Document Pickenscountyga_doc_4980078afc

PICKENS COUNTY, GEORGIA ANNUAL FINANCIAL REPORT (WITH INDEPENDENT AUDITORS' REPORT) Year Ended December 31, 2018 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA ANNUAL FINANCIAL REPORT For The Fiscal Year Ended December 31, 2018 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 2 FUND FINANCIAL STATEMENTS Reconciliation of the Statement ofRevenues, Expenditures and Changes in Fund Balances Balance Sheet - Governmental Funds 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement ofNet Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental 5 of Governmental Funds to the Statement of Activities 6 Statement of Net Position - Proprietary Funds 7 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 8 Statement of Cash Flows - Proprietary Funds 9 Statement of Assets and Liabilities - Fiduciary Funds 10 COMPONENT UNITS Combining Statement of Net Position 11 Combining Statement of Activities 12 NOTES TO FINANCIAL STATEMENTS 13 - 56 REQUIRED SUPPLEMENT ARY INFORMATION Schedule of the Net Pension Liability-ACCO Defined Benefit Plan 57 Schedule of Changes in the Net OPEB Liability and Related Ratios- Health CMe Plan of Schedule of Notes to Required Supplementary Information - Health Care Plan of Pickens Budgetary Comparison Schedule - General Fund 63 - 64 Schedule of Contributions - ACCG Defined Benefit Plan 58 Schedule of Notes to Required Supplementary Information - ACCG Defined Benefit Plan 59 Pickens County, Georgia 60 Schedule of Employer Contributions - Health Care Plan of Pickens County, Georgia 61 County, Georgia 62 ---PAGE BREAK--- COMBINING STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Supplemental Budgetary Comparison Schedule 66 -Law Library Special Revenue Fund 67 -Sheriff's Law Enforcement Special Revenue Fund 68 -Emergency Telephone System Special Revenue Fund 69 -Drug Task Force Special Revenue Fund 70 -HoteL'Motel Tax Special Revenue Fund 71 -Restricted Programs Special Revenue Funds 72 FIDUCIARY FUNDS Combining Statement of A.ssets and Liabilities - All Agency Funds 73 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 74 SUPPLEMENTAL INFORMATION Schedule of Projects Constructed with Special Purpose Local Option Sales Tax 75-76 Schedule of State Contractual Assistance 77 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 78-80 ---PAGE BREAK--- PH [PHONE REDACTED] rx 770.5:16.5223 525 O\Nou• S'rnlET, NE PO DRIIW[R 2396 Bate7carter GA1NESv1u.t, G•o•C•A 30503 'WWW,8ATESCARTER.COM Exceeding expectaLions. Always. INDEPENDENT AUDITOR'S REPORT June 20, 2019 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, 2018, 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 accow1ting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the PICKENS COUNTY HEALTH DEPARTMENT, a component unit of the County, as of and for the year then ended June 30, 2018, which represent 14.06%, (30.22)%, and 86.80%, 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 fund, and the aggregate remaining fund information of PICKENS COUNTY, GEORGIA, as of December 31, 2018, 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. Change in Accounting Principle As described in NOTE 19 to the financial statements, the County recorded a change in the other postemployment benefits liability in accordance with GASB Statement 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions." Our opinion is not modified with respect to that matter. 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 - ACCO Defined Benefit Plan, Schedule of Contributions - ACCO Defined Benefit Plan, Schedule of Notes to Required Supplementary Information - ACCO 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, and Budgetary Comparison Schedule - General 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 11 ---PAGE BREAK--- 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. 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 America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor fund 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 June 20, 2019 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. 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, 2018. 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 $53,186,366 (net position) for the year reported. This represents a increase of$1,409,540 from the previous year. Total net position is comprised of the following: 1. Net investment in capital assets equaled $48,402,165. 2. Net position of $4,644,705 are restricted for debt service, capital outlay, or by other constraints imposed by law or regulations. 3. At the end of 2018, unrestricted net position balance increased by $2,637,084 from $(2,497,588) to $139,496. The County's governmental funds reported total ending fund balance of $12,155,979. This compares to the prior year ending fund balance of $12,765,058 showing a decrease of $(609,079) during the current year. At the end of 2018, unassigned fund balance for the County's governmental funds was $8,234,338. 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) government-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 government-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 Countys 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 government-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 government-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 governmental funds, proprietary funds, or fiduciary funds. Governmental funds are used to account for those functions reported as governmental activities in the government-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 funds. Proprietary funds are used to report the functions presented as business-type activities in the government-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 funds are considered agency funds. Notes to the Financial Statements provide additional information that is essential to a full understanding of the data presented in both the government-wide and fund financial statements. The notes to the financial statements begin on page 13 of this report. V ---PAGE BREAK--- GOVERNMENT-WIDE FINANCIAL ANALYSIS The table below presents the Countys condensed Statement of Net Position. Comparison analysis is made from the year ended December 31, 2018 to the year ended December 31, 2017 as required by GASB Statement No. 34. Comparative Schedule of Net Position December 31 Governmental Acdvities Business-type Activities Total PrimaryGovernment 2018 2017 2018 2017 2018 2017 Capital assets (net of depreciation) S 43,246,119 $ 43,061,010 $ 19,216,241 $ 18,243.550 s 62,462.360 s 61,304.560 Current and oilier assets 16.044.729 14,676.436 (11809.935} (2,835.172} 14,234,794 11.841.264 Total Assets 59.290,848 57 737 446 17,406,306 15.408,378 76 697 154 73,145,824 Total deferred outflows of resources 1,432,973 1,000,001 1.432.973 1,000.001 Long-tero1liabilities 9,491,046 10,962,290 12,206.253 10,233,171 21,697,299 21,195,461 Other liabilities 2,419.278 940 039 352.106 179 439 2.771,384 1.119478 Total liabilities I 1.9101324 11.902.329 12,558.359 10.412,610 24.468.683 22,314.939 475 078 54 060 Total deferred inflows of resources 475.078 54060 Net Position: Net investment in capital assets Restricted 41,403,763 3,806,983 41,582,225 4,675,134 6.998,402 837,722 8,017,055 48,402,165 4,644,705 49,599,280 4,675,134 Unrestricted 3.127.673 523.699 (2,988.177) (3,021,287} 139.496 (2.497.588) Total net p0sition S 48,338.419 46?811058 $ 4,847.947 $ 4.9951768 $ 53,186,366 s 51.776.826 i 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 $53,186,366 at December 31, 2018 compared to $51,776,826 at December 31, 2017. The total increase was $1,409,540. The largest portion of net position, $48,402,165 (91 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 future spending. Although the Countys 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 $4,644,705 of restricted net position that is subject to external restrictions, constitutional provisions, or enabling legislation on how they can be used. The remaining portion of net position represents $139,496 of unrestricted net position. The table below presents the Countys condensed Statement of Activities for the year ended December 31, 2018 with comparative amounts for the year ended December 31, 2017. vi ---PAGE BREAK--- Comparative Schedule of Changes in Net Position December 31 Governmental Activities Business-type Activities Total Primary Government 2018 2017 2018 2017 2018 2017 REVENUES Program revenues Charges for services $ 5,413,042 $ 5,953,786 $ 2,871,174 $ 2,710,643 $ 8,284,216 $ 8,664,429 Operating grants and contributions 4,184,847 4,518,129 16,006 4,200,853 4,518,129 Capital grants and contributions _ 157 770 17 973 517 056 Subtotal for program revenues 9,615,862 10,831,201 2,887,180 2,868.413 12.503.042 13,699,614 General revenues Property iaxcs 13,001,906 12,102,775 13,001,906 12,102,775 Sales taxes 8,430,048 7,694,259 8,430,048 7,694,259 Insurance premium tax 1,613,886 1,496,738 1,613,886 1,496,738 Franchfae tax Other taxes 306,133 384,426 306,133 384,426 Interest and investment earnings 17,795 10,452 3 17,795 10,455 Other revenue 530,004 538,990 530,004 538,990 Grants and contributions not restricted to aspecific program 49,496 49,496 Gain on sale of capital assets 37 382 14 697 19 000 56 382 14 697 Subtotal for general revenues 23,986,650 22.242,337 19 000 3 24,005,650 22,242,340 Total revenues 33,602,512 33,073.538 2,906,180 2,868.416 36,508,692 35,941,954 EXPENSES Program expenses General government 3,925,304 4,393,388 3,925,304 4,393,388 Judicial 5,670,717 6,425,440 5,670,717 6,425,440 Public safety 13,732,265 14,598,060 13,732,265 14,598,060 Public works 7,006,435 6,311,425 7,006,435 6,3ll,425 Health & welfare 614,966 913,171 614,966 913,171 Recreation & culture 1,080,781 1,113,634 1,080,781 1,113,634 Housing and development 757,693 755,788 757,693 755,788 Interest and paying agent fees 72,037 87,9ll 72,037 87,911 Water 2,404,269 2,401,115 2,404,269 2,401,115 Airport 649 732 580.662 649 732 580 662 Total expenses 32,860.198 34,598,817 3.054.001 2 981 777 35,914,199 37,580,594 Change in net position before transfers 742,314 (1,525,279) (147,821) (113,361) 594,493 (1,638,640) Transfers (143.409) 143 409 Change in net position 742 314 (1,668,688) (147,821) (1,638,640) Net position, beginning of year 46,781,058 47,983,735 4,995,768 4,965,720 51,776,826 52,949,455 Change in accounting principle 815,047 815,047 Prior period adjustment 466,011 466,01 l Net position, beginning as restated 47.596.105 48,449.746 4,995.768 4,965.720 52,591,873 53,415,466 Net position, end of year $ 48,338,419 $ 46,781.058 $ 4.847,947 $ 4,995,768 $ 53,186,366 $ 51,776,826 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 $23,986,650 in 2018 compared to $22,242,337 in 2017. This change is an increase of 7.84%. Governmental Activities Expenses by function as reflected in the table above show that during 2018, the County expended 42% for Public Safety, 17% for Judicial, 21 % 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 2017, the County expended 42% for Public Safety, 19% for Judicial, 18% for Public Works, 13% for General Government, 3% for Culture and Recreation, 2% for Housing and Development, 3% for Health and Welfare, and 1 % for Interest on Long-term debt. vii ---PAGE BREAK--- Interest 0% Housing & Development 2•1,1/ Public Works 21% Recreation / Health & Welfare 2% Business-type activities decreased the County's net position by $(14 7,821). Ren~noes by Source Aetwities 1% Other' 13% Operaunq Grants Sales Tax 17% Ch aroes for Services PropertyTax 41% ' Other Investment o~.Other 1 Capital Granes 0% *Due to rounding, charts may not always equal 100% Expenses by Function Gov=meut-\\"ide Acti\"ities 12% General Government Jud1c1al 17% 41% Public Safety Vlll ---PAGE BREAK--- FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the County's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. This information is useful in assessing the Government's financing requirements. Specifically, unassigned fund balance can be a useful measure of a government's net resources available for spending at the end of the fiscal year. The major governmental funds are the General Fund and SPLOST. 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 funds reported ending fund balance of $9,058,891. This compares to the prior year ending fund balance of$8,703,790 showing an increase of $355,101 during the current year. At the end of fiscal year 2018, unassigned fund balance for the County's governmental funds was $8,234,338. The County's other major governmental fund is the SPLOST fund. The fund balance of the SPLOST fund decreased by $(1,187,888) 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 fund has an ending fund balance of $2,454,006 which is restricted for capital projects as outlined in the 2014 SPLOST referendum. In 2018, governmental revenues increased $145,485 from 2017. This increase is primarily due to activity in the General Fund related to an increase in revenues from taxes, licenses and permits and charges for services. There was an 9.6% increase in revenues in the SPLOST fund. Revenues by Source Fund Le,·el • Go\'emmental Intergovernmental 12% License & Permits 71% Taxes Fines & Forfeitures 2% Charges tor Services 12% \ ix ---PAGE BREAK--- 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, 2018 total $62,462,360 (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-we Activities Total Prima~ Government 2018 2017 2018 2017 2018 2017 Land and improvements $ 4,782,483 $ 4,713,950 $ 2,061,538 $ 2,121,519 $ 6,844,021 $ 6,835,469 Construction in progress 387,942 7,727:Z,21 6,091,502 8,115,163 6,091,502 Buildings 29,186,527 29,925,985 220,472 246,713 29,406,999 30,172,698 Machinery & equipment 2,337,980 2,314,850 535,853 575,699 2,873,833 2,890,549 Furniture& fixtures Vehicles 2,336,920 1,463,404 124,446 114,258 2,461,366 1,577,662 Infrastructure 4,214,267 4,642,[PHONE REDACTED] 9,093,859 12,760,978 13,736,680 Total Assets $ 43,246,119 $ 43,061,010 $ 19,216,241 $ 18,243,550 $ 62,462,360 $ 61,304,560 Detailed information on the County's capital assets can be found in Note 6 of the basic financial statements. Long-term Debt. During 2018, the long-term debt of Pickens County's governmental activities decreased $(1,471,244). The inception of capital leases for the purchase of vehicles and equipment totaled $218,490 during 2018. The notes payable category decreased due to the continual repayment of debt. The net pension liability decreased $(22,638), and the net OPEB obligation decreased by $(794,058) due to the implementation of GASB 75 during 2018. Long­ term debt increased in business-type activities in the amount of$1,973,082. Pickens County's Outstanding Debt Bonds Payable, Capital Leases, Notes Payable, Claims, and Other Debts Governmental Activities Business-we Activities Total Prima!Y Government 2018 2017 2018 2017 2018 2017 Bonds payable $ $ s 10,622,130 $ 10,187,637 $ 10,622,130 $ 10,187,637 Capital leases 715,712 1,024,185 7,632 38,858 723,344 1,063,043 Notes payable 35,449 454,600 1,568,477 1,603,926 454,600 Landfill closure/postclosure 377,600 365,500 377,600 365,500 Compensated absences 306,703 245,727 8,014 6,676 314,717 252,403 Net pension liability 7,091,043 7,113,681 7,091,043 7,113,681 Net OPEB liability 964 539 1,758,597 964 539 I 758 597 Totals $ 9,491,046 s 10,962,290 $ 12,206,253 s 10,233,171 s 21,697,299 $ 21,195,461 Additional information regarding Pickens County's long-tenn debt can be found in Note 7 on pages 33 through 37 of this report. ECONOMIC FACTORS AND THE 2019 BUDGET • The 2018 millage rate decreased from 7.88 to 7.84 per $1,000 of valuation. The 2018 millage rate was a decrease of 0.5%, however the 2018 tax digest reflected an increase in overall valuation. The 2018 total County taxes levied increased $181,853 as compared to 2017. X ---PAGE BREAK--- • The 2019 budget was approved and adopted by the Board of Commissioners on December 20, 2018. The 2019 operating budget increased from $26,157,420 to $26,327,904, an increase of $170,840. 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. • 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, 2018 PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE COMPONENT ASSETS ACTIVITIES ACTIVITIES TOTAL UNITS Cash $ 8,921,011 $ 800 s 8.921,811 $ 466,259 lnvestments 22.732 22.732 Capital loase receivable Receivables (net of allowance for uncollectibles) Internal balances 3,840,888 3.007.748 281,287 (3.007.748) 4,122.175 168.000 75,552 Inventories 49,820 70.252 120,072 4.560 Prepaid items 64,838 64,838 Restricted assets: Cash 137,692 837,722 975,414 Customer deposits Capital lease receivable 7,752 7.752 2.520.000 Capital assets: Capital assets not being depreciated Capital assets being depreciated Less: accumulated depreciation Capital assets, net of depreciation TOTAL ASSETS 4,759.938 65,142.387 !26,656,206) 4J,24§,119 59J90,848 9.417,815 19.653.831 (9.855.405l 19.216 241 17.406 306 14.177.753 84.796,218 (36,511.611) 62.462,360 76,697,154 157.737 (76,478) 81.259 3.315,630 DEFERRED OUTFLOWS OF RESOURCES Pension expense OPEB expense TOTAL DEFERRED OUTFLOWS OF RESOURCES 1.404.223 28 750 1.432 973 1.404,223 28.750 I 432 973 66,237 57.963 124.200 TOTAL ASSETS & DEFERRED OUTFLOWS 60.723.821 17,406,306 78,130,127 3.439 830 LIABILITIES Accounts payable Accrued interest payable Other accrued items 2.203.522 215.756 256.396 12.279 18,853 2.459.918 12,279 234,609 17.122 Unearned revenue 64.578 64.578 960.958 Noncummt liabilities: Due within one year Compensated absences payable Accrued landfill closure/ post closure Notes payable Capital leases payable Revenue bonds payable 214.692 20.000 35.449 396.569 5.610 7.632 547.942 220.302 20,000 35.449 404.201 547.942 8.265 72.116 Due in more than one year Compensated absences payable Net pension liability Net OPEB liability Accrued landfill closure/ postclosure Notes payable Capital leases payable Revenue bonds payable 92.011 7.091.043 964.539 357,600 319,143 2,404 1.568.477 10 074.188 94.415 7,091,043 964.539 357,600 1,568.477 319.143 10.074.188 8,265 297.949 328.196 1.654.139 TOTAL LIABILITIES 11 910 324 12.558.359 24,468,683 3.347.010 DEFERRED INFLOWS OF RESOURCES Pension expense OPEB expense TOTAL DEFERRED INFLOWS OF RESOURCES 475,078 475.078 475,078 475 078 29,386 58,239 87 625 TOTAL LIABILITIES AND DEFERRED INFLOWS 01' RESOURCES 12 385 402 12 558.359 24,943.761 3 434.635 NET POSlTION Net investment in capital assets 41,403.763 6.998.402 48.402.165 81.259 Restricted for: Capital outlay projects 3,026,209 837.722 3,863.931 Judicial programs 493,969 493.969 Public safety programs 263.099 263.099 Housing and development programs 23.706 23,706 Unrestricted 3.127673 !2,988. I 77l 139 496 (76.064) TOTAL NET POSITION s 48 338 419 s 4.847 947 s 531186.366 $ 5 195 The accompanying notes are an integral part of this statement. I ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2018 FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT GOVERNMENTALACTIVITrES General government Judicial Public safety Public works Public health and welfare Recreation and c-ulture Ho\1singand development Interest Total Governmental Activities BUSINESS-TYPEACTIVITIES Water Airpon Total Business-Type Activities $ EXPENSES 3.925,304 5.670,717 13.732.265 7,006.435 614.966 1.080.781 757,693 72.037 32,860 198 2.404.270 649.732 3,054,()02 NET (EXPENSE) AND CHANGES IN NET POSITION.... PROGRAM REVENUES PRJMARY GOVERNMENT OPERATING CAPITAL COMPONENT CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTAL BUSINESS-TYPE SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL UNITS (3,040.930} s s 872,661 s 11,713 $ $ (3,040.930) s $ 1,245.475 3,337,313 (1,087,929) (1.087.929} 2.355.225 710,735 (10,666,305) ( I 0,666.305} 449.996 17,973 (6,538,466) (6,538.466) 33.966 125,086 (455,914) (455,914) 182.888 (897.893) (897,893} 272,831 (484,862) (484.862) 1n.031l !72,037! 541M42 4J84.847 17.973 {23,244 336} {23,244.336} 2,487,632 16.006 99,368 99,368 383 543 (266.J89J (266.189l 2 871.175 16.006 (166.821} (166-821} TOTAL PR1MARY GOVERNMENT $ 35.914.200 $ 8,284,217 $ 4,200.853 $ 17.973 {23,244,336} (166,821} {23.411,157) COMPONENT UNITS Health Department Development Authority TOTAL COMPONENT UNITS $ 572.206 307 068 $ 879.274 $ $ 367.054 I 1 I 717 478,771 $ 367,314 367.314 $ $ $ 162,162 (195.351} m,1s9J GENERAL REVENUES Property taxes Sales taxes Insurance premium taxes Real estate recording taxes Other taxes Total taxes Unrestricted invesunent earnings Grants and contributions not restricted to a specific program Gain on sale of capital assets TOTAL GENERAL REVENUES AND TRANSFERS 13,001.906 8,430.048 1.613.886 306.133 530 004 23.881,977 17.795 49,496 37.382 23,986.650 19.000 19.000 13,001.906 8,430,048 1,613.886 306.133 530 004 23,881,977 17.795 49,496 56.382 24.005.650 469 469 CHANGES IN NET POSITION NET POSITION, Beginning CHANGErNACCOUNTING PRINCIPLE PRJOR PERIOD ADJUSTMENT NET POSITION, Beginning as restated NET POSJTION, Ending 742 314 46,781.058 815.047 47.596.105 $ 48.338.419 s (147.82ll 4,995,768 4,995.768 4.847.947 $ 594.493 51.776.826 815,047 52.591,873 53J86.366 $ 132.1201 484.976 (338,953) {108,108) 37.915 5.195 The accompanying notes are an integral part of this statement. 2 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA BALANCESHEET GOVERNMENTAL FUNDS December 31, 2018 OTHER NONMAJOR TOTAL GOVERNMENTAL GOVERNMENTAL ASSETS GENERAL SPLOST FUNDS FUNDS Cash $ 5,125,716 $ 3,189,181 $ 606,115 $ 8,921,012 lnveshnents 22,731 22,731 Receivables (net of allowance for uncollectibles) lnterfund receivables 2,856,589 3,242,287 475,597 508,701 277,630 3,840,887 3,519,917 Prepaid items Inventories 64,838 49,820 64,838 49,820 Restricted assetS: Cash 137 692 137 692 TOTAL ASSETS 11 476,942 3,664,778 1,415,177 16 556 897 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ [PHONE REDACTED] $ \664,778 $ 1.415 177 $ 16;556i897 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 797,320 $ 1,210,772 $ 195,429 $ 2,203,521 Other accrued items 215,756 215,756 lnterfund payables 192,192 319 977 512,169 TOTAL LIABILITIES 989,512 11210,772 731 162 2 931446 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - fines 1,428,539 40 933 1,428,539 40,933 TOT AL DEFERRED INFLOWS OF RESOURCES 1.428.539 40,933 I 469,472 TOTAL LlABILITIES AND DEFERRED INFLOWS OF RESOURCES 2,418,051 1,210,772 772 095 4 400 918 FUND BALANCES Nonspendable: Prepaid expenditure 64,838 64,838 Inventories 49,820 49,820 Restricted: Capital outlay projects 572,203 2,454,006 3,026,209 Judicial programs 137,692 356,277 493,969 Public safety programs 263,099 263,099 Housing and development programs 23,706 23,706 Unassigned 8,234,338 8 234 338 TOTAL FUND BALANCES 9,058,891 2,454,006 643 082 12 155 979 TOTAL LIABILITIES, DEFERRED JNFLOWS OF RESOURCES AND FUND BALANCES $ [PHONE REDACTED] $ 316641778 $ I 415 177 $ 16,556,897 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, 2018 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 funds. 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 $ 12,155,979 43,246,119 1,428,539 40,933 1,469,472 (7,091,043) 929,145 (306,703) (715,712) (964,539) 28,750 (35,449) (377,600) (8,533,151) Total net position of governmental activities (page 1) $ 48,338,419 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, 2018 OTHER NONMA.JOR TOTAL GOVERNMENTAL GENERAL SPLOST GOVERNMENTALFUNDS FUNDS REVENUES Taxes $ 18,325,735 $ 4,958,587 s 99.523 $ 23,383,845 Licenses and permits Intergovernmental Fines and forfeitures 445,799 1,749.983 289,413 2,371.792 439,601 445,799 4.121.775 729.014 Charges for services Contributions and donations 3,097,855 83,902 1,009,612 28.666 4,107,467 112,568 lnveslillentincome 10,917 17,973 6.878 35,768 Miscellaneous 116 906 13.855 130.761 TOTAL REVENUES 24,120.510 4 976.560 3,969,227 33.066.997 EXPENDITURES Current Expenditures General government Judicial 3,387,005 3,207,772 2,158,641 3,387,005 5,366.413 Public safety 10.999,254 394.222 1.400.750 12,794.226 Public works 2,369.755 2,796.650 5,166.405 Public health and welfare 281.115 295.405 576,520 Recreation and culture 972.391 3,386 975,777 Housing and development 562.01 I 39.649 601.660 Intergovernmental 1,114,876 479.549 1.594,425 Capital outlay 734,048 1.699,848 17.470 2,451.366 Debt service Principal 723.986 147.506 74,623 946,115 Interest 60 586 7.960 3.490 72.036 TOTAL EXPENDITURES 23,297 923 6 164.448 4.469.577 33 931.948 EXCESS (DEFIC1£NCY) OF REVENUES OVER(UNDER) EXPENDITURES 82?.587 !1,187.888) !499,650} !864.951} OTHER FINANCING SOURCES (USES) Sale of county property Capital lease proceeds 37,382 218.490 37,382 218.490 Transfers in 723,358 723,358 Transfers out (723.358! (723,358) TOTAL OTHER FINANONG SOURCES (USES) (467,486) 723 358 255.872 NET CHANGE IN FUND BALANCES 355,101 !1.187.888) 223.708 (609,079J FUND BALANCES, Beginning of year 8.703,790 3,641.894 419,374 12,765,058 FUND BALANCES, End of year s 9.058 891 s 2.454,006 s 643 082 $ 12 155,979 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 ACTMTIES For the Year Ended December 31, 2018 Net change in fund balances (page 5) Amounts repo1ted 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 repo1ted as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlays Depreciation expense Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Prope1ty taxes Fines Revenues reported in thefunds that relate to prior years are not reported asrevenue in the statement of activities. Property taxes Under the modified acc11.1albasis 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 reported regardless of when financial resources are available. In addition, interest on long-tenn debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. Also, governmental funds repo1t 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 from borrowing including premiums and discounts P1incipal payments on long-tenn debt Acc1ued landfill closure/postclosure, current year Accrued landfill closure/postclosure, prior year Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not repo1ted as expenditures in governmental funds. Compensated absences, current year Compensated absences, prior year Net OPEB obligation is not available during the current pe.riod and therefore is not reported in the funds. End ofyear Beginning ofyear Changes in the OPEB plan actuarial assumptions are reported in the deferred outflows. End of year Beginning of year Changes in the ACCG pension plan actua1ial assumptions are reported in deferred outflows. End of year Beginning of year Changes in the ACCO pension plan actuarial assumptions arc repo1ted in deferred inflows. End of year Beginning of year Net pension liability is not available during the current period and therefore is not repo1ted in the funds. End ofyear Beginning ofyear Rounding Changes in net position of governmental activities (page 2) 2,451,366 {2,266.258) 1,428,539 40 933 (971,341) (218,490) 946,115 (377,600) 365,500 (306,703) 245 727 (964,539) 943 550 28,750 1,404,223 (1,000,001) (475,078) 54 060 (7,091,043) 7,113,681 s (609,079) 185,108 1,469,472 (971,341) 715,525 (60,976) (20,989) 28,750 404,222 (421,018) 22,638 $ 742,314 The accompanying notes are an integral part of this statement. 6 2 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2018 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRPORT FUND FUND TOTAL ASSETS Current Assets Cash $ 800 $ $ 800 Receivables (net of allowance for uncollectibles) 281,287 281,287 lnterfund receivables 167,917 167,917 Inventories 27,401 42,851 70,252 Restricted assets: Cash 837,722 837,722 Customer deposits 7 752 7 752 TOTAL CURRENT ASSETS 1,322,879 1.365, 730 Noncurrent Assets Capital assets Capital assets not being depreciated 1,114,439 8,303,376 9,417,815 Capital assets being depreciated 17,888,533 1,765,298 19,653,831 Less: accumulated depreciation (8,716,745) 138,660) (9,855,405) TOTAL CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION) 10,286,227 8,930,014 19,216,241 TOTAL NONCURRENT ASSETS 10,286,227 8,930,014 19,216,241 TOT AL ASSETS 11,609,106 8,972,865 20,581,971 LIABILITIES Current Liabilities Accounts payable 125,799 130,597 256,396 Other accrued items 16,302 2,551 18,853 Interfund payables 2,342,149 833,516 3,175,665 Unearned revenue 56,690 7,888 64,578 Compensated absences payable 5,610 5,610 Capital lease payable 7,632 7,632 Revenue bonds payable 505,000 42,942 547,942 Accrued interest payable 12 279 12,279 TOTAL CURRENT LIABILITIES 3,071,461 1,017,494 4,088,955 Noncurrent Liabilities Compensated absences payable 2,404 2,404 Notes payable 1,568,477 1,568,477 Revenue bonds payable 5,765,000 4,309,188 10,074,188 TOTAL NONCURRENT LIABILITIES 7,335,881 4,309,188 11,645,069 TOTAL LIABILITIES 10.407,342 5,326,682 15,734,024 NET POSITION Net investment in capital assets 2,440,l 18 4,558,284 6,998,402 Restricted for capital outlay projects 837,722 837,722 Unrestricted (2,076,076) (912,101) (2,988,177) TOT AL NET POSITION $ 1,201,764 $ 3,646,183 $ 4,847,947 The accompanying notes are an integral part of this statement. 7 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA ST A TEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2018 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER FUND AIRPORT FUND TOTAL OPERATING REVENUES Charges for sales and services: Pledged as security for revenue bonds: Water sales Water connection fees Other Charges for services-other Total Operating Revenues $ 2,346,207 141,425 2,487,632 $ 286 383,257 383,543 $ 2,346,207 141,425 286 383,257 2,871,175 OPERATING EXPENSES Salaries and benefits Other services and charges Depreciation Professional fees Repairs and maintenance Total Operating Expenses 578,431 992,750 661,134 2,232,315 85,366 264,071 100,993 1,270 15 882 467,582 663,797 1,256,821 762,127 1,270 15 882 2,699,897 OPERA TING INCOME (LOSS) NONOPERA TING REVENUES (EXPENSES) Interest expense Gain (loss) on sale of capital assets Total Nonoperating Revenues (Expenses) 255 317 (171,955) 19 000 (152,955) (84,039) (182,150) (182,150) 171 278 (354,105) 19,000 (335,105) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS Pledged as security for revenue bonds: Developers - Cash CHANGE IN NET POSITION 102,362 16 006 118,368 (266,189) (266,189) (163,827) 16006 (147,821) TOTAL NET POSITION, Beginning of year 1,083,396 3,912,372 4,995,768 TOTAL NET POSITION, End of year $ 1,201,764 $ 3,646,183 $ 4,847,947 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, 2018 CASH FLOWS FROM OPERA TING ACTIVITIES Receipts from customer Payments to suppliers Payments to employees Net cash provided by (used in) operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Proceeds from sale of capital assets Proceeds from new debt Principal payments on debt Interest paid Net cash provided (used) by capital and related financing activities Net increase (decrease) in cash and cash equivalents CASH, Beginning of year CASH, End of year Reconciliation to CASH, End ofyear(page 7) Cash Restricted assets: Cash CASH, End of year RECONCILIATION OF OPERA TING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjusnnents to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation (Increase) decrease in: Accounts receivable Inventory Increase ( decrease) in: Accounts payable Compensated absences Other accrued items Deferred revenue lnterfund payables Net cash provided by (used in) operating activities BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRPORT FUND FUND TOTAL $ 2,525,638 $ 391,619 $2,917,257 (1,204,621) (128,293) 1,332,914) {577, 1752 {86, I 062 {663,2812 743,842 177,220 921,062 (794,247) 19,000 1,568,477 (526,226) {172,9242 (924,563) 929,493 {I 82, l 502 1,718,810) 19,000 2,497,970 (526,226) p5s,0742 94 080 {177,2202 {83, I 402 837,922 600 837,922 600 $ 838,522 $ $ 838.522 $ $ 800 837,722 838,522 $ $ $ $ 800 837,722 838,522 $ 255,317 $ (84,039) $ 171,278 661,134 100,993 762,127 (18,684) 4,438 (1,023) (14,246) (1,023) (3,017) 1,338 (82) 56,690 (208,854) 116,41 I (740) 3,638 37 542 I 13,394 1,338 (822) 60,328 (171,312) 7431842 $ 177 220 $ 921.062 $ The accompanying notes are an integral part of this statement. 9 ---PAGE BREAK--- PJCKENS COUNTY, GEORGIA STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS December 31, 2018 ASSETS Cash $ AGENCY FUNDS 1,918 784 TOT AL ASSETS $ I 918 784 LIABILITIES Amount held in trust $ 1 918,784 TOT AL LIABILITIES $ 1,918,784 The accompanying notes are an integral part of this statement. 10 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION December 31, 2018 INDUSTRIAL HEALTH DEVELOPMENT DEPARTMENT AUTHORITY TOTAL ASSETS Cash $ 304,851 $ 161,408 $ 466,259 Capital lease receivable 168,000 168,000 Receivables (net of allowance for uncollectibles) 75,552 75,552 Inventories 4,560 4,560 Non-current assets: Capital lease receivable 2,520,000 2,520,000 Capital assets: Capital assets being depreciated 157,737 157,737 Less: accumulated depreciation (76,478) (76,478) Capital assets, net of depreciation 81 259 81 259 TOTAL ASSETS 466 222 2 849 408 3,315,630 DEFERRED OUTFLOWS OF RESOURCES Pension expense 66,237 66,237 OPEB expense 57,963 57 963 TOTAL DEFERRED OUTFLOWS OF RESOURCES 124 [PHONE REDACTED] TOT AL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 590422 2,849,408 3.439.830 LIABILITIES Accounts payable 17,122 17,122 Unearned revenue 960,958 960,958 Noncurrent liabilities: Due within one year Compensated absences payable 8,265 8,265 Revenue bonds payable 72, I 16 72,116 Due in more than one year Compensated absences payable 8,265 8,265 Net OPEB liability 297,949 297,949 Net pension liability 328,196 328,196 Revenue bonds payable I 654 139 116541139 TOT AL LIABIUTLES 659 797 2,687,213 3,347,010 DEFERRED INFLOWS OF RESOURCES Pension expense 29,386 29,386 OPEB expense 58 239 58 239 TOT AL DEFERRED INFLOWS OF RESOURCES 87 625 87,625 TOTAL LIABILIT[ES AND DEFERRED INFLOWS OF RESOURCES 747 [PHONE REDACTED] 3,434.635 NET POSfTION Net investment in capital assets 81,259 81,259 Restricted for: Unrestricted (238,259) 162.195 (76,064) TOTAL NET POSITION $ {15710002 $ 1621195 $ 5!195 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, 2018 PROGRAM REVENUES . CHARGES OPERATING CAPITAL FOR GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS COMPONENT UNfTS GOVERNMENTAL ACTIVITIES Health Department $ 572,206 $ 367,054 $ 367,314 $ Industrial Development Authority 307,068 l 11 717 TOTAL COMPONENT UNITS $ 879:274 $ 478.771 $ 367,314 GENERAL REVENUES Unrestricted investment earnings TOT AL GENERAL REVENUES AND TRANSFERS CHANGES rN NET POSITION NET POSITION, Beginning CHANGE IN ACCOUNTING PRINCIPLE PRIOR PERIOD ADJUSTMENT NET POSITION, Beginning as restated NET POSrTlON, Ending NET (EXPENSE) AND CHANGES IN NET POSITION HEALTH DEVELOPMENT DEPARTMENT AUTHORITY TOTAL $ 162,162 $ $ 162,162 (195,351) (195,351) (195.351) (33,189) 469 469 469 469 162,162 (194,882) (32,720) 19,791 465,185 484,976 (338,953) (338,953) (108, I 08) (108, I 08) (319lJ62} 357077 37915 $ (157,000) $ 162.195 1 5 195 1 The accompanying notes are an integral part of this statement. 12 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of PICKENS COUNTY, GEORGIA have been prepared in conformity 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 fund 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, 2018 GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements the statement of net position and the statement of activities) report infonnation on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, 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. Pro!:,rram revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. 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, 2018 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. Cumulative effect of a change in accounting principle: The County has recorded OPEB liability according to GASB Statement 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions." As a result of the implementation, governmental activities net position was increased by $815,047 due to a change in accounting principle. The County reports the following major governmental funds: The General Fund is the County's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The SP LOST 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 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. 15 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 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 funds 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 fund 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. 16 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 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 "interfund receivables/payables" the current portion of interfund loans) or "advances to/from other funds" the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund 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 2018 taxes were levied October 4, 2018, and were due December 4, 2018. 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 2018 are to fund operations for the County's fiscal year beginning January 1, 2018. 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. 17 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 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. 18 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Buildings Building Improvements Machinery and Equipment Furniture and Fixtures Years 25-50 10-25 3-15 5-20 Assets Vehicles Infrastructure Land Land improvements Years 2-15 10-30 NIA 12-15 Deferred Out.flows/Inflows of Resources 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. 19 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 differenc.es 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. 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 funds 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 government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary fund type statement of net position. 20 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary 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 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. Fund Equity/Net Position Fund equity at the governmental fund financial reporting level is classified as "fund balance." Fund equity for all other reporting is classified as "net position." Fund Balance - Generally, fund balance represents the difference between the 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 cannot 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. 21 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. When both restricted and unrestricted 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. 22 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Net Investment in Capital Assets The "Net investment in capital assets" reported on the government-wide statement of net position as of December 31, 2018 are as follows: Governmental Business-type Net investment in capital assets Activities Activities Cost of capital assets $ 69,902,325 $ 29,071,646 Less accumulated depreciation {26,656,206) _ Book value 43,246,119 19,216,241 Less capital related debt (751,161) (12,198,239) Less capital related accounts payable {1,091,195) {19,600) Net investment in capital assets $ 41,403,763 Management Estimates The preparation of financial statements in conformity with generally accepted accounting piinciples 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 $3,806,983 of restricted net position, of which none is restricted by enabling legislation. Additional details related to fund balances at the governmental fund 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. $ 137,692 Capital outlay projects - For unspent funds from LMIG grant, capital leases and other debt 572,203 SPLOSTFund Capital outlay projects - For funds received from the imposition of the Special Purpose Local Option Sales Tax (SPLOST) restricted by the voter approved referendum. 2,454,006 23 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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. 41,429 Restricted 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. 314,848 Subtotal - Restricted for Judicial Programs 356,277 Public Safety Programs ­ Emergency E911 Telephone Services Fund - For fund to operate the E91 l center as restricted by the OCGA-46-5. 78,393 Drug Task Force - To account for funds received to operate multi­ jurisdictional drug enforcement agency that actively pursues all levels of illegal drug activity. 76,590 Sheriffs Special Revenue - to account for funds from seizures to be used for law enforcement activities. 108.116 Subtotal - Restricted for Public Safety Programs 263,099 Housing and Development Programs ­ Hotel/Motel Tax Fund - To account for funds received to promote tourism, conventions, and trade shows. 23,706 Total Restricted Fund Balance $ 3.806.983 NOTE 3 - STEWARDSHIP, COMPLIANCE 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. 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. 24 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 funds are otherwise adequately secured. As of December 31, 2018, all deposits of the County were insured or collateralized. Depositories 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. 25 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 funds. 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 FD IC; 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 further 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. 26 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 As of December 31, 2018, 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, 2018, the only assets measured at fair value on recurring basis in periods subsequent to ini~ial recognition are investments. Such investments are classified within Level 1 or Level 2 of the valuation hierarchy. As of December 31, 2018, 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 $ 22,731 NIA Total $ 22,731 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. 27 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 Governmental Fund SPLOST Funds Receivables: Property Taxes $ 1,766,372 $ $ Accounts 1,163,171 410,744 Intergovernmental 291,896 475 597 97 957 Total Gross Receivables 3,221,439 475,597 508,701 Less: Allowance for Uncollectibles (364,850) Total Net Receivables $ 2,856,589 475.597 $ $ 5081701 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Total Delinquent property taxes receivable (General Fund) $ 1,428,539 $ $ 1,428,539 Hotel/Motel tax promissory note for payment in arears (Nonrnajor Funds) 40 933 40 933 Total unearned revenue for governmental funds $ 1,469;472 1 $ la4691472 28 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Property taxes receivable at December 31, 2018, consist of the following: Digest General Year Fund 2018 $ 998,296 2017 284,759 2016 94,698 2015 56,153 2014 65,014 2013 59,394 2012 83,318 2011 117,516 2010 7 224 Total $ 1,766,372 BUSINESS TYPE ACTMTIES Receivables as of year-end for the County's enterprise funds, including the applicable allowances for uncollectible accounts are as follows: Water Fund Receivables: Accounts $ 287 631 Total Gross Receivables 287,631 Less: Allowance for Uncollectibles (6,344) Total Net Receivables 281,287 $ 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 Department Receivables: Accounts $ 62,800 Intergovernmental 12,752 Total Gross Receivables 75,552 Less: Allowance for Uncollectibles Total Net Receivables $ 75,552 29 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The lease receivable in the County's component units consisted of the following at December 31, 2018: 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. $ 2,688,000 Less: Current portion (168,000) Long-tenn portion $ 2.520,000 At December 31, 2018, scheduled maturities of the lease receivable were the following: 2019 $ 168,000 2020 168,000 2021 168,000 2022 168,000 2023 168,000 2024 - 2028 840,000 2029 - 2033 840,000 2034 168,000 Total maturities oflease receivable 2,688,000 Less unearned interest income (960,958} Total net book value oflease receivable $ 1,727,042 30 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 6 - CAP IT AL ASSETS PRIMARY GOVERNMENT Capital asset activity for the year ended December 31, 2018, was as follows: Governmental Activities: Beginning Balance Additions Retirements Transfers Ending Balance Non-Depreciable Assets: Land and improvements in progress $ 4,271,996 $ I00,000 387 942 $ $ $ 4,371,996 387 942 Total non-depreciable capital assets 4 271 996 487 942 4 759 938 Depreciable Assets: Land improvements Buildings and improvements Machine1y and equipment Vehicles 1,013,402 37,429,670 7,662,857 8,548,172 64,290 540,557 1,358,578 (31,000) 1,013,402 37,493,960 8,203,414 9,875,750 Infrastructure 8,555,861 8 555 861 Total depreciable capital assets 63,209,962 I 963 425 p 1,oooi 65,142,387 Less Accumulated Depreciation for. Land improvements Buildings and improvements Machinery and equipment 571,448 7,503,685 5,348,007 31,467 803,748 517,427 602,915 8,307,433 5,865,434 Vehicles 7,084,768 485,062 (31,000) 7,538,830 Infrastructure 3 913 040 428 554 4 341 594 Total accumulated depreciation 24 420 948 2,266,258 (3 I ,000J 26,656,206 Total depreciable capital assets. net 38 789 014 (302,833) 38 486 181 Governmental activities capital assets, net $ 43 061 010 $ 185 109 $ $ $ 43.246,119 Additions to governmental activities capital assets for the fiscal year ending December 31, 2018, consist of the following: Capital Outlay ~ 2,451,366 Total $ 2.451.366 Non-depreciable capital assets additions $ 487,942 Depreciable capital assets additions 1,963,425 Rounding {12 Total i 214512366 31 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 547,014 Judicial 780,031 Public Safety 1,538 Public Works 713,517 Public Health and Welfare 38,447 Recreation and Culture 105,155 Housing and Development 80 556 Total depreciation expense-governmental activities $ 2,266,258 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, 2018, 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 1TI Not Authorization Date ProfileSS Obligated Sources Governmental Activities: Fire Station #12 - Moss Road $ 405,000 $387,942 $ 17,058 $ SPLOST Total Governmental Activities i 405a000 13871942 1171058 i 32 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 BUSINESS TYPE ACTIVITIES Capital asset activity for the year ended December 31, 2018, 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 6,091,502 1,635,719 7,727,221 Total non-depreciable capital assets 7,782,096 1,635,719 9,417,815 Depreciable Assets: Land improvements 865,080 865,080 Infrastructure 16,435,832 16,435,832 Buildings and improvements 641,509 641,509 Machinery and Furniture 1,275,380 47,259 1,322,639 Vehicles 381,357 51 841 (44,426) 388 771 Total depreciable capital assets 19,599,158 99 100 (44.426) 19.653.831 Less Accumulated Depreciation for: Land improvements 434,155 59,981 494,136 Infrastructure 7,341,973 547,148 7,889,121 Buildings & Improvements 394,796 26,241 421,037 Machinery & Furniture 699,681 87,105 786,786 Vehicles 267,099 41 652 (44,426) 264,325 Total accumulated depreciation 9,137.704 762,127 {44.426) 9,855.405 Total depreciable capital assets, net 10,461.454 (663,027) 9,798.426 Business-type activities capital assets, net $18,243,550 $ 972,692 $ $ $19,216.241 Depreciation expense was charged to functions/programs of the business-type follows: Business-type Activities: Water $ 661,134 Airport 100 993 Total depreciation expense-business type activities $ 762,127 activities as 33 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The business-type activity funds 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, 2018, 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 m Not Authorization To Date Progress Obligated Sources Business Type Activities: Grandview Lake Water Rights $ 1,500,000 $ 662,278 $ 837,722 $ GEFA Loan Grandview Water Treatment Plant 1,100,000 22,929 1,077,071 GEFALoan Grandview Water Lines 1,413,000 45,547 1,367,453 GEFALoan North T-Hanger 1,378,436 997,665 380,771 Revenue Bonds Airport Improvements 5,923,726 5,923,727 FAA Grant/ DA Bonds Airport Layout Plans 78,594 752075 3 519 FAA Grant/State Grant Total Business Type Activities i 11a3931756 ~ 7,7271221 i 837,722 i 2,828,814 DISCRETELY PRESENTED COMPONENT UNITS Activity for the Health Department for the year ended December 31, 2018, was as follows: Beginning Ending Balance Additions Retirements Balance Governmental Activities: Depreciable Assets: Site Improvements $ 61,695 $ 12,999 $ $ 74,694 Machinery and Equipment 26,128 25,874 52,002 Furniture & Fixtures 11,030 11,030 Vehicles 20,011 20 011 Total depreciable capital assets 118 864 38 873 157 737 Less Accumulated Depreciation for: Site Improvements 11,725 4,997 16,722 Machinery and Equipment 26,128 2,587 28,715 Furniture and Fixtures 11,030 11,030 Vehicles 20 011 20 011 Total accumulated depreciation 68 894 7 584 76 478 Capital Assets, net $ 491970 311289 81 !252 ~ 1 ~ 34 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 7 - SHORT TERM DEBT The County paid off a tax anticipitation note for operating purposes of $5,600,000 at a financial institution. The note carried an interest rate of2.15% and matured on December 31, 2018. As of December 31, 2018, the principal was paid in full. The short term borrowings interest incurred and expensed for the period ended December 31, 2018 was $41,062. Short-term liability activity for the year ended December 31, 2018, was as follows: Governmental Activities Beginning Additions Reductions Ending Balance Balance Tax anticipation note $ $ 526002000 $ {52600,0002 $ Total short-term Liabilities ~ 1 5,600,000 i (5,600,000) 1 NOTE 8 - LONG TERM DEBT Long-term liability activity for the year ended December 31, 2018, was as follows: Beginning Ending Due Within Due After Balance Additions Reductions Balance One Year One Year Governmental Activities: Notes Payable $ 454,600 S $ (419,151) $ 35,449 $ 35,449 $ Capital leases 1,024,185 218,490 (526,963) 715,712 396,569 319,143 Net OPEB liability 943,550 91,891 (70,902) 964,539 964,539 Net pension liability 7,113,681 967,627 (990,265) 7,091,043 7,o91,043 Landfill postclosure 365,500 12,100 377,600 20,000 357,600 Compensated absences 245,727 232 984 (172,008) 306 703 214.692 92011 Governmental activities long-term liabilities $ 10J47,243 $ 1.523,092 $ 179,289) $ 9,491,046 $ 666.710 $ 8,824,336 Business-type Activities: Bonds payable s 10,187,637 $ 929,493 $ (495,000) $ 10,622,130 $ 547,942 $ 10,074,188 Notes payable 1,568,477 1,568,477 1,568,477 Capital Leases 38,858 (31,226) 7,632 7,632 Compensated absenceS 6 676 6012 (4,674) 8 014 5 610 2404 Business-type activities long-term liabilities s 101233,171 $ 2,503,982 $ (530,900) $ 121206,253 $ 561.184 $ 111645,069 The County implemented GASB 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions" in fiscal year 2018 and as a result had a change in accounting principle in the net OPEB liability of ($815,047) for governmental activities that is included in the beginning balances. GOVERNMENT AL ACTIVITIES Notes Payable The County has entered into an agreement with a financial institution to finance the purchase of buildings and equipment in regards to the Community Center in the original amount of 35 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 $3,000,000 with an outstanding balance of $35,449. This note has annual payments ranging from $392,093 to $427,738, with an interest rate of3.25% and matures in 2019. The annual requirements to amortize notes payable outstanding as of December 31, 2018, are as follows: December 31, 2019 Total Principal $ 35,449 $ 35,449 Interest $ 99 $ 99 Total $ 35,548 $ 35,548 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, $429,817 was included in depreciation expense. The balance of these leases at December 31, 2018 is $715,712 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 $ 537,251 Vehicles 1,852,920 Less: Accumulated Depreciation 0,289,487) Total $ 1,100,684 36 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2018, were as follows: Governmental Year Ending December 31, Activities 2019 $ 409,327 2020 304,612 2021 19 089 Total minimum lease payments 733,028 Less: amount representing interest (1.93% - 4.84%) (17,316) Present value of minimum lease payments $ 715,712 BUSINESS-TYPE ACTMTIES 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. The refunding was undertaken to reduce total future debt service payments. The refunding resulted in an economic gain of $3,599,055. Bond payments are due in semi-annual installments ranging from $184,944 to $324,772, with interest at 2.35%. As of December 31, 2018, the outstanding balance is $6,270,000. 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, 2018, 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 Pickens County Airport. As of December 31, 2018, the bonds have an outstanding balance of $929,493, 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. 37 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The annual requirements to amortize bonds payable outstanding as of December 31, 2018, are as follows: December 31, 2019 2020 2021 2022 2023 2024-2028 2028-2029 Total Series 2018 Bond Total s PrinciEal $ 547,942 783,100 811,634 840,520 869,303 4,838,786 120012352 $ 91692a637 128972733 $ 11,590,370 Interest $ 175,760 312,196 284,442 256,019 226,404 642,493 202461 i 11917.775 $ l Total 723,702 1,095,296 1,096,076 1,096,539 1,095,707 5,481,279 1,021,813 11!610i412 Notes Payable 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 from the Grandview Lake Company. As of December 31, 2018, 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 Peiiod begins. At the completion of draws, the note payments will be due in installments. The notes will mature 20 years from the commencement date. 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, $24,845 was included in depreciation expense. The balance of these leases at December 31, 2018 is $7,632 for business-type activities. 38 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The County leases certain equipment under non-cancelable capital leases. The leases relate to equipment for water operations. 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: Business-type Activities Machinery and equipment $ 211,948 Less: Accumulated Depreciation (104,185) Total $ 107,763 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2018, were as follows: Governmental Year Ending December 31, Activities 2019 $ 7 677 Total minimum lease payments 7,677 Less: amount representing interest (45) Present value of minimum lease payments $ 7,632 DISCRETELY PRESENTED COMPONENT UNITS Long-term debt activity for the Health Department for the year ended December 31, 2018, was as follows: Beginning Ending Due Within Due After Governmental Activities Balance Additions Reductions Balance One Year One Year Compensated absences $ 12,533 $ 10,264 $ (6,267) $ 16,530 $ 8,265 $ 8,265 Net OPEB Liability 376,191 (78,242) 297,949 297,949 Net Pension Liability Total long-term Liabilities 412 161 800,885 $ 1 10i264 $ (83,965} ,1741197) 328,196 i 6421675 81265 $ ~ 328,196 634,410 The Health Department implemented GASB 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions" in fiscal year 2018 and as a result had a change in accounting principle in the net OPEB liability of ($376,191) and deferred outflows related to OPEB of $37,238 for governmental activities that is included in the beginning balances. 39 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Long-term debt activity for the Industrial Development Authority for the year ended December 31, 2018, was as follows: Beginning Ending Due Within Due After Business-type Activities Balance Additions Reductions Balance One Year One Year Bonds payable $1 17951125 $ $ !68,8702 $ 1?26 1255 $ 721116 $ 11654,139 Total long-term liabilities $ \7951125 $ 1 (68,870l $ 11726,255 i 72,116 $ 11654,139 During 2015, the Industrial Development Authority issued $1,960,000 of revenue bonds (2015 Series) for a full 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 future debt service payments. Bond payments are due in installments with annual principal amounts ranging from $60,447 to $143,831 with a variable interest rate. The interest rate at December 31, 2018 is 3.20%. As of December 31, 2018, the outstanding balance is $1,726,255. This bond will mature in May 2035. The annual requirements to amortize long-term debt as of December 31, 2018, are as follows: Year Ending December 31, PrinciEal Interest Total 2019 $ 72,116 $ 72,503 $ 144,619 2020 75,299 69,474 144,773 2021 79,062 66,311 145,373 2022 82,787 62,991 145,778 2023 86,688 59,514 146,202 2024-2028 498,372 239,431 737,803 2029-2033 627,653 130,731 758,384 2034-2035 204,278 11118 215,396 Total i 11726,255 i 7121073 ~ 2A38,328 40 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 9 - INTERFUND BALANCES AND ACTIVITY The composition ofinterfund balances as of December 31, 2018, is as follows: Due To Due From Other Nonmajor Total Due General Governmental Airport fl-om Other Fund Funds Water Fund Fund Funds $ $2,342,149 $833,516 $3,242,287 Nonmajor Governmental Funds 24,275 253,355 277,630 Water Fund 167 917 167 917 Total Due to Other Funds 1 1921192 $ 319 977 i 21342.149 $833,516 $ 316871834 General Fund $ 66,622 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, 2018, are as follows: Transfers Out Transfers in Other Nonmajor Governmental Total Funds Transfers Out General Fund $ 723,358 Total - Transfers in $ 723,358 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. 41 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 after 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 annuity. 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, 2017, (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 65 Terminated plan participants entitled to but not yet receiving benefits 109 Active employees participating in the Plan 162 Total number of Plan participants 336 Covered compensation for active participants $ 6,761,050 Contributions as a percentage of covered payroll 14.60% Contributions The County is required to contribute at an actuarially detennined 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. 42 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Net Pension Liability The County's net pension liability was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability was detennined by an actuarial valuation as of that date. The total pension liability as of the January 1, 2017 valuation was determined by an actuarial valuation using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.50% Salary Increases 4.00% - 6.50%, average, including inflation Investment rate of return 7.25%, net of pension plan investment expense, including inflation 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, 2017 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 determined 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 long-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: 43 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Long-term Target expected real Asset Class Allocation rate of return* Fixed income 30.00% 3.07% Domestic large equities 30.00 1.97 Domestic mid equities 5.00 0.86 Domestic small equities 5.00 0.30 REIT 5.00 0.52 International 15.00 0.47 Multi cap 5.00 0.51 Global allocation 5.00 0.58 TOTAL 100.00% * Rates shown are net of the 3 .50% assumed rate of inflation The discount rate used to measure the total pension liability was 7.25%. 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 long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to detennine the total pension liability. 44 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Change in the Net Pension Liability Pension Fiduciary Net Net Pension Liabilit:z: Position Liabilit:z: 6,613,506 $ 7,113,681 Balances at December 31, 2017 $ 13,727,187 $ Changes for the year: Plan Change 516,229 Service cost 516,229 976,033 Interest 976,033 Difference between expected and actual experience 742,096 742,096 Assumption Change 36,1J6 36,116 990,265 (990,265) Contribution-employer 349,920 (349,920) Contribution-employee Net investment income 1,046,254 (1,046,254) Benefit payments (529,326) (529,326) Administrative expense (34,798) 34,798 Other charges (58,529) 58 529 Net changes lz741 ,148 lz763z786 (22,638) Balances at December 31, 2018* $ 15,468,335 $ 8,377,292 $ 720911043 * Measurement date of Dec.ember 31, 201 7 The following presents the County's net pension liability calculated using the discount rate of 7.25%, 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 I-percentage-point lower ( 6.25%) or 1-percentage­ point higher (8.25%) than the current rate: 1 % Decrease Current Discount 1 % Increase (6.25%) Rate (7.25%) (8.25%) County's net pension liability $ 9,4361847 $ 7,091,043 45 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2018, the County recognized pension expense of $996,107. The required contribution for the year ended December 31, 2018 was $990,265. At December 31, 2018, 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 $ 889,334 $ (475,078) Changes of assumptions 514,889 Net difference between projected and actual earnings on pension plan investments TOTAL $ 1,404,223 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, 2019 $ 253,022 2020 241,411 2021 162,727 2022 135,159 2023 136,826 Thereafter 46 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 DEFINED CONTRIBUTION PLAN Plan Description The County contributes to the Association of County Commissioners of Georgia (ACCO) 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 after 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 contribution to Plan A. Funding Policy Contributions totaling $124,949 ($32,208 employer and $92,741 employee) were made m accordance with the Plan A guidelines and the designations 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. 47 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2018, 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, 2018, (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 5 benefits Inactive employees entitled to but not yet receiving benefits Active employees 25 30 Total Covered-employee payroll for active participants $ 1,239,011 Contributions as a percentage of its covered-employee payroll 3.62 % 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 rate~. The County contributes the remainder of the rates. The OPEB Plan is funded on a pay-as­ you-go basis. For fiscal year 2018, the County contributed $44,902 to the plan. Net OPEB Liability The County's net OPEB liability is reported herein as of January 1, 2018 for the employer fiscal year and reporting period ending December 31, 2018. The values shown for this fiscal year and reporting period are based on a measurement date of January 1, 2018. The measurement of the total OPEB liability is based on a valuation date of January 1, 2018. 48 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The total OPEB liability in the January 1, 2018 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 3.76% Measurement date 3.44% 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, 2018. The actuarial assumptions used were based on the pension valuation prepared by GEBCorp as of December 31, 2017. The employer contributions required to support the benefits of the OPEB Plan are determined following a level funding approach, and consist of a normal contribution and an actuarial accrued liability contribution. 49 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Change in the Net OPEB Liability Balances at December 31, 2017 Changes for the year: Service cost Interest Difference between expected and actual experience Contribution-employer Assumption Change Benefit payments Implicit subsidy credit Other charges Net changes Balances at December 31, 2018* OPEB Liability $ 943,550 22,750 34,339 7,844 26,958 (44,902) (26,000) 20989 $ 964,539 Fiduciary Net Position $ 44,902 (44,902) $ NetOPEB Liability $ 943,550 22,750 34,339 7,844 (44,902) 26,958 (26,000) 20 989 $ 964,539 *Measurement date is as of Janua1y I, 2018 The following presents the County's net OPEB liability of the employer as of the measurement date calculated using the discount rate of 3.44%, as well as what the County's net OPEB liability would be if it were calculated using a discount rate that is I-percentage-point lower (2.44%) or 1­ percentage-point higher (4.44%) than the current rate: 1 % Decrease Current Discount 1 % Increase (2.44%) Rate (3.44%) (4.44%) County's net OPEB liability $ 1,047,714 $ 964,539 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 I-percentage-point lower (6.25%) or I-percentage-point higher (8.25%) than the current rate: 1 % Decrease Current Trend 1 % Increase (6.25%) Rate (7.25%) (8.25%) County's net OPEB liability $ 866,177 $ 964,539 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2018, under GASB 75 the County's OPEB expense is $63,141. 50 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 At December 31, 2018, 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 $ 6,480 $ Changes of assumptions 222270 TOTAL $ 282750 $ Deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31, 2019 $ 6,052 2020 6,052 2021 6,052 2022 6,052 2023 4,542 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 detenninable. NOTE 12 - RISK MANAGEMENT The County is exposed to various risks of losses related to torts, tl1efts 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: 51 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 WORKERS' COMPENSATION The County participates in the Association County Co1mnissioners 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 from 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 ACCO-Group Self Insurance Workers' Compensation Fund are assessable if the losses that ACCG must pay exceed the assets of the pool. At December 31, 2018, 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, 2018: 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 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 52 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The County has no outstanding claims in excess of coverage for which a liability should be recorded as of December 31, 2018. 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 th.e 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 industry, 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, 2018, 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 2018. As a result, no balance sheet or income statement is presented in the audited financial statements of Pickens County at December 31, 2018. 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 annual dues thereto. During the year ended December 31, 2018, the County paid $26,877 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 Planning 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. 53 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 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, 2018. Separate financial statements can be obtained from Northwest Georgia Regional Water Resources Partnership, P.O. 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, 20 I 8, the County has recorded a liability for its solid waste landfill of $377,600, which represents the estimated closure and postclosure costs based on 100% oflandfill 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 2018. 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, 2018, based on requirements issued by the EPA. 54 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 17 - SIGNIFICANT ESTIMATES As discussed in Note 1, estimates are used in the preparation of these financial statements. Three 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 future confirming events and this change will have a material effect on tl1e 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. NOTE 18-HOTEL/MOTELTAX During the year ended December 31, 2018, the County had receipts of $99,523 and spent $75,594 to promote tourism, conventions, and trade shows. The total expenditures represent 76% 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. 55 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS December 31, 2018 NOTE 19 - PRIOR PERIOD ADJUSTMENTS As of January 1, 2018, the County restated its financial statements for the year ended December 31, 2017. The restatement was a result of the following: Development Authority (Component Unit) To restate the 2017 ending balance of unearned interest income to agree to the related lease receivable amortization schedule. Net decrease in component unit net position NOTE 20 - CHANGE IN ACCOUNTING PRINCIPLE As of January 1, 2018, the County restated its financial statements for the fiscal year ended December 31, 2017 due to the implementation of GASB Statement 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions." The restatement resulted in a net increase to the entity-wide net position in Governmental Activities of $815,047. Component unit net position was restated by a net decrease of ($338,953). The restatement was a result of the following: Governmental Funds General Fund Governmental Activities To restate the 2017 ending balance of the net OPEB liability to implement GASB 75. $ 815,047 Net increase in Governmental Activities net pos.ition 815 047 Net increase in entity wide net position $ 815,047 Health Department (Component Unit) To restate the 2017 ending balance of the net OPEB liability to implement GASB 75. $ (338,953) Net decrease in component unit net position $ (338,953) 56 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY ­ ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2018 ''Unaudited" For the Year Ended December 31, 2018 2017 2016 2015 Net pension liability $ 7,091,043 $ 7,113,681 $ 3,218,002 $ 2,670,675 Covered payroll $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 Net pension liability as a percentage of its covered payroll 104.88% 105.66% 51.39% 41.37% Plan fiduciary net position as a percentage of the total pension liability 54.20% 48.20% 62.70% 66.00% NOTE: Schedule is intended to show information for the last IOfiscal years. Additional years will be displayed as they become available. 57 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS ­ ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2018 "Unaudited" For the Year Ended December 3 I , 2018 2017 2016 2015 2014 2013 2012 2011 20!0 Contractually required contribution $ 865,930 $ 726,960 $ 556,622 $ 565,792 $ 547,417 $ 5 I 9,277 $ 481,354 $ 479,261 $ 396,496 Contributions in relation to the contractually required contribution 990,265 866,021 576,852 604,422 551,249 519,277 481,354 447,823 164,546 Contribution deficiency (excess) $ (124,335) $ (139,061) $ (20,230) $ (38,630) $ (3,832) $ $ $ 31,438 $ 231,950 County's covered payroll $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 14.65% 12.86% 9.21% 9.36% 7.62% 7.29% 7.17% 6.54% 2.98% NOTE: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available, data from 8 previous years presented. 58 ---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, 2018 "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 detennine the contractually required contributions for the year ended December 31, 2018 reported in that schedule: Valuation Date January 1, 2017 Actuarial Cost Method Entry Age Amortization Method Level percentage of payroll, open Remaining Amortization period 30 years Asset Valuation method Five-year smoothed market Inflation Rate 3.50% Salary Increases 4.00% - 6.50%, including inflation Investment rate of return 7.25%, net of pension plan investment expense, including inflation 59 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA REQUIRED SUPPLEMENT ARY 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, 2018 "Unaudited" Fiscal Year Ending December 3 1, 2018 Total OPEB liability Service cost $ 22,750 Interest 34,339 Differences between expected and actual experience 7,844 Changes in assumptions 26,958 Benefit payments (44,902) Implicit subsidy credit (26,000) Net changes in total OPEB liability 20,989 Total OPEB liability - beginning 943 550 Total OPEB liability - ending Plan fiduciary net position Contributions - employer $ 44,902 Benefit payments, including refunding of employee contributions (44,902) Net change is plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending $ Net OPEB liability - ending $ 964 539 Plan fiduciary net position as a percentage of the total OPEB liability 0.00 % Covered-employee payroll $ 1,239,011 Net OPEB liability as a percentage of covered-employee payroll 77.85 % NOTE: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 60 ---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, 2018 "Unaudited" Fiscal Year Ending December 31, 2018 Actuarially Determined Contribution $ 44,902 Contributions in relation to the Actuarially Determined Contribution 44 902 Contribution deficiency (excess) Expected covered-employee payroll $ 1,239,011 Contributions as a percentage of covered-employee payroll 3.62 % NOTE: Schedule is intended to show information for the last JOfiscal years. Additional years will be displayed as they become available. 61 ---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, 2018 "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. 62 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended December 31, 2018 (Required Supplementary Information) BUDGET AMOUNTS ORIGINAL FINAL FUND BALANCE. Beginning of year s 8.703.790 $ 8 703.790 $ RESOURCES (TNFLOWS) Taxes Licenses and permits I ntergovemmental Fines and forfeitures Charges for services Contributions and donations lnvesbnent income Miscellaneous Sale or county property Capital lease proceeds 18.309.800 392,500 1.933.531 314.700 3.618.234 15.100 43.700 402.000 18.309.800 392,500 1.942.126 314.700 3,618.234 69.800 15.100 98.961 22,604 402.000 VARIANCE WITH ACTUAL FINAL BUDGET POSITIVE (NEGATIVE) 8,703.790 $ 18.325.735 445.799 1,749.983 289.413 3.097.855 83.902 10.917 116,906 37,382 218.490 15,935 53.299 (192,143) (25,287) (520,379) 14,102 (4,183) 17,945 14,778 (183,SIO! To1al Resources (Inflows) 25.029.565 25.185.825 24 376 382 !809.443l AMOUNTS AVAILABLE FOR APPROPRIATION 33.733 355 33.889 615 JJ,080,172 !809.443l CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures General Oovemment Board or commissioners 166,236 166.236 General administration 1.011.783 858,970 County clerk 117,708 117.708 Elections 334.408 334.408 Finance 379,597 385.597 Law 180,000 199.000 Human resources 113.470 113,470 Tax commissioner 561.046 561,046 Tax assessor 578.146 578.146 Buildings 420.728 528,728 Agencies 32,000 32.000 Total Gener.ii Government 3.895 122 3.875.309 Judicial Judicial Administration 138,364 144.364 Superior court 196.760 214.760 Clerk of Superior court 565,620 549,620 District attorney 486.160 494,160 Magistrate court 450,287 450,287 Probate coun 469.488 469.488 Juvenile court 413.465 413.465 Board of equalization 16.658 16,658 Public defender 661.657 645,657 Total Judicial 3.398 459 3J98.459 Public Safety Sheriff 3.660.685 3.838,994 Jail operation 2.550,886 2.739,181 Court services 27.500 52,500 Fire 4,447.431 4.177,046 Coroner/Medical Examiner 53,275 53,275 E-911/Communications center 696.618 696.618 School resource officers 384,740 384.740 Emergency Management Agency 167.659 182.472 Animal control 238 025 238.025 165,320 916 602,167 256,803 116,498 1.210 265,733 68,675 385,486 111 198-621 379 100,702 12,768 528.638 32,408 549,178 28,968 528,426 302 26,877 5,123 3,467 646 407.663 144,245 119 213.793 967 536.577 13.043 493.417 743 425.512 24.775 405.446 64.042 386.456 27,009 12.030 590,294 55.363 3.207.770 186061 3,838,369 625 2,737,940 1,241 51.619 881 4.145.474 31,572 47,225 6.050 599,609 97.009 347.598 37.142 165.912 16,560 211.058 26967 Total Public Safety 12 226.819 12362851 12.144,804 218,047 63 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended December 31, 2018 (Required Supplementary Information) VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) CON"rlNUl;D..... Public Works Roadways and walkways 2,319,9.85 2-347,726 2,148,702 199,024 Solid waste and recycling 524,551 Maintenance and shop l~~m Total Public Works 2 989 266 524,551 H!113ll 3.017.007 509,142 l~llll 2.799,157 15.409 rnz 217 850 Public Health and Welfare Health department 2.750 7,750 7,301 449 Public l1ealth and welfare 119.606 113,106 98,217 14,889 Senior citizens center 24.300 25,800 2S.407 393 Community Center 427,739 Transportation services 234.01 I 427,739 234.011 427,640 150,190 99 83 821 Total Public Health and Welfare 808 406 808.406 708.7S5 99.651 Recreation and Parks and recreation 651.124 663,424 657.663 5,761 Library 315.440 315,440 314.728 712 Tolal Recreation and Cul\llre 966,564 978.864 972 391 6.473 Housing and development Extention office 73,736 73.735 44,126 29.609 Building inspection 100 9 91 Planning and zoning 421,959 420.823 404,081 16,742 County marshal! 106.961 106,998 96,025 10,973 Economic development 56,273 57.273 56.768 505 Total I lousing and Development 658.929 658,929 601.009 57.920 Tr.msfers out 86.000 86.000 119.749 (33.749l TOTALCHARGES TO APPROPRIATIONS CHANGE IN FUND BALANCE 25.029.565 25.185.825 24.021.281 355.101 1,159.916 355.101 FUND BALANCE. End of year $ 8.703,790 $ 8 703 790 $ 9 058.891 $ 355,101 NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. Tbe budgetary basis of accounting used in this schedule is the same as GAAi'. 64 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENT AL FUNDS December 31, 2018 SPECIAL REVENUE FUNDS ASSETS Cash Investments Receivables (net of allowance for uncollectibles) Jnterfund receivables TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Other accrued items lnterfund payables TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Unavailable revenue - fines TOTAL DEFERRED INFLOWS OF RESOURCES LAW LIBRARY $ 18,922 22,731 $ 41,653 $ 224 224 SHERIFF'S EMERGENCY DRUG LAW TELEPHONE TASK ENFORCEMENT SYSTEM FORCE $ 108,116 $ $ 211,306 78,393 40,776 8 855 108,116 $ 78,393 $ 260,937 $ $ $ $ 8,759 175,588 184,347 HOTEL/ MOTEL TAX $ 39,373 51,041 $ 90.414 $ 25,775 25 775 40 933 40 933 RESTRICTED PROGRAMS $ 228,398 338,491 268,775 $ 835.664 $ 160,895 40,168 319753 520 816 TOTAL NONMAJOR GOVERNMENTAL FUNDS $ 606,115 22,731 508,701 277 630 $ I 415 177 $ 195,429 215,756 319 977 731 162 40 933 40 933 FUND BALANCES Restricted: Judicial programs Public safety programs Housing and development programs TOT AL FUND BALANCES 41,429 41429 108,116 108 I 16 78,393 78 393 76,590 76 590 23,706 23 706 314,848 314 848 356,277 263,099 23 706 643 082 TOTAL LIABILITIES AND FUND BALANCES $ 411653 $ 108ill6 $ 78 393 $ 260,937 $ 90414 $ 835,664 $ 1415177 65 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 SPECIAL REVENUE FUNDS TOTAL SHERIFF'S EMERGENCY DRUG HOTEL/ NONMAJOR LAW LAW TELEPHONE TASK MOTEL RESTRICTED GOVERNMENTAL LIBRARY ENFORCEMENT SYSTEM FORCE TAX PROGRAMS FUNDS REVENUES Taxes s $ $ $ $ 99,523 $ $ 99,523 Intergovernmental Fines and forfeitures 15,271 5,100 11,822 240,461 33,719 2,126,231 378,789 2,371,792 439,601 Charges for seivices Contributions and donations 109,083 15,320 600,405 300,124 13,346 1,009,612 28,666 Investment income 283 293 117 4,932 1,253 6,878 Miscellaneous 231 13 624 13 855 TOTAL REVENUES 15 554 141618 600 636 274,297 104 455 2,833,367 3 969 927 EXPENDITURES Current Expenditures Judicial 9,676 2,148,965 2,158,641 Public safety Public health and welfare 86,628 1,111,565 202,557 295,405 1,400,750 295,405 Housing and development Intergovernmental 7,874 100,123 39,649 75,594 295,958 39,649 479,549 Capital outlay Principal 17,470 74,623 17,470 74,623 l.nte(est 3,490 3,490 TOTAL EXPENDITURES 17 550 104 098 I 189 678 302,680 115 243 2,740,328 4 469 577 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES {1,996) 37 520 {589,042) (28 383) (IO 788) 93 039 (499 650) OTHER FrNANCING SOURCES (USES) Transfers in 4,000 599 609 40,703 79 046 723,358 TOTAL OTHER FINANCING SOURCES (USES) 4,000 599 609 40 703 79 046 723 358 NET CHANGE IN FUND BALANCES {11996) 41,520 10 567 12:320 (10,788} 172,085 223 708 FUND BALANCES, Begiw1ingofyear 43 425 66596 67,826 64270 34 494 142,763 419.374 FUND BALANCES, End of year $ 411429 $ 108 116 $ 78 393 $ 76,590 $ 23,706 $ 314,848 $ 643,082 66 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENT AL BUDGETARY COMPARISON SCHEDULE LAW LIBRARY SPECIAL REVENUE FUND For the Year Ended December 31, 2018 VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) 43 425 FUND BALANCE. Beb~nning of year s 43.425 s 43 425 s _ RESOURCES (INFLOWS) Fine.s and forfeitures 17.000 17.000 15.271 (1,729) lnvesunent income (l.0OOl 1.000 283 (717) Total Resources (Inflows) 16000 18.000 15.554 (2,446) AMOUNTS AVAILABLE FOR APPROPRIATION 59 425 61 425 58 979 (2,446) CHARGES TO APPROPRJATIONS (OUTFLOWS) Current Expenditures Judicial 18.000 18.000 17,550 450 TOTAL CHARGES TO APPROPRJATIONS la!ll!Q IS!l!l!:! IZ ml CHANGE IN FUND BALANCE !Z!lQQl !l 22~l £1 92~l FUND BALANCE-End of year $ 41.425 $ 43 425 $ 41.429 $ !l.996) NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. TI1e budgetary basis of accounting used in tl1is schedule is 01e same as GAAi'. 67 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENT AL BUDGETARY COMPARISON SCHEDULE SHERIFF'S LAW ENFORCEMENT SPECIAL REVENUE FUND For the Year Ended December 31, 2018 BUDGET AMOUNTS ORIGINAL FINAL ACTUAL FUND BALANCE. Beginning of year ~ 66,596 ~ 66.596 $ 66596 RESOURCES (INFLOWS) lntergovenunental Fines and forfeitures Charges for services Contributionsand donations Investment income Transfer in Total Resources (Inflows) AMOUNTS AVAIi.ABLE FOR APPROPRIATION 4.000 100.000 1.000 105 000 171.596 4.000 100.000 1.000 105.000 171 596 5.100 11.822 109.083 15.320 293 4.000 145 618 212 214 CHARGcS TO APPROPRIATIONS (OITTFLOWS) Current Expenditures Public safety TOTAL CHARGES TO APPROPRIATIONS 105.000 105.000 105,000 105.000 !04.098 104 098 CHANGE IN FUND BALANCE 41.520 FUND BALANCE. End of year s 66.596 S 66.596 $ 108J 16 NOTES TO l'ME BUDGETARY COMPARISON SCHEDULE 1.171e budgetary basis of accounting usedin this schedule is the same as GAAP. VARIAt'iCE WITH FINAL BUDGET POSITlVE (NEGATIVE) $ 5.100 7.822 9.083 14.320 293 4.000 40.618 40.618 902 902 41 520 68 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE EMERGENCY TELEPHONE SYSTEM SPECIAL REVENUE FUND For the Year Ended December 31, 2018 VARIANCE WITH BUDGET AMOUNTS ORIGINAL FINAL ACTUAL FINAL BUDGET POSITIVE (NEGATIVE) FUND BALANCE. Beginning of year RESOURCES (INFLOWS) Charges for services Miscellaneous Transfer in Total Resources (Inflows) AMOUNTS AVAILABLE FOR APPROPRIATION $ 67 826 590,000 600.000 I 190000 I 257 826 $ 67.826 590.000 600.000 I 190 000 1.257 826 s 67.826 600.405 231 599.609 1.200.245 I 268.071 $ 10,405 231 (391) 10 245 10245 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures Public safety TOTAL CHARGES TO APPROPRIATIONS 1,190.000 I 190000 1.190.000 I 190000 1.189.678 I.I 89 678 322 322 CHANG!; IN FUNDBALANCE IO 567 10567 FUND BALANCE. End of year $ 67,826 $ 67 826 $ 78.393 NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. 111e budgetary basis of accounling used in this schedule is the same as GAAi'. 69 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE DRUG TASK FORCE SPECIAL REVENUE FUND For the Year Ended December 31, 2018 VARIANCE WITfl FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) FUND BALANCE. Beginning of year $ 64.270 s 64 270 $ 64.270 $ RESOURCES (INFLOWS} Intergovernmental Fines and forfeitures 228.000 34,000 228.000 34.000 240.461 33.719 12,461 (281) Investment income 117 117 Miscellaneous 1,000 1,000 (1,000) Transfer in 40.000 40,000 40.703 703 Total Resources (Inflows) 303 000 303 000 315.000 12 000 AMOUNTS AV All.ABLE FOR APPROPRJA TION 367 270 367 270 379.270 12 000 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures Public safety TOTAL CHARGES TO APPROPRIATIONS 303,000 303.000 303,000 303 000 302,680 302 680 320 320 CHANGE IN FUND BALANCE 12\~Q J?J,!l FUND BALANCE. End of year i 64.270 64.270 $ 76 590 s 12.320 1 NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. The budgetary basis of accounting used in this schedule is the same as GAAP. 70 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE HOTEL/MOTEL TAX SPECIAL REVENUE FUND For the Year Ended December 31, 2018 VARIANCE WITH FINAL BUDGET BUDGET AMOUNTS POSITIVE ORIGINAL FINAL ACTUAL (NEGATIVE) FUND BALANCE. Beginning of year RESOURCES (INFLOWS) Taxes lnvesanent income Total Resources (Inflows} AMOUNTS AVAILABLE FOR Al'l'ROPRIATION 34 494 116,000 I 16,000 150.494 $ 34,494 116,000 116,000 150.494 99.523 4.932 104.455 138.949 (16,477) 4,932 (I 1,545) (11,545) CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures Housing and development TOTAL CHARGES TO APPROPRIATIONS CHANGE IN FUND BALANCE FUND BALANCE. End of year NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. The budgetary basis of accounting used in this schedule is the same as GAAP. 116,000 116000 34 494 S 116,000 116 000 34.494 S 115,243 115.243 (10,788) 23106 757 757 (10,788) , 71 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SUPPLEMENT AL BUDGET ARY COMPARISON SCHEDULE RESTRICTED PROGRAMS SPECIAL REVENUE FUNDS For the Year Ended December 31, 2018 BUDGET AMOUNTS ORIGINAL FINAL ACTUAL VARIANCEWITH FINAL BUDGET POSITIVE (NEGATIVE) FUNU BALANCE. Beginning of year RESOURCES(INFLOWS) lnle!'govemmental Finesand forfeitures Charges for services Contributionsand donations Investmentincome Miscellaneous Transfer in Total Res(lurces(Inflows) AMOUNTS AV Al LAB LE FOR APPROPRIATION $ 142,763 1,759,673 584.300 240.381 450 3.500 50.581 2.638.885 2.781.648 s 142.763 1,940,673 584,300 240.381 450 3.500 50.581 2.819.885 2.962.648 $ 142.763 2,126,231 378,789 300.124 13,346 1,253 13.624 79,046 2.912.413 3.055.176 _ 185,558 (205.511) 59.743 13.346 803 10.124 28.465 92.528 92,528 CHARGES TO APPROPRIATIONS (OUTFLOWS) Current Expenditures Judicial Public health and welfare lntergovemmenlal TOTAL CHARGES TO APPROPRIATIONS 2.003.649 260,236 375 000 2.638,885 2,148,649 296.236 375,000 2,819,885 2.148,96S 295.405 295.958 2,740,328 (316) 831 79.042 79,557 CHANGE IN FUND BALANCE 172.085 FUND BALANCE. End of year $ 142.763 $ 142.763 s 314.848 s 172.085 NOTES TO THE BUDGETARY COMPARISON SCHEDULE I. The budi,>etary basis of accountingusedin Uiis sc.heduleis the same as GAAP. 72 172.085 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS December 31, 2018 CLERK OF TAX SUPERIOR PROBATE MAGISTRATE COMMISSIONER COURT COURT COURT SHERIFF TOTAL ASSETS Cash $ I 291 751 $ 307 026 $ 22 551 $ 233 646 $ 63 810 s l 918.784 TOTAL ASSETS $ l 291 75[ $ 307 026 s 22 551 $ 233 646 $ 63 810 s l 918.784 LIAB ILITLES Amounts held in s I 291 751 $ 307 026 $ 22 551 $ 233 646 $ 63 810 $ l 918.784 TOTAL LIABILITLES $ I 291 751 $ 307026 $ 22 551 $ 233 646 $ 63 810 $ l 918 784 73 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS For the Year Ended December 31, 2018 CLERK OF TAX SUPERIOR PROBATE MAGISTRATE COMMISSIONER COURT COURT COURT SHERIFF TOTAL ASSETS Cash Balance. January I, 2018 Additions $ 1,021,297 41. 196,688 $ 1,063.826 1.461.625 $ 34,312 422,238 $ 249,233 303.934 s 65,720 637,489 s 2.434,388 44.021,974 Deductions Balance, December 31. 2018 TOTAL ASSETS $ {40.926,234! 1,291,751 l.291 751 s (2.218.425} 307.026 307.026 $ (433.999! 22.551 22 551 1 (319.521} 233.646 233.646 s (639.399! 63 810 63 810 $ (44,537,578} L918.784 l 918.784 LIABILITIES Due to County Balance, January I. 2018 Additions $ 13,136.902 s 828,411 $ 288.802 $ 53.184 s 306.831 $ 14.614.130 Deductions (13.136.902) (828.411) (288,802) (53.184) (306.831) (14,614,130! Balance. December 31. 2018 Amounls held in tn1Sl Balance. January I. 2018 Additions 1.021.297 28.059,786 1.063.826 633.214 34.312 133.436 249.233 250.750 65,720 330,658 2.434,388 29.407.844 Deductions (27.789.332) (1.390.014) (145,197) (266.337! (332.568) (29.923,448! Balance. December 31, 2018 1.291 751 307.026 22.551 233.646 63.810 l,218,784 Total Liabilities Balance. January I. 2018 Additions Deductions Balance, December 31, 2018 1.021.297 41.196,688 (40,926.234! 1.291.751 1.063,826 1,461.625 (2.218,425) 307.026 34,312 422.238 (433.999) 22 551 249,233 303,934 (319.521) 233.646 65.720 637.489 (639.399} 63.810 2.434.388 44,021.974 (44.537.578) 1,918.784 TOTAL LIABILITIES s 1.291.751 $ 307.026 s 22.551 $ 233.646 s 63.810 s 1.918.784 74 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL PURPOSE LOCAL OPTION SALES TAX Year Ended December 31, 2018 ORIGINAL CURRENT EXPENDITURES PROJECT ESTIMATED COSTS ESTIMATED COSTS PRJOR YEARS CURRENT YEAR Special Local Option Sales Tax 2014 Projects Road [mprovements s 14,418,000 $ 14,418,000 $ 5,853,781 $ 3,000,806 Capital Improvements Public Safety Library Water and Sewer 5,987,000 2,000,000 800,000 5,987,000 2,000,000 800,000 1,702,847 100,000 2,015,590 33,176 Contractual Payments City of Jasper City of Nelson City of Talking Rock Total 2014 Projects $ 6,000,000 729,000 66,000 30,000,000 $ 6,000,000 729,000 66,000 30,000,000 $ 2,462,409 299,183 27,086 10,445,306 $ 984,438 119,609 10,829 6,164,448 75 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA Reconciliation of Expenditures for SPLOST Year Ended December 31, 2018 Statement of Revenues, Expenditures and Changes in Fund Balance (page 5) Expenditures $ 6,164,448 Expenditures reported on Splost schedule S 6,164,448 Schedule of Projects Constructed With Special Purpose Local Option Sales Tax (page 75) 2014 SPLOST $ 6,164,448 Total $ 6,164,448 76 ---PAGE BREAK--- PICK.ENS COUNTY, GEORGIA SCHEDULE OF STATE CONTRACTUAL ASSISTANCE FOR THE YEAR ENDED DECEMBER 31, 2018 Current Year Amount Due from State Program Name Contract Number Received Expended (to) State Family Connections 93-181800114 $ 49,250 $ 49,250 The above schedule has been prepared on the modified accrual basis of accounting. 77 ---PAGE BREAK--- - BllS1NfSS Al>\'tso,~s ANIJ CPAs . l'H 770.532.913.I FX 770.53&.5223 525 CANOLER 5"l'l~El~T, NE. PO DRAWER 2396 G,\INESVILI t. CWKCIA 30503 Bate'?carter WWW.8ATESO\RTER,COM Exceeding expectations. Always. INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MA TIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS June 20, 2019 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 fund information of PICKENS COUNTY, GEORGIA, as of and for the year ended December 31, 2018, 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 June 20, 2019. 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 planning and perfonning 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. 78 ---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: TAX COMMISSIONER 2018-01 Statement of Condition: During testing, we noted that the bank reconciliation for the Tax Commissioner's General Account was incorrectly reconciled for the fiscal year 2018. Criteria: An accurate bank reconciliation should be performed on a basis. Effect of Condition: The risk of misappropriation and fraud increases when cash is not timely and accurately reconciled on a basis. Cause of Condition: Deposits in transit were being recorded in QuickBooks as they were clearing the bank which creates a timing issue. Recommendation: We recommend the Tax Commissioner's QuickBooks file be updated to reflect current and appropriate bank reconciliation's for fiscal year 2018 and going forward. Also, that an additional procedure of reviewing the bank reconciliation is implemented. Response: The Tax Commissioner's General Account was reconciled for the year regarding outstanding checks, the deposits in transit were not listed correctly. We will make sure that this is corrected going forward and in the correct format, as we will be working with the auditors to make sure that this doesn't happen again. 79 ---PAGE BREAK--- COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether PICKENS COUNTY, GEORGIA's financial statements are free of material misstatement, we perfonned 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 purpose. 80