DELTA REGIONAL AUTHORITY 

PERFORMANCE AND ACCOUNTABILITY REPORT 

SEPTEMBER 30, 2017 
2 

DELTA REGIONAL AUTHORITY 

PERFORMANCE AND ACCOUNTABILITY REPORT 

SEPTEMBER 30, 2017

CONTENTS 

 Page 

Agency Head Letter 4 

 

 

SECTION 1 – MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis 7 

SECTION 2 – PERFORMANCE SECTION 

Fiscal Year 2017 Performance Report 25 

SECTION 3 – FINANCIAL SECTION

Independent Auditor’s Report 41 

Basic Financial Statements 

Balance Sheets 45 

Statements of Net Cost 46 

Statements of Changes in Net Position 47 

Statements of Resources (Budgetary and Non-Budgetary) 48 

Notes to Financial Statements 50 
3 

CONTENTS (CONTINUED) 

 Page 

Other Information 

Combining Balance Sheets 62 

Combining Statements of Net Cost 64 

Combining Statements of Changes in Net Position 66 

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget 68 

Schedule of Expenditures 70 

 

Schedules of Grants Made 71 

Independent Auditor’s Report on Internal Control Over Financial Reporting 

 and on Compliance and Other Matters Based on an Audit of the Financial 

 Statements Performed in Accordance with Government Auditing Standards 73 



7

SECTION 1 - MANAGEMENT'S DISCUSSION AND ANALYSIS
8

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

DELTA REGIONAL AUTHORITY 

Listing of Officials 

As of September 30, 2017 

Federal Co-Chairman State’s Co-Chairman 

Vacant Governor Kay Ivey 

Alternate Federal Co-Chairman Alternate State’s Co-Chairman 

Mr. Peter Kinder Mr. Kenneth Boswell 

STATE GOVERNORS, DESIGNEES, AND ALTERNATES

Alabama Louisiana

Governor Kay Ivey Governor John Bel Edwards

Mr. Kenneth Boswel (Designee) Ms. Leslie Durham

Ms. Kelly Chasteen (Alternate) (Designee & Alternate)

Arkansas Mississippi

Governor Asa Hutchinson Governor Phil Bryant

Mrs. Amy Fecher Mr. Bobby Morgan

(Designee & Alternate) (Designee & Alternate)

Illinois Missouri

Governor Bruce Rauner Governor Eric Greitens

Mr. Victor Nurusis (Designee) Mr. Caleb Jones (Designee)

Ms. Kim Watson (Alternate)

Kentucky Tennessee

Governor Matt Bevin Governor Bill Haslam

Ms. Sandra Dunahoo Mr. Ted Townsend (Designee)

(Designee & Alternate) Ms. Brooxie Carlton (Alternate)
9
 

10

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Introduction 

The Delta Regional Authority (the Authority or DRA) 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 federa l 

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: 

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

• Transportation infrastructure for the purpose of facilitating economic 

 development in the region; 

• Business development, with emphasis on entrepreneurship; and 

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

 public educational institutions located in the region. 

Congressional stipulations include: 

• The Authority will allocate at least 75% of Authority funds for use in distressed 

counties; and 

• 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 original authorization 

expired on October 1, 2007, but was extended by the Agricultural Act of 2014 to 2018. 

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. 
 

11

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Program Highlights for Fiscal Year 2017 

In FY 2017, DRA - through its available funding programs- invested $22,866,244 of its total 

appropriation into 94 projects in its eight-state region. This investment leveraged $62,498,118 in 

other federal, state and local funds - a ratio of 2.7 to 1 for a total project investment of $85,364,362. 

Additionally, DRA's investments attracted private investments totaling $160,120,454 - a ratio of 

7.0 to 1. Ultimately, DRA has leveraged $222,618,572 in other public and private investments for 

a total investment ratio of 9.7 to 1. 

With these investments, the 2017 DRA funding programs are expected to help achieve the 

following results: 

• Provide 250,015 families with access to improved water and sewer; 

• Train 104,212 individuals for a 21st century workforce; and 

• Create and retain 5,262 jobs. 

Over the course of 16 funding cycles, DRA has invested $185,795,715 in 1,150 projects in its 

eight-state region, leveraging $1,087,617,292 in other federal, state and local funds at a ratio of 

5.9 to 1. Additionally, this investment has attracted $2,462,269,583 in private investment - a ratio 

of 13.3 to 1 - for a total of $3,735,682,591 in leveraged public and private funds resulting in a 

leverage ratio of 19.1 to 1. 

Since FY 2002, DRA funding programs have helped to accomplish the following results: 

• 75,792 families provided with access to improved water and sewer; 

• 8,458 individuals trained for a 21st century workforce; and 

• 38,188 jobs created and retained. 

In addition, the following future outcomes are projected: 

• Provide 299,236 families with access to improved water and sewer; 

• Train 127,644 individuals for a 21st century workforce; and 

• Create and retain 17,480 jobs. 
 

12

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017 

Fiscal Year 2017 Counties and Parishes 

Distressed counties are defined as those counties that are one percent higher (6.2%) than the 

national average (5.2%) 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. 

The DRA Enabling Legislation requires the Authority to update its distressed and non-distressed 

county designation annually. The tabulation for Fiscal Year 2017 resulted in 234 distressed 

counties and parishes and 18 non-distressed counties (see list below). 

Distressed List as of September 30, 2017 

Alabama (20) Jefferson Christian Morehouse Issaquena New Madrid

Barbour Lawrence Crittenden Natchitoches Jasper Oregon

Bullock Lee Fulton Orleans Jefferson Ozark 

Butler Lincoln Graves Ouachita Jefferson Davis Pemiscot

Choctaw Lonoke Henderson Pointe Coupee Lafayette Perry

Clarke Marion Hickman Rapides Lawrence Phelps 

Conecuh Mississippi Hopkins Red River Leflore Reynolds

Dallas Monroe Livingston Richland Lincoln Ripley 

Escambia Ouachita Lyon St. Bernard Marion Scott 

Greene Phillips McLean St. Helena Marshall Shannon

Hale Poinsett Marshall St. James Montgomery Ste. Genevieve

Lowndes Prairie Muhlenberg St. John the Baptist Panola St. Francois

Macon Randolph Todd St. Landry Pike Stoddard

Marengo Searcy Trigg St. Martin Quitman Texas 

Monroe Sharp Union St. Mary Sharkey Washington

Perry St. Francis Webster Tangipahoa Simpson Wayne 

Pickens Stone Tensas Smith Wright 

Russell Van Buren Louisiana (48) Union Sunflower

Sumter White Acadia Vermillion Tallahatchie Tennessee (21)

Washington Woodruff Allen Washington Tate Benton

Wilcox Assumption Webster Tippah Carroll 

Illinois (14) Avoyelles West Carroll Tunica Chester

Arkansas (39) Alexander Beauregard West Feliciana Union Crockett

Ashley Franklin Bienville Winn Walthall Decatur

Baxter Gallatin Caldwell Warren Dyer 

Bradley Hardin Catahoula Mississippi (45) Washington Gibson Calhoun Jackson Claiborne Adams Wilkinson Hardeman

Chicot Johnson Concordia Amite Yalobusha Hardin

Clay Massac De Soto Attala Yazoo Haywood

Cleveland Perry East Carroll Benton Henderson

Craighead Pope East Feliciana Bolivar Missouri (28) Henry

Crittenden Pulaski Evangeline Carroll Bollinger Lake 

Cross Randolph Franklin Claiborne Butler Lauderdale

Dallas Saline Grant Coahoma Carter Madison

Desha Union Iberia Copiah Crawford McNairy

Drew Williamson Iberville Covington Dent Obion 

Fulton Jackson DeSoto Douglas Shelby

Grant Kentucky (20) Jefferson Davis Franklin Dunklin Tipton 

Greene Ballard La Salle Grenada Howell Weakley

Independence Caldwell Lincoln Hinds Iron

Izard Calloway Livingston Holmes Madison

Jackson Carlisle Madison Humphreys Mississippi 
 

13

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017 

Non-Distressed List as of September 30, 2017 

Alabama (0) 

All counties in Alabama are designated as distressed. 

Arkansas (3) 

Arkansas 

Pulaski 

Union 

Illinois (2) 

Hamilton 

White 

Kentucky (1) 

McCracken 

Louisiana (8) 

Ascension 

Cameron 

East Baton Rouge 

Jefferson 

Lafourche 

Plaquemines 

St. Charles 

West Baton Rouge 

Mississippi (2) 

Madison 

Rankin 

Missouri (1) 

Cape Girardeau 

Tennessee (1) 

Fayette
 

14

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017 

Organizational Structure of the Delta Regional Authority 

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

the Federal member, Peter D. Kinder, who was appointed by President Trump as the Alternate 

Federal Co-Chairman in August 2017. The Governors annually appoint a States' Co-Chairman, 

and in FY 2017, Governor Kay Ivey of Alabama was elected to serve as the eighth States' CoChairman. 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 where 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 Alternate Federal Co-Chairman maintains an office within the DRA office and at the end of 

FY 2017 was the only full-time federal employee. Additionally, the DRA office employs seventeen 

non-federal employees who carry out the day-to-day operations within the following arenas: 

Finance and Administration; Economic and Community Development; Federal Affairs; and Public 

Engagement and Communication. The DRA organizational chart is as follows:
 

15

Delta Regional Authority 

Staff Organizational Chart 
 

16

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

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 assist the Authority with compliance with many federalmandated requirements. State administrative funds, along with other funds, are held by banks 

located in the DRA Region and are accounted for by the Director of Finance and Administration. 

 

DRA completed its 15th 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, 2017, as compared to the prior year: 

• Total assets increased $8,762,538 or 21.9% in 2017 compared to an increase of 

$10,839,814 or 37.1% in 2016; 

• Total liabilities decreased ($451,387) or 17.9% in 2017 compared to an increase of 

$36,342 or 1.5% in 2016; 

• Total program costs increased $1,037,822 or 5.2% in 2017 compared to an increase of 

$2,500,159, or 14.3% in 2016; 

• Financing sources of operations increased $1,053,215 or 5.3% in 2017 compared to an 

increase of $2,587,969 or 14.8% in 2016; and 

• Net position increased $9,213,925 or 24.6% in 2017 compared to an increase of 

$10,803,072 or 40.4% in 2016. 

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. 
 

17

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Balance Sheets – 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). 

2015 2016 2017

Total Assets $29,213,923 $40,053,337 $48,815,875 $10,839,414 37.1% $8,762,538 21.9%

Total Liabilities 2,522,887 2,486,545 2,071,500 36,342 1.5% (451,387) -17.9%

Net Position

Unexpended appropriations/

 state funds 26,765,083 37,556,986 46,744,349 10,791,903 40.3% 9,187,363 24.5%

Cumulative results of operations (37,705) (26,536) 26 11,169 129.6% 26,562 100.1%

Total Net Position 26,727,378 37,530,450 46,744,375 10,803,072 40.4% 9,213,925 24.6%

Total Liabilities and Net Position $ 40,053,337 29,213,923 $ 48,815,875 $ 10,839,414 $ 37.1% 8,762,538 $ 21.9%

2017 over 

(under) 2016

2017% over 

(under) 2016

2016 over 

(under) 2015

2016% 

over 

(under) 

2015

Total assets increased $8,762,538 or 21.9% in FY 2017 compared to FY 2016 and increased 

$10,839,414 or 37.1% in FY 2016 compared to FY 2015. The FY 2017 increase is largely 

attributable to federal appropriations for economic development purposes, while the FY 2016 

increase is attributable to federal appropriations increasing while funding for older projects 

continued to be paid out year over year. 

Total liabilities decreased ($451,387) or (17.9%) in FY 2017 compared to an increase of $36,342 

in FY 2016 or 1.5% compared to FY 2015, due to an increase in payment requests for RCAP 

projects near year-end compared to the requests received in the prior year. 

Net position increased $9,213,925 or 24.6% in FY 2017 compared to FY 2016. The increase in net 

position is directly attributable to an increase in financing sources. Net position increased 

$10,803,072 or 40.4% in FY 2016 when compared to FY 2015. This increase in net position was 

directly attributable to an increase in financing sources. 

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 (non-production 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. 
 

18

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Program Costs 2015 2016 2017

Intergov'mntal gross costs 259,420 $ 237,092 $ 192,990 $ (22,328) $ -8.6% (44,102) $ -18.6%

Net costs with the public 17,245,679 19,768,166 20,850,090 2,522,487 14.6% 1,081,924 5.9%

Total Net Program Costs 17,505,099 20,005,258 21,043,080 2,500,159 14.3% 1,037,822 5.2%

Net cost of operations 17,505,099 $ 20,005,258 $ 21,043,080 $ 2,500,159 $ 14.3% 1,037,822 $ 5.2%

Delta Regional Authority

Condensed Statement of Net Costs

For the year ended September 30,

2016 over 

(under) 2015

2016 % 

over 

(under) 

2015

2017 over 

(under) 

2016

2017 % 

over 

(under) 

2016

Total program costs increased $1,037,822 or 5.2% in FY 2017 compared to an increase of 

$2,500,159 in FY 2016. The increase is attributable to an increase in RCAP project disbursements. 

Funding requests received from RCAP grantees were received later for this fiscal year than the 

timing for requests received in the prior year.

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. 

Cum'tve results 

of Ops

Unexp'd Appro'tns/ 

Funds

Cum'tve results 

of Ops

Unexp'd Appro'tns/ 

Funds

Cum'tve results 

of Ops

Unexp'd Appro'tns/ 

Funds

$% $ % $ % $ %

Beginning balance 38,936 $ 27,610,036 $ (37,705) $ 26,765,083 $ (26,536) $ 37,556,986 $ (76,641) $ -197% (844,953) $ -3% 11,169 $ -30% 10,791,903 $ 40.3%

Bud'try fin'cing source/(uses) 13,095,424 (1,095,424) 14,443,527 10,556,473 15,936,221 9,063,779 1,348,103 10.3% 11,651,897 106.4% 1,492,694 10.3% (1,492,694) -14.1%

 -

Other fin'cing source/(use) 4,333,034 250,471 5,572,900 235,430 5,133,421 123,584 1,239,866 28.6% (15,041) -6% (439,479) -7.9% (111,846) -47.5%

 -

Total fin'cing source/(uses) 17,428,458 (844,953) 20,016,427 10,791,903 21,069,642 9,187,363 2,587,969 14.8% 11,636,856 137.7% 1,053,215 5.3% -14.9% (1,604,540)

Net cost of operations 17,505,099 - 20,005,258 - 21,043,080 - 2,500,159 14.3% 137.7% 1,037,822 5.2% - 

Net change (76,641) (844,953) 11,169 10,791,903 26,562 9,187,363 87,810 114.6% 11,636,856 137.7% 15,393 137.8% -14.9% (1,604,540)

Ending balance (37,705) $ 26,765,083 $ (26,536) $ 37,556,986 $ 26 $ 46,744,349 $ 11,169 $ 29.6% 10,791,903 $ 40.3% 26,562 $ -100.1% 9,187,363 $ 24.5%

Cum'tve results of Ops Unexp'd Appro'tns/Funds Cum'tve results of Ops Unexp'd Appro'tns/Funds

Delta Regional Authority

Condensed Statements of Changes in Net Positions

For the year ended September 30,

2015 2016 2017 2016 over/(under) 2015 2017 over/(under) 2016

Financing sources of operations increased $1,053,215 or 5.3% in FY 2017 compared to FY 2016. 

The increase in financing sources is related to an increase in disbursements of RCAP funds and an 

increase of SEDAP funds expended for projects during the current year. Financing sources of 

operations increased $2,587,969 or 14.8% in FY 2016 when compared to FY 2015. The increase 

in financing sources was related to an increase in disbursements of RCAP funds and an increase of 

SEDAP funds expended for projects during the current year. 

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. 
 

19

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

2015 2016 2017 $ % $ %

Total Resources (Budgetary &

Non-Budgetary Resources) 17,700,215 $ 33,201,413 $ 33,446,330 $ 15,501,198 $ 87.6% 244,917 $ 0.7%

Total Status of Budgetary Resources 13,393,505 27,656,769 28,333,736 14,263,264 106.5% 676,967 2.4%

Total Unpaid Obligated Balance, Net 27,817,846 37,095,635 47,499,884 9,277,789 33.4% 10,404,249 28.0%

End of Year

Net Outlays 12,695,042 $ 14,071,390 $ 16,061,792 $ 1,376,348 $ 10.8% 1,990,402 14.1%

2016 over/(under) 2015

Delta Regional Authority

Condensed Statement of Resources

(Budgetary and Non-Budgetary)

For the year ended September 30,

2017 over/(under) 2016

The declining trend in Budgetary Resources abated in FY 2016 as DRA experienced decreases 

since FY 2012, which were attributable to increases in administrative and grant expenses, thereby 

reducing available resources and increasing obligation activity to re-appropriate and better utilize 

available funding from direct federal, pass-through federal and state sources. 

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. The financial statements should be read with 

the realization that these are for a component unit of the U.S. Government, a sovereign entity. 

Audit Opinion Unmodified

Restatement No

Beginning Ending

Material Weakness(es) Balance New Resolved Consolidated Balance

None noted. 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

Delta Regional Authority

Summary of Financial Statement Audit

As of September 30, 2017

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. 
 

20

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

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, 2015 had not been closed out. Delays in grant and cooperative 

agreement closeout, and challenges to be address pursuant to the GONE Act follow the table below. 

2-3 >3-5 >5 

Category Years Years Years

Number of Grants/Cooperative 

Agreements with Zero Balances 2 11,000 $ 0 - $ 1 144,500 $ 

Number of Grants/Cooperative 

Agreements with Undisbursed

Balances 47 945,240 85 3,038,656 37 1,069,887 

Totals 49 956,240 $ 85 3,038,656 $ 38 1,214,387 $ 

Delta Regional Authority

Summary of Grants Oversight & New Efficiency (GONE) Act

As of September 30, 2017

Challenges leading to 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. Another challenge identified has been the various ways DRA has obligated 

funds over the course of 3 administrations. First administration obligated with a signed grant 

agreement; 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 to address these challenges: First and foremost, DRA will address 

the staffing situation to divide administrative tasks proportionally. There are still a great number 

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

underutilized funding. Secondly, DRA will be looking to purchase an accounting system which 

will accommodate financial accounting for both DRA administrative costs and grant funding. 

Next, DRA will have to better train our Local Development Districts to identify earlier, projects 

with the potential to close out early and how to notify DRA to start that process sooner. Likewise, 

DRA will need to further educate our board members about why certain projects would be too risky 

to approve and refocus their attention on projects that are capable of moving faster. Lastly, I believe 

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. 
 

21

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Statement of Assurance

Beginning Ending

Balance New Resolved Consolidated Reassessed Balance

None noted.

Total Material Weaknesses 0 0 0 0 0 0

Statement of Assurance

Beginning Ending

Balance New Resolved Consolidated Reassessed Balance

None noted. 0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

Statement of Assurance

requirements.

Beginning Ending

Balance New Resolved Consolidated Reassessed Balance

None noted. 0 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0 0

1. Federal Financial Mangement 

 Systems Requirements

2. Applicable Federal

 Accounting Standards

3. USSGL at Transaction Level

Effectiveness of Internal Control over Financial Reporting (FMFIAs2)

Unmodified

Material Weakness(es)

Effectiveness of Internal Control over Operations (FMFIAs2)

Compliance with Federal Financial Management System Requirements (FMFIAs4)

Federal Systems comply with financial management system

Non-Compliance

Compliance with Section 803(a) of the Federal Financial Management Improvement Act(FMFIA)

Unmodified

Material Weakness(es)

No lack of compliance noted. No lack of compliance noted.

Agency Auditor

No lack of compliance noted. No lack of compliance noted.

No lack of compliance noted. No lack of compliance noted.
 

22

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Fraud Reduction Efforts 

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: 

1. Financial and administrative controls established pursuant to the act, 

2. 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, 

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

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

4. 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 & 

ethical values.

Define 

objectives & 

risk 

tolerances.

Designs 

control 

activities.

Uses relevant, 

quality information.

Performs 

ongoing 

monitoring 

activities.

Exercises 

oversight 

responsibilities.

Identifies, 

analzes, & 

responds to 

risk.

Selects and 

develops 

general 

system 

controls.

Communicates 

internally.

Evaluates 

issues and 

remediates 

deficiencies.

Establishes 

structure, 

authority, & 

responsibility.

Assess fraud 

risk.

Deploys & 

implements 

control 

activities.

Communicates 

externally.

Demonstrates 

commitment to 

competence.

Identifies 

analyzes & 

respond to 

change.

Enforces 

accountability.

Delta Regional Authority

Framework of Internal Control

For the year ended September 30, 2017
 

23

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

Fraud Reduction Efforts (continued) 

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. For FY 2017 government-issued travel card 

was 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: 

• Reduce employee-held travel cards to $3,000, 

• A government credit card SOP is published defining the roles and rules of the program. The 

handbook is reviewed and updated annually, as needed. 

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

program: 

• The Accounting Supervisor review all purchase card holders’ statements and 

supporting receipts on a monthly basis, 

• The Accounting Supervisor reviews the card holders’ quarterly history report 

obtained from the servicing bank to review purchases made by the card holder, 

• The Accounting Supervisor writes a quarterly report summarizing purchase card 

activity, and 

• The Director of Finance & Administration and Accounting Supervisor review the 

quarterly report and recommend the Chief, Monitoring/Compliance investigate 

those purchases deemed suspect. 

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, 

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

through fraud, 

• Grant contracts/MOUs over $100,000. 

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

• Prevent - establish an independent audit committee consisting of 1-2 board 

members, 

• 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. 

DRAs’ senior management believes that this policy sends a clear message that senior management 

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

24

MANAGEMENT'S DISCUSSION AND ANALYSIS 2017

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, 

2017 and 2016, 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, #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/
 

25

SECTION 2 - PERFORMANCE REPORT 
 

26

PERFORMANCE REPORT 2017

INTRODUCTION 

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 policy efforts: 

Project Development and Management 

• Local Development Districts (LDD) Training/Administration 

• Regional Economic and Community Development Officers (RDO) 

Policy and Research 

• Delta Research Consortium (DRC) 

• Today's Delta 3.0 

Programs and Initiatives 

• Reimagining the Delta Workforce 

o Jobs for America's Graduates 

• Small Business and Entrepreneurship Initiative (SB&E) 

o Delta Entrepreneurship Network (DEN) 

o HBCU-Entrepreneurial Ecosystem Initiative (HBCU-EEI) 

• Supporting Delta Leadership 

o Delta Leadership Institute (DLI) 

■ Delta Leadership Network (DLN) 

• Promoting Tourism and the Cultural Economy 

o Delta Creative Placemaking Initiative (DCPI) 

• Promoting a Healthy Delta 

o Delta Doctors 

o Innovative Readiness Training (IRT) 

• Cultivating Innovative Partnerships 

o DeltaCorps: A Program of AmeriCorps and the Delta Regional Authority 

o Local Foods, Local Places (LFLP) 
 

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PERFORMANCE REPORT 2017 

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. 

In December 2016, nearly 70 designated district staff from the 44 LDDs within the DRA footprint 

attended the annual LDD training academy in Memphis, TN hosted by DRA. Participants received 

certification as DRA project coordinators. These actions will help ensure that DRA stakeholders 

are receiving the most up to date technical assistance from their LDD when applying for DRA 

funding. 

Regional Economic and Community Development Officers (RDO) 

The Regional Economic and Community Development Officers (RDOs) serve as the nexus 

between DRA and local, state, and federal stakeholders. RDOs are based throughout the Delta 

region and directly support communities by helping to identify and fill capacity needs in support 

of local and regional development efforts. RDOs developed the required professional relationships, 

subject matter expertise, and geographic and cultural knowledge needed to connect stakeholders 

and leverage resources to maximize program impact. RDOs worked with communities and DRA 

headquarters staff, Local Development Districts (LDDs), and community stakeholders across the 

DRA footprint to facilitate project development, coordinate outreach and information sharing, 

assist with funding acquisition, and develop place-based community strategies. Further, these 

community outreach activities directly supported and aligned with the Delta Regional 

Development Plan III, the DRA's long term guiding strategic planning document, by facilitating 

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

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PERFORMANCE REPORT 2017 

POLICY AND RESEARCH 

Delta Research Consortium (DRC) 

In recognition of the need for better and more targeted research in the economic, cultural, and 

social challenges, successes, and opportunities of Delta communities, DRA partnered with 

Arkansas State University (ASU) to develop a consortium of four-year colleges and universities 

throughout DRA's eight states to focus on research endeavors in the Delta region. The consortium 

utilizes the shared capacity of institutions for research and innovation across sectors to elevate 

funding for Delta-focused research that can inform policies and economic development efforts 

throughout DRA's service area. 

DRA co-hosted the kickoff leadership summit for the DRC in April 2015, at which there were 50 

representatives from 23 institutions and a number of economic development organizations 

represented as well. The summit was successful in building buy-in among the institutions present 

and motivating the research leadership to propose taking the next steps in creating a platform 

structure for the DRC to their institutional leadership. The consortium then hosted a Presidents 

Roundtable in October 2015 that secured buy-in from 20 institutions and helped outline next steps 

for the consortium. Those next steps included each institution signing a Memorandum of 

Understanding (MOU) and DRA hosting a policy summit for the DRC institutions as well as 

economic developers in February 2017. 

Though there have been no final determinations on the signing of MOUs, DRA hosted the 2017 

Policy Convening for the DRC in February 2017, which included representatives from 20 

institutions across the Delta region except for the state of Illinois. The convening focused on three 

key topics - telemedicine, innovation in natural resources, and infrastructure - and included 

facilitated discussion about how the DRC platform can be most valuable to participating colleges 

and universities moving forward. 

Today's Delta 3.0

In order to plan and implement impactful economic and community development strategies for 

the future, DRA recognizes that community leaders must understand their current reality. Today's 

Delta is an online resource, with periodic print versions, showing county-level data and comparing 

it to state, regional, and national indicators. DRA is in the fourth phase of the Today's Delta 

research database and report originally completed and published in 2012 and updated in 2015 and 

2016. The Today's Delta project is in the final stages of an update to the database with 2016 data 

and expansion to more than 40 indicators of economic, health, educational, demographic, and 

poverty realities in Delta communities. The project is also undergoing a full update to the online 

platform to provide multi-level dashboards and analysis of the region's data. These statistics will 

be available online on DRA's website at www.dra.gov/todays-delta in fall of 2017.
 

29

PERFORMANCE REPORT 2017 

PROGRAMS AND INITIATIVES 

Reimagining the Delta Workforce 

Jobs for America's Graduates (JAG) 

Jobs for America's Graduates, Inc. is the nation's largest school-to-work system for at-risk and 

disadvantaged youth. JAG focuses on keeping students in school through graduation and equipping 

them with the academic and technical skills necessary to improve employability, which enhances 

DRA's commitment to invest in strategies that boost employment and educational success. 

DRA's investments into JAG have been delivered in five phases over the past several years, 

expanding JAG into 58 schools and reaching more than 5,000 students. Through its partnership 

with JAG, DRA has invested a total of $1,250,000 for region-wide efforts, and an additional 

$500,000 in Louisiana through its States' Economic Development Assistance Program (SEDAP), 

bringing DRA's total investment to $1,750,000 over the past 5 years. 

DRA-JAG Partnership: Phase V 

Phase V of the partnership focused on boosting employment and educational outcomes for highrisk youth. The investment specifically included: 

• A total of $250,000 to support the implementation of JAG into 12 additional schools in 

five of the eight states in the DRA service area. This investment increased the number of 

youth served by an additional 400 students. 

• In addition to DRA funding, Entergy invested $250,000 into JAG to support the 

implementation of JAG programming in schools across Arkansas, Louisiana and 

Mississippi. 

Small Business and Entrepreneurship Initiative (SB&E) 

Delta Entrepreneurship Network (DEN) 

Launched in January 2015, the Delta Entrepreneurship Network (DEN) aims to identify, nurture, 

and grow entrepreneurs and entrepreneurship support organizations (ESO) through a competitive 

fellowship program. As part of a three-year partnership with The Idea Village in New Orleans, 

Louisiana, selected entrepreneurs and ESOs participate in a cohort that receives intensive technical 

assistance and the opportunity to engage in New Orleans Entrepreneur Week (NOEW). 

Entrepreneurs are selected through a competitive pitch process known as the Delta Challenge. 

These three-minute pitch competitions are held throughout the region, with alumni and current 

ESOs hosting events. Winners are selected from a panel of judges based on their applications that 

include information on the company's staff, business plan, marketing plan, scalability, and revenue 

model. In addition to applications, a panel of judges determines winners based on their company 

pitches. 

In addition to the entrepreneurs' selection process, ESOs are selected by an independent panel of 

judges. Applications take into account the structure of the organization, revenue model, current services for 

entrepreneurs, intended services for entrepreneurs, and a short answer on the interest 

of participating in the DEN. 
 

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PERFORMANCE REPORT 2017 

The Delta Entrepreneurship Network 2016-2017 season launched in September 2016 with Delta 

Challenge pitch competitions. Three technical assistance sessions took place in December 2016, 

January 2017, and February 2017. 

The Delta Challenge pitch competitions and technical assistance workshops took place in the 

following locations: 

At each of these locations, at least three fellows were chosen to participate in the DEN 2016-2017 

cohort. 

In March 2017, DRA brought DEN Fellows, ESOs, and HBCU student entrepreneurs to New 

Orleans Entrepreneur Week to provide them with the opportunity to attract additional capital and 

acquire the technical expertise to help grow their businesses and organizations. NOEW 2017 

marked the third and final year of DRA partnership with The Idea Village in New Orleans, and 

thus, a close-out of the Delta Entrepreneurship Network and the HBCU-Entrepreneurial 

Ecosystem Initiative. 

HBCU-Entrepreneurial Ecosystem Initiative (HBCU-EEI) 

Launched in 2016, the HBCU Entrepreneurial Ecosystem Initiative (HBCU-EEI) was created to 

support ongoing efforts on historically black college and university campuses targeting minority 

and women-owned businesses. The initiative cataloged current resources available to young 

entrepreneurs, strengthened existing programs, encouraged collaboration between partner 

institutions, and gave student entrepreneurs the tools they need to succeed. 

The following schools were selected to participate through a competitive application process: 

• Grambling State University | Grambling, LA 

• Mississippi Valley State University | Itta Bena, MS 

• Philander Smith College | Little Rock, AR 

• Rust College | Holly Springs, MS 

• Southern University | Baton Rouge, LA 

• University of Arkansas at Pine Bluff | Pine Bluff, AR 

The participating schools received up to $24,000 in support services to host a two-day technical 

assistance and rapid acceleration workshop to educate aspiring and advanced student entrepreneurs 

about the skills and resources needed to launch and scale their businesses. 

Upon completion of the two-day session, student entrepreneurs pitched their ideas for a chance to 

represent their schools and the Delta region at Founders Weekend on the Allen Entrepreneurial 

Institute (AEI) campus in Lithonia, Georgia. Winning entrepreneurs on each campus received 

pitch practice, mentorship from successful minority entrepreneurs, business model development, 

and other technical assistance leading up to the Founders Weekend activities. 

Date Location Venue/Event Type 

September 15, 2016 North Little Rock, AR Arkansas Regional Innovation Hub

September 28, 2016 Jackson, TN Lane College

September 29, 2016 Oxford, MS University of Mississippi 

October 11, 2016 Tuskegee, AL University of West Alabama 

October 18, 2016 Ruston, LA Louisiana Tech University

November 18, 2016 Cape Girardeau, MO Codefi

December 2-4, 2016 Little Rock, AR Entrepreneur Technical Assistance

January 20-22, 2017 Memphis, TN ESO Technical Assistance 

February 3-5, 2017 Jackson, MS Entrepreneur Technical Assistance
 

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PERFORMANCE REPORT 2017 

Supporting Delta Leadership 

Delta Leadership Institute 

Founded in 2005, the Delta Leadership Institute (DLI) supports a corps of local community leaders 

who participate in a 10-month-long Executive Academy program and continue to communicate 

and collaborate after the Academy's completion through the DLI's alumni group, the Delta 

Leadership Network (DLN), in order to foster and strengthen cross-sector and regional 

collaboration, idea sharing, and networking across the DRA footprint. Over the course of the 

Executive Academy academic year, 50 participants attend distinct sessions that take them to each 

of the DRA's eight states and engage in skills training, case study discussion, and on-the-ground 

field studies of priority issue areas including transportation and infrastructure, workforce training 

and education, entrepreneurship and disaster resilience for small businesses, public health, culture 

and tourism, and policy and governance. With nearly 500 alumni, the DLN commits time, talent, 

service, and often financial resources to initiatives like Emergency Preparedness and Innovative 

Readiness Training missions and has become a strong voice for the region and DRA. 

The Executive Academy held seven sessions over the course of 2016-2017 fiscal year that focused 

on the above priority policy areas. The consultancy protocol implemented in 2015-16 was 

expanded to serve a larger role in workshopping grassroots challenges that fellows are currently 

facing in their communities. 

Data collected following each meeting ensures that the training and experiences are tailored to the 

needs of the fellows. The below table shows the overall mean of responses for 2016-17 sessions. 

Mean Score of 2016-17 Executive Academy sessions by Respondents, 1-5 scale

Executive Academy Overall

St. Louis - Orientation 4.38

Memphis - Session II 4.17

New Orleans - Session III 3.92

Little Rock - Session IV 4.31

Atmore, AL - Session V 4.26

Washington, DC - Session VI 4.18

Lake Barkley, KY - Graduation 4.41
 

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PERFORMANCE REPORT 2017 

In the coming thirteenth year of the Delta Leadership Institute Executive Academy (2017-18), a 

new certification program, accredited by The University of Alabama and implemented by the 

three-University partnership, will improve the Institute's ability to track and measure the 

quantifiable impact of the program in the daily lives of those participating while also providing 

fellows with a tangible testament to the skills the gain from the Executive Academy experience. 

Through increased marketing efforts, DLI staff recruited a class of 52 fellows for the coming year 

from a pool of 125 applicants (an increase in applications of more than 40 percent from past years). 

Arguably one of the most diverse classes in the program's history, the 2017-18 class represents 

rural and urban communities, includes four veterans, and works in economic development, for 

local development districts, local, state, and federal agencies, private sector, non-profit, 

educational, and cultural organizations. Eleven of the new fellows come from communities not yet 

represented in DLI. 

Delta Leadership Network 

In FY 17, the Delta Leadership Network elected a new Regional Advisory Council (RAC) 

consisting of a diverse group of 16 representing each state and a chair that has served the past two 

years (to support the organization during DRA's administrative transition). The RAC held an 

orientation session in Memphis in May 2017 to define its goals for the coming year and discuss 

the long-time future of the alumni organization, nearly 500 strong. In partnership with DLI 

leadership and staff and guided by the strategy set forth by the Regional Advisory Council, the 

chair and RAC members are leading the planning and implementation of local alumni engagement 

initiatives and events on the state level that support the continuing education, network, and 

information sharing amongst DLN membership. 

One of the top priorities covered during their strategic planning meeting was increased engagement 

of the membership including a focus on re-engaging the older classes in DLN activities. The DLI 

staff redesigned the monthly newsletter to be more user-friendly and attractive; while there is 

generally strong engagement digitally with 40-60 percent of newsletters and state-specific emails 

being opened (a relatively high open rate for mass emails), there is still the need to increase inperson participation in some states. 

In January 2017, the annual conference had an attendance of 150-170, including alumni, DLI 

fellows in the current Executive Academy, DRA staff and board; speakers and guests, which was 

consistantl with numbers seen for the 2016 conference. The conference focused on lessons to learn 

from Louisiana and New Orleans ten years after Hurricanes Katrina and Rita hit the state and 

strategies for building resilience against future disasters across the region. 

In August 2017, each state hosted a state meeting that gathered DLN members from that state to 

network and learn about a specific economic development topic from a guest speaker. Speakers 

ranged from the Louisiana secretary of transportation and the Governor of Alabama to an 

entrepreneur/chocolatier, the director of a civil rights museum in Mississippi, and one of the 

congressman who worked on the original Delta Commission. These meetings gathered more than 

150 DLN members.

In FY18, DLN will continue its commitment to sustain local and regional growth through strong 

leadership, focusing its efforts and network on increasing networking opportunities and 

engagement among the membership and improving the continuing education offerings through the Network 

beyond the Executive Academy. 
 

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PERFORMANCE REPORT 2017 

Promoting Tourism and the Cultural Economy 

Delta Creative Placemaking Initiative (DCPI) 

In partnership with the National Endowment for the Arts (NEA) and the Rural Policy Research 

Institute (RUPRI), the Delta Regional Authority launched the Delta Creative Placemaking 

Initiative (DCPI) in January 2017. The purpose of the DCPI is to encourage municipalities, 

counties and parishes, local development districts, and other economic development entities to 

engage more deeply with the region's arts and cultural sectors. Through the formation of cross - 

sector partnerships, these entities will enhance their collective impact in supporting the quality of 

place and quality of life in their communities by strategically integrating the arts and culture into 

their existing economic and community development strategies and activities. 

DRA developed a three-phase approach for the Delta Creative Placemaking Initiative as follows: 

• PHASE I: Creative Placemaking Train-the-Trainer 

In February 2017, DRA hosted staff for a Creative Placemaking "Train-the-Trainer" at the 

Agency's Regional Headquarters located in Clarksdale, Mississippi. Collaborative support for 

this training was provided by senior staff from The National Endowment for the Arts, ArtPlace 

America, Springboard for the Arts, Art of the Rural, The Rural Policy Research Institute, the 

Alabama State Council on the Arts, The Mississippi Arts Commission, and the Alliance for 

California Traditional Arts, among others. This training was designed to educate and inform 

DRA staff of the creative placemaking approach within comprehensive economic and 

community development strategies. 

• PHASE II: Creative Placemaking Regional Workshops 

The second phase implemented a series of workshops, held through the Mississippi River Delta 

region and Alabama Black Belt. The DRA Creative Placemaking Regional Workshops took 

place June-July 2017 in the following locations: 

June 26-27 | Paducah, KY July 10-11 | Vicksburg, MS 

June 29-30 | Wilson, AR July 13-14 | Tuskegee, AL 

July 6-7 | Greenville, MS July 17-18 | Arnaudville, LA 

These workshops were designed to inform local elected officials, local development districts, 

economic development staff and leadership, and other non-arts sector decision-makers about the creative 

placemaking approach and the Delta Creative Placemaking Initiative. They were 

also intended to provide an invaluable training opportunity for municipal, county/parish, and 

economic development organization teams planning to submit DCPI grant proposals. As 

indicated in the NOFA, partnerships submitting grant applications under the Delta Creative 

Placemaking Initiative were required to have principals attend one of the Regional Workshops. 

During the 6 Regional Workshops, DRA trained nearly 380 local elected officials, economic 

development practitioners, and community development leaders. 
 

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PERFORMANCE REPORT 2017 

• PHASE III: Delta Creative Placemaking Investment Program 

The third phase implements the Delta Creative Placemaking Investment Program providing 

$309,000 of total funding to chosen applicants. Applications were submitted by August 21, 

2017 and final awards were announced on October 11. 

The 2017 Delta Creative Placemaking Investment program provided funding for the following 

projects: 

1. City of Atmore, AL: DRA Investment: $15,000. Total Investment: $35,000. In partnership 

with the Pride of Atmore, the city will develop and implement a master plan for The Strand 

revitalization project to achieve financial stability, develop new programming and 

encourage community engagement. 

2. City of Eufaula, AL: DRA Investment: $15,000. Total Investment: $52,000. In 

partnership with the Eufaula Heritage Association, the city will rehabilitate the Martin 

Theatre in downtown Eufaula to construct an open-air, multi-purpose venue to host arts 

and cultural events. 

3. City of Cherokee Village, AR: DRA Investment: $20,000. Total Investment: $57,000. In 

partnership with the Cherokee Village Historical Society, the city will construct a business 

incubator and community space for the Spring River Innovation Hub to support the arts, 

entrepreneurialism and community development. 

4. City of Marvell, AR: DRA Investment: $20,000. Total Investment: $80,000. In 

partnership with the Marvell Civic Club, the city will restore the childhood home of Levon 

Helm, an American musician and actor who achieved fame as the drummer and one of the 

vocalists for The Band. Once the home is restored, it will be open to the public to celebrate 

the rich musical legacy of Marvell and the surrounding region. 

5. City of Metropolis, IL: DRA Investment: $22,000. Total Investment: $60,000. In 

partnership with Save the Massac, the city will renovate the Massac Theatre to become a 

multi-use facility for the community, giving it new purpose while preserving its historical 

and cultural significance to the area. 

6. Village of Equality, IL: DRA Investment: $20,000. Total Investment: $105,000. In 

partnership with the Equality Federated Tuesday Club, the city will rehabilitate a vacant building located on 

main street to establish a regional cultural arts center that promotes 

tourism and business development opportunities for entrepreneurs, small business owners, 

and local artists. 

7. City of Paducah, KY: DRA Investment: $20,000. Total Investment: $268,943. In 

partnership with the Market House Theatre, the city will renovate the unoccupied Arcade 

Theatre building in historic downtown Paducah to use it as a scene shop for building sets 

and props for the Market House Theatre performances. 

8. City of Henderson, KY: DRA Investment: $15,000. Total Investment: $30,000. In partnership with 

the Green River Area Development District, the city will engage the fourcounty region to conduct asset mapping of cultural entrepreneurs and identify development 

opportunities in each county to generate population growth and stimulate community 

development efforts. 
 

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PERFORMANCE REPORT 2017 

9. Acadia Parish Police Jury, LA: DRA Investment: $15,000. Total Investment: $52,990. 

In partnership with the Acadia Arts Council, the parish will conduct an assessment of 

current economic and cultural activity in the area and develop a plan to support new ways 

to grow the area's population and expand economic opportunities for the region's 

residents. 

10. City of Winnsboro, LA: DRA Investment: $20,000. Total Investment: $111,090. In 

partnership with The Delta Initiative, the city will redevelop three acres of land adjacent to 

the parish high school and neighboring houses to construct a community greenhouse and 

garden, engaging local youth in the art of food production and preparation, soft skills and 

mentoring, and job training. 

11. City of West Monroe, LA: DRA Investment: $20,000. Total Investment: $69,000. In 

partnership with the Downtown Arts Alliance, the city will focus on a public art project to 

reinvigorate the arts and cultural sectors within the community, while also implementing 

programs to encourage long-term sustainability and community engagement. 

12. City of Greenwood, MS: DRA Investment: $20,000. Total Investment: $50,000. In 

partnership with Main Street Greenwood, the city will leverage local resources to combat 

blight by redefining concepts of waste and empowering underserved residents through job 

training, apprenticeships and entrepreneurial development. 

13. City of Duck Hill, MS: DRA Investment: $25,000. Total Investment: $55,000. In 

partnership with the Action Communication and Education Reform, the city will establish 

cultural opportunities for the long-term growth of the community and work to preserve 

downtown historic properties. 

14. City of Caruthersville, MO: DRA Investment: $25,000. Total Investment: $53,440. In 

partnership with the Caruthersville Area Arts Council, the city will renovate the Exchange 

Building in the downtown corridor to establish a cultural arts center and business incubator 

for Caruthersville and the surrounding region. 

15. City of Brownsville, TN: DRA Investment: $15,000. Total Investment: $35,000. In 

partnership with the Brownsville Arts Council, the city will highlight its most popular 

tourism attraction called "The Mindfield" through the design of wayfinding signage created 

by local artists and welding students. 

16. City of Martin, TN: DRA Investment: $22,000. Total Investment: $482,000. In 

partnership with the Northwest Tennessee Entrepreneur Center, the city will partner with 

artists to install a soundscape recreational area and complementary playground, design an 

"outdoor classroom," cultivate landscape design, and light the path that features an artistic 

entrance into the Brian Brown Gateway. 
 

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PERFORMANCE REPORT 2017 

Promoting a Healthy Delta 

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 January 2017, DRA has processed 71 J-1 Visa Waiver applications and has approved 69 

applicants to be placed in a medically underserved area within the 252 counties and parishes 

making up the DRA service area. In 2016, DRA processed 87 applications and approved 85 

applicants. 

Innovative Readiness Training (IRT) 

Through a partnership with the U.S. Department of Defense and the U.S. Military's reserve forces, 

the Delta Regional Authority's Innovative Readiness Training (IRT) program provides military 

medical personnel with in-field emergency response preparation while simultaneously providing 

quality healthcare services to communities throughout the Delta region. By utilizing their extensive 

resources, the military can meet some of the region's most urgent health and wellness needs. 

The DRA hosted three IRT programs in summer of 2017, bringing medical, dental, and optical 

care to Delta residents that are uninsured or underinsured and in need of quality healthcare at no 

cost to the patient. A list of events follows:

• Ozark Highlands: June 5-12 in Mountain Home, Yellville, and Marshall, Arkansas.

During 8 days of medical care, hundreds of servicemen and women from the U.S. 

Department of Defense served almost 3,700 patients in North Central Arkansas and 

Southern Missouri, performing over 5,100 procedures and fabricating over 1,300 pairs of 

glasses for a total value of $676,000 in services. 

• Louisiana Care: July 10-22 in Reserve, Napoleonville, and Amite, Louisiana. During 18 

days of medical care, hundreds of servicemen and women from the U.S. Department of 

Defense served almost 3,500 patients in Southeast Louisiana and Southwest Mississippi, 

performing nearly 12,400 procedures (including 2,100 tooth extractions) and fabricating 

almost 700 pairs of glasses for a total value of more than $1 million in services. 

• Operation Healthy Delta: September 13-21 in Charleston and Caruthersville, Missouri. 

During 9 days of medical care, hundreds of servicemen and women from the U.S. 

Department of Defense including the Missouri Air National Guard and Navy Reserves 

served over 4,500 patients in Southeast Missouri, Western Kentucky, and Western 

Tennessee, performing over 8,100 procedures (including 2,000 tooth extractions) and 

fabricating over 1,600 pairs of glasses for a total value of nearly $2 million in services. 
 

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PERFORMANCE REPORT 2017 

Overall, the three IRT medical missions held during the summer of 2017 provided 11,700 patients 

with services including 25,600 medical procedures, 4,100 tooth extractions, and 3,600 fabricated 

glasses for a grand total of over $3.7 million in value to these Delta communities. 

Cultivating Innovative Partnerships 

DeltaCorps 

DeltaCorps, a program of AmeriCorps and the Delta Regional Authority, helps address the 

economic and social needs of local communities in the eight states of the Mississippi River Delta 

region. DeltaCorps provides much needed "boots on the ground" as a tangible resource that 

communities, nonprofit organizations, public agencies, schools and universities can access to help 

build economic opportunities, access to healthy futures, and disaster response services, among 

many other things. The application process allows these organizations to apply directly to DRA 

with a project proposal for how DeltaCorps members will be utilized. Members earn a $12,530 

living allowance, receive health insurance, loan forbearance, and childcare assistance as well as a 

$5,775 education award upon successful completion of 1700 hours of service. 

During DRA's first Program Year (September 2016-September 2017), the agency awarded 67 

DeltaCorps members to 15 nonprofit organizations in Arkansas, Louisiana, Mississippi, Kentucky, 

Missouri, and Tennessee. 

The awarded organizations and their member allotments are listed below: 

1. SBP (formerly known as St. Bernard Project) utilized twenty-five DeltaCorps members to 

provide disaster recovery services to flood-impacted residents throughout the Baton Rouge 

area and continue long-term recovery operations in New Orleans.

2. Hispanic Community Services utilized two DeltaCorps members to serve the Hispanic 

populations of Jonesboro and Pocahontas, Arkansas. 

3. Project Homecoming, a nonprofit community development organization that focuses on

poverty-related and disaster-related housing and workforce development in Orleans Parish in 

Louisiana utilized five DeltaCorps members to support their affordable housing, workforce 

development, and disaster-relief efforts. 

4. The College Initiative hosted five DeltaCorps members to provide low-income high school 

students in Arkansas and Tennessee with financial literacy services for future college success 

and financial independence. 

5. The Delta Area Economic Opportunity Corporation of southeast Missouri hosted one 

DeltaCorps member to nurture and mentor ten Boy Scouts in Pemiscot County, developing the 

first Boy Scout troop in this area. 

6. United Way of Southeast Missouri utilized two members to tutor students in grades 2nd - 6th to 

increase reading by at least one grade level by the end of the year. 

7. The Jackson Zoo in Mississippi hosted a DeltaCorps member to implement, evaluate, and 

develop education programs that help economically disadvantaged students learn more about 

the zoo's exhibits and animals. 

8. Four Rivers Behavioral Health and the Purchase Area Health Coalition in western 

Kentucky hosted two DeltaCorps members to improve health, wellness, and economic issues 

in the region. 

9. Rural Community Alliance in Elaine and Eudora, Arkansas hosted three members to provide

after-school tutoring services and summer learning activities to nearly 200 children in both 

communities. 
 

38

PERFORMANCE REPORT 2017

10. The Arkansas Hunger Relief Alliance hosted five DeltaCorps members who focused on 38 

counties in the Arkansas Delta by expanding programs in Norfork and Little Rock, including 

the Arkansas No Kid Hungry Campaign, Cooking Matters nutrition education, hunger gardens, 

Summer and after-school meal programs, and volunteer coordination. 

11. Pfeifer Kiwanis Camp hosted three DeltaCorps members who enhanced the Alternative 

Classroom Experience with environmental and conservation activities for economically 

disadvantaged, at-risk students in Pulaski County, Arkansas. 

12. Artesian Schools hosted two DeltaCorps members to mentor 8th grade through high school 

students with the goal of increasing student attendance and homework completion rates in the 

Frayser-Raleigh community of Memphis, Tennessee. 

13. Bastion Community of Resilience hosted one member who facilitated active neighboring 

within the intentionally designed neighborhood for post-9/11 veterans and military families to 

produce healthy outcomes by connecting veterans to needed supports and services, hosting 

workshops, and leading classes. 

14. Second Harvest hosted two DeltaCorps members to enhance existing programming by 

targeting the root causes of hunger - income, education, and access to healthy foods -- in 

Orleans, Jefferson, St. Bernard, and Plaquemines Parishes in Louisiana. 

15. Rebuilding Together hosted five DeltaCorps members to help low income homeowners, the 

elderly, the disabled, military veterans, and single head of households live safely and securely 

in their homes. 

Overall, DeltaCorps members have recruited 3,550 episodic volunteers and 506 ongoing 

volunteers to assist with needs at their organizations and in their communities. 

Through Education service, members have served 57 Hispanic low income high school students 

to better prepare them for college, assisted with Spanish translation services with health-related 

needs for 37 individuals, trained/taught 394 students about environmental stewardship practices, 

and through this training, increased overall environmental stewardship knowledge in 301 students 

to date. Members have also mentored 23 ninth grade students and tutored 235 elementary students. 

Through member service in disaster recovery, 604 individuals have received necessary support in 

disaster services, and 93 individuals have been transitioned into safe housing. 16 elderly, low 

income, and/or disabled individuals have received home repairs that have allowed them to live in 

safe, stable housing. 

Through Veterans and Military Families service, 335 veterans and their families have received 

targeted assistance and wellness classes. 

Through Economic Opportunity service, 1,611 economically disadvantaged individuals received 

job training. 715 economically disadvantaged students received financial literacy workshops to 

better prepare them for college. 

Through Healthy Futures service, 296 individuals have received services to eliminate long term 

hunger. 
 

39

PERFORMANCE REPORT 2017 

Local Food, Local Places (LFLP) 

First announced in June 2014 during a White House Rural Council meeting in Washington, DC, 

the Local Foods, Local Places (LFLP) program aims to boost economic opportunities for local 

farmers and businesses, to improve access to healthy foods, and to revitalize downtowns and 

traditional neighborhoods by supporting farmers markets, food hubs, community gardens, and 

community kitchens and improving accessibility of these amenities. The program helps the 

awarded communities improve their livability by promoting economic development, preserving 

rural lands, and increasing access to locally grown food. 

Six federal partners jointly fund and support the LFLP program: the U.S. Department of 

Agriculture (USDA), the U.S. Environmental Protection Agency (EPA), the U.S. Department of 

Transportation (DOT), the Centers for Disease Control and Prevention (CDC), the Delta Regional 

Authority (DRA), and the Appalachian Regional Commission (ARC). Project plans among the 

communities receiving LFLP awards include goals to create local food networks, establish regional 

food innovation centers, and develop job training efforts around local food entrepreneurship.
 

40

SECTION 3 - FINANCIAL SECTION
Independent Auditor’s Report 

Federal and State Co-Chairs 

 and Members of the Board 

Delta Regional Authority 

Clarksdale, Mississippi 

Report on the Financial Statements 

We have audited the accompanying financial statements of Delta Regional Authority (the 

Authority) as of and for the years ended September 30, 2017 and 2016, and the related notes to 

the financial statements, which collectively comprise the Authority’s basic financial statements 

as listed in the table of contents. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these financial statements 

in accordance with accounting principles generally accepted in the United States of America; this 

includes 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 audits. We 

conducted our audits 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. 17-03, Audit Requirements for Federal Financial 

Statements. Those standards require that we plan and perform the audits to obtain reasonable 

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

An audit 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 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.
Federal and State Co-Chairs 

 and Members of the Board 

Delta Regional Authority 

Page 42 

 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness 

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

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinions. 

Opinions 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of Delta Regional Authority as of September 30, 2017 and 2016, and its net 

cost and the changes in its financial position and its resources (budgetary and non-budgetary) for 

the years then ended in accordance with accounting principles generally accepted in the United 

States of America. 

Other Matters 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America require that the 

management’s discussion and analysis listed in the table of contents be presented to supplement 

the basic financial statements. Such information, although not part of the basic financial 

statements, is required by the Governmental Accounting Standards Board, who considers it to be 

an essential part of financial reporting for placing the basic financial statements in an appropriate 

operational, economic or historical context. We have applied certain limited procedures to the 

required supplementary information in accordance with auditing standards generally accepted in 

the United States of America, which consisted of inquiries of management about the methods of 

preparing the information and comparing the information for consistency with management’s 

responses to our inquiries, the basic financial statements and other knowledge we obtained 

during our audits of the basic financial statements. We do not express an opinion or provide any 

assurance on the information because the limited procedures do not provide us with sufficient 

evidence to express an opinion or provide any assurance. 

Other Information 

Our audits were conducted for the purpose of forming an opinion on the basic financial 

statements as a whole. The information presented in Section 2 – Performance Section, the 

combining financial statements, schedule of expenditures and schedule of grants made, as listed 

in the table of contents, are presented for purposes of additional analysis and are not a required 
Federal and State Co-Chairs 

 and Members of the Board 

Delta Regional Authority 

Page 43 

 

part of the basic financial statements. Such information has not been subjected to the auditing 

procedures applied in the audits of the basic financial statements, and, accordingly, we do not 

express an opinion or provide any assurance on it. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards, we have also issued our report dated 

January 2, 2018, on our consideration of the Authority’s internal control over financial reporting 

and our tests of its compliance with certain provisions of laws, regulations, contracts and grant 

agreements and other matters. The purpose of that report is to describe the scope of our testing 

of internal control over financial reporting and compliance and the results of that testing, and not 

to provide an opinion on the internal control over financial reporting or on compliance. That 

report is an integral part of an audit performed in accordance with Government Auditing 

Standards in considering the Authority’s internal control over financial reporting and 

compliance. 

Jackson, Mississippi 

January 2, 2018
BASIC FINANCIAL STATEMENTS

44
2017 2016

ASSETS

Intragovernmental

Fund balance with Treasury 47,592,321 $ 38,119,613 $ 

Cash 807,869 1,591,266

Property and equipment, net 219,978 - 

Receivables 195,707 342,458 

TOTAL ASSETS 48,815,875 $ 40,053,337 $ 

LIABILITIES

Intragovernmental payable 246,634 $ 251,904 $ 

Accounts payable 17,730 446,849 

Grants and other payables 1,807,136 1,824,134 

TOTAL LIABILITIES 2,071,500 2,522,887

NET POSITION

Unexpended appropriations/state funds 46,744,349 37,556,986 

Cumulative results of operations 26 (26,536) 

TOTAL NET POSITION 46,744,375 37,530,450 

TOTAL LIABILITIES AND NET POSITION 48,815,875 $ 40,053,337 $ 

See Notes to Financial Statements

DELTA REGIONAL AUTHORITY

BALANCE SHEETS

SEPTEMBER 30, 2017 AND 2016

45
2017 2016

PROGRAM COSTS

Economic Development

Intragovernmental gross costs 192,990 $ 237,092 $ 

Less intragovernmental earned revenue - - 

Intragovernmental net costs 237,092 192,990

Gross costs with the public 20,850,090 19,768,166

Less earned revenues from the public - - 

Net costs with the public 20,850,090 19,768,166

TOTAL NET PROGRAM COSTS 21,043,080 20,005,258 

NET COST OF OPERATIONS 21,043,080 $ 20,005,258 $ 

See Notes to Financial Statements

YEARS ENDED SEPTEMBER 30, 2017 AND 2016

STATEMENTS OF NET COST

DELTA REGIONAL AUTHORITY

46
2017

Cumulative Unexpended Cumulative Unexpended

Results Appropriations/ Results Appropriations/

of Operations Funds of Operations Funds

NET POSITION, BEGINNING BALANCE (26,536) $ 37,556,986 $ (37,705) $ 26,765,083 $ 

BUDGETARY FINANCING SOURCES (USES)

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

Appropriations used 15,936,221 (15,936,221) 14,443,527 (14,443,527) 

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states and others - 1,688,680 - 1,790,730 

Cost of operations absorbed by RCAP - 3,552,768 - 3,989,345 

Imputed financing from costs absorbed by others 15,557 - 28,255 - 

Disbursements of RCAP funds 3,495,511 (3,495,511) 3,983,269 (3,983,269) 

Disbursements of funds provided by member states and others 1,62 (1,622,353) 2,353 1,561,376 (1,561,376) 

TOTAL FINANCING SOURCES (USES) 21,069,642 9,187,363 20,016,427 10,791,903 

NET COST OF OPERATIONS 21,043,080 - 20,005,258 - 

NET CHANGE 26,562 9,187,363 11,169 10,791,903 

NET POSITION, ENDING BALANCE 26 $ 46,744,349 $ (26,536) $ 37,556,986 $ 

See Notes to Financial Statements

2016

DELTA REGIONAL AUTHORITY

STATEMENTS OF CHANGES IN NET POSITION

YEARS ENDED SEPTEMBER 30, 2017 AND 2016

47
2017

Federal State and Other

 Rural Community 

Assistance Program Eliminations Combined

Budgetary and

Budgetary Non-Budgetary Non-Budgetary Non-Budgetary Non-Budgetary

BUDGETARY RESOURCES

Unobligated balance, beginning of year 1,939,380 $ 1,101,736 $ (19,594) $ - $ 3,021,522 $ 

Recoveries of prior year obligations 183,360 - - - 183,360 

Budget authority

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

Spending authority from offsetting collections

Collected - 1,688,680 3,552,768 - 5,241,448 

TOTAL RESOURCES (BUDGETARY AND NON-BUDGETARY) 27,122,740 $ 2,790,416 $ 3,533,174 $ - $ 33,446,330 $ 

STATUS OF BUDGETARY RESOURCES

Obligations incurred

Direct 26,772,985 $ - $ - $ - $ 26,772,985 $ 

Unobligated balances/unexpended funds

Apportioned 355,025 - - - 355,025 

Unapportioned - - - - - 

Unexpended funds - 1,168,063 37,663 - 1,205,726 

Unobligated balance not available - - - - - 

TOTAL STATUS OF BUDGETARY RESOURCES 27,128,010 $ 1,168,063 $ 37,663 $ - $ 28,333,736 $ 

CHANGE IN OBLIGATED BALANCES

Obligated balance, net, beginning of year 36,180,231 $ 101,701 $ 813,703 $ - $ 37,095,635 $ 

Obligations incurred 26,772,985 1,622,353 3,495,511 - 31,890,849 

Gross outlays (15,527,290) (1,706,324) (4,069,626) - (21,303,240) 

Recoveries of prior year unpaid obligations, actual (183,360) - - - (183,360) 

Obligated balance, net, end of year

Undelivered orders 45,415,664 - - - 45,415,664 

Accounts payable 1,826,902 17,730 239,588 - 2,084,220 

TOTAL UNPAID OBLIGATED BALANCE, NET,

END OF YEAR 47,242,566 $ 17,730 $ 239,588 $ - $ 47,499,884 $ 

NET OUTLAYS

Gross outlays 15,527,290 $ 1,706,324 $ 4,069,626 $ - $ 21,303,240 $ 

Offsetting collections - (1,688,680) (3,552,768) (5,241,448) - 

TOTAL NET OUTLAYS 15,527,290 $ 17,644 $ 516,858 $ - $ 16,061,792 $ 

See Notes to Financial Statements

DELTA REGIONAL AUTHORITY

STATEMENTS OF RESOURCES (BUDGETARY AND NON-BUDGETARY)

YEARS ENDED SEPTEMBER 30, 2017 AND 2016

48
2016

 Federal State and Other

 Rural Community 

Assistance Program Eliminations Combined 

Budgetary and

Budgetary Non-Budgetary Non-Budgetary Non-Budgetary Non-Budgetary

$ 872,382 523,988 $ (25,670) $ - $ 1,370,700 $ 

 - 1,050,638 - - 1,050,638 

 - 25,000,000 - - 25,000,000 

 1,790,730 - 3,989,345 - 5,780,075 

$ 2,663,112 26,574,626 $ 3,963,675 $ - $ 33,201,413 $ 

$ - 24,635,247 $ - $ - $ 24,635,247 $ 

 - 888,742 - - 888,742 

 - - - - - 

 1,101,736 - (19,594) - 1,082,142 

 - 1,050,638 - - 1,050,638 

$ 1,101,736 26,574,627 $ (19,594) $ - $ 27,656,769 $ 

$ 35,414 26,619,675 $ 1,162,757 $ - $ 27,817,846 $ 

 1,561,376 24,635,247 3,983,269 - 30,179,892 

 (1,495,089) (14,024,053) (4,332,323) - (19,851,465) 

 - (1,050,638) - - (1,050,638) 

 - 34,767,530 - - 34,767,530 

 101,701 1,412,701 813,703 2,328,105 - 

$ 101,701 36,180,231 $ 813,703 $ - $ 37,095,635 $ 

$ 1,495,089 14,024,053 $ 4,332,323 $ - $ 19,851,465 $ 

 (1,790,730) - (3,989,345) (5,780,075) - 

$ (295,641) 14,024,053 $ 342,978 $ - $ 14,071,390 $ 

49
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2017 AND 2016 

50

NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

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). 

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 
51

(budgetary and non-budgetary). The balance sheets present, as of September 30, 2017 and 2016, 

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 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. 

 

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.”

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 

non-budgetary) have been prepared in accordance with budgetary accounting rules. 

Use of Estimates 

The preparation of financial statements in conformity with GAAP 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. 
52

Revenues and Other Financing Sources 

DRA is a federal agency 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 United States Department of Transportation (DOT) during fiscal years 2017 and 2016. 

Cash 

At September 30, 2017 and 2016, cash consisted of deposit accounts with various financial 

institutions. At September 30, 2017, the Authority’s cash accounts were fully insured or 

otherwise collateralized. 

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 

one year. 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. 

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 240 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. 
53

NOTE 2 – FUND BALANCE WITH TREASURY 

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

with DOT. A summary of DRA’s fund balance with Treasury follows. 

 

2017 2016

Fund balance with Treasury

Appropriated fund $ 47,592,321 $ 38,119,613

Status of fund balance with Treasury

Unobligated balance

Available 355,025 $ 888,742 $ 

Unavailable - 1,050,638

Obligated balance not yet disbursed 47,237,296 36,180,233

$ 47,592,321 $ 38,119,613

NOTE 3 – PROPERTY AND EQUIPMENT 

Property and equipment consisted of the following at September 30, 2017. 

Beginning Purchases, End

Asset Class Balance at cost Deletions Balance

Vehicles - $ 243,728 $ - $ 243,728 $ 

 - - - - 

Property and equipment, gross - 243,728 - 243,728 

Accumulated depreciation - (23,750) - (23,750) 

Property and equipment, net - $ 219,978 $ - $ 219,978 $ 

Depreciation expense for the fiscal year ended September 30, 2017 was $23,750. 

NOTE 4 – RECEIVABLES 

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, 2017, $47,230 was due from USDA for administrative expenses and $148,477 

was due from USDA for subgrantee expenses recorded in the financial statements as program 

costs. At September 30, 2016, $29,328 was due from USDA for reimbursement of 
54

administrative expenses, $250,176 was due from USDA for subgrantee expenses recorded in the 

financial statements as program costs, $61,764 due from Mississippi as the remaining portion of 

their state assessment and $1,190 from other sources. 

NOTE 5 – FUNDS RECEIVED AS ASSESSMENTS FROM MEMBER STATES 

Funds received as assessments from the various member states are maintained in a 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. 

2017 2016

Balance of state funds on hand, 

beginning of year $ 198,739 342,023 $ 

Current year billed to and received from states 1,194,444 1,245,335 

Total available from states 1,536,467 $ 1,444,074 $ 

Balance of state funds on hand, 

end of year $ 236,538 $ 342,023

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) and are as follows: 

2017 2016

Liabilities not covered by budgetary resources

Leave liability (federal) - $ 27,727 $ 

Leave liability (state) 63,078 47,339

Other payables (state and other) 17,730 118,214

Deferred inflows from grants (RCAP and other) 152,247 408,596

Grants payable (RCAP) 328,588 410,071 

Total liabilities not covered by budgetary resources 5 61,643 1,011,947
55

2017 2016

Liabilities covered by budgetary resources

Accounts payable - $ 53,598 $ 

Grants payable 1,254,651 1,176,525

Payroll and leave liability 8,572 48,752

Intragovernmental payable 246,634 232,065

Total liabilities covered by budgetary resources 1,509,857 1,510,940

Total liabilities $ 2,071,500 $ 2,522,887

NOTE 7 – GRANTS AND OTHER PAYABLES 

A summary of grants and other payables at September 30 follows.

2017 2016

Federal

Accrued funded payroll and leave - current 8,572 $ 48,752 $ 

Accrued unfunded leave - noncurrent - 27,727

Grants payable 1,254,651 1,176,525 

Total federal 1,263,223 1,253,004 

State and Other

Accrued leave 63,078 47,339

Deferred inflows of grant funds 90,000 21,477 

Total state and other 153,078 68,816 

RCAP

Deferred inflows of grant funds 62,247 90,473

Grants payable 328,588 410,071 

Other payables - 1,770 

Total RCAP 390,835 502,314 

$ 1,824,134 1,807,136 $ 

 
56

NOTE 8 – APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

The direct obligations are obligations incurred against amounts apportioned under category A 

and 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 at 

September 30 follows. 

2017 2016

Direct - category B Grants 23,918,833 $ 22,370,126 $ 

Direct - category B Administration 2,854,152 2,265,121

Total obligations $ 26,772,985 $ 24,635,247

NOTE 9 – 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 $561,643, and the decrease in components 

requiring resources in future periods totaled $27,727 at September 30, 2017. Liabilities not 

covered by budgetary resources totaled $1,011,947, and the decrease in components requiring 

resources in future periods totaled $9,979 at September 30, 2016. 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. 

Whereas, 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. 

NOTE 10 – OPERATING LEASES 

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

under a 15-year operating lease arrangement with Coahoma County, Mississippi. DRA also 

leases space for the Washington D.C. office from State Services Organization, Inc. under a sixyear operating lease arrangement. 
57

Future minimum lease payments at September 30, 2017, were: 

 

2018 114,346 $ 

2019 115,617 

2020 53,217 

$ 283,180

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. However, the lease 

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

will be liable for four months of base rent upon early termination of the lease agreement. Rental 

expense was $134,102 and $106,200 for the years ended September 30, 2017 and 2016, 

respectively. 

NOTE 11 – 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 

Contribution rates for the Authority for the defined contribution 401(k) plan expressed as a 

percentage of covered payroll were 12.8% and 10.3% for the years ended September 30, 2017 

and 2016, respectively. Contributions made by the Authority amounted to approximately 

$123,000 and $97,000 for the years ended September 30, 2017 and 2016, respectively. 

FERS covered employees are required to contribute 0.8% of their annual covered salary, and the 

Authority was required to contribute 11.2% of annual covered payroll. For the year ended 

September 30, 2014 and following, FERS covered employees make contributions based on their 

year of hire ranging from 0.8% to 4.4%, and the employer contribution ranges from 11.9% to 
58

20.8%. Contribution rates for employees participating in the FERS plan expressed as a 

percentage of covered payroll were 14.0% and 14.2% for the years ended September 30, 2017 

and 2016, respectively. The Authority’s contributions to FERS for the years ended 

September 30, 2017 and 2016 were approximately $44,500 and $75,000, respectively, which 

equaled the required contributions for each year. 

NOTE 12 – 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 13 – 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 where 

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 financial [proprietary] accounting) is as follows 

(note: in prior years, this information was presented as a separate financial statement [the 

statement of financing]). 
59

2017 2016

RESOURCES USED TO FINANCE ACTIVITIES

BUDGETARY RESOURCES OBLIGATED

Obligations incurred 26,772,985 $ 24,635,247 $ 

Less spending authority from offsetting collections and recoveries 183,360 (1,050,638) 

Net obligations 26,956,345 23,584,609 

OTHER RESOURCES

Imputed financing from costs absorbed by others 15,557 28,255 

Cost of operations absorbed by member states and others 1,622,353 1,561,376

Cost of operations absorbed by RCAP 3,495,511 3,983,269 

Other 1,165 - 

TOTAL RESOURCES USED TO FINANCE ACTIVITIES 32,090,931 29,157,509 

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 (10,653,404) (9,141,082) 

TOTAL RESOURCES USED TO FINANCE THE NET

COST OF OPERATIONS 21,437,527 20,016,427 

TOTAL RESOURCES USED TO FINANCE THE 

ACQUISITION OF ASSETS - (1,190) 

COMPONENTS REQUIRING OR GENERATING

RESOURCES IN FUTURE PERIODS

Increase (decrease) in annual leave liability (27,727) (9,979) 

TOTAL RESOURCES USED TO FINANCE THE NET

COST OF OPERATIONS 21,409,800 $ 20,005,258 $ 
60

NOTE 14 – EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF 

BUDGETARY RESOURCES AND THE BUDGET OF THE UNITED STATES 

GOVERNMENT 

Budgetary resources made available to DRA include current appropriations, unobligated 

appropriations and recoveries of prior year obligations. For FY 2016, no material differences 

exist between the amounts on the statement of budgetary resources and the amounts in the FY 

2018 President’s budget, which are rounded to the nearest million. As the FY 2019 President’s 

budget is not yet available, comparison between the statement of budgetary resources and the 

actual FY 2017 data in the FY 2019 budget cannot be performed. 

 
OTHER INFORMATION

61
 State Rural Community 

Federal and Other Assistance Program Elimina

ASSETS

Intragovernmental

Fund balance with Treasury 47,592,321 $ - $ - $ 

$ 

Cash - 378,699 429,170 

 

Property and equipment, net - 219,978 

- 

Receivables 26 47,234 148,447 

TOTAL ASSETS 47,592,347 $ 645,911 $ 577,617 $ 

$ 

LIABILITIES

Intragovernmental payable 246,634 $ - $ - $ 

$ 

Interfund transfers 543,841 (692,960) 149,119 

 

Accounts payable - 17,730 - 

 

Grants and other payables 1,263,223 153,078 390,835 

TOTAL LIABILITIES 2,053,698 (522,152) 539,954 

 

NET POSITION

Unexpended appropriations/state funds 45,538,623 1,168,063 37,663 

 

Cumulative results of operations 26 - - 

TOTAL NET POSITION 45,538,649 1,168,063 37,663 

TOTAL LIABILITIES AND NET POSITION 47,592,347 $ 645,911 $ 577,617 $ 

$ 

DELTA REGIONAL AUTHORITY

COMBINING BALANCE SHEET

SEPTEMBER 30, 2017 

62
 State Rural Community 

Federal and Other Assistance Program Eliminatio

ASSETS

Intragovernmental

Fund balance with Treasury 38,119,613 $ - $ - $ - $ 

Cash - 1,217,620 373,646 - 

Receivables 1,190 91,092 250,176 - 

TOTAL ASSETS 38,120,803 $ 1,308,712 $ 623,822 $ - $ 

LIABILITIES

Intragovernmental payable 251,904 $ - $ - $ - $ Interfund payable 158,156 12,131 (170,287) - 

Accounts payable 330,405 101,701 14,743 - Grants and other payables 932,030 93,144 798,960 - 

TOTAL LIABILITIES 1,672,495 206,976 643,416 - 

NET POSITION

Unexpended appropriations/state funds 36,474,844 1,101,736 (19,594) - Cumulative results of operations (26,536) - - - 

TOTAL NET POSITION 36,448,308 1,101,736 (19,594) - 

TOTAL LIABILITIES AND NET POSITION 38,120,803 $ 1,308,712 $ 623,822 $ - $ 

DELTA REGIONAL AUTHORITY

COMBINING BALANCE SHEET

SEPTEMBER 30, 2016 

63
State Rural Community 

Federal and Other Assistance Program Eliminatio

PROGRAM COSTS

Economic Development

Intragovernmental gross costs 192,990 $ - $ - $ - $ 

Less intragovernmental earned revenue - - - - 

Intragovernmental net costs 192,990 - - - 

Gross costs with the public 15,732,226 1,622,353 3,495,511 - Less earned revenues from the public - - - - 

Net costs with the public 15,732,226 1,622,353 3,495,511 - TOTAL NET PROGRAM COSTS 15,925,216 1,622,353 3,495,511 - 

NET COST OF OPERATIONS 15,925,216 $ 1,622,353 $ 3,495,511 $ - $ 

DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF NET COST

YEAR ENDED SEPTEMBER 30, 2017

64
 State Rural Community 

Federal and Other Assistance Program Elimination

PROGRAM COSTS

Economic Development

Intragovernmental gross costs 237,092 $ - $ - $ 

$ 

Less intragovernmental earned revenue - - - 

 

Intragovernmental net costs 237,092 - - 

 

Gross costs with the public 14,223,521 1,561,376 3,983,269 

 

Less earned revenues from the public - - - 

Net costs with the public 14,223,521 1,561,376 3,983,269 

 

TOTAL NET PROGRAM COSTS 14,460,613 1,561,376 3,983,269 

 

NET COST OF OPERATIONS 14,460,613 $ 1,561,376 $ 3,983,269 $ 

$ 

DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF NET COST

YEAR ENDED SEPTEMBER 30, 2016

65
Federal 

Cumulative Cumulative Cumulative Cumulative 

Results Unexpended Results Unexpended Results Unexpended Results Unexpended 

of Operations Appropriations of Operations State Funds of Operations RCAP Funds of Operations Funds 

NET POSITION, BEGINNING BALANCE (26,536) $ 36,474,844 $ - $ 1,101,736 $ - $ (19,594) $ - $ - $ 

BUDGETARY FINANCING SOURCES (USES)

Appropriations received - 25,000,000 - - - - - - Appropriations used 15,936,221 (15,936,221) - - - - - - 

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states

and others - - - 1,688,680 - - - - 

Cost of operations absorbed by RCAP - - - - - 3,552,768 - - 

Imputed financing from costs absorbed by others 15,557 - - - - - - - Disbursements of RCAP funds - - - - 3,495,511 (3,495,511) - - 

Disbursements of funds provided by member states

and others - - 1,622,353 (1,622,353) - - - - 

TOTAL FINANCING SOURCES (USES) 15,951,778 9,063,779 1,622,353 66,327 3,495,511 57,257 - - 

NET COST OF OPERATIONS 15,925,216 - 1,622,353 - 3,495,511 - - - 

NET CHANGE 26,562 9,063,779 - 66,327 - 57,257 - - 

NET POSITION, ENDING BALANCE 26 $ 45,538,623 $ - $ 1,168,063 $ - $ 37,663 $ - $ - $ 

DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF CHANGES IN NET POSITION

YEAR ENDED SEPTEMBER 30, 2017

State and Other

Rural Community Assistance 

Program Eliminations

66
Cumulative Cumulative Cumulative Cumulative 

Results Unexpended Results Unexpended Results Unexpended Results Unexpended 

of Operations Appropriations of Operations State Funds of Operations RCAP Funds of Operations Funds 

NET POSITION, BEGINNING BALANCE (37,705) $ 25,918,371 $ - $ 872,382 $ - $ (25,670) $ - $ - $ 

$ 

BUDGETARY FINANCING SOURCES (USES)

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

 

Appropriations used 14,443,527 (14,443,527) - - - - - - 

 

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states

and others - - - 1,790,730 - - - - 

 

Cost of operations absorbed by RCAP - - - - - 3,989,345 - - 

 

Imputed financing from costs absorbed by others 28,255 - - - - - - - 

 

Disbursements of RCAP funds - - - - 3,983,269 (3,983,269) - - 

 

Disbursements of funds provided by member states

and others - - 1,561,376 (1,561,376) - - - - 

TOTAL FINANCING SOURCES (USES) 14,471,782 10,556,473 1,561,376 229,354 3,983,269 6,076 - - 

 

NET COST OF OPERATIONS 14,460,613 - 1,561,376 - 3,983,269 - - - 

NET CHANGE 11,169 10,556,473 - 229,354 - 6,076 - - 

NET POSITION, ENDING BALANCE (26,536) $ 36,474,844 $ - $ 1,101,736 $ - $ (19,594) $ - $ - $ 

$ 

DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF CHANGES IN NET POSITION

YEAR ENDED SEPTEMBER 30, 2016

State and Other

Rural Community Assistance 

Federal Program Eliminations

67
DELTA REGIONAL AUTHORITY

 State Rural Community 

Federal and Other Assistance Program Elimi

RESOURCES USED TO FINANCE ACTIVITIESBUDGETARY RESOURCES OBLIGATED

Obligations incurred 26,772,985 $ - $ - $ 

$ 

Less spending authority from offsetting collections and recoveries (183,360) - - 

Net obligations 26,589,625 - - 

 

OTHER RESOURCES

Imputed financing from costs absorbed by others 15,557 - - 

 

Cost of operations absorbed by member states and others - 1,622,353 - 

 

Cost of operations absorbed by RCAP - 3,495,511 

 

Other 1,165 - - 

TOTAL RESOURCES USED TO FINANCE ACTIVITIES 26,606,347 1,622,353 3,495,511 

 

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 (10,653,404) - - 

TOTAL RESOURCES USED TO FINANCE ITEMS NOT PART

OF THE NET COST OF OPERATIONS 15,952,943 1,622,353 3,495,511 

 

RESOURCES THAT FINANCE THE ACQUISITION OF ASSETS - - - 

 

COMPONENTS REQUIRING OR GENERATING RESOURCES IN 

FUTURE PERIODS

Decrease in annual leave liability (27,727) - - 

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS 15,925,216 $ 1,622,353 $ 3,495,511 $ 

$ 

COMBINING RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) TO BUDGET

YEAR ENDED SEPTEMBER 30, 2017

68
DELTA REGIONAL AUTHORITY

State Rural Community 

Federal and Other Assistance Program Elimi

RESOURCES USED TO FINANCE ACTIVITIESBUDGETARY RESOURCES OBLIGATED

Obligations incurred 24,635,247 $ - $ - $ 

$ 

Less spending authority from offsetting collections and recoveries (1,050,638) - - 

Net obligations 23,584,609 - - 

 

OTHER RESOURCES

Imputed financing from costs absorbed by others 28,255 - - 

 

Cost of operations absorbed by member states - 1,561,376 - 

 

Cost of operations absorbed by RCAP - - 3,983,269 

TOTAL RESOURCES USED TO FINANCE ACTIVITIES 23,612,864 1,561,376 3,983,269 

 

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 (9,141,082) - - 

TOTAL RESOURCES USED TO FINANCE ITEMS NOT PART OF

THE NET COST OF OPERATIONS 14,471,782 1,561,376 3,983,269 

 

RESOURCES THAT FINANCE THE ACQUSITION OF ASSETS - (1,190) - 

 

COMPONENTS REQUIRING OR GENERATING RESOURCES IN 

FUTURE PERIODS

Increase in annual leave liability (9,979) - - 

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS 14,460,613 $ 1,561,376 $ 3,983,269 $ 

$ 

COMBINING RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) TO BUDGET

YEAR ENDED SEPTEMBER 30, 2016

69
Description Federal Funds 

 State and Other 

Funds 

 Rural Community 

Assistance Program 

Grants, subsidies and contributions 14,106,939 $ - $ 3,495,51

$ 

Consulting and other services 365,498 506,033 - Employee benefits 310,519 169,845 - Personnel services 808,210 401,758 - Seminars and meetings - 138,616 - Travel and transportation of persons 184,798 10,696 - Rent, communications and utilities 91,574 168,511 - Supplies and materials 54,792 37,526 - Printing and reproduction 29,174 84,165 - Office expense 1,439 105,203 - 

$ 1,622,353 15,952,943 $ 3,495,51

$ 

YEAR ENDED SEPTEMBER 30, 2017

SCHEDULE OF EXPENDITURES

DELTA REGIONAL AUTHORITY

Paid From

70
DRA Total Funding DRA Total Funding DRA 

Obligated Project Funds Priority % Obligated Project Funds Priority % Obligated 

 A. Basic Public Infrastructure 3,818,801 $ 15,580,377 $ 37.0% 4,375,155 $ 98,374,292 $ 42.4% 2,710,867 $  B. Transportation Infrastructure 1,563,060 12,061,015 15.1% 1,658,999 44,428,541 16.1% 1,759,543  C. Business Development 2,046,194 16,674,410 19.8% 1,639,757 46,595,849 15.9% 2,590,722  D. Work Development 1,969,852 30,175,127 19.1% 1,275,062 4,650,168 12.4% 1,755,746 

 E. Other 922,917 2,282,729 8.9% 1,361,512 13,138,568 13.2% 746,991 

$ 76,773,658 10,320,824 $ 100.0% $ 207,187,418 10,310,485 $ 100.0% $ 

9,563,869 

DRA State State DRA State State DRA 

Obligated Allocation

% Obligated Allocation

% Obligated 

State Allocations

Alabama 1,046,252 $ 1,046,252 $ 10.1% 1,085,395 $ 1,085,396 $ 10.5% 1,106,966 $ 

Arkansas 1,442,110 1,442,110 13.9% 1,522,320 1,522,320 14.7% 1,434,397 

Illinois 844,671 844,671 8.1% 768,862 838,670 8.1% 773,722 Kentucky 924,312 924,312 8.9% 918,441 918,441 8.8% 874,446 Louisiana 2,079,313 2,069,314 19.9% 1,795,360 1,795,360 17.3% 1,557,975 

Mississippi 1,468,630 1,538,098 14.8% 1,635,176 1,635,177 15.8% 1,383,363 

Missouri 1,152,368 1,152,368 11.1% 1,147,049 1,147,050 11.1% 1,087,955 Tennessee 1,363,168 1,363,168 13.1% 1,437,882 1,437,882 14.3% 1,345,045 

$ 10,320,824 10,380,293 $ 100.0% $ 10,310,485 10,380,296 $ 100.0% $ 9,563,869 

* Grant obligation process for 2017 not completed as of audit report date.Obligated may be more than allocated due to deobligation and reobligation of prior years' unused funds.Totals may not add due to rounding.

2017 2016 

DELTA REGIONAL AUTHORITY

SCHEDULES OF GRANTS MADE*

YEARS ENDED SEPTEMBER 30, 2017, 2016 AND 2015

2017 2016 

71
DRA Total Funding DRA Total 

Obligated Project Funds Priority % Obligated Project Funds 

 A. Basic Public Infrastructure 7,240,001 $ 85,797,841 $ 72.5% 8,520,150 $ 86,404,125 $  B. Transportation Infrastructure 2,450,000 65,396,670 24.5% 1,400,000 3,480,500 

 C. Business Development 300,000 9,610,052 3.0% - -  D. Work Development - - 0.0% - -  E. Other - - 0.0% - - 

$ 160,804,563 9,990,001 $ 100.0% $ 89,884,625 9,920,150 $ 

DRA State State DRA State 

Obligated Allocation

% Obligated Allocation

State Allocations

Alabama - $ - $ 0.0% - $ - $ 

Arkansas 1,350,000 1,350,000 13.5% 1,355,500 1,355,500 

Illinois 515,000 515,000 5.2% 120,150 120,150 

Kentucky 800,000 800,000 8.0% 800,000 800,000 

Louisiana 1,211,901 1,211,901 12.1% 1,364,000 1,364,000 

Mississippi 2,963,100 2,963,100 29.7% 5,030,500 5,030,500 Missouri 1,600,000 1,600,000 16.0% 1,250,000 1,250,000 

Tennessee 1,550,000 1,550,000 15.5% - - 

$ 9,990,001 9,990,001 $ 100.0% $ 9,920,150 9,920,150 $ 

2017 2016

* 2016 is the first year of the CIF grant program.

2017

DELTA REGIONAL AUTHORITY

SCHEDULES OF GRANTS MADE (CONTINUED)*

COMMUNITY INFRASTRUCTURE FUND (CIF)

YEARS ENDED SEPTEMBER 30, 2017 and 2016

2016

72
Independent Auditor’s Report on Internal Control 

Over Financial Reporting and on Compliance and 

Other Matters Based on an Audit of the Financial Statements 

Performed in Accordance with Government Auditing Standards 

Federal and State Co-Chairs 

 and Members of the Board 

Delta Regional Authority 

Clarksdale, Mississippi 

We have audited, 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, the basic financial statements 

of Delta Regional Authority (the Authority), which comprise the balance sheet as of 

September 30, 2017, and the related statements of net cost, changes in net position, and resources 

(budgetary and non-budgetary) for the year then ended, and the related notes to the financial 

statements, and have issued our report thereon dated January 2, 2018.

Internal Control Over Financial Reporting 

Management of the Authority is responsible for establishing and maintaining effective internal 

control over financial reporting (internal control). In planning and performing our audit, we 

considered the Authority’s internal control to determine the 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. Accordingly, we do not express an opinion on the effectiveness of the Authority’s 

internal control. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or a combination of deficiencies, in internal control such that there is a reasonable 

possibility that a material misstatement of the Authority’s financial statements will not be 

prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 

a combination of deficiencies, in internal control that is less severe than a material weakness, yet 

important enough to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph 

of this section and was not designed to identify all deficiencies in internal control that might be 

material weaknesses. Given these limitations, during our audit, we did not identify any
Federal and State Co-Chairs 

 and Members of the Board 

Delta Regional Authority 

Page 74 

deficiencies in internal control that we consider to be material weaknesses. However, material 

weaknesses may exist that have not been identified. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the Authority’s financial statements are 

free of material misstatement, we performed tests of its compliance with certain provisions of 

laws, regulations, contracts and grant agreements, noncompliance with which could have a direct 

and material effect on the determination of financial statement amounts and certain other laws 

and regulations specified in OMB Bulletin No. 17-03. However, providing an opinion on 

compliance with those provisions was not an objective of our audit and, accordingly, we do not 

express such an opinion. The results of our tests disclosed no instances of noncompliance or 

other matters that are required to be reported under Government Auditing Standards or OMB 

Bulletin No. 17-03. 

We noted certain matters that we reported to the Authority’s management in a separate letter 

dated January 2, 2018. 

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of internal control and 

compliance and the results of that testing, and not to provide an opinion on the effectiveness of 

the Authority’s internal control or on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards in considering the Authority’s 

internal control and compliance. Accordingly, this communication is not suitable for any other 

purpose. 

Jackson, Mississippi 

January 2, 2018