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The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. A Financial Statement Analysis Using Indicators of the Financial Health and Success and a Status Report of Audit Findings, Timeliness and Exception Resolution (A.F.T.E.R.) of the Government of the U.S. Virgin Islands as of and for the Year Ended September 30, 2019 U.S . Vir gin Isl an ds F i s c a l Ye a r 2 0 1 9 This presentation is available online at http://www.pitiviti.org The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. W hat Is The P er f or met er ®? • An analysis that takes a government’s financial statements and converts them into useful and understandable measures of financial performance • Financial ratios and a copyrighted analysis methodology are used to arrive at an overall rating of 0-10 • The overall reading is a barometer of VI’s financial health and performance 2 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. How t o Use The P er f or met er ® • Use the individual ratios to identify financial warning signals • Use the overall rating as a collective benchmark of financial health and success of VI as a whole • Use the comparisons to prior years to monitor trends in financial indicators 3 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Limit at ion s of t he P er f or met er ® • The Performeter® should not be used as the only source of financial information to evaluate VI’s performance and condition • The analysis is an overall rating of VI as a whole and not of specific activities, funds or units • The Performeter® is based on Crawford & Associates’ professional judgment and is limited as to its intended use 4 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Chan ge in N et P osit ion Did ou r over al l f in an cial con dit ion impr ove, decl in e or r emain st eady over t he past year ? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 -2 9 .3 % -2 1.6 % 13 .3 % -9 .1% 4 % -7 .1% 0 .1% -2 0 % -1.4 % -3 .9 % Net position includes all assets of the VI, except for fiduciary funds held for the benefit of others. It is measured as the difference between total assets, including capital assets, and deferred outflows, netted against liabilities, including long-term debt, and deferred inflows. For the year ended September 30, 2019, total net position decreased by $190.5 million or 3.9% from the prior year, leaving a total net position (deficit) of approximately $(5.1) billion at year end. This increase in the total net position (deficit) was primarily due to overall expenses for the year exceeding revenues earned in the current year. $(1,398) $(1,525) $(1,464) $(3,739) $(3,736) $(4,821) $(4,889) $(5,080) $(5,100) $(4,600) $(4,100) $(3,600) $(3,100) $(2,600) $(2,100) $(1,600) $(1,100) $(600) $(100) $400 2012 2013 2014 2015 2016 2017 2018 2019 In 0 0 0 s N et P osit ion at Year En d ( In mil l ion s) 5 P er f or met er ® Rat in g 3 .1 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. In t er gen er at ion al Equit y W ho is payin g f or t oday’s cost s of ser vices? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 8 6 .2 % 8 4 .9 % 8 8 .5 % 9 0 .8 % 10 4 .5 % 8 2 .8 % 10 0 .2 % 7 0 .9 % 9 1.3 % 9 1.5 % A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some of the current year costs to future periods. For the year ended September 30, 2019, the VI funded 91.5% of their current year expenses with current year revenues, which is considered an unhealthy ratio, and consistent when compared to the ratio of the previous period. 9 9 .9 % 10 4 .5 % 8 2 .8 % 10 0 .2 % 7 0 .9 % 9 1.3 % 9 1.5 % 0% 20% 40% 60% 80% 100% 120% 2013 2014 2015 2016 2017 2018 2019 Reven ues as a % of An n ual Ex pen ses 6 P er f or met er ® Rat in g 1.5 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Level of Un r est r ict ed N et P osit ion How do ou r t ot al r ain y day f un ds l ook? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 -10 7 .5 % -13 9 .3 % -14 2 .3 % -14 9 .8 % -14 6 .9 % -3 5 7 .2 % -2 6 7 .7 % -3 8 2 .7 % -2 6 9 .6 % -2 8 4 .3 % The level of total unrestricted net position is an indication of the amount of unexpended and available resources the VI has at a point in time to fund emergencies, shortfalls or other unexpected needs. For the year ended September 30, 2019, the VI’s total unrestricted net position (deficit) approximated $(5.1) billion or 284.3% of annual total revenues. This is considered an unsatisfactory financial indicator and represents a further worsening from the ratio of the prior year. Un r est r ict ed N et P osit ion ( Def icit ) as a % of An n ual Reven ues - 291.2% -13 0 .9 % -2 8 4 .3 % -350% -300% -250% -200% -150% -100% -50% 0% GA BTA Total 7 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Level of Un assign ed Fun d B al an ce How does ou r car r yover l ook? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 -2 6 .4 % -11.6 % -1.3 % -1.5 % -12 .4 % -8 .6 % -8 .2 % -3 6 .3 % -10 .3 % -12 .6 % The level of unassigned fund balance is an indication of the amount of unexpended, unencumbered and available resources the VI has at a point in time to carryover into the next fiscal year to fund budgetary emergencies, shortfalls or other unexpected needs. In this analysis, only the General Fund is considered. For the year ended September 30, 2019, the VI’s unassigned fund balance (deficit) of the General Fund was ($115) million, equivalent to 12.6% of annual General Fund revenues. This is considered to be an unsatisfactory ratio and financial position for the General Fund to be in, and it represents a decline from the ratio of the prior year. -11.6 % -1.3 % -1.5 % -12 .4 % -8 .6 % -8 .2 % -3 6 .3 % -10 .3 % -12 .6 % -40% -30% -20% -10% 0% 10% 20% 30% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Un assign ed Fun d B al an ce ( DEFICIT) as a P er cen t age of An n ual Reven ues 8 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Reven ue Disper sion How heavily ar e w e r elyin g on r even ue sou r ces w e can ’t dir ect ly con t r ol ? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 2 2 .3 % 4 2 .8 % 4 8 .7 % 5 1.8 % 4 3 .5 % 4 5 .9 % 3 7 .7 % 4 8 .0 % 3 1.5 % 3 2 .6 % The percentage dispersion of revenue by source indicates how dependent the VI is on certain types of revenue. The more dependent the VI is on revenue sources beyond its direct control, such as grants and certain taxes, the less favorable the dispersion. For the year ended September 30, 2019, the VI had direct control over 32.6% of its revenues (some taxes and charges for services). This ratio indicates that the VI has some exposure, as do most insular governments, to financial difficulties due to reliance on non-controlled revenue (67.4%). 48.00% 42.00% 5.00% 5.00% 2019 REVENUE PERCENTAGES BY SOURCE Taxes Grants & Contributions Service Charges Other 9 P er f or met er ® Rat in g 2 .8 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. B TA S el f -S uf f icien cy Did cu r r en t year busin ess-t ype act ivit ies ( B TA) pay f or t hemsel ves? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 5 8 .2 % 5 1.7 % 5 5 % 7 0 .7 % 6 4 % 6 8 .9 % 8 1.2 % 9 9 .5 % 5 9 .3 % 6 8 .1% The self-sufficiency ratio indicates the level at which business-type activities covered their current costs with current year revenues, without having to rely on subsidies, grants or use of prior year reserves. For the year ended September 30, 2019, the VI’s total business-type activities were 68.1% self- sufficient. This indicates that, for the current year, the ratio has improved when compared to the ratio of the prior year, but that the costs of business-type activities in total are still not 100% funded by recurring current year revenues, and require either a subsidy, the use of reserves, or a combination of both in order to meet their obligations. 7 1% 6 4 % 6 9 % 8 1% 10 0 % 5 9 % 6 8 .1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018 2019 P er cen t age of B TA Ex pen ses Cover ed B y B TA Reven ues 10 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Capit al Asset Con dit ion How much usef ul l if e do w e have l ef t in ou r capit al asset s? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 6 0 % 5 5 % 5 5 % 5 3 % 5 4 % 5 5 % 5 4 % 4 9 % 4 8 % 5 4 % The capital asset condition ratio compares capital assets cost to accumulated depreciation to determine the overall percentage of useful life remaining. A low percentage could indicate an upcoming need to replace a significant amount of capital assets. At September 30, 2019, the VI’s depreciable capital assets amounted to $1.2 billion while accumulated depreciation totaled $569 million. This indicates that, on the average, the VI’s capital assets have 54% of their useful lives remaining. This is considered a just below satisfactory financial indicator, and represents an increase when compared to the ratios of previous periods. 5 4 % 5 5 % 5 4 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GA BTA Total P er cen t age of Capit al Asset s' Usef ul Lif e Remain in g 11 P er f or met er ® Rat in g 5 .9 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Fin an cin g M ar gin - Tax es W il l ou r cit iz en s be w il l in g t o pay in cr eased t ax es f or oper at ion s or capit al impr ovemen t s, if n eeded? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 $8 ,111 $6 ,4 3 0 $7 ,3 3 3 $8 ,4 11 $9 ,0 5 8 $7 ,7 2 8 $8 ,4 4 1 $7 ,9 4 4 $8 ,7 8 3 $9 ,2 9 5 The financial ratio of taxes per capita is an indication of the VI’s tax burden on its citizens and other taxpayers. The ratio includes all taxes, including income taxes, and other taxes. For the year ended September 30, 2019, total taxes amounted to $989 million or $9,295 per capita. This is considered a fairly significant tax burden per capita (when compared to other insular governments), and it represents an increase in the ratio from the prior period. $8 ,4 11 $9 ,0 5 8 $7 ,7 2 8 $8 ,4 4 1 7 ,9 4 4 $8 ,7 8 3 $9 ,2 9 5 $0 $2,000 $4,000 $6,000 $8,000 $10,000 2013 2014 2015 2016 2017 2018 2019 Tot al Tax es P er Capit a 12 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Fin an cin g M ar gin - Debt W il l w e be abl e t o issue mor e debt , if n eeded? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 $7 ,8 2 2 $8 ,7 4 8 $8 ,9 17 $8 ,10 4 $8 ,6 3 2 $3 1,18 6 $3 7 ,19 4 $4 1,6 8 6 $4 1,2 9 8 $4 7 ,5 5 2 The financial ratio of debt per capita is an indication of the VI’s debt burden on its citizens and other taxpayers. For the year ended September 30, 2019, the VI had $5,060 million of long-term debt or $47,552 per capita which is a fairly significant debt burden on its citizens (when compared to other insular governments), and represents an increase in the debt burden per capita when compared to the previous period. These debt amounts do not contain the debts paid with US government matching funds, or those paid by a dedicated stream of excise taxes received from the US government related to the production of rum. The significant increase in the debt per capita in 2015 from 2014 was related to the inclusion of net pension liabilities for the first time in the amount of approximately $2.3 billion. The increase for 2019 was due to $774 million of OPEB liabilities included for the first time. $8 ,10 4 $8 ,6 3 2 $3 1,18 6 $3 7 ,19 4 $4 1,6 8 6 $4 1,2 9 8 $4 7 ,5 5 2 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2013 2014 2015 2016 2017 2018 2019 Debt P er Capit a 13 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. P en sion P l an Fun din g Rat io W il l w e be abl e t o pay ou r empl oyees w hen t hey r et ir e? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 5 1% 4 6 % 4 5 % 4 1% 3 7 % 2 7 % 2 0 % 16 % 16 % 16 % The pension funding ratio compares the net position of the pension plan trust fund to the total pension liability for pension benefits. A percentage less than 100% indicates the plan is under-funded at the valuation date. At September 30, 2019, based upon the most recent actuarial valuation, the VI pension plan net position was approximately 16% of the total pension liability, indicating that the plan was not improving its funded status when compared to prior periods. This is an indicator of potential long- term cash demands that may be necessary to fund the future needs of the plan. The funded portion of the plan has been declining since 2007 for a number of reasons, and now is at its lowest funded status of the years included in this analysis. 5 1% 4 6 % 4 5 % 4 1% 3 7 % 2 7 % 2 0 % 16 % 16 % 16 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 P l an N et P osit ion as a P er cen t age of N et P en sion Liabil it y 14 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Debt S er vice Cover age W er e ou r r even ue bon d in vest or s pl eased w it h ou r abil it y t o pay t hem on t ime? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 0 .8 6 0 .9 4 1.6 1 2 .3 9 0 .2 3 1.6 6 2 .13 0 .2 3 0 .5 4 1.4 1 The debt service coverage ratio compares the VI’s debt service requirements on revenue bonds to the net operating cash generated by the revenue streams pledged for payment. A debt service ratio of greater than 1.25 indicates a sufficient ability to make the debt service payments from net revenue from operations. For the year ended September 30, 2019, the VI experienced a favorable debt service coverage ratio of 1.41, it represents an increase from the ratio in the prior year. This indicates the VI generated approximately 1.41 times the amount of cash necessary to pay the debt service requirements on its revenue bonds and notes related to the West Indian Company enterprise fund. The increase was primarily due to one time insurance reimbursements being received. 0 .9 4 1.6 1 2 .3 9 0 .2 3 1.6 6 2 .13 0 .2 3 0 .5 4 1.4 1 0 0.5 1 1.5 2 2.5 3 3.5 4 2011 2012 2013 2014 2015 2016 2017 2018 2019 N umber of Times N et P l edged Reven ues Cover An n ual Debt S er vice 15 P er f or met er ® Rat in g 6 .1 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Debt t o Asset s W ho r eal ly ow n s t he Vir gin Isl an ds? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 14 7 .6 % 16 8 .6 % 17 5 .4 % 17 1% 17 6 .3 % 3 14 .7 % 3 2 3 .3 % 4 0 7 .0 % 3 6 5 .3 % 3 3 5 .7 % The debt to assets ratio measures the extent to which the VI had funded its assets with debt. The lower the debt percentage, the more equity the VI has in its assets. At September 30, 2019, the VI had total debts or other obligations that exceeded its assets by 336%. This is an unfavorable financial indicator and indicates that none of the VI’s assets are technically “debt-free”, and for each dollar of assets the VI owns, it owes approximately $3.36 in liabilities to others. The change is this ratio does represent an improvement from the ratio of the prior year. 3 4 7 .0 % 14 8 .5 % 3 3 5 .7 % 0% 50% 100% 150% 200% 250% 300% 350% 400% GA BTA Total P er cen t age of Debt t o Asset s Debt Assets Debt Free 16 P er f or met er ® Rat in g 0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. 17 Debt S er vice Load How much of ou r an n ual n on -capit al budget is l oaded w it h disbu r semen t s t o pay of f l on g-t er m debt 26.0% 18.8% 13.3% 10.0% 9.7% 74.0% 81.2% 86.7% 90.0% 90.3% 0% 25% 50% 75% 100% 2015 2016 2017 2018 2019 Percentage of Debt Service to Non- Debt Expenditures Debt Service Non-Debt Expenditures The debt service load ratio measures the extent to which the VI’s non-capital expenditures were comprised of debt service payments on long-term debt. For the year ended September 30, 2019, the VI’s total non-capital expenditures amounted to $2.0 billion, of which $197 million (or 9.7%), were payments for principal and interest on long-term debt. In our model, this is considered a satisfactory ratio and indicates that for every dollar VI spent on non-capital items, 9.7 cents of that dollar was used for debt service. Restatements for FY 2015 and FY 2016 have been made to this score and the overall score due to the impact of this ratio. 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 n / a n / a n / a n / a 2 6 % 18 .8 % 13 .3 % 10 .1% 9 .7 % P er f or met er ® Rat in g 8 .4 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Cu r r en t Rat io W il l ou r ven dor s an d empl oyees be pl eased w it h ou r abil it y t o pay t hem on t ime? 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 0 .7 9 0 .7 4 0 .9 0 0 .8 3 1.3 0 0 .9 4 0 .9 0 0 .7 2 1.0 1 1.13 The current ratio is one measure of the VI’s ability to pay its short-term obligations. The current ratio compares total current assets and liabilities. A current ratio of 2.00 to 1 indicates good current liquidity and an ability to meet the short-term obligations. This ratio measures only the General Fund and business-type activities of the Enterprise Funds, the VI’s primary operating funds. At September 30, 2019, the VI had ratios of current assets to current liabilities of $1.13 to $1.00 This indicates that for every $1 of current liabilities, the VI had at least one dollar in current assets to fund them. The ratio improved with compared to the current ratio calculated in the prior year. $1,15 9 ,0 9 4 -$7 ,2 3 0 $1,15 1,8 6 4 $9 2 7 ,5 8 2 9 3 ,0 7 6 $1,0 2 0 ,6 5 8 -$10,000 $190,000 $390,000 $590,000 $790,000 $990,000 $1,190,000 GF BTA Total Cur r en t Asset s Compar ed t o Cur r en t Liabil it ies Current Assets Current Liabilities 18 P er f or met er ® Rat in g 0 .6 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Quick Rat io How is ou r shor t -t er m cash posit ion ? in ( 0 0 0 s) 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 0 .6 0 0 .5 7 0 .9 2 0 .8 4 0 .5 4 0 .5 8 0 .4 9 0 .3 9 0 .5 8 0 .2 0 The quick ratio is another, more conservative, measure of the VI’s ability to pay its short-term obligations. The quick ratio compares total cash and short-term investments to current liabilities. A quick ratio of 1.00 to 1 indicates adequate current liquidity and an ability to meet the short-term obligations with cash. This ratio measures only the General Fund and business-type activities of the Enterprise Funds, the VI’s primary operating funds. At September 30, 2019, the VI had a ratio of cash and cash equivalents to current liabilities of $0.20 to $1.00 This indicates that for every dollar of current liabilities, the VI had 20 cents in cash and cash equivalents to fund them. This is considered an unhealthy ratio, and it does represent a decline in the ratio of the prior year. $16 9 ,13 7 $3 3 ,6 3 1 $2 0 2 ,7 6 8 $9 2 7 ,8 5 2 $9 3 ,0 7 6 $1,0 2 0 ,9 2 8 -$1,000 $199,000 $399,000 $599,000 $799,000 $999,000 $1,199,000 GF BTA Total Cash & Cash Equivalents Current Liabilities Cash an d Cash Equival en t s Compar ed t o Cur r en t Liabil it ies 19 P er f or met er ® Rat in g 1.0 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. P er f or met er ® Readin g How W as Ou r Over al l Fin an cial P er f or man ce? For the 2019 fiscal year, the readings by ratio category were as follows: Financial Position 0.7 Financial Performance 3.4 Financial Capability 2.3 The 2019 overall reading of 1.92 indicates the evaluator’s opinion that the VI’s overall financial health and performance slightly improved during the year. The VI is still recovering from a number setbacks that it suffered in the previous 3 fiscal years, however that recovery will stretch over several years into the future. 1.9 8 2 .0 8 2 .7 4 2 .6 8 2 .6 9 2 .12 2 .8 9 1.3 1 1.5 1 1.9 2 0 1 2 3 4 5 6 7 8 9 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Over al l Readin g F Y 19 Over al l P er f or met er ® Readin g: 1.9 2 Ex cel l en t S at isf act or y P oor 20 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. 21 Rat io FY 2 0 14 FY 2 0 15 FY 2 0 16 FY 2 0 17 FY 2 0 18 FY 2 0 19 Chan ge in N et P osit ion 4 .0 % -7 .1% 0 .1% -2 0 .0 % -1.4 % -3 .9 % In t er gen er at ion al Equit y 10 4 .5 % 8 2 .8 % 10 0 .2 % 7 0 .9 % 9 1.3 % 9 1.5 % Level of Un r est r ict ed N et P osit ion -14 6 .9 % -3 5 7 .2 % -2 6 7 .7 % -3 8 2 .7 % -2 6 9 .6 % -2 8 4 .3 % Level of Un assign ed Fun d B al an ce -12 .4 % -8 .6 % -8 .2 % -3 6 .3 % -10 .3 % -12 .6 % Reven ue Disper sion 4 3 .5 % 4 5 .9 % 3 7 .7 % 5 8 .1% 3 1.5 % 3 2 .6 % B TA S el f -S uf f icien cy 6 4 % 6 8 .9 % 8 1.2 % 9 9 .5 % 5 9 .3 % 6 8 .1% Capit al Asset Con dit ion 5 4 % 5 5 % 5 4 % 4 9 % 4 8 % 5 4 % Fin an cin g M ar gin – Tax es $9 ,0 5 8 $7 ,7 2 8 8 ,4 4 1 $7 ,9 4 4 $8 ,7 8 3 $9 ,2 9 5 Fin an cin g M ar gin – Debt / Obl igat ion s $8 ,6 3 2 $3 1,18 6 3 7 ,19 4 $4 1,6 8 6 $4 1,2 9 8 $4 7 ,5 5 2 P en sion P l an Fun din g 3 7 % 2 7 % 2 0 % 16 % 16 % 16 % Debt S er vice Load N / A 2 6 % 18 .8 % 13 .3 % 10 .1% 9 .7 % Debt t o Asset s 17 6 .3 % 3 14 .7 % 3 2 3 .3 % 4 0 7 % 3 6 5 .3 % 3 3 5 .7 % Debt S er vice Cover age 0 .2 3 1.6 6 2 .13 0 .2 3 0 .5 4 1.4 1 Cur r en t Rat io 1.3 0 .9 4 0 .9 0 0 .7 2 1.0 1 1.13 Quick Rat io 0 .5 4 0 .5 8 0 .4 9 0 .3 9 0 .5 8 0 .2 0 Over al l P er f or met er Readin g 2 .6 9 * 2 .12 * 2 .8 9 1.3 1 1.5 1 1.9 2 P er f or met er In dividual Rat ios - S ummar y an d Compar ison t o P r ior Year s * N ot es year s t hat t he over al l scor e has been r est at ed f or compar ison pu r poses The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. W hat is t he A.F.T.E.R. An alysis? • The A.F.T.E.R. Analysis is very simply an analysis of the status of audit findings, the timeliness of the submission of the audit and the resolution of certain audit exceptions, this analysis can be used to track a government's progress towards eliminating its most significant findings and exceptions, along with tracking the timeliness of submission to the Federal Clearinghouse. 22 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. 2013 2014 2015 2016 2017 2018 2019 Number of F.S. Opinion Qualifications/Exceptions 6 9 16 19 9 13 11 Number of Major Federal Program Qualifications/Exceptions 3 6 9 9 10 7 11 Number of F.S. Findings A. Internal Control and Compliance B. Internal Control Only C. Compliance Only TOTAL 0 8 0 8 0 12 2 14 0 12 3 15 0 12 3 15 0 13 4 17 0 13 4 17 0 13 5 18 Percentage of Findings Repeated 100% (estimate) 100% (estimate) 100% (estimate) 100% (estimate) 100% (estimate) 100% (estimate) 100% (estimate) Number of A-133 Findings A. Internal Control and Compliance B. Internal Control Only C. Compliance Only TOTAL 14 0 0 14 46 0 0 46 57 0 0 57 56 0 0 56 71 0 0 71 57 0 0 57 51 0 0 51 Percentage of A-133 Findings Repeated Unable to determine 100% 84% (100% estimate) (100% estimate) (100% estimate) (100% estimate) Number of months after Y/E the F.S. were Released 9 12 9 9 24 21 21 Number of Qualifications/Exceptions Related to C.U. 4 3 6 5 3 4 5 $ of Questioned Costs-Current Year $0 $1,172,427 $348,349 $0 $163,394 $283,945 $278,600 $ of Questioned Costs- Cumulative $0 Unable to determine Unable to determine Unable to determine Unable to determine Unable to determine Unable to determine $ of Questioned Costs Resolved – Current Year $5,730,775 Unable to determine Unable to determine Unable to determine Unable to determine Unable to determine Unable to determine 23 The Performeter® is developed by Crawford & Associates, LLC, with support from the Graduate School USA’s PITI-VITI Program through the United States Department of the Interior. Than k You! • We would like to commend and thank the Government of the U.S. Virgin Island’s management, the U.S. Department of the Interior and the Graduate School USA for allowing us to present this financial analysis. We hope it serves as a useful and understandable compliment to the Virgin Island’s annual financial report. • This report is available online at http://www.pitiviti.org. • Visit our website at http://www.crawfordcpas.com for other useful tools for governments. 24