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PICKENS C UNTY, GE RGIA ANNUAL FINANCIAL REP RT (WITH INDEPENDENT AUDIT R'S REP RT) Year Ended December 31, 2020 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA ANNUAL FINANCIAL REP RT For The Fiscal Year Ended December 31, 2020 TABLE F C NTENTS Page FINANCIAL SECTI N Independent Auditor's Report i-iii Management's Discussion and Analysis iv-xi BASIC FINANCIAL STATEMENTS G VERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Position 1 Statement of Activities 2 FUND FINANCIAL STATEMENTS - Balance Sheet Governmental Funds 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances 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 Fiduciary Net Position - Fiduciary Funds 10 — Statement of Changes in Fiduciary Net Position Fiduciary Funds 11 C MP NENT UNITS Combining Statement of Net Position 12 Combining Statement of Activities 13 — N TES T FINANCIAL STATEMENTS 14 56 REQUIRED SUPPLEMENTARY INF RMATI N - Schedule of the Net Pension Liability ACCG Deﬁned Beneﬁt Plan 57 - Schedule of Contributions ACCG Deﬁned Beneﬁt Plan 58 - Schedule of Notes to Required Supplementary Information ACCG Deﬁned Beneﬁt Plan 59 Schedule of Changes in the Net PEB Liability and Related Ratios— Health Care Plan of Pickens County, Georgia 60 Schedule of Employer Contributions Health Care Plan of Pickens County, Georgia 61 - - Schedule of Notes to Required Supplementary Information Health Care Plan of Pickens County, Georgia 62 Budgetary Comparison Schedule - General Fund 63 - 64 —Restricted Programs Special Revenue Funds 65 ---PAGE BREAK--- COMBINING TATEMENT AND CHEDULE NONMAJOR GOVERNMENTAL FUND Combining Balance heet 66 Combining tatement of Revenues, Expenditures and Changes in Fund Balances 67 upplemental Budgetary Comparison chedule -Law Library pecial Revenue Fund 68 heriff‘s Law Enforcement pecial Revenue Fund 69 -Emergency Telephone ystem pecial Revenue Fund 70 -Drug Task Force pecial Revenue Fund 71 -Hotel/Motel Tax pecial Revenue Fund 72 FIDUCIARY FUND - Combining tatement of Fiduciary Net Position All Custodial Funds 73 — Combining tatement of Changes in Fiduciary Net Position All Custodial Funds 74 UPPLEMENTAL INFORMATION chedule of Projects Constructed with pecial Purpose Local Option ales Tax 75—76 chedule of tate Contractual Assistance 77 C0MPLIANCEAND INTERNAL CONTROL REPORT chedule of Expenditures of Federal Awards 78 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial tatements Performed in Accordance with Government Auditing tandards 79—80 Independent Auditor‘s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 81-83 Auditor‘s chedule of Findings and Questioned Costs 84-87 ---PAGE BREAK--- Bl \\lNI\\ Am N m ('I’Aa Batescarter E ceeding e pectations. Always. PH [PHONE REDACTED] FX [PHONE REDACTED] 525 CANDLER STREET, NE PO D 2396 - CAINESVILLE, GEORSgIV/EZOSM WWW'BATESCARTER‘COM INDEPENDENT AUDITOR'S REPORT August 30, 2021 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, 2020, and the related notes to the ﬁnancial statements, Which collectively comprise the County’s basic ﬁnancial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these ﬁnancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ﬁnancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to e press 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, 2020, Which represent 18.16%, 3.30%, and 82.22%, 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 fumished 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 ontrol relevant to the entity’s preparation and fair presentation of the ﬁnan ial statements in order to design audit pro edures that are appropriate in the ir umstan es, but not for the purpose of expressing an opinion on the effe tiveness of the entity’s internal ontrol. A ordingly, we express no su h opinion. An audit also in ludes evaluating the appropriateness of a ounting poli ies used and the reasonableness of signiﬁ ant a ounting estimates made by management, as well as evaluating the overall presentation of the ﬁnan ial statements. We believe that the audit eviden e we have obtained is sufﬁ ient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the ﬁnan ial statements referred to above present fairly, in all material respe ts, the respe tive ﬁnan ial position of the governmental a tivities, the business-type a tivities, the aggregate dis retely presented omponent units, ea h major fund, and the aggregate remaining fund information of PICKENS COUNTY, GEORGIA, as of De ember 31, 2020, and the respe tive hanges in ﬁnan ial position and, where appli able, ash ﬂows thereof for the year then ended in a ordan e with a ounting prin iples generally a epted in the United States of Ameri a. Change in A ounting Prin iple As des ribed in NOTE 20 to the ﬁnan ial statements, the County restated the ﬁdu iary net position a ordan ing to GASB Statement 84, "Fidu iary A tivities." Our opinion is not modiﬁed with respe t to that matter. Other Matters Required Supplementary Information A ounting prin iples generally a epted in the United States of Ameri a require that the Management’s Dis ussion and Analysis, S hedule of the Net Pension Liability - ACCG Deﬁned - Beneﬁt Plan, S hedule of Contributions ACCG Deﬁned Beneﬁt Plan, S hedule of Notes to - Required Supplementary Information ACCG Deﬁned Beneﬁt Plan, S hedule of Changes in the - Net OPEB Liability and Related Ratios Health Care Plan of Pi kens County, S hedule of Employer Contributions - Health Care Plan of Pi kens County, S hedule of Notes to Required - Supplementary Information Health Care Plan of Pi kens County, Budgetary Comparison S hedule General Fund, and Budgetary Comparison S hedule Restri ted Programs Fund listed - - in the table of ontents be presented to supplement the basi ﬁnan ial statements. Su h information, although not a part of the basi ﬁnan ial statements, is required by the Governmental A ounting Standards Board, who onsiders it to be an essential part of ﬁnan ial reporting for pla ing the basi ﬁnan ial statements in an appropriate operational, e onomi , or histori al ontext. We and the other auditors have applied ertain limited pro edures to the required supplementary information in a ordan e with auditing standards generally a epted in the United States of Ameri a, whi h onsisted of inquiries of management about the methods of preparing the information and omparing the infomation for onsisten y with management’s responses to our inquiries, the basi ﬁnan ial statements, and other knowledge we obtained 11 ---PAGE BREAK--- during our udit of the b sic ﬁn nci l st tements. We do not express n opinion or provide ny ssur nce on the inform tion bec use the limited procedures do not provide us with sufﬁcient evidence to express n opinion or provide ny ssur nce. Other Inform tion Our udit w s conducted for the purpose of forming opinions on the ﬁn nci l st tements th t collectively comprise PICKENS COUNTY, GEORGIA’S b sic ﬁn nci l st tements. The introductory section, combining nd individu l nonm jor fund ﬁn nci l st tements, supplement l budget ry comp rison schedules, Schedule of Projects Constructed With Speci l S les T x Proceeds which is presented for purposes of ddition l n lysis s required by Ofﬁci l Code of Georgi 48—8-121, nd the Schedule of St te Contr ctu l Assist nce, nd re not required p rt of the b sic ﬁn nci l st tements. The Schedule of Expenditures of Feder l Aw rds is presented for purposes of ddition l n lysis s required by Title 2 US. Code of Feder l Regul tions (CFR) P rt 200, Uniform Administr tive Requirements, Cost Principles, nd Audit Requirements for Feder l Aw rds, nd is lso not required p rt of the b sic ﬁn nci l st tements. The combining nd individu l nonm jor fund ﬁn nci l st tements, schedule of expenditures of feder l w rds, supplement l budget ry comp rison schedules, Schedule of Projects Constructed with Speci l S les T x Proceeds, nd Schedule of St te Contr ctu l Services re the responsibility of m n gement nd were derived from nd rel te directly to the underlying ccounting nd other records used to prep re the b sic ﬁn nci l st tements. Such inform tion h s been subjected to the uditing procedures pplied in the udit of the b sic ﬁn nci l st tements nd cert in ddition l procedures, including comp ring nd reconciling such inform tion directly to the underlying ccounting nd other records used to prep re the b sic ﬁn nci l st tements or to the b sic ﬁn nci l st tements themselves, nd other ddition l procedures in ccord nce with uditing st nd rds gener lly ccepted in the United St tes of Americ by us nd other uditors. In our opinion, b sed on our udit, the procedures performed s described bove, nd the report of the other uditors, the combining nd individu l nonm jor fund ﬁn nci l st tements re f irly st ted, in ll m teri l respects, in rel tion to the b sic ﬁn nci l st tements s Whole. Other Reporting Required by GovernmentAuditing St nd rds In ccord nce with Government Auditing St nd rds, we h ve lso issued our report d ted August 30, 2021 on our consider tion of PICKENS COUNTY, GEORGIA‘S intern l control over ﬁn nci l reporting nd on our tests of its compli nce with cert in provisions of l ws, regul tions, contr cts, nd gr nt greements nd other m tters. The purpose of th t report is to describe the scope of our testing of intern l control over ﬁn nci l reporting nd compli nce nd the results of th t testing, nd not to provide n opinion on the effectiveness of PICKENS COUNTY, GEORGIA'S intern l control over ﬁn nci l reporting or on compli nce. Th t report is n integr l p rt of n udit performed in ccord nce with Government Auditing St nd rds in considering PICKENS COUNTY, GEORGIA’S intern l control over ﬁn nci l reporting nd compli nce. Ed , Cm é £07 1.1.? iii ---PAGE BREAK--- MANAGEMENT’ DI CU ION AND ANALY I As management of Pickens County, Georgia (the "County"), we provide this naITative overview and analysis of the ﬁnancial activities of the County for the year ended December 31, 2020. The County's ﬁnancial performance is discussed and analyzed within the context of the accompanying ﬁnancial statements and disclosures following this section. FINANCIAL HIGHLIGHT The County's assets exceeded its liabilities by $55,246,478 (net position) for the year reported. This represents an increase of $2,060,112 from the previous year. Total net position is comprised of the following: 1. Net investment in capital assets equaled $51,219,188. 2. Net position of $3,746,142 are restricted for debt service, capital outlay, or by other constraints imposed by law or regulations. 3. At the end of 2020, unrestricted net position balance increased by $1,974,786 ﬁ'om $0,693,638) to $281,148. The County's governmental funds reported total ending fund balance of $14,608, 183. This compares to the prior year ending fund balance of $12,396, 179 showing an increase of $2,212,004 during the current year. At the end of 2020, unassigned fund balance for the County's governmental funds was $10,082,804. OVERVIEW OF THE FINANCIAL TATEMENT The Management's Discussion and Analysis introduces the County‘s basic ﬁnancial statements. The basic ﬁnancial statements consist of three components: 1) govemment—wide ﬁnancial statements, 2) fund ﬁnancial statements, and 3) notes to the ﬁnancial statements. The basic ﬁnancial statements present two different Views of the County through the use of government — wide statements and fund ﬁnancial statements. This report contains other supplemental information that will enhance the reader's understanding of the ﬁnancial condition of the County. Government-wide Financial tatements 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. Govemment-wide statements report the County's net position and how it has changed. Net position is the difference between the County's total assets and total liabilities. Changes in net position indicate the improvement (an increase) or deterioration (a decrease) in the County's ﬁnancial condition. The ﬁrst of these govemment—wide statements is the tatement ofNet 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 secon government-wi e statement is the Statement ofActivities which in icates how the County's net position change uring the current ﬁscal year. This report is esigne to show the ﬁnancial reliance of the County's activities an functions on revenues provi e by County taxpayers. The government—wi e statements are ivi e into governmental activities, business-type activities, an component units. Governmental activities inclu e most of the County's basic services such as general a ministration, public safety, public works, court systems, culture an recreation, health an welfare, an housing an evelopment. Property taxes, sales taxes, an state an fe eral grants ﬁnance most of these activities. Business type activities are those that the County charges customers to provi e. These inclu e water services an the Pickens County Airport. Component Units for the County inclu e the Development Authority an the Pickens County Department of Public Health. Separate ﬁnancial statements are issue for both component units. See page 13 of the ﬁnancial statements for more information Fun Financial Statements Pickens County, like all other governmental entities in Georgia, uses fun accounting to ensure compliance with ﬁnance-relate laws an regulations. A fun is a grouping of relate accounts that is use to maintain control over resources that have been segregate for speciﬁc activities or objectives. All of the fun s of the County can be classiﬁe as governmental ﬁm s, proprietary fun s, or ﬁ uciary fun s. Governmentalfun s are use to account for those functions reporte as governmental activities in the government—wi e ﬁnancial statements. These fun s focus on how assets can rea ily be converte into cash an the amount of fun s left at year—en that will be available for spen ing in the next ﬁscal year. As a result, the governmental fun ﬁnancial statements give the rea er a etaile short—term view that helps etermine if there are ﬁnancial resources available to ﬁnance the County's programs. Most of the County‘s basic services are accounte for in governmental fun s. Proprietary fun s are use to report the functions presente as business-type activities in the government—wi e ﬁnancial statements. Pickens County uses enterprise fun s to account for the Water Department an the Airport. Fi uciary Fun s are use to account for resources hel for the beneﬁt of parties outsi e the Government. Pickens County's ﬁ uciary fun s are consi ere agency fun s. Notes to the Financial Statements provi e a itional information that is essential to a ﬁll] un erstan ing of the ata presente in both the government—wi e an fun ﬁnancial statements. The notes to the ﬁnancial statements begin on page 13 of this report. ---PAGE BREAK--- GOVERNMEN -WIDE FINANCIAL ANALYSIS he table below presents the County's condensed Statement of Net Position. Comparison analysis is made from the year ended December 31, 2020 to the year ended December 31, 2019 as required by GASB Statement No. 34. Comparative Schedule of Net Position December 31 Governmental Activities Business—type Activities otal Primary Government 2020 2019 2020 2019 2020 2019 Capital assets (net of depreciation) 5 46,555,755 5 44,590,196 $ 19,634,560 S 19,853,806 $ 66,190,315 $ 64,444,002 Current and other assets 17,744,405 15,361,152 (2,492,260) g2,552,597g [PHONE REDACTED] 12,8081555 otal Assets 64,300,160 59,951,348 17,142,300 17,301,209 81,442,460 77,252,557 — — otal deferred outﬂows of resources 2,112,948 2,883,156 2,112,948 2,883,156 Long—texm liabilities 14,900,830 12,804,228 11,810,402 12,088,785 26,711,232 24,893,013 Other liabilities 1,597,698 1,426,339 241,097 1,597,698 1.661436 - otal liabilities 16,498,528 14,230,567 11:8101402 12,329,882 28,308,930 26,560,449 - - — — otal deferred inﬂows of resources 24,325 24,325 Net Position: *ﬁwhﬁﬁ Net investment in capital assets Restricted Unrestricted 43,192,890 3,746,142 2,975,548 43,120,050 4,351,136 1,108,426 8,026,298 - (2,694,400) 7,773,391 - 2 802 064 51,219,188 3,746,142 281,148 50,893,441 4,351,136 (13693.6381 otal net position 5 49 914 580 $ 48 579 612 $ 5 331 898 S 4 971 327 $ 55 246 478 $ 53 550 939 Over time, net position serves as a useful indicator of a government's ﬁnancial position. he County's combined net position (government and business—type activities) totaled $55,246,478 at December 31, 2020 compared to $53,550,939 at December 31, 2019. he total increase was $1,695,539. he largest portion of net position, $51,219,188 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. he County uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending. Although the County's investments in capital assets are reported net of outstanding debt, the resources needed to repay the debt must be provided by other sources as the capital assets cannot be liquidated to pay the liabilities. he County has $3,746,142 of restricted net position that is subject to external restn'ctions, constitutional provisions, or enabling legislation on how they can be used. he remaining portion of net position represents $281,148 of unrestricted net position. he table below presents the County's condensed Statement of Activities for the year ended December 31, 2020 with comparative amounts for the year ended December 31, 2019. vi ---PAGE BREAK--- - - - - - - - - - - Comparat ve Schedule of Changes n Net Pos t on December 31 Governmental Act v t es 2020 2019 Bus ness-type Act v t es 2020 2019 Total Pr mary Government 2020 2019 REVENUES Program revenues Charges for serv ces $ 5,401,707 $ 5,245,725 $ 3,348,663 $ 3,354,960 $ 8,750,370 $ 8,600,685 Operat ng grants and contr but ons 5,577,705 6,135,698 44,445 36,333 5,622,150 6,172,031 Cap tal grants and contr but ons 8.962 - 1 10.861 141.664 1 19,823 141,664 Subtotal for program revenues General revenues 10,988,374 1 1,381,423 3,503,969 3,532,957 14,492.343 14.914380 Property taxes 14,094,266 13,111,108 - - 14,094,266 13,111,108 Sales taxes 10,654,570 9,176,567 — - 10,654,570 9,176,567 Insurance prem um tax Franch se tax 1,832,076 - 1,730,464 - - - - - 1,832,076 — 1,730,464 - Other taxes 562,787 360,511 - — 562,787 360,511 Interest and nvestment eam ngs Other revenue 10,979 501,587 30,715 466,622 - 3 - - 10,982 501,587 30,715 466,622 Grants and contr but ons not restr cted to a spec ﬁc program Ga n on sale of cap tal assets 48,718 232.333 52,228 152,320 - 36,002 - 1.401 48,718 268.335 52,228 153.721 Subtotal for general revenues 27,937,316 25,080,535 36.005 1,401 27,973,321 25081336 Total revenues 38,925,690 36,461,958 3,539,974 3,534,358 42,465,664 39.996316 EXPENSES Program expenses - General government 4,595,156 4,232,770 4,595,156 4,232,770 Jud c al 5,964,274 6,039,643 5,964,274 6,039,643 Publ c safety 15,366,236 14,969,883 15,366,236 14,969,883 Publ c works 6,972,201 8,062,619 6,972,201 8,062,619 Health & welfare 448,756 635,002 448,756 635,002 - - Recreat on & culture 2,872,888 1,119,412 2,872,888 1,119,412 Hous ng and development 923,600 844,471 923,600 844,471 - — Interest and pay ng agent fees 121,611 83,3 03 121,611 83,303 Water 2,673,792 2,609,295 2,673,792 2,609,295 - — - A rport 831.611 1,035,345 831,611 1,03 5,345 Total expenses 37,264,722 35,987,103 3,505,403 3,644,640 40,770.125 39.631.743 Change n net pos t on before transfers 1,660,968 474,855 34,571 (110,282) 1,695,539 364,573 Transfers (326.000) (233L662) 326.000 233.662 - - Change n net pos t on 1,334,968 241.193 360.571 123.380 1.695.539 364,573 Net pos t on, beg nn ng of year 48,579,612 48,338,419 4,971,327 4,847,947 53,550,939 53,186,366 Net pos t on, beg nn ng as restated 48,579,612 48,338,419 4,971,327 4.847.947 53.550.939 53,186,366 Net pos t on, end of year $ [PHONE REDACTED] $ 483279.612 $ 5:331a898 $ 4 971 327 $ 55 246 478 $ 53 550§939 Governmental Act v t es Revenues such as property taxes, nsurance prem um tax and other taxes, cont nue as the ma n source of revenue for governmental act v t es Wh ch totaled $27,937,316 n 2020 compared to $25,080,535 n 2019. Th s change s an ncrease of 11.39%. Governmental Act v t es Expenses by funct on as reﬂected n the table above show that dur ng 2020, the County expended 41% for Publ c Safety, 16% for Jud c al, 19% for Publ c Works, 12% for General Government, 8% for Culture and Recreat on, 2% for Hous ng and Development, 1% for Health and Welfare, and 1% for Interest on Long-term debt. As a comparat ve, dur ng ﬁscal year 2019, the County expended 42% for Publ c Safety, 17% for Jud c al, 22% for Publ c Works, 12% for General Government, 3% for Culture and Recreat on, 2% for Hous ng and Development, 2% for Health and Welfare, and 1% for Interest on Long-term debt. V ---PAGE BREAK--- Business- ype ac ivi ies increased he Coun y's ne posi ion by $3 60,571. Revenues by Source Gox'emmen -Wide Ac iw‘ ies O her m g°/_u O her‘ 15% Ogera ing Gran s Sales Tax 29% 15% Charges for Services 9% Progeﬂy Tax * O her Inves men Capi al Gran s 0% *Due o rounding, char s may no always equal 100% Expenses by Func ion Gox'exmnem—Wide Ac ivi ies Solid Was e 2% 12% General Governmen In eres 0% Housing & Developmen y/ / / / Public Works 18% / Recrea ion 8% Heal h & Welfare 1% Judicial 16% 40% Public Safe y viii ---PAGE BREAK--- FINANCIAL ANALY I OF THE GOVERNMENT’ FUND 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. peciﬁcally, 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, PLO T, and Restricted Programs. The General Fund is the chief operating fund of the County. It is used to account for all governmental ﬁnancial resources not restricted by state or federal laws, local ordinances, or other imposed requirements. The County's total governmental funds reported ending fund balance of $11,589,433. This compares to the prior year ending fund balance of $8,870,997 showing a increase of $2,718,436 during the current year. At the end of ﬁscal year 2020, unassigned fund balance for the County's governmental funds was $10,082,804. Another of the County's major governmental funds is the PLO T fund. The fund balance of the PLO T fund decreased by $(631,927) during the current ﬁscal year. Collections for 2014 PLO T began on July 1, 2014. Based on the approved 2014 PLO T referendum, the majority of the 2014 PLO T revenues are allocated for capital road projects and public safety. The PLO T fund has an ending fund balance of $2,179,448 which is restricted for capital projects as outlined in the 2014 PLO T referendum. The County's other major governmental fund is the Restricted Programs fund. The fund balance of the Restricted Programs special revenue fund increased by $136,454 during the current ﬁscal year. The Restricted Programs fund is used to account for multiple court-administered reimbursement grants. The Restricted Programs fund has an ending fund balance of $469,330 which is restricted restricted speciﬁcally for the Judicial programs. In 2020, governmental revenues increased $2,345,791 from 2019. This increase is priman'ly 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 16% decrease in revenues in the PLO T fund. There was a 11% decrease in revenues in the Restricted Programs fund. ---PAGE BREAK--- Revenues b Source » Fund Level Governmental FinesaFor‘fenures 1% 1% Other Charges for Senllces 10% Intergovernmental 14% License & Permits 1% 71% Taxes Proprietar funds. The Count 's proprietar fund statements provide the same t pe of information presented in the government-wide statements but in more detail. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The Count 's capital assets for governmental and business-t pe activities as of December 31, 2020 total $66,190,315 (net of accumulated depreciation). These assets include land, land improvements, infrastructure, buildings, machiner and equipment, furniture and ﬁxtures, vehicles and construction in progress. Pickens Count 's Capital Assets (Net of depreciation) Governmental Activities 2020 2019 Business-g pe Activities 2020 2019 Total Pn'mag Government 2020 2019 Land and improvements $ 6,161,891 $ 4,782,483 $ 1,980,749 $ 2,061,538 $ 8,142,640 $ 6,844,021 Construction in progress - 3 87,942 6,410,445 7,727,221 6,410,445 8,115,163 Buildings Machiner & equipment Furniture & ﬁxtures 30,044,773 2,718,877 - 29,186,527 2,337,980 - 1,287,271 542,121 - 220,472 535,853 - 31,332,044 3,260,998 - 29,406,999 2,873,833 - Vehicles 2,381,810 2,336,920 147,469 124,446 2,529,279 2,461,366 Inﬁastructure 5248.404 4.214267 9.266505 8.546.711 14,514,909 12.760.978 Total Assets $ [PHONE REDACTED] $ 43:246EI 19 19i6343560 g $ l9!216i241 § 66:1902315 $ [PHONE REDACTED] Detailed information on the Count 's capital assets can be found in Note 6 of the basic ﬁnancial statements. ---PAGE BREAK--- - - - - 0 Long-te m Debt. Du ing 2020, the long-te m debt of Pickens County‘s gove nmental activities inc eased $5,409,784. The inception of capital leases fo the pu chase of vehicles and equipment totaled $218,490 du ing 2020. The notes payable catego y dec eased due to the continual epayment of debt. The net pension liability inc eased $2,462,806, and the net OPEB obligation dec eased by $228,434 due to cont ibutions paid by the County and activity of the plans' ﬁducia y net position. Long—te m debt dec eased in business-type activities in the amount of $683,421). Pickens County's Outstanding Debt Bonds Payable, Capital Leases, Notes Payable, Claims, and Othe Debts Gove nmental Activities Business—gme Activities Total P imaﬂ Gove nment 2020 2019 2020 2019 2020 2019 Bonds payable $ $ $ 9,869,355 $ 10,622,130 S 9,869,355 $ 10,622,130 Capital leases 304,682 715,712 71,190 7,632 375,872 723,344 Notes payable 3,014,710 35,449 1,667,716 1,568,477 4,682,426 1,603,926 - - Landﬁll closu e/postclosu e 450,000 377,600 450,000 377,600 Compensated absences 384,616 306,703 14,571 8,014 399,187 314,717 Net pension liability 9,553,849 7,091,043 9,553,849 7,091,043 Net OPEB liability 1,192,973 964,539 1.192.973 964,539 - - Totals S 14E900E830 $ 9:491:046 $ 11:622a832 12i206i253 5 [PHONE REDACTED] 35 21i697i299 g Additional info mation ega ding Pickens County’s long—te m debt and beneﬁt plans can be found in Note 8 on pages 34 th ough 38 and Note 10 on pages 39 th ough 49 of this epo t. ECONOMIC FACTORS AND THE 2021 BUDGET o The 2020 millage ate dec eased f om 7.779 to 7.613 pe $1,000 of valuation. The 2020 millage ate was a dec ease of 0.166%, howeve the 2020 tax digest eﬂected an inc ease of $75,265,659 in ove all valuation. The 2020 total County taxes levied inc eased $332,107 as compa ed to 2019. o The 2021 budget was app oved and adopted by the Boa d of Commissione s on Decembe 17, 2020. The 2021 ope ating budget inc eased f om $28,092,281 to $29,027,352, an inc ease of $935,071. The majo ity of the evenue inc ease is in p ope ty and sales tax evenues, title ad valo em tax, license and pe mit fees. The majo ity of expenditu e inc ease is in pu chased se vices and sala ies and beneﬁts. budgeta y epo ts a e p ovided to all depa tment heads, elected ofﬁcials and the Boa d of Commissione s. Pickens County management continues to monito evenue collection ates and cont ol budgeta y spending in an effo t to p ovide se vices at o above cu ent levels without fu the bu dening the county taxpaye s. REQUESTS FOR INFORMATION This epo t is designed to p ovide the eade a gene al ove view of the County's ﬁnances and demonst ate Management's commitment to public accountability. Questions conce ning any of the info mation found in this epo t o equests fo additional info mation should be di ected to Cha lene Bunch, Finance Di ecto fo Pickens County Boa d of Commissione s, 1266 East Chu ch St eet, Suite 175, Jaspe , Geo gia 30143. xi ---PAGE BREAK--- - - - - PICKENS C UNTY, GE RGIA STATEMENT F NET P SITI N ASSETS Cash Investments Capital lease receivable Receivables (net of allowance for uncollectibles) lntemal balances Inventories Prepaid items Resm'cted assets: Cash Customer deposits Capital lease receivable Net pension obligation Capital assets: Capital assets not being depreciated Capital assets being depreciated Less: accumulated depreciation Capital assets, net of depreciation T TAL ASSETS DEFERRED UTFL WS F RES URCES Pension expense PEB expense T TAL DEFERRED UTFL WS F RES URCES T TAL ASSETS & DEFERRED UTFL WS LIABILITIES Accounts payable Accrued interest payable ther accrued items Due to other governments Uneamed revenue Noncurrent liabilities: Due within one year Compensated absences payable Accrued landﬁll closure / postclosure Notes ﬁ'om direct borrowings Capital leases payable Revenue bonds payable Due in more than one year Compensated absences payable Net pension liability Net PEB liability Accrued landﬁll closure / postclosure Notes ﬁom direct borrowings Capital leases payable Revenue bonds payable T TAL LIABILITIES DEFERRED INFD WS F RES URCES Pension expense PEB expense T TAL DEFERRED INFL WS F RES URCES T TAL LIABILITIES AND DEFERRED INFL WS F RES URCES NET P SITI N Net investment in capital assets Restricted for: Capital outlay projects Judicial programs Public safety programs Health and welfare programs Housing and development programs Unresuicted T TAL NET P SITI N December 3 1 , 2020 PRIMARY G VERNMENT G VERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES $ 9,702,846 $ 800 23,629 — 4,223,728 290,518 2,860,209 (2,860,209) 59,495 68,879 723,390 - — 151,108 - 7,752 — — - — 5,281,996 8,127,310 72,324,980 22,966,614 (31,051,221) (11,459,364) 46,555,755 19,634,560 64,300,160 17,142,300 - 1,852,546 - 260,402 - 2,112,948 66,413,108 17,142,300 1,090,083 149,619 - 10,277 507,615 11,591 — 16,083 269,231 10,200 30,000 - — 293,879 104,246 21,258 — 987,596 115,385 4,371 9,553,849 - — 1,192,973 - 420,000 2,720,831 1,667,716 200,436 49,932 — 8,881,759 16,498,528 11,810,402 - . - . - — 16,498,528 11,810,402 43,192,890 8,026,298 - 2,752,084 — 663,787 - 315,007 — - 15,264 2,975,548 (2,694,400) L_JQQIJASQ. T TAL C MP NENT UNITS S 9,703,646 23,629 - 4,514,246 — S 729,388 - 1 68,000 63,378 - 128,374 723,390 — 470 151,108 7,752 — - — — 2,254,000 8,576 13,409,306 95,291,594 142,510,585! 66,190,315 81,442,460 - 157,737 $99,422! 58,315 3,282,127 1,852,546 260,402 2,112,948 83,555,408 116,362 92,328 208,690 3,490,817 1,239,702 1,998 10,277 — - 519,206 — 24,748 16,083 802,017 — 279,431 - 30,000 — 293,879 - 125,504 987,596 79,062 119,756 15,784 9,553,849 127,111 1,192,973 432,956 420,000 - - 4,388,547 — 250,368 8,881,759 1,499,778 28,308,930 2,983,454 . 13,477 — 178,071 - 191,548 28,308,930 3,175,002 51,219,188 58,315 — 2,752,084 - 663,787 — 315,007 - 29,426 15,264 — 281,148 228,074 mm 2:43am The accompanying notes are an integral part of this statement. 1 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F ACTIVITIES For the Year Ended December 31, 2020 NET (EXPENSE) AND CHANGES IN NET P SITI GRAM ..........PRIMARY G PERATING CAPITAL CHARGES F R GRANTS AND GRANTS AND G VERNMENTAL BUSINESS—TYPE C MP NENT FUNCTI NS/PR GRAMS EXPENSES SERVICES C NTRIBUTI NS C NTRIBUTI NS ACTIVITIES ACTIVITIES T TAL UNITS PRIMARY G VERNMENT G VERNM ENTAL ACTIVITIES — — General government 5 4.595.156 $ 1,167,698 $ 30,311 $ 8,962 $ (3,388,185) $ $ (3,388,185) $ — — — Judicial 5,964,274 1,064,858 $402,625 (1 ,496‘79 1) (1.496.791) — - - Public safety 15,366,236 1,996,066 554,522 (12,815,648) (12.815.648) - - — Public works 6,972,201 703,906 1,454,637 (4,8 13,65 8) (4.813.658) - - — Public health and welfare 448,756 24,066 65,160 (359.530) (359.530) - — - - Recreation and culture 2,872,888 94,014 (2,778,874) (1778.874) - - - Housing and development 923,600 351.099 70.450 (502.051) (502,051) Interest 121,611 — (121,611) (121,611) - — - - - Total Governmental Activities 37.264.722 5,401,707 5,577,705 8,962 (26,276,348) (26,276,348) BUSINESS—TYPE ACTIVITIES - - Water 2,673,792 2,81 1,993 44,445 182,646 182,646 - - Airport 831.611 536.670 - 110,861 (184,080) (184,080) - Total Business-Type Activities 3.505.403 3,348,663 44,445 1 10:86] (1,435) (1,434) - T TAL PRIMARY G VERNMENT i 40'770i125 § 8'750!37 5 5.6221150 $ 1 19g= (26,276,348) (1,434) (26.277.782) C MP NENT UNITS - - — 95.424 Healm Department 3 704,246 $ 347,325 $ 452.345 $ — - Development Authority 83,221 57,375 - 115,581 — - 89,735 - - — 185.159 T TAL C MP NENT UNITS $ 787.467 5 404,700 $ 452:345 $ 1 15g; GENERAL REVENUES — 14,094,266 14.094.266 Property taxes - — Sales taxes 10,654,570 10.654.570 - Insurance premium taxes 1,832,076 1,832,076 — - - Real estate recording taxes 562,787 562,787 — ther taxes 501,587 501,587 Total taxes — 27,645,286 27,645,286 10.979 3 10.932 606 Unrestricted investment earnings - Grants and contributions not restricted to a speciﬁc program 48,718 — - 48,718 Gain on sale of capital assets 232.333 36,002 268,335 — TRANSFERS (326,000) 326,000 T TAL GENERAL REVENUES AND TRANSFERS 27,611,316 362,005 27,973,321 606 CHANGES IN NET P SITI N 1,334,968 360,571 1,695,539 185,765 NET P SITI N, Beginning 48 579,612 4,971,327 53,550,939 130,050 NETP SITI NEnding ww L_gagw. The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS C UNTY, GE RGIA BALANCE SHEET G VERNMENTAL FUNDS December 31, 2020 RESTRICTED ASSETS GENERAL SPL ST PR GRAMS Cash 35 6,916,487 $ 1,905,808 $ 505,476 - Investments - Receivables (net of allowance for uncollectibles) 3,256,793 598,574 237,895 - - Interfund receivables 3,361,664 - - Prepaid items 723,390 — — Inventories 59,495 Restricted assets: Cash 151.108 - — T TAL ASSETS 14,468,937 2,504,382 743,371 T TAL ASSETS AND DEFERRED UTFL WS F RES URCES § 14i468l937 § 2:504a382 $ 743332;. LIABILITIES, DEFERRED INFL WS F RES URCES AND FUND BALANCES Liabilities Accounts payable $ 863,334 $ 14,173 $ 180,354 - ther accrued items 320,481 29,793 Interfund payables 157,165 310,761 63,894 T TAL LIABILITIES 1,340,980 324,934 274,041 DEFERRED INFL WS F RES URCES - Unavailable revenue - property taxes 1,538,524 - - T TAL DEFERRED INFL WS F RES URCES 1,538,524 T TAL LIABILITIES AND DEFERRED INFL WS F RES URCES 2.879504 324.934 274.041 FUND BALANCES Nonspendable: WM - Prepaid expenditure 723,390 - Inventories 59,495 Restricted: - Capital outlay projects 572,636 2,179,448 - Judicial programs 151,108 469,330 - Public safety programs - Housing and development programs - - - - Unassigned 10.082.804 T TAL FUND BALANCES 1.589,433 2.179.448 469,330 1 T TAL LIABILITIES, DEFERRED INFL WS F RES URCES AND FUND BALANCES $ 7431;74 THER N NMAJ R G VERNMENTAL FUNDS $ 375,076 23,628 130,467 34,621 - — - 563,792 $ 563.792 $ 32,223 157,341 4,256 193,820 — - 193.820 - - - 39,701 315,007 15,264 - 369,972 563.79gII § T TAL G VERNMENTAL FUNDS $ 9,702,847 23,628 4,223,729 3,396,285 723,390 59,495 151.108 18,280,482 $ 18:280i482 $ 1,090,084 507,615 536,076 2,133,775 1,538,524 1,538,524 3.672.299 723,390 59,495 2,752,084 660,139 315,007 15,264 10.082.804 14.608,183 $ W The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REC NCILIATI N F THE G VERNMENTAL FUNDS BALANCE SHEET T THE STATEMENT F NET P SITI N December 31, 2020 Total Fund Balances for Governmental Funds (page 3) $ 14,608,183 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. 46,555,755 Revenues in the statement of activities that do not provide current ﬁnancial resources are reported as unavailable revenues in the funds. Property Taxes 1,53 8,524 1,538,524 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 (9,553,849) 1,852,546 (3 84,616) Capital leases Net PEB liability - Net deferred inﬂows (outﬂows) PEB expense Notes payable Accrued landﬁll closure/postclosure (304,682) (1 ,192,973) 260,402 (3 ,014,710) 1450,0001 112,787,882! Total net position of governmental activities (page 1) § 49a914a580 The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES G VERNMENTAL FUNDS For the Year Ended December 31, 2020 RESTRICTED THER N NMAJ R T TAL G VERNMENTAL GENERAL SPL ST PR GRAMS G VERNMENTAL FUNDS FUNDS REVENUES Taxes $ 21,273,902 $ 6,270,311 $ - $ 101,184 $ 27,645,397 Licenses and permits Intergovernmental Fines and forfeitures 547,158 3,490,701 188.625 - - - - 2,101,412 240,939 - - 18,816 547,158 5,592,113 448,380 Charges for services Contributions and donations 2,924,219 2,114 - - 205,338 12,805 785,581 19.389 3,915,138 34.308 Investment income 8,384 8,962 1,302 1,294 19,942 Miscellaneous 480,451 - 10,000 580 491,031 T TAL REVENUES 28,915,554 6.279.273 2,57L796 926,844 38,693,467 EXPENDITURES Current Expenditures General government Judicial 3,918,661 3,559,989 - — - 1,896,773 — 6,909 3,918,661 5,463.671 Public safety Public works 12,318,735 3,151.183 193,988 1,529,010 - - — 1,441,432 13,954,155 4.680.193 Public health and welfare 150,954 — 260‘378 — 41 1.332 Recreation and culture Housing and development Intergovernmental Capital outlay — 1,005,539 720.710 2,943,025 - 1,758,226 1,278,374 1,592,941 — - 313,359 — - - 24,425 85 .239 2,763,765 745,135 1,676,972 4,535,966 Debt service Principal Interest 287.046 96.305 207.916 24.745 - - 58.024 561 552,986 121,611 T TAL EXPENDITURES 28,152,147 6.585.200 24705 10 1.616.590 38,824,447 EXCESS (DEFICIENCY) F REVENUES VER(UNDER) EXPENDITURES 763.407 (305,9ﬂ) 101.286 (689,746) (130,980) THER FINANCING S URCES (USES) Sale of county property Capital lease proceeds Transfers in Transfers out T TAL THER FINANCING S URCES (USES) 68,102 2,523,234 46,022 (682,329[ 1.955.029 - — - (326,000) (326,000) - — 81,190 (46,022) 3541451 — - 77.648 601.139 678,787 145.750 2,523,234 728.351 (1,054L3ﬂ) 2342984 NET CHANGE IN FUND BALANCES FUND BALANCES, Beginning of year FUNDBALANCESsEndofyear 2,718,436 (63 Ly) 8,870,997 2,811,375 gﬁw L.E—éﬂﬁi 136,454 332,876 $ 4699.32 s (10,959) 380,931 369:2. s 2,212,004 12,396,179 145% The accompanying notes are an integral part of this statement. 5 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REC NCILIATI N F THE STATEMENT F REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES F G VERNMENTAL FUNDS T THE STATEMENT F ACTIVITIES For the Year Ended December 31, 2020 Net change in fund balances (page 5) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlays 4,535,966 Depreciation expense 12,656,991) In the statement of activities, only the gain/loss on the sale of various capital assets is reported, whereas in the governmental funds, the proceeds from the sale increase ﬁnancial wsources. Thus, the change in net position differs from the change in fund balance by the net book value of the capital assets sold. Net book value of capital assets sold 193,416) Revenues in the statement of activities that do not provide current ﬁnancial resources are not reported as revenues in the funds. Property taxes 1,538,524 Donated assets 1802000 Revenues reported in the funds that relate to prior years are not reported as revenue in the statement of activities. Property taxes (1,53 5,294) Fines 3 £340 g 1 Under the modiﬁed accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available ﬁnancial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when ﬁnancial resources are available. In addition, interest on long—term debt is not recognized under the modiﬁed accrual basis of accounting until due, rather than as it accrues. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is ﬁrst issued, where as these amounts are deferred and amortized in the statement of activities. This adjustment combines the net change of two balances. Proceeds from borrowing including premiums and discounts (2,523,234) Principal payments on long-tenn debt 552,986 Accrued landﬁll closure/postclosure, current year (450,000) Accrued landﬁll closure/postclosure, prior year 450,000 Some expenses reported in the statement of activities do not require the use of current ﬁnancial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences, current year (384,61 6) Compensated absences, prior year 3472492 Net PEB obligation is not available during the current period and therefore is not reported in the funds and changes in the PEB plan actuan‘al assumptions are reported in the defened outﬂows and deferred inﬂows. End of year net PEB liability (1,192,973) - — Beginning of year net PEB liability 903,337 - End of year defemad outﬂows 260,402 - Beginning of year deferred outﬂows (2,271) - - End of year defened inﬂows - Beginning of year deferrad inﬂows 241325 Net pension liability is not available during the current period and therefore is not reported in the ﬁmds and changes in the ACCG pension plan actuarial assumptions are reported in deferred outﬂows and deferred inﬂows. End of year - net pension liability (9,553,849) Beginning of year net pension liability 9,754,257 - — End of year deferred outﬂows 1,852,546 - Beginning of year deferred outﬂows (2,880,885) Rounding Changes in net position of governmental activities (page 2) $ 2,212,004 1,878,975 (93,416) 1,718,524 (1,538,634) (1,970,248) (37,124) (7,180) (827,931) 1 334 968 The accompanying notes are an integral part of this statement. 2 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F NET P SITI N PR PRIETARY FUNDS December 31, 2020 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRP RT FUND FUND T TAL ASSETS Current Assets Cash $ 800 $ $ 800 - Receivables (net of allowance for uncollectibles) 283,972 6,546 290,518 Interfund receivables 122,544 122,544 - Inventories 50,333 18,546 68,879 Restn'cted assets: Customer deposits 7,752 7,752 — T TAL CURRENT ASSETS 465,401 25,092 490,493 Noncurrent Assets Capital assets Capital assets not being depreciated 728,898 7,398,412 8,127,310 Capital assets being depreciated 19,991,549 2,975,065 22,966,614 Less: accumulated depreciation (10,040,359) (1,419,005) '1 1,459,364) T TAL CAPITAL ASSETS (NET F ACCUMULATED DEPRECIATI N) 10,680,088 8,954,472 19,634,560 T TAL N NCURRENT ASSETS 10,680,088 8,954,472 19,634,560 T TAL ASSETS 11,145,489 8,979,564 20,125,053 LIABILITIES Current Liabilities Accounts payable 122,560 27,059 149,619 ther accrued items 9,958 1,633 1 1,591 lnterfund payables 2,102,234 880,519 2,982,753 Unearned revenue 2,183 13,900 16,083 Compensated absences payable 10,200 10,200 - - Capital lease payable 21,258 21,258 Revenue bonds payable 530,000 457,596 987,596 Accrued interest payable 10,277 10,277 - T TAL CURRENT LIABILITIES 2,808,670 1,380,707 4,189,377 Noncurrent Liabilities Compensated absences payable 4,371 4,371 - — Notes from direct borrowings 1,667,716 1,667,716 - Capital lease payable 49,932 49,932 Revenue bonds payable 4,718,000 4,163,759 8,881,759 T TAL N NCURRENT LIABILITIES 6,440,019 4,163,759 10,603,778 T TAL LIABILITIES 9,248,689 5,544,466 14,793,155 NET P SITI N Net investment in capital assets 3,693,181 4,333,117 8,026,298 Unrestricted (1,796,381) (898,019) (2,694,400) T TAL NET P SITI N $ 1 896 800 $ 3 435 098 $ 5 331 898 The accompanying notes are an integral part of this statement. 7 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F REVENUES, EXPENSES AND CHANGES IN FUND NET P SITI N PR PRIETARY FUNDS For the Year Ended December 31, 2020 BUSINESS—TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRP RT FUND FUND T TAL PERATING REVENUES Charges for sales and services: Pledged as security for revenue bonds: - Water sales $ 2,553,411 $ $ 2,553,411 Water connection fees 258,5 82 258,582 - - ther 237 237 - Charges for services-other 536,433 536,433 Total perating Revenues 2,811,993 536,670 3,348,663 PERATING EXPENSES Salaries and beneﬁts 729,977 97,370 827,347 ther services and charges 1,040,880 331,420 1,372,300 Depreciation 751,226 153,135 904,361 Repairs and maintenance 47,632 47,632 - Total perating Expenses 2,522,083 629,557 3,15 L640 PERATING INC ME (L SS) 289,910 (92,887) 197,023 N N PERATING REVENUES (EXPENSES) - Investment earnings 3 3 Interest expense (151,706) (202,057) (353,763) Gain (loss) on sale of capital assets 36,002 36,002 — Total Nonoperating Revenues (Expenses) (1 15 ,704) (202,054) (317,758) INC ME (L SS) BEF RE C NTRIBUTI NS AND TRANSFERS 174,206 (294,941) (120,735) Capital grants 110,861 1 10,861 - - Donated property 26,271 26,271 Pledged as security for revenue bonds: Developers Cash 18,174 18,174 - - Transfer in 192,212 133,788 326,000 CHANGE IN NET P SITI N 410,863 (50,292) 360,571 T TAL NET P SITI N, Beginning of year 1,485,937 3,485,390 4,971,327 T TAL NET P SITI N, End of year $ 1,896,800 $ 3,435,098 $ $331,898 The accompanying notes are an integral part of this statement. 8 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F CASH FL WS PR PRIETARY FUNDS For the Year Ended December 31, 2020 BUSINESS-TYPE ACTIVITIES ENTERPRISE FUNDS WATER AIRP RT FUND FUND T TAL CASH FL WS FR M PERATING ACTIVITIES Receipts from customer $ 2,777,247 $ 547,294 $3,324,541 Payments to suppliers (1,1 1 1,460) (230,860) 1,342,320) Payments to employees (735,867) (99,655) @5522) Net cash provided by (used in) operating activities 929,920 216,779 1,146,699 CASH FL WS FR M CAPITAL AND RELATED FINANCING ACTIVITIES — Acquisition and construction of capital assets (627,242) (627,242) Proceeds from sale of capital assets 4,400 4,400 - — Proceeds from new debt 186,021 186,021 — Proceeds from capital grants 110,861 110,861 — Transfers in 192,212 192,212 Principal payments on debt (532,593) (125,583) (658,176) Interest paid (152,718) (202,057) (354,775) Net cash provided (used) by capital and related ﬁnancing activities (929)920) (216,779) 1,146,699) Net increase (decrease) in cash and cash equivalents - CASH, Beginning of year 800 800 CASH, End of year $ 800 $ - $ 800 REC NCILIATI N F PERATING INC ME (L SS) T NET CASH PR VIDED (USED) BY PERATING ACTIVITIES perating income (loss) $ 289,910 $ (92,887) $ 197,023 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 751,226 153,135 904,361 (Increase) decrease in: Accounts receivable (34,746) 7,224 (27,522) Inventory (22,932) 40,544 17,612 Increase (decrease) in: Accounts payable (8,090) (15,270) (23,360) Compensated absences 6,201 6,201 — ther accrued items (12,091) (2,285) (14,376) Deferred revenue 3,400 3,400 - Interfund payables (39.558) 122.918 83.360 Net cash provided by (used in) operating activities 929E920 216:779 §1i146l699 § § SUPPLEMENTAL DISCL SURE F N N-CASH ACTIVITIES - Trade in value for disposals of capital assets $ 48,000 $ $ 48,000 - Developer contributions recognized as revenue for cash received in prior years $ 18,174 $ $ 18,174 The accompanying notes are an integral part of this statement. ---PAGE BREAK--- PICKENS COUNTY, GEORGIA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2020 CUSTODIAL FUNDS ASSETS Cas w TOTAL ASSETS 1,692,471 LIABILITIES Amount eld in trust 975 790 TOTAL LIABILITIES 975,790 NET POSITION Restricted for ot ers 716,681 TOTAL NET POSITION $ 716,681 T e accompanying notes are an integral part of t is statement. 10 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA STATEMENT F CHANGES IN FIDUCIARY NET P SITI N FIDUCIARY FUNDS For the Year Ended December 31, 2020 ADDITI NS Taxes collected for other entities Fees collected for other entities Court individual cases Inmate account deposits T TAL ADDITI NS DEDUCTI NS Payments of taxes to other entities Payments of fees to other entities Payments of others Payments of inmates T TAL DEDUCTI NS CHANGE IN NET P SITI N T TAL NET P SITI N, Beginning of year Change in accounting principle T TAL NET P SITI N, Beginning of year as restated NET P SITI N, End of year CUST DIAL FUNDS $ 47,253,995 2,031,161 572,723 51 1 l 1 49 908 990 47,482,634 2,031,142 606,881 472516 50168173 (259,183) 975 864 975,864 716681 The accompanying notes are an integral part of this statement. 11 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA C MP NENT UNITS C MBINING STATEMENT F NET P SITI N December 31, 2020 INDUSTRIAL HEALTH DEVEL PMENT DEPARTMENT AUTH RITY T TAL ASSETS Cash $ 465,173 $ 264,215 $ 729,388 Capital lease receivable 168,000 168,000 - - Receivables (net of allowance for uncollectibles) 63,378 63,378 - Inventories 470 470 Non-current assets: Capital lease receivable 2,254,000 2,254,000 - - Net pension obligation 8,576 8,576 Capital assets: Capital assets being depreciated 157,737 157,737 - - Less: accumulated depreciation (99.422) (99,4221 - Capital assets, net of depreciation 58,315 58,315 T TAL ASSETS 595,912 2.686.215 3,282,127 DEFERRED UTFL WS F RES URCES - Pension expense 116,362 116,362 - PEB expense 92,328 92,328 - T TAL DEFERRED UTFL WS F RES URCES 208,690 208,690 T TAL ASSETS AND DEFERRED UTFL WS F RES URCES 804.602 2.686.215 3.490.817 LIABILITIES Accounts payable 1,998 1,998 - - Due to other governments 24,748 24,748 - Uneamed revenue 802,017 802,017 Noncurrent liabilities: Due within one year Compensated absences payable - - Revenue bonds payable 79,062 79,062 Due in more than one year Compensated absences payable 15,784 15,784 — - Net PEB liability 127,111 127,111 — Net pension liability 432,956 432,956 - Revenue bonds payable 1,499,778 1,499,778 T TAL LIABILITIES 602.597 2.380.857 2,983,454 DEFERRED INFL WS F RES URCES - Pension expense 13,477 13,477 - PEB expense 178.071 178.071 - T TAL DEFERRED INFL WS F RES URCES 191.548 191.548 T TAL LIABILITIES AND DEFERRED INFL WS F RES URCES 794.145 2,380,857 3,175,002 NET P SITI N — Net investment in capital assets 58,315 58,315 Restricted for: Public health and welfare 29,426 29,426 - Unrestricted (77.284) 305.358 228.074 T TAL NET P SITI N $ 10,457 $ 305,358 $ 3152815 The accompanying notes are an integral part of this statement. 12 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA C MP NENT UNITS C MBINING STATEMENT F ACTIVITIES For the Year Ended December 31, 2020 GRAM ....NET (EXPENSE) AND CHANGES IN NET P SITI CHARGES PERATING CAPITAL F R GRANTS AND GRANTS AND HEALTH DEVEL PMENT FUNCTI NS/PR GRAMS EXPENSES SERVICES C NTRIBUTI NS C NTRIBUTI NS DEPARTMENT AUTH RITY T TAL C MP NENT UNITS G VERNMENTAL ACTIVITIES - - Health Department $ 704,246 $ 347,325 $ 452,345 $ $ 95,424 $ $ 95,424 - Industn'al Development Authority 83,221 57,375 1 15,581 89,735 89,735 T TAL C MP NENT UNITS $ 787.467 $ 404.700 $ 452:345 $ 1 15*“; 95.424 89.735 185.159 GENERAL REVENUES — 606 606 Unrestricted investment earnings - 606 606 T TAL GENERAL REVENUES AND TRANSFERS 90,341 185,765 CHANGES IN NET P SITI N 95 ,424 NET P SITI N, Beginning (84,967) 215,017 130,050 10.457 $ 305% $ 315.815 $ NET P SITI N, Ending The accompanying notes are an integral part of this statement. 13 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 - N TE 1 SUMMARY F SIGNIFICANT ACC UNTING P LICIES The ﬁnancial statements of PICKENS C UNTY, GE RGIA 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. REP RTING 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 fﬁcers: the Tax Commissioner, Probate Court Judge, Sheriff, and Clerk of Superior Court. The Constitutional fﬁcers are elected county wide. The Board of County Commissioners budgets and approves all funding used by the separate Constitutional fﬁcers. 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 C UNTY DEPARTMENT F 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 DEVEL PMENT AUTH RITY F PICKENS C UNTY: 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. 14 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 G VERNMENT-WIDE AND FUND FINANCLAL STATEMENTS The government-wide ﬁnancial statements the statement of net position and the statement of activities) report information 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. Program revenues include 1) charges to customers or applicants who purchase, use, or directly beneﬁt from goods, services, or privileges provided by a given ﬁmction 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 ﬁmd ﬁnancial statements. MEASUREMENT F CUS, BASIS F ACC UNTING, AND FINANCIAL STATEMENT PRESENTATI N 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 ﬁlnd 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. 15 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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 thereaﬁer 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. ther revenues susceptible to accrual are considered available if they are collected within 60 days of the end of the current ﬁscal period for which they are imposed. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, sales tax, franchise taxes, charges for services, and interest associated with the current ﬁscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current ﬁscal period. All other revenue items are considered to be measurable and available only when cash is received by the County. The County reports the following major governmental funds: The General Fund is the County’s primary operating fund. It accounts for all ﬁnancial resources of the general government, except those required to be accounted for in another fund. The SPL ST Capital Projects Fund accounts for funds received from a local 1% sales tax, passed by the 2014 and 2020 Special Purpose Local ption Sales Tax referendum, which is reserved for construction of various capital projects. The Restricted Programs Fund is used to account for multiple court administered state reimbursement grants restricted speciﬁcally for the Judicial Programs. The County reports the following major proprietary funds: The Water Fand accounts for the development, operation, and maintenance of the utility system that provides water services in Pickens County. The Airport Fund accounts for the development, operation, and maintenance of the County airport and its facilities. The Pickens County Airport Authority provides oversight of capital projects and has delegated operations and long—term debt obligations to the County. 16 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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. Custodial ﬁmds account for assets held by the government as an agent for the Tax Commissioner, Clerk of Superior Court, Probate Court, Magistrate Court, and Sheriff. Custodial Funds are accounted for on the full accrual basis of accounting. 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. perating revenues and expenses generally result ﬁom 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. perating expenses for the Water enterprise ﬁmd include the cost of services, administrative expenses, and depreciation on capital assets. The principal operating revenue for the Airport enterprise ﬁmd is the sale of fuel, hanger rental fees, and other miscellaneous charges for services. perating expense for the Airport enterprise fund include the cost of fuel, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this deﬁnition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources ﬁrst, then unrestricted resources as they are needed. 17 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 ASSETS, LMBILITIES AND NET P SITI N R 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 govemment-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 2020 taxes were levied ctober 4, 2020, and were due December 4, 2020. Interest and penalties are assessed on taxes not paid by this date. The taxes are subject to lien 90 days aﬁer the due date. Property taxes levied during 2020 are to fund operations for the County's ﬁscal year beginning January 1, 2020. The County’s property taxes were levied on the assessed values of all real and personal property including mobile homes and motor vehicles located in the County. Inventories and Prepaid Items Inventories, consisting of expendable supplies, not held for resale are valued at cost using the ﬁrst-in/ﬁrst-out (FIF ) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. 18 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Certain payments to vendors reﬂect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund ﬁnancial statements. The costs of governmental fund-type prepaids are recorded as expenditures when consumed rather than when purchased. Bond Premiums and Discounts Premiums and discounts are deferred and amortized over the lives of the bonds and loans on a straight-line basis, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Restricted Assets Certain proceeds of the County’s capital leases or debt issues are classiﬁed as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable lease or debt agreements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (i.e. roads, bridges, sidewalks, culverts, and similar items) are reported in the applicable governmental activities column in the government-Wide ﬁnancial statements. Capital assets are deﬁned by the County as assets With an initial, individual cost of $5,000 and an estimated useful life in excess of three years or an acquisition of land at any cost. Roads, bridges, and culverts are deﬁned by the County as projects with an individual cost of $5,000 or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Roads, bridges, and culverts acquired prior to July 1, 1980 have not been reported. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Assets Years Buildings 25—50 Vehicles 2-15 Building Improvements 1 0-25 Infrastructure 1 0-3 0 Machinery and Equipment 3 -1 5 Land N/A Furniture and Fixtures 5-20 Land improvements 12-1 5 19 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Deferred utﬂows/Inﬂows ofResources In addition to assets, the statement of ﬁnancial position will sometimes report a separate section for deferred outﬂows of resources. This separate ﬁnancial statement element, deferred outﬂows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outﬂow of resources (expense/expenditure) until then. The County has two items that qualify for reporting in this category. These two items consist of the deferred charge in pension expense and deferred outﬂows related to PEB 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 PEB expense represents employer contributions subsequent to measurement date. These contributions will be recognized as PEB expense in the next ﬁscal year. In addition to liabilities, the statement of ﬁnancial position will sometimes report a separate section for deferred inﬂows of resources. This separate ﬁnancial statement element, deferred inﬂows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inﬂow of resources (revenue) until that time. The County has three items that qualify for reporting in this category. These three items consist of unavailable revenue, deferred inﬂows related to pension expense, and deferred inﬂows related to PEB 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 revenue from property taxes. The deferred inﬂows related to pension expense represents differences between expected and actual experience with regard to economic or demographic factors in the measurement of the total pension liability and changes of assumptions about future economic or demographic factors or of other inputs. These deferred inﬂows will be recognized in pension expense using a systematic and rational method over a closed ﬁve—year period, beginning with the current reporting period. The deferred inﬂows related to PEB expense represents differences between expected and actual experience With regard to economic or demographic factors in the measurement of the total PEB liability and changes of assumptions about future economic or demographic factors or of other inputs. These deferred inﬂows Will be recognized in PEB expense using a systematic and rational method over a closed ﬁve-year period, beginning with the current reporting period. 20 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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. A11 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 bligations 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. 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 (the ACCG 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. ther Post-employment Beneﬁts ( PEB) For purposes of measuring the net PEB liability, deferred outﬂows of resources and deferred inﬂows of resources related to PEB, and PEB expense, information about the ﬁduciary net position of the Pickens County ther Postemployment Beneﬁts Plan (the PEB 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. Fand EquityﬂVet Position Fund equity at the governmental ﬁmd ﬁnancial reporting level is classiﬁed as "fund balance." Fund equity for all other reporting is classiﬁed as "net position." 21 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 - 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. - 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. 22 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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. Net Investment in Capital Assets The "Net investment in capital assets" reported on the govemment—wide statement of net position as of December 31, 2020 are as follows: Governmental Business-type Net investment in capital assets Activities Activities Cost of capital assets $ 77,606,976 $ 31,093,924 Less accumulated depreciation (3 1.051.221) (1 1,459,364) Book value 46,555,755 19,634,560 Less capital related debt (3,319,392) (1 1,608,262) - Less capital related accounts payable (43,473) Net investment in capital assets $ 43,192,890 $ 8,026,298 Management Estimates The preparation of ﬁnancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 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. - N TE 2 FUND BALANCE/NET P SITI N The governmental activities statement of net position reports $3,742,494 of restricted net position, of which $172,035 is restricted by enabling legislation. 23 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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. $ 151,108 - Capital outlay projects For unspent funds from LMIG grant, capital leases and other debt. 572,636 SPL ST Fund - Capital outlay projects For funds received from the imposition of the Special Purpose Local ption Sales Tax (SPL ST) restricted by the voter approved referendums. 2,179,448 Restricted Programs — Judicial Programs Used to account for multiple court administered state reimbursement grants adult drug court, mental health court, family drug court, etc.), and CDBG pass through grant funds from Department of Community Affairs. 469,330 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 CGA-36-15. 39,701 - Subtotal Restricted for Judicial Programs 42m - Public Safety Programs - Emergency E911 Telephone Services Fund For funds to operate the E911 center as restricted by the CGA-46-5. 117,070 - Drug Task Force To account for funds received to operate multi- jurisdictional drug enforcement agency that actively pursues all levels of illegal drug activity. 38,999 - Sheriff‘s Special Revenue to account for funds from seizures to be used for law enforcement activities. 158,938 - Subtotal Restricted for Public Safety Programs AM - Housing and Development Programs - Hotel/Motel Tax Fund To account for funds received to promote tourism, conventions, and trade shows. 15,264 Total Restricted Fund Balance 3:742:494 § 24 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 — N TE 3 STEWARDSHIP, C MPLIANCE AND ACC UNTABILITY BUDGETARY INF RMATI N 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 ctober of each year, each department submits a proposed budget to the Board of Commissioners for review. Public hearings are held to discuss the proposed budget and to obtain input from the citizens of the County in December. These hearings are publicized in the local paper at least one week before the ﬁrst hearing, and the budget document is made available for public inspection during this week. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is the department level. Any changes in total departmental expenditures/expenses must be approved by the Board of Commissioners or Budget fﬁcer. 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. A11 annual appropriations lapse at year end. DEFICIT FUND BALANCES There are no funds with deﬁcits. 25 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 - N TE 4 DEP SITS AND INVESTMENTS PRIMARY G VERNMENT 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, 2020, 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. 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. 26 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Credit Risk State statutes authorize the County to invest in obligations of the US. Treasury and of its agencies and instrumentalities; bonds or certiﬁcates of indebtedness of this state or of other states and of its agencies and instrumentalities; certiﬁcates of deposits of banks insured by FDIC; the State of Georgia Local Government Investment Pool; repurchase agreements; bonds, debentures, notes or other evidence of indebtedness of any solvent corporation of the United States government. The County does not have an investment policy that would 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. As of December 31, 2020, 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, 2020, the only assets measured at fair value on recurring basis in periods subsequent to initial recognition are investments. Such investments are classiﬁed within Level 1 or Level 2 of the valuation hierarchy. As of December 31, 2020, the Law Library (a Non-Major Governmental Fund) had the following investments: Investment Maturities (in Years)/FMV Level - Fair Market Value Investment Type Level 1 Less Than 1 Rating Certiﬁcate of Deposit $ 23,629 $ 23,629 N/A Total $ 23,629 $ 23,629 Maximum Investment 100% 27 ---PAGE BREAK--- - - - - - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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. - N TE 5 RECEIVABLES PRIMARY G VERNMENT Receivables as of year-end for the County’s individual major funds and nonmajor governmental funds in the aggregate including the applicable allowances for uncollectible accounts are as follows: Nonmajor General Restricted Governmental Fund SPL ST Programs Funds Receivables: Property Taxes $ 1,949,295 $ $ $ - Accounts 1,244,222 183,885 130,467 - Intergovernmental 13 5.712 598.574 54.010 Total Gross Receivables 3 ,329,229 598,574 237,895 130,467 Less: Allowance for Uncollectibles (72,43 6) Total Net Receivables § 3:2563793 § 5982574 § 237:895 § 1302467 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) $ 1,538,524 $ $ 1,538,524 — Total for governmental funds $ 1,538.52; § § 1.538i524 28 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Property taxes receivable at December 31, 2020, consist of the following: Digest General Year Fund 2020 $ 1,017,236 2019 325,030 2018 212,629 2017 140,833 2016 75,828 2015 57,120 2014 52,986 2013 62,320 2012 2,535 2011 2,778 Total $ 1,949,295 BUSINESS TYPE ACTIVITIES Receivables as of year—end for the County's enterprise funds, including the applicable allowances for uncollectible accounts are as follows: Water Airport Fund Fund Total Receivables: Accounts 55 300,504 $ 6,546 $ 307,050 Total Gross Receivables Less: Allowance for Uncollectibles Total Net Receivables § 300,504 (165$ 283E972 § 6,546 - 6.546 § 307,050 (16.532) 290.518 29 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 DISCRETELY PRESENTED C MP NENT UNITS Receivables as of year-end for the County's component units, including the applicable allowances for uncollectible accounts are as follows: Health wg— Receivables: Accounts $ 38,415 Intergovernmental 24,963 Total Gross Receivables 63,378 Less: Allowance for Uncollectibles - Total Net Receivables § 6333 78 The lease receivable in the County's component units consisted of the following at December 31, 2020: - 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 thereaﬁer, including imputed interest at 5.985%. This lease is secured by the County and matures on December 1, 2034. $ 2,422,000 Less: Current portion 1168,0001 Long—term portion 2:254:000 § At December 31, 2020, scheduled maturities of the lease receivable were the following: 2021 $ 23 8,000 2022 168,000 2023 168,000 2024 168,000 2025 168,000 - 2026 2030 840,000 - 2031 2034 6722000 Total maturities of lease receivable 2,422,000 Less unearned interest income 802,017 1 1 Total net book value of lease receivable $ 1,619,983 30 ---PAGE BREAK--- - - - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 - N TE 6 CAPITAL ASSETS PRIMARY G VERNMENT Capital asset activity for the year ended December 31, 2020, was as follows: Beginning Ending Governmental Activities: Balance Additions Retirements Transfers Balance Non—Depreciable Assets: Ijnd and improvements $ 4,371,996 $ 17,000 $ $ 893,000 $ 5,281,996 , - - Construction in progress 118.253 2,557,630 (2.675.883) - Total non-depreciable capital assets 4.490.249 2.574.630 (1.782.883) 5,281.996 Depreciable Assets: Land improvements 1,013,402 218,038 322,565 1,554,005 - - Buildings and improvements 38,508,551 82,400 1,460,318 40,051,269 - Machinery and equipment 8,517,614 1,257,058 (779,158) 8,995,514 Vehiclas 10,623,138 553,858 11,176,996 - - mﬁastructure 10,517,214 29.982 10,547,194 Total depreciable capital assets 69,179,919 2,141,337 (779,158) 1.782.883 72,324,980 Less Accumulated Depreciation for: - - Land improvements 634,375 39,73 5 674,1 10 - - Buildings and improvements 9,128,256 878,240 10,006,496 — Machinery and equipment 6,361,498 600,881 (685,742) 6,276,637 - - Vehicles 8,167,854 627,332 8,795,186 Infrastructure 4,787,989 510,803 5,298.792 - Total accumulated depreciation 29,079,972 2,656.991 (685,741) 31,051,221 Total depreciable capital assets, net 40,099,947 (515.654) (93 .416) 1.782.883 41,273.759 - Governmental activities capital assets, net $ 441590996 $ 2i058i976 $ (93,416) $ $ 46£5,755 Additions to governmental activities capital assets for the ﬁscal year ending December 31, 2020, consist of the following: Capital utlay $ 4,535,966 Donated Assets 180,000 Total § 4:715:966 Non—depreciable capital assets additions $ 2,574,630 Depreciable capital assets additions 2,141,337 Rounding 1 g g Total § 4:715:966 31 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 535,529 Judicial 973,327 Public Safety 1,127 Public Works 949,451 Public Health and Welfare 37,424 Recreation and Culture 84,061 Housing and Development 76,072 Total depreciation expense—governmental activities § 23656991 BUSINESS TYPE ACTIVITIES Capital asset activity for the year ended December 31, 2020, was as follows: Beginning Ending Balance Additions Retirements Transfers Balance Business—type Activities: Non-Depreciable Assets: - - Land and improvements $ 1,690,594 $ 26,271 $ $ $ 1,716,865 - — Construction in progress 6.159.979 250,466 6.410.445 — - Total non—depreciable capital assets 7,850,573 276,73 7 8,127,310 Depreciable Assets: - — — Land improvements 865,080 865 ,080 - — Infrastructure 18,126,106 192,212 18,318,318 — — - Buildings and improvements 1,842,926 1,842,926 - Machinery and Furniture 1,432,854 138,916 (51,301) 1,520,469 — Vehicles 388.771 93.648 (62.598) 419.821 — Total depreciable capital assets 22,655,737 424.776 (113.899) 22,966,614 Less Accumulated Depreciation for: - - Land improvements 554,117 47,079 601,196 - - Infrastructure 8,444,314 607,499 9,051,813 - - Buildings & Improvements 469,107 86,548 5 5 5 ,655 - Machinery & Furniture 889,479 123,771 (34,903) 978,348 - Vehicles 295.487 39.463 (62.598) 272352 - Total accumulated depreciation 10,652,504 904.3 60 (97.501) 1 1.459 .364 Total depreciable capital assets, net 12,003,233 (479.584) (16398) 11507250 - Business-type activities capitalassets,net §19a8533806 $ :2023847l § 316:398l § §19a634a560 32 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Depreciation expense was charged to ﬁJnctions/programs of the business-type activities as follows: Business-type Activities: Water $ 751,225 Airport 153,135 Total depreciation expense-business type activities § 904:360 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, 2020, 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 Proj ect Expended in Not Authorization To Date Progress bligated Sources Business Type Activities: Grandview Water Treatment Plant $ 1,100,000 $ 273,395 $ $ 826,605 GEFA Loan - - Grandview Water Lines 1,413,000 45,549 1,367,451 GEFA Loan North T-Hanger Area Development 100,700 92,700 8,000 Airport Authority Loan — Airport Improvements 5,923,726 5,923,726 FAA Grant/ DA Bonds - Airport Layout Plans 78,594 75,075 3,519 FAA Grant/State Grant Total Business Type - Activities § 8.616.020 $ 6,410,445 § W 33 ---PAGE BREAK--- DISCRETE Y PRESENTED COMPONENT UNITS Activity for the Health Department for the year ended December 31, 2020, was as follows: Beginning Ending Balance Additions Retirements Balance Governmental Activities: Depreciable Assets: - - Site Improvements $ 74,694 $ $ $ 74,694 — - Machinery and Equipment 52,002 52,002 Furniture & Fixtures 11,030 11,030 - — - — Vehicles 20.011 20.01 1 - - Total depreciable capital assets 157,737 157.737 ess Accumulated Depreciation for: - Site Improvements 23,019 5,175 28,194 - Machinery and Equipment 33,890 6,297 40,187 Furniture and Fixtures 11,030 11,030 — - - - Vehicles 20,01 1 20,01 1 — Total accumulated depreciation 87.950 11.472 99.422 - Capital Assets, net $ 69.787 $ (11.47;) $ § 589% NOTE 7 - SHORT TERM DEBT The County paid off a tax anticipitation note for operating purposes of $4,563,395 at a ﬁnancial institution. The note carried an interest rate of 2.99% and matured on December 31, 2020. As of December 31, 2020, the principal was paid in full. The short term borrowings interest incurred and expensed for the period ended December 31, 2020 was $63,395. Short-term liability activity for the year ended December 31, 2020, was as follows: Governmental Activities Beginning Ending Balance Additions Reductions Balance - - Tax anticipation note $ $ 4,563,395 $ (4,563,395) $ - Total short-term iabilities § § 4&5633395 § 14:563i395: § 34 ---PAGE BREAK--- - - - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 - N TE 8 L NG TERM DEBT Long-term liability activity for the year ended December 31, 2020, was as follows: Beginning Ending Due Within Due After Balance Additions Reductions Balance ne Year ne Year Governmental Activities: Notes from direct borrowings $ 1,030,000 $ 2,175,000 $ (190,290) $ 3,014,710 $ 293,879 $ 2,720,831 Capital leases 319,143 (14,461) 304,682 104,246 200,436 - - - Net PEB liability 903,337 289,636 1,192,973 1,192,973 Net pension liability 9,754,257 (200,408) 9,553,849 9,553,849 - — Landﬁll postclosure 450,000 450,000 30,000 420,000 Compensated absences 347,492 37.124 384.616 269,231 115.385 Govemmentalactivitieslong-termliabilities [PHONE REDACTED] $ 2:464:636 $ 5368:035! 14i900!830 $ 6973356 $ 14:203E474 é § Business—type Activities: Bonds payable $ 10,511,938 $ 394,808 $ (1,037,391) $ 9,869,355 $ 987,596 $ 8,881,759 Notes from direct borrowings 1,568,477 99,239 1,667,716 1,667,716 — Capital leases 71,190 71,190 21,258 49,932 Compensated absences 8.370 - 6.201 14,571 10200 4.371 Business—type activitim long—tenn liabilities $ 12!088l785 $ 394,808 $ (860,761) $ 11i6223832 $ 1i019!054 $ 10i603a778 G VERNMENTAL ACTIVITIES Notes from Direct Borrowings The County has entered into an agreement with the Association of County Commissioners of Georgia to ﬁnance the purchase of land to be used for a facility to build, maintain, and repair roads, streets, sidewalks, and bridges in the original amount of $1,030,000 with an outstanding balance of $937,402 and secured with collateral of the Property and Maintenance Shop Building. The County may exercise a prepayment option to terminate this agreement and change the timing of repayment of outstanding amounts. This note has semi-annual payments ranging of $58,031, with an interest rate of 3.33% and matures in 2029. The County has entered into an agreement with the Association of County Commissioners of Georgia to ﬁnance the purchase of land to be used for a recycling facility in the original amount of $2,175,000 with an outstanding balance of $2,077,308. The County may exercise a prepayment option to terminate this agreement and change the timing of repayment of outstanding amounts. This note has semi-annual payments ranging of $121,607, with an interest rate of 2.175% and matures in 2030. 35 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The annual requirements to amortize notes from direct borrowings outstanding as of December 31, 2020, are as follows: December 31, Principal Interest Total 2021 $ 293,879 $ 65,397 $ 359,276 2022 300,454 58,822 359,276 2023 307,176 52,100 359,276 2024 314,049 45,227 359,276 2025 321,076 38,200 359,276 2026—2030 1,478,076 80,636 1,558,712 Total § 320142710 § 340:3 82 §3a355l092 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, $270,814 was included in depreciation expense. The balance of these leases at December 31, 2020 is $304,682 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. wnership 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 $ 554,674 Vehicles 1,069,130 Less: Accumulated Depreciation (690,1 101 Total § 933:694 36 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The ﬁlture minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2020, were as follows: Governmental Year Ending December 31, Activities 2021 $ 1 1 1,165 2022 92,076 2023 92,076 2024 23,019 Total minimum lease payments 3 1 8,336 - Less: amount representing interest (1.93% 2.94%) (13,654) Present value of minimum lease payments § 3043682 BUSINESS-TYPE ACTIVITIES Bonds Payable During 2015, the County issued $8,090,000 of revenue bonds (2015 Reﬁlnding Series) for a full refunding of the Authority’s Series 1995A, 1995B, and 2005 revenue bonds, which had been issued for the acquisition and construction of waterline infrastructure and secured with collateral of the water service infrastructure. The reﬁlnding 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, 2020, the outstanding balance is $5,248,000. 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, 2020, the bonds have an outstanding balance of $2,077,308, 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, 2020, the bonds have an outstanding balance of $1,239,022, with an interest rate of Bond payments are due in installments. The bonds mature in 2035. The County's outstanding bonds related to the Pickens County Airport are secured by a pledge by the Development Authority and contain a provision that if the County is unable to make its payment, outstanding amounts are due immediately. 37 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The annual requirements to amortize bonds payable outstanding as of December 31, 2020, are as follows: December 31, Principal Interest Total 2021 $ 987,596 $ 289,702 $ 1,277,298 2022 915,414 270,794 1,186,208 2023 941,463 243,912 1,185,375 2024 969,690 216,532 1,186,222 2025 998,286 187,523 1,185,809 2026—2030 4,529,024 480,099 5,009,123 2031-2035 527,882 75,770 603,652 Total 9:869a355 127642332 11:6332687 § § § Notes from Direct Borrowings In 2018, the County entered into promissory notes with the Georgia Environmental Finance Authority the original amounts of $4,013,000, with interest rates from 1.89% to 2.39%, to ﬁnance the construction of water distribution lines and related appurtenances and constructing a new 0.325 MGD water treatment plant, a 100,000 gallon ground storage tank, and the purchase of water rights from the Grandview Lake Company and secured with collateral of the water Withdrawal permits and water treatment plant. As of December 31, 2020, the County had two such loan agreements with outstanding balances of $1,667,716. The County will make interest- only payments until all draws on the notes are complete and the commencement of the Amortization Period begins. At the completion of draws, the note payments will be due in installments. The notes will mature 20 years from the commencement date. are The County's outstanding notes from direct borrowings related to business-type activities secured by the County's full faith and credit and revenue—raising power (including its taxing power). The outstanding notes from direct borrowings related to business—type activities contain a provision that if the County is unable to make its payment, outstanding amounts are due immediately. The County's outstanding notes from direct borrowings do not contain a subj ective acceleration clause. 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, $1,638 was included in depreciation expense. The balance of these leases at December 31, 2020 is $71,190 for busine'ss-type activities. 38 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The County leases certain equipment under non-cancelable capital leases. The leases relate to equipment for water operations. wnership 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 $ 114,766 Less: Accumulated Depreciation 18,0481 1 Total § 96,71 8 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2020, were as follows: Business-type Year Ending December 31, Activities 2021 $ 22,947 2022 22,947 2023 22,947 2024 5,737 Total minimum lease payments 74,578 Less: amount representing interest (2.67%) (3,388} Present value of minimum lease payments § 71:190 DISCRETELY PRESENTED C MP NENT UNITS Long-term debt activity for the Health Department for the year ended December 31, 2020, was as follows: Beginning Ending Due Within Due After Governmental Activities Balance Additions Reductions Balance ne Year ne Year Compensated absences $ 17,696 $ 6,936 $ (8,848) $ 15,784 $ $ 15,784 - - — Net PEB Liability 245,002 (117,891) 127,111 127,111 - - Net PenSion Liability 402,100 30,856 432.956 432.956 - T tal long-tefm Liabilities $ 664.798 $ 68.648 § (8.848) $ 575.851 § $ 575.851 Long-term debt activity for the Industrial Development Authority for the year ended December 31, 2020, was as follows: Beginning Ending Due Within Due After Business-type Activities Balance Additions Reductions Balance ne Year ne Year - Bonds payable $ 1,654,139 $ $ (75,299) $ 1,578,840 $ 79,062 $ 1,499,778 - Total long—term liabilities $ 1,654,139 $ $ $ 1:578:840 § 79:062 § 1:499:778 39 ---PAGE BREAK--- - - - - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 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, 2020 is 3.20%. As of December 31, 2020, the outstanding balance is $1,578,840. This bond will mature in May 2035. The annual requirements to amortize long-term debt as of December 31, 2020, are as follows: Year Ending December 31, Principal Interest Total 2021 $ 79,062 $ 66,311 $ 145,373 2022 82,787 62,991 145,778 2023 86,688 59,514 146,202 2024 90,600 59,514 150,114 2025 95,042 59,514 154,556 2026-2030 546,625 239,431 786,056 2031-2035 598.036 58.228 656.264 Total £78,840 § 605.503 ﬂ.184h343 - N TE 9 INTERFUND BALANCES AND ACTIVITY The composition of interfund balances as of December 31, 2020, is as follows: Due To Due From ther Nonmaj or Total Due General Restricted Governmental from ther Fund SPL ST Programs Funds Water Fund Airport Fund Funds - General Fund $ $ 310,761 $ 63,894 $ 4,256 $ 2,102,234 $ 880,519 $ 3,361,664 Nonmaj or 34,621 34,621 Governmental Funds Water Fund 122,544 122,544 - - - — . Total Due to ther Funds $ 157,165 $ 310.761 $ 63,894 $ § 2:102:234 § 880:519 § 33518i829 These balances resulted from 1) the time lag between the dates that interﬁmd 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. 40 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Interfund transfers as of the year ended December 31, 2020, are as follows: Transfers ut Transfers in ther Nonmajor General Restricted Governmental Airport Total Fund mgrams Funds Water Fund Fund Transfers ut - - — General Fund $ $ 81,190 $ 601,139 $ $ $ 682,329 — SPL ST 192,212 133,788 326,000 - — - Restricted Programs 46,022 46,022 - Total Transfers in $ 46,0123= $ 81.190 $ 601.139 $ 192:212 $ 133,788 $ 1=054a351 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. — N TE 10 RETIREMENT PLANS DEFINED BENEFIT PENSI N PLAN Plan Description The County contributes to the Association of County Commissioners of Georgia (ACCG) Deﬁned Beneﬁt Plan (the "P1an"), which is a deﬁned beneﬁt pension plan. 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. 41 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 A11 full-time employees are eligible to participate in the Plan after completing three years of service. Beneﬁts vest aﬁer ﬁve years of service. Participants become eligible to retire with unreduced beneﬁts at age 65 with three years of plan participation. Upon eligibility to retire, participants are entitled to an annual beneﬁt in the amount of 2% of annual average compensation plus $36 for each year of service payable as a life 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, 2019, (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 80 Terminated plan participants entitled to but not yet receiving beneﬁts 129 Active employees participating in the Plan 163 Total number of Plan participants 372 Covered compensation for active participants $ 7,261,035 Contributions as a percentage of covered payroll 17.06% Contributions The County is required to contribute at an actuarially determined rate. The contribution amount is determined using actuarial methods and assumptions approved by the ACCG Plan trustees and must satisfy the minimum contribution requirement contained in the State of Georgia Statutes. Section 47-20 of the Georgia Code sets forth the funding standards for state and local governmental pension plans. Net Pension Liability The County's net pension liability was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total pension liability as of the January 1, 2019 valuation was determined by an actuarial valuation using the following actuarial assumptions, applied to all periods included in the measurement: Inﬂation 2.00% Salary Increases 2.50% 5.50%, average, including inﬂation - 42 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Investment rate of return 7.00%, 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, 2019 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: 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 1 5 .00 0.47% Multi cap 5.00 0.51% Global allocation 5.00 0.58% T TAL 100.00% * Rates shown are net of inﬂation The discount rate used to measure the total pension liability was 7.00%. The projection of cash ﬂows used to determine the discount rate assumed that plan member contributions Will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's ﬁduciary net position was projected to be available to make all projected future beneﬁt payments of current plan members. Therefore, the long—term expected rate of return on pension plan investments was applied to all periods of projected beneﬁt payments to determine the total pension liability. 43 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Change in the Net Pension Liability Pension Fiduciary Net Net Pension Liability Position Liability Balances at December 31, 2019 $ 18,458,508 $ 8,704,251 $ 9,754,257 Changes for the year: - Plan Change - Service cost 645,330 645,330 - Interest 1,268,986 1,268,986 Difference between expected and actual - experience 197,356 197 ,356 - Assumption Change 880,753 880,753 - Contribution-employer 1,23 8,819 (1,23 8,819) — Contribution-employee 375,521 (3 75,521) - Net investment income 1,725,926 (1,725,926) - Beneﬁt payments (660,275) (660,275) - Administrative expense (54,658) 54,658 - ther charges (92,775) 92,775 Net changes 2,332,150 2,532,558 (200,408) Balances at December 31, 2020* $ 20,790,658 $ 11,236,809 $ 9,553,849 * Measurement date of December 31, 2019 The following presents the County's net pension liability calculated using the discount rate of 7.00%, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage point higher (8.00%) than the current rate: 1 % Decrease Current Discount 1% Increase (6.00%) Rate (7.00%) (8.00%) County's net pension liability $ 12,584,728 $ 9,5532849 $ 7,053,478 44 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Pension Expense and Deferred utﬂows ofResources and Deferred Inﬂows ofResources Related to Pensions For the year ended December 31, 2020, the County recognized pension expense of $2,042,438. The required contribution for the year ended December 31, 2020 was $1,137,984. At December 31, 2020, the County reported deferred outﬂows of resources and deferred inﬂows of resources related to pensions from the following sources: Deferred Deferred utﬂows of Inﬂows of Resources Resources Differences between expected and actual experience $ 532,376 $ - Changes of assumptions Net difference between projected and actual earnings on pension 1,320,170 — plan investments T TAL - $ 1,852,546 $ - - 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, 2021 $ 93 8,567 2022 762,480 2023 368,584 2024 (217,085) - Thereafter $ 1,852,546 45 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 DEFINED C NTRIBUTI N PLAN Plan Description The County contributes to the Association of County Commissioners of Georgia (ACCG) Deﬁned Contribution Plan for Pickens County Employees (Plan a public employee retirement system that acts as a common investment and administrative agent for participating counties in Georgia. Plan A was established by the County in January 2016 pursuant to Section 401(a) of the Internal Revenue Code of 1986 as a Money—Purchase Plan and Trust. At the inception of Plan A, the Deﬁned Contribution Plan excepted all employees with an employment commencement date prior to January 1, 2016. Plan A issues a stand alone report. It may be obtained from: Pension Services Company, 1100 Circle 75 Parkway, Suite 300, Atlanta, Georgia 30339. All full-time County employees are eligible to participate in the Plan A the ﬁrst day of the ﬁrst pay period beginning on or the date the participant ﬁrst meets the eligibility requirements. Beneﬁts vest aﬁer ﬁve years of service. The County contributes 50% on amounts participants contribute to the 457(b) Eligible Deferred Compensation Plan. The maximum matching contribution shall be no more than 2.5% of compensation. A participant becomes eligible to retire at the normal retirement age of 65. Any participant leaving the plan before vesting “forfeits” the County’s matching contribution to Plan A. Funding Policy Contributions totaling $177,407 ($51,024 employer and $133,756 employee) were made in accordance with the Plan A guidelines and the designations by County Employees. DEFERRED C MPENSATI N 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. 46 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 THER P ST-EMPL YMENT BENEFITS Plan Description The Pickens County Retiree Insurance Program (the " PEB Plan") is a single-employer deﬁned beneﬁt post-employment health care plan. Participant counts as of January 1, 2020, the most recent valuation date, are shown below. The Board of Commissioners have the authon'ty under which the obligations of the plan members and the employer are established or may be amended. The PEB 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, 2020, (the most recent actuarial valuation date) and covered compensation (based on covered earnings for the preceding year) are shown below: Inactive employees or beneﬁcian'es currently receiving beneﬁts 2 - Inactive employees entitled to but not yet receiving beneﬁts Active employees 24 Total 26 Covered—employee payroll for active participants $ 1,328,504 Contn'butions as a percentage of its covered-employee payroll 2.19 % Contributions Eligible retirees and former employees are offered the same health coverage 'as active employees. Retirees contn'bute an average of $533 per month towards the actuarially calculated rates. The County contributes the remainder of the rates. The PEB Plan is funded on a pay-as you-go basis. For ﬁscal year 2020, the County contributed $29,065 to the plan. Net PEB Liability The County's net PEB liability is reported herein as of January 1, 2020 for the employer ﬁscal year and reporting period ending December 31, 2020. The values shown for this ﬁscal year and reporting period are based on a measurement date of January 1, 2020. The measurement of the total PEB liability is based on a valuation date of January 1, 2020. 47 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The total PEB liability in the January 1, 2020 actuarial valuation was determined using the following key actuarial assumptions, applied to all periods included in the measurement: Inﬂation 3.00% Wage inﬂation 4.50% — Salary increases, inc wage inﬂation 4.50% 6.50% Municipal Bond Index Rate Prior measurement date 4.10% Measurement date 2.74% Health Care cost trends Pre—Medicare 7.00% for 2020 decreasing to an ultimate rate of 4.50% by 2030 Mortality: Pub-2010 GE (50%) and PS (50%) Amount- Weighted, projected with Scale AA to 2020 Actuarial Cost Method: Entry Age Normal The discount rate has been set to equal to 2.74% and represents the Municipal G AA 20-year yield curve rate as of January 1, 2020. The actuarial assumptions used were based on the pension valuation prepared by GEBCorp as of December 31, 2019. The employer contributions required to support the beneﬁts of the PEB Plan are determined following a level funding approach, and consist of a normal contribution and an actuarial accrued liability contribution. 48 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 Change in the Net PEB Liability PEB Fiduciary Net Net PEB Liability Position Liability - Balances at December 31, 2019 $ 903,337 $ $ 903,337 Changes for the year: - Service cost 22,883 22,883 - Interest 36,447 36,447 Difference between expected and actual - experience 147,839 147,839 - Contribution-employer 12,165 (12,165) - Assumption Change 1 1 1,532 1 1 1,532 - Beneﬁt payments (12,165) (12,165) - Implicit subsidy credit (16,900) (16,900) - ther charges — Net changes 289,636 289,636 - Balances at December 31, 2020* $ 1,192,973 $ $ 1,192,973 *Measurement date is as of January 1, 2019 The following presents the County's net PEB liability of the employer as of the measurement date calculated using the discount rate of 2.74%, as well as what the County's net PEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower 1.74%) or 1 percentage-point higher (3.74%) than the current rate: 1 % Decrease Current Discount 1% Increase (1 .74%) Rate (2.74%) (3.74%) County's net PEB liability $ 1,290,428 $ 1,192,973 $ 1,100,585 The following presents the County's net PEB liability of the employer as of the measurement date calculated using the Pre-Medicare trend rate of 7.00%, as well as what the County's net PEB liability would be if it were calculated using a trend rate that is l-percentage-point lower (6.00%) or l-percentage-point higher (8.00%) than the current rate: 1 % Decrease Current Trend 1% Increase (6.00%) Rate (7.00%) (8.00%) County's net PEB liability 35 1,072,553 $ 1,192,973 $ 1,330,380 49 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 PEB Expense and Deferred utﬂows ofResources and Deferred Inﬂows ofResources Related to PEB For the year ended December 31, 2020, under GASB 75 the County's PEB expense is $100,373. At December 31, 2020, the County reported deferred outﬂows of resources and deferred inﬂows of resources related to PEB from the following sources: Deferred Deferred utﬂows of Inﬂows of Resources Resources - Differences between expected and actual experience $ 124,030 $ — Changes of assumptions 72,244 - County contributions subsequent to the measurement date 64,128 - T TAL $ 260,402 $ County contributions of $64,128 subsequent to the measurement date are reported as deferred outﬂows of resources and Will be recognized as a reduction of the net pension liability in the ﬁscal year ending December 31, 2021. ther deferred outﬂows of resources and deferred inﬂows of resources related to PEB will be recognized in PEB expense as follows: Year Ended December 31, 2021 $ 41,043 2022 41,043 2023 39,533 2024 37,349 2025 37,306 - Thereafter - N TE 11 C NTINGENT LIABILITIES AND C MMITMENTS 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. 50 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The County is a defendant in several lawsuits. Management intends to contest these open cases vigorously. The County's legal counsel has stated that the outcome of these lawsuits is not presently determinable. N TE 12 - RISK MANAGEMENT The County is exposed to various risks of losses related to torts, thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The following are ways the County handles these risks: W RKERS’ C MPENSATI N The County participates in the Association County Commissioners of Georgia (ACCG) Group Self Insurance Workers' Compensation Fund (GSIWCF), a self-insured pool cooperative arrangement among its members to ﬁnance workers' compensation coverage. The fund is owned by its members and is managed by a seven member Board of Trustees who are representatives from participating counties. The ACCG—GSIWCF operates under the authority of .C.G.A. 34 9—150 et seq. and the Georgia Insurance Commissioner's fﬁce. The members of ACCG—Group Self Insurance Workers' Compensation Fund are assessable if the losses that ACCG must pay exceed the assets of the pool. At December 31, 2020, 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 contn'butions and assessments to cooperate with the pools’ agents and attorneys, to follow loss reduction procedures established by the ﬁmds 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. 51 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 THER The County also purchases combined automobile, crime, liability, and property insurance coverage from neBeacon Government Risks. The following is a summary of coverage at December 31, 2020: Property Losses Comprehensive General Liability 3,000,000 1,000,000 aggregate per occurrence 3,000,000 aggregate Automobile Liability Law Enforcement Liability 66669969996699% 2,000,000 1,000,000 per occurrence per occurrence 3,000,000 aggregate Excess Liability 1,000,000 per occurrence Crime Coverage (theﬁ/fraud) 3,000,000 aggregate The County has no outstanding claims in excess of coverage for which a liability should be recorded as of December 31, 2020. Settled claims in the past three years have not exceeded the coverage. The County is or may be a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the County’s management that resolution of these matters will not have a material adverse effect on the ﬁnancial condition of the County. N TE 13 - J INT VENTURE n January 4, 1995, Pickens County entered into an agreement with Bartow County, Georgia, establishing a Joint Development Authority. The County Commissioner of Pickens County and the County Commissioner of Bartow County signed an agreement whereby the Joint Development Authority of Bartow County and Pickens County was established for the promotion of business development in each county as well as expanding 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, 2020, 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 2020. As a result, no balance sheet or income statement is presented in the audited ﬁnancial statements of Pickens County at December 31, 2020. 52 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 N TE 14 - N RTHWEST GE RGIA REGI NAL C MMISSI N 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, 2020, the County paid $27,883 in such dues. Membership in the is required by the fﬁcial Code of Georgia Annotated ( CGA) 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 Flaming Act of 1989 ( .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. ( .C.G.A. 50-8-39.1) Separate ﬁnancial statements for the can be obtained from P . Box 1798, Rome, Georgia 30162. - N TE 15 N RTHWEST GE RGLA REGI NAL WATER RES URCES 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 $2,216 for the year ended December 31, 2020. Separate ﬁnancial statements can be obtained from Northwest Georgia Regional Water Resources Partnership, P. . Box 1793, Rome, Georgia 30162. 53 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 N TE 16 - LANDFILL CL SURE AND P STCL SURE CARE C ST 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, 2020, the County has recorded a liability for its solid waste landﬁll of $420,000, which represents the estimated closure and postclosure costs based on 100% of landﬁll capacity used to date. All estimated liability for these costs has been recognized since the landﬁll is no longer used. These amounts are based on what it would cost to perform all closure and postclosure care in 2020. 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, 2020, based on requirements issued by the EPA. - N TE 17 SIGNIFICANT ESTIMATES As discussed in Note 1, estimates are used in the preparation of these ﬁnancial statements. Four of the estimates qualify as signiﬁcant estimates in that it is reasonably possible that the estimates will change in the near term due to one or more future conﬁrming events and this change will have a material effect on the ﬁnancial statements. These estimates are as follows: The liability for landﬁll closure and postclosure care cost is based on estimates provided by the County’s engineering consultants and reduced each year by expenses related to the closure and postclosure of the landﬁll. These estimates are based on what it would cost to perform closure and postclosure care currently. Actual costs may change due to higher inﬂation, changes in technology, or changes in regulations. The estimate for accumulated depreciation on capital assets. This estimate is based on the original or estimated cost of the assets, depreciated over the estimated useful lives using the straight line method and composite method. 54 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 The estimate for allowance for doubtful accounts relating to Pickens County EMS accounts receivable qualiﬁes as a signiﬁcant estimate. The estimate is calculated based on the previous year's collection percentage of accounts greater than one year old. The amount reported as the estimated amounts for the net pension liability, the other post- employment beneﬁts ( PEB) liability, and related deferred inﬂows and outﬂows of resources qualify as signiﬁcant estimates and are based on actuarial studies and projections. N TE 18 - H TEL/M TEL TAX During the year ended December 31, 2020, the County had receipts of $101,184 and spent $82,344 to promote tourism, conventions, and trade shows. The total expenditures represent 81% of the tax receipts to be expended for these purposes under CGA 48-13-51. The County has complied with the requirements of this law. - N TE 19 C NTINGENCIES In January 2020, the World Health rganization declared the outbreak of a novel coronavirus (C VID-19) as a "Public Health Emergency of International Concern," which continues to spread throughout the world and has adversely impacted global commercial activity and contributed to signiﬁcant declines and volatility in ﬁnancial markets. The coronavirus outbreak and government responses are creating disruption in global supply chains and adversely impacted many industries. The outbreak could have a continues material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and ﬂuidity of this situation precludes any predication as to the ultimate material adverse impact of the coronavirus outbreak. Nevertheless, the outbreak presents uncertainty and risk with respect to the County, its performance, and its ﬁnancial results. n March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was enacted. The County received $1,454,637 as of December 31, 2020. These funds are reimbursements to the County for expenditures related to public safety and various items during the C VID-l9 pandemic. - N TE 20 CHANGE IN ACC UNTING PRINCIPLE In conformity with GAAP, as set forth in Statement No. 84 of the Governmental Accounting Standards Board, "Fiduciary Activities," December 31, 2019 ﬁduciary net position has been restated for the effects of recording liabilities and ﬁduciary net position in the custodial funds, known as agency funds under prior standards. 55 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA N TES T FINANCIAL STATEMENTS December 31, 2020 This restatement affected the beginning ﬁduciary net position in the custodial funds as follows: CLERK F TAX SUPERI R PR BATE MAGISTRATE C MMISSI NER C URT C URT C URT SHERIFF T TAL 20 19 net position, as previously reported Effect of GASB 84 on the statement of net position 340,056 364,612 13,977 225,914 31,305 975,864 2019 net P0siti°n=as § 340.056 § 364.61; $ 13.977 § 225.914 § 31,_305 § 975.864 restated - N TE 21 SUBSE UENT EVENTS n February 3, 2021, the County entered into an agreement with the Development Authority to issue bonds to ﬁnance the construction of airport T-hangers (Airport Project) in the amount of $5,800,000. The County will agree, to the extent necessary in the event the Development Authority's funds are insufﬁcient to pay the bond, to levy a development tax to enable the Authority to ﬁnance the Airport Project. The bonds have a variable interest rate and mature in 2041. 56 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F THE NET PENSI N LIABILITY - ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2020 “Unaudited" For the Year Ended December 31, 2020 2019 2018 2017 2016 2015 Net pension liability $ 9,553,849 $ 9,754,257 $ 7,091,043 $ 7,113,681 $ 3,218,002 $ 2,670,675 Covered payroll $ 6,813,847 $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 $ 7,234,670 Net pension liability as a percentage of its covered payroll 140.21% 144.27% 105.32% 113.61% 49.85% 36.91% Plan ﬁduciary net position as a percentage of the total pension liability 54.00% 47.20% 54.20% 48.20% 62.70% 66.00% N TE: Schedule is intended to show information for the last 1 0 ﬁscal years. Additional years will be displayed as they become available. 57 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F C NTRIBUTI NS - ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2020 “Unaudited" For the Year Ended December 31, 2020 2019 2018 2017 2016 2015 2014 2013 2012 201 1 Contractuallyrequired contribution $ 1,137,984 $ 986,766 $ 865,930 $ 726,960 $ 556,622 $ 565,792 $ 547,417 $ 519,277 $ 481,354 $ 479,261 Contributions in relation to the contractually required contribution 1,238,819 1,077,733 990,265 866,021 576,852 604,422 551,249 519,277 481,354 447,823 Contributiondeficiency(excess) $ 11002835! $ 190967! $1124=3351 35 (1392061! $ {202230} $ $382630! $ £32832! $ - $ - $ 311438 County'scoveredpayroll $ 7,261,035 $6,813,847 $6,761,050 $6,732,730 $6,261,763 $6,455,121 $7,234,670 $7,126,832 $6,713,647 $6,852,406 Contributions as a percentage of covered payroll 17.06% 15.82% 14.65% 12.86% 9.21% 9.36% 7.62% 7.29% 7.17% 6.54% N TE: In 2015, the County implemented GASB 67 & 68. 58 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F N TES T REQUIRED SUPPLEMENTARY INF RMATI N ACCG DEFINED BENEFIT PLAN For the Year Ended December 31, 2020 “Unaudited" Method and Assumptions Used in Calculations of Actuarially Determined Contributions The actuarially detennined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the ﬁscal year in which donations are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for the year ended December 31, 2020 reported in that schedule: Valuation Date January 1, 2019 Actuarial Cost Method Entry Age Normal Amortization Method Level percentage of payroll, open Remaining Amortization period 30 years Asset Valuation method Five-year smoothed market Inﬂation Rate 2.00% Salary Increases 4.00% 6.50%, including inﬂation - Investment rate of return 7.00%, net of pension plan investment expense, including inﬂation 59 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F CHANGES IN THE NET PEB LIABILITY AND RELATED RATI S HEALTH CARE PLAN F PICKENS C UNTY, GE RGIA For the Year Ended December 31, 2020 “Unaudited" Fiscal Year Ending December 31, 2020 2019 2018 Total PEB liability Service cost $ 22,883 $ 25,288 22,750 Interest 36,447 32,082 34,339 Differences between expected and actual experience Changes in assumptions Beneﬁt payments Implicit subsidy credit Net changes in total PEB liability 147,839 111,532 (12,165) (16.900) 289,636 (3,444) (50,730) (36,498) (27.900) (61,202) 7,844 26,958 (44,902) (26,000) 20,989 - Total PEB liability beginning - Total PEB liability ending 903,337 $ 1,192,973 964,539 $ 903,337 943,550 964,539 Plan ﬁduciary net position Contributions - employer Beneﬁt payments, including refunding of employee contributions $ 12,165 (12,165) $ 36,498 (36,498) 44,902 (44,902) Net change is plan ﬁduciary net position - Plan ﬁduciary net position beginning - Plan ﬁduciary net position ending $ - $ - — - Net PEB liability ending $ 1,192,973 $ 903,337 964,539 Plan ﬁduciary net position as a percentage of the total PEB liability 0.00% 0.00% 0.00% Covered-employee payroll $ 1,328,504 $ 1,239,011 1,239,011 Net PEB liability as a percentage of covered-employee payroll 89.80% 72.91% 77.85% N TE: Schedule is intended to show information for the last I 0 ﬁscal years. Additional years will be displayed as they become available. 60 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F EMPL YER C NTRIBUTI NS HEALTH CARE PLAN F PICKENS C UNTY, GE RGIA For the Year Ended December 31, 2020 “Unaudited" Fiscal Year Ending December 31, 2020 2019 2018 Actuarially Determined Contn'bution $ 12,165 $ 36,498 $ 44,902 Contributions in relation to the Actuarially Determined Contribution 12.165 36.498 44.902 - - - Contribution deﬁciency (excess) $ $ $ Expected covered-employee payroll $ 1,328,504 $ 1,239,01 1 $ 1,239,01 1 Contributions as a percentage of covered—employee payroll 0.92% 2.95% 3.62% N TE: Schedule is intended to show information for the last 1 0ﬁscal years. Additional years will be displayed as they become available. 61 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA REQUIRED SUPPLEMENTARY INF RMATI N SCHEDULE F N TES T REQUIRED SUPPLEMENTARY INF RMATI N HEALTH CARE PLAN F PICKENS C UNTY, GE RGIA For the Year Ended December 31, 2020 “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 contn'butions. 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 C UNTY, GE RGIA BUDGETARY C MPARIS N SCHEDULE GENERAL FUND For the Year Ended December 31, 2020 (Required Supplementary Information) FUND BALANCE, Beginning of year RES URCES (INFL WS) Taxes Licenses and permits Intergovemmental Fines and forfeitures Charges for services Contributions and donations Investment income Miscellaneous Sale of county property Capital lease proceeds Transfers in Total Resources (Inﬂows) AM UNTS AVAILABLE F R APPR PRIATI N CHARGES T0 APPR PRIATI NS ( UTFL WS) Current Expenditures General Government Board of commissioners General administration County clerk Elections Finance Law Human resources Tax commissioner Tax assessor Buildings Agencies Total General Government Judicial Judicial Administration Superior court Clerk of Superior court Disu'ict attorney Magistrate court Probate coun Juvenile court Board of equalization Public defender Total Judicial Public Safety Sheritf Jail operation Court services Fire Coroner/Medical Examiner E-911/Communications center School resource oﬁicers Emergency Management Agency Animal control Total Public Safety BUDGET AM UNTS RIGINAL FINAL $ 8,870,997 $ 8,870,997 19,923,000 19,923,000 475,600 475,600 1,888,300 3,424,048 287,800 287,800 3,524,800 3,659,800 2,000 2,000 10,100 10,100 66,500 327,599 — 63,419 310,000 2,563,234 51,039 51,039 26,539,139 3&781639 35,410,136 39,658,636 176,883 176,883 882,605 1,225,077 128,775 128,775 404,821 404,821 386,055 421,030 180,000 180,000 134,601 145,915 683,718 683,718 576,092 576,092 539,453 539,453 28,000 2&000 4,121,003 4,509,754 243,014 243,014 262,586 262,586 620,121 745,121 596,628 596,628 480,664 480,664 472,575 472,575 414,609 414,609 16,658 16,658 671,023 671,023 3,777,878 3,902,878 4,165,298 4,292,989 2,688,879 2,777,523 192,430 192,430 4,596,522 4,883,264 53,275 53,275 613,872 613,872 524,235 539,306 215,331 217,484 353,228 353,228 13.403.070 13,923,371 VARIANCE WITH FINAL BUDGET P SITIVE ACTUAL (NEGATIVE) - 8.870.997 $ 21,273,902 1,350,902 547,158 71,558 3,490,701 66,653 188,625 (99,175) 2,924,219 (735,581) 2,114 114 8,385 (1,715) 480,451 152,852 68,102 4,683 2,523,234 (40,000) 46.022 (5,017) 31,552,913 765,274 40423910 765,274 171,841 5,042 955,275 269,802 125,340 3,435 358,308 46,513 411,014 10,016 105,801 74,199 139,919 5,996 674,438 9,280 566,456 9,636 488,816 50,637 27,883 117 4,025,091 484,673 226,668 16,346 196,992 65,594 734,968 10,153 596,213 415 385,864 94,800 426,491 46,084 399,668 14,941 11,542 5,116 632,274 38,749 3,610,680 292,198 4,292,511 478 2,648,798 128,725 152,251 40,179 4,367,680 515,584 49,540 3,735 597,139 16,733 538,405 901 204,171 13,313 319,714 33,514 13,170,209 753,162 63 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA BUDGETARY C MPARIS N SCHEDULE GENERAL FUND For the Year Ended December 31, 2020 (Required Supplementary Information) VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) C NTINUED Public Works Roadways and walkways 2,437,024 2,778,814 2,631,081 147,733 Solid waste and recycling 579,516 3,221,415 3,220,532 883 Maintenance and shop 149 315 228 715 228 619 96 Total Public Works 3,165,855 6,228,944 6,080,232 148,712 Public Health and Welfare Health department 2,750 2,750 817 1,933 Public health and welfare 119,678 119,678 118,232 1,446 Senior citizens center 24,300 24,300 22,631 1,669 Transportation services 140,153 140,153 9,274 130,879 Total Public Health and Welfare 286,881 286 881 150,954 135,927 Recreation and Culture Parks and recreation 718,038 718,038 666,348 51,690 Library 358,237 358,237 357J237 1,000 Total Recreation and Culture 1,076,275 1,076,275 1.023.585 52,690 Housing and development Extention ofﬁce 73,745 73,745 41,169 32,576 Planning and zoning 442,131 482,531 471,813 10,718 County marshal] 105,528 105,528 87,610 17,918 Economic development 56,273 5,000 5,000 - - Aixport 162,222 137,634 24,588 Total Housing and Development 677,677 829,026 743.226 85,800 — Transfers out 30,500 30,500 30,500 T TAL CHARGES T APPR PRIATI NS 26,539,139 30,787,639 28,834,477 1,953,162 — CHANGE IN FUND BALANCE 2,718,436 2,718,436 FUND BALANCE, End of year $ 8!870i997 $ 8§870§997 g 111589i433 $ 21718§436 N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 64 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE RESTRICTED PR GRAMS SPECIAL REVENUE FUNDS For the Year Ended December 31, 2020 VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) — FUND BALANCE, Beginning of year 332,876 332,876 332,876 $ RES URCES (rNFL WS) Intergovernmental 2,024,196 2,024,196 2,101,412 77,216 Fines and forfeitures 344,288 344,288 240,939 (103,349) Charges for services 200,032 200,032 205,338 5,306 Contributions and donations 15,000 5,000 12,805 (2,195) Investment income 800 800 1,302 502 Miscellaneous 10,000 10,000 — Transfer in 80,427 80,427 81,190 763 Total Resources (Inﬂows) 2,664,743 2,664,743 2,652,986 (11,757) AM UNTS AVAILABLE F R APPR PRIATI N 2,997,619 2 997,619 2,985,862 (11,757) CHARGES T APPR PRIATI NS ( UTFL WS) Current Expenditures Judicial 1,930,742 1,921,142 1,896,773 24,369 Public health and welfare 250,827 260,427 260,378 49 Intergovernmental 432,135 432,135 313,359 118,776 Transfers out 51,039 51,039 46,022 5,017 T TAL CHARGES T0 APPR PRIATI NS 2,664,743 2,664,743 2,516,532 148,211 — — CHANGE IN FUND BALANCE 136,454 136,454 FUND BALANCE, End of year 332,876 332,876 469,330 3 136,454 N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 65 ---PAGE BREAK--- - - ASSETS Cas Investments Receivables (net of allowance for uncollectibles) Interﬁlnd receivables TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Ot er accrued items Interfund payables TOTAL LIABILITIES FUND BALANCES Restricted: Judicial programs Public safety programs Housing and development programs TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES PICKENS COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2020 SPECIAL REVENUE FUNDS SHERIFF'S EMERGENCY LAW LAW TELEPHONE LIBRARY ENFORCEMENT SYSTEM - $ 17,421 $ 158,938 $ $ - - 23,628 - - 120,976 — $ 41.049 $ 158;; $ 120,976 $ - - $ 999 $ $ $ - - - — 349 3,906 — 1.348 3,906 - 39,701 — 158,938 117,070 — - - 39.701 158.938 117,070 $ 41.049 :5 158.938 $ 3%M DRUG TASK FORCE 161,719 — - 34.621 196% - 157,341 - 157.341 - 38,999 — 38,999 196g}; HOTEL/ MOTEL TAX $ 36,998 - 9,491 — $ 46,489 $ 31,225 - - 31.225 - - 15,264 15.264 $ 46,489 TOTAL NONMAJOR GOVERNMENTAL FUNDS $ 375,076 23,628 130,467 34.62] $ 563.79; $ 32,224 157,341 4,255 193.820 39,701 315,007 15,264 369.972 $ 563,792_ 66 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA C MBINING STATEMENT F REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES N NMAJ R G VERNMENTAL FUNDS For the Year Ended December 31, 2020 REVENUES Taxes Fines and forfeitures Charges for services Contn'butions and donations Investment income Miscellaneous T TAL REVENUES EXPENDITURES Current Expenditures Judicial Public safety Housing and development Intergovernmental Principal Interest T TAL EXPENDITURES EXCESS (DEFICIENCY) F REVENUES VER(UNDER) EXPENDITURES THER FINANCING S URCES (USES) Sale of county property Transfers in T TAL THER FINANCING S URCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES, Beginning of year FUND BALANCES, End of year LAW LIBRARY - $ 9,925 - - 399 - 10,324 6,909 - - 2,895 — - 9.804 520 — - - 520 39,181 $ 39.701 SPECIAL REVENUE FUNDS SHERIFF'S EMERGENCY LAW TELEPH NE ENF RCEMENT SYSTEM $ - $ - $ 8,891 - 82,932 702,649 19,389 - 491 - - 249 11 1.703 702,898 - — 199,980 1,241,452 - - - - 58,024 - 561 199.980 1.300.037 (88.27'D (597 139) - 77,648 4,000 597,139 81.648 597.139 - 165,567 117,070 $ 158.938 $ 117,070 $ DRUG TASK F RCE - - - - 179 331 510 — - - - - - 510 - — - 510 38,489 3812-9; H TEL/ M TEL TAX $ 101,184 - - - 225 - 101.409 - — 24,425 82,344 - - 106.769 (5 360) - - - (5,360) 20,624 $ 1522: T TAL N NMAJ R G VERNMENTAL FUNDS $ 101,184 18,816 785,581 19,389 1,294 580 926.844 6,909 1,441,432 24,425 85,239 58,024 561 1.616.590 (689 746) 77,648 601,139 678.787 (103% 380,931 $ 3629—72 67 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE LAW LIBRARY SPECIAL REVENUE FUND For the Year Ended December 31, 2020 VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) - FUND BALANCE, Beginning of year $ 39,181 $ 39,181 $ 39,181 $ RES URCES (INFLJ WS) Fines and forfeitures 9,300 9,300 9,925 625 Investment income 400 400 399 (D Total Resources (Inﬂows) 9,700 9,700 10,324 624 AM UNTS AVAILABLE F R APPR PRIATI N 48,881 48,881 49,505 624 CHARGES T APPR PRIATI NS ( UTFL WS) Current Expenditures Judicial 9,700 9,810 9,804 6 T TAL CHARGES APPR PRIATI NS 9 700 9 810 9 M 6 - CHANGE IN FUND BALANCE (110) 520 630 FUND BALANCE, End of year $ 39,181 $ 39,071 $ 39,701 $ 6_3-0' N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 68 ---PAGE BREAK--- - - PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE SHERIFF'S LAW ENF RCEMENT SPECIAL REVENUE FUND For the Year Ended December 31, 2020 VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) - FUND BALANCE, Beginning of year $ 165,567 $ 165,567 $ 165,567 $ RES URCES (INFIDWS) Fines and forfeitures 50,000 50,000 8,891 (41,109) Charges for services 125,000 125,000 82,932 (42,068) Contributions and donations 25,000 25,000 19,389 (5,611) Investment income 491 491 — Sale of county property 77,648 77,648 Transfer in 4,000 4,000 — - Total Resources (Inﬂows) 200,000 200.000 193,351 (6.649) AM UNTS AVAILABLE F R APPR PRIATI N 365,567 365,567 358,918 (6,649) CHARGES T0 APPR PRIATI NS ( UTFL WS) Current Expenditures Public safety 200,000 200,000 199,980 20 T TAL CHARGES T APPR PRIATI NS 200,000 200,000 199,980 20 — CHANGE IN FUND BALANCE - (6,629) (6.629) FUND BALANCE, End of year $ 165!567 $ 1655567 $ 158938 $ §6§629g N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 69 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE EMERGENCY TELEPH NE SYSTEM SPECIAL REVENUE FUND For the Year Ended December 31, 2020 BUDGET AM UNTS RIGINAL FINAL FUND BALANCE, Beginning of year $ 117,070 $ 117,070 RES URCES (INFD WS) Charges for services 668,300 668,300 Miscellaneous - — — Transfer in 1,282,172 Total Resources (Inﬂows) 668,300 1,950,472 AM UNTS AVAILABLE F R APPR PRIATI N 785,370 2‘067J542 CHARGES T APPR PRIATI NS Current Expenditures ( UTFL WS) Public safety T TAL CHARGES T0 APPR PRIATI NS - - 1,300,172 1,300,172 CHANGE IN FUND BALANCE 668,300 650,300 FUND BALANCE, End of year $ 785:370 3 767i370 N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. ACTUAL VARIANCE WITH FINAL BUDGET P SITIVE (NEGATIVE) 117,070 $ - 702,649 248 597,139 1,300,036 1,417,106 34,349 248 (685,033) (65(L436) (650,436) 1,300,036 1,300,036 136 136 — (650.300) 117,070 3 (650E300! 70 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE DRUG TASK F RCE SPECIAL REVENUE FUND For the Year Ended December 31, 2020 VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) — FUND BALANCE, Beginning of year $ 38,489 38,489 38,489 $ RES URCES (INFL WS) Investment income 179 179 — — Miscellaneous 500 500 331 (169) Total Resources (Inﬂows) 500 500 510 10 AM UNTS AVAILABLE F R APPR PRIATI N 38,989 38,989 38,999 10 CHARGES T0 APPR PRIATI NS ( UTFL WS) Current Expenditures - Public safety 500 500 500 — T TAL CHARGES T APPR PRIATI NS 500 500 500 CHANGE IN FUND BALANCE - - 510 510 FUND BALANCE, End of year $ 385489 38,489 38i999 $ 510 N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 71 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SUPPLEMENTAL BUDGETARY C MPARIS N SCHEDULE H TEL/M TEL TAX SPECIAL REVENUE FUND For the Year Ended December 31, 2020 VARIANCE WITH FINAL BUDGET BUDGET AM UNTS P SITIVE RIGINAL FINAL ACTUAL (NEGATIVE) - FUND BALANCE, Beginning of year 5 20,624 $ 20,624 $ 20,624 $ RES URCES (INFL WS) Taxes 59,800 106,800 101,184 (5,616) Investment income 100 100 225 125 Total Resources (Inﬂows) 59,900 106,900 101,409 (5,491) AM UNTS AVAILABLE F R APPR PRIATI N 80,524 127§24 122,033 (5,491) CHARGES T0 APPR PRIATI NS ( UTFL WS) Current Expenditures Housing and development 59,900 106,900 106,769 131 T TAL CHARGES T0 APPR PRIATI NS 59,900 106,900 106,769 131 - - CHANGE IN FUND BALANCE (5,360) (5,360) FUND BALANCE, End of year $ 20i624 $ 20,6331;I $ 15:264 $ (5‘360! N TES T THE BUDGETARY C MPARIS N SCHEDULE 1. The budgetary basis of accounting used in this schedule is the same as GAAP. 72 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA C MBINING STATEMENT F FIDUCIARY NET P SITI N ALL CUST DIAL FUNDS December 31, 2020 ASSETS Cash TAX C MMISSI NER $ 903,472 CLERK F SUPERI R C URT $ 448,046 PR BATE C URT $ 45,293 MAGISTRATE C URT $ 248,830 $ SHERIFF 46,830 $ T TAL 1,692,471 T TAL ASSETS 903,472 448,046 45,293 248,830 46,830 1,692,471 LIABILITIES Amounts held for others 792,055 157,738 8,579 5,444 11,974 975,790 T TAL LIABILITIES 792,055 157,738 8,579 5,444 1 1,974 975,790 NET P SITI N Restricted for others 111,417 290,308 36,714 243,387 34,855 716,681 T TAL NET P SITI N $ 111,417 $ 290,308 $ 36,714 $ 243,387 $ 34,855 $ 716,681 73 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ADDITIONS T xes collected for other entities Fees collected for other entities Court individu l c ses Inm te ccount deposits TOTAL ADDITIONS DEDUCTIONS P yments of t xes to other entities P yments of fees to other entities P yments to others P yments to inm tes TOTAL DEDUCTIONS CHANGE IN NET POSITION TOTAL NET POSITION, Beginning of ye r CHANGE IN ACCOUNTING PRINCIPLE TOTAL NET POSITION, Beginning of ye r s rest ted TOTAL NET POSITION, End of ye r ALL CUSTODIAL FUNDS For the Ye r Ended December 31, 2020 CLERK OF TAX SUPERIOR PROBATE COMMISSIONER COURT COURT — 46,374,351 $ 879,644 $ — 1,138,020 327,180 - 448,816 37,686 - — - 46,374,351 2,466,480 364,866 - 46,602,990 879,644 - 1,138,020 327,136 - 523,120 14,993 - — — 46,602,990 2,540,784 342,129 (228,639) (74,304) 22,737 340,056 364,612 13,977 340,056 364,612 13,977 111,417 $ 290,308 $ 36,714 MAGISTRATE COURT - 98,232 86,221 - 184,453 — 98,212 68,768 — 166,980 17,473 225,914 225,914 243,387 SHERIFF TOTAL — $ $ 47,253,995 467,729 2,031,161 - 572,723 51,111 51,111 518,840 49,908,990 — 47,482,634 467,774 2,031,142 - 606,881 47,516 47,516 515,290 50,168,173 3,550 (259,183) 31,305 975,864 31,305 975,864 $ 34,855 $ 716,681 74 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SCHEDULE F PR JECTS C NSTRUCTED WITH SPECIAL PURP SE L CAL PTI N SALES TAX Year Ended December 31, 2020 RIGINAL CURRENT EXPENDITURES PR JECT ESTIMATED C STS ESTIMATED C STS PRI R YEARS CURRENT YEAR Special Local ption Sales Tax 2014 Projects Road Improvements $ 14,418,000 $ 14,418,000 $ 11,877,610 $ 1,542,371 Capital Improvements Public Safety 5,987,000 5,987,000 5,224,880 609,465 Library 2,000,000 2,000,000 133,176 1,758,226 Water and Sewer 800,000 800,000 233,662 192,212 Contractual Payments City of Jasper 6,000,000 6,000,000 4,514,043 669,600 City of Nelson 729,000 729,000 548,456 81,356 City of Talking Rock 66,000 66,000 49,654 10,858 Total 2014 Projects $ 30,000,000 $ 30,000,000 $ 22,581,481 $ 4,864,089 2020 Projects Road Improvements $ 16,039,500 $ 16,039,500 $ - $ 475,248 Water and Sewer Facilities 1,1 10,000.00 1,1 10,000.00 — - Airport Debt Service 3,496,500.00 3,496,500.00 - 133,787 Capital Improvements Public Safety 2,960,000 2,960,000 - - Sheriff 2,960,000 2,960,000 - - Parks and Recreation 3,700,000 3,700,000 - - Contractual Payments City of Jasper 5,002,400 5,002,400 - 386,325 City of Nelson 1,650,200 1,650,200 - 127,442 City of Talking Rock 81,400 81,400 - 2,794 Tota12020 Projects $ 37,000,000 $ 37,000,000 5 - $ 1,125,595 75 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA SCHEDULE F STATE C NTRACTUAL ASSISTANCE F R THE YEAR ENDED DECEMBER 31, 2020 Current Year Amount Due from State Program Name Contract Number Received Expended (to) State 93—202000133 Family Connections 93-191900114 $ 50,160 $ 50,160 $ 12,004 The above schedule has been prepared on the modiﬁed accrual basis of accounting. 77 ---PAGE BREAK--- PICKENS C UNTY, GE RGIA. SCHEDULE F EXPENDITURES 0F FEDERAL AWARDS For Year Ended December 31, 2020 FEDERAL GRANT R/ PASS—THRU GRANT R/ PR GRAM TITLE FEDERAL CFDA NUMBER GRANT/ C NTRACT NUMBER PR GRAM R AWARD AM UNT Expenditures US DEPARTMENT F JUSTICE Passed-through the Council of Juvenile Court Judges Prosecution Based V CA Program - CJCC Prosecution Based V CA Program - CJCC CASA V CA CJCC CASA V CA CJCC 16.575 16.575 16.575 16.575 C18-8-264 C19-8-103 2018-V2-GX-0066 Subgrant #C18-8-393 2018V2-GX0066 Subgrant #C19—8-063 S 115,469 115,469 132,173 132,173 495,284 $ 49,768 59,263 84,719 43,210 236,960 BJA Adult Drug Court Discretionary Grant 16.585 Ql9-8—001 271,620 24,201 271,620 24,201 Total U.S. Department of Justice 766,904 261,161 U.S. DEPARTMENT F TRANSP RTATI N Airport Improvement Program Airport Improvement Program 20.106 20.106 Division of Intermodal - Aviation Project CARES Funding Airport 76,670 30,000 76,670 30,000 Total U.S. Department of Transportation 106,[PHONE REDACTED] U.S. DEPARTMENT F HEALTH AND HUMAN SERVICES Passed through the Council of Juvenile Court Judges SAMHSA FTC Enhancement SAMHSA FTC Enhancement 93.243 93.243 E19-8-001 E20-8-001 38,950 27,116 10,307 2,200 66,066 12,507 Passed through Georgia Department of Human Services Promoting Safe and Stable Families Program Promoting Safe and Stable Families Program Promoting Safe and Stable Families Program 93.556 93.556 93.556 DHS Contract # 42700-040C-PSSF—20-020 DHS Contract # 42700-040C-PSSF-21139 SoN # 12014 74,996 74,573 44,562 50,471 18,843 25,850 194,131 95,164 Total U.S. Department of Health and Human Services 2602197 1072671 DEPARTMENT F THE TREASURY Coronavirus Relief Fund (CRF) 21.019 CARES Funding 1,454,637 1,454,637 1,454,637 1,454,637 Total Federal Emergency Management Agency 12454537 1,454,637 GRAND T TALS 5 2,588,408 5 1330:139 N TES T SCHEDULE F EXPENDITURES F FEDERAL AWARDS 1. This schedule is prepared on the modiﬁed accrual basis of accounting. 2. The County did not elect to use the 10% de minimis cost rate as covered in 2 CFR §200.414 Indirect (F&A) costs. 78 ---PAGE BREAK--- [h \INI\\ An sm‘w \N‘l) (“PAH PH [PHONE REDACTED] FX [PHONE REDACTED] 525 CANDLER STREET, NE PO D 2396 / Batescarter CAINESVILLE, GEORI:(::::0503 www.sATESCARrER.c0M Exceeding expectations. Always. INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCLAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH G0VERNMENTA UDITING STANDARDS A g st 30, 2021 Board of Commissioners PICKENS COUNTY, GEORGIA J asper, Georgia We have a dited, in accordance with the a diting standards generally accepted in the United States of Amen'ca and the standards applicable to ﬁnancial a dits contained in Government A diting Standards iss ed by the Comptroller General of the United States, the ﬁnancial statements of the governmental activities, the b siness-type activities, the aggregate discretely presented component nits, each major f nd, and the aggregate remaining f nd information of PICKENS COUNTY, GEORGIA as of and for the year ended December 31, 2020, and the related notes to the ﬁnancial statements, which collectively comprise the PICKENS COUNTY, GEORGIA’S basic ﬁnancial statements and have iss ed o r report thereon dated A g st 30, 2021. O r report incl des a reference to other a ditors who a dited the ﬁnancial statements of the Pickens Co nty Health Department, as described in o r report on PICKENS COUNTY, GEORGIA'S basic ﬁnancial statements. This report does not incl de the res lts of the other a ditor's testing of internal control over ﬁnancial reporting or compliance and other matters that are reported on separately by those a ditors. Internal Control Over Financial Reporting In planning and performing o r a dit of the ﬁnancial statements, we considered the PICKENS COUNTY, GEORGIA‘S internal control over ﬁnancial reporting (internal control) as a basis for designing a dit proced res that are appropriate in the circ mstances for the p rpose of expressing o r opinions on the ﬁnancial statements, b t not for the p rpose 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. A deﬁciency in internal control exists when the design or operation of a control does not allow management or employees, in the normal co rse of performing their assigned f nctions, 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 s ch that there is a reasonable possibility that a material misstatement of the entity’s ﬁnancial statements will not be prevented, 79 ---PAGE BREAK--- 0r detected a d corrected o a timely basis. A sig iﬁca t deﬁcie cy is a deﬁcie cy, or combi atio of deﬁcie cies, i i ter al co trol that is less severe tha a material weak ess, yet importa t e ough to merit atte tio by those charged with gover a ce. Our co sideratio of i ter al co trol was for the limited purpose described i the ﬁrst paragraph of this sectio a d was ot desig ed to ide tify all deﬁcie cies i i ter al co trol that might be material weak esses or sig iﬁca t deﬁcie cies a d therefore, material weak esses or sig iﬁca t deﬁcie cies may exist that have ot bee ide tiﬁed. Give these limitatio s, duri g our audit we did ot ide tify a y deﬁcie cies i i ter al co trol that we co sider to be material weak esses. We ide tiﬁed certai deﬁcie cies i i ter al co trol, described i the accompa yi g schedule of ﬁ di gs a d questio ed costs as ﬁ di gs 2020-001, 2020-002, a d 2020-003 that we co sider to be sig iﬁca t deﬁcie cies i i ter al co trol over ﬁ a cial reporti g. Complia ce a d Other Matters As part of obtai i g reaso able assura ce about whether PICKENS COUNTY, GEORGIA’S ﬁ a cial stateme ts are free of material misstateme t, we performed tests of its complia ce with certai provisio s of laws, regulatio s, co tracts, a d gra t agreeme ts, o complia ce with which could have a direct a d material effect o the determi atio of ﬁ a cial stateme t amou ts. However, providi g a opi io o complia ce with those provisio s was ot a objective of our audit a d, accordi gly, we do ot express such a opi io . The results of our tests disclosed o i sta ces of o complia ce or other matters that is required to be reported u der Gover me t Auditi g Sta dards. PICKENS COUNTY, GEORGIA’S respo ses to the ﬁ di gs ide tiﬁed i our audit are described i the accompa yi g schedule of ﬁ di gs a d questio ed costs. PICKENS COUNTY, GEORGIA’S respo se was ot subject to the auditi g procedures applied i the audit of the ﬁ a cial stateme ts a d, accordi gly, we express o opi io o it. Purpose of this Report The purpose of this report is solely to describe the scope of our testi g of i ter al co trol a d complia ce a d the results of that testi g, a d ot to provide a opi io o the effective ess of the e tity’s i ter al co trol or o complia ce. This report is a i tegral part of a audit performed i accorda ce with Gover me t Auditi g Sta dards i co sideri g the e tity’s i ter al co trol a d complia ce. Accordi gly, this commu icatio is ot suitable for a y other purpose. 55th, Cam ééoVLU" 80 ---PAGE BREAK--- BI $\INI Am nu AN!) (‘PAs Batescarter Exceed I ng expectations_ Al ays. PH [PHONE REDACTED] FX [PHONE REDACTED] 525 CANDLER STREET, NE PO D 2396 CAINESVILLE, CEOR;:::0503 WWW.BATESCARTER‘COM INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE August 30, 2021 Board of Commissioners PICKENS COUNTY, GEORGIA J asper, Georgia Report on Compliance for Each Major Federal Program We have audited PICKENS COUNTY, GEORGIA‘S compliance ith the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of PICKENS COUNTY, GEORGIA‘S maj or federal programs for the year ended December 31, 2020. PICKENS COUNTY, GEORGIA’S major federal programs are identiﬁed in the summary of auditor’s results section of the accompanying schedule of ﬁndings and questioned costs. Management's Responsibility Management is responsible for compliance ith federal statutes, regulations, and the terms and conditions of its federal a ards applicable to its federal programs. Auditor 's Responsibility Our responsibility is to express an opinion on compliance for each of PICKENS COUNTY, GEORGIA’S major federal programs based on our audit of the types of compliance requirements referred to above. PICKENS COUNTY, GEORGIA'S basic ﬁnancial statements include the operations of legally separate component units, Pickens County Health Department. Any amounts of federal a ards received by those component units are not included in the ‘ accompanying schedule of expenditures of federal a ards. Our audit, described belo , did not include the operations of Pickens County Health Department because the component unit engaged other auditors to perform any audit required in accordance ith OMB Compliance Supplement. We conducted our audit of compliance in accordance With auditing standards generally accepted in the United States of America; the standards applicable to ﬁnancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 81 ---PAGE BREAK--- audit re uirements of Title 2 US. Code ofFederal Regulations Part 200, Uniform Administrative Re uirements, Cost Principles, and Audit Re uirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance re uire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance re uirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about PICKENS COUNTY, GEORGM’S compliance with those re uirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on PICKENS COUNTY, GEORGIA’S compliance with those re uirements. Opinion on Each Major Federal Program In our opinion, PICKENS COUNTY, GEORGIA complied, in all material respects, with the compliance re uirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020. Report on Internal Control Over Compliance Management of PICKENS COUNTY, GEORGIA is responsible for establishing and maintaining effective internal control over compliance with re uirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered PICKENS COUNTY, GEORGIA’S internal control over compliance with the re uirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of PICKENS COUNTY, GEORGIA’S internal control over compliance. A deﬁciency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance re uirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deﬁciency, or combination of deﬁciencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance re uirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deﬁciency in internal control over compliance is a deﬁciency, or a combination of deﬁciencies, in internal control over compliance with a type of compliance re uirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 82 ---PAGE BREAK--- Our cons derat on of nternal control over compl ance was for the l m ted purpose descr bed n the ﬁrst paragraph of th s sect on and was not des gned to dent fy all deﬁc enc es n nternal control over compl ance that m ght be deﬁc enc es, s gn ﬁcant deﬁc enc es or mater al weaknesses. We d d not dent fy any deﬁc enc es n nternal control over compl ance that we cons der to be mater al weaknesses, as deﬁned above. The purpose of th s report on nternal control over compl ance s solely to descr be the scope of our test ng of nternal control over compl ance and the results of that test ng based on the requ rements of the Un form Gu dance. Accord ngly, th s report s not su table for any other purpose. 5% Cam éCoVLLP 83 ---PAGE BREAK--- PI KENS OUNTY, GEORGIA AUDITOR'S S HEDULE OF FINDINGS AND QUESTIONED OSTS Year Ended December 31, 2020 SUMMARY OF AUDITOR'S RESULTS: Report issued on Financial Statements — Unmodiﬁed opinion. ompliance (ﬁnancial statements) — Unmodiﬁed opinion. — P’NH Internal ontrol (ﬁnancial statements) Unmodiﬁed opinion, three signiﬁcant deﬁciencies. — ompliance (major programs) Unmodiﬁed opinion, no instances of noncompliance. E" Internal control (major programs) — Unmodiﬁed opinion, no material weaknesses. Audit ﬁndings required to be reported in accordance with 2 FR section 200.516(a) — i) Signiﬁcant deﬁciencies in internal controls over major programs None reported ii) Material noncompliance related to major programs — None reported — iii) Known questioned costs greater than $25,000 for major programs None reported iv) Known questioned costs greater than $25,000 for a program not audited as major — None reported — V) ircumstances if report on compliance is other than unqualiﬁed N/A Vi) Known fraud — N/A Vii) Misrepresentation in schedule of prior audit ﬁndings — None reported Major program for the year — ARES Relief Funding Grant, FDA 21.019 — Dollar threshold used to distinguish between Type A and Type B programs $750,000. Does the auditee qualify as a low risk auditee — No. 84 ---PAGE BREAK--- II AUDIT FINDIN S - ENERALLY ACCEPTED OVERNMENTAL AUDITIN STANDARDS Finding Number SI NIFICANT DEFICIENCY Magistrate Court 2020-001 Statemento Condition: During testing, we noted several instances of insufﬁcient internal controls in the bookkeeping records. We believe that a proper internal control system would prevent these errors. Criteria: Controls should be in place to ensure funds held are accurate. EtZect of Condition: The risk of not knowing for whom the funds belong, improper bank reconciliations, and data being entered into the account software incorrectly. Cause of Condition: There is insufﬁcient recordkeeping. Recommendation: We recommend that the Court improve their internal controls to better manage the monies held and record keeping. Resgonse: Responsibilities transitioned in 2020 with the appointment and subsequent election of a new Chief Magistrate. Since that time internal controls have been reevaluated and improved upon. We believe that this will not be an issue going forward. Clerk of Court 2020-002 Statement of Condition (re-issued): The Court has unknown funds within the Ultra Account. Criteria: Funds held should be reconciled in a manner to show to whom these monies are owed. 85 ---PAGE BREAK--- Effe t of Condition: Although the issue has not had a material effe t on the ﬁnan ial statements, the Court should not hold funds that legally are owed to others. Cause of Condition: The Court has not do umented the amounts held properly to determine the relationship. Re ommendation: We re ommend that the Court analyze the monies held and keep a ontinuous report who as to whom they are owed. Response: The amount in the Court Registry was inherited to the urrent Clerk from previous administrations. In the three years the urrent Clerk has been in ofﬁ e, the balan e held in the registry has de reased from $1,174,762 to $229,648, whi h also in ludes funds from open ases that are to remain in the a ount until the ases are on luded, so the amount to be reimbursed is a tually lower than this stated amount. By law, until the ases are on luded and an order is ﬁled, this money is to remain in this a ount. The Clerk’s ofﬁ e has made great strides to redu e this amount tremendously and feels it is best to try and get this money ba k to the people it is owed instead of turning it over to the state. There are Orders done that are not lear and by Judges that are no longer sitting and the previous Clerks re ords has many mistakes. The Clerk and Chief Judge believe that it needs to be looked into further with help from the County Attorney to ollaborate to understand and interpret the un lear Orders. The in orre t dis repan ies in the previous Clerks re ords Will be subje ted to further, independent examination. If there is no lear understanding of Orders after review and an ome to no person to remit it, the Clerk will then turn that money over to the state after the 7 years that we are required to hold the money by law. Law Library 2020-003 Statement of Condition (re-issued): The Law Library does not re ord revenue and expenditure a tivities. Criteria: Reporting should be in pla e to ensure funds held are a urate. Effe t 01 Condition: The risk of not knowing for where the monies are being re eived and spent. 86 ---PAGE BREAK--- Cause of Co ditio : There is ot a process i place to record activity o a mo thly basis. Recomme datio : We recomme d that each mo th's activity is recorded a d reco ciled i a timely ma er. Resgo se: The Law Library is ow utilizi g accou ti g software to record a d track Law Library ba k accou t activity a d complete ba k reco ciliatio s mo thly. III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS There were o ﬁ di gs or questio ed costs relati g to Federal awards reported for the year e ded December 31, 2020. 87

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