Wilkinson County, Georgia. Annual Financial Report

Transcription

1 Wilkinson County, Georgia Annual Financial Report For the Year Ended September 30, 2014

2 ANNUAL FINANCIAL REPORT Issued by: David Franks, County Manager under Authority of the Board of Commissioners

3 ANNUAL FINANCIAL REPORT Exhibit Page INDEPENDENT AUDITORS' REPORT... 1 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet Governmental Funds Reconciliation of Net Position Governmental Funds in the Statement of Net Position to Total Fund Balance Governmental Funds on the Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues and Expenditures Compared with Budget General Fund Fiduciary Funds Financial Statements: Statement of Fiduciary Assets and Liabilities Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Funding Progress - Pension Schedule of Funding Progress OPEB Combining Balance Sheet Non-major Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-major Governmental Funds Budgetary Comparison: Emergency 911 Fund Law Library Fund Family Connection Fund Law Enforcement Confiscation Fund Drug Abuse Education Fund Jail Fund Agency Funds - Combining Statement of Fiduciary Net Assets SINGLE AUDIT: 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 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance in Accordance with OMB Circular A Schedule of Expenditures of Federal Awards Note to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs OTHER INFORMATION: Schedule of Expenditures of Special Purpose Local Option Sales Tax

4 Financial Section

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6 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. 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, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Wilkinson County, Georgia, as of September 30, 2014, and the respective changes in financial position, the respective budgetary comparison for the General Fund and, where applicable, cash flows thereof for the year 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 budgetary comparison information on pages 10 to 13 be presented to supplement the basic financial statements. Such information, although not a 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 audit 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. Management has omitted the Management s Discussion and Analysis that accounting principles accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a 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

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8 Basic Financial Statements

9 STATEMENT OF NET POSITION AS OF SEPTEMBER 30, 2014 EXHIBIT 1 Primary Government Component Units Governmental Development Board of Activities Authority Health Assets Cash and cash equivalents $ 2,954,194 $ 202,005 $ 490,214 Certificates of deposit 3,509, Receivables, net of allowances for uncollectible: Taxes 402, Accounts 9, Intergovernmental 252,580 2,000 17,013 Accrued interest 13, Other 133, Prepaid items 102, Inventory 20, Capital assets: Land and other non-depreciable assets 328,857 2,030,314 - Other capital assets, net of depreciation 12,236,628 31,849 - Total assets 19,964,740 2,266, ,227 Liabilities Accounts payable 95,447 7,038 2,049 Accrued expenses 96,045 1,224 - Intergovernmental payable ,034 Long-term obligations: Due within one year 86, ,945 3,692 Due in more than one year 113,914-25,764 Total liabilities 392, ,207 45,539 Net Position Net investment in capital assets 11,191,292 1,774,218 - Reserved for prepaid expenditures 102, Restricted for: Capital projects 1,001, Public safety 85, Balls Ferry 21,761 Law library 4, Other purposes Unrestricted 7,165, , ,688 Total Net Position $ 19,572,437 $ 1,969,961 $ 461,688 The Accompanying Notes to the Financial Statements are an integral part of this statement - 4 -

10 STATEMENT OF ACTIVITIES EXHIBIT 2 Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government Component Units Operating Capital Charges for Grants and Grants and Governmental Development Board of Functions/Programs Expenses Services Contributions Contributions Activities Authority Health Primary Government Governmental Activities: General government $ 2,747,778 $ 340,856 $ 58,350 $ - $ (2,348,572) $ - $ - Public safety 2,276, ,343 9,927 - (1,761,708) - - Judicial 648,959 5,269-53,626 (590,064) - - Public works 2,857,658 18, ,667 (1,867,152) - - Health and welfare 810,125 8, ,784 - (607,561) - - Culture and recreation 1,015,133 47, ,941 (271,172) - - Economic development 66, (66,530) - - Interest on long-term debt 24, (24,076) - - Total governmental activities 10,447, , ,061 1,722,234 (7,536,835) - - Total primary government $ 10,447,237 $ 926,107 $ 262,061 $ 1,722,234 (7,536,835) - - Component Units Wilkinson County Development Authority $ 95,500 $ - $ 126,816 $ ,316 - Wilkinson County Board of Health 442, , , ,087 Total component units $ 538,455 $ 130,786 $ 450,072 $ ,316 11,087 General revenues: Property taxes 4,133, Sales tax 1,643, Energy excise tax 433, Insurance premium tax 218, Other taxes 696, Unrestricted investment earnings 29, ,751 Miscellaneous 233,088 1,250 - Loss on disposal of capital assets (228,166) - - Insurance proceeds 439, Total general revenues 7,601,438 1,488 1,751 Change in net position 64,603 32,804 12,838 Net position - beginning 19,507,834 1,937, ,850 Net position - ending $ 19,572,437 $ 1,969,961 $ 461,688 The Accompanying Notes to the Financial Statements are an integral part of this statement - 5 -

11 BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 EXHIBIT 3 Other Total 2007 SPLOST Governmental Governmental General Fund Funds Funds ASSETS Cash and cash equivalents $ 1,938,526 $ 455,567 $ 560,101 $ 2,954,194 Certificates of deposit 3,509, ,509,905 Receivables, net of allowances for uncollectibles: Taxes 402, ,820 Accounts - - 9,349 9,349 Intergovernmental 125, , ,580 Accrued Interest 13, ,922 Others 62,225 71, ,933 Due from other funds 79, ,352 Prepaid expenditures 102, ,462 Inventory 20, ,090 Total Assets $ 6,254,797 $ 527,275 $ 696,535 $ 7,478,607 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 72,590 $ 21,277 $ 1,580 $ 95,447 Accrued expenses 87,887-8,158 96,045 Due to other funds ,352 79,352 Unavailable revenues 330, ,794 Total liabilities 491,271 21,277 89, ,638 Fund Balances: Nonspendable for prepaid expenditures 102, ,462 Nonspendable for inventory 20, ,090 Restricted for: Capital projects - 505, ,638 1,001,636 Public safety ,322 85,322 Balls Ferry ,761 21,761 Law Library - - 4,705 4,705 Other purposes Unassigned 5,640, ,640,974 Total fund balances 5,763, , ,445 6,876,969 Total Liabilities and Fund Balances $ 6,254,797 $ 527,275 $ 696,535 $ 7,478,607 The Accompanying Notes to the Financial Statements are an integral part of this statement - 6 -

12 RECONCILIATION OF NET POSITION GOVERNMENTAL FUNDS IN THE STATEMENT OF NET POSITION TO TOTAL FUND BALANCE GOVERNMENTAL FUNDS ON THE BALANCE SHEET EXHIBIT 4 Fund balance - total governmental funds $ 6,876,969 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 12,565,485 Post employment pension benefits used in governmental activities are not financial resources and therefore are not reported in the funds. (30,460) Other post employment benefits used in governmental activities are not financial resources and therefore are not reported in the funds. (113,622) Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 330,794 Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds - Compensated absences (56,729) Net position of governmental activities $ 19,572,437 The Accompanying Notes to the Financial Statements are an integral part of this statement - 7 -

13 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS EXHIBIT 5 Other Total 2007 SPLOST Governmental Governmental General Fund Funds Funds Revenues: Taxes: Property tax $ 4,131,092 $ - $ - $ 4,131,092 Sales tax 757, , ,426 2,242,125 Energy excise tax 804, ,525 Insurance premium tax 218, ,974 Other taxes 672,946 14,276 9, ,959 Licenses and permits 9, ,246 Intergovernmental revenues 542,909 49,248 1,387,760 1,979,917 Charges for services 500,027-57, ,222 Fines and forfeitures 303,310-56, ,639 Other revenues 236,220 4,315 2, ,333 Total revenues 8,176, ,281 2,231,245 11,243,032 Expenditures: Current: General government 2,533,447 43,337-2,576,784 Public safety 1,636,868 87, ,526 1,999,339 Judicial 628,978-9, ,689 Public works 2,549, ,549,798 Health and welfare 726,498-47, ,626 Culture and recreation 119, , ,708 Economic development 66, ,530 Payments to other governmental agencies 370, , , ,169 Debt Service: Principal payments - 735, ,000 Interest payments - 28,812-28,812 Capital outlay 390, , ,063 1,700,766 Total expenditures 9,022,458 1,869,823 2,141,940 13,034,221 Excess (Deficiency) of Revenues Over (Under) Expenditures (845,952) (1,034,542) 89,305 (1,791,189) Other Financing Source (Use): Transfers in , ,531 Transfers out (188,531) - - (188,531) Insurance proceeds 412, ,959 Proceeds from sales of capital assets 42, ,453 Total other financing source (use) 266, , ,412 Net change in fund balances (579,071) (1,034,542) 277,836 (1,335,777) Fund balances - beginning 6,342,597 1,540, ,609 8,212,746 Fund balances - ending $ 5,763,526 $ 505,998 $ 607,445 $ 6,876,969 The Accompanying Notes to the Financial Statements are an integral part of this statement - 8 -

14 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES EXHIBIT 6 Net change in fund balances - total governmental funds $ (1,335,777) Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays, reported as expenditures in governmental funds, are shown as capital assets in the Statement of Net Position. 1,700,766 Depreciation expenses on governmental capital assets are included in the governmental activities column in the Statement of Net Position but are not shown in the governmental funds. (782,804) Bond issuance costs are reported in the government-wide statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (10,469) Post employment pension benefits are reported in the government-wide statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (5,288) Other post employment benefits are reported in the government-wide statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (20,522) In the Statement of Activities, only the gain on the disposal of capital assets is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the assets disposed of. (278,769) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued interest payable 4,736 Compensated absences (3,604) Repayment of long-term debt is reported as an expenditure in the governmental funds, but as a reduction of long-term liabilities in the Statement of Net Position. 735,000 Revenues in the statement of activities that do not provide financial resources are not reported as revenues in the funds. The amount of deferred revenues recognized as revenue in the statement of activities is as follows: Property taxes 2,841 Other revenues 58,493 Change in net position of governmental activities $ 64,603 The Accompanying Notes to the Financial Statements are an integral part of this statement - 9 -

15 EXHIBIT 7 GENERAL FUND PAGE 1 OF 4 STATEMENT OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET Revenues: Variance with Budgeted Amounts Actual Final Budget - Original Final Amounts Positive (Negative) Taxes Revenues: General property taxes $ 4,040,000 $ 4,040,000 $ 4,131,092 $ 91,092 Local option sales tax 720, , ,257 37,257 Energy excise tax 640, , ,525 4,525 Insurance premium tax 210, , ,974 8,974 Other taxes: Beer and wine tax 8,000 8,000 8, Real estate transfer tax 3,000 3,000 4,773 1,773 Timber tax 45,000 45,000 70,835 25,835 Recording intangibles tax 10,000 10,000 8,508 (1,492) Vehicles and mobile homes 407, , ,339 4,339 Financial institution tax 22,000 22,000 18,545 (3,455) Railroad equipment 25,000 25,000 26,550 1,550 Other tax 1,200 1,200 4,274 3,074 Total taxes revenues 6,131,200 6,411,200 6,584, ,594 Licenses and permits: Beer and wine 1,020 1,020 1,020 - Occupation tax 6,000 6,000 6, Other ,049 1,499 Total licenses and permits 7,570 7,570 9,246 1,676 Intergovernmental Revenues: Federal grants: Rural transit fee reimbursement 56,000 56,000 77,943 21,943 Senior citizens 76,000 76,000 70,952 (5,048) State grants: Department of Transportation - 325, , Forest land protection grant 22,000 22,000 58,350 36,350 EMA Grant - - 5,000 5,000 Juvenile Court Grant Georgia Inmate Board 10,000 10,000 4,075 (5,925) Total intergovernmental revenues 164, , ,909 53,909 The Accompanying Notes to the Financial Statements are an integral part of this statement

16 EXHIBIT 7 GENERAL FUND PAGE 2 OF 4 STATEMENT OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET Charges for Services: Variance with Budgeted Amounts Actual Final Budget - Original Final Amounts Positive (Negative) Tax Commissioner - cost, fees and commissions 288, , ,610 43,310 Public transit fees 8,500 8,500 8, Streets and sanitation 9,000 9,000 13,986 4,986 Pipe installations 1,500 1,500 4,853 3,353 Recreation - 45,000 47,020 2,020 Resource officer 68,000 68,000 53,090 (14,910) Commissary - 35,000 38,738 3,738 Other - - 1,950 1,950 Total charges for services 375, , ,027 44,727 Fines and Forfeitures: Sheriffs costs and fees 37,100 37,100 85,128 48,028 Superior Court 90,640 90, ,388 19,748 Probate Court 87,420 87,420 81,334 (6,086) Magistrate Court 25,000 25,000 26,150 1,150 Juvenile Court (390) Total fines and forefeitures 240, , ,310 62,450 Other Revenues: Interest earnings 12,543 12,543 28,002 15,459 Rents ,100 1,800 Highway 57 landfill site 59,000 59,000 31,915 (27,085) Annual landfill payment 50,000 50,000 50,000 - Tonnage sales 90,000 90,000 99,591 9,591 Miscellaneous 6,702 6,702 24,612 17,910 Total other revenues 218, , ,220 17,675 Total Revenues $ 7,137,475 $ 7,822,475 8,176,506 $ 354,031 The Accompanying Notes to the Financial Statements are an integral part of this statement

17 EXHIBIT 7 GENERAL FUND PAGE 3 OF 4 STATEMENT OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET Variance with Budgeted Amounts Actual Final Budget - Original Final Amounts Positive (Negative) General Government: Board of commissioners $ 1,553,871 $ 1,623,871 1,621,377 $ 2,494 Tax commissioner's office 201, , ,899 1,314 Tax assessor's office 210, , , Tax equalization office 5,651 5,651 1,632 4,019 Registrars 91,356 91,356 90, Public buildings 267, , ,676 1,257 County extension service 36,871 36,871 31,530 5,341 Coroner's office 30,879 33,879 32, Forestry department 27,191 27,191 26, Total General Government 2,425,355 2,754,355 2,737,326 17,029 Public Safety: Sheriff's office 943, , ,461 1,227 Commissary - 40,000 37,695 2,305 Jail operations 537, , ,678 2,745 Total Public Safety 1,481,111 1,687,111 1,680,834 6,277 Judicial: Superior Court 363, , ,900 9,708 Probate Court 147, , , Magistrate Court 131, , ,624 5,403 Total Judicial 642, , ,978 15,127 Public Works: Roads and bridges 837,850 2,287,850 2,276,970 10,880 Public transit 135, , , Streets and sanitation 213, , ,379 1,235 Total Public Works 1,187,123 2,697,123 2,684,515 12,608 The Accompanying Notes to the Financial Statements are an integral part of this statement

18 EXHIBIT 7 GENERAL FUND PAGE 4 OF 4 STATEMENT OF REVENUES AND EXPENDITURES COMPARED WITH BUDGET Variance with Budgeted Amounts Actual Final Budget - Original Final Amounts Positive (Negative) Health and Welfare: Emergency management 39,893 46,893 45,038 1,855 Ambulance - service contract 384, , ,000 1,000 Ambulance - other operating 18,600 18,600 16,570 2,030 Paws and Claws 6,000 10,000 10,000 - Senior Citizens Center 113, , ,040 6,726 Wilkinson County Board of Health 151, , ,250 - Department of Family and Children Services 21,600 21,600 21,600 - Total Health and Welfare 735, , ,498 11,611 Culture and Recreation: Library 25,000 25,000 25,000 - Recreation department 59,980 94,980 94, Total Culture and Recreation 84, , , Economic Development - Wilkinson County Development Authority 62,252 67,252 66, Payment to Other Governmental Agencies 300, , ,608 1,392 Total Expenditures 6,918,035 9,088,035 9,022,458 65,577 Excess (Deficiency) of Revenues Over (Under) Expenditures 219,440 (1,265,560) (845,952) 419,608 Other Financing Source (Use): Transfer out (219,440) (219,440) (188,531) 30,909 Insurance proceeds - 412, , Proceeds from sale of capital assets - 42,000 42, Total Other Financing Source (Use) (219,440) 234, ,881 32,321 Deficiency of Revenues and Other Financing Sources Under Expenditures and Other Financing Use - (1,031,000) (579,071) 451,929 Fund Balance, Beginning 6,342,597 6,342,597 6,342,597 - Fund Balance, Ending $ 6,342,597 $ 5,311,597 5,763,526 $ 451,929 The Accompanying Notes to the Financial Statements are an integral part of this statement

19 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS SEPTEMBER 30, 2014 EXHIBIT 8 Agency Funds ASSET Cash $ 409,670 LIABILITY Other liabilities $ 409,670 The Accompanying Notes to the Financial Statements are an integral part of this statement

20 NOTES TO THE FINANCIAL STATEMENTS I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Wilkinson County, Georgia (the County) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to Government units. The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements. The more significant accounting policies established in GAAP and used by the County are described below. A. Reporting Entity The County is a local municipality governed by an elected five-member Board of Commissioners. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the governments operations. The component unit column in the government-wide financial statements (see note below for description) includes the financial data of the County s discretely presented component units. Each discretely presented component unit is reported in a separate column to emphasize it is legally separate from the County. Component Units and Related Entities Blended Component Unit - The Wilkinson County Law Library, an entity separate from the County, is governed by a Board of Trustees. For financial reporting purposes, the Law Library is reported as if it were part of the County s operations because it functions primarily for the courts of the County. The Law Library does not issue separate financial statements. All property purchased with funds expended by the Law Library become the property of Wilkinson County. Discretely Presented Component Units: Wilkinson County Development Authority The Wilkinson County Commissioners appoint the members for the Authority. The Authority is charged with promoting and expanding industry and trade within Wilkinson County. The Authority receives revenue from appropriations from the County. The Authority has a fiscal year ended December 31, The Authority is fiscally dependent on the County. Complete financial statements can be obtained from the Wilkinson County Clerk. Wilkinson County, Georgia PO Box 161 Irwinton, GA Wilkinson County Health Department - The Wilkinson County Public Health Center (the Center) provides various health services for citizens in Wilkinson County under a contract with the Georgia Department of Human Resources (DHR). The Wilkinson County Commissioners appoint the majority of the members for the governing body of the Center. The County Commissioners have the authority to remove appointed members of the governing board at will, and the power to disapprove the Center s operating budget. The Center receives revenue through a contractual agreement with DHR as well as from Wilkinson County, Georgia. The Center has a fiscal year ended June 30, Complete financial statements can be obtained at the entity s administrative office. Wilkinson County Public Health Center 123 High Hill Street Irwinton, GA

21 NOTES TO THE FINANCIAL STATEMENTS B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are supported by taxes and intergovernmental revenues and are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customer or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they will be collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the Government. The County reports the following major governmental funds: The General Fund is the general operating fund of Wilkinson County, Georgia. It is used to account for all financial resources of the general government, except those required legally or by sound financial management to be accounted for in another fund. The 2007 SPLOST Fund accounts for the accumulation of SPLOST proceeds and payment of general obligation bond principal and interest

22 NOTES TO THE FINANCIAL STATEMENTS Additionally, the County reports the following fund types: The Special Revenue Funds account for revenue sources that are legally restricted to expenditure for specific purposes. The following Special Revenue Funds are used by Wilkinson County, Georgia: Drug Abuse Education, Family Connection, Law Library, Law Enforcement Confiscation, Emergency 911 and the Jail Fund. The Capital Projects Funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. The following Capital Projects Funds are used by the County: Special Purpose Local Option Sales Tax 2003, Special Purpose Local Option Sales Tax 2013, LMIG and Balls Ferry. The Agency Funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. These funds are used to account for assets that the Government holds for others in an agency capacity. GASB 34 eliminates the presentation of Account Groups, but provides for these records to be maintained and used to account for capital assets and long-term liabilities that are not reflected on the balance sheet of Governmental type funds due to the current financial resources measurement focus that they use. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The County has elected not to follow subsequent private-sector guidance. Governmental activities have been consolidated in the government-wide financial statements. Total governmental funds have been combined with general fixed assets and long term liabilities. The effect of interfund activity has been removed from the government-wide financial statements. Due to/from other funds have been eliminated as well as operating transfers between funds. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund s principal ongoing operations. Non-operating revenues and expenses are revenues and expenses associated with items that are not connected with a proprietary s fund principal ongoing operations. When both restricted and unrestricted resources are available for use, it is the Government s policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities and Net Position or Equity 1. Deposits and Investments - Cash includes amounts in both interest-bearing and non-interest-bearing demand deposits. State statutes authorize the Government to invest in obligations of the U.S. Treasury, obligations of the State of Georgia or any other states, obligations fully insured or guaranteed by the United States government or governmental agency, Local Government Investment Pool, commercial paper, corporate bonds, obligation of other political subdivisions of the State of Georgia, and repurchase agreements. Any bank deposit in excess of the total FDIC insured amount must be secured by an equivalent amount of State or U.S. obligations. Investments are recorded at cost or amortized cost plus accrued interest, which approximates market value. For purposes of the statement of cash flows, the proprietary funds consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents

23 NOTES TO THE FINANCIAL STATEMENTS 2. Receivables and Payables - During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The current portion of these interfund receivables and payables are classified as "due from other funds" or "due to other funds" in the governmental funds. Property tax receivables are shown net of an allowance for uncollectibles. The property tax receivable allowance is equal to 20 percent of outstanding property taxes at September 30, Property taxes are levied as of January 1 on property values assessed as of the same date. 3. Prepaid Items - For prepaid expenditures in the government-wide and fund financial statements, the County reports the expenditures during the benefiting period. 4. Inventories Inventories of expendable supplies held for consumption are not considered material and are recorded as expenditures, or expenses, as appropriate, when purchased. Inventory in the General Fund consists of fuel, which is priced at cost using the First-In First-Out method. 5. Capital Assets Capital assets, which include property, plant equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the Government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. General infrastructure assets acquired prior to July 1, 2003 are not reported in the basic financial statements. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Major outlays for capital assets and improvements are capitalized as projects are constructed. GASB statement 37 prohibits the capitalization of interest on assets constructed for use in governmental activities. However, interest from debt not considered to be general long-term debt may be included as part of the cost of assets constructed for business-type activities. The total interest expense incurred by the County during the current fiscal year was $51,811. Of this amount, $- 0- was included as part of the cost of capital assets under construction in connection with public building construction projects. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings and improvements Vehicles 5 Equipment 3-10 Roads 30 Infrastructure Compensated Absences - It is the Government s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Government does not have a policy to pay any amounts when employees separate from service with the Government. All vacation pay is accrued when incurred in the government-wide, proprietary and fiduciary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements

24 NOTES TO THE FINANCIAL STATEMENTS 7. Long-term Obligations - In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund Equity Fund equity at the governmental fund financial reporting level is classified as fund balance. Fund equity for all other reporting is classified as net position. Fund Balance Generally, fund balance represents the difference between the assets and liabilities under the current financial resources measurement focus of accounting. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in the those funds can be spent. Fund balances are classified as follows: Nonspendable Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in spendable form (i.e., items that are not expected to be converted to cash) or (b) legally or contractually required to be maintained intact. Restricted Fund balances are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Committed Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Commissioners through the adoption of a resolution. Only the Board of Commissioners may modify or rescind the commitment. Assigned Funds balances are reported as assigned when amounts are constrained by the County s intent to be used for specific purposes, but are neither restricted nor committed. Through resolution, the County Commissioners can authorize a designee to assign fund balance. Unassigned Fund balances are reported as unassigned when the balances do not meet any of the above criterion. The County reports positive unassigned fund balance only in the General Fund. Negative unassigned fund balances may be reported in all funds. The County uses restricted amounts to be spent when both restricted and unrestricted fund balances are available, unless there are legal documents/contracts that prohibit the use of restricted fund balances, such as grant agreements that require a dollar match. Additionally, the County would then use committed, assigned and lastly, unassigned amounts from the unrestricted fund balances when expending funds. Net Position Net investment in capital assets This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction or improvement of the assets. Restricted net position This amount is restricted by external creditors, grantors, contributors or laws or regulations of other governments

25 NOTES TO THE FINANCIAL STATEMENTS Unrestricted net position This amount is all net position that do not meet the definition of net investment in capital assets or restricted net position. 9. Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 10. Bond Discounts/Issuance Costs In governmental fund types, bond discounts ad issuance costs are recognized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using the straight-line method. Bond discounts are presented as a reduction of the face amount of the bonds payable, whereas issuance costs are recorded as deferred charges. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgets and Budgetary Accounting Prior to the fiscal year end, the Commission prepares a proposed operating budget for the year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. The Commission holds a public hearing on the budget, giving notice thereof at least ten days in advance by publication in the official organ of Wilkinson County. The budget is then revised and adopted or amended by the Commission shortly after the beginning of the year to which it applies. The budget so adopted may be revised during the year only by formal action of the Commission in a regular meeting and no increase shall be made therein without provision also being made for financing same. The budget for the General Fund is adopted on a basis consistent with generally accepted accounting principles (GAAP) inasmuch as encumbrances are not recorded. Budgeted amounts for the year include amounts as originally adopted as well as amendments approved by the Commission. The County Manager is delegated to transfer sums within departments. No increases in the departmental budgets for the County may be made without the approval of the Board of Commissioners and amendments to the budget. The General Fund is subject to budgetary control on a departmental basis. III. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Investments The Government owns no investments as of September 30, Custodial Credit Risk - Deposits In the case of deposits, this is the risk that in the event of a bank failure, the government s deposits may not be returned to it. Neither the government, nor the Wilkinson County Development Authority, discretely presented component unit, has a deposit policy for custodial credit risk. The Wilkinson County Public Health Center has a deposit policy. As of September 30, 2014, none of the Government s bank balance was exposed to custodial credit risk. Additional disclosures with regards to deposits and investments can be located in the Summary of Significant Accounting Policies under the Assets, Liabilities and Equity section. B. Property Taxes State law requires that property taxes be based on assessed value, which is 40% of fair market value. All real and personal property (including motor vehicles) are valued as of January 1 of each year and must be declared and reported on a return for tax purposes by March 1. With the exception of motor vehicles and the property of public utilities, which are valued by the State Revenue Department, the Board of Tax Assessors of Wilkinson County makes all assessments

26 NOTES TO THE FINANCIAL STATEMENTS Upon completion of all assessments and tax returns, the information is turned over to the Wilkinson County Tax Commissioner for compilation of the tax digest. The completed tax digest must be submitted to the State Revenue Commissioner for approval. The State Revenue Commissioner must ascertain that real property on the tax digest has been assessed at the state mandated forty percent (40%) of fair market value. If not, the Commissioner may require an across the board percentage adjustment to all real property. The County Tax Commissioner distributes tax notices and collects tax payments. Motor vehicle taxes must be paid by the birth date of the owner of the vehicle. Property taxes are usually levied on assessed valuation as of January 1. The bills were mailed (levied) as of November 20, 2013, with a due date of January 20, Property taxes are attached as an enforceable lien on the day the taxes become delinquent. The total real and personal property tax levy is recorded as revenue in the fiscal year in which such amounts will be available (collected within 60 days of year-end) as net current assets. In the accompanying financial statements, the portion of the property tax levy for the tax year 2013 collected during the current year and within 60 days of year-end has been recognized as revenue. Property taxes receivable at September 30, 2014, is composed of the following: Year of Levy: 2014 $ 91, , , , , ,320 Prior to ,582 Total 485,250 Less - allowance for uncollectible 82,430 Net receivable $ 402,820 C. Accounts Receivable Primary Government Receivables at September 30, 2014 for the County s individual major funds and its non-major and fiduciary funds in the aggregate, including applicable allowances for uncollectible accounts, are as follows: Nonmajor General SPLOST 2007 Funds Total Receivables: Taxes $ 485,250 $ - $ - $ 485,250 Accounts - - 9,349 9,349 Intergovernmental 125, , ,580 Accrued interest 13, ,922 Other 62,225 71, ,933 Gross receivables 686,892 71, , ,034 Less: allowance for uncollectibles (82,430) - - (82,430) Net total receivables $ 604,462 $ 71,708 $ 136,434 $ 812,

27 NOTES TO THE FINANCIAL STATEMENTS Discretely Presented Component Units Trade receivables from the Wilkinson County Development Authority and Wilkinson County Public Health Center as of September 30, 2014 are as follows: Wilkinson County Wilkinson County Development Public Health Authority Center Total Receivables: Accounts $ - $ - $ - Intergovernmental 2,000 17,013 19,013 Gross receivables 2,000 17,013 19,013 Less - allowance for Uncollectibles Net total receivables $ 2,000 $ 17,013 $ 19,013 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Grant drawdowns not yet available $ - $ - Resources received, but not yet earned $ - $ - D. Interfund Receivables, Payables and Transfers Generally, outstanding balances between funds reported as due to/from other funds include outstanding charges by one fund to another for services or goods, subsidy commitments outstanding, and other miscellaneous receivables and payables between funds. Balances to which a fiduciary fund is a party are treated as external receivables and payables. As of September 30, 2014, the composition of interfund balances, were as follows: Due From Due To Major Fund - General Fund $ 79,352 $ - Non-major Funds: Balls Ferry - 51,000 Drug Abuse Education - 1,240 Family Connection - 18,555 Emergency 911-8,557 $ 79,352 $ 79,352 Transfers and payments within the reporting entity are substantially for the purposes of subsidizing operating functions, funding capital projects and asset acquisitions, or maintaining debt service. Resources are accumulated in a fund or component unit to support and simplify the administration of various projects or programs

28 NOTES TO THE FINANCIAL STATEMENTS A reconciliation of transfers is as follows: Transfers Out Transfers In General Fund $ 188,531 $ - Emergency 911 Fund - 188,531 Total interfund transfers $ 188,531 $ 188,531 E. Capital Assets Primary Government Capital asset activity for the year ended September 30, 2014 was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated - Land $ 328,857 $ - $ - $ 328,857 Total capital assets not being depreciated 328, ,857 Other capital assets: Buildings 9,229, ,580 (260,770) 9,440,791 Vehicles 2,517, ,331 (167,907) 2,707,353 Machinery and equipment 2,959, ,363 (76,486) 3,144,811 Infrastructure 5,004, ,492-5,615,264 Total other capital assets 19,712,616 1,700,766 (505,163) 20,908,219 Less accumulated depreciation for: Buildings (2,915,120) (214,772) 23,904 (3,105,988) Vehicles (2,040,055) (217,073) 136,271 (2,120,857) Machinery and equipment (2,181,841) (180,467) 66,219 (2,296,089) Infrastructure (978,165) (170,492) - (1,148,657) Total accumulated depreciation (8,115,181) (782,804) 226,394 (8,671,591) Other capital assets, net 11,597, ,962 (278,769) 12,236,628 Governmental activities capital assets, net $ 11,926,292 $ 917,962 $ (278,769) $ 12,565,