay funds to another department. A separate fund account 

(allocation account) is created in the U.S. Department of Treasury (Treasury) as a subset of the 

parent fund account for tracking and reporting purposes. All allocation transfers of balances are 

credited to this account, and subsequent obligations and outlays incurred by the child entity are 

charged to this allocation account as they execute the delegated activity on behalf of the parent 

entity. Generally, all financial activity related to these allocation transfers (e.g., budget 

authority, obligations, outlays) is reported in the financial statements of the parent entity from 

which the underlying legislative authority, appropriations and budget apportionments are 

derived. The Authority allocates funds, as the parent, to the United States Department of 

Agriculture (USDA) and the U.S. Economic Development Administration (EDA). 

B. Basis of Presentation 

These basic statements have been prepared from the accounting records of DRA in accordance 

with accounting principles generally accepted in the United States of America (GAAP) and the 

form and content for entity financial statements specified by the President’s Office of 

Management and Budget (OMB) in OMB Circular No. A-136, Financial Reporting 

Requirements, as amended. GAAP, for federal entities, are standards prescribed by the 

Federal Accounting Standards Advisory Board (FASAB), which has been designated as the 

official accounting standards setting body for the federal government by the American Institute

of Certified Public Accountants (AICPA). 

OMB Circular No. A-136 requires agencies to prepare basic statements, which include a balance 

sheet, statement of net cost, statement of changes in net position and statement of 

resources (budgetary and non-budgetary). The balance sheets present, as of September 30, 2019

and 2018, amounts of future economic benefits owned or managed by DRA (assets), 

amounts owed by DRA (liabilities), and amounts which comprise the difference (net position). 

The statements of net cost report the full cost of the program, both direct and indirect costs of 

the output, and the costs of identifiable supporting services provided by other segments within 

DRA and other reporting entities. The statements of changes in net position reflect financing 

33
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

sources available to DRA, the cost of its operations and the net change in its financial position. 

The statements of resources (budgetary and non-budgetary) report an agency’s budgetary

activity. 

C. Basis of Accounting 

Transactions are recorded on both the accrual and budgetary basis. Under the accrual basis 

of accounting, revenues are recognized when earned, and expenses are recognized when a 

liability is incurred, without regard to receipt or payment of cash. Budgetary accounting 

facilitates compliance with legal constraints on, and control of, the use of federal funds. The 

accompanying balance sheets, statements of net cost and statements of changes in net position 

have been prepared on an accrual basis. The statements of resources (budgetary and nonbudgetary) have been prepared in accordance with budgetary accounting rules.

 

D. Management of Financial Records

Federal appropriations are managed for DRA by the General Services Administration (GSA). 

Using the government-wide standard general ledger system (SGL), accounting transactions are 

initiated at DRA and ultimately entered into the accounting records by GSA. These transactions 

are designated in the accompanying financial statements as “Federal.”

DRA invoices and receives funds from the various member states to be used to 

pay administrative costs. This process meets the requirement of originating legislation which 

stipulates that “IN GENERAL - Administrative expenses of the Authority (except for the 

expenses of the federal co-chairperson, including expenses of the alternate and staff of 

the federal co-chairperson, which shall be paid solely by the federal government) shall be 

paid (A) by the federal government, in an amount equal to 50% of the administrative 

expenses; and (B) by the states in the region participating in the Authority, in an amount equal to

50% of the administrative expenses.” The funds received from the states are maintained in a 

local bank account, and transactions are initiated and managed by DRA staff. These transactions 

are designated in the accompanying financial statements as “State and Other.”

E. Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting 

principles requires management to make estimates and assumptions that affect the reported 

amount of assets and liabilities and disclosure of contingent assets and liabilities at the date 

of the financial statements and the reported amounts of revenues, expenses and other 

changes in net position during the reporting period. Actual results could differ from those 

estimates. 

34
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

F. Revenues and Other Financing Sources 

DRA is a federal/state partnership and receives appropriations. Other financing sources for DRA 

consist of imputed financing sources which are costs financed by other federal entities on behalf 

of DRA, as required by Statement of Federal Financial Accounting Standard (SFFAS) No. 5, 

Accounting for Liabilities of the Federal Government. DRA also had a reimbursable agreement 

with the Economic Development Authority (EDA) during fiscal years 2019 and 2018, and the 

Department of Labor (DOL) in fiscal year 2019.

G. Cash 

At September 30, 2019 and 2018, cash consisted of deposit accounts with various financial 

institutions. At September 30, 2019 and 2018, the Authority’s cash accounts were fully insured 

or otherwise collateralized. 

H. General Property and Equipment 

Property and equipment is stated at cost, less accumulated depreciation. DRA capitalizes 

property and equipment with an acquisition cost of $5,000 or more and a useful life exceeding 

two years. Depreciation is charged to expense using the straight-line method over the estimated 

useful life of five years for equipment. Leasehold improvements are amortized over the 

estimated period of occupancy or the life of the improvement, whichever is less. Expenditures 

for repairs and maintenance are charged to operating expense as incurred. 

I. Compensated Absences 

The Authority’s policies permit employees to accumulate annual and sick leave benefits that 

may be realized as paid time off. Expense and the related liability are recognized as annual 

leave benefits are earned. Sick leave benefits expected to be realized as paid time off are 

recognized as expense when the time off occurs, and no liability is accrued for such benefits 

employees have earned but not yet realized. The maximum accrual of annual leave is 320 hours, 

and there is no maximum accumulation of sick leave. Compensated absence liabilities for 

annual leave are computed using the regular pay and termination pay rates in effect at the 

balance sheet date, plus an additional amount for compensation-related payments such as Social 

Security, Medicare taxes and retirement computed using rates in effect at that date. 

J. Net Position

Net position is the residual difference between assets and liabilities and is comprised of 

unexpended appropriations and cumulative results of operations. Unexpended appropriations 

represent the amount of unobligated and unexpended budget authority. Unobligated balances are 

the amount of appropriations or other authority remaining after deducting the cumulative 

obligations from the amount available for obligation. The cumulative results of operations are the 

net results of the Authority’s operations since inception. 

35
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

K. Net Cost of Operations 

Earned revenues arise from the collection of state contributions and other inter-agency 

agreements are deducted from the full cost of the Authority’s major programs to arrive at net 

program cost. Earned revenues are recognized by the Authority to the extent reimbursements are 

payable from the public, as a result of costs incurred for services performed on the public’s 

behalf. 

L. Tax Exempt Status

As an instrumentality of the federal government, the Authority is exempt from income taxes 

imposed by any governing body whether it is a federal, state, commonwealth, local, or foreign 

government and exempt from sales and use taxes of the District of Columbia. 

Note 2 – Fund Balance with Treasury 

DRA’s fund balance with Treasury comes from appropriations and the reimbursable agreement 

with the DOT, DOL and EDA. Funds with the U.S. Treasury represent obligated and unobligated 

no-year funds available to finance allowable current and future expenditures. A summary of 

DRA’s fund balance with Treasury follows: 

2019 2018

Fund balance with Treasury 

General fund $ 61,307,533 $ 57,231,491

Status of fund balance with treasury

Unobligated balance

Available $ 11,416,441 $ 5,722,311

Unavailable 132,789 - 

Obligated balance not yet disbursed 49,891,092 51,376,391

Total $ 61,307,533 $ 57,231,491

Note 3 – Accounts Receivable, Net 

Receivables are substantially made up of amounts due from the USDA, which is a major 

granting agency for DRA, and the Rural Community Assistance Program (RCAP). At

September 30, 2019, $101,440 was due from USDA for subgrantee expenses recorded in the 

financial statements as program costs; $67,303 was due from USDA for administrative expenses; 

and $109,291 was due from a parish in Louisiana for a recoup of an RCAP project where the 

subgrantee did not complete certain requirements to maintain eligibility under this program. This 

money is subsequently being remitted to the USDA. At September 30, 2018, $163,048 was due 

from USDA for subgrantee expenses recorded in the financial statements as program costs; 

$31,458 was due from the public; and $118,291 was due from a parish in Louisiana for the 

36
Delta Regional Authority

Notes to Financial Statements 

September 30, 2019 and 2018 

project discussed above. DRA has historically collected any receivables due and thus has not 

established an allowance for uncollectible accounts. 

Note 4 – General Property and Equipment, Net 

General property and equipment balance consists of vehicles with a total cost of $255,995, 

accumulated depreciation of $138,089 and a net book value of $117,906 at September 30, 2019. 

Vehicles are depreciated over a five year estimated useful life. Depreciation expense for the fiscal 

year ended September 30, 2019 was $46,781. 

General property and equipment balance consists of vehicles with a total cost of $255,995, 

accumulated depreciation of $91,308 and a net book value of $164,687 at September 30, 2018. 

Vehicles are depreciated over a five year estimated useful life. Depreciation expense for the fiscal 

year ended September 30, 2018 was $53,937. 

Note 5 – Funds Received as Assessments from Member States 

Funds received as assessments from the various member states are maintained in DRA’s general

bank account separate from all other cash. These assessments are included with cash in the 

accompanying balance sheets. The states are required, by originating legislation, to pay 50% of 

the administrative costs of DRA. Amounts billed to the states are calculated at the beginning of 

each fiscal year and are based on the states’ 50% assessment of DRA administrative costs. The 

following table indicates funds on hand received from member states. 

2019 2018

Balance of state funds on hand, beginning of year $ - $ 236,538

Current year billed to and received from states 1,096,859 1,364,305 

Total available from states 1,096,859$ $ 1,600,843

Balance of state funds on hand, end of year $ - $ -

Note 6 – Liabilities Covered and Not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources are liabilities for which congressional action 

(DRA appropriation bill) is needed before budgetary resources can be provided. Liabilities of 

DRA are classified as liabilities covered or not covered by budgetary resources (DRA state 

assessments, transfers/grants from other agencies). They are as follows: 

37
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

2019 2018

Liabilities not covered by budgetary resources

Leave liability (state and other) $ 74,239 64,502$ 

Accounts payable (state and other) 54,018 90,637 

Deferred inflows from grants (RCAP) 64,372 93,371 

Deferred inflows from assessments (state and other) 125,000 - 

Grants payable (RCAP) 190,440 284,218 

Due to USDA (RCAP) 103,291 115,291 

Total liabilities not covered by budgetary resources 611,360 648,019 

Liabilities covered by budgetary resources

Intragovernmental

Employer contributions and payroll taxes payable 2,040 1,827

Liability for advances and prepayments 5,118,919 4,120,542

Total intragovernmental 5,120,959 4,122,369 

With the public

Accounts payable 1,559,031 2,540,060

Accrued funded payroll and leave 7,498 6,689

Employer contributions and payroll taxes payable 375 334

Total with the public 1,566,904 2,547,083 

Total liabilities covered by budgetary resources 6,687,863 6,669,452 

Total liabilities $ 7,299,223 7,317,471$ 

Other liabilities are classified as current. 

Note 7 – Operating Leases

DRA leases its primary operating facilities, including substantially all furniture and fixtures 

used, under a three year operating lease arrangement with Coahoma County, Mississippi. DRA 

also leases space for the Little Rock office from the Department of Finance and Administration 

(DFA) – Division of Building Authority under an 18 month operating lease arrangement and a 

space for the Washington D.C. office from State Services Organization, Inc. under a six year 

operating lease arrangement. Future minimum lease payments at September 30, 2019, was 

$53,215 due in fiscal year 2020.

The lease with Coahoma County may be terminated by DRA should DRA fail to receive funding 

from the United States, the existence of DRA be terminated, or should the governing body of 

DRA choose to move DRA’s office outside Coahoma County, Mississippi. The lease with the 

State Services Organization, Inc. may also be terminated for the above reasons. However, DRA 

will be liable for four months of base rent upon early termination of the State Services 

Organization, Inc. lease agreement. The DFA lease agreement requires termination through a 

10 days’ written notice if funds are insufficient for the DRA to continue operations where office 

38
Delta Regional Authority

Notes to Financial Statements 

September 30, 2019 and 2018 

space is being used. Rental expense was $140,083 and $146,945 for the years ended September 

30, 2019 and 2018, respectively. 

Note 8 – Apportionment Categories of Obligations Incurred 

The direct obligations are obligations incurred against amounts apportioned under category B on 

the latest Standard Form (SF) 132. The reimbursable obligations are those incurred against the 

reimbursable agreements with Treasury. A summary of these obligations are as follows: 

2019 2018

Direct - category B grants $ 19,434,327 $ 21,481,729

Direct - category B administration 1,811,636 1,463,699

Reimbursed - category B grants 946,382 5,076,695

Reimbursed - category B administration 37,655 248,160

Total obligations $ 22,230,000 $ 28,270,283

Note 9 – Undelivered Orders at the End of the Period 

The amount of the DRA’s budgetary resources obligated for unpaid undelivered orders was 

$48,241,093 and $48,528,103 as of September 30, 2019 and 2018, respectively. 

Note 10 – Explanation of the Relationship Between Liabilities Not Covered by Budgetary 

Resources on the Balance Sheets and the Change in Components Requiring or Generating 

Resources in the Future Periods 

Liabilities not covered by budgetary resources totaled $611,360 and $648,019 at September 30, 

2019 and 2018, respectively. The changes are the net increase/decrease of future funded 

expenses for annual leave and represent the difference between appropriations of annual 

funds for the prior and current annual funds. Accrued funded payroll liability is covered by 

budgetary resources and is included in the net cost of operations. The unfunded leave liability 

includes the expense related to the increase in annual leave liability for which the budgetary 

resources will be provided in a subsequent period. There were no increases/decreases in 

components requiring resources in future periods at September 30, 2019 and 2018. 

39
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

Note 11 – Costs and Exchange Revenue 

Intragovernmental costs are those good/services purchased from a federal entity: 

2019 2018

Program Costs

Intragovernmental costs $ 222,457 $ 184,433

Public costs 24,445,992 24,864,784

Total program costs 24,668,449 25,049,217

Less: intragovernmental earned revenue 1,791,220 1,712,526

Total net program costs $ 22,877,229 $ 23,336,691

Note 12 – Pension Plans 

Plan Description 

The Authority contributes to a defined contribution 401(k) plan covering all non-federal 

employees. Retirement expense is recorded for the amount of the Authority’s required 

contributions, determined in accordance with the terms of the plan. The plan is administered by 

Advanced Data Processing, Inc. The plan provides retirement and death benefits to plan members 

and their beneficiaries. Benefit provisions are contained in the Plan Document and were 

established and can be amended by action of the Authority’s governing body.

Additionally, the Authority’s federal employees participate in the Federal Employees’ Retirement 

System (FERS), a cost-sharing, multiple-employer defined benefit pension plan. FERS provides 

retirement and disability benefits, annual cost-of-living adjustments and death benefits to the plan 

members and beneficiaries. 

Funding Policy 

Contributions made by the Authority to the 401(k) defined contribution plan amounted to 

approximately $121,000 and $156,000 for the years ended September 30, 2019 and 2018, 

respectively. 

FERS covered employees, depending upon his or her hire date, are required to contribute 

between 0.8% and 4.4% of their annual covered salary. The Authority was required to contribute 

11.9% of annual covered payroll. The Authority’s contributions to FERS for the years ended 

September 30, 2019 and 2018, were approximately $20,170 and $31,750, respectively, which 

equaled the required contributions for each year. 

40
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

Note 13 – Risk Management

The Authority is exposed to various risks of loss related to torts; theft of, damage to and 

destruction of assets; business interruption; errors and omissions; employee injuries and 

illnesses; natural disasters and employee health and accident benefits. Commercial insurance 

coverage is purchased for claims arising from such matters other than those related to errors and 

omissions and natural disasters. Settled claims have not exceeded this commercial coverage in 

any of the three preceding years. 

Note 14 – Explanation of Differences between the Statement of Budgetary Resources and 

the Budget of the United States Government 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting, requires an explanation of material differences 

between budgetary resources available, the status of those resources and outlays as presented in 

the Statement of Budgetary Resources to the related actual balances published in the Budget of 

the United States Government (Budget). Budgetary resources made available to DRA include 

current appropriations, unobligated appropriations and recoveries of prior year obligations. The 

Budget that will include the FY 2019 actual budgetary execution information is scheduled for 

publication in February 2020, which will be available through OMB’s website 

(http://www.whitehouse.gov/omb). Accordingly, information required for such disclosure is not 

available at the time of publication of these financial statements. Balances reported in the FY 

2018 SBR and the related President’s Budget reflected the following:

FY2018

 Budgetary 

Resources 

 New 

Obligations and 

Upward 

Adjustments 

Distributed 

Offsetting 

Receipts Net Outlays 

Statement of Budgetary 

Resources $ 34,125,383 $ 28,270,283 $ - $ 15,360,031

Budget of the U.S. 

Government 34,000,000 28,000,000 15,000,000

$ 125,383 $ 270,283 360,031 -$ $ 

The difference between the Statement of Budgetary Resources and the Budget of the United 

States Government for budgetary resources, obligations incurred and net outlays are primarily 

due to rounding. Note accrued funded payroll liability is covered by budgetary resources and is 

included in the net cost of operations, whereas unfunded annual leave liability includes the 

expense related to the increase in annual leave liability for which the budgetary resources will be 

provided in a subsequent period. 

41
Delta Regional Authority

Notes to Financial Statements 

September 30, 2019 and 2018 

Note 15 – Reconciliation of Net Cost of Operations (Proprietary) to Budget 

Budgetary resources obligated are obligations for personnel, goods, services, benefits, etc., made 

by the Authority in order to conduct operations or acquire assets. Other (i.e., non-budgetary) 

financing resources are also utilized by the Authority in its program (proprietary) operations. For 

example, spending authority from offsetting collections and recoveries are financial 

resources from the recoveries of prior year obligations (e.g., the completion of a contract in 

which not all the funds were used) and refunds or other collections (i.e., funds used to conduct 

operations that were previously budgeted). An imputed financing source is recognized for future 

federal employee benefits costs incurred for the Authority employees that will be funded by 

Office of Personnel Management (OPM). Changes in budgetary resources obligated for goods, 

services and benefits ordered but not yet provided represent the difference between the beginning 

and ending balances of undelivered orders (i.e., goods and services received during the year 

based on obligations incurred the prior year represent a cost of operations not funded from 

budgetary resources). Resources that finance the acquisition of assets are budgetary resources 

used to finance assets and net cost of operations (e.g., increases in accounts receivables or 

capitalized assets). Financing sources yet to be provided represent financing that will be provided 

in future periods for future costs that are recognized in determining the net cost of operations for 

the present period. Finally, components not requiring or generating resources are costs included 

in the net cost of operations that do not require resources (e.g., depreciation and amortized 

expenses of assets previously capitalized). 

A reconciliation between budgetary resources obligated and net cost of operations (i.e., providing 

an explanation between budgetary and proprietary accounting) is as follows: 

2019 2018

Budgetary resources obligated $ 22,230,000 $ 28,270,283

Spending authority from recoveries and offsetting collections (2,787,854) (8,770,357)

Imputed financing from costs absorbed by others 9,034 11,846

Disbursements of funds provided by member states and others 1,209,116 773,247

Disbursements of RCAP funds 935,228 2,275,609

Change in budgetary resources obligated for goods, services 

and benefits ordered but not yet provided 1,281,705 776,037

Resources that finance the acquisition of assets - 26

Net cost of operations $ 22,877,229 $ 23,336,691

42
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2019 and 2018 

Note 16 – Subsequent Events

DRA has evaluated subsequent events occurring after the balance sheet date and through the date 

of November 11, 2019, the date the financial statements were available for release. Based upon 

this evaluation, DRA has determined that no subsequent events have occurred which require 

disclosure in the financial statements.

43
Federal 

State and 

Other RCAP Total 

Assets

Intragovernmental

Fund balance with Treasury $ 61,307,533 $ - $ - $ 61,307,533

Total intragovernmental 61,307,533 - - 61,307,533

Cash - 3,414,950 152,845 3,567,795

Accounts receivable, net - - 278,034 278,034

General property and equipment, net - 117,906 - 117,906

Total assets $ 61,307,533 $ 3,532,856 $ 430,879 $ 65,271,268

Liabilities

Intragovernmental

Employer contributions and payroll taxes 

payable $ 2,040 $ - $ - $ 2,040

Liability for advances and prepayments 5,118,919 - - 5,118,919

Total intragovernmental 5,120,959 - - 5,120,959

Interfund transfers 80,859 (149,287) 68,428 -

Accounts payable 1,559,031 54,018 - 1,613,049

Grants and other payables 375 125,000 358,103 483,478

Accrued funded payroll and leave 7,498 74,239 - 81,737

Total liabilities 6,768,722 103,970 426,531 7,299,223

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 54,538,811 3,428,886 4,348 57,972,045

Cumulative results of operations - all other 

funds (consolidated totals) - - - -

Total net position 54,538,811 3,428,886 4,348 57,972,045

Total liabilities and net position $ 61,307,533 $ 3,532,856 430,879$ $ 65,271,268

Delta Regional Authority

Combining Balance Sheet

September 30, 2019

44
Federal 

State and 

Other RCAP Total 

Assets

Intragovernmental

Fund balance with Treasury $ 57,231,491 $ - $ - $ 57,231,491

Total intragovernmental 57,231,491 - - 57,231,491

Cash - 2,129,512 286,120 2,415,632

Accounts receivable, net - 31,458 281,339 312,797

General property and equipment, net - 164,687 - 164,687

Total assets $ 57,231,491 $ 2,325,657 $ 567,459 $ 60,124,607

Liabilities

Intragovernmental

Employer contributions and payroll taxes 

payable $ 1,827 $ - $ - $ 1,827

Liability for advances and prepayments 4,120,542 - - 4,120,542

Total intragovernmental 4,122,369 - - 4,122,369

Interfund transfers 299,377 (376,617) 77,240 -

Accounts payable 2,540,060 90,637 - 2,630,697

Grants and other payables 334 - 492,880 493,214

Accrued funded payroll and leave 6,689 64,502 - 71,191

Total liabilities 6,968,829 (221,478) 570,120 7,317,471

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 50,262,662 2,547,135 (2,661) 52,807,136

Cumulative results of operations - all other 

funds (consolidated totals) - - - -

Total net position 50,262,662 2,547,135 (2,661) 52,807,136

Total liabilities and net position $ 57,231,491 $ 2,325,657 567,459$ $ 60,124,607

Delta Regional Authority

Combining Balance Sheet

September 30, 2018

45
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2019

Federal 

State and 

Other RCAP Total 

Program cost

Council of Inspectors General on 

Integrity and Efficiency

Gross costs $ 22,524,105 $ 1,209,116 935,228$ $ 24,668,449

Less: earned revenue (1,791,220) - - (1,791,220)

Total net program cost 20,732,885 1,209,116 935,228 22,877,229

Net cost of operations $ 20,732,885 $ 1,209,116 935,228$ $ 22,877,229

46
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2018

Federal 

State and 

Other RCAP Total 

Program cost

Council of Inspectors General on 

Integrity and Efficiency

Gross costs $ 22,000,361 773,247$ $ 2,275,609 $ 25,049,217

Less: earned revenue (1,712,526) - - (1,712,526)

Total net program cost 20,287,835 773,247 2,275,609 23,336,691

Net cost of operations $ 20,287,835 773,247$ $ 2,275,609 $ 23,336,691

47
Federal

State and 

Other RCAP Total 

Unexpended appropriations

Beginning balance $ 50,262,662 $ 2,547,135 $ (2,661) $ 52,807,136 

Budgetary financing sources

Appropriations received 25,000,000 - - 25,000,000 

Appropriations used (20,723,851) - - (20,723,851)

Other financing sources (uses)

Cost of operations absorbed by 

member states and others - 2,090,867 - 2,090,867 

Cost of operations absorbed by RCAP - - 942,237 942,237 

Disbursements of funds provided by 

member states and others - (1,209,116) - (1,209,116)

Disbursements of RCAP funds - - (935,228) (935,228)

 - 

Total financings sources (uses) 4,276,149 881,751 7,009 5,164,909 

Total unexpended appropriations $ 54,538,811 $ 3,428,886 $ 4,348 $ 57,972,045 

Cumulative results of operations

Beginning balance $ - $ - $ - $ - 

Budgetary financing sources

Appropriations used 20,723,851 - - 20,723,851 

Other financing sources

Imputed financing from costs absorbed 

by others 9,034 - - 9,034 

Disbursements of RCAP funds - - 935,228 935,228 

Disbursements of funds provided by 

member states and others - 1,209,116 - 1,209,116 

Total financing sources 20,732,885 1,209,116 935,228 22,877,229 

Net cost of operations 20,732,885 1,209,116 935,228 22,877,229 

Net change - - - - 

Total cumulative results of operations - - - - 

Net position $ 54,538,811 $ 3,428,886 $ 4,348 $ 57,972,045 

Year Ended September 30, 2019

Delta Regional Authority

Combining Statement of Changes in Net Position

48
Federal

State and 

Other RCAP Total 

Unexpended appropriations

Beginning balance $ 45,538,625 $ 1,168,063 $ 37,663 $ 46,744,351 

Budgetary financing sources

Appropriations received 25,000,000 - - 25,000,000 

Appropriations used (20,275,963) - - (20,275,963)

Other financing sources (uses)

Cost of operations absorbed by 

member states and others - 2,152,319 - 2,152,319 

Cost of operations absorbed by RCAP - - 2,235,285 2,235,285 

Disbursements of funds provided by 

member states and others - (773,247) - (773,247)

Disbursements of RCAP funds - - (2,275,609) (2,275,609)

Total financings sources (uses) 4,724,037 1,379,072 (40,324) 6,062,785 

Total unexpended appropriations $ 50,262,662 $ 2,547,135 $ (2,661) $ 52,807,136 

Cumulative results of operations

Beginning balance $ 26 $ - $ - $ 26 

Budgetary financing sources

Appropriations used 20,275,963 - - 20,275,963 

Other financing sources

Imputed financing from costs absorbed 

by others 11,846 - - 11,846 

Disbursements of RCAP funds - - 2,275,609 2,275,609 

Disbursements of funds provided by 

member states and others - 773,247 - 773,247 

Total financing sources 20,287,809 773,247 2,275,609 23,336,665 

Net cost of operations 20,287,835 773,247 2,275,609 23,336,691 

Net change (26) - - (26)

Cumulative results of operations - - - - 

Net position $ 50,262,662 $ 2,547,135 $ (2,661) $ 52,807,136 

Delta Regional Authority

Combining Statement of Changes in Net Position

Year Ended September 30, 2018

49
Delta Regional Authority

Year Ended September 30, 2019

Federal 

State and 

Other RCAP Total 

Resources used to finance activities

Budgetary resources obligated

Obligations incurred $ 22,230,000 $ - $ - $ 22,230,000

Less: spending authority from offsetting collections 

and recoveries 2,787,853 - - 2,787,853

Obligations net of offsetting collections and recoveries 19,442,147 - - 19,442,147

Net obligations 19,442,147 - - 19,442,147

Other resources

Imputed financing from costs absorbed by others 9,034 - - 9,034

Disbursements of funds provided by member states and 

others - 1,209,116 - 1,209,116

Disbursements of RCAP funds - - 935,228 935,228

Net other resources used to finance activities 9,034 1,209,116 935,228 2,153,378

Total resources used to finance activities 19,451,181 1,209,116 935,228 21,595,525

Resources used to finance items not part of the net 

cost of operations

Change in budgetary resources obligated for goods, 

services and benefits ordered but not yet provided (1,281,705) - - (1,281,705)

Total resources used to finance items not part of the 

net cost of operations (1,281,705) - - (1,281,705)

Total resources used to finance the net cost of 

operations 20,732,885 1,209,116 935,228 22,877,229

Components of the net cost of operations that will 

require or generate resources in the future periods

Increase in annual leave liability - - - -

Total components of the net cost of operations that will 

require or generate resources in the future periods - - - -

Total resources used to finance the net cost of 

operations $ 20,732,885 $ 1,209,116 $ 935,228 $ 22,877,229

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

50
Delta Regional Authority

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

Year Ended September 30, 2018

Federal 

State and 

Other RCAP Total 

Resources used to finance activities

Budgetary resources obligated

Obligations incurred $ 28,270,283 $ - $ - $ 28,270,283

Less: spending authority from offsetting collections 

and recoveries 8,770,357 - - 8,770,357

Obligations net of offsetting collections and recoveries 19,499,926 - - 19,499,926

Net obligations 19,499,926 - - 19,499,926

Other resources

Imputed financing from costs absorbed by others 11,846 - - 11,846

Disbursements of funds provided by member states and 

others - 773,247 - 773,247

Disbursements of RCAP funds - - 2,275,609 2,275,609

Net other resources used to finance activities 11,846 773,247 2,275,609 3,060,702

Total resources used to finance activities 19,511,772 773,247 2,275,609 22,560,628

Resources used to finance items not part of the net 

cost of operations

Change in budgetary resources obligated for goods, 

services and benefits ordered but not yet provided (776,037) - - (776,037)

Other (26) - - (26)

Total resources used to finance items not part of the 

net cost of operations (776,063) - - (776,063)

Total resources used to finance the net cost of 

operations $ 20,287,835 $ 773,247 $ 2,275,609 $ 23,336,691

51
Federal State and Other RCAP Total

Grants, subsidies and contributions $ 19,136,415 $ - $ 935,228 $ 20,071,643

Consulting and other services 575,242 448,710 - 1,023,952

Employee benefits 174,837 110,256 - 285,093

Personnel services 454,724 340,663 - 795,387

Seminars and meetings - 557 - 557

Travel and transportation of persons 62,738 50,677 - 113,415

Rent, communications and utilities 252,831 56,374 - 309,205

Supplies and materials 34,835 25,649 - 60,484

Printing and reproduction 32,886 32,874 - 65,760

Office expense 8,377 143,356 - 151,733

Total expenditures $ 20,732,885 $ 1,209,116 935,228$ $ 22,877,229

Year Ended September 30, 2019

Delta Regional Authority

Schedule of Expenditures

Paid From

52
DRA 

Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

Basic public infrastructure $ 6,537,339 $ 32,502,401 49.7% $ 8,533,368 $ 41,447,325 58.5% $ 3,818,801 $ 15,580,377 37.0%

Transportation infrastructure 2,695,060 52,202,733 20.5% 2,030,162 18,630,577 13.9% 1,563,060 12,061,015 15.1%

Business development 1,552,369 2,890,177 11.8% 1,755,889 8,351,196 12.0% 2,046,194 16,674,410 19.8%

Work development 1,860,661 9,846,747 14.1% 1,921,076 19,911,775 13.2% 1,969,852 30,175,127 19.1%

Other 517,000 1,575,625 3.9% 350,000 450,000 2.4% 922,917 2,282,729 8.9%

$ 13,162,429 $ 99,017,683 100.0% $ 14,590,495 $ 88,790,873 100.0% $ 10,320,824 $ 76,773,658 100.0%

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated

State 

Allocation State %

State allocations

Alabama $ 1,627,615 $ 1,280,016 10.3% $ 1,529,491 $ 1,242,514 10.3% $ 1,046,252 $ 1,046,252 10.1%

Arkansas 2,266,423 1,825,802 14.7% 2,040,625 1,718,707 14.2% 1,442,110 1,442,110 13.9%

Illinois 1,057,353 997,776 8.0% 1,187,302 1,025,970 8.5% 844,671 844,671 8.1%

Kentucky 1,270,726 1,163,635 9.4% 1,486,395 1,130,172 9.4% 924,312 924,312 8.9%

Louisiana 2,565,003 2,465,089 19.9% 2,655,528 2,439,398 20.2% 2,079,313 2,069,314 19.9%

Mississippi 1,187,201 1,930,012 15.6% 2,712,653 1,869,800 15.5% 1,468,630 1,538,098 14.8%

Missouri 2,033,641 1,419,708 11.5% 1,438,501 1,377,358 11.4% 1,152,368 1,152,368 11.1%

Tennessee 1,154,467 1,313,069 10.6% 1,540,000 1,275,656 10.6% 1,363,168 1,363,168 13.1%

$ 13,162,429 $ 12,395,107 100.0% $ 14,590,495 $ 12,079,575 100.0% $ 10,320,824 $ 10,380,293 100.0%

*Grant obligation process for 2019 not completed as of audit report date. 

Obligations may be more than allocated due to deobligation and reobligation of prior years' unused funds. 

2019

2018

2018

2017

2018

Delta Regional Authority

Schedule of Grants Made*

Years Ended September 30, 2019, 2018 and 2017

2019

53
DRA 

Obligated 7otal Funds Funding 

DRA 

Obligated 7otal Funds

Funding 



DRA 

Obligated 

Basic public infrastructure 4,883,584$ $ 22,349,683 845 7,240,001$ $ 85,797,841 725 4,480,890$ 

Transportation infrastructure 895,900 1,410,900 155 2,450,000 65,396,670 245 2,100,000 Business development - 00 300,000 - 9,610,052 30 

 

:orN development - 00 - - 00 - 

 

Other - 00 - - 00 - 

 

5,779,484$ $ 23,760,583 1000 9,990,001$ $ 160,804,563 1000 6,580,890$ 

DRA 

Obligated

State 

Allocation State 

DRA 

Obligated

State 

Allocation State 

DRA 

Obligated

State allocations

Alabama 707,390$ $ 707,390 93 -$ $ 00 - 

$ 

ArNansas 445,900 445,900 58 1,030,684 1,030,684 157 1,350,000 ,llinois 340,621 340,621 45 305,706 305,706 46 515,000 .entucNy 1,195,102 1,195,102 157 1,174,500 1,174,500 178 800,000 /ouisiana 1,608,884 1,608,884 211 1,400,000 1,400,000 213 1,211,90

 

0ississippi 1,481,587 1,481,587 194 820,000 820,000 125 2,963,100 0issouri - 00 - - 00 1,600,000 - 

Tennessee 1,850,000 1,850,000 242 1,850,000 1,850,000 281 1,550,000 

7,629,484$ $ 7,629,484 1000 6,580,890$ $ 6,580,890 1000 9,990,00

$ 


Grant obligation process for 2019 not completed as of audit report date 

  

&ommunity ,nfrastructure )und (&,))

Delta Regional Authority

Schedule of Grants 0ade


Years Ended September 30, 2019, 2018 and 2017

  

54