ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015
AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS JTJNE3O,2015 INDEPENDENT AUDITOR S REPORT 1-3 MANAGEMENT S DISCUSSION & ANALYSIS 4-9 FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 10 Statement of Activities 11-12 Fund Financial Statements Balance Sheet Governmental Funds 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 14 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund 17-21 Statement of Fiduciary Assets and Liabilities 22 Combining Statement of Net Position Component Units 23 Combining Statement of Activities Component Units 24 Notes to the Financial Statements 25-49 SUPPLEMENTARY INFORMATION Nonmaj or Governmental Funds Combining Balance Sheet Nonmajor Governmental Funds 50-51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds 52-53
TABLE OF CONTENTS JUNE3O,2015 (CONTINUED) Special Revenue Funds Law Library Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 54 E911 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 55 Law Enforcement Confiscation Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 56 Drug Abuse Treatment Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 57 Juvenile Court Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 58 Agency Funds Combining Statement of Changes in Assets and Liabilities 59-62 Component Unit Pike County Agribusiness Authority Balance Sheet 63 Statement of Revenues, Expenditures and Changes in Fund Balance 64 GOVERNMENTAL REPORTS State of Georgia Requirements Schedule of Project Expenditures with Special Sales Tax Proceeds 65 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 66-67 Schedule of Findings and Responses 68
CL~oN, LIPF0RD, HARDIs0N & PARKER, LLC INDEPENDENT AUDITOR S REPORT Board of Commissioners Pike County, Georgia Zebulon, Georgia Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Pike County, Georgia as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the County s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Pike County Department of Public Health, Pike County Water and Sewer Authority, and the Development Authority of Pike County, which represent 86 percent, 78 percent, and 52 percent, respectively, of the assets, net positions, and revenues of the component units of Pike County, Georgia. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Pike County Department of Public Health, Pike County Water and Sewer Authority, and the Development Authority of Pike County is based solely on the report of the other auditors. We conducted our audit 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. Member of 1503 Bass Road American Institute of 468 South Houston Lake Road P0. Box 6315 Macon, Georgia 31208-6315 Certified Public Accountants Warner Robins, Georgia 31088 Phone 478-742-3313 ~ Fax 478-742-0316 www.c1hp.com Phone 478-953-0125 ~ Fax 478-953-0983
Board of Commissioners Pike County, Georgia Page Two An audit involves performing pfocedures to obtain audit evidence about the amounts and disclosures in the fmancial 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 report of other auditors, the fmancial statements referred to above present fairly, in all material respects, the respective fmancial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Pike County, Georgia, as of June 30, 2015, and the respective changes in fmancial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementaiy Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis information on pages 4 through 9 be presented to supplement the basic fmancial statements. Such information, although not a part of the basic fmancial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. We and other auditors 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 fmancial statements, and other knowledge we obtained during our audit of the basic fmancial 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. 2
Board of Commissioners Pike County, Georgia Page Three Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Pike County, Georgia s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, the Pike County Agribusiness Authority statements, and the schedule of projects constructed with special sales tax proceeds are presented for purposes of additional analysis and are not a required part of the basic fmancial statements. The combining and individual nonmajor fund fmancial statements, budgetary comparison schedules, the Pike County Agribusiness Authority statements, and the schedule of projects constructed with special sales tax proceeds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic fmancial 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 fmancial statements or to the basic fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor fund fmancial statements, budgetary comparison schedules, the Pike County Agribusiness Authority statements, and the schedule of projects constructed with special sales tax proceeds are fairly stated in all material respects, in relation to the basic fmancial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2015, on our consideration of Pike County, Georgia s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pike County, Georgia s internal control over financial reporting and compliance. Macon, Georgia December 21, 2015 ~ 3
MANAGEMENT S DISCUSSION & ANALYSIS
MANAGEMENT S DISCUSSION AND ANALYSIS JUNE3O,2015 As management of the County, we offer readers of the County s financial statements this narrative overview and analysis of the financial activities of the County for the year ended June 30, 2015. FINANCIAL ifighlights The assets of the County exceeded its liabilities as of June 30, 2015, by $11,447,590 (net position). As of June 30, 2015, total net position consisted of $7,487,534 net investment in capital assets, $805,543 restricted for capital outlay, $454,644 restricted for Road repairs, $39,763 restricted for court programs, $119,547 restricted for law enforcement, and $ 2,540,559 unrestricted. As of June 30, 2015, the County s governmental funds reported ending fund balance of $4,113,814, an increase of $804,368 in comparison with the prior year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County s basic fmancial statements. The County s basic fmancial statements comprise three components: 1) govermnent-wide fmancial statements, 2) fund fmancial statements, and 3) notes to the fmancial statements. Government-wide Financial Statements The government-wide fmancial statements are designed to provide readers with a broad overview of the County s fmances, in a manner similar to a private-sector business. The statement of net position presents information on all of the County s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the fmancial position of the County is improving or deteriorating. The statement of activities presents information showing how the government s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods, such as earned but unused vacation leave. Both of the government-wide fmancial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through administrative fees and charges (business-type activities). The governmental activities of the County include general government, public safety, public works, health and welfare, culture and recreation and conservation of natural resources. The County currently has no business-type activities. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. The funds of a government can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 4
MANAGEMENT S DISCUSSION AI ID ANALYSIS JTJNE 30, 2015 (CONTINUED) Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide fmancial statements. However, unlike the government-wide fmancial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government s near-term fmancing requirements. Because the focus of governmental funds is narrower than that of the government-wide fmancial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fmancial statements. By doing so, readers may better understand the long-term impact of the government s near-term fmancing decisions. The governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. For the year ended June 30, 2015, the County had the following governmental funds; the General Fund, five Special Revenue Funds and five Capital Projects Funds. The County adopts an annual appropriated budget for the General Fund and Special Revenue Funds. A budgetary comparison statement has been provided to demonstrate compliance with this budget. Proprietary Funds The County maintains no proprietary funds. Fiduciary Funds Fiduciary funds are not reflected in the government-wide fmancial statement because the resources of those funds are not available to support the County s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Individual fund data for the fiduciary funds is provided in the form of both combining statements and individual fund statements elsewhere in this report. The basic fiduciary fund fmancial statement can be found on page 22 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government s fmancial position. In the case of the County, assets exceeded liabilities by $1 1,447,590 at the close of the most recent year. A significant portion of the County s net position reflects its net investment in capital assets. As of June 30, 2015, the investment consists of $16,573,631 in assets, accumulated depreciation of $7,811,221, and related debt long-term debt outstanding of $1,274,876. 5
MANAGEMENT S DISCUSSION AND ANALYSIS JTJNE3O,2015 (CONTINUED) An additional portion of the County s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the government s ongoing obligations. For the year ended June 30, 2015 net capital assets decreased $ 331,295. Long-term liabilities decreased $862,038 as of June 30, 2015, compared to June 30, 2014. The decrease is the result of ongoing efforts to reduce debt. Pike County, Georgia Net Position Governmental Activites 6/30/2015 6/30/2014 ASSETS Current & Other assets Capital assets Total assets $ 4,958,238 8,762,410 13,720,648 $ 4,215,997 9,093,705 13,309,702 LIABILITIES Current & Other liabilities Long Term liabilities Total liabilities 569,543 1,703,515 2,273,058 588,272 2,565,553 3,153,825 NET POSITION Net investment in capital assets Restricted- Capital Outlay Restricted - Road Repairs Restricted - Court Programs Restricted - Law Enforcement Unrestricted Total Net position 7,487,534 805,543 454,644 39,763 119,547 2,540,559 $ 11,447,590 7,002,665 683,958 121,435 2,347,819 $ 10,155,877 6
MANAGEMENT S DISCUSSION AND ANALYSIS JIJNE3O,2015 (CONTINUED) Change in Net Position Governmental Activities REVENUES Program Revenues Charges for services Operating grants & contributions Capital grants & contributions General Revenues Property Taxes Other Taxes Interest revenue Other Total Revenues 6/30/2015 6/30/2014 $ 1,156,910 654,293 6,067 5,462,507 3,807,393 1,767 105,511 11,194,448 $ 1,183,122 546,728 6,140 4,936,896 3,721,723 3,384 172,680 10,570,673 EXPENSES General government Public Safety Public Works Courts Health & Welfare Culture & Recreation Economic Development Interest on Long-term debt Total Expenses 1,729,237 3,349,926 2,524,390 1,043,575 535,786 394,149 263,347 62,325 9.902,735 1,521,722 3,553,715 2,503,331 1,059,603 534,357 396,975 286,322 88,187 9,944,212 Increase (decrease) in net position 1,291,713 626,461 Net position beginning of year Net position end of year 10,155,877 9,529,416 $ 11,447,590 $ 10,155,877 7
MANAGEMENT S DISCUSSION AI~W) ANALYSIS JUNE3O,2015 (CONTINUED) FiNANCIAL ANALYSIS OF THE GOVERNMENT S FUNDS The County uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. Governmental Funds The focus of the County s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County s fmancing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the year. As of June 30, 2015, the County s governmental funds reported ending fund balance of $4,113,814. Of this balance, $25,378 constitutes nonspendable, $1,419,497 restricted, $537,673 assigned, $51,933 committed, all of which are not available for spending at the government s discretion. The remainder of fund balance $2,079,333 is unassigned. The general fund is the operating fund of the County. As a measure of the general fund s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 19.8% of total governmental fund expenditures. The fund balance of the County s governmental funds increased $804,368 during the current fiscal year. The majority of the increase to fund balance is the result of the county s work to diligently stay within the annual budget. GENERAL FUND BUDGETARY fflgl]lights The County transferred $234,629 from the General Fund to the E9 11 Fund. Fund balance increased from $2,485,778 to $2,671,803. CAPITAL ASSET AN]) DEBT ADMINISTRATION Capital Assets The County s investment in capital assets for its governmental activities as of June 30, 2015 amounts to $8,762,410 net of accumulated depreciation. The investment in capital assets consists primarily of automobiles, machinery and equipment. For the current year, the investment in capital assets decreased by $331,295. See note 8 in the notes to the financial statements for more detail on capital assets. 8
MANAGEMENT S DISCUSSION AN]) ANALYSIS JUNE3O,2015 (CONTINUED) Governmental Activites Land Buildings Furniture and fixtures Machinery and equipment Vehicles Intangible Assets Infrastructure Total Capital Assets Accumulated Depreciation Total S 317,020 7,378,383 5,693 3,986,100 4,122,930 27,995 735,510 16,573,631 (7,811,221) $ 8,762,410 Long-Term Debt As of June 30, 2015, the County s long-term debt consisted of compensated absences, notes payable, landfill postclosure cost and additional capital leases. See Note 9 in the Notes to the Financial Statements for more detail on long-term liabilities. ECONOMIC FACTORS During the year 2015, notable events were as follows: Due to a continued downturn in the economy, revenues such as Local Option Sales Tax, motor vehicle tax and other revenues have been adversely affected. Accordingly, the county worked diligently to reduce expenditures in an attempt to mitigate these circumstances, bringing total expenditures in under budget for the fiscal year-end. In addition, the outstanding debt for the 2011 SPLOST Courthouse Renovation was paid in full as of October 2014, prior to maturity in efforts to reduce interest cost; more over earlier the extinguishing of the debt allowed for 2011 SPLOST Road Projects to begin earlier than originally planned. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County s finances for anyone with an interest in the government s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Mr. John Hanson, County Manager or Ms. Kay Landers, our Financial Officer, 79 Jackson Street, Zebulon, Ga. 30295. 9
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FINANCIAL STATEMENTS
STATEMENT OF NET POSITION JUNE3O,2015 Primary Government Governmental Activities ASSETS Cash and cash equivalents $ Receivables, net of allowance Taxes 316,591 Accounts 87,345 Due from other governments 156,721 Inventory 3,783 Prepaid items 21,595 Restricted assets: Temporary cash investments - 127,264 Capital assets Non depreciable 317,020 2,825,260 Depreciable, net 8,445,390 5,201,749 Total Assets 13,720,648 8,715,184 DEFFERRED OUTFLOWS OF RESOURCES Employer pension contributions Total Deferred Outflows of Resources LIABILITIES Accounts payable Accrued salaries and benefits Noncurrent liabilities Due within one year 396,893 172,650 393,621 16,168 12,506 73,163 Due in more than one year 1,309,894 3,101,303 Total Liabilities 2,273,058 3,203,140 DEFERRED INFLOWS OF RESOURCES Proportionate share of collective deferred inflows of resources - Pension plan Changes in proportion and differences between employer contributions and proportionate share of contributions Total Deferred Inflows of Resources NET POSITION Net investment in capital assets Restricted for 7,487,534 5,154,554 Capital outlay 805,543 - Road projects 454,644 - Court programs 39,763 - Law enforcement 119,547 258,000 Unrestricted 2,540,559 67,327 Total Net Position Component Units 4,372,203 $ 537,952 22,959 33,822 33,822-59,117-6,868-65,985 $ 11,447,590 $ 5,479,881 The notes to the financial statements are an integral part of this statement. 10
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STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Functions/Programs Primary Government: Governmental Activities General government Public safety Public works Courts Health and welfare Culture and recreation Economic development Interest on long-term debt Total governmental activities Total Primary Govermnent Component Units: Pike County Department of Public Health Pike County J. Joel Edwards Public Library Pike County Water and Sewerage Authority Pike County Agribusiness Authority Development Authority of Pike County Pike County Recreation Authority Total Component Units Expenses Program Revenues Operating Capital Charges Grants and Grants and for Services Contributions Contributions $ 1,729,237 $ 759,434 $ 66,044 $ - 3,349,926 396,840 11,939 6,067 2,524,390 636 576,310-1,043,575 - - 535,786 - - - 394,149 - - - 263,347 - - - 62,325 - - - 9,902,735 1,156,910 654,293 6,067 $ 9,902,735 $ 1,156,910 $ 654,293 $ 6,067 $ 354,746 $ 168,466 $ 195,936 $ - 117,570 6,759 104,901-373,859 127,305 141,180-72,206 54,881 12,000 4,200 57,927-70,168-435,614 184,775 275,077 - $ 1,411,922 $ 542,186 $ 799,262 $ 4,200 General Revenues Property tax Sales tax Motor vehicle tax Other tax Interest revenue Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning of year, restated Net Position - End of year The notes to the financial statements are an integral part of this statement. 11
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (CONTII ]TJED) Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Activities Component Units $ (903,759) (2,935,080) (1,947,444) (1,043,575) (535,786) (394,149) (263,347) (62,325) (8,085,465) (8,085,465) $ 9,656 (5,910) (105,374) (1,125) 12,241 24,238 (66,274) $ 5,462,507 1,683,463 1,105,345 1,018,585 1,767 105,511 9,377,178 1,291,713 10,155,877 11,447,590 660 8,023 8,683 (57,591) 5,537,472 $ 5,479,881 The notes to the financial statements are an integral part of this statement. 12
ASSETS BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 Non-Major General SPLOST LMIG Governmental Fund 2011 Fund Fund Funds Total Governmental Funds Cash and cash equivalents Receivables, net of allowance Taxes Other receivables Due from other governments Due from other funds Inventory Prepaid items Total Assets LIABILITIES Accounts payable Accrued payroll deductions Due to other funds Total Liabilities DEFERRED fl~flows OF RESOURCES Unavailable revenue - property taxes Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances $3,245,344 $ 454,512 $ 157,812 $ 514,535 $ 4,372,203 316,591 - - - 316,591 27,911 - - 59,434 87,345 73,374 83,347 - - 156,721 83,218-472,461-555,679 3,783 - - - 3,783 21,595 - - - 21,595 $3,771,816 $ 537,859 $ 630,273 $ 573,969 $ 5,513,917 $ 196,539 $ 14,905 $ 175,629 $ 9,820 $ 396,893 156,132 - - 16,518 172,650 472,461 11,088-72,130 555,679 825,132 25,993 175,629 98,468 1,125,222 274,881 - - - 274,881 274,881 - - - 274,881 25,378 - - - 25,378-511,866 454,644 452,987 1,419,497 51,933 - - - 51,933 515,159 - - 22,514 537,673 2,079,333 - - - 2,079,333 2,671,803 511,866 454,644 475,501 4,113,814 $3,771,816 $ 537,859 $ 630,273 $ 573,969 $ 5,513,917 The notes to the financial statements are an integral part of this statement. 13
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE3O,2015 Total Fund Balance per Balance Sheet of Governmental Funds $ 4,113,814 Amounts reported for governmental activities in the Statement of Net Position differ from amounts reported in the Balance Sheet of Governmental Funds due to the following: Capital Assets Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Cost of the assets Accumulated depreciation 16,573,631 (7,811,221) Revenues Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 274,881 Long-term Liabilities Long-term liabilities are not due and payable in the current period and, therefore, are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities both current and long-term are reported in the Statement of Net Position. Long-term liabilities at year. end consist of the following: Capital lease Notes payable Landfill closure costs Compensated absences Total Net Position of Governmental Activities (1,233,391) (41,484) (263,249) (165,391) $ 11,447,590 The notes to the financial statements are an integral part of this statement. 14
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Non-Maj or Total General SPLOST LMIG Governmenta Governmental Fund 2011 Fund Fund Funds Funds Revenues: Taxes Property tax Sales tax Other taxes License and permits Intergovernmental Fines and forfeitures Charges for services ]nterest earnings Other revenues $ 5,507,455 $ - $ - $ - $ 5,507,455 716,133 967,330 - - 1,683,463 2,123,930 - - - 2,123,930 149,239 - - 59,664 208,903 88,312-571,843-660,155 373,797 - - 75,844 449,641 178,982 - - 319,384 498,366 1,410 206 124 233 1,973 82,603 - - 547 83,150 Total Revenues Expenditures: Current: General government Public safety Public works Judicial Health and welfare Culture and recreation Housing and development Debt Service Principal Interest and fiscal charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers from other funds Transfers to other funds Notes Payable Insurance recoveries Total other financing sources (uses) Net change in fund balances Fund Balance - beginning of year 9,221,861 967,536 571,967 455,672 11,217,036 1,455,721 14-13,882 1,469,617 2,573,610 - - 574,930 3,148,540 1,810,075 91,829 589,784 2,491,688 1,038,480 - - - 1,038,480 572,018 - - - 572,018 397,485 - - 5,742 403,227 263,347 - - - 263,347 237,986 603,489-28,677 870,152 56,372 6,211-1,295 63,878-125,490-42,579 168,069 8,405,094 827,033 589,784 667,105 10,489,016 816,767 140,503 (17,817) (211,433) 728,020 - - 472,461 234,629 707,090 (707,090) - - - (707,090) 53,987 - - - 53,987 22,361 - - - 22,361 (630,742) - 472,461 234,629 76,348 186,025 140,503 454,644 23,196 804,368 2,485,778 371,363-452,305 3,309,446 Fund Balance - end of year $ 2,671,803 $ 511,866 $ 454,644 $ 475,501 $ 4,113,814 The notes to the financial statements are an integral part of this statement. 15
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Excess (Deficit) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses Per Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances $ 804,368 Amounts reported for governmental activities in the Statement of Activities differ from amounts reported in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Capital Assets Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is depreciated over their estimated useful lives and reported as depreciation expense. Total capital outlays 530,620 Total depreciation (811,345) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, disposals, trade-ins, and donations) is to increase net position. (50,571) Long-term Debt The issuance of bonds and similar long-term debt provides current fmancial resources to governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position, however, issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly, repayment of principal is an expenditure in the governmental funds, but reduces the liability in the Statement of Net Position. The amounts of the items that make up these differences in the treatment of long-term debt and related items are as follows: Debt issued or incurred (53,987) Under the modified accrual basis of accounting used in governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available fmancial resources. In the Statement of Activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when fmancial resources are available. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. The adjustments for these items are as follows: Capital leases 211,816 Note payable 658,335 Accrued interest 1,553 Landfill closure costs 29,954 Compensated absences 15,918 Revenues Revenues in the statement of activities that do not provide current fmancial resources are not reported as revenues in the funds. (44,948) Change in Net Position of Governmental Activities $ 1,291,713 The notes to the financial statements are an integral part of this statement. 16
Pll(E COUNTY, GEORGIA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHfi~NGES N FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Taxes: General property tax Local option sales tax Other: Motor vehicle tax Intangible tax Mobile home tax Timber taxes Insurance premium tax Penalties and interest Bank tax fee Other taxes Total Taxes Licenses and Permits: Alcohol beverage license Business license Building permits Other Total Licenses and Permits Intergovernmental Revenues: Federal grants State grants: Georgia Emergency Management Agency Department of Juvenile Justice Other: Pre-Trial Diversion Program City of Griffin Southern Rivers Energy Real estate transfer tax Total Intergovernmental Revenue Budgeted Amounts Original Final Actual Variance with Final Budget $ 5,685,299 $ 5,685,299 $ 5,507,455 $ (177,844) 680,000 680,000 716,133 36,133 1,061,500 1,242,809 1,105,345 (137,464) 55,000 55,000 66,778 11,778 17,600 17,600 14,635 (2,965) 7,950 7,950 23,074 15,124 700,000 700,000 755,659 55,659 125,350 125,350 118,046 (7,304) 43,000 43,000 40,302 (2,698) - - 91 91 8,375,699 8,557,008 8,347,518 (209,490) 44,000 44,000 41,665 (2,335) 35,000 35,000 35,500 500 40,000 40,000 69,168 29,168 1,000 1,000 2,906 1,906 120,000 120,000 149,239 29,239 - - 4,467 4,467 5,361 5,361 5,861 500 8,400 8,400 6,939 (1,461) 2,950 2,950 - (2,950) 50,000 50,000 50,000 - - 5,000 5,000-12,000 12,000 16,045 4,045 78,711 83,711 88,312 4,601 The notes to the financial statements are an integral part of this statement. 17
GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (CONTINUED) Budgeted Amounts Original Final Actual Variance with Final Budget Fines and Forfeitures: Superior Court fines Probate Court fines Magistrate Court fines Sheriffs cost and fees Total Fines and Forfeitures Charges for Services Tax Commissioner - commissions Drive way culverts Fire fees Jail inmate housing Total Charges for Services Miscellaneous: Interest earnings Miscellaneous Total Miscellaneous Total Revenues $ 120,000 $ 120,000 $ 122,424 $ 2,424 120,000 120,000 120,357 357 20,000 20,000 17,306 (2,694) 113,154 113,154 113,710 556 373,154 373,154 373,797 643 208,000 208,000 176,734 (31,266) 5,000 5,000 636 (4,364) 1,000 1,000 142 (858) 5,650 5,650 1,470 (4,180) 219,650 219,650 178,982 (40,668) 2,900 2,900 1,410 (1,490) 13,700 58,462 82,603 24,141 16,600 61,362 84,013 22,651 9,183,814 9,414,885 9,221,861 (193,024) The notes to the financial statements are an integral part of this statement. 18
GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (CONTINUED) General Government: General Administration Tax Commissioner s Office Tax Assessors Board of Equalization Voter Registrar Cooperative Extension Service Code Enforcement Officer Total General Government Judicial: Judicial Administration Superior Court Probate Court Magistrate Court Public Defender District Attorney Total Judicial Public Safety: Sheriffs Office Jail Operations Fire Department Animal Control Coroner s Office Total Public Safety Public Works: Road Department Budgeted Amounts Original Final Actual Variance with Final Budget - $ 787,645 $ 787,645 $ 651,370 $ 136,275 225,108 227,350 216,550 10,800 250,995 250,995 240,204 10,791 450 1,354 1,354-134,640 134,640 101,099 33,541 65,798 65,798 61,274 4,524 181,639 183,870 183,870-1,646,275 1,651,652 1,455,721 195,931 129,429 149,805 131,857 17,948 300,818 305,883 305,883-151,362 151,362 140,016 11,346 186,090 186,090 178,153 7,937 181,315 181,315 181,315-101,197 101,525 101,256 269 1,050,211 1,075,980 1,038,480 37,500 1,624,498 1,659,484 1,575,795 83,689 732,683 733,445 712,750 20,695 284,993 307,650 239,895 67,755 15,018 15,018 13,574 1,444 33,148 33,148 31,596 1,552 2,690,340 2,748,745 2,573,610 175,135 1,502,223 1,868,180 1,810,075 58,105 The notes to the financial statements are an integral part of this statement. 19
GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (CONTINUED) Health and Welfare: DFCS Ambulance Contract Emergency Management Senior Center Pike County Board of Health McIntosh Trail RC Total Health and Welfare Culture and Recreation: Recreation Library Flint River Regional Library Forestry Resources Total Culture and Recreation Housing and Development: Pike County Agribusiness Authority Pike County Water Authority Soil Conservation Development Authority Total Housing and Development Debt Service: Principal retirement Interest and fiscal charges Total Debt Service Total Expenditures Excess Revenue Over (Under) Expenditures Budgeted Amounts Variance with Original Final Actual Final Budget $ 27,000 $ 27,000 $ 27,000 $ - 395,000 395,000 395,000-40,318 44,766 44,766-13,714 18,789 10,092 8,697 70,000 70,000 70,000-26,055 26,055 25,160 895 572,087 581,610 572,018 9,592 268,322 269,403 269,403-106,414 106,626 106,626-12,000 12,000 11,980 20 9,476 9,476 9,476-396,212 397,505 397,485 20 12,000 12,000 12,000-141,180 141,180 141,180-36,376 36,673 36,673-80,000 80,000 73,494 6,506 269,556 269,853 263,347 6,506 420,318 453,641 237,986 215,655 93,692 88,776 56,372 32,404 514,010 542,417 294,358 248,059 8,640,914 9,135,942 8,405,094 730,848 542,900 278,943 816,767 537,824 The notes to the financial statements are an integral part of this statement. 20
GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES in FUND BALANCES - BUDGET AM) ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (CONTINUED) Other Financing Sources (Uses): Transfer to E9 11 Fund Transfer to LMIG Fund Transfer to Capital Improvements Fund Notes Payable Insurance recoveries Total Other Financing Sources (Uses) Net change in fund balance Fund Balance - Beginning of Year Fund Balance - End of Year Budgeted Amounts Variance with Original Final Actual Final Budget (271,253) (250,368) (214,629) 35,739 (332,000) (472,461) (472,461) - (20,000) (20,000) (20,000) - 67,757 124,105 53,987 (70,118) 12,600 24,961 22,361 (2,600) (542,896) (593,763) (630,742) (36,979) 4 (314,820) 186,025 500,845 2,485,778 2,485,778 2,485,778 - $ 2,485,782 $ 2,170,958 $ 2,671,803 $ 500,845 The notes to the financial statements are an integral part of this statement. 21
STATEMENT OF FiDUCIARY ASSETS AIS~D LIABILITIES JUNE 30, 2015 Agency Funds ASSETS Cash and cash equivalents Total Assets $ 399,671 $ 399,671 LIABILITIES Due to other governments Due to others Total Liabilities $ 279,034 120,637 $ 399,671 The notes to the financial statements are an integral part of this statement. 22
COMBINiNG STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2015 Assets Current: Cash and cash equivalents Receivables: Accounts Non-current: Restricted temporary cash investments Capital Assets: Nondepreciable Depreciable capital assets, net Total Assets Deferred Outflows of Resources Employer pension contributions Total Deferred Outflows of Resources Liabilities Current Liabilities: Accounts payable Accrued liabilities Compensated absences Meter deposit Notes payable Long-term Liabilities: Compensated absences Notes payable (net of current portion) Net pension liability Total Liabilities Pike County Pike County Pike County Department J. Joel Water and Pike County Development Pike County of Public Edwards Public Sewerage Agribusiness Authority of Recreation Health Library Authority Authority Pike County Authority 4,249-4,658,230 50,593 795 487,882 5,201,749 158,621 84,705 4,901,109 90,255 2,444,540 1,035,954 8,715,184 242,215 - - - - - 242,215 277,163 7,336 2,434,994-461,270 22,377 3,203,140 Total $ 140,174 $ 84,705 $ 106,873 $ 14,710 $ 118,437 $ 73,053 $ 537,952 14,198-8,742 - - 19 22,959 - - 127,264 - - - 127,264 - - - 24,952 2,325,308 475,000 2,825,260 33,822 - - - - - 33,822 33,822 - - - - - 33,822 6,594 2,193 - - - 7,381 16,168-4,869 616 - - 7,021 12,506 7,419 274 - - - 7,975 15,668 - - 23,193 - - - 23,193 - - 34,302 - - - 34,302 20,935 - - - - - 20,935 - - 2,376,883-461,270-2,838,153 Deferred Inflows of Resources Proportionate share of collective deferred inflows of resources - Pension plan Changes in proportion and differences between employer contributions and 59,117 59,117 proportionate share of contributions 6,868 - - - - - 6,868 Total Deferred Inflows of Resources 65,985 - - - - - 65,985 Net Position Net investment in capital assets Restricted Unrestricted (deficit) Total Net Position 4,249-2,247,045 75,545 1,864,833 962,882 5,154,554 130,736-127,264 - - - 258,000 (285,690) 77,369 91,806 14,710 118,437 50,695 67,327 $ (150,705) $ 77,369 $2,466,115 $ 90,255 $1,983,270 $1,013,577 $5,479,881 The notes to the financial statements are an integral part of this statement. 23
COMBINING STATEMENTS OF ACTIVITIES COMPONENT UNITS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Expenses: General government Health and welfare Culture and recreation Water and sewer Interest on long term debt Total Expenses Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions Total Program Revenues Net Program (Expense) General Revenues: Interest earnings Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning of year, restated Net Position - End of year (deficit) Pike County Department of Public Health Pike County J. Joel Edwards Public Library Pike County Water and Sewerage Authority Pike County Agribusiness Authority Development Authority of Pike County Pike County Recreation Authority $ - $ - $ - $ 72,206 $ 57,927 $ - $ 130,133 354,746 - - - - - 354,746-117,570 - - - 435,280 552,850 - - 373,859 - - - 373,859 - - - - - 334 334 Total 354,746 117,570 373,859 72,206 57,927 435,614 1,411,922 168,466 6,759 127,305 54,881-184,775 542,186 195,936 104,901 141,180 12,000 70,168 275,077 799,262 - - - 4,200 - - 4,200 364,402 111,660 268,485 71,081 70,168 459,852 1,345,648 9,656 (5,910) (105,374) (1,125) 12,241 24,238 (66,274) 78 60 478 3 23 18 660-1,210 - - - 6,813 8,023 78 1,270 478 3 23 6,831 8,683 9,734 (4,640) (104,896) (1,122) 12,264 31,069 (57,591) (160,439) 82,009 2,571,011 91,377 1,971,006 982,508 5,537,472 $ (150,705) $ 77,369 $2,466,115 $ 90,255 $ 1,983,270 $ 1,013,577 $ 5,479,881 The notes to the financial statements are an integral part of this statement. 24
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NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS JUNE3O,2015 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies Pike County was established under the provisions of an Act of the General Assembly of Georgia. The County operates under a county commissioner form of government, and provides the following services as authorized by state law, general administrative services, public safety, roads and bridges, tax assessment and collection, culture and recreation, courts and health and welfare. The fmancial statements of the County have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for govermnental accounting and fmancial reporting. A. Reporting Entity In conformity with generally accepted accounting principles, as set forth in Statement of Governmental Accounting Standards Board (GASB) No. 61 The Financial Reporting Entity: Omnibus, an amendment of GASB Statements No. 14 and 34, the County s relationships with other governments and agencies have been examined. The component unit columns in the combined financial statements include the financial data for the Pike County Department of Public Health, Pike County Library, Pike County Agribusiness Authority, Development Authority of Pike County, Pike County Water Authority, and the Pike County Recreation Authority, as of June 30, 2015. The financial information for the component units is reported in columns separate from the County s financial infonnation to emphasize that it is legally separate from the County. Pike County Department of Public Health (Health Department) The Health Department is charged with determining the health needs and resources of its jurisdiction, developing programs, activities, and facilities responsive to those needs, and enforcing all laws related to health matters unless they fall under the jurisdiction of other agencies. The County appoints the voting majority of the board. The County provides significant operating subsidies to the department. The Health Department is presented as a governmental fund type. Complete financial statements of the Pike County Department of Public Health may be obtained from their administrative office at the following location: Pike County Department of Public Health 201 Griffin Street Zebulon, Georgia 30295 25
NOTES TO THE FINANCIAL STATEMENTS JUNE3O,2015 (CONTINUED) Pike County J. Joel Edwards Public Library The Pike County J. Joel Edwards Public Library provides educational and other reading materials to the citizens of Pike County. The County provides significant operating subsidies to the library. The Pike County J. Joel Edwards Public Library is presented as a governmental fund type and only maintains a General Fund. Separate financial statements may be obtained from their administrative office at the following location: Pike County J. Joel Edwards Public Library P.O. Box 574 Zebulon, Georgia 30295 Pike County Agribusiness Authority The Pike County Agribusiness Authority is a nonprofit 501(c) 3 organization that promotes agriculture in Pike County. The County provides significant operating subsidies to the Authority. The Pike County Agribusiness Authority is presented as a governmental fund type and only maintains a General Fund. The Pike County Agribusiness Authority does not issue separate fmancial statements. Development Authority of Pike County The Development Authority of Pike County promotes new industry and existing industry in Pike County. The County provides significant operating subsidies to the Authority. The Development Authority of Pike County is presented as a governmental fund type. Separate financial statements may be obtained from their administrative office at the following location: Development Authority of Pike County P.O. Box 1147 Zebulon, Georgia 30295 Pike County Water and Sewerage Authority The Pike County Water and Sewerage Authority is responsible for developing necessary infrastructure to provide water and sewerage service to the unincorporated areas of Pike County. The County provides significant operating subsidies to the Authority. The Pike County Water and Sewerage Authority are presented as a governmental fund type. Separate fmancial statements may be obtained from their administrative office at the following location: Pike County Water and Sewerage Authority P.O. Box 948 Zebulon, Georgia 30295 26
NOTES TO THE FINANCIAL STATEMENTS JUNE3O,2015 (CONTINUED) Pike County Recreation Authority The Pike County Recreation Authority is responsible for developing and promoting recreational needs within the County. The County provides significant operating subsidies to the Authority. The Pike County Recreation Authority is presented as a governmental fund type. Separate financial statements may be obtained from their administrative office at the following location: Pike County Recreation Authority P.O. Box 697 Zebulon, Georgia 30295 Under Georgia law, the County, in conjunction with other cities and counties in the five county RC membership, is a member of the Three Rivers Regional Commission (RC) and is required to pay annual dues thereto. Membership in an RC is required by the Official Code of Georgia Annotated (OCGA) Section 50-8- 34 which provides for the organizational structure of the RC in Georgia. The RC Board membership includes the chief elected official of each county and municipality of the area. OCGA 50-8-39.1 provides that the member governments are liable for any debts or obligations of an RC. Separate financial statements may be obtained from: Three Rivers Regional Commission P.O. Box 818 Griffin, Georgia 30224 B. Government-Wide and Fund Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type 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 customers 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. 27