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Audit Summary December 31, 2017 Presented by Beth Grimes Bates, Carter & Co., LLP ---PAGE BREAK--- Auditors’ Report on the Financial Statements • Issued an “Unmodified” or “Clean Opinion” ‒ Financial statements are presented fairly with generally accepted accounting principles • Referenced other reports issued ‒ Report on internal control and compliance in accordance to “Government Auditing Standards” ‒ We tested internal controls to ensure controls are effective ‒ We included findings related to internal controls in our report ---PAGE BREAK--- What Is Included In The Financial Statement Audit? ● All departments, funds and elected officials ● Development Authority as of December 31, 2017 ● Relied on another independent auditor’s report for the Department of Public Health as of June 30, 2017 ---PAGE BREAK--- Comments on Income Statements General Fund see page 5 of financial statements ● Revenues exceeded expenditures by $651 thousand ● Revenues increased 4% from prior year ● Taxes increased $731 thousand ● Property tax increased $212 thousand ● Sales tax increased $258 thousand ● Other taxes increased $145 thousand ● Insurance premium tax increased $99 ● Capital lease proceeds decreased $271 thousand ● Intergovernmental (Grants) increased $627 thousand ● Overall revenues under final budget $1 million ‒ Capital lease proceeds under budget $200 thousand ‒ Taxes under budget $352 thousand ‒ Charges for services under budget $403 thousand ---PAGE BREAK--- Comments on Income Statements General Fund see page 5 of financial statements • Expenditures decreased compared to 2016 expenditures by $63 thousand • Overall expenditures were below final budget $1.7 million − Transfers under budgeted for $294 thousand more than actually spent − Public safety under budget $623 thousand primarily due to salaries and equipment − Public works under budget $394 thousand mainly due to fewer capital lease and repairs & maintenance expenditures than expected ---PAGE BREAK--- Ratio of Revenues to Expenditures General Fund Revenues Expenditures 2013 2014 2015 2016 2017 0 6,250,000 12,500,000 18,750,000 25,000,000 ---PAGE BREAK--- General Fund Unreserved, Unassigned Fund Balance/Prior Year Operating Expenditures ---PAGE BREAK--- SPLOST see page 5 of financial statements ● Collected $4.2 million in revenues ● $3.5 million spent during 2017 – Paid for various County Projects ---PAGE BREAK--- Long-Term Debt Governmental Activities ● Long-term debt of $1.4 million ● Notes Payable $418 thousand ● Community Center – interest 3.0% ●$418 thousand at 12/31/2017 ●Matures FY 2019 ● Capital leases $1 million ● Matures FY 2020 ---PAGE BREAK--- Business-Type Activities Water Fund ● Operating income of $172 thousand ● Includes depreciation costs of $627 thousand ● Does not include debt service payments of $694 thousand ● Long Term Debt $6.8 million • Bonds payable $6.8 million ̶ Water-line infrastructure acquisition and construction ̶ Interest rate 2.35% ̶ Matures 2029 ---PAGE BREAK--- Business-Type Activities Airport Authority ● Operating loss of $132 thousand ● Includes depreciation costs of $101 thousand ● Does not include debt service payments of $291 thousand ● Long Term Debt $3.4 million • Bonds payable $3.4 million ̶ Airport taxiway construction ̶ Variable Interest rate – 4.00% as of end of 1st Quarter 2017 ̶ Matures 2019 ---PAGE BREAK--- Other Issues • Net pension liability as of 12/31/2017 was $7.1 million ---PAGE BREAK--- Questions??? 525 Candler Street NE PO Drawer 2396 www.batescarter.com [PHONE REDACTED] Gainesville, Georgia 30503