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PICKENS COUNTY, GEORGIA ANNUAL FINANCIAL REPORT (WITH INDEPENDENT AUDITOR'S REPORT) Year Ended December 31, 2019 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA ANNUAL FINANCIAL REPORT For The Fiscal Year Ended December 31, 2019 TABLE OF CONTENTS Page FINANCIAL SECTION Independent Auditor's Report i-iii Management's Discussion and Analysis iv-xi BASIC FINANCIAL STATEMENTS GOVERNMENT—WIDE FINANCIAL STATEMENTS Statement of Net Position Statement of Activities FUND FINANCIAL STATEMENTS - Balance Sheet Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Us-I3 - 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 Net Position Proprietary Funds - gxoooxiox - Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds - Statement of Cash Flows Proprietary Funds — Statement of Assets and Liabilities Fiduciary Funds COMPONENT UNITS Combining Statement of Net Position Combining Statement of Activities NOTES TO FINANCIAL STATEMENTS 13-54 REQUIRED SUPPLEMENTARY INFORMATION - Schedule of the Net Pension Liability ACCG Deﬁned Beneﬁt Plan 55 - Schedule of Contributions ACCG Deﬁned Beneﬁt Plan 56 - Schedule of Notes to Required Supplementaxy Information ACCG Deﬁned Beneﬁt Plan 57 Schedule of Changes in the Net OPEB Liability and Related Ratios- Health Care Plan of Pickens County, Georgia 58 Schedule of Employer Contributions Health Care Plan of Pickens County, Georgia 59 — - Schedule of Notes to Required Supplementary Information Health Care Plan of Pickens County, Georgia 60 Budgetary Comparison Schedule - General Fund 61- 62 -Restricted Programs Special Revenue Funds 63 ---PAGE BREAK--- COMBINING STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 Supplemental Budgetary Comparison Schedule -Law Library Special Revenue Fund 66 -Sheriffs Law Enforcement Special Revenue Fund 67 -Emergency Telephone System Special Revenue Fund 68 -Drug Task Force Special Revenue Fund 69 -Hotel/Motel Tax Special Revenue Fund 70 FIDUCIARY FUNDS - Combining Statement of Assets and Liabilities All Agency Funds - Combining Statement of Changes in Assets and Liabilities All Agency Funds 72 SUPPLEMENTAL INFORMATION Schedule of Projects Constructed with Special Purpose Local Option Sales Tax 73-74 Schedule of State Contractual Assistance 75 COMPLIANCE AND INTERNAL CONTROL REPORTS 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 76-81 ---PAGE BREAK--- [31mI.\JI\s A1)\lsuI-:\ u\Nl) CPA» PH [PHONE REDACTED] FX [PHONE REDACTED] 525 CANDLER STREET, NE PO DRAWER 2396 CAINESVILLE, GEORGIA 30503 WWW.BATESCARTER.COM Exceeding expectations. Always. INDEPENDENT AUDITOR'S REPORT August 27, 2020 Board of Commissioners PICKENS COUNTY, GEORGIA Jasper, Georgia Report on the Financial Statements We have audited the accompanying ﬁnancial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of PICKENS COUNTY, GEORGIA, as of and for the year ended December 31, 2019, 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 intemal 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 PICKENS COUNTY HEALTH DEPARTMENT, a component unit of the County, as of and for the year then ended June 30, 2019, which represent 14.51%, and 85.35%, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the PICKENS COUNTY HEALTH DEPARTMENT, 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ﬁnancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the ﬁnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers ---PAGE BREAK--- - - 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 ﬁnancial statements referred to above present fairly, in all material respects, the respective ﬁnancial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major ﬁmd, and the aggregate remaining fund information of PICKENS COUNTY, GEORGIA, as of December 31, 2019, and the respective changes in ﬁnancial position 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 Management’s Discussion and Analysis, Schedule of the Net Pension Liability ACCG Deﬁned - — Beneﬁt Plan, Schedule of Contributions ACCG Deﬁned Beneﬁt Plan, Schedule of Notes to - Required Supplementary Information ACCG Deﬁned Beneﬁt Plan, Schedule of Changes in the - Net OPEB Liability and Related Ratios Health Care Plan of Pickens County, Schedule of - Employer Contributions Health Care Plan of Pickens County, Schedule of Notes to Required - Supplementary Information Health Care Plan of Pickens County, Budgetary Comparison Schedule General Fund, and Budgetamy Comparison Schedule Restricted Programs Fund listed in the table of contents 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 and the 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 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. ---PAGE BREAK--- Other Information Our audit was conducted for the purpose of forming opinions on the ﬁnancial statements that collectively comprise PICKENS COUNTY, GEORGIA’s basic ﬁnancial statements. The combining and individual nonmajor fund ﬁnancial statements, supplemental budgetary comparison schedules, Schedule of Projects Constructed with Special Sales Tax Proceeds which is presented for purposes of additional analysis as required by Ofﬁcial Code of Georgia 48-8-121, and the Schedule of State Contractual Assistance, and are not a required part of the basic ﬁnancial statements. The combining and individual nonmajor fund ﬁnancial statements, supplemental budgetary comparison schedules, Schedule of Projects Constructed with Special Sales Tax Proceeds, and Schedule of State Contractual Services are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic ﬁnancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic ﬁnancial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic ﬁnancial statements or to the basic ﬁnancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of Ameﬁca 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 nomnajor fund ﬁnancial statements are fairly stated, in all material respects, in relation to the basic ﬁnancial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 27, 2020 on our consideration of PICKENS 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 effectiveness of PICKENS COUNTY, GEORGIA's internal control over ﬁnancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering PICKENS COUNTY, GEORGIA’s internal control over ﬁnancial reporting and compliance. gaiw, Ca/JL’?7z/i[a,,l_LJ0 iii ---PAGE BREAK--- MANAGEMENT’S DISCUSSION AND ANALYSIS As management of Pickens County, Georgia (the "County"), we provide this narrative overview and analysis of the ﬁnancial activities of the County for the year ended December 31, 2019. The County's ﬁnancial performance is discussed and analyzed within the context of the accompanying ﬁnancial statements and disclosures following this section. FINANCIAL HIGHLIGHTS The County's assets exceeded its liabilities by $53,550,939 (net position) for the year reported. This represents an increase of $364,573 from the previous year. Total net position is comprised of the following: 1. Net investment in capital assets equaled $50,893,441. or other constraints imposed by law or regulations. 2. Net position of $4,351,136 are restricted for debt service, capital outlay, by 3. At the end of 2019, unrestricted net position balance decreased by $(1,833,134) from $139,496 to $(1,693,638). The County's governmental ﬁmds reported total ending ﬁlnd balance of $12,396,179. This compares to the prior year ending fund balance of $12,155,979 showing an increase of $240,200 during the current year. At the end of 2019, unassigned fund balance for the County's governmental ﬁlnds was $7,443,233. OVERVIEW OF THE FINANCIAL STATEMENTS The Management's Discussion and Analysis introduces the County's basic ﬁnancial statements. The basic ﬁnancial statements consist of three components: 1) govemment-wide ﬁnancial statements, 2) fund ﬁnancial statements, and 3) notes to the ﬁnancial statements. The basic — ﬁnancial statements present two different Views of the County through the use of government wide statements and fund ﬁnancial statements. This report contains other supplemental information that will enhance the reader's understanding of the ﬁnancial condition of the County. Government—wide Financial Statements The govemment-wide ﬁnancial statements are designed to provide the reader with a broad overview of the County's ﬁnances and are more comparable to the ﬁnancial statements of private-sector businesses. The government-wide statements provide both short and long-term information about the County's ﬁnancial status as a whole. Government—wide statements report the County's net position and how it has changed. Net position is the difference between the County's total assets and total liabilities. Changes in net position indicate the improvement (an increase) or deterioration (a decrease) in the County's ﬁnancial condition. The ﬁrst of these govemment-wide statements is the Statement of Net Position. This statement presents information that includes all of the County's assets and liabilities, with the difference reported as total net position. iv ---PAGE BREAK--- The second govemment-wide statement is the Statement of Activities which indicates how the County's net position changed during the current ﬁscal year. This report is designed to show the ﬁnancial reliance of the County's activities and functions on revenues provided by County taxpayers. The government-wide statements are divided into governmental activities, business-type activities, and component units. Governmental activities include most of the County's basic services such as general administration, public safety, public works, court systems, culture and recreation, health and welfare, and housing and development. Property taxes, sales taxes, and state and federal grants ﬁnance most of these activities. Business type activities are those that the County charges customers to provide. These include water services and the Pickens County Airport. Component Units for the County include the Development Authority and the Pickens County Department of Public Health. Separate ﬁnancial statements are issued for both component units. See page 13 of the ﬁnancial statements for more information Fund Financial Statements Pickens County, like all other governmental entities in Georgia, uses fund accounting to ensure compliance with ﬁnance-related laws and regulations. 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. All of the funds of the County can be classiﬁed as govemmental funds, proprietary ﬁmds, or ﬁduciary funds. Governmental funds are used to account for those functions reported as governmental activities in the govemment-wide ﬁnancial statements. These funds focus on how assets can readily be converted into cash and the amount of funds left at year—end that will be available for spending in the next ﬁscal year. As a result, the governmental fund ﬁnancial statements give the reader a detailed short-term view that helps determine if there are ﬁnancial resources available to ﬁnance the County's programs. Most of the County's basic services are accounted for in governmental ﬁmds. Proprietary funds are used to report the functions presented as business-type activities in the govemment-wide ﬁnancial statements. Pickens County uses enterprise funds to account for the Water Department and the Airport. Fiduciary Funds are used to account for resources held for the beneﬁt of parties outside the Government. Pickens County's ﬁduciary ﬁmds are considered agency ﬁmds. Notes to the Financial Statements provide additional information that is essential to a full understanding of the data presented in both the govemment-wide and fund ﬁnancial statements. The notes to the ﬁnancial statements begin on page 13 of this report. ---PAGE BREAK--- GOVERNMENT-WIDE FINANCIAL ANALYSIS The table below presents the County's condensed Statement of Net Position. Comparison analysis is made from the year ended December 31, 2019 to the year ended December 31, 2018 as required by GASB Statement No. 34. Comparative Schedule of Net Position December 31 Governmental Activities Business-type Activities Total Primary Government 2019 2018 2019 2018 2019 2018 Capital assets (net of depreciation) Current and other assets 5 44,590,196 15,361,152 S 43,246,119 16,044,729 $ 19,853,806 12,552,597! S 19,216,241 11,809,935} $ 64,444,002 12,808,555 $ 62,462,360 14,234,794 Total Assets 59,951,348 59.290348 17,301,209 17,406,306 77.252.557 76,697,154 Total deferred outﬂows of resources 2,883,156 1,432,973 - - 2.883.156 1,432,973 Long-term liabilities Other liabilities 12,804,228 1,426,339 9,491,046 2,419,278 12,088,785 241.097 12,206,253 352.106 24,893,013 1.667.436 21,697,299 2,771,384 Total liabilities 14,230,567 1 1,910,324 12,329,882 12,558,359 26,560,449 24,468,683 Total deferred inﬂows of resources 24,325 475,078 — — 24,325 475,078 Net Position: Net investment in capital assets Restricted Unrestricted 43,120,050 4,351,136 1,108,426 41,403,763 3,806,983 3,127,673 7,773,391 - (2,802,064) 6,998,402 837,722 (2,988,177) 50,893,441 4,351,136 I 693 638 48,402,165 4,644,705 139,496 Total net position $ 48 579 612 $ 48!338!4l9 $ 4 971 327 $ 4!847!947 $ 53§550!939 S 539863366 Over time, net position serves as a useful indicator of a government's ﬁnancial position. The County's combined net position (government and business-type activities) totaled $53,550,939 at December 31, 2019 compared to $53,186,366 at December 31, 2018. The total increase was $364,573. The largest portion of net position, $50,893,441 reﬂects the County's investment in capital assets (land, buildings, machinery and equipment) less accumulated depreciation and any related debt still outstanding that was issued to acquire those assets. The County uses these capital assets to provide services to citizens; therefore, these assets are not available for ﬁ1ture spending. Although the County's investments in capital assets are reported net of outstanding debt, the resources needed to repay the debt must be provided by other sources as the capital assets cannot be liquidated to pay the liabilities. The County has $4,351,136 of restricted net position that is subject to external restﬁctions, constitutional provisions, or enabling legislation on how they can be used. The remaining portion of net position represents $(1,693,638) of unrestricted net position. The table below presents the County's condensed Statement of Activities for the year ended December 31, 2019 with comparative amounts for the year ended December 31, 2018. vi ---PAGE BREAK--- - - - - - - - - - - - - - - - - - - - - - - - - Comparative Schedule of Changes in Net Position December 31 REVENUES Program revenues Charges for setvices Operating grants and contributions Capital grants and contributions Subtotal for program revenues General revenues Property taxes Sales taxes Insurance premium tax Franchise tax Other taxes Interest and investment eamings Other revenue Grants and contributions not restricted to a speciﬁc program Gain on sale of capital assets Subtotal for general revenues Total revenues EXPENSES Program expenses General govemment Judicial Public safety Public works Health & welfare Recrmtion & culture Housing and development Interest and paying agent fees Water Airpoxt Total expenses Change in net position before transfers Transfexs Change in net position Net position, beginning of year Change in accounting principle Net position, beginning as restated Net position, end of year Governmental Activities 2019 2018 $ 5,245,725 $ 5,413,042 $ 6,135,698 4,184,847 - 17.972 11,381,423 9,615,861 13,111,108 13,001,906 9,176,567 8,430,048 1,730,464 1,613,886 360,511 366,133 30,715 17,795 466,622 530,004 52,228 49,496 152 320 37.382 25,080,535 23,986,650 36,461,958 33,602,511 4,232,770 3,925,304 6,039,643 5,670,717 14,969,883 13,732,265 8,062,619 7,006,435 635,002 614,966 1,119,412 1,080,781 844,471 757,693 83,303 72,037 - - 35,987,103 32,860,198 474,855 742,313 1233,6621 - 241.193 74;3l3 48,338,419 46,781,058 - 815,047 48.338.4l9 47,596.l06 48!579!6l2 48i338i4l9 $ § § Business-type Activities 2019 2018 3,354,960 S 2,871,174 36,333 16,006 141.664 — 3,532,957 2,887,180 — - : — 1.401 19.000 1 401 19 000 3,534,358 2,906,180 - — - — 2,609,295 2,404,269 1.035.345 649,732 3.644.640 3.054.001 (110,282) (147,821) 233.662 - 123.380 (147.82l) 4,847,947 4,995,768 - - 4.847.947 4.995.768 459715327 $ 4!847!947 Total Primary Government 2019 2018 $ 8,600,685 $ 8,284,216 6,172,031 4,200,853 141,664 17,972 14,914,380 12,503,041 13,111,108 13,001,906 9,176,567 8,430,048 1,730,464 1,613,886 360,511 366,133 30,715 17,795 466,622 530,004 52,228 49,496 153.721 56.382 25,081,936 24,005,650 39,996,316 36,508,691 4,232,770 3,925,304 6,039,643 5,670,717 14,969,883 13,732,265 8,062,619 7,006,435 635,002 614,966 1,119,412 1,080,781 844,471 757,693 83,303 72,037 2,609,295 2,404,269 1.035.345 649,732 39.63l.743 35.914.199 364,573 594,492 - - 364.573 594.492 53,186,366 51,776,826 - 815,047 53 186 366 52,591,873 $ 53i550l939 $ 53!186!366 Governmental Activities Revenues such as property taxes, insurance premium tax and other taxes, continue as the main source of revenue for governmental activities which totaled $25,080,535 in 2019 compared to $23,986,650 in 2018. This change is an increase of 4.56%. Governmental Activities Expenses by function as reﬂected in the table above show that during 2019, the County expended 42% for Public Safety, 17% for Judicial, 22% for Public Works, 12% for General Government, 3% for Culture and Recreation, 2% for Housing and Development, 2% for Health and Welfare, and 1% for Interest on Long-term debt. As a comparative, during ﬁscal year 2018, the County expended 42% for Public Safety, 17% for Judicial, 12% for Public Works, 12% for General Government, 3% for Culture and Recreation, 2% for Housing and Development, 2% for Health and Welfare, and 1% for Interest on Long-term debt. vii ---PAGE BREAK--- Business—type activities decreased the County's net position by $123,380. Revenues by Source Govenm1ent~\'\‘ide Actixities M m 9% Other” Ogeratmg Grants Progeny Tax 38% 1§°/9 Charges for Services " Other. Investment Capital Grants 0% *Due to rounding, charts may not always equal 100% Expenses by Function Cio\*e1:m1ex1t-Wide Actixities Solid Waste 2% 11% General Government 0% Interest Housing & Development Public Works 22% 3% Recreation Health & Welfare 2% \ Judicial 16% 41% PUDIIC Safety ---PAGE BREAK--- FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS The County uses ﬁmd accounting to ensure and demonstrate compliance with ﬁnance—re1ated 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. This information is useful in assessing the Government's ﬁnancing requirements. Speciﬁcally, unassigned fund balance can be a useful measure of a goVemment's net resources available for spending at the end of the ﬁscal year. The major governmental ﬁmds are the General Fund, SPLOST, and Restricted Programs. The General Fund is the chief operating fund of the County. It is used to account for all governmental ﬁnancial resources not restricted by state or federal laws, local ordinances, or other imposed requirements. The County's total governmental ﬁmds reported ending fund balance of $8,870,997. This compares to the prior year ending fund balance of $9,058,891 showing a decrease of $(187,894) during the current year. At the end of ﬁscal year 2019, unassigned fund balance for the County's governmental funds was $7,443,233. Another of the County's major governmental funds is the SPLOST fund. The fund balance of the SPLOST‘ fund increased by $357,369 during the current ﬁscal year. Collections for 2014 SPLOST began on July 1, 2014. Based on the approved 2014 SPLOST referendum, the majority of the 2014 SPLOST revenues are allocated for capital road projects and public safety. The SPLOST ﬁlnd has an ending fund balance of $2,811,375 which is restricted for capital projects as outlined in the 2014 SPLOST referendum. The County's other major governmental fund is the Restricted Programs ﬁmd. The fund balance of the Restricted Programs special revenue fund increased by $18,028 during the current ﬁscal year. The Restricted Programs fund is used to account for multiple court-administered reimbursement grants. The Restricted Programs fund has an ending ﬁmd balance of $332,876 which is restricted restricted speciﬁcally for the Judicial programs. In 2019, governmental revenues increased $3,173,474 from 2018. This increase is primarily due to activity in the General Fund related to an increase in revenues from taxes, licenses and pennits and charges for services. There was an 7.9% increase in revenues in the SPLOST ﬁmd. There was a 1.4% increase in revenues in the Restricted Programs fund. ---PAGE BREAK--- Revenues by Source — Fund Level Govenlmental Fmes& Forfeitures 2% 1% Othef Charges for SPJVICES 11% Imergovem mental 17% I License & Pernms 1% >680/0 Taxes Proprietary funds. The County's proprietary fund statements provide the same type of information presented in the government-wide statements but in more detail. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The County's capital assets for governmental and business-type activities as of December 31, 2019 total $64,444,002 (net of accumulated depreciation). These assets include land, land improvements, infrastructure, buildings, machinery and equipment, furniture and ﬁxtures, vehicles and construction in progress. Pickens County's Capital Assets (Net of depreciation) Governmental Activities Business-Lype Activities Total Primgy Government 2019 2018 2019 2018 2019 2018 Land and improvements $ 4,751,023 $ 4,782,483 $ 2,001,557 $ 2,061,538 $ 6,752,580 $ 6,844,021 Construction in progress 118,253 387,942 6,159,979 7,727,221 6,278,232 8,115,163 Buildings 29,380,295 29,186,527 1,373,819 220,472 30,754,114 29,406,999 Machinery & equipment 2,156,116 2,337,980 543,375 535,853 2,699,491 2,873,833 Furniture & ﬁxtures Vehicles 2,455,284 2,336,920 93,284 124,446 2,548,568 2,461,366 5 729 [PHONE REDACTED] 9.681.792 8,546,711 15.41 1.017 12.760.978 Total Assets 44i590ll96 $ 43l2461l9 l9i853I806 $ l9i2l6l241 $ 64l444l002 $ 62i462i36O § § Detailed information on the County's capital assets can be found in Note 6 of the basic ﬁnancial statements. ---PAGE BREAK--- - - Long-term Debt. During 2019, the long-term debt of Pickens County's governmental activities increased $3,313,183. The inception of capital leases for the purchase of vehicles and equipment totaled $218,490 during 2019. The notes payable category decreased due to the continual repayment of debt. The net pension liability increased $2,663,214, and the net OPEB obligation decreased by $(61,202) due to contributions paid by the County and activity of the plans’ ﬁduciary net position. Long-tenn debt decreased in business-type activities in the amount of 17,468). Pickens County's Outstanding Debt Bonds Payable, Capital Leases, Notes Payable, Claims, and Other Debts Governmental Activities Business-gaze Activities Total Primagg Government 2019 2018 2019 2018 2019 2018 - — Bonds payable $ $ $ 10,511,938 $ 10,622,130 $ 10,511,938 $ 10,622,130 Capital leases 319,143 715,712 7,632 319,143 723,344 - Notes payable 1,030,000 3 5,449 1,568,477 1,568,477 2,598,477 1,603,926 Landﬁll closure/postclosure 450,000 377,600 450,000 377,600 - — Compensated absences 347,492 306,703 8,3 70 8,014 355,862 314,717 Net pension liability 9,754,257 7,091,043 9,754,257 7,091,043 - - Net OPEB liability 903.337 964.539 903,337 964.539 Totals $ 12i804!229 S 9§491!046 S 12 088 785 $ 12§206!253 $ 24!893!014 $ 21!697!299 Additional information regarding Pickens County’s long-term debt and beneﬁt plans can be found in Note 8 on pages 34 through 38 and Note 10 on pages 39 through 49 of this report. ECONOMIC FACTORS AND THE 2020 BUDGET 0 The 2019 millage rate decreased from 7.846 to 7.779 per $1,000 of valuation. The 2019 millage rate was a decrease of 0.67%, however the 2019 tax digest reﬂected an increase in overall valuation. The 2019 total County taxes levied increased $218,672 as compared to 2018. 0 The 2020 budget was approved and adopted by the Board of Commissioners on December 19, 2019. The 2020 operating budget increased from $27,242,943 to $27,637,439, an increase of $394,496. The majority of the revenue increase is in tax revenues, title ad valorem tax, license and permit fees. The majority of expenditure increase is in purchased services and salaries and beneﬁts. 0 budgetary reports are provided to all department heads, elected ofﬁcials and the Board of Commissioners. Pickens County management continues to monitor revenue collection rates and control budgetary spending in an effort to provide services at or above current levels without further burdening the county taxpayers. REQUESTS FOR INFORMATION This report is designed to provide the reader a general overview of the County's ﬁnances and demonstrate Management's commitment to public accountability. Questions concerning any of the information found in this report or requests for additional information should be directed to Faye Harvey, Finance Director for Pickens County Board of Commissioners, 1266 East Church Street, Suite 175, Jasper, Georgia 30143. xi ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION December 31, 2019 PRIMARY GOVERNMENT ASSETS Cash Investments Capital lease receivable Receivables (net of allowance for uncollectibles) Internal balances Inventories Prepaid items Restﬁcted assets: GOVERNMENTAL ACTIVITIES $ 7,036,785 23,193 - 3,747,430 2,910,636 51,157 550,653 BUSINESS-TYPE ACTIVITIES $ 800 - - 262,996 (2,910,636) 86,491 - TOTAL $ 7,037,585 23,193 - 4,010,426 - 137,648 550,653 3 COMPONENT UNITS 533,549 - 168,000 60,595 - 470 — Cash Customer deposits Capital lease receivable Net pension obligation Capital assets: Capital assets not being depreciated Capital assets being depreciated Less: accumulated depreciation Capital assets, net of depreciation TOTAL ASSETS 1,041,298 - - - 4,490,249 69,179,919 (29,079,972) 44,590,196 59,951,348 - 7,752 - - 7,850,573 22,655,737 ( 10,652,504) 19,853,806 17301209 1,041,298 7,752 - - 12,340,822 91,835,656 §39,732,476[ 64,444,002 772525 57 - - 2,352,000 7,326 - 157,737 §87,950[ 69,787 3.191.727 DEFERRED OUTFDOWS OF RESOURCES Pension expense OPEB expense TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,880,885 2,271 2.883.156 - - - 2,880,885 2.271 2,883,156 139,017 129,148 268,165 TOTAL ASSETS & DEFERRED OUTFLOWS 62,834,504 17,301,209 80,135,713 3,459,892 LIABILITIES Accounts payable Accmed interest payable Other accrued items Uneamed revenue Noncunent liabilities: - - 578,153 848,186 172,983 1 1,290 25,967 30,857 751,136 11,290 874,153 30,857 1,961 - - 859,392 Due within one year Compensated absences payable Accrued landﬁll closure / postclosure Notes ﬁnm direct borrowings Capital leases payable Revenue bonds payable Due in more than one year Cumpensated absences payable Net pension liability Net OPEB liability Accrued landﬁll closure / postclosure Notes ﬁ'om direct borrowings Capital leases payable Revenue bonds payable TOTAL LIABILITIES 243,244 30,000 92,598 300,193 - 104,247 9,754,257 903,337 420,000 937,402 18,950 - 14,230,567 5,859 - - - 780,671 2,51 1 — - - 1,568,477 - 9,731,267 12,329,882 249,103 30,000 92,598 300,193 780,671 106,75 8 9,754,257 903,337 420,000 2,505,879 18,950 9,731,267 26.560,449 8,848 - - - 75,299 8,848 245,002 402,100 - - - 1,578,840 3,180,290 DEFERRED INFIDWS OF RESOURCES Pension expense OPEB expense TOTAL DEFERRED INFDOWS OF RESOURCES — 24,325 24,325 - - - - 24,325 24.325 15,421 134,131 149,552 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 14,254,892 12,329,882 26,584,774 3,329,842 NET POSITION Net investment in capital assets Restricted for: 43,120,050 7,773,391 50,893,441 69,787 Capital outlay projects Judicial programs Public safety programs Health and welfare programs Housing and development programs Unrestricted TOTAL NET POSITION $ 3,439,547 569,839 321,126 - 20,624 1,108,426 48!579!6l2 $ - — - - - (;802,064) 43971 E327 $ 3,439,547 569,839 321,126 — 20,624 (L693,638) 53!550§939 $ - - - 32,003 - 28 260 130E050 The accompanying notes are an integral part of this statement. 1 ---PAGE BREAK--- - - - - - - - - - - - - - - - - - - - - PICKENS COUNTY, GEORGIA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 ....NET (EXPENSE) AND CHANGES IN NET POSlTION.... ..PROGRAM ..........PRIMARY GOVERNMENT.............. OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTAL BUSINESS-TYPE COMPONENT FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL UNITS PRIMARY GOVERNMENT GOVERNMENTAL ACTIVITIES - — — General govemment 3 4,232,770 $ 919,246 $ 16,784 $ $ (3,296,740) S S (3,296,740) $ Judicial 6,039,643 1,115,004 5,642,212 717,573 717,573 Public safety 14,969,883 2,265,101 412,380 (l2,292,402) 02,292,402) Public works 8,062,619 409,380 (7,653,239) (7,653,239) - - - — Public health and welfare 635,002 25,015 64,322 (545,665) (545,665) Recreation and culture 1,1 19,412 21 1,929 (907,483) (907,483) — Housing and development 844,471 300,050 (544,421) (544,421) Interest ' - - - — 83,303 (83,303) (83,303) Total Governmental Activities 33981103 5,245,725 6,135 .698 (24 605 680) 04,605,680) — BUSINESS-TYPE ACTIVITIES Water 2,609,295 2,622,072 36,333 49,1 10 49,1 10 - - - - Airport 1,035,345 732 888 141,664 (160,793) (160,793) Total Business—Type Activities 3.644.640 3,3 54,960 36,333 141,664 - 011.683) (111,683) - TOTAL PRIMARY GOVERNMENT $ 39!63l!743 g 8!600§685 S 6172i031 $ 141.664 (24 605 680) (111,683) (24,717.363) - COMPONENT UNITS Health Department $ 635,898 S 328,561 $ 379,315 $ - - - - 71,978 Development Authority 68.881 101,566 - 20,000 - — — 52,685 TOTAL COMPONENT UNITS g 704!779 S 4303127 S 37957;; $ 20i000 - - — 124,663 GENERAL REVENUES — Property taxes 13,111,108 13,111,108 - Sales taxes 9,176,567 - 9,176,567 - Insurance premium taxes 1,730,464 — 1,730,464 — Real estate recording taxes 360,511 - 360,51 1 « Other taxes - — 466 622 466 622 Total taxes 24,845,272 24,845,272 - - Unrestricted investment eamings 30,715 - 30,715 192 Grants and contributions not restricted to a speciﬁc program 52,228 - 52,228 - Gain on sale of capital assets 152,320 1,401 153,721 - TRANSFERS (233 662) 233,662 - - TOTAL GENERAL REVENUES AND TRANSFERS 24,846,873 235,063 25.081336 192 CHANGES IN NET POSITION 241,193 123,380 364,573 124,855 NET POSITION, Beginning 48,338,419 4,847,947 534186366 5,195 NET POSITION, Ending 3 48!579i612 4!971!327 3 53!550![PHONE REDACTED] g § The accompanying notes are an integral part of this statement. 2 ---PAGE BREAK--- - - - - - - - - - - - - - - - - - - PICKENS COUNTY, GEORGIA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2019 OTHER NONMAJOR TOTAL RESTRICTED GOVERNMENTAL GOVERNMENTAL ASSETS GENERAL SPLOST PROGRAMS FUNDS FUNDS Cash $ 5,109,372 $ 1,330,911 $ 142,669 $ 403,832 $ 7,036,784 - Investments . - 23,193 23,193 Receivables (net of allowance for uncollectibles) 2,749,064 530,050 320,066 148,250 3,747,430 - Interfund receivables 3,099,224 234,494 20,904 3,354,622 ‘ ‘ Prepaid items 550,653 ' 5509653 - ‘ ' Inventories 51,157 512157 Restricted assets: - - Cash 119.782 921.516 1.041.298 TOTAL ASSETS 1 1,679,252 2,832,477 697,229 596,179 15,805,137 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 11!679i252 2i832a477 $ 697% $ 596.179 $ 15,805.137 § § LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 492,604 $ 21,102 $ 30,886 $ 33,560 $ 578,152 - Other accrued items 612,449 57,618 178,119 848,186 - Interfund payables 1671908 275,849 229 443,986 TOTAL LIABILITIES 1,272,961 21,102 364,353 211,908 1,870,324 DEFERRED INFLOWS OF RESOURCES - Unavailable revenue property taxes 1,535,294 - 1,535,294 - Unavailable revenue ﬁnes 3,340 3,340 TOTAL DEFERRED INFLOWS OF RESOURCES 1,535,294 - — 3,340 1,538,634 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 2 808 255 21.102 364.353 215.248 3.408.958 FUND BALANCES Nonspendable: Prepaid expenditure 550,653 - 550,653 Inventories 51,157 51,157 Restricted: Capital outlay projects 628,172 2,81 1,375 3,439,547 - Judicial programs 197,782 332,876 39,181 569,839 - Public safety programs — - 321,126 321,126 Housing and development programs 20,624 20,624 Unassigned 7.443.233 7.443.233 TOTAL FUND BALANCES 8,870,997 2.81 1.375 332.876 380.931 12.396.179 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES § 11i679i252 § 2832!477 $ 697gg9= $ 596.179 $ 15,805,137 The accompanying notes are an integral part of this statement. 3 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2019 Total Fund Balances for Governmental Funds (page 3) Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in the governmental activities are not ﬁnancial resources and therefore are not reported in the funds. Revenues in the statement of activities that do not provide current ﬁnancial resources are reported as unavailable revenues in the ﬁmds. Property Taxes Fines Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Net pension liability Net deferred inﬂows (outﬂows) pension expense - Compensated absences Capital leases Net OPEB liability - Net deferred inﬂows (outﬂows) OPEB expense Notes payable Accrued landﬁll closure/postclosure Total net position of governmental activities (page 1) $ 12,396,179 44,590,196 1,535,294 3,340 1,538,634 (9,754,257) 2,880,885 (347,49 1) (3 19,143) (903,337) (22,054) (1,030,000) (450,000) § 99452397; 48!579!6l2 The accompanying notes are an integral part of this statement. 4 ---PAGE BREAK--- - - - - - - - - PICKENS COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 RESTRICTED OTHER NONMAJOR TOTAL GOVERNMENTAL GENERAL SPLOST PROGRAMS GOVERNMENTAL FUNDS FUNDS REVENUES - Taxes $ 19,279,810 $ 5,394,078 S S 102,221 $ 24,776,109 - Licenses and permits 470,932 470.932 — Intergovernmental 3,656,246 2,301,648 159,343 5.117237 — Fines and forfeilnres 287,639 340,556 88,954 717,149 - Charges for services 2,925,036 214,301 819,844 3,959,181 - Contributions and donations 9,525 17,001 44,163 70,689 Investment income 10,729 13,502 1,443 5,040 30,714 Miscellaneous 98.1 17 343 98,460 TOTAL REVENUES 26,738,034 5,407,580 2,874,949 1.219.908 36,240,471 EXPENDITURES Current Expenditures General government 3,588,495 - ' 3,588,495 - — Judicial 3,305,295 2,069,127 12,172 5,386,594 - Public safety 1 1,831,467 245,678 1,503,683 13,580,828 Public works 2,925,051 3,023,254 5,948,305 - - Public health and welfare 224,522 372,228 596,750 Recreation and culture 1,013,168 - 1,013,168 Housing and development 63 8,970 - - 30,338 669,308 Intergovernmental - 1,208,599 490,619 140,554 1,839,772 Capital outlay 2,598,611 1,213,552 - - 3,812,163 Debt service Principal 205,137 150,808 - 76,073 432,018 Interest 76.605 4,658 — 2.040 83,303 TOTAL EXPENDITURES 26,407,321 5,846,549 2.93 1,974 1.764.860 36.950304 EXCESS (DEFICIENCY) OF REVENUES 0VER(UNDER) 330,713 (438,969) (57,025) (544,952) (710.233) EXPENDITURES OTHER FINANCING SOURCES (USES) - Sale of county property 154,095 — - 154,095 Issuance of notes payable — 1,030,000 - - 1,030,000 in ~ - 75,053 597,649 672,702 Transfers out - - (672.702) (2331662) (906,364) TOTAL OTHER FINANCING SOURCES (USES) (518,607) 796.338 75.053 597,649 950,433 NET CHANGE IN FUND BALANCES (187,894) 357,369 18,028 52.697 240.200 FUND BALANCES, Beginning of year 9,058,891 2,454,006 314,848 328 234 12,155,979 FUND BALANCES, End of year $ 858701997 $ 2l8l1!375 $ 332i876 $ 380931 $ l2I396!179 The accompanying notes are an integral part of this statement. 5 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Net change in fund balances (page 5) $ 240,200 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlays Depreciation expense In the statement of activities, only the gain/loss on the sale of various capital assets is reported, whereas in the govemmental funds, the proceeds from the sale increase ﬁnancial resources. Thus, the change in net position diﬂers from the change in fund balance by the net book value of the capital assets sold. Net book value of capital assets sold Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Fina 3,8 12,1 63 §2,466,3l 1) (1,775) 1,535,294 3:340 1,345,852 (1,775) Revenues reported in the funds that relate to prior years are not reported as revenue in the statement of activities. 1,538,634 Property taxes Fines (1,428,539) 340,933! Under the modiﬁed accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available ﬁnancial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are repoxted regardless of when ﬁnancial 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. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, where as these amounts are deferred and amortized in the statement of activities. This adjustment combines the net change of two balances. Proceeds ﬁom bormwing including premiums and discounts Principal payments on long-term debt Accrued landﬁll closure/postclosure, cunent year Accmed landﬁll closure/postclosure, prior year (1,030,000) 432,018 (450,000) 377,600 (1,469,472) 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 govemmental funds. Compensated absences, current year Compensated absences, prior ymr Net OPEB obligation is not available during the current period and therefore is not reported in the funds and changes in the OPEB plan actuarial assumptions are reported in the defexred outﬂows and deferred inﬂows. End of year - net OPEB liability Beginning of year - net OPEB liability End of year - deferred outﬂows Beginning of year - deferred outﬂows End of year - deferred inﬂows Beginning of year - deferred inﬂows (347,492) 306,703 (903,337) 964,539 2,271 (28,750) (24,325) — (670,382) (40,789) Net pension liability is not available during the current period and therefore is not reported in the funds and changes in the ACCG pension plan actuarial assumptions are reported in deferred outﬂows and deferred inﬂows. End of ywr - net pension liability Beginning of year - net pension liability End of year - deferred outﬂows Beginning of year - deferred outﬂows End of year - defemed inﬂows Beginning of year - defemad inﬂows (9,754,257) 7,091,043 2,880,885 (1,404,223) — 475,078 10,398 (71 1,474) Rounding Changes in net position of governmental activities (page 2) $ 241 1 193 The accompanying notes are an integral part of this statement. 6 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2019 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRPORT FUND FUND TOTAL ASSETS Current Assets Cash $ 800 $ $ 800 - Receivables (net of allowance for uncollectibles) 249,226 13,770 262,996 Interfund receivables 131,585 131,585 — Inventories 27,401 59,090 86,491 Restricted assets: Customer deposits 7,752 7,752 — TOTAL CURRENT ASSETS 416,764 72,860 489,624 Assets Capital assets Capital assets not being depreciated 452,161 7,398,412 7,350,573 Capital assets being depreciated 19,680,672 2,975,065 22,655,737 Less: accumulated depreciation (9,386,634) (1,265,§70) 10,652,509 TOTAL CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION) 10,746,199 9,107,607 19,853,806 TOTAL NONCURRENT AS SETS 10,746,199 9,107,607 19,853,806 TOTAL AS SETS 11,162,963 9,180,467 20,343,430 LIABILITIES Current Liabilities Accounts payable 130,650 42,333 172,983 Other accrued items 22,049 3,918 25,967 Interfund payables 2,150,833 891,388 3,042,221 Uneamed revenue 20,357 10,500 30,857 Compensated absences payable 5,859 5,859 - Revenue bonds payable 517,000 263,671 780,671 Accrued interest payable 11,290 11,290 — TOTAL CURRENT LIABILITIES 2,858,038 1,211,810 4,069,848 Noncurrent Liabilities Compensated absences payable 2,511 2,511 — - Notes from direct borrowings 1,568,477 1,568,477 Revenue bonds payable 5,248,000 4,483,267 9,731,267 TOTAL NONCURRENT LIABILITIES 6,818,988 4,483,267 11,302,255 TOTAL LIABILITIES 9,677,026 5,695,077 g372,103 NET POSITION Net investment in capital assets 3,412,722 4,360,669 7,773,391 Unrestricted (1,926,785) @7s,279) (2,802,064) TOTAL NET POSITION $ 12485937 $ 3,485,390 $ 4,971,327 The accompanying notes are an integral part of this statement. 7 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2019 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRPORT FUND FUND TOTAL OPERATING REVENUES Charges for sales and services: Pledged as security for revenue bonds: - Water sales $ 2,430,523 $ $ 2,430,523 Water connection fees 191,548 191,548 - - Other 529 529 — Charges for services-other 732,359 732,359 Total Operating Revenues 2,622,071 732,888 3,354,959 OPERATING EXPENSES Salaries and beneﬁts 662,383 93,563 755,946 Other services and charges 1,096,334 51 1,460 1,607,794 Depreciation 669,889 127,21 1 797,100 Professional fees 6,678 6,678 - - Repairs and maintenance 21,916 21,916 Total Operating Expenses 2,428,606 760,828 3,189,434 OPERATING INCOME (LOSS) 193,465 (27,940) 165,525 NONOPERATING REVENUES (EXPENSES) Interest expense (180,688) (274,517) (455,205) Gain (loss) on sale of capital assets 1,401 1,401 - Total Nonoperating Revenues (Expenses) (179,287) (274,517) (453,804) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 14,178 (302,457) (288,279) Capital grants 141,664 141,664 - Pledged as security for revenue bonds: Developers Cash 36,333 36,333 - - - Transfer in 233,662 233,662 CHANGE IN NET POSITION 284,173 (160,793) 123,380 TOTAL NET POSITION, Beginning of year 1,201,764 3,646,183 4,847,947 TOTAL NET POSITION, End of year $ 1,485,937 $ 3,485,390 $ 4,971,327 The accompanying notes are an integral part of this statement. 8 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2019 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRPORT FUND FUND TOTAL CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customer $ 2,617,799 $ 721,730 $3,339,529 Payments to suppliers (1,246,466) (586,684) 1,833,150) Payments to employees (656,280) (92,196) (748,476) Net cash provided by (used in) operating activities 715,053 42,850 757,903 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (1,093,529) (304,805) 1,398,334) Proceeds from sale of capital assets 1,401 1,401 - - Proceeds ﬁ'om new debt 394,808 394,808 - Proceeds from capital grants 141,664 141,664 - in 233,662 233,662 Principal payments on debt (525,137) (525,137) - - Payments to escrow agent 12,505 12,505 Interest paid (1 81,677) (274,517) (456,194) Net cash provided (used) by capital and related ﬁnancing activities (1 552,779 (42,850) 1,595,625) - Net increase (decrease) in cash and cash equivalents (837,722) (837,722) - CASH, Beginning of year 838 522 838,522 - CASH, End of year $ 800 $ $ 800 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ 193,465 $ (27,940) $ 165,525 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 669,889 127,21 1 797,100 (Increase) decrease in: Accounts receivable 32,061 (13,770) 18,291 - Inventory (16,239) (16,23 9) Increase (decrease) in: Accounts payable 4,851 (88,263) (83,412) Compensated absences 356 356 - Other accrued items 5,747 1,367 7,1 14 Deferred revenue (36,333) 2,612 (33,721) Interfund payables (154,983) 57,§72 (97.1 1 1) Net cash provided by (used in) operating activities $ 715,053 $ 42,850 $ 757,:9=Q_§= The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS December 31, 2019 ASSETS Cash $ AGENCY FUNDS 1,557,792 TOTAL ASSETS 1,557,792 LIABILITIES Amount held in trust $ 1,557,792 TOTAL LIABILITIES $ 1 557,792 The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION December 31, 2019 INDUSTRIAL HEALTH DEVELOPMENT DEPARTMENT AUTHORITY TOTAL ASSETS Cash $ 325,001 $ 208,548 $ 533,549 Capital lease receivable 168,000 168,000 - - Receivables (net of allowance for uncollectiblcs) 60,595 60,595 - Inventories 470 470 Non-current assets: - Capital lease receivable 2,352,000 2,352,000 - Net pension obligation 7,326 7,326 Capital assets: - Capital assets being depreciated 157,737 157,737 - Less: accumulated depreciation (87.950) (87350) - Capital assets, net of depreciation 69.787 69.787 TOTAL ASSETS 463.179 2.728.548 3.191.727 DEFERRED OUTFLOWS OF RESOURCES - Pension expense 139,017 139,017 - OPEB expense 129,148 129,148 TOTAL DEFERRED OUTFLOWS OF RESOURCES 268,165 — 268,165 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 731.344 2.728.548 3 459 892 LIABILITIES Accounts payable 1,961 1,961 - - Unearned revenue 859,392 859,392 Noncurrent liabilities: Due within one year Compensated absences payable 8,848 8,848 - - Revenue bonds payable 75,299 75,299 Due in more than one year Compensated absences payable 8,848 8,848 - - Net OPEB liability 245,002 245,002 - Net pension liability 402,100 402,100 - Revenue bonds payable 1,578,840 1,578,840 TOTAL LIABILITIES 666.759 2.513.531 3 180 290 DEFERRED INFLOWS OF RESOURCES - Pcnsion expense 15,421 15,421 - OPEB expense 134.131 134.131 TOTAL DEFERRED INFLOWS OF RESOURCES 149.552 - 149.552 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 816.311 2.513,53l 3 329 842 NET POSITION - Net investment in capital assets 69,787 69,787 Restricted for: - Public health and welfare 32,003 32,003 Unrestricted L1 864757) 215.017 28.260 TOTAL NET POSITION $ (84,967) $ 215,017 $ 1302050 The accompanying notes are an integral part of this statement. 11 ---PAGE BREAK--- - - PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 ..PROGRAM ....NET (EXPENSE) AND CHANGES IN NET POSITION.... CHARGES OPERATING CAPITAL FOR GRANTS AND GRANTS AND HEALTH DEVELOPMENT FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS DEPARTMENT AUTHORITY TOTAL COMPONENT UNITS GOVERNMENTAL ACTIVITIES Health Department $ 635,898 $ 328,561 $ 379,315 $ $ 71,978 $ $ 71,978 - — Industrial Development Authority 68,881 1(g,566 20,000 52,685 52,685 TOTAL COMPONENT UNITS $ 704.779 $ 430.12; $ 3799115‘ $ 20,000 71.978 52.685 124.663 GENERAL REVENUES Unrestricted investment earnings 55 137 192 TOTAL GENERAL REVENUES AND TRANSFERS 55 137 192 CHANGES IN NET POSITION 72,033 52,822 124,855 NET POSITION, Beginning (157,000) 162,195 5,195 NET POSITION, Ending $ (84% $ 215.017 $ 130.050 The accompanying notes are an integral part of this statement. 12 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The ﬁnancial statements of PICKENS COUNTY, GEORGIA have been prepared in confonnity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and ﬁnancial reporting principles. The more signiﬁcant of the County's accounting policies are described below. REPORTING ENTITY The County is a political subdivision of the State of Georgia, located about 60 miles north of Atlanta. The County is governed by three elected Commissioners. In addition, there are four Constitutional Ofﬁcers: the Tax Commissioner, Probate Court Judge, Sheriff, and Clerk of Superior Court. The Constitutional Officers are elected county wide. The Board of County Commissioners budgets and approves all funding used by the separate Constitutional Ofﬁcers. As required by generally accepted accounting principles, these ﬁnancial statements present the County and its component units, entities for which the County is considered to be ﬁnancially accountable and for which a ﬁnancial beneﬁt or burden relationship is present. Each discretely presented component unit is reported in a separate column in the combined ﬁnancial statements to emphasize it is legally separate from the County. Brief descriptions of discretely presented component units follow: PICKENS COUNTY DEPARTMENT OF PUBLIC HEALTH: The Health Department consists of a seven member board including a County Commissioner, and two members as appointed by the County Board of Commissioners. The County has the authority to modify and approve the Health Department's budget and the ability to approve environmental health services. The Health Department has a June 30 year-end and is presented as a governmental ﬁmd type component unit. The Health Department's ﬁnancial statements can be obtained by writing to the Pickens County Health Department, 60 Health Way, Jasper, Georgia 30143. INDUSTRIAL DEVELOPMENT AUTHORITY OF PICKENS COUNTY: The Industrial Development Authority is governed by a seven member board, with a voting majority being appointed by the County. The Authority is responsible for promoting industrial and commercial development within Pickens County. Although the County does not have the authority to approve or modify the budget of the Authority, the County does provide ﬁnancial support. The Authority is reported as a proprietary fund type component unit. Separate ﬁnancial statements are not prepared for the Authority. 13 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The govemment-wide ﬁnancial statements the statement of net position and the statement of activities) report information on all of the nonﬁduciary activities of the primaly government and its component units. For the most part, the effect of interfund activity has been removed from these statements. 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 ﬁ'om 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 ﬁlnds, even though the latter are excluded from the govemment-wide ﬁnancial statements. Major individual governmental funds are reported as separate columns in the ﬁmd ﬁnancial statements. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the ﬁnancial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. 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 (ﬁduciary funds use the economic resources measurement focus to indicate that agency funds have no measurement focus). Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of 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. 14 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers property taxes as available if they are collected by the end of the current ﬁscal year. Other revenues susceptible to accrual are considered available if they are collected within 60 days of the end of the current ﬁscal period for which they are imposed. 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, sales tax, franchise taxes, charges for services, 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. All other revenue items are considered to be measurable and available only when cash is received by the County. The County reports the following major governmental funds: The General Fund is the County’s primary operating ﬁmd. It accounts for all ﬁnancial resources of the general government, except those required to be accounted for in another fund. The SPLOST Capital Projects Fund accounts for funds received from a local 1% sales tax, passed by the 2014 Special Purpose Local Option Sales Tax referendum, which is reserved for construction of various capital projects. The Restricted Programs Fund is used to account for multiple court administered state reimbursement grants restricted speciﬁcally for the Judicial Programs. The County reports the following major proprietary funds: The Water Fund accounts for the development, operation, and maintenance of the utility system that provides water services in Pickens County. The Airport Fund accounts for the development, operation, and maintenance of the County airport and its facilities. The Pickens County Airport Authority provides oversight of capital projects and has delegated operations and long-term debt obligations to the County. 15 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Additionally, the County reports the following fund types: Special revenue funds are used to account for the proceeds of speciﬁc revenue sources that are legally or donor restricted to expenditures for speciﬁed purposes. Capital projects funds account for acquisition and construction of the County’s capital assets. Agency funds are custodial in nature and do not represent results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. These ﬁmds are used to account for assets that the Tax Commissioner, Clerk of Superior Court, Probate Court, Magistrate Court, and Sheriff hold for others in an agency capacity. As a general rule, the effect of interfund activity has been eliminated from the government-wide ﬁnancial statements. Exceptions to this general rule are interfund services provided and used which are not eliminated in the process of consolidation. Elimination of these charges would distort the direct costs and program revenues for the various functions concerned. 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. 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 nonoperating 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. The principal operating revenues for the Water enterprise ﬁmd are charges to customers for sales and services. Operating expenses for the Water enterprise fund include the cost of services, administrative expenses, and depreciation on capital assets. The principal operating revenue for the Airport enterprise fund is the sale of fuel, hanger rental fees, and other miscellaneous charges for services. Operating expense for the Airport enterprise fund include the cost of fuel, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this deﬁnition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as they are needed. 16 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 ASSETS, LIABILITIES AND NET POSITION OR EQUITY Deposits and Investments The County’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Investments are recorded at fair Value based on quoted market prices as of the balance sheet date. Increases or decreases in fair value during the year are recognized as part of investment income. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the ﬁscal year are referred to as either “interﬁmd receivables/payables” the current portion of interﬁlnd loans) or “advances to/from other funds” the non-current portion of interfund loans). All other outstanding balances between ﬁmds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the govemment-wide ﬁnancial statements as “internal balances.” Advances between funds, as reported in the fund ﬁnancial statements, are offset by a ﬁmd balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable, available ﬁnancial resources. All trade and property tax receivables are shown net of an allowance of uncollectibles. Property taxes attach as an enforceable lien on property as of January 1. The 2019 taxes were levied October 4, 2019, and were due December 4, 2019. Interest and penalties are assessed on taxes not paid by this date. The taxes are subject to lien 90 days after the due date. Property taxes levied during 2019 are to fund operations for the County's ﬁscal year beginning J anuaxy 1, 2019. The County’s property taxes were levied on the assessed values of all real and personal property including mobile homes and motor Vehicles located in the County. Inventories and Prepaid Items Inventories, consisting of expendable supplies, not held for resale are valued at cost using the ﬁrst-in/ﬁrst-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. 17 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Certain payments to Vendors reﬂect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund ﬁnancial statements. The costs of governmental fund-type prepaids are recorded as expenditures when consumed rather than when purchased. Bond Premiums and Discounts Premiums and discounts are deferred and amortized over the lives of the bonds and loans on a straight-line basis, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Restricted Assets Certain proceeds of the County’s capital leases or debt issues are classiﬁed as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable lease or debt agreements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (i.e. roads, bridges, sidewalks, culverts, and similar items) are reported in the applicable governmental activities column in the government—wide ﬁnancial statements. Capital assets are deﬁned by the County as assets with an initial, individual cost of $5,000 and an estimated useful life in excess of three years or an acquisition of land at any cost. Roads, bridges, and culverts are deﬁned by the County as projects with an individual cost of $5,000 or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Roads, bridges, and culverts acquired prior to July 1, 1980 have not been reported. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Assets Years Buildings 25-50 Vehicles 2-15 Building Improvements 10-25 Infrastructure 10-30 Machinery and Equipment 3- 1 5 Land N/A Furniture and Fixtures 5-20 Land improvements 12-1 5 18 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Deferred Outﬂows/Inﬂows ofResources In addition to assets, the statement of ﬁnancial position will sometimes report a separate section for deferred outﬂows of resources. This separate ﬁnancial statement element, deferred outﬂows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outﬂow of resources (expense/expenditure) until then. The County has two items that qualify for reporting in this category. These two items consist of the deferred charge in pension expense and deferred outﬂows related to OPEB expense. The deferred charge in pension expense represents contributions made into the deﬁned beneﬁt pension plan after the measurement date. These contributions will be recognized as pension expense in the next ﬁscal year. The deferred outﬂows related to OPEB expense represents employer contributions subsequent to measurement date. These contributions will be recognized as OPEB expense in the next ﬁscal year. In addition to liabilities, the statement of ﬁnancial position will sometimes report a separate section for deferred inﬂows of resources. This separate ﬁnancial statement element, deferred inﬂows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inﬂow of resources (revenue) until that time. The County has three items that qualify for reporting in this category. These three items consist of unavailable revenue, deferred inﬂows related to pension expense, and deferred inﬂows related to OPEB expense. Unavailable revenue, arises under the modiﬁed accrual basis of accounting and accordingly is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and ﬁnes. The deferred inﬂows related to pension expense represents differences between expected and actual experience with regard to economic or demographic factors in the measurement of the total pension liability and changes of assumptions about future economic or demographic factors or of other inputs. These deferred inﬂows will be recognized in pension expense using a systematic and rational method over a closed ﬁve-year period, beginning with the current reporting period. The deferred inﬂows related to OPEB expense represents differences between expected and actual experience with regard to economic or demographic factors in the measurement of the total OPEB liability and changes of assumptions about future economic or demographic factors or of other inputs. These deferred inﬂows will be recognized in OPEB expense using a systematic and rational method over a closed ﬁve-year period, beginning with the current reporting period. 19 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Compensated Absences It is the County’s policy to permit employees to accumulate earned but unused vacation and sick pay beneﬁts. In accordance with the provisions of Statement of Governmental Accounting Standards No. 16, “Accounting for Compensated Absences,” no liability is reported for unpaid accumulated sick leave because the beneﬁts are paid only upon illness of an employee, and the amount of such payments cannot be reasonably estimated. All Vacation pay is accrued when incurred in the government-wide and proprietary ﬁnancial statements. The liability of the proprietary funds is recorded as an expense and a liability of those ﬁmds as the beneﬁts accrue to the employees. In governmental fund types, a liability is recorded only if the liability has matured and is expected to be liquidated with expendable and available ﬁnancial resources. Long-term Obligations In the govemment-wide ﬁnancial statements and proprietaxy fund types in the fund ﬁnancial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary fund type statement of net position. Pensions For pulposes of measuring the net pension liability, deferred outﬂows of resources and deferred inﬂows of resources related to pensions, and pension expense, information about the ﬁduciaxy net position of the Association of County Commissioners of Georgia (ACCG) Pickens County Deﬁned Beneﬁt Plan (Plan) and additions to/from from the Plan's ﬁduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, beneﬁt payments are recognized when due and payable in accordance with the beneﬁt terms. Investments are reported at fair Value. Other Post-employment Beneﬁts (OPEB) For purposes of measuring the net OPEB liability, deferred outﬂows of resources and deferred inﬂows of resources related to OPEB, and OPEB expense, information about the ﬁduciary net position of the Pickens County Other Postemployment Beneﬁts Plan (the Plan) and additions to/deductions from the Plan's ﬁduciary net position have been detennined on the same basis as they are reported by the Plan. For this puxpose, beneﬁt payments are recognized when due and payable in accordance with the beneﬁt terms. Fund EquityﬂVet Position Fund equity at the governmental ﬁ.1nd ﬁnancial reporting level is classiﬁed as "fund balance." Fund equity for all other reporting is classiﬁed as "net position." 20 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - Fund Balance Generally, fund balance represents the difference between the current assets and current liabilities. 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 those funds can be spent. Fund balances are classiﬁed as follows: - Nonspendable Fund balances are reported as nonspendable when the amounts carmot be spent because they are either not in spendable form items that are not expected to be converted to cash like inventories and prepaid items) or 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 prior to the end of the ﬁscal year. In order to modify or rescind the commitment, the Board of Commissioners must adopt another resolution. - Assigned Fund 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 Board of Commissioners has authorized the County's ﬁnance director to assign fund balances. - Unassigned Fund balances are reported as unassigned as the residual amount 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 other governmental funds. - Net Position Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any debt used for the acquisition, construction, or improvement of those assets. In determining the outstanding balance of any borrowing, proceeds of that debt which has not been spent is deducted. Accounts payable for costs related to acquisition, construction, or improvement of those capital assets is considered debt for this calculation. Net position is reported as restricted as described in the fund balance section above. All other net position is reported as unrestricted. 21 ---PAGE BREAK--- - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 When both restricted and unrestﬁcted resources are available for use, it is the County’s policy to use restricted resources ﬁrst, then committed, assigned, and unassigned (or unrestricted) resources as they are needed. Net Investment in Capital Assets The "Net investment in capital assets" reported on the government-wide statement of net position as of December 31, 2019 are as follows: Governmental Business—type Net investment in capital assets Activities Activities Cost of capital assets $ 73,670,168 $ 30,506,3 10 Less accumulated depreciation (29.079.972) (10.652.504) Book value 44,590,196 19,853,806 Less capital related debt (1,349,143) (12,080,4l 5) - Less capital related accounts payable (121.003) Net investment in capital assets $ 43,120,050 $ 7,773,391 Management Estimates The preparation of ﬁnancial statements in confonnity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. — NOTE 2 FUND BALANCE/NET POSITION The governmental activities statement of net position reports $4,351,136 of restricted net position, of which $176,875 is restricted by enabling legislation. Additional details related to fund balances at the governmental ﬁmd level are presented below: Restricted: General Fund Judicial Programs For unspent funds related to court related programs juvenile court fund, drug abuse fund, crime victims assistance fund, etc. $ 197,782 - Capital outlay projects For unspent funds from LMIG grant, capital leases and other debt 628,172 22 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 SPLOST Fund — Capital outlay projects For funds received from the imposition of the Special Purpose Local Option Sales Tax (SPLOST) restricted by the voter approved referendum. 2,811,375 Restricted Programs - Judicial Programs Used to account for multiple court administered state reimbursement grants adult drug court, mental health court, family drug court, etc.), and CDBG pass through grant funds from Department of Community Affairs. 332,876 Nonmajor Restricted Programs Funds Judicial Programs - - Law Library Used to account for surcharges on ﬁnes and forfeitures which are for the operation of the County Law Library and other expenditures as restricted by the OCGA-36-15. 392181 - Subtotal Restricted for Judicial Programs 39,181 - Public Safety Programs - Emergency E911 Telephone Services Fund For ﬁmd to operate the E911 center as restricted by the OCGA-46-5. 117,070 - Drug Task Force To account for funds received to operate multi- jurisdictional drug enforcement agency that actively pursues all levels of illegal drug activity. 38,489 - Sheriffs Special Revenue to account for funds from seizures to be used for law enforcement activities. 165 567 — Subtotal Restricted for Public Safety Programs 321,126 Housing and Development Programs - - Hotel/Motel Tax Fund To account for funds received to promote tourism, conventions, and trade shows. 20,624 Total Restricted Fund Balance § 4!351!136 - NOTE 3 STEWARDSHIP, COMPLLANCE AND ACCOUNTABILITY BUDGETARY INFORMATION The County Commission adopts an annual budget for all governmental fund types, prior to December 31, except for the Capital Projects Funds. The Capital Projects Funds are budgeted by the Board of Commissioners when capital budgets are approved. The operating budget includes proposed expenditures and the means of ﬁnancing them. The budget is legally enacted at a public meeting. 23 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Prior to October of each year, each department submits a proposed budget to the Board of Commissioners for review. Public hearings are held to discuss the proposed budget and to obtain input from the citizens of the County in December. These hearings are publicized in the local paper at least one week before the ﬁrst hearing, and the budget document is made available for public inspection during this week. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is the department level. Any changes in total departmental expenditures/expenses must be approved by the Board of Commissioners or Budget Ofﬁcer. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) at the legal level of budgetary control, which is the department level. Expenditures may not exceed the appropriations within a fund. Budgets, as reported in the ﬁnancial statements, are as originally passed by ordinance and subsequently amended. During the year, several supplementary appropriations are made as needed. The results are increases and decreases to the appropriations within the funds. All annual appropriations lapse at year end. DEFICIT FUND BALANCES There are no funds with deﬁcits. - NOTE 4 DEPOSITS AND INVESTMENTS PRIMARY GOVERNMENT - Custodial Credit Risk Deposits Custodial credit risk for deposits is the risk that, in the event of a bank failure, the government's deposits may not be returned. The County’s policies permit it to exceed the FDIC insured limit in making deposits in commercial banks and savings and loans institutions if the ﬁmds are otherwise adequately secured. As of December 31, 2019, all deposits of the County were insured or collateralized. Depositoﬁes may secure deposits of public funds using the dedicated method or the pooled method as described below: Under the dedicated method, a depository shall secure the deposits of each of its public depositors separately. State statutes require collateral pledged in the amount of 110% of deposits. 24 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Under the pooled method, a depository shall secure deposits of public bodies which have deposits with it through a pool of collateral established by the depository with a custodian for the beneﬁt of public bodies having deposits with such depository as set forth in code Section 45-8-13.1. State statutes require collateral pledged in the amount of 110% of deposits under the single bank pooled method or at least 100% of amounts greater than 20% of the daily pool balance held by any one covered depository under the multibank pooled method. The County utilized both methods to secure its deposits of public ﬁmds. Interest Rate Risk Interest rate risk is the risk that changes in interest rates may adversely affect an investment's fair value. Since the price of a bond ﬂuctuates with market interest rates, the risk that an investor faces is that the price of a bond held in a portfolio will decline if market interest rates rise. The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk State statutes authorize the County to invest in obligations of the U.S. Treasury and of its agencies and instrumentalities; bonds or certiﬁcates of indebtedness of this state or of other states and of its agencies and instrumentalities; certiﬁcates of deposits of banks insured by FDIC; the State of Georgia Local Government Investment Pool; repurchase agreements; bonds, debentures, notes or other evidence of indebtedness of any solvent corporation of the United States government. The County does not have an investment policy that would ﬁ1rther limit these investment choices. A hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs requiring that the most observable inputs be used when available was establish. Level 1 within the hierarchy states that valuations are based on unadjusted quoted market prices for identical assets in active markets. Level 2 within the hierarchy states that valuations are based on observable inputs other than Level 1 process, such as quoted prices for similar assets, quoted prices in inactive markets and other inputs that may be corroborated by observable market data. Level 3 assets are not actively traded, and their values can only be estimated using a combination of complex market prices, mathematical models, and subjective assumptions. 25 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 As of December 31, 2019, the only assets that are measured at fair value on a recurring basis in periods subsequent to initial recognition are investments. Such investments are classiﬁed within Level 1 of the valuation hierarchy. As of December 31, 2019, the only assets measured at fair value on recurring basis in periods subsequent to initial recognition are investments. Such investments are classiﬁed within Level 1 or Level 2 of the valuation hierarchy. As of December 31, 2019, the Law Library (a Non-Major Governmental Fund) had the following investments: Investment Maturities (in Years)/FMV Level - Fair Market Value Investment Type Level 1 Less Than 1 Rating Certiﬁcate of Deposit $ 23,193 $ 23,193 N/A Total $ 23,193 $ 23,193 Maximum Investment 100% Concentration of Credit Risk The County places no limit on the amount it may invest in any one issuer. Foreign Currency Risk The County has no investments denominated in a foreign currency. 26 ---PAGE BREAK--- - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 5 RECEIVABLES PRIMARY GOVERNMENT Receivables as of year-end for the County’s individual major funds and nonmajor governmental funds in the aggregate including the applicable allowances for uncollectible accounts are as follows: Nonmajor General Restricted Governmental Fund SPLOST Programs Funds Receivables: Property Taxes $ 1,808,615 $ $ $ - Accounts 1,083,559 279,749 134,533 Intergovernmental 69.736 530.050 40.317 13.717 Total Gross Receivables 2,961,910 530,050 320,066 148,250 Less: Allowance for Uncollectibles 1212,8461 Total Net Receivables § 2a749!064 § 530E050 § 3202066 § 148E250 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 Uneamed Total Delinquent property taxes receivable (General - Fund) $ 1,535,294 $ $ 1,535,294 Hotel/Motel tax promissory note for payment in - arrears (Nonmajor Funds) 3,340 3,340 Total unearned revenue for governmental funds $ 1.538.634 1,_538,634 § - § 27 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Property taxes receivable at December 31, 2019, consist of the following: Digest General Year Fund 2019 $ 985,573 2018 339,843 2017 159,946 2016 77,038 2015 54,296 2014 56,333 2013 46,744 2012 882842 Total $ 128082615 BUSINESS TYPE ACTIVITIES Receivables as of year-end for the County's enterprise funds, including the applicable allowances for uncollectible accounts are as follows: Water Fund Airport Fund Total Receivables: Accounts $ 265,758 $ 13,770 $ 279,528 Total Gross Receivables 265,758 13 ,770 279,528 Less: Allowance for Uncollectibles Total Net Receivables § (1 6.532) 2493226 § - 13!770 § (16532) 262a996 DISCRETELY PRESENTED COMPONENT UNITS Receivables as of year-end for the County's component units, including the applicable allowances for uncollectible accounts are as follows: Health Degartment Receivables: Accounts $ 47,701 Intergovernmental 122894 Total Gross Receivables 60,595 Less: Allowance for Uncollectibles - Total Net Receivables 60!595 § 28 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The lease receivable in the County's component units consisted of the following at December 31, 2019: - Lease receivable made to a local business North Georgia Financial Holdings, LLC through the Industrial Development Authority of Pickens County. - Payments receivable in installments of $10,500 during ﬁscal year 2014, $12,000 during ﬁscal year 2015, and $14,000 for all years thereafter, including imputed interest at 5.985%. This lease is secured by the County and matures on December 1, 2034. $ 2,520,000 Less: Current portion 168,000} ( Long-term portion 2 352 000 § At December 31, 2019, scheduled maturities of the lease receivable were the following: 2020 $ 168,000 2021 168,000 2022 168,000 2023 168,000 2024 168,000 - 2025 2029 840,000 - 2030 2034 672,000 Total maturities of lease receivable 2,352,000 Less unearned interest income (8593 921 Total net book value of lease receivable $ 1z492,608 29 ---PAGE BREAK--- - - - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 6 CAPITAL ASSETS PRIMARY GOVERNMENT Capital asset activity for the year ended December 31, 2019, was as follows: Beginning Ending Governmental Activities: Balance Additions Retirements Transfers Balance Non-Dcpreciable Assets: Land and improvements $ 4,371,996 $ $ $ S 4,371,996 - - Construction in progress 387.942 1 18.253 (387,942) 1 18.253 - Total non—depreciable capital assets 4.759.938 1 18.253 (387,942) 4.490.249 Depreciable Assets: Land improvements 1 ,O13 ,402 1 3 ,402 - - Buildings and improvements 37,493,960 626,649 387,942 38,508,551 - Machinery and equipment 8,203,414 358,520 (44,320) 8,517,614 Vehicles 9,875,750 747,388 10,623,138 - — 8.555.861 1.961.353 10.517214 Total depreciable capital assets 65.142387 3.693.910 (44,320) 387,942 69.179319 Less Accumulated Depreciation for: Land improvements 602,915 31,460 634,3 75 — - — - Buildings and improvements 8,307,433 820,823 9,128,256 - Machinery and equipment 5,865,434 538,609 (42,545) 6,361,498 Vehicles 7,538,830 629,024 8,167,854 - - 4.341.594 446.395 4.787.989 Total accumulated depreciation 26.656.206 2.4663 1 1 (42,545) 29,079,972 ' Total depreciable capital assets, net 38.[PHONE REDACTED].599 (1.775) 387.942 40.099947 Governmental activities capital assets, net $ 43!246i1 19 $ 1§345!852 $ (1.775) $ - $ 44!590,l96 Additions to governmental activities capital assets for the ﬁscal year ending December 31, 2019, consist of the following: Capital Outlay $ 3 ,812,163 Total § 3a812a163 Non—depreciab1e capital assets additions 1 18,253 $ Depreciable capital assets additions 3z693,910 Total § 3a812!163 30 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 538,646 Judicial 947,559 Public Safety 1,123 Public Works 772,461 Public Health and Welfare 38,253 Recreation and Culture 86,661 Housing and Development 81 608 Total depreciation expense-govemmental activities § 2a466a311 The County has authorized construction projects. The remaining costs are split between the portion of the contracts that have been entered into for which the work had not been done prior to December 31, 2019, and the remainder of the authorized project expenditure for which contracts have not been entered into as of year end. The source of ﬁnancing for the remaining project cost is noted below: Expended Contracts Authorized Project to 1n Not Authorization Date Progress Obligated Sources Governmental Activities: - Recycle Center Property $ 1,3 00,000 $ 10,000 $ $1,290,000 Recycle Center Public Works/ - Public Works Building 1,049,770 108,253 941,517 General Fund Total Governmental Activities § 2!349a770 § 118E253 §941!517 §1!290!000 31 ---PAGE BREAK--- - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 BUSINESS TYPE ACTIVITIES Capital asset activity for the year ended December 31, 2019, was as follows: Beginning Ending Balance Additions Retirements Transfers Balance Business-type Activities: Non-Depreciable Assets: Land and improvements $ 1,690,594 $ $ $ 1,690,594 Construction in progress 7.727.221 11,567,243) 6 159 979 - - Total non—depreciab1e capital assets 9,417,815 (1,567,243) 7,850,573 Depreciable Assets: Land improvements 865,080 865,080 Inﬁ'astructure 16,435,832 1,027,996 662,278 18,126,106 Buildings and improvements 641,509 296,453 904,965 1,842,926 Machinery and Furniture 1,322,638 110,215 1,432,854 - Vehicles 388,771 388.771 Total depreciable capital assets ]9,653.830 1,434.664 1.567.243 22 655 737 Less Accumulated Depreciation for: Land improvements 494,136 59,981 554,117 - - Infrastructure 7,889,122 555,193 8,444,314 - Buildings & Improvements 421,037 48,070 469,107 - Machinery & Furniture 786,786 102,694 889,479 - Vehicles 264.325 31.162 295.487 — Total accumulated depreciation 9 855 406 797.100 10 652 504 Total depreciable capital assets, net 9.798.424 637.564 1.567.243 12,003,233 - - Business-type activities capital assets, net §19!2l6!239 $ 637,564 $ $ _§19!853!806 Depreciation expense was charged to functions/programs of the business-type activities as follows: Business-type Activities: Water 669,889 Airport 127,211 Total depreciation expense-business type activities 797E100 § 32 ---PAGE BREAK--- - - - - - - - - - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The business-type activity ﬁmds have authorized construction projects. The remaining costs are split between the portion of the contracts that have been entered into for which the work had not been done prior to December 31, 2019, and the remainder of the authorized project expenditure for which contracts have not been entered into as of year end. The source of ﬁnancing for the remaining project cost is noted below: Contracts Authorized Project Expended in Not Authorization To Date Progress Obligated Sources Business Type Activities: Grandview Water - Treatment Plant $ 1,100,000 $ 22,929 $ $ 1,077,071 GEFA Loan - Grandview Water Lines 1,413,000 45,549 1,367,451 GEFA Loan North T-Hanger Area - Development 100,700 92,700 8,000 Airport Authority Loan Airport Improvements 5,923,726 5,923,726 FAA Grant/ DA Bonds - Airport Layout Plans 78,594 75,075 3,519 FAA Grant/State Grant Total Business Type Activities DISCRETELY PRESENTED COMPONENT UNITS Activity for the Health Department for the year ended December 31, 2019, was as follows: Beginning Ending Balance Additions Retirements Balance Governmental Activities: Depreciable Assets: Site Improvements $ 74,694 $ $ $ 74,694 Machinery and Equipment 52,002 52,002 Furniture & Fixtures 11,030 11,030 — — Vehicles 20.01 1 20.011 Total depreciable capital assets 157.737 157.737 Less Accumulated Depreciation for: - Site Improvements 16,722 6,297 23,019 - Machinery and Equipment 28,715 5,175 33,890 Furniture and Fixtures 11,030 11,030 Vehicles 20.011 20,011 Total accumulated depreciation 76.478 11,472 87.950 - - Capital Assets, net $ 81; $ (11.47;) $ $ 69.787 33 ---PAGE BREAK--- - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 7 SHORT TERM DEBT The County paid off a tax anticipitation note for operating purposes of $5,500,000 at a ﬁnancial institution. The note carded an interest rate of 2.99% and matured on December 31, 2019. As of December 31, 2019, the principal was paid in full. The short term borrowings interest incurred and expensed for the period ended December 31, 2019 was $68,909. Short-term liability activity for the year ended December 31, 2019, was as follows: Governmental Activities Beginning Ending Balance Additions Reductions Balance Tax anticipation note $ $ 5,500,000 $ (5,500,000) $ Total short-term Liabilities 5!500!000 §g5!500!000; § - § § — - NOTE 8 LONG TERM DEBT Long-tenn liability activity for the year ended December 31, 2019, was as follows: Beginning Ending Due Within Due Aﬂzer Balance Additions Reductions Balance One Year One Year Governmental Activities: Notes from direct borrowings S 35,449 $ 1,030,000 $ (35,449) $ 1,030,000 S 92,598 $ 937,402 Capital leases 715,712 (396,569) 319,143 300,193 18,950 - - Net OPEB liability 964,539 3,196 (64,398) 903,33 7 903 ,337 — Net pension liability 7,091,043 3,740,947 (1,077,733) 9,754,257 9,754,257 Landﬁll postclosure 377,600 127,988 (55,588) 450,000 30,000 420,000 Compensated absences 306.702 255.481 (214691) 347.492 243,244 104,247 Governmental activities long-term liabilities $ 9!491!045 $ 5,157,612 $ !1!844a428g $ l2!804!229 $ 666035 $ l2138!l93 Business-type Activities: Bonds payable $ 10,622,130 $ 394,808 $ (505,000) $ 10,511,938 $ 780,671 $ 9,731,267 Notes from direct borrowings 1,568,477 1,568,477 1,568,477 - — - Capital leases 7,632 (7,632) Compensated absences 8.014 5,966 (5.610) 8.370 5,859 2.511 Business—type activities long-term liabilities $ 12,206,253 $ 400.774 $ ($183242; $ 12,088,785 S 7863530 $ 1l!302!255 GOVERNMENTAL ACTIVITIES Notes from Direct Borrowings The County has entered into an agreement with the Association of County Commissioners of Georgia to ﬁnance the purchase of land to be used for a facility to build, maintain, and repair roads, streets, sidewalks, and bridges in the original amount of $1,030,000 with an outstanding balance of $1,030,000 and secured with collateral of the Property and Maintenance Shop Building. The County may exercise a prepayment option to terminate this agreement and change the timing of repayment of outstanding amounts. This note has semi-annual payments ranging of $58,031, with an interest rate of 3.33% and matures in 2029. 34 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The annual requirements to amortize notes payable outstanding as of December 31, 2019, are as follows: December 31, Principal Interest Total 2020 $ 92,598 $ 23,463 $ 116,061 2021 94,769 21,293 1 16,062 2022 96,989 19,071 1 16,060 2023 99,263 16,799 1 16,062 2024 101,589 14,472 116,061 2025-2029 544,792 35,514 580,306 Total § 1a030!000 § 1303612 § 1a160!612 Capital Leases The County has entered into an agreement for the lease of certain equipment. The terms of the agreements meet the criteria of a capital lease as deﬁned by Accounting Standards Codiﬁcation 840 Leases, which deﬁnes a capital lease generally as one which transfers beneﬁts and risk of ownership to the lessee. This year, $240,384 was included in depreciation expense. The balance of these leases at December 31, 2019 is $319,143 for governmental activities. The County leases certain equipment under non-cancelable capital leases. The leases relate to equipment and vehicles for EMS, ﬁre, and road. Ownership of the related assets will be transferred to the County at the end of the lease terms. The assets acquired through capital leases are as follows: Governmental Activities Machinery and equipment $ 304,924 Vehicles 946,162 Less: Accumulated Depreciation 1659,6791 Total § 591E407 35 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2019, were as follows: Governmental Year Ending December 31, Activities 2020 $ 304,473 2021 19,089 - 2022 Total minimum lease payments 323,562 Less: amount representing interest (1 .93 % - 2.94%) 14,41 9 1 Present value of minimum lease payments § 3 19! 143 BUSINESS-TYPE ACTIVITIES Bonds Payable During 2015, the County issued $8,090,000 of revenue bonds (2015 Refunding Series) for a full refunding of the Authority’s Series 1995A, 1995B, and 2005 revenue bonds, which had been issued for the acquisition and construction of waterline infrastructure and secured with collateral of the water service infrastructure. The refunding was undertaken to reduce total future debt service payments. The reﬁmding resulted in an economic gain of $3,599,055. Bond payments are due in semi—a,rmual installments ranging from $184,944 to $324,772, with interest at 2.35%. As of December 31, 2019, the outstanding balance is $5,765,000. The bonds mature in 2029. The County entered into an agreement with the Development Authority to issue bonds to ﬁnance the construction of an airport taxiway in the amount of $3,966,969. During 2014, the agreement was modiﬁed due to additional project costs. As of December 31, 2019, the bonds have an outstanding balance of $3,422,637, with an interest rate of 3.25%. The bonds mature in 2029. During 2018, the County entered into an agreement with the Development Authority to issue $1,500,000 of revenue bonds (Series 2018) to ﬁnance the acquisition and construction of an aircraft hanger at County Airport. As of December 31, 2019, the bonds have an outstanding balance of $1,324,301, with an interest rate of The County will make interest- only payments until all draws on the bonds are complete and the commencement of the Amortization Period begins. At the completion of draws, the interest rate will increase to 6% and bond payments will be due in installments. The bonds mature in 2035. 36 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The County's outstanding bonds related to the Pickens County Airport are secured by a pledge by the Development Authority and contain a provision that if the County is unable to make its payment, outstanding amounts are due immediately. The annual requirements to amortize bonds payable outstanding as of December 31, 2019, are as follows: December 31, Principal Interest Total 2020 $ 780,671 $ 314,626 $ 1,095,297 2021 81 1,634 284,442 1,096,076 2022 840,521 256,019 1,096,540 2023 869,303 226,404 1,095,707 2024 900,692 195,892 1,096,584 2025-2029 4,984,816 495,998 5,480,814 Total § 9.187.637 § 1.773.381 § 10,_961.018 Series 2018 Bonds 1,324z301 Total $ 10z511,938 Notes from Direct Borrowings In 2018, the County entered into promissory notes with the Georgia Environmental Finance Authority the original amounts of $4,013,000, with interest rates from 1.89% to 2.39%, to ﬁnance the construction of water distribution lines and related appurtenances and constructing a new 0.325 MGD water treatment plant, a 100,000 gallon ground storage tank, and the purchase of water rights ﬁom the Grandview Lake Company and secured with collateral of the water withdrawal permits and water treatment plant. As of December 31, 2019, the County had two such loan agreements with outstanding balances of $1,568,477. The County will make interest- only payments until all draws on the notes are complete and the commencement of the Amortization Period begins. At the completion of draws, the note payments will be due in installments. The notes will mature 20 years from the commencement date. The County's outstanding notes from direct borrowings related to business-type activities are secured by the County's ﬁ111 faith and credit and revenue-raising power (including its taxing power). The outstanding notes ﬁom direct borrowings related to business-type activities contain a provision that if the County is unable to make its payment, outstanding amounts are due immediately. The County's outstanding notes from direct borrowings do not contain a subjective acceleration clause. 37 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 DISCRETELY PRESENTED COMPONENT UNITS Long-terrn debt activity for the Health Department for the year ended December 31, 2019, was as follows: Beginning Ending Due Within Due After Governmental Activities Balance Additions Reductions Balance One Year One Year Compensated absences $ 16,530 $ 10,264 $ (9,098) $ 17,696 $ 8,848 $ 8,848 Net OPEB Liability 297,949 12,589 (65,536) 245,002 245,002 - - Net Pension Liability 328 196 128,654 (54,750) 402.100 402.100 Total long-termLiabi1itics 642E675 267E572 §118a598; §664.798 $ 8.[PHONE REDACTED] § § § § Long-term debt activity for the Industrial Development Authority for the year ended December 31, 2019, was as follows: Beginning Ending Due Within Due After Business—type Activities Balance Additions Reductions Balance One Year One Year - Bonds payable $ 1,726,255 $ $ (72,1 16) $ 1,654,139 $ 75,299 $ 1,578,840 - Total long-term liabilities §1!726!255 § § 572E116; g le654!139 § 75!299 § 1a578!840 During 2015, the Industrial Development Authority issued $1,960,000 of revenue bonds (2015 Series) for a ﬁ11l refunding of the loan agreement with Restaurant Interiors to ﬁnance the purchase of an industrial building in the original amount of $1,249,206. The refunding was undertaken to reduce total ﬁ1ture debt service payments. Bond payments are due in installments with armual principal amounts ranging from $60,447 to $143,831 with a variable interest rate. The interest rate at December 31, 2019 is 3.20%. As of December 31, 2019, the outstanding balance is $1,654,139. This bond will mature in May 2035. The annual requirements to amortize long-term debt as of December 31, 2019, are as follows: Year Ending December 31, Principal Interest Total 2020 $ 72,116 $ 72,503 $ 144,619 2021 75,299 69,474 144,773 2022 79,062 66,311 145,373 2023 82,787 62,991 145,778 2024 86,688 59,514 146,202 2025-2029 498,372 239,431 737,803 2030-2034 555,537 58,228 613,765 2035 204.278 11.118 215,396 Total § 1.654.139 $ 639,_570 $4,293,709 38 ---PAGE BREAK--- - - - - - - - - - - - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 9 INTERFUND BALANCES AND ACTIVITY The composition of interﬁmd balances as of December 31, 2019, is as follows: Due To Due From Other Nonmajor Total Due General Restricted Governmental Airport from Other Fund Programs Funds Water Fund Fund Funds - General Fund $ $ 56,774 $ 229 $ 2,150,833 $891,388 $ 3,099,224 Restricted Programs 15,419 219,075 234,494 Nonmajor Governmental Funds 20,904 20,904 Water Fund 131.585 131.585 Total Due to Other Funds § 167E908 § 275!849 § 229 § 2!150!833 §891!388 § 3a486!207 These balances resulted from 1) the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur, 2) the time lag between the dates that transactions are recorded in the accounting system, 3) the time lag between the dates that payments between funds are made, 4) short-term loans, and 5) to fund capital projects. Interfund transfers as of the year ended December 31, 2019, are as follows: Transfers Out Transfers in Other Nonmajor Restricted Governmental Total Programs Funds Water Fund Transfers Out - General Fund 35 75,053 $ 597,649 $ $ 672,702 SPLOST 233,662 233,662 - Total Transfers in $ 75.053 $ 597.649 § 233.66% § 906E364 Transfers are used to 1) supplement operating budgets, 2) help fund construction projects and debt service, 3) reimburse unrestricted revenue, 4) reimburse pension costs, and 5) move the County's matching portion on federal and state grants. - NOTE 10 RETIREMENT PLANS DEFINED BENEFIT PENSION PLAN Plan Description The County contributes to the Association of County Commissioners of Georgia (ACCG) Deﬁned Beneﬁt Plan (the ''Plan''), which is a deﬁned beneﬁt pension plan. 39 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The Plan provides retirement, disability, and death beneﬁts to plan participants and beneﬁciaries. The Plan, through execution of an adoption agreement, is affiliated with the Association County Commissioners of Georgia Deﬁned Beneﬁt Plan (the ACCG Plan), an agent multiple-employer pension plan administered by GEBCorp. The ACCG, in its role as the Plan Sponsor, has the sole authority to amend the provisions of the ACCG Plan, as provided in Section 19.03 of the ACCG Plan document. The County has the authority to amend the adoption agreement, which deﬁnes the speciﬁc beneﬁt provisions of the Plan, as provided in Section 19.02 of the ACCG Plan Document. The Plan issues a publicly available ﬁnancial report that includes ﬁnancial statements and required supplementary information for the Plan. That report may be obtained by writing to Pension Service Company, 1100 Circle 75 Parkway, Suite 320, Atlanta, Georgia 30339. All full-time employees are eligible to participate in the Plan after completing three years of service. Beneﬁts vest aﬁer ﬁve years of service. Participants become eligible to retire with unreduced beneﬁts at age 65 with three years of plan participation. Upon eligibility to retire, participants are entitled to an annual beneﬁt in the amount of 2% of annual average compensation plus $36 for each year of service payable as a life armuity. Compensation is averaged over a ﬁve year period prior to retirement or termination. The Plan also provides beneﬁts in the event of death or disability. These beneﬁt provisions were established by an adoption agreement executed by the County Commission. Participant counts as of January 1, 2018, (the most recent actuarial valuation date) and covered compensation (base on covered earnings for the preceding year) are shown below: Retirees, beneﬁciaries and disabled participants receiving beneﬁts 77 Terminated plan participants entitled to but not yet receiving beneﬁts 128 Active employees participating in the Plan 150 Total number of Plan participants 355 Covered compensation for active participants $ 6,813,847 Contributions as a percentage of covered payroll 15.82% Contributions The County is required to contribute at an actuarially determined rate. The contribution amount is determined using actuarial methods and assumptions approved by the ACCG Plan trustees and must satisfy the minimum contribution requirement contained in the State of Georgia Statutes. Section 47-20 of the Georgia Code sets forth the funding standards for state and local governmental pension plans. 40 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES T0 FINANCIAL STATEMENTS December 31, 2019 Net Pension Liability The County's net pension liability was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total pension liability as of the January 1, 2018 valuation was determined by an actuarial valuation using the following actuarial assumptions, applied to all periods included in the measurement: Inﬂation 2.00% Salary Increases 4.50% 6.50%, average, including inﬂation - Investment rate of return 7.25%, net of pension plan investment expense, including inﬂation Effective December 31, 2018, the expected long-term rate of return was revised to 7.00% Mortality rates were based on the RP-2000 Combined Mortality Table projected with Scale AA for Males and Females. The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an - actuarial experience study for the period January 1, 1988 December 31, 2014. The long-term expected rate of return on pension plan investments was detexmined using a log- normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inﬂation) are developed for each major asset class. These ranges are combined to produce the 1ong—term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inﬂation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: 41 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Asset Class Fixed income Domestic large equities Domestic mid equities Domestic small equities REIT International Multi cap Global allocation TOTAL * Rates shown are net of inﬂation Target Allocation 30.00% 30.00 5.00 5.00 5 .00 15.00 5.00 5.00 100.00% Long-term expected real rate of return* 3.07% 1.97 0.86 0.30 0.52 0.47 0.51 0.58 The discount rate.used to measure the total pension liability was 7.00%. The projection of cash ﬂows used to determine the discount rate assumed that plan member contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's ﬁduciary net position was projected to be available to make all projected future beneﬁt payments of current plan members. Therefore, the 1ong—term expected rate of return on pension plan investments was applied to all periods of projected beneﬁt payments to detennine the total pension liability. 42 ---PAGE BREAK--- - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Change in the Net Pension Liability Pension Fiduciary Net Net Pension Liability Position Liability Balances at December 31, 2018 $ 15,468,335 $ 8,377,292 $ 7,091,043 Changes for the year: Plan Change - Service cost 563,685 563,685 - Interest 1,099,774 1,099,774 Difference between expected and actual experience 1,029,288 1,029,288 - - Assumption Change 895,492 895,492 - Contribution-employer 1,077,733 (1,077,733) - Contribution-employee 334,523 (334,523) Net investment income (3 69,268) 369,268 - - Beneﬁt payments (598,066) (598,066) Administrative expense (3 7,089) 37,089 - - Other charges (80,874) 80,874 Net changes 2,990,173 326,959 2,663,214 Balances at December 31, 2019* 18,458,508 $ 8,704,251 9,754,257 * Measurement date of December 31, 2018 The following presents the County's net pension liability" calculated using the discount: rate of 7.00%, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage- point higher (8.00%) than the current rate: 1 % Decrease Current Discount 1% Increase (6.00%) Rate (7.00%) (8.00%) County's net pension liability $ [PHONE REDACTED] $ 9,754,257 $ 7,517,853 43 ---PAGE BREAK--- PICKENS COUNTY, GEORGM NOTES TO FINANCIAL STATEMENTS December 31, 2019 Pension Expense and Deferred Outﬂows ofResources and Deferred Inﬂows ofResources Related to Pensions For the year ended December 31, 2019, the County recognized pension expense of $1,789,195. The required contribution for the year ended December 31, 2019 was $1,077,721. At December 31, 2019, the County reported deferred outﬂows of resources and deferred inﬂows of resources related to pensions from the following sources: Deferred Deferred Outﬂows of Inﬂows of Resources Resources Differences between expected and actual experience $ 1,843,069 $ - Changes of assumptions Net difference between projected and actual earnings on pension 1,037,816 - plan investments TOTAL $ - 2,880z885 $ - - Amounts reported as deferred outﬂows of resources and deferred inﬂows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, 2020 $ 961,671 2021 882,986 2022 699,355 2023 336,873 2024 - - Thereafter $ 228802885 44 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 DEFINED CONTRIBUTION PLAN Plan Description The County contributes to the Association of County Commissioners of Georgia (ACCG) Deﬁned Contribution Plan for Pickens County Employees (Plan a public employee retirement system that acts as a common investment and administrative agent for participating counties in Georgia. Plan A was established by the County in January 2016 pursuant to Section 401(a) of the Internal Revenue Code of 1986 as a Money-Purchase Plan and Trust. At the inception of Plan A, the Deﬁned Contribution Plan excepted all employees with an employment commencement date prior to January 1, 2016. Plan A issues a stand alone report. It may be obtained from: Pension Services Company, 1100 Circle 75 Parkway, Suite 300, Atlanta, Georgia 30339. All full-time County employees are eligible to participate in the Plan A the ﬁrst day of the ﬁrst pay period beginning on or the date the participant ﬁrst meets the eligibility requirements. Beneﬁts vest aﬁer ﬁve years of service. The County contributes 50% on amounts participants contribute to the 457(b) Eligible Deferred Compensation Plan. The maximum matching contribution shall be no more than 2.5% of compensation. A participant becomes eligible to retire at the normal retirement age of 65. Any participant leaving the plan before vesting “forfeits” the County’s matching contﬁbution to Plan A. Funding Policy Contributions totaling $133,756 ($43,651 employer and $90,105 employee) were made in accordance with the Plan A guidelines and the desigr1ations by County Employees. DEFERRED COMPENSATION PLAN The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457(b). The plan, available to all County employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Because the assets are held in trust for the employees, they are not assets of the County and are not reported in these ﬁnancial statements. 45 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 OTHER POST-EMPLOYMENT BENEFITS Plan Description The Pickens County Retiree Insurance Program (the "OPEB Plan") is a single-employer deﬁned beneﬁt post-employment health care plan. Participant counts as of January 1, 2019, the most recent valuation date, are shown below. The Board of Commissioners have the authority under which the obligations of the plan members and the employer are established or may be amended. The OPEB Plan does not issue a stand-alone ﬁnancial report. Eligible retirees must be a minimum of age 55 with 15 or more years of consecutive full-time service, and must have been hired before January 1, 2002, in order to receive beneﬁts. Participant counts as of January 1, 2019, (the most recent actuarial valuation date) and covered compensation (based on covered earnings for the preceding year) are shown below: Inactive employees or beneﬁciaries currently receiving beneﬁts 5 Inactive employees entitled to but not yet receiving beneﬁts Active employees Total - 25 30 Covered-employee payroll for active participants $ 1,239,01 1 Contributions as a percentage of its covered-employee payroll 2.95 % Contributions Eligible retirees and former employees are offered the same health coverage as active employees. Retirees contribute an average of $533 per month towards the actuarially calculated rates. The County contributes the remainder of the rates. The OPEB Plan is funded on a pay-as- you-go basis. For ﬁscal year 2019, the County contributed $36,498 to the plan. Net OPEB Liability The. County's net OPEB liability is reported herein as of January 1, 2019 for the employer ﬁscal year and reporting period ending December 31, 2019. The values shown for this ﬁscal year and reporting period are based on a measurement date of January 1, 2019. The measurement of the total OPEB liability is based on a valuation date of Januaty 1, 2019. 46 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following key actuarial assumptions, applied to all periods included in the measurement: Inﬂation: 3.00% Real wage growth: 1.00% Wage inﬂation: 4.00% - Salary increases, inc wage inﬂation 4.00% 6.50% Municipal Bond Index Rate Prior measurement date 3.44% Measurement date 4.10% Health Care cost trends Pre-Medicare 7.25% for 2018 decreasing to an ultimate rate of 4.75% by 2028 Mortality: RP-2000 Combined Mortality Scale, projected with Scale AA to 2017 Actuarial Cost Method: Entry Age Normal The discount rate has been set to equal to 3.44% and represents the Municipal GO AA 20-year yield curve rate as of January 1, 2019. The actuarial assumptions used were based on the pension valuation prepared by GEBCorp as of December 31, 2018. The employer contributions required to support the beneﬁts of the OPEB Plan are determined following a level funding approach, and consist of a nonnal contribution and an actuarial accrued liability contribution. 47 ---PAGE BREAK--- - - - PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Change in the Net OPEB Liability OPEB Fiduciary Net Net OPEB Liabilig Position Liabiligy - Balances at December 31, 2018 $ 964,539 $ $ 964,539 Changes for the year: - Service cost 25,288 25,288 - Interest 32,082 32,082 Difference between expected and actual - experience (3,444) (3,444) - Contribution-employer 36,498 (36,498) Assumption Change (50,730) (50,730) - - Beneﬁt payments (3 6,498) (36,498) Implicit subsidy credit (27,900) (27,900) - Other charges - Net changes (61,202) (61,202) - Balances at December 31, 2019* 903,337 $ $ 9032337 *Measuremcnt date is as of January 1, 2018 The following presents the County's net OPEB liability of the employer as of the measurement date calculated using the discount rate of 4.10%, as well as what the County's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.10%) or 1- percentage-point higher (5.10%) than the current rate: 1 % Decrease Current Discount 1% Increase (3.10%) Rate (4.10%) (5.10%) County's net OPEB liability $ 981,138 $ 903,331 § 831,279_ The following presents the County's net OPEB liability of the employer as of the measurement date calculated using the Pre-Medicare trend rate of 7.25%, as well as what the County's net OPEB liability would be if it were calculated using a trend rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: 1 % Current 1% Illcwusc (6.25%) Rate (7.25%) (8.25%) County's net OPEB liability $ 806,717 $ 9032337 $ 1,014,572 OPEB Expense and Deferred Outﬂows ofResources and Deferred Inﬂows ofResources Related to OPEB For the year ended December 31, 2019, under GASB 75 the County's OPEB expense is $54,000. 48 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 At December 31, 2019, the County reported deferred outﬂows of resources and deferred inﬂows of resources related to OPEB from the following sources: Deferred Deferred Outﬂows of Inﬂows of Resources Resources - Differences between expected and actual experience $ 2,271 $ - Changes of assumptions 24,325 TOTAL $ 2,271 $ 24,325 Deferred outﬂows of resources and deferred inﬂows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31, 2020 $ (3,370) 2021 (3,370) 2022 (3,370) 2023 (4,880) 2024 (7,064) Thereafter - - NOTE 11 CONTINGENT LIABILITIES AND COMMITMENTS The County's encumbrances outstanding at the end of the ﬁscal year that will be honored in the next ﬁscal year are not signiﬁcant for any of the major funds nor for the nonmajor funds in total. Amounts received or receivable for grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial. The County is a defendant in several lawsuits. Management intends to contest these open cases vigorously. The County's legal counsel has stated that the outcome of these lawsuits is not presently determinable. - NOTE 12 RISK MANAGEMENT The County is exposed to Various risks of losses related to torts, thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The following are ways the County handles these risks: 49 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 WORKERS’ COMPENSATION The County participates in the Association County Commissioners of Georgia (ACCG) Group Self Insurance Workers’ Compensation Fund (GSIWCF), a self-insured pool cooperative arrangement among its members to ﬁnance workers‘ compensation coverage. The fund is owned by its members and is managed by a seven member Board of Trustees who are representatives ﬁom participating counties. The ACCG-GSIWCF operates under the authority of O.C.G.A. 34- 9-150 et seq. and the Georgia Insurance Commissioner's Ofﬁce. The members of ACCG-Group Self Insurance Workers‘ Compensation Fund are assessable if the losses that ACCG must pay exceed the assets of the pool. At December 31, 2019, there was no need for such an assessment. Therefore, no liability has been recorded in these ﬁnancial statements. As part of this risk pool (GSIWCF), the County is obligated to pay all contributions and assessments to cooperate with the pools’ agents and attorneys, to follow loss reduction procedures established by the funds and to report as as possible, in accordance with any coverage descriptions issued, all incidents that could require the funds to pay any type of loss. The County is also to allow all the pools’ agents and attorneys to represent the County in investigations, settlement discussions, and all levels of litigation arising out of any claim made against the County. The funds are to defend and protect the members of the funds against liability or loss as prescribed in the member government contract and in accordance with the worker’s compensation law of Georgia. The funds are to pay all cost taxed against members in any legal proceeding defended by the members, all interest accruing after entry of judgment, and all expenses incurred for investigation, negotiation or defense. OTHER The County also purchases combined automobile, crime, liability, and property insurance coverage from OneBeacon Government Risks. The following is a summary of coverage at December 31, 2019: Property Losses 3,000,000 aggregate Comprehensive General Liability 1,000,000 per occurrence 3,000,000 aggregate Automobile Liability 2,000,000 per occurrence 99‘%999999999999 Law Enforcement Liability 1,000,000 per occurrence 3,000,000 aggregate Excess Liability 1,000,000 per occurrence Crime Coverage (theft/fraud) 3,000,000 aggregate 50 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The County has no outstanding claims in excess of coverage for which a liability should be recorded as of December 31, 2019. Settled claims in the past three years have not exceeded the coverage. - NOTE 13 JOINT VENTURE On January 4, 1995, Pickens County entered into an agreement with Bartow County, Georgia, establishing a Joint Development Authority. The County Commissioner of Pickens County and the County Commissioner of Bartow County signed an agreement whereby the Joint Development Authority of Bartow County and Pickens County was established for the promotion of business development in each county as well as expanding industty, trade and employment opportunities for the citizens of Bartow and Pickens Counties. The Board of Directors of the Joint Development Authority consists of seven members. Three members of the Board are appointed by Bartow County and four members are appointed by Pickens County. As of December 31, 2019, the Joint Development Authority owned no assets and had no liabilities. Also, there have been no ﬁnancial transactions conducted by the Joint Development Authority in 2019. As a result, no balance sheet or income statement is presented in the audited ﬁnancial statements of Pickens County at December 31, 2019. - NOTE 14 NORTHWEST GEORGIA REGIONAL COMMISSION Under Georgia Law, the County, in conjunction with other cities and counties in the northwest Georgia area, is a member of the Northwest Georgia Regional Commission and is required to pay armual dues thereto. During the year ended December 31, 2019, the County paid $27,441 in such dues. Membership in the is required by the Ofﬁcial Code of Georgia Annotated (OCGA) Section 50-8-34, which provides for the organizational structure of the Regional Commission in Georgia. The Board membership includes the chief elected ofﬁcial in each county and municipality of the area. The County Board members and municipal board members from the same county elect one member of the Board who is a resident (but not an elected or appointed ofﬁcial or employee of the County or municipality) to serve as the nonpublic Board member from a County. The Georgia Plarming Act of 1989 (O.C.G.A. 50-8-34) deﬁnes regional commissions as “public agencies and instrumentalities of their members.” Georgia laws also provide that the member governments are liable for any debts or obligations of a regional commission beyond its resources. (O.C.G.A. 50-8-39.1) Separate ﬁnancial statements for the can be obtained from P.O. Box 1798, Rome, Georgia 30162. 51 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 15 NORTHWEST GEORGIA REGIONAL WATER RESOURCES PARTNERSHIP The County is a member of the Northwest Georgia Regional Water Resources Partnership. This organization is made up of water withdrawal permit holders, local governments, and other advocacy entities with an interest in water issues. The purpose of the Partnership is a regional organization of water related interest in Northwest Georgia for monitoring and contributing to the development of federal, state, and local policy; educating the citizens on water related issues; funding and managing regional water-related activities; and coordinating the activities for federal, state, and local entities. The County paid annual dues in the amount of $680 for the year ended December 31, 2019. Separate ﬁnancial statements can be obtained from Northwest Georgia Regional Water Resources Partnership, P.0. Box 1793, Rome, Georgia 30162. - NOTE 16 LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the County to place a ﬁnal cover on a landﬁll site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. The County recognizes a portion of the closure and postclosure care costs in each operating period even though actual payouts will not occur until the landﬁll is closed. The amount recognized each year is based on the landﬁll capacity used as of the balance sheet date. As of December 31, 2019, the County has recorded a liability for its solid waste landﬁll of $450,000, which represents the estimated closure and postclosure costs based on 100% of landﬁll capacity used to date. All estimated liability for these costs has been recognized since the landﬁll is no longer used. These amounts are based on what it would cost to perfonn all closure and postclosure care in 2019. Actual cost may be higher due to inﬂation, changes in technology, or changes in regulations. The County is also required to demonstrate ﬁnancial assurance that the closure and postclosure care cost can be paid in the future. The County is in compliance at December 31, 2019, based on requirements issued by the EPA. 52 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 - NOTE 17 SIGNIFICANT ESTIMATES As discussed in Note 1, estimates are used in the preparation of these ﬁnancial statements. Four of the estimates qualify as signiﬁcant estimates in that it is reasonably possible that the estimates will change in the near term due to one or more ﬁxture conﬁrming events and this change will have a material effect on the ﬁnancial statements. These estimates are as follows: The liability for landﬁll closure and postclosure care cost is based on estimates provided by the County’s engineering consultants and reduced each year by expenses related to the closure and postclosure of the landﬁll. These estimates are based on what it would cost to perform closure and postclosure care currently. Actual costs may change due to higher inﬂation, changes in technology, or changes in regulations. The estimate for accumulated depreciation on capital assets. This estimate is based on the original or estimated cost of the assets, depreciated over the estimated useful lives using the straight line method and composite method. The estimate for allowance for doubtful accounts relating to Pickens County EMS accounts receivable qualiﬁes as a signiﬁcant estimate. The estimate is calculated based on the previous year's collection percentage of accounts greater than one year old. The amount reported as the estimated amounts for the net pension liability, the other post- employment beneﬁts (OPEB) liability, and related deferred inﬂows and outﬂows of resources qualify as signiﬁcant estimates and are based on actuarial studies and projections. - NOTE 18 HOTEL/MOTEL TAX During the year ended December 31, 2019, the County had receipts of $102,221 and spent $78,740 to promote tourism, conventions, and trade shows. The total expenditures represent 77% of the tax receipts to be expended for these purposes under OCGA 48-13-51. The County has complied with the requirements of this law. 53 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2019 — NOTE 19 SUBSEQUENT EVENTS In December 2019, a novel strain of coronavirus was reported to have surfaced in China. The World Health Organization has declared the outbreak to constitute a “Public Health Emergency of International Concern.” The spread of this virus (COVID—19) appeared in the United States and began to cause some operational disruptions in the ﬁrst quarter of calendar year 2020. While this disruption is currently expected to be temporary, there is considerable uncertainty regarding the potential duration of the Virus. Therefore, while management expects this matter could negatively impact operating results, the total ﬁnancial impact and duration cannot be reasonably estimated at this time. 54 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION - SCHEDULE OF THE NET PENSION LIABILITY ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2019 “Unaudited" For the Year Ended December 31, 2019 2018 2017 2016 2015 Net pension liability $ 9,754,257 $ 7,091,043 $ 7,113,681 $ 3,218,002 $ 2,670,675 Covered payroll $ 6,813,847 $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 Net pension liability as a percentage of its covered payroll 143.15% 104.88% 105.66% 51.39% 41.37% Plan ﬁduciary net position as a percentage of the total pension liability 47.20% 54.20% 48.20% 62.70% 66.00% NOTE: Schedule is intended to show information for the last I 0 ﬁscal years. Additional years will be displayed as they become available. 55 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS - ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2019 “Unaudited" For the Year Ended December 311 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Contractually required contribution $ 986,766 $ 865,930 $ 726,960 $ 556,622 $ 565,792 $ 547,417 $ 519,277 $ 481,354 $ 479,261 $ 396,496 Contributions in relation to the contractually required contril: ution 1,077,733 990,265 866,021 576,852 604,422 551,249 519,277 481,354 447,823 164,546 Contribution deﬁciency (excess) $ g90z967[ $ §124z335[ $ 1139:0611 $ §20z230[ $ 1382630! $ 1328321 $ - $ - $ 31,438 $ 231950 County's covered payroll $ 6,813,847 $6,761,050 $6,732,730 $6,261,763 $6,455,121 $7,234,670 $7,126,832 $6,713,647 $6,852,406 $5,521,511 Contributions as a percentage of covered payroll 15.82% 14.65% 12.86% 9.21% 9.36% 7.62% 7.29% 7.17% 6.54% 2.98% 56 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2019 “Unaudited" Method and Assumptions Used in Calculations of Actuarially Determined Contributions The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the ﬁscal year in which donations are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for the year ended December 31, 2019 reported in that schedule: Valuation Date January 1, 2018 Actuarial Cost Method Entry Age Normal Amortization Method Level percentage of payroll, open Remaining Amortization period 30 years Asset Valuation method Five-year smoothed market Inﬂation Rate 2.00% - Salary Increases 4.00% 6.50%, including inﬂation Investment rate of return 7.25%, net of pension plan investment expense, including inﬂation 57 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS HEALTH CARE PLAN OF PICKENS COUNTY, GEORGIA For the Year Ended December 31, 2019 “Unaudited" Fiscal Year Ending December 31. 2019 2018 Total OPEB liability Service cost $ 25,288 $ 22,750 Interest 32,082 34,339 Differences between expected and actual experience (3,444) 7,844 Changes in assumptions (50,730) 26,958 Beneﬁt payments (36,498) (44,902) Implicit subsidy credit (27,900) (26,000) Net changes in total OPEB liability (61,202) 20,989 - Total OPEB liability beginning 964,539 943,550 - Total OPEB liability ending $ 903,337 $ 964,539 Plan ﬁduciary net position — $ Contributions employer 36,498 $ 44,902 Beneﬁt payments, including reﬁmding of employee contributions (36,498) (44,902) Net change is plan ﬁduciary net position — Plan ﬁduciary net position beginning - — - Plan ﬁduciary net position ending $ $ - Net OPEB liability ending $ 903,337 $ 964,539 Plan ﬁduciary net position as a percentage of the total OPEB liability 0.00 % 0.00 % Covered-employee payroll $ 1,239,011 $ 1,239,011 Net OPEB liability as a percentage of covered-employee payroll 72.91% 77.85 % NOTE: Schedule is intended to show information for the last 1 0ﬁscal years. Additional years will be displayed as they become available. 58 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS HEALTH CARE PLAN OF PICKENS COUNTY, GEORGIA For the Year Ended December 31, 2019 “Unaudited" Fiscal Year Ending December 3 1, 2019 2018 Actuarially Determined Contribution $ 36,498 $ 44,902 Contxibutions in relation to the Actuarially Determined Contribution 36,498 44,902 - - Contribution deﬁciency (excess) $ $ Expected covered-employee payroll $ 1,239,01 1 $ 1,239,01 1 Contributions as a percentage of covered-employee payroll 2.95 % 3.62 % NOTE: Schedule is intended to show information for the last I 0ﬁscal years. Additional years will be displayed as they become available. 59 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - HEALTH CARE PLAN OF PICKENS COUNTY, GEORGIA For the Year Ended December 31, 2019 “Unaudited" Method and Assumptions Used in Calculations of Actuarially Determined Contributions The County has elected to make an annual contribution equal to the beneﬁt payments. The County share of net beneﬁts is the difference between the expected beneﬁt payments and the retiree contributions. It is sometimes referred to as "pay-as-you-go." The expected beneﬁt payments are actuarially determined to reﬂect the age difference between the overall covered group and the retiree group. Actuarially determined contributions, which are based on the expected "pay-as-you-go" cost, and actual contributions are from the measurement periods ending December 31 of the year prior to the year-end of the reporting periods shown. This is the ﬁrst valuation under GASB 75 for the reported Plan. 60 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended December 31, 2019 (Required Supplementary Information) FUND BALANCE, Beginning of year RESOURCES (INFDOWS) Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for services Contributions and donations Investment income Miscellaneous Sale of county property Capital lease proceeds Total Resources (Inﬂows) AMOUNTS AVAIIABLE FOR APPROPRIATION CHARGES TO APPROPRIATIONS (OUTFIDWS) Current Expenditures General Government Board of commissioners General administration County clerk Elections Finance Law Human resources Tax commissioner Tax assess Buildings Agencies Total General Government Judicial Judicial Administration Superior couxt Clerk of Superior court District attorney Magistrate court Probate court Juvenile court Board of equalization Public defender Total Judicial Public Safety Shexiﬁ‘ Jail operaﬁon Court services Fixe Coroner/Medical Examiner E-911/Communications center School resource oﬂicers Emergency Management Agency Animal control Total Public Safety BUDGET AMOUNTS ORIGINAL FINAL L 9,058,891 S 9,058,891 $ 19,107,300 19,107,300 465,700 465,700 1,792,404 3,670,404 303,100 303,100 3,283,500 3,283,500 - 5,275 10,100 10,100 150,500 167,790 - 9,774 2_20,000 2_20,000 25.332.604 27,242,943 34,391,495 36,301,834 172,981 172,981 701,153 663,653 119,585 119,585 229,944 183,944 396,761 396,761 180,000 213,000 113,053 108,053 590,678 669,178 569,003 558,003 474,531 578,531 32,000 28,000 3.579,689 3,691,689 222,173 249,173 199,250 212,250 589,585 576,860 564,118 428,118 455,060 437,060 466,202 416,202 419,545 412,545 16,658 16,65 8 666,272 65 8,272 3,598,863 3,407,138 3,877,368 4,193,142 2,642,062 2,892,062 212,911 157,911 4,638,314 4,196,314 53,275 53,275 705,900 535,900 458,219 443,219 204,993 200,993 248.491 318.491 13,041,533 12,991,307 VARIANCE WITH FINAL BUDGET POSITIVE ACTUAL (NEGATIVE) - 9,058,891 S 19,279,810 172,510 470,932 5,232 3,656,246 (14,158) 287,639 (15,461) 2,925,036 (358,464) 9,525 4,250 10,729 629 98,117 (69,673) 154,095 144,321 - (220,009) 26,892,129 (350,814) 35,951,020 (350,814) 169,061 3,920 662,641 1,012 115,985 3,600 182,047 1,897 394,846 1,915 212,487 513 104,476 3,577 668,947 231 557,803 200 577,994 537 27,441 559 3,673,728 17,961 249,062 1 1 1 212,023 227 566,893 9,967 418,479 9,639 429,927 7,133 402,071 14,131 401,601 10,944 12,393 4,265 647,658 10L6l4 3.340.107 67,031 4,192,606 536 2,891,289 773 140,078 17,833 4,185,379 10,935 50,498 2,777 526,608 9,292 441,148 2,071 198,210 2,783 318.308 183 12,944,124 47,183 61 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended December 31, 2019 (Required Supplementary Information) VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) CONTINUED...... Public Works Roadways and walkways Solid waste and recycling Maintenance and shop Total Public Works Public Health and Welfare Health department Public health and welfare Senior citizens center Community Center Transportation services Total Public Health and Welfare Recreation and Culture Parks and recreation Library Total Recreation and Culture Housing and development Extention oﬂice Planning and zoning County marshal] Economic development Total Housing and Development Transfers out TOTAL CHARGES TO APPROPRIATIONS CHANGE IN FUND BALANCE FUND BALANCE, End of year $ NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 2,332,330 574,105 149 405 3,055,841 4,422,330 588,105 150 406 5,160,841 4,422,089 587,417 149 675 5,159.181 241 688 731 1,660 2,750 119,606 24,300 35,646 130,515 312,817 2,750 90,606 25,300 37,646 1 15,515 271.817 819 89,865 24,559 37,071 109,279 261,593 1,931 741 741 575 6,236 10,224 677,598 333,626 1.011.224 683,598 333,626 1,017,224 679,985 333,183 1,013,168 3,613 443 4,056 73,735 421,959 106,170 56,273 658,137 76,735 418,249 99,170 56,273 650,427 75,787 417,082 89,833 56,268 638,970 948 1,167 9,337 5 11,457 74,500 52,500 49,152 3,348 25,332,604 27,242,943 27,080,023 162,920 - — (187,894) ( 187.894) 9E058!891 $ 950585891 $ 8!870i997 g 5187:8942 62 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE RESTRICTED PROGRAMS SPECIAL REVENUE FUNDS For the Year Ended December 31, 2019 BUDGET AMOUNTS ORIGINAL FINAL ACTUAL VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE) FUND BALANCE, Beginning of year RESOURCES (INFLOWS) Intergovemmental Fines and forfeitures Charges for services Contnbutions and donations Investment income Miscellaneous Transfer in Total Resources (Inﬂows) AMOUNTS AVAIIABLE FOR APPROPRIATION $ 314,848 1,969,172 254,332 229,200 - 600 10,000 74,755 2,538,059 2,852,907 $ 314,848 2,315,557 254,332 229,200 — 600 10,000 123,755 2,933,444 3,24§292 5 314,848 2,301,648 340,556 214,301 17,001 1,444 - 75,053 2,950,003 3,264,851 3 - (13,909) 86,224 (14,899) 17,001 844 (10,000) (48,702) 16,559 16,559 CHARGES TO APPROPRIATIONS (OUTFDOWS) Current Expenditures Judicial Public health and welfare Intergovemmemal TOTAL CHARGES T0 APPROPRIATIONS 1,893,440 250,637 393,982 2,538,059 2,069,236 373,226 490,982 2,933,444 2,069,128 372,228 490.619 2,931,975 108 998 363 1,469 CHANGE IN FUND BALANCE - - 18,028 18,028 FUND BALANCE, End of year 3 314,848 $ 314.848 3 3321876 S 18,028 NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 63 ---PAGE BREAK--- - - - - - - - - - - - - - - ASSETS Cash Investments Receivables (net of allowance for uncollectibles) Interfund receivables TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Other accrued items Interfund payables TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES — Unavailable revenue ﬁnes TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Restricted: Judicial programs Public safety programs Housing and development programs TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES PICKENS COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 3 1, 2019 SPECIAL REVENUE FUNDS SHERIFF'S EMERGENCY LAW LAW TELEPHONE LIBRARY ENFORCEMENT SYSTEM - $ 17,216 $ 165,567 $ $ — - 23,193 1 17,070 $ 40.409 $ 165a567 $ 117.070 § $ 999 $ $ $ - - — 229 1.228 — — — - — 39,1 8 1 - 165,567 117,070 — — — 39,181 165,567 117.070 $ 40.409 $ 1652567 $ 117,070 § DRUG TASK FORCE 181,987 - 13,717 20.904 216E608 - 178,119 - 178.119 — - - 38,489 — 38.[PHONE REDACTED] HOTEL! MOTEL TAX $ 39,062 - 17,463 - $ 563525 $ 32,561 - - 32.561 3,340 3.340 - - 20,624 20.624 $ 56i525 TOTAL NONMAJOR GOVERNMENTAL FUNDS $ 403,832 23,193 148,250 20,904 $ 596,179 $ 33,560 178,119 229 211.908 3,340 3.340 39,1 8 1 321,126 20,624 380.931 $ 596.179 64 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJ OR GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 SPECIAL REVENUE FUNDS TOTAL SHERIFF'S EMERGENCY DRUG HOTELI NONMAJOR LAW LAW TELEPHONE TASK MOTEL GOVERNMENTAL LIBRARY ENFORCEMENT SYSTEM FORCE TAX FUNDS REVENUES Taxes $ - $ - $ - $ - $ 102,221 $ 102,221 Intergovernmental Fines and forfeitures - 15,390 — 7,107 — - 159,343 66,457 - - 159,343 88,954 Charges for services Contributions and donations Investment income - - 510 100,813 44,163 529 719,031 — - - - 226 - - 3,775 819,844 44,163 5,040 Miscellaneous - ~ 206 137 - 343 TOTAL REVENUES EXPENDITURES 15.900 152.612 719.237 226,163 105.996 1,219,908 Current Expenditures Judicial Public safety Housing and development Intetgovemmental Principal 12,172 - - 5,976 - — 156,208 - - - - 1,129,055 - - 76,073 - 218,420 - 55,838 — — - 30,338 78,740 - 12,172 1,503,683 30,338 140,554 76,073 Interest TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES 0VER(UNDER) EXPENDITURES - 18.148 2 48 - 156,208 (3 596) 2,040 1,207,168 (487 931) - 274.258 (48.095) - 109.078 (L082) 2,040 1,764,860 (544352) OTHER FINANCING SOURCES (USES) Transfers in TOTAL OTHER FINANCING SOURCES (USES) - - 61,047 61.047 526,608 526.608 9,994 9.994 — - 597,649 597.649 NE'I‘ CHANGE IN FUND BALANCES FUND BALANCES, Beginning of year (2,248) 41,429 57,451 108,116 38,677 78,393 (38,101) 76,590 (3,082) 23,706 52,697 328,234 FUND BALANCES, End of year $ 39,181 $ 165,_5_6_7__ $ 117.070 $ 38.489 $ 20,624 $ 330931 65 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE LAW LIBRARY SPECIAL REVENUE FUND For the Year Ended December 31, 2019 VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) FUND BALANCE, Beginning of year $ 41,429 S 41,429 $ 41,429 $ - RESOURCES (INFDOWS) Fines and forfeitures 17,500 17,500 15,390 (2,110) Investment income 1,000 1,000 510 (490) Total Resources (Inﬂows) 18.500 18,500 15.900 (2,600) AMOUNTS AVAILABLE FOR APPROPRIATION 59,929 59,929 57,329 (2,600) CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures Judicial 18,500 18,500 18,148 352 TOTAL CHARGES TO APPROPRIATIONS 18 500 18 500 18 148 352 CHANGE IN FUND BALANCE - - (2 248) (2 248) FUND BALANCE, End of year $ 41,429 $ 41.4__9_ $ 39.181 $ (2,248) NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 66 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE SHERIFF'S LAW ENFORCEMENT SPECIAL REVENUE FUND For the Year Ended December 31, 2019 BUDGET AMOUNTS ORIGINAL FINAL ACTUAL VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE) FUND BALANCE, Beginning of year RESOURCES (INFDOWS) Fines and forfeitures Charges for services Contributions and donations Investment income Transfer in Total Resources (Inﬂows) AMOUNTS AVAILABLE FOR APPROPRIATION 3 - - 108,116 8,000 104,000 45,000 157.000 265,1 16 S - - 108,116 8,000 104,000 45,000 157,000 265,1 16 $ 108,116 7,107 100,813 44,163 529 61,047 213,659 321,775 $ - (893) (3 ,187) (837) 529 61 ,0ﬂ 56,659 56,659 CHARGES T0 APPROPRIATIONS (OUTFLOWS) Current Expenditures Public safety TOTAL CHARGES TO APPROPRIATIONS 157,000 157,000 157,000 157,000 156,208 156.208 792 792 CHANGE IN FUND BALANCE — — 57.451 57,451 FUND BALANCE, End of year $ 108E116 $ 108E116 $ 165E567 $ 57!451 NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 67 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE EMERGENCY TELEPHONE SYSTEM SPECIAL REVENUE FUND For the Year Ended December 31, 2019 VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) - FUND BALANCE, Beginning of year S 78,393 $ 78.393 S 78,393 $ RESOURCES (INFLOWS) Charges for services 565,300 565,300 719,031 153,731 — Miscellaneous — 207 207 - Transfer in 642,000 526.608 (115,392) Total Resources (Inﬂows) 565,300 1.207.300 1,245,846 38,546 AMOUNTS AVAILABLE FOR APPROPRIATION 643,693 1,285,693 1.324.239 38546 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures - Public safety 1,207,300 1,207,169 131 - TOTAL CHARGES TO APPROPRIATIONS 1.207.300 1.207.169 131 - CHANGE IN FUND BALANCE 565.300 38.677 38.677 FUND BALANCE, End of year $ 643E693 S 78,393 S 1 17,070 $ 38!677 NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 68 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE DRUG TASK FORCE SPECIAL REVENUE FUND For the Year Ended December 31, 2019 BUDGET AMOUNTS ORIGINAL FINAL ACTUAL VARIANCE WITH FINAL BUDGET POSITIVE (NEGATIVE) FUND BALANCE, Beginning of year RESOURCES (1'N"FDOWS) Intergovemmental Fines and forfeitures Investment income Miscellaneous Transfer in Total Resources (Inﬂows) AMOUNTS AVAILABLE FOR APPROPRIATION $ 76,590 170,000 80,000 - 5,000 20,000 275.000 351,590 5 - 76,590 170,000 80,000 5,000 20,000 275,000 351.590 $ 76.590 159,343 66,457 226 137 9,994 236,157 312.747 3 - (10,657) (13,543) 226 (4,863) ( 10.006) (3 8.843) (38,843) CHARGES T0 APPROPRIATIONS (OUTFIDWS) Current Expenditures Public safety TOTAL CHARGES TO APPROPRIATIONS 275,000 275,000 275,000 275,000 274.258 274,258 742 742 CHANGE IN FUND BALANCE - - 138 101) (38 101) FUND BALANCE, End of year 5 76!590 S 76!590 $ 38§489 5 (38!101z NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 69 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE HOTEL/MOTEL TAX SPECIAL REVENUE FUND For the Year Ended December 31, 2019 VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) - FUND BALANCE, Beginning of year 5 23.706 S 23,706 5 23,706 $ RESOURCES (INFLOWS) Taxes 105,000 105,000 102,221 (2,779) Investment income 5,000 5,000 3,775 (1,225) Total Resources (Inﬂows) 110,000 110.000 105.996 (4.004) AMOUNTS AVAILABLE FOR APPROPRIATION 133,706 133.706 129.702 (4,004) CHARGES TO APPROPRIATIONS Current Expenditures Housing and development 110,000 1 10,000 109,078 922 TOTAL CHARGES TO APPROPRIATIONS 110,000 110,000 109,078 922 ' CHANGE IN FUND BALANCE (3.082) (3,082) FUND BALANCE, End of year $ 23!706 $ 23,706 $ 20% 3 (3,08_2_1 NOTES TO THE BUDGETARY COMPARISON SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 70 ---PAGE BREAK--- ASSETS Cash TOTAL ASSETS LIABILITIES Amounts held in trust TOTAL LIABILITIES PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS December 31, 2019 TAX COMMISSIONER CLERK 01? SUPERIOR COURT PROBATE COURT MAGISTRATE COURT TOTAL $ 818.611 $ 447,666 $ 22 522 s 232,356 $ 1.557.792 $ 818,611 $ 447E666 3 22:52 232356 $ 1,§57,792= $ 818,611 $ 447.666 $ 22,522 $ 232.356 $ 1.5s7,792 $ 818.611 $ 447,666 $ 22,522 232E356 s 1g57,792 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS For the Year Ended December 31, 2019 ASSETS Cash Balance, January 1, 2019 Additions Deductions Balance, December 31, 2019 TOTAL ASSETS 5 $ TAX COMMISSIONER 1,291,751 41,816,829 (42,289.969) 818,611 818i611 CLERK OF SUPERIOR COURT $ 307,026 2,026,401 (l.885,761 [ 447,666 3 447.666 S $ PROBATE COURT 22,551 375,963 (375,992) 77 577 22!522 S S MAGISTRATE COURT 233,646 237,565 (238,855) 232.356 232E356 SHERIFF $ 63,810 513,844 (541,017) 36.637 $ 36§637 S $ TOTAL 1,918,784 44,970,602 (45.33 1 .594) 1.557.792 1,§57.792 LIABILITIES Due to County Balance, January 1, 2019 Additions Deductions Balance, December 31, 2019 S - 13,515,811 (l3,515,811) 3 - 1,366,099 0.366.099) S 242,118 (242,118) $ - 48,701 (48,701) $ - 185,169 (185,169) 3 - 15,357,898 05,357,898) Amounts held in trust Balance, January 1, 2019 Additions Deductions Balance, December 31, 2019 1,291,751 28,301,018 08,774,158) 818,611 307,026 660,302 (519,662) 44L666 22,551 133,845 (133,874) 22 522 233,646 188,864 (190,154) 232,356 63,810 328,675 (355,848) 36,637 1,918,784 29,612,704 09,973,696) 1,557,792 Total Liabilities Balance, January 1, 2019 Additions Deductions Balance, December 31, 2019 TOTAL LIABILITIES $ 1,291,751 41,816,829 (42.289,969) 818.611 818E611 3 307,026 2,026,401 (1,885,761) 447.666 447,666 $ 22,551 375,963 (375392) 22 522 22l522 $ 233,646 237,565 (238,855) 232,356 232E356 3 63,810 513,844 (541,017) 36,637 36§637 $ 1,918,784 44,970,602 (45.331,594) 1,557,792 1g57.792 72 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL PURPOSE LOCAL OPTION SALES TAX Year Ended December 31, 2019 ORIGINAL CURRENT EXPENDITURES ' PROJECT ESTIMATED COSTS ESTIMATED COSTS PRIOR YEARS CURRENT YEAR Special Local Option Sales Tax 2014 Projects Road Improvements $ 14,418,000 $ 14,418,000 $ 8,854,587 $ 3,023,023 Capital Improvements Public Safety 5,987,000 5,987,000 3,718,437 1,506,443 Library 2,000,000 2,000,000 133,176 - Water and Sewer 800,000 800,000 - - Contractual Payments City of Jasper 6,000,000 6,000,000 3,446,847 1,067,196 City of Nelson 729,000 729,000 418,792 129,664 City of Talking Rock 66,000 66,000 37,915 1,739 1 Total 2014 Projects $ 30,000,000 $ 30,000,000 $ 16,609,754 $ 5,738,065 73 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA Reconciliation of Expenditures for SPLOST Year Ended December 31, 2019 Statement of Revenues, Expenditures and Changes in Fund Balance (page 5) Expenditures $ 5,846,549 Subtotal 5,846,549 Less items not included as expenditures on SPLOST schedule below: Proceeds from notes from direct borrowings Add back unspent proceeds Subtotal of adjustments (1,030,000) 921,516 §108,484! Expenditures reported on Splost schedule S 5,738,065 Schedule of Projects Constructed With Special Purpose Local Option Sales Tax (page 73) 2014 SPLOST $ 5,738,065 Total $ 5,738,065 74 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF STATE CONTRACTUAL ASSISTANCE FOR THE YEAR ENDED DECEMBER 31, 2019 Current Year Amount Due from State Program Name Contract Number Received Expended (to) State 93-202000133 Family Connections 93-1919001 14 $ 49,322 $ 49,322 $ 1 1,915 The above schedule has been prepared on the modiﬁed accrual basis of accounting. 75 ---PAGE BREAK--- ISLNINI-xx AI)\‘I\l>R*- ANI: PH [PHONE REDACTED] FX [PHONE REDACTED] 525 CANDLER STREET, NE PO DRAWER 2396 CAINESVILLE, GEORGIA 30503 Exceeding expectations. Always. 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 ' G0 VERNMENT A UDITING STANDARDS August 27, 2020 Board of Commissioners PICKENS COUNTY, GEORGIA Jasper, Georgia We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to ﬁnancial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the ﬁnancial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining ﬁmd infonnation of PICKENS COUNTY, GEORGIA, as of and for the year ended December 31, 2019, and the related notes to the ﬁnancial statements, which collectively comprise the PICKENS COUNTY, GEORGIA’s basic ﬁnancial statements, and have issued our report thereon dated August 27, 2020. Our report includes a reference to other auditors who audited the ﬁnancial statements of the Pickens County Health Department, as described in our report on PICKENS COUNTY, GEORGIA’s ﬁnancial statements. This report does not include the results of the other auditors’ testing of internal control over ﬁnancial reporting or compliance and other matters that are reported on separately by those auditors. INTERNAL CONTROL OVER FINANCIAL REPORTING In plarming and performing our audit of the ﬁnancial statements, we considered PICKENS COUNTY, GEORGIA’s internal control over ﬁnancial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the ﬁnancial statements, but not for the purpose of expressing an opinion on the effectiveness of PICKENS COUNTY, GEORGIA’s internal control. Accordingly, we do not express an opinion on the effectiveness of the PICKENS COUNTY, GEORGIA’s internal control. 76 ---PAGE BREAK--- A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deﬁciency, or a combination of deﬁciencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s ﬁnancial statements will not be prevented, or detected and corrected on a timely basis. A signiﬁcant deﬁciency is a deﬁciency, or a combination of deﬁciencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deﬁciencies in internal control that might be material weaknesses or, signiﬁcant deﬁciencies. Given these limitations, during our audit we did not identify any deﬁciencies in internal control that we consider to be material weaknesses. We did identify certain deﬁciencies in internal control that we consider to be signiﬁcant deﬁciencies, described below: Magistrate Court 2019-001 Statement of Condition: Appropriate segregation of duties does not exist among custody, receipting, recording, distribution, reconciliation of cash accounts and other operational ﬁmctions in the ofﬁce. Criteria: Internal controls should be in place which provide reasonable assurance that an individual can not misappropriate funds without such actions being detected during the normal course of business. Effect of Condition: Failure to properly segregate duties among custody, receipting, recording, distribution, and reconciliation of accounts can lead to misappropriation of funds that is not detected in a timely manner by employees in the normal course of performing their assigned functions. Cause at Condition: This is caused by the limited number of employees in each ofﬁce to perform all of the duties. Recommendation: We recommend the Court segregate duties relative to the custody, receipting, recording, distribution, and reconciliation of accounts. Resgonse: Administration of the Pickens Magistrate Court has changed and internal controls have been implemented to allow adequate separation of duties even with limited staff. 77 ---PAGE BREAK--- 2019-002 Statement of Condition: During testing, we noted funds held were not properly reconciled or accounted for during month close procedures. Criteria: Reporting should be in place to ensure funds held are accurate. Eﬂect of Condition: The risk of not knowing for whom the funds belong. Cause at Condition: There is insufﬁcient record keeping. Recommendation: We recommend that a report is implemented to agree balances held at the end of each month to the appropriate parties to whom these amounts will be paid. Resgonse: The Magistrate Court has installed new computer software to reconcile and track funds held. This program provides reporting so that funds are accounted for and reconciled at the end of each month. This will ensure that accounting for funds held is accurate. Tax Commissioner 2019-003 Statement of Condition: During testing, we noted that the bank reconciliation contained outstanding transactions that have been listed for more than 90 days amounting to $21,553.20. Criteria: An accurate bank reconciliation should be perfonned on a basis and items outstanding for more than 90 days should be evaluated and removed from the bank reconciliation. Effect of Condition: The risk of misrepresenting the cash balance. Cause 01 Condition: There is not a process in place to review and remove outstanding checks from the bank reconciliation. Recommendation: We recommend the Tax Commissioner work to clear or adjust the balances and implement a process of clearing reconciling items from the bank reconciliation in a timely manner. 78 ---PAGE BREAK--- Resgonse: We rectiﬁed a large portion of those funds by tracking the recipients to the correct address (such as one business moving to another state). We have put policies in place to prevent checks from remaining outstanding longer than 90 days in the future. Clerk of Court 2019-004 Statement of Condition: The court is holding funds in its registry for an excessively long period of time. Criteria: Funds held should be disbursed to the appropriate party in a timely manner or remitted to the State of Georgia as unclaimed funds. Etlect of Condition: Although the issue has not had a material effect on the ﬁnancial statements, the court should not hold funds that are legally owed to others. Cause of Condition: Records for funds held from a previous Clerk's term are not detailed by case number. Recommendation: We recommend that the Court disburse the funds held in a timely manner, as legally feasible. Either court orders should be obtained to disburse the funds or the funds should be turned over to the state if unable to disburse. Resgonse: The amount in the Court Registry was inherited to the current Clerk from previous administrations. In the three years the current Clerk has been in ofﬁce, the balance held in the registry has decreased from $1,174,762 to $363,322, which also includes funds from open cases that are to remain in the account until the cases are concluded, so the amount to be reimbursed is actually lower than this stated amount. The Clerk’s ofﬁce has made great strides to reduce this amount tremendously and feels it is best to try and get this money back to the people it is owed instead of turning it over to the state. There are Orders done that are not clear and by Judges that are no longer sitting and the previous Clerks records has many mistakes. The Clerk and Chief Judge believe that it needs to be looked into further with help from the County Attorney to collaborate to understand and interpret the unclear Orders. The incorrect discrepancies in the previous Clerks records will be subjected to further, independent examination. If there is no clear understanding of Orders after review and can come to no person to remit it, the Clerk will then turn that money over to the state aﬁer the 7 years that we are required to hold the money by law. 79 ---PAGE BREAK--- I 2019-005 2019-006 Law Library Statement of Condition: The Law Library does not record revenue and expenditure activities. Criteria: Reporting should be in place to ensure funds held are accurate. E[Zect of Condition: The risk of not knowing for where the monies are being received and spent. Cause at Condition: There is not a process in place to record activity on a basis. Recommendation: We recommend that each month's activity is recorded and reconciled in a timely manner. Resgonse: The Law Library is now utilizing accounting soﬂware to record and track Law Library bank account activity and complete bank reconciliations Finance Statement of Condition: During the course of performing the audit, we discovered that there was a missing receivable from the Board of Education that was due to lack of timeliness in invoicing procedures. Criteria: Invoices should be issued to the appropriate party in a timely manner. E[[ect of Condition: Revenue in the current period is understated. Cause at Condition: The invoice for this reimbursement was sent to the Board of Education later than in previous years causing this receivable not to be recognized in the correct ﬁscal period. Recommendation: We recommend a control to be enacted to ensure invoices are processed timely and a review procedure put into place. 80 ---PAGE BREAK--- Resgonse: Corrective measures have been enacted with bi-annual invoice billing schedules to ensure processing of invoices and receipt of revenue in a timely manner. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether PICKENS COUNTY, GEORGIA’s ﬁnancial statements are ﬂee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of ﬁnancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PICKENS COUNTY, GEORGIA'S RESPONSE TO FINDINGS The PICKENS COUNTY, GEORGIA's response to the ﬁndings identiﬁed in our audit are described above. The PICKENS COUNTY, GEORGIA's responses were not subject to the auditing procedures applied in the audit of the ﬁnancial statements and, accordingly, we express no opinion on them. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other ' gm, :MWjg,,,mv 81

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