Troy Capital Resource Corporation

Chair Board Members Heidi Knoblauch Paul Carroll Tina Urzan Vice‐Chair Susan Farrell Vacant Elbert Watson AUDIT & FINANCE COMMITTEE MEETING Hon. Anasha Cummings Executive Director March 22, 2019 Steven Strichman Bill Strang 10:00 a.m. Planning Department Conference Room City Hall AGENDA I. Minutes ‐ January 18, 2019 II. Audit Presentation FY 2018 ‐ Wojeski & Co. III. Adjournment City Hall – 433 River Street, Suite 5001, Troy, New York 12180 Phone: 518.279.7166  January 18, 2019 10:32 AM Audit and Finance Committee Meeting Present: Heidi Knoblauch, Hon. Mark McGrath, Steve Strichman, Susan Farrell, Paul Carroll, Bill Strang, Tina Urzan, Elbert Watson and Hon. Anasha Cummings Absent: Also in attendance: Justin Miller, Esq., MaryEllen Flores, Deanna Dal Pos, Luke Nathan, D Sharon Martin, Chris Stephens, Matthew Sekellick, Ken Crowe and Denee Zeigler. The audit and finance committee meeting was called to order at 10:32 a.m. I. R Preliminary Audit Meeting T Chris Stephens of Wojeski & Co. spoke to the board members about the upcoming audit process, scope of work and the deliverables. He advised the deliverables AF consist of auditing the financial statements for the year ending December 31, 2018, assist with the preparation of the financial statements and prepare the IRS form 990 and CHAR 500. Mr. Stephens explained that we will provide a reasonable opinion on you financial statements, we do not check every transaction; we do a risk assessment. He advised we will consider the internal controls, but will not issue an opinion on the internal controls. Mr. Stephens advised that if anything comes up that is a weakness for deficiency; we will report that in our findings. He added that any other matters that come up or we need assistance; we will reach out to you. Mr. Stephens explained materiality and other terminology that may come up during the audit. He asked if the audit & finance committee had any questions or concerns. Mr. Strichman asked about the review of internal controls. Mr. Miller advised that we do this on a monthly basis when we review our financials and annually with the confidential board member evaluations. Mr. Bissember asked about the tolerable misstatement. Mr. Stephens advised that we put a quantitative figure on what we consider the level of materiality to be. He explained that we want to account for misstatements we are aware of and the ones we are unaware of. If it goes over this amount, we modify our opinion. The board asked if that amount is set on anything specific. Mr. Stephens advised that we did not set that amount yet. Mr. Ross asked about the staff. Mr. Stephens noted that there will be other staff working on the audit in the background, but the main staff is listed in the packet he handed out. Mr. Miller noted the timeframe and advised we have to have it adopted by March 31st. The board had a general discussion on the meeting timeframe. Mr. Stephens spoke about changes to GASBY and debt disclosures; noting that this board looks good. He advised that kick off meeting is today with the audit commencing on February 11th. 1  Thomas O’Donnell will be the lead auditor. Ms. Knoblauch asked that we amend the presentation to include a meeting during the first week of March. Steven Strichman made a motion to approve the auditor’s presentation with the amendment. Paul Carroll seconded the motion, motion carried. II. Adjournment With no additional business to discuss, the audit and finance committee meeting was adjourned at 10:42 a.m. Hon. Mark McGrath made a motion to adjourn the audit and finance committee meeting. Susan Farrell seconded the motion, motion carried. D R T AF 2  TROY CAPITAL RESOURCE CORPORATION Financial Statements and Supplementary Information December 31, 2018 and 2017 FT DRA TROY CAPITAL RESOURCE CORPORATION Financial Statements December 31, 2018 and 2017 Financial Statements Independent Auditor’s Report .................................................................................................... 1 Statements of Net Position ......................................................................................................... 4 Statements of Revenues, Expenses and Change in Net Position ............................................... 5 Statements of Cash Flows .......................................................................................................... 6 Notes to Financial Statements .................................................................................................... 7 Compliance Report FT Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with D Government Auditing Standards ........................................................................................... 11 RA Supplementary Information Schedule I – Schedule of Indebtedness .................................................................................... 13  INDEPENDENT AUDITOR’S REPORT To the Board of Directors Troy Capital Resource Corporation Troy, New York We have audited the accompanying financial statements of Troy Capital Resource Corporation (the "Corporation"), as of and for the years ended December 31, 2018 and 2017, and the related FT notes to the financial statements, which collectively comprise the Corporation’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 D 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 RA 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 auditors consider internal control relevant to the Corporation's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 1 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 opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Corporation as of December 31, 2018 and 2017, and the changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information FT Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not D affected by this missing information. RA Supplementary Information Our audit was conducted for the purpose of forming an opinion on the Corporation’s basic financial statements. The schedule of indebtedness is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The schedule of indebtedness is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE on our consideration of the Corporation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant 2 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 effectiveness of the Corporation’s 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 Corporation's internal control over financial reporting and compliance. East Greenbush, New York DATE FT DRA 3 TROY CAPITAL RESOURCE CORPORATION Statements of Net Position December 31, 2018 2017 ASSETS CURRENT ASSETS Cash and cash equivalents $ 427,154 $ 461,102 Accounts receivable 1,500 - TOTAL CURRENT ASSETS 428,654 461,102 NET POSITION Unrestricted $ 428,654 $ 461,102 FT DRA See accompanying notes to financial statements. 4 TROY CAPITAL RESOURCE CORPORATION Statements of Revenues, Expenses and Change in Net Position For the Year Ended December 31, 2018 2017 OPERATING REVENUES Project fees $ 1,500 $ 1,500 OPERATING EXPENSES Economic development 25,000 25,200 Professional fees 9,181 8,610 TOTAL OPERATING EXPENSES 34,181 33,810 OPERATING LOSS (32,681) (32,310) NON-OPERATING REVENUES Interest income FT TOTAL NON-OPERATING REVENUE CHANGE IN NET POSITION 233 233 (32,448) 42 42 (32,268) D NET POSITION, beginning of year RA NET POSITION, end of year $ 461,102 428,654 $ 493,370 461,102 See accompanying notes to financial statements. 4 TROY CAPITAL RESOURCE CORPORATION Statements of Cash Flows For the Year Ended December 31, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from project fees $ - $ 1,500 Refunds received from vendors - 75,000 Payments to vendors (34,181) (33,810) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (34,181) 42,690 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from interest income 233 42 FT NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of year (33,948) 461,102 42,732 418,370 D CASH AND CASH EQUIVALENTS AT END OF YEAR $ 427,154 $ 461,102 RA RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating loss Changes in operating assets: Accounts receivable Prepaid expenses $ (32,681) (1,500) - $ (32,310) - 75,000 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (34,181) $ 42,690 See accompanying notes to financial statements. 4 TROY CAPITAL RESOURCE CORPORATION Notes to Financial Statements December 31, 2018 and 2017 NOTE A--CORPORATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Troy Capital Resource Corporation (“TCRC” or the "Corporation") was created during 2009 under Section 1411 of the New York State Not-For-Profit Corporation Law. The Corporation, although established by the City Council of the City of Troy, New York (the “City”), is a separate public benefit corporation and operates independently of the City. TCRC was established to promote community and economic development for the citizens of the City by developing and providing programs to access low interest tax-exempt and non-tax- FT exempt financing for eligible projects and undertaking projects and activities within the City for the purpose of relieving and reducing unemployment, improving job opportunities, attracting new industry, or encouraging the development of, or retention of, industry in the City. In return for its efforts, TCRC receives application and closing fees related to this financing. Basis of Presentation D The Corporation’s financial statements are prepared using the accrual basis in accordance with accounting principles generally accepted in the United States of America. The Governmental RA Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The accounting and financial reporting treatment applied to TCRC is determined by its measurement focus. The transactions of TCRC are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operations are included on the statement of net position. Net position is classified into three components – net investment in capital assets; restricted; and unrestricted. These classifications are defined as follows: Net investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, notes, and other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are unspent debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of investment in capital assets, net of related debt. Rather that portion of the debt is included in restricted net position. 7 TROY CAPITAL RESOURCE CORPORATION Notes to Financial Statements--Continued NOTE A--CORPORATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Restricted net position: This component of net position represents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted net position: This component represents net position that does not meet the definition of "restricted net position”. When both restricted and unrestricted resources are available for use, it is the Corporation’s FT policy to use restricted resources first, then unrestricted resources as needed. The Corporation distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the Agency's principal on-going operations. All revenues and expenses that do not meet this definition are reported as non-operating revenues and expenses. D Use of Estimates The preparation of financial statements in conformity with generally accepted accounting RA principles in the United States of America (U. S. GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents TCRC considers as cash all demand deposits and all highly liquid investments which are readily convertible to cash. Receivables Accounts receivable are non-interest bearing and are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability based on a review of outstanding receivables, historical collection information and current economic conditions. In the opinion of Corporation management, all receivable balances are considered to collectible; accordingly, no allowance for doubtful accounts has been recorded. 8 TROY CAPITAL RESOURCE CORPORATION Notes to Financial Statements--Continued NOTE A--CORPORATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Financing Activities Revenue bonds issued by TCRC are collateralized by property that is leased to companies and is retired by lease payments. The bonds are not obligations of TCRC or the State of New York. TCRC does not record the assets or liabilities resulting from completed bond transactions in its accounts since its primary function is to arrange financing between borrowing companies and bond holders, and funds arising from those transactions are controlled by trustees or banks acting as fiscal agents. For providing this service, TCRC receives bond administration fees from the borrowing companies. Such administrative fee income is recognized immediately upon issuance of bonds. FT The outstanding balance of bonds issued totaled $398,730,000 and $408,010,000 at December 31, 2018 and 2017, respectively. Income Taxes The Corporation is exempt from Federal, State and Local income taxes. D Subsequent Events RA TCRC evaluates transactions that occur subsequent to year end for potential recognition or disclosure in the financial statements through the date on which the financial statements are available to be issued. The financial statements were approved by management and available to be issued on DATE. NOTE B--CASH AND CASH EQUIVALENTS TCRC’s investment policies are governed by New York State statutes. In addition, TCRC has its own written investment policy. TCRC is authorized to use demand deposit accounts, money market accounts, and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and those of New York State and its municipalities and school districts. All cash of TCRC is maintained in accounts covered by the Federal Deposit Insurance Corporation (FDIC). In accordance with state law, collateral is required for demand deposits and certificates of deposit not covered by FDIC insurance. TCRC’s uninsured deposits are collateralized by accounts held by the pledging financial institution agent in TCRC’s name. The total amount of collateralized uninsured deposits was approximately $177,000 for the year ended December 31, 2018. 9 TROY CAPITAL RESOURCE CORPORATION Notes to Financial Statements--Continued NOTE C--RELATED PARTY TRANSACTIONS City of Troy The City of Troy provides staff support and office space to TCRC without compensation. City of Troy Industrial Development Authority TCRC’s current Board of Directors is the same as that of the Troy Industrial Development Authority (Authority). TCRC reimbursed the Authority approximately $0 and $6,200 for its share of the annual license fee for a grants management software for the years ended December 31, 2018 and 2017, respectively. FT DRA 10  COMPLIANCE REPORT FT DRA  INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Troy Capital Resource Corporation Troy, New York FT We have audited, in accordance with the 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 financial statements of Troy Capital Resource Corporation (“TCRC” or the "Corporation"), which comprise the statement of net position as of December 31, 2018, and the related statements of revenues, expenses, and change in net position, and cash flows for the year then ended, and the D related notes to the financial statements, and have issued our report thereon dated DATE. RA Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Corporation's internal control over financial reporting (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 Corporation's internal control. Accordingly, we do not express an opinion on the effectiveness of the Corporation'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 entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 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 11 material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any 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 Corporation’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. 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and FT compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Corporation'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 Corporation's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. DRA East Greenbush, New York DATE 12  FT SUPPLEMENTARY INFORMATION DRA TROY CAPITAL RESOURCE CORPORATION Supplementary Information - Schedule of Indebtedness For the Year Ended December 31, 2018 Original Original Current Outstanding Outstanding Final Issuance Bond Interest Beginning of Issued During Paid During End of Maturity Project Date Issued Rate Fiscal Year Fiscal Year Fiscal Year Fiscal Year Date Rensselaer Polytechnic Institute 04/10 $ 311,630,000 5.08% $ 311,630,000 $ - $ - $ 311,630,000 09/40 Rensselaer Polytechnic Institute 06/10 47,180,000 5.08% 25,690,000 - 7,530,000 18,160,000 09/21 Rensselaer Polytechnic Institute 11/15 74,045,000 4.56% 70,690,000 - 1,750,000 68,940,000 08/35 $ 432,855,000 FT $ 408,010,000 $ - $ 9,280,000 $ 398,730,000 RA D See independent auditor's report 4  TROY CAPITAL RESOURCE CORPORATION Report to the Board For the Year Ended December 31, 2018 FT DRA DATE To the Board of Troy Capital Resource Corporation We have audited the financial statements of Troy Capital Resource Corporation (“TCRC”) for the year ended December 31, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated November 9, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters FT Qualitative Aspects of Accounting Practices D Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by TCRC are described in Note A to the financial statements. RA No new accounting policies were adopted and the application of existing policies was not changed during 2018. We noted no transactions entered into by TCRC during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no significant estimates affecting the financial statements. The financial statement disclosures are neutral, consistent and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 1 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no such misstatements. Disagreements with Management For the purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated DATE. FT Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to TCRC’s financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional D standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. RA Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as TCRC's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters Management has omitted the management’s discussion and analysis information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. We were engaged to report on the Schedule of Indebtedness which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain 2 inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records and other records used to prepare the financial statements or to the financial statements themselves. Restriction on Use This information is intended solely for the use of the Board of Directors and management of Troy Capital Resource Corporation and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, FT Wojeski & Company CPAs, P.C. DRA 3 Client: 005513.AUD - Troy Capital Resource Corporation Engagement: 18 AUD - Troy Capital Resource Corporation Trial Balance: 3000.01 - TB Workpaper: 3700.01 - Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 1 7100.01 Post close entry provided by client - RPI admin fee 380 Accounts Receivable 1,500.00 2117 Administrative Fee 1,500.00 Total 1,500.00 1,500.00 Adjusting Journal Entries JE # 2 7100.01 To adjust the DRI income that was actually a reimbursement from Ren. County. 2000 DRI Income 10,000.00 409.4 DRI App Preparation 10,000.00 Total 10,000.00 10,000.00 1 of 3  3/15/2019 10:57 AM Client: 005513.AUD - Troy Capital Resource Corporation Engagement: 18 AUD - Troy Capital Resource Corporation Trial Balance: 3000.01 - TB Workpaper: 3600.01 - Financial Statement Grouping Report Account Description UNADJ JE Ref # AJE ADJ JE Ref # RJE FINAL 1st PP-FINAL 12/31/2018 12/31/2018 12/31/2018 12/31/2017 Group : [4100] Cash & Equivalents Subgroup : [4100.00] Cash and Equivalents 200 Cash 342,864.00 0.00 342,864.00 0.00 342,864.00 377,045.00 201 Money Market Savings 84,290.00 0.00 84,290.00 0.00 84,290.00 84,057.00 Subtotal [4100.00] Cash and Equivalents 427,154.00 0.00 427,154.00 0.00 427,154.00 461,102.00 Total [4100] Cash & Equivalents 427,154.00 0.00 427,154.00 0.00 427,154.00 461,102.00 Group : [4200] Receivables Subgroup : [4200.00] Accounts Receivable 380 Accounts Receivable 0.00 1,500.00 1,500.00 0.00 1,500.00 0.00 AJE - 1 1,500.00 Subtotal [4200.00] Accounts Receivable 0.00 1,500.00 1,500.00 0.00 1,500.00 0.00 Total [4200] Receivables 0.00 1,500.00 1,500.00 0.00 1,500.00 0.00 Current Assets 427,154.00 1,500.00 428,654.00 0.00 428,654.00 461,102.00 Non-Current Assets 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL ASSET 427,154.00 1,500.00 428,654.00 0.00 428,654.00 461,102.00 Current Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 Non-Current Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL LIABILITY 0.00 0.00 0.00 0.00 0.00 0.00 Group : [6100] Equity Subgroup : [6100.00] Unrestricted Net Assets 924 924 -+ Retained Earnings (461,102.00) 0.00 (461,102.00) 0.00 (461,102.00) (493,370.00) Subtotal [6100.00] Unrestricted Net Assets (461,102.00) 0.00 (461,102.00) 0.00 (461,102.00) (493,370.00) Total [6100] Equity (461,102.00) 0.00 (461,102.00) 0.00 (461,102.00) (493,370.00) Equity (461,102.00) 0.00 (461,102.00) 0.00 (461,102.00) (493,370.00) NET (INCOME) LOSS 33,948.00 (1,500.00) 32,448.00 0.00 32,448.00 32,268.00 TOTAL EQUITY (427,154.00) (1,500.00) (428,654.00) 0.00 (428,654.00) (461,102.00) TOTAL LIABILITY AND EQUITY (427,154.00) (1,500.00) (428,654.00) 0.00 (428,654.00) (461,102.00) Group : [7100] Revenue Subgroup : [7100.00] Project fees 2117 Administrative Fee 0.00 (1,500.00) (1,500.00) 0.00 (1,500.00) (1,500.00) AJE - 1 (1,500.00) Subtotal [7100.00] Project fees 0.00 (1,500.00) (1,500.00) 0.00 (1,500.00) (1,500.00) Subgroup : [7100.35] Other Income 2000 DRI Income (10,000.00) 10,000.00 0.00 0.00 0.00 0.00 AJE - 2 10,000.00 1 of 4  3/15/2019 10:57 AM Client: 005513.AUD - Troy Capital Resource Corporation Engagement: 18 AUD - Troy Capital Resource Corporation Trial Balance: 3000.01 - TB Workpaper: 3600.01 - Financial Statement Grouping Report Account Description UNADJ JE Ref # AJE ADJ JE Ref # RJE FINAL 1st PP-FINAL 12/31/2018 12/31/2018 12/31/2018 12/31/2017 Subtotal [7100.35] Other Income (10,000.00) 10,000.00 0.00 0.00 0.00 0.00 Total [7100] Revenue (10,000.00) 8,500.00 (1,500.00) 0.00 (1,500.00) (1,500.00) Revenues (10,000.00) 8,500.00 (1,500.00) 0.00 (1,500.00) (1,500.00) Group : [7400] Non-operating Rev & Exp Subgroup : [7400.05] Interest Income 2401 Interest Earnings (233.00) 0.00 (233.00) 0.00 (233.00) (42.00) Subtotal [7400.05] Interest Income (233.00) 0.00 (233.00) 0.00 (233.00) (42.00) Total [7400] Non-operating Rev & Exp (233.00) 0.00 (233.00) 0.00 (233.00) (42.00) Other Income (233.00) 0.00 (233.00) 0.00 (233.00) (42.00) TOTAL REVENUE (10,233.00) 8,500.00 (1,733.00) 0.00 (1,733.00) (1,542.00) Group : [7300] General and Administrative Subgroup : [7300.01] Professional Fees 409.1 Legal 1,589.00 0.00 1,589.00 0.00 1,589.00 1,524.00 409.2 Auditing/Accounting 7,592.00 0.00 7,592.00 0.00 7,592.00 7,086.00 Subtotal [7300.01] Professional Fees 9,181.00 0.00 9,181.00 0.00 9,181.00 8,610.00 Subgroup : [7300.03] Grants - Economic Development 6462.4 Grants 15,000.00 0.00 15,000.00 0.00 15,000.00 25,200.00 Subtotal [7300.03] Grants - Economic Development 15,000.00 0.00 15,000.00 0.00 15,000.00 25,200.00 Subgroup : [7300.04] DRI Grants 409.4 DRI App Preparation 20,000.00 (10,000.00) 10,000.00 0.00 10,000.00 0.00 AJE - 2 (10,000.00) Subtotal [7300.04] DRI Grants 20,000.00 (10,000.00) 10,000.00 0.00 10,000.00 0.00 Total [7300] General and Administrative 44,181.00 (10,000.00) 34,181.00 0.00 34,181.00 33,810.00 Operating Expenses 44,181.00 (10,000.00) 34,181.00 0.00 34,181.00 33,810.00 TOTAL EXPENSE 44,181.00 (10,000.00) 34,181.00 0.00 34,181.00 33,810.00 NET (INCOME) LOSS 33,948.00 (1,500.00) 32,448.00 0.00 32,448.00 32,268.00 Sum of Account Groups 0.00 0.00 0.00 0.00 0.00 0.00 2 of 4