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Pickens County, Georgia Annual Comprehensive Financial Report For the fiscal year ended December 31, 2022 ---PAGE BREAK--- ---PAGE BREAK--- Annual Comprehensive Financial Report Fiscal Year Ended December 31, 2022 Pickens County, Georgia PREPARED BY: THE FINANCIAL SERVICES DEPARTMENT ---PAGE BREAK--- EXHIBIT PAGE INTRODUCTORY SECTION Table of Contents i-iii Principal Officials iv Pickens County Organizational Chart v Letter of Transmittal vi FINANCIAL SECTION Independent Auditor's 1-3 Management's Discussion and 4-11 Basic Financial Statements: Government-wide Financial Statements: A-1 Statement of Net 12-13 A-2 Statement of 14 Fund Financial Statements: Governmental Funds: A-3 Balance 15-16 A-4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Positio 17 A-5 Statement of Revenues, Expenditures and Changes in Fund Balances………………………… 18-19 A-6 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of 20 A-7 General Fund - Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and 21-22 A-8 American Rescue Plan Grant Act - Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and 23 Proprietary Funds: A-9 Statement of Net 24 A-10 Statement of Revenues, Expenses, and Changes in Net Position……………………………… 25 A-11 Statement of Cash 26-27 Fiduciary Funds: A-12 Statement of Fiduciary Net 28 A-13 Statement of Changes in Fiduciary Net 29 Component Units: A-14 Combining Statement of Net 30 A-15 Combining Statement of Changes in Net 31 A-16 Notes to the Financial 32-80 Required Supplementary Information: B-1 Schedule of Changes in the Net Pension Liability and Related 81-82 B-2 Schedule of Pension 83-84 B-3 Schedule of Changes in the Net OPEB Liability and Related 85-86 B-4 Notes to the Required Supplementary 87-89 PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2022 TABLE OF CONTENTS ---PAGE BREAK--- EXHIBIT PAGE PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2022 TABLE OF CONTENTS FINANCIAL SECTION (continued) Combining and Individual Fund Statements and Schedules: C-1 Combining Balance Sheet - Nonmajor Governmental 90 C-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental 91 C-3 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Law Library Special Revenue 92 C-4 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Sheriff Law Enforcement Special Revenue 93 C-5 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - E-911 Special Revenue 94 C-6 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Drug Task Force Special Revenue 95 C-7 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Restricted Programs Special Revenue 96 C-8 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Hotel Motel Special Revenue 97 D-1 Statement of Fiduciary Net Position - Custodial 98 D-2 Statement of Changes in Fiduciary Net Position - Custodial 99 STATISTICAL SECTION Financial Trends E-1 Net Position by Component – Last Ten Fiscal 100 E-2 Changes in Net Position – Last Ten Fiscal 101-102 E-3 Fund Balances, Governmental Funds – Last Ten Fiscal 103 E-4 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal 104 E-5 Program Revenues by Function/Program – Last Ten Fiscal 105 E-6 Tax Revenues by Source, Governmental Funds – Last Ten Fiscal 106 Revenue Capacity E-7 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years………………… 107 E-8 Property Tax Rates - Direct and Overlapping – Last Ten Fiscal 108 E-9 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal 109 E-10 Principal Property Taxpayers -Current Year and Nine Years 110 E-11 Property Tax Levies and Collections – Last Ten Fiscal 111 E-12 Property Tax Liens – Last Seven Fiscal 112 Debt Capacity E-13 Ratios of Outstanding Debt by Type – Last Ten Fiscal 113 E-14 Direct and Overlapping Governmental Activities 114 E-15 Legal Debt Margin Information – Last Ten Fiscal 115 E-16 Pledged-Revenue Coverage – Last Ten Fiscal 116 E-17 Water Department Operating Revenues/Expenses– Last Ten Fiscal 117 E-18 Water Department Gallons Bought and Sold - Last Six Fiscal 118 ---PAGE BREAK--- EXHIBIT PAGE PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2022 TABLE OF CONTENTS STATISTICAL SECTION (continued) Demographic and Economic Information E-19 Water Principal Customers - Current Year and Five Years 119 E-20 Demographic and Economic Statistics – Last Ten Fiscal 120 E-21 Principal Property Taxpayers - December 31, 121 Operating Information E-22 Full-Time Equivalent Employees by Function – Last Ten Fiscal 122 E-23 Operating Indicators by Function/Program – Last Ten Fiscal 123-124 E-24 Capital Asset Statistics by Function – Last Ten Fiscal 125 OTHER REPORTING SECTION Single Audit Section Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 126-127 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform 128-129 F-1 Schedule of Expenditures of Federal 130-131 F-2 Notes to the Schedule of Expenditures of Federal 132 F-3 Schedule of Findings and Questioned 133-140 State Reporting Section G-1 Schedule of Projects Financed with Special Purpose Local Option Sales 141 G-2 Schedule of Completed State Awards Expended - Georgia Department of Human 142 ---PAGE BREAK--- iv Josh Tippens Josh Tatum Post One ( West) Post Two (East) Daniel Reeves David Lindsey Tax Commissioner Chief Probate Court Judge Mark Godfrey Alan Morris Coroner Chief Magistrate Court Judge Brenda Weaver Allison Sosebee Chief Superior Court Judge District Attorney John Worcester Donald Craig Superior Court Judge Sheriff Jennifer Jordon Clerk of Court Lesa Thomason Roy Dobbs County Clerk Tax Assessor Bill Wood Sloan Elrod General Administration Director Public Safety Director Charlene Bunch Kirk Anderson Chief Financial Officer Public Works Director Paula Peace Timothy Prather Human Resources Director Fire Chief Stacy Godfrey Emily Bell Elections Director Animal Shelter, Director Kenneth Woodard Mike Carswell Solid Waste Director County Marshal Brian Jones Mark Harris Parks and Recreation Director EMA Director Phillip Dean Kristy Easterwood Water Department, Director E‐911 Director Commission Chairman Constitutional Officers County Administration Kris Stancil Budget Officer PICKENS COUNTY, GEORGIA LIST OF PRINCIPAL OFFICIALS DECEMBER 31, 2022 Commission Chairman and District Commissioners Kris Stancil ---PAGE BREAK--- v PICKENS COUNTY GOVERNMENT ORGANIZATIONAL CHART ŝƟǌĞŶƐŽĨWŝĐŬĞŶƐŽƵŶƚǇ ŽĂƌĚŽĨŽŵŵŝƐƐŝŽŶĞƌƐ Kris Stancil, Chairman Josh Tippens, Post 1 Josh Tatum, Post 2 ƉƉĂůĂĐŚŝĂŶ:ƵĚŝĐŝĂůŽƵƌƚ ^ƵƉĞƌŝŽƌŽƵƌƚ Brenda Weaver, Chief Judge :ƵǀĞŶŝůĞŽƵƌƚ Keith Galligan, Chief Judge ŝƐƚƌŝĐƚƩŽƌŶĞǇ͛ƐKĸĐĞ llison Soseďee, istrict ƩorneǇ KƚŚĞƌ ůĞĐƚĞĚKĸĐŝĂůƐ DĂŐŝƐƚƌĂƚĞŽƵƌƚ Alan Morris, Chief Judge ůĞƌŬŽĨŽƵƌƚƐ Jennifer Jordan, Clerk of Court WƌŽďĂƚĞŽƵƌƚ avid >indseǇ, Chief Judge dĂǆŽŵŵŝƐƐŝŽŶĞƌ Daniel Reeves ^ŚĞƌŝī Donnie Craig dĂǆƐƐĞƐƐŽƌ RoǇ Doďďs ŽƵŶƚǇůĞƌŬ Lesa Thomason ŽƵŶƚǇƩŽƌŶĞǇ Phil Landrum DŝƐƐŝŽŶ^ƚĂƚĞŵĞŶƚ Our mission is to provide a transparent local government that SERVES all who are here and to ĚŽƐŽŝŶƚŚĞŵŽƐƚĞĸĐŝĞŶƚǁĂǇƉŽƐƐŝďůĞ ŽĂƌĚƐ͕ŽŵŵŝƩĞĞƐ͕ΘƵƚŚŽƌŝƟĞƐ ŽĂƌĚŽĨ ůĞĐƟŽŶƐΘZĞŐŝƐƚƌĂƟŽŶ ůĞĐƟŽŶƐ^ƵƉĞƌŝŶƚĞŶĚĞŶƚ ŽĂƌĚŽĨ ƋƵĂůŝǌĂƟŽŶ Board of Health Health Department Environmental Health Board of Tax Assessors dĂǆƐƐĞƐƐŽƌƐKĸĐĞ ĞǀĞůŽƉŵĞŶƚƵƚŚŽƌŝƚǇŽĨWŝĐŬĞŶƐŽƵŶƚǇ &ŝƌĞZĞŐƵůĂƟŽŶƐƉƉĞĂůƐŽĂƌĚ WŝĐŬĞŶƐŽƵŶƚǇŝƌƉŽƌƚƵƚŚŽƌŝƚǇ WŝĐŬĞŶƐŽƵŶƚǇĞĞƌĂŶĚtŝŶĞŽĂƌĚ WŝĐŬĞŶƐ>ŝďƌĂƌǇŽĂƌĚ WŝĐŬĞŶƐtĂƚĞƌΘ^ĞǁĞƌĂŐĞƵƚŚŽƌŝƚǇ WůĂŶŶŝŶŐŽŵŵŝƐƐŝŽŶ ZĞĐƌĞĂƟŽŶΘWĂƌŬƐĚǀŝƐŽƌǇŽĂƌĚ Zoning Board of Appeals ŽƌŽŶĞƌ Mark GodfreǇ ůĞĐƟŽŶƐ StacǇ GodfreǇ KƚŚĞƌWĂƌƚŶĞƌƐ hGA CountǇ ǆtension Services ŝƌĞĐƚŽƌŽĨĚŵŝŶŝƐƚƌĂƟŽŶ Bill Wood ŝƌĞĐƚŽƌŽĨWƵďůŝĐ^ĂĨĞƚǇ Sloan lrod ƵŝůĚŝŶŐͬ'ƌŽƵŶĚDĂŝŶƚĞŶĂŶĐĞ ŽŵŵƵŶŝĐĂƟŽŶƐ &ŝŶĂŶĐĞ ŚĂƌůĞŶĞƵŶĐŚ͕&K ,ƵŵĂŶZĞƐŽƵƌĐĞ WĂƵůĂWĞĂĐĞ͕ŝƌĞĐƚŽƌ WůĂŶŶŝŶŐĂŶĚĞǀĞůŽƉŵĞŶƚ tĞƐ&ƌǇĞ͕ŝƌĞĐƚŽƌ WĂƌŬƐΘZĞĐƌĞĂƟŽŶ Brian Jones͕ŝƌĞĐƚŽƌ tĂƚĞƌĞƉĂƌƚŵĞŶƚ WŚŝůůŝƉĞĂŶ͕ŝƌĞĐƚŽƌ ^ŽůŝĚtĂƐƚĞ <ĞŶŶĞƚŚtŽŽĚĂƌĚ͕ŝƌĞĐƚŽƌ WƵďůŝĐtŽƌŬƐ <ŝƌŬŶĚĞƌƐŽŶ͕Director ŵĞƌŐĞŶĐǇDŐŵƚ͘ŐĞŶĐǇ DĂƌŬ,ĂƌƌŝƐ͕ŝƌĞĐƚŽƌ &ŝƌĞͬ ŵĞƌŐĞŶĐǇ^ĞƌǀŝĐĞƐ dŝŵŽƚŚǇWƌĂƚŚĞƌ͕Fire ŚŝĞĨ ŶŝŵĂů^ŚĞůƚĞƌ ŵŝůǇĞůů͕ŝƌĞĐƚŽƌ ŽƵŶƚǇDĂƌƐŚĂů DŝŬĞĂƌƐǁĞůů ŵĞƌŐĞŶĐǇŽŵŵƵŶŝĐĂƟŽŶ ĞŶƚĞƌϵϭϭ KƌŝƐƚǇ ĂƐƚĞƌǁŽŽĚ͕ Director ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 vi June 29, 2023 Pickens County Board of Commissioners 1266 West Church Street Pickens County, Georgia 30143 Ladies and Gentlemen: We are pleased to present the Annual Comprehensive Annual Report (ACFR) of Pickens County, Georgia (“the County”) for the ﬁscal year ended December 31, 2022. Local Governments are required by State law and local ordinances to publish a complete set of audited ﬁnancial statements within six months of the close of each ﬁscal year. This report, Pickens County, Georgia 2022 Annual Comprehensive Annual Report is published to fulﬁll that requirement for the ﬁscal year. Management assumes full responsibility for the completeness and reliability of the informaƟon contained in the report, based on a comprehensive framework of internal controls established for this purpose. The single audit report, to the best of our knowledge, has been prepared in accordance with generally accepted accounƟng principles (GAAP) and the enclosed data is accurate in all material respects. This report has been created to imparƟally present the ﬁnancial posiƟon and operaƟonal results of Pickens County. As a part of this report, the County is required to have a single audit performed to comply with the Single Audit Act of 1984 and the amendments of 1996 and Title 2 U.S. Code of Federal RegulaƟons Part 200, Uniform AdministraƟve Requirements, Cost Principles, and Audit Requirements for Federal Awards. This is required because the County receives ﬁnancial assistance from federal grant programs. The single audit is a separate report that includes the schedule of federal ﬁnancial assistance, ﬁndings, quesƟoned costs, and auditor’s reports on the internal control over ﬁnancial reporƟng and compliance. Pickens County’s ﬁnancial statements have been audited by Rushton, LLC, a ﬁrm of cerƟﬁed public accountants. The independent auditor’s report is presented at the front of the ﬁnancial secƟon of this report. Management’s Discussion and Analysis (MD&A) report is required by GAAP. This report follows the independent auditor’s report. The MD&A provides a narraƟve introducƟon, overview, and analysis of the basic ﬁnancial statements. The MD&A complements the leƩer of transmiƩal and should be read in conjuncƟon with it. ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 vii INTRODUCTION Pickens County, Georgia sits at the edge of the Blue Ridge Mountains (at the southern end of the Appalachians). Cherokee Indians populated this area of North Georgia from the late 1700s unƟl the 1830s when the land was distributed to European seƩlers. In 1838 and 1839 U.S. troops, prompted by the state of Georgia, expelled the Cherokee Indians from their ancestral homeland in the Southeast and removed them along the “Trail of Tears” to the Indian Territory in what is now Oklahoma. On December 5, 1853, the Georgia General Assembly Passed an act creaƟng Pickens County from porƟons of Cherokee and Gilmer CounƟes. The County was names for an American RevoluƟonary War General Andrew Pickens. The County received several more land addiƟons from Cherokee (1869) and Gilmer (1858 and 1863); and several secƟons of Pickens were transferred to other counƟes including Dawson, Gordon and back to Cherokee. A liƩle-known fact is that for almost a month aŌer Georgia seceded, the Union ﬂag ﬂew from the Court House. Pickens County is renowned for its excepƟonally pure marble. Henry Fitzsimmons established the ﬁrst marble quarries and the ﬁrst marble mill in the 1830s. Pickens County marble was used in buildings across the U.S. Including: - The Lincoln Memorial - New York Stock Exchange Annex - House Oﬃce Building - Cleveland Federal Reserve - East Wing of the NaƟonal Gallery of Art - Chicago’s Buckingham Fountain - NaƟonal Air and Space Museum - Florida’s Bok Sing Tower (Pickens County Courthouse) (Tate Marble Quarry) The Pickens County Court House is one of the many buildings on the NaƟonal Register of Historic Places and was built with Pickens County marble. ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 viii PROFILE OF GOVERNMENT Pickens County is governed by a three-member commission, including a Commission Chairman, who also acts as the Budget Oﬃcer and two other board members. The Board serves as the legislaƟve and policymaking body of the county government. It enacts county ordinances, appropriates funds to conduct county business, and provides policy direcƟon to the administraƟve staﬀ. The Chairman/Budget Oﬃcer oversees all county employees, the Budget Oﬃcer is responsible for the eﬃcient ongoing operaƟon of all county services. Pickens County provides services to 34,350 ciƟzens and 802 businesses. These services include judicial/court services, planning and development, business licenses and building permits, road maintenance, parks and recreaƟon, animal shelter services, airport, water and sewer, and public safety. Public safety includes the sheriﬀ’s oﬃce, ﬁre protecƟon, emergency/ambulance services, and code enforcement. Kristopher Stancil Josh Tippens Josh Tatum Chairman/Budget Oﬃcer Commissioner Commissioner Under the direct control of the Board of the Commissioners are the ﬁnancial statements, schedules, and staƟsƟcal tables, and all the funds of the primary government, as well as its component units. A component unit is a separate legal enƟty for which the primary government is ﬁnancially accountable. The two component units of Pickens County are the Pickens County Development Authority and the Pickens County Health Department. These component units are included in the ﬁnancial reports as discretely presented component units. The County operates under an annual Board-approved budget. The budget is developed on a line-item budget concept for both expenditures and anƟcipated revenues. A purchase order encumbrance system ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 ix is in place to gain control of our purchasing decisions and provide transparency and ﬁnancial accountability. All purchase order requisiƟons are veriﬁed against the budget prior to being purchased. Purchase Order encumbrances do not carry over to the next ﬁscal year. LOCAL ECONOMY The Industry Mix of employment for Pickens County is 20.3% Goods, 63.9% Services, and 15.2% Government. Pickens is a semi-rural area; there are many areas sparsely populated with towns and small ciƟes sprinkling the County. A large porƟon of the populaƟon leaves the County for employment. By far the largest Service-Providing areas of the County are Health Care and Social Assistance and AccommodaƟon and Food Service. These two areas Ɵed at 13.1% of the available jobs or 1,086 people employed in each area. Local government employees account for 13% of the employment opportuniƟes, or 1,077 people. The next largest area of employment is Retail Trade at 9.5% or 788 posiƟons. In the Goods-Producing area, the largest porƟon of the employment opportuniƟes are in ConstrucƟon, at 6.3% or 521 jobs. The Industry Mix does not ﬂuctuate a lot from year to year. It may begin to change in the future, due to an increase in homes being built and people moving into the area. 20.3 63.9 15.2 0.6 2022 Pickens County Industry Mix Goods Services Government Not Assigned ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 x The unemployment rate in the County is steadily decreasing from a high ten years ago of 7.1%. The rate has decreased each year with a slight jump during the COVID 19 shutdown. Since then, the rate has conƟnued to decline. At the end of 2022 the unemployment rate was 2.2%. New ConstrucƟon was slow in 2013, 2014, and 2015. As with most other CiƟes and CounƟes, the County was sƟll recovering from the downturn in 2008 and 2009. In 2016, the number of new homes and businesses being constructed began to increase. This trend has conƟnued each year. 7.1% 5.5% 4.9% 4.6% 3.7% 3.3% 2.5% 3.8% 2.3% 2.2% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Unemployment Rate 0 50 100 150 200 250 [PHONE REDACTED] 2014 2015 2016 2017 2018 2019 2020 2021 2022 103 83 88 143 158 170 178 237 279 299 9 5 9 28 23 19 20 29 48 28 New Construction Residential Commercial Permits ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xi As was menƟoned previously, there is a trend in the County of building new subdivisions. These new homes are aƩracƟng residents of other CounƟes to move to Pickens County. Pickens County has experienced an increase in populaƟon for 10 consecuƟve years from 2013-2022 with an average annual growth rate of 1.61%. Prior to 2010 Pickens County’s populaƟon increased 103.96% from 2,780 people in 1990 to 15,004 people in 2010. Pickens County is approximately 60 miles northeast from the City of Atlanta. As the area between Atlanta and Pickens County becomes more populated, people are beginning to look at Pickens as a viable place to live in while they work farther south. The number of businesses in the County is steadily increasing. As you can see in the chart above, each year more businesses are created, while a substanƟal porƟon of the established businesses conƟnue to renew their licenses. There was a small dip in 2020 during the COVID 19 shutdown. PROPERTY TAXES/MILLAGE RATE As you can see in the chart below, there was a jump in the millage rate in 2016. This was due to a correcƟon aŌer the County had recovered from the downturn. Since then, the County has been steadily reducing the rate each year. This is due to a couple of factors; ﬁrst, the County is ﬁscally conservaƟve, and second, due to a conƟnual increase in new homes and businesses, as discussed above. The County usually rolls back the millage rate to mirror the previous years’ level. Also, the County has recently completed a reevaluaƟon of the property values which increased the revenue. Pickens County has no tax abatements. 0 200 400 [PHONE REDACTED] 2019 2020 2021 2022 123 141 100 146 155 605 612 546 647 647 Business License Business License ‐ New Business License ‐ Renewal ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xii In a comparison of millage rates to other CounƟes nearby and who also share similar in demographics, Pickens County is very compeƟƟve. We are the third lowest of these counƟes in millage rates. Each of the CounƟes shown in the comparison below have the LOST (Local OpƟon Sales Tax). 6.689 7.220 7.222 7.950 7.883 7.846 7.779 7.613 7.489 7.438 6.00 6.20 6.40 6.60 6.80 7.00 7.20 7.40 7.60 7.80 8.00 8.20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Pickens County Millage Rate 0.000 5.000 10.000 15.000 GILMER DAWSON PICKENS MURRAY BARTOW WHITE GORDON LUMPKIN 6.500 7.222 7.438 8.490 8.889 9.505 9.515 11.281 Millage Rate/County Comparison 2022 ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xiii Below is the Current 2022 Property Tax Digest and 5-Year History of Levy. The Gross and Net Digests have increased each year. These numbers are rolled back by the LOST and the general rollback. The ﬁnal millage rate decreased each year, while the taxes levied conƟnue to increase. CURRENT 2022 PROPERTY TAX DIGEST AND 5 YEAR HISTORY OF LEVY 2017 2018 2019 2020 2021 2022 Real & Personal 1,444,679,083 1,484,170,786 1,529,066,056 1,602,638,589 1,683,845,069 1,903,435,802 Motor Vehicles 35,062,710 28,440,130 24,371,490 22,632,950 19,966,600 18,049,830 Mobile Homes 9,840,193 10,481,846 10,699,059 10,860,424 11,433,396 11,992,348 Timber - 100% 191,782 0 3,870 1,134,367 100,730 466,479 Heavy Duty Equipment 53,613 1,874 3,095 105,014 377,237 269,915 Gross Digest 1,489,827,381 1,523,094,636 1,564,143,570 1,637,371,344 1,715,723,032 1,934,214,374 Less Exemptions 104,972,889 112,211,082 112,997,671 110,959,786 110,161,530 113,115,609 NET DIGEST VALUE 1,384,854,492 1,410,883,554 1,451,145,899 1,526,411,558 1,605,561,502 1,821,098,765 Gross Maintenance & Operation Millage 9.9720 10.0630 10.1450 10.0660 10.1898 10.1900 Less Rollback (Local Option Sales Tax) 2.0890 2.2170 2.3660 2.4530 2.7008 2.7520 NET M&O MILLAGE RATE 7.8830 7.8460 7.7790 7.6130 7.4890 7.4380 TOTAL M&O TAXES LEVIED $10,916,808 $11,069,792 $11,288,464 $11,620,571 $12,024,050 $13,545,333 Net Tax $ Increase $152,984 $218,672 $332,107 $403,479 $1,521,283 Net Tax % Increase 1.40% 1.98% 2.94% 3.47% 12.65% The LOST collecƟons conƟnue to increase every year, thus giving more property tax relief to the ciƟzens. $2,715.57 $2,838.28 $2,851.57 $2,910.16 $3,168.23 $3,471.46 $3,782.49 $4,384.26 $5,081.77 $5,917.00 $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00 $6,000.00 $7,000.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LOST COLLECTIONS IN THOUSANDS ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xiv As the LOST revenue increases so does the SPLOST revenue. As the County adds more residents and businesses, the SPLOST receipts conƟnue to increase. MAJOR INITIATIVES During 2022, the Pickens County Board of Commissioners have worked on a variety of ways to improve employee retenƟon, especially within the public safety sector. The Board of Commissioners worked diligently to increase the pay for all Public Safety employees through the commitment to provide a $3.50 per hour increase to all public safety employees. This step, along with numerous other fringe beneﬁts that are provided, has allowed Pickens County to be comparable to surrounding counƟes, including several metro counƟes. This iniƟaƟve will conƟnue in 2023. The Board of Commissioners has also worked to improve the quality of services provided through Parks and RecreaƟon by adding LED lighƟng to all ball ﬁelds, constructed a new playground, and is currently in the process of paving a walking path to provide a safe place for ciƟzens to parƟcipate in an acƟve lifestyle. In addiƟon, to improve quality of life for those visiƟng Pickens County, a major renovaƟon has taken place at the Tate Train Depot. This included the addiƟon of a large, donated model train set that has created an aƩracƟve desƟnaƟon for train enthusiasts from all around. To assist in infrastructure improvements, Pickens County has worked to secure addiƟonal water capacity through its partnership with neighboring jurisdicƟons. This has allowed for the addiƟonal capacity of 500,000 gallons of water per day for our ciƟzens. Pickens County is in the north Georgia mountains and consist of 233 square miles of mountainous terrain, of which 232 square miles is land and .7 square $3,880 $4,054 $4,073 $4,156 $4,526 $4,959 $5,394 $6,270 $7,257 $8,458 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 SPLOST COLLECTIONS IN THOUSANDS ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xv miles contain water. Further, Pickens County is the only county in the State of Georgia that does not contain nor has access to a major state waterway. With over 400 miles of roads under its responsibility, Pickens County worked to pave over 21 miles of road in 2022 and is commiƩed to resurfacing the same in 2023. With a strong commitment to beƩer protecƟng the environment, Pickens County has conƟnually invested in recycling through our Recycling Center. In 2022, 1,203,947 pounds of materials were recycled and kept out of the landﬁlls. Pickens County is home to a very acƟve airport and major improvements are currently underway. In 2021 and 2022, an addiƟon of 4 new hangars was completed. In 2023, ground will be broken to construct a state-of-the-art terminal facility that will conƟnue to aƩract new air traﬃc for years to come. LONG TERM PLANNING Pickens County and the CiƟes of Jasper, Nelson, and Talking Rock have joined together, in an eﬀort, to meet the challenges ahead. CiƟzens, elected oﬃcials, professional staﬀ, business leaders, and property owners worked as a team to prepare the Pickens County Joint Comprehensive Plan Update 2023-2027. The Joint Comprehensive Plan represents both a shared cooperaƟve vision and individual acƟon steps for community success. The comprehensive plan describes the traits and values of each municipality, and balances future growth and development with these values, for growth that is respecƞul to local cultural aƫtudes and the scenic natural beauty of the area. The joint comprehensive plan and ﬁve-year community work program also demonstrates the importance of local projects to funding agencies such as the Appalachian Regional Commission and the Economic Development AdministraƟon. ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xvi A porƟon of the Joint Comprehensive Plan that pertains to Pickens County. The areas included in the Plan for Pickens County are: Economic Development ‐ This secƟon is working toward achieving the Georgia Department of Community Aﬀairs’ Broadband Ready designaƟon. Also, idenƟfying areas unserved and a broadband provider to extend infrastructure to serve that area. This should be accomplished during 2023 and 2024. The County will seek land for the development of a business Park. This should be accomplished 2023-2025. Housing – Review, revise, and draŌ appropriate ordinances to improve housing type, variety, and condiƟons to create opƟons that are appropriate for Pickens County. Then, promote the use of these alternaƟve housing opƟons. This should be accomplished 2023-2025. TransportaƟon - This secƟon will explore alternaƟve routes to improve traﬃc ﬂow from one side of the County to the other. The County will also evaluate sidewalk, mulƟpath, and other pedestrian infrastructure projects needed. These projects will conƟnue the ﬁve-year period, 2023-2027. ConstrucƟon of new airport terminal. This will be completed 2023-2025. Natural and Cultural Resources – ConƟnue to work cooperaƟvely with art groups to promote expansion of various arts programs, including natural recreaƟonal resources. Also, to review and revise County ordinances regarding environmental and land development to be responsible in relaƟon to natural resources. These items will extend the next ﬁve years, 2023-2027. Community FaciliƟes and Services – The County will conƟnue renovaƟons to Roper Park and plan for park expansion. The County will also purchase property and construct a new park. This process will encompass the ﬁve years, 2023-2025. The County will review the feasibility of acquiring property with private and nonproﬁt enƟƟes. This will be accomplished 2023-2024. The County will secure funds and purchase a temporary emergency shelter. This will take place 2023- 2025. The County will construct a Fire Training Center. We will also work with the town of Talking Rock to create a Fire Department. 2023-2025 The County will secure grant funding and expand the water system capacity. The funding for these projects varies. The funding for Economic Development, Housing, and Natural and Cultural Resources is Ɵme used by the County staﬀ, with the excepƟon of building a business park and that will be ﬁnanced by ARPA and other grants. The TransportaƟon projects will be funded use of County staﬀ, ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xvii Georgia Department of TransportaƟon (GDOT), and Appalachian Regional Commission (ARC). Projects In the Community FaciliƟes and Services will be funded by a variety of Grants, SPLOST, and General Fund. Economic Development $503,000 Housing $35,000 TransportaƟon $1,425,000 Natural and Cultural Resources $75,000 Community FaciliƟes and Services $18,014,000 OTHER INFORMATION Independent Audit Pickens County requires an annual independent audit of County ﬁnancial records by a cerƟﬁed public accountant selected by the Board of Commissioners. The accounƟng ﬁrm of Rushton, LLC was selected to fulﬁll this requirement, and a copy of the auditor’s report on the ﬁnancial statements is included in the ﬁnancial secƟon of this report. Single Audit As Pickens County is a recipient of federal and state ﬁnancial assistance, the County also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulaƟons that are related to those programs. The County’s annual single audit requires conformity with the provisions of the Single Audit Act of 1984 and the amendments of 1996 and Title 2 U.S. Code of Federal RegulaƟons Part 200, Uniform AdministraƟve Requirements, Cost Principles, and Audit Requirements for Federal Awards. TesƟng determines the adequacy of the internal control structure, including the porƟon that relates to federal ﬁnancial assistance programs, as well as to determine the County has complied with all applicable laws and regulaƟons. ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 xviii Budgetary Controls Budgetary controls are maintained by the County to ensure compliance with the legal provisions of the annual appropriated budget that was approved by the Board of Commissioners. The annual appropriated budget includes acƟviƟes of the general fund, special revenue funds, and enterprise funds. The oﬃcial level of county budget control (the level on which expenditures may not legally exceed appropriaƟons) for each legally adopted annual operaƟng budget is the department, funcƟon, or acƟvity within each fund. In case of unforeseen needs, the transfer of appropriaƟons within a department may be authorized by the Budget Oﬃcer. This level does not require Commission approval. Transfers of appropriaƟons outside departments or funcƟons are reviewed with the Board of Commissioners prior to approval. The County maintains an encumbrance accounƟng system as one means of accomplishing budgetary control. Encumbered amounts at year end are not carried forward to the next year. In the case of SPLOST projects, a new purchase order is created at the beginning of the year to conƟnue the project. Acknowledgements The preparaƟon of the report could not have been accomplished without the eﬃcient and dedicated eﬀorts of the staﬀ of the Finance Department, the auditors for the County and its component units, and the cooperaƟon of the various elected oﬃcials and county management. My sincere appreciaƟon is extended to each individual for the contribuƟons made in the preparaƟon of this report. Respecƞully submiƩed, Charlene Bunch Chief Financial Oﬃcer ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- Independent Auditor's Report Honorable Chairman and Members of the Board of Commissioners Pickens County, Georgia Report on the Audit of the Financial Statements Opinions 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, 2022, and the related notes to the financial statements, which collectively comprise Pickens County, Georgia’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Pickens County, Georgia, as of December 31, 2022, and the respective changes in the financial position and the budgetary comparisons of the General Fund and American Rescue Plan Act Grant Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Pickens County Health Department, a discretely presented component unit of Pickens County, Georgia, which represents 34.9% of the assets, 57.8% of the net position, and 83.4% of the revenues of the discretely presented component units for the year ended December 31, 2022. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Pickens County Health Department, is based solely on the reports of the other auditors. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Pickens County, Georgia and to meet our ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Pickens County, Georgia’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 ---PAGE BREAK--- Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Pickens County, Georgia’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Pickens County, Georgia’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information on pages 4 through 11 and 81 through 89, respectively, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 ---PAGE BREAK--- Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Pickens County, Georgia’s basic financial statements. The combining and individual fund financial statements and schedules, the schedule of projects financed with special purpose local option sales tax, and the schedule of completed state awards expended are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules, the schedule of projects financed with special purpose local option sales tax, the schedule of completed state awards expended, and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2023, on our consideration of Pickens County, Georgia’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pickens County, Georgia’s internal control over financial reporting and compliance. Rushton, LLC Gainesville, Georgia June 29, 2023 3 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- MANAGEMENT’S DISCUSSION AND ANALYSIS As management of Pickens County, Georgia (the "County"), we provide this narrative overview and analysis of the financial activities of the County for the year ended December 31, 2022. The County's financial performance is discussed and analyzed within the context of the accompanying financial statements and disclosures following this section. FINANCIAL HIGHLIGHTS The County's assets exceeded its liabilities by $62,844,256 (net position) for the year reported. This represents an increase of $3,592,872 or 6% from the previous year. Total net position is comprised of the following: 1. Net investment in capital assets equaled $50,338,040. 2. Net position of $9,607,455 is restricted for debt service, capital outlay, or by other constraints imposed by law or regulations. 3. At the end of 2022, unrestricted net position balance increased by $5,324,039 from $(2,425,278) to $2,898,761. The County's governmental funds reported total ending fund balance of $22,694,246. This compares to the prior year ending fund balance of $20,674,611 showing an increase of $2,019,635, or 10% during the current year. At the end of 2022, unassigned fund balance for the County's governmental funds was $12,638,728. OVERVIEW OF THE FINANCIAL STATEMENTS The Management's Discussion and Analysis introduces the County's basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The basic financial statements present two different views of the County through the use of government – wide statements and fund financial statements. This report contains other supplemental information that will enhance the reader's understanding of the financial condition of the County. Government-wide Financial Statements The government-wide financial statements are designed to provide the reader with a broad overview of the County's finances and are more comparable to the financial statements of private-sector businesses. The government-wide statements provide both short and long-term information about the County's financial status as a whole. Government-wide statements report the County's net position and how it has changed. Net position is the difference between the 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 government-wide statements is the Statement of Net Position. This statement presents information that includes all of the County's assets and liabilities, with the difference reported as total net position. 4 ---PAGE BREAK--- The second government-wide statement is the Statement of Activities which indicates how the County's net position changed during the current fiscal year. This report is designed to show the financial reliance of the County's activities and functions on revenues provided by County taxpayers. The government-wide statements are divided into governmental activities, business-type activities, and component units. Governmental activities include most of the County's basic services such as general administration, public safety, public works, court systems, culture and recreation, health and welfare, and housing and development. Property taxes, sales taxes, and state and federal grants finance most of these activities. Business type activities are those that the County charges customers to provide. These include water services and the Pickens County Airport. Component Units for the County include the Development Authority and the Pickens County Department of Public Health. Separate financial statements are issued for both component units. See pages 30-31 of the financial statements for additional information. Fund Financial Statements Pickens County, like all other governmental entities in Georgia, uses fund accounting to ensure compliance with finance-related laws and regulations. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the funds of the County can be classified as governmental funds, proprietary funds, or fiduciary funds. Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. These funds focus on how assets can readily be converted into cash and the amount of funds left at year-end that will be available for spending in the next fiscal year. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps determine if there are financial resources available to finance the County's programs. Most of the County's basic services are accounted for in governmental funds. Proprietary funds are used to report the functions presented as business-type activities in the government-wide financial statements. Pickens County uses enterprise funds to account for the Water Department and the Airport. Fiduciary Funds are used to account for resources held for the benefit of parties outside the Government. Pickens County's fiduciary funds are considered agency funds. Notes to the Financial Statements provide additional information that is essential to a full understanding of the data presented in both the government-wide and fund financial statements. The notes to the financial statements begin on page 32 of this report. 5 ---PAGE BREAK--- GOVERNMENT-WIDE FINANCIAL ANALYSIS The table below presents the County's condensed Statement of Net Position. Comparison analysis is made from the year ended December 31, 2022, to the year ended December 31, 2021, as required by GASB Statement No. 34. Comparative Schedule of Net Position 2022* 2021* 2022* 2021* 2022* 2021* Assets: Current Assets 29,937,206 $ 23,358,721 $ (1,835,096) $ (3,600,618) $ 28,102,110 $ 19,758,103 $ Noncurrent Assets 45,087,513 45,700,393 21,615,219 21,943,461 66,702,732 67,643,854 Total Assets 75,024,719 69,059,114 19,780,123 18,342,843 94,804,842 87,401,957 Deferred Outflows of Resources 2,589,957 2,943,571 430,385 91,804 3,020,342 3,035,375 Liabilities: Current Liabilities 6,582,641 3,104,014 1,987,836 1,448,750 8,570,477 4,552,764 Noncurrent Liabilities 11,919,115 13,148,107 12,511,991 11,850,459 24,431,106 24,998,566 Total Liabilities & Deffered Inflows 18,501,756 16,252,121 14,499,827 13,299,209 33,001,583 29,551,330 Deferred Inflows of Resources 1,876,353 1,195,520 102,292 36,098 1,978,645 1,231,618 Net Position: Net Investment in capital assets 42,361,620 42,478,827 7,976,420 9,336,236 50,338,040 51,815,063 Restricted 9,607,455 10,264,599 ‐ ‐ 9,607,455 10,264,599 Unrestricted 5,267,492 1,811,618 (2,368,731) (4,236,896) 2,898,761 (2,425,278) Total Net Position 57,236,567 $ 54,555,044 $ 5,607,689 $ 5,099,340 $ 62,844,256 $ 59,654,384 $ Governmental Activities Business‐Type Activities Total Primary Government December 31 *Detailed information on the County's statement of net position can be found on pages 12-13. Over time, net position serves as a useful indicator of a government's financial position. The County's combined net position (government and business-type activities) totaled $62,844,256 on December 31, 2022, compared to $59,251,983 on December 31, 2021. The total increase was $3,592,872. The largest portion of net position, $50,338,040 reflects the County's investment in capital assets (land, buildings, machinery and equipment) less accumulated depreciation and any related debt still outstanding that was issued to acquire those assets. The County uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending. Although the County's investments in capital assets are reported net of outstanding debt, the resources needed to repay the debt must be provided by other sources as the capital assets cannot be liquidated to pay the liabilities. The County has $9,607,455 (15%) of restricted net position that is subject to external restrictions, constitutional provisions, or enabling legislation on how they can be used. The remaining portion of net position represents $2,898,761 of unrestricted net position. The table below presents the County's condensed Statement of Activities for the year ended December 31, 2022, with comparative amounts for the year ended December 31, 2021. 6 ---PAGE BREAK--- Comparative Schedule of Changes in Net Position 2022* 2021* 2022* 2021* 2022* 2021* Program Revenue: Charges for Services 5,126,952 $ 5,064,930 $ 4,421,778 $ 3,710,825 $ 9,548,730 $ 8,775,755 $ Operating Grants 5,729,922 6,513,848 ‐ ‐ 5,729,922 6,513,848 Capital Grants: 31,019 760,701 970,459 98,000 1,001,478 858,701 General Revenue: Property Taxes 17,412,502 14,547,046 ‐ ‐ 17,412,502 14,547,046 Sales Taxes 14,375,222 12,338,995 ‐ ‐ 14,375,222 12,338,995 Intangible 444,828 574,757 ‐ ‐ 444,828 574,757 Insurance Premium Taxes 2,210,705 1,906,424 ‐ ‐ 2,210,705 1,906,424 Other 1,105,540 902,890 ‐ ‐ 1,105,540 902,890 Interest 22,002 11,706 10 ‐ 22,012 11,706 Other 277,708 457,791 1,072 21,790 278,780 479,581 Gainon sale of capital Asset 4,500 ‐ 4,900 ‐ 9,400 ‐ TOTAL REVENUES 46,740,900 43,079,088 5,398,219 3,830,615 52,139,119 46,909,703 Program Expenses: General Government 4,913,551 4,777,527 ‐ ‐ 4,913,551 4,777,527 Judicial 7,034,639 6,516,918 ‐ ‐ 7,034,639 6,516,918 Public Safety 16,839,952 17,484,934 ‐ ‐ 16,839,952 17,484,934 Public Works 10,929,737 7,793,817 ‐ ‐ 10,929,737 7,793,817 Health and Welfare 295,209 257,349 ‐ ‐ 295,209 257,349 Culture and Recreation 1,274,562 1,332,941 ‐ ‐ 1,274,562 1,332,941 Housing and Development 1,204,813 1,011,310 ‐ ‐ 1,204,813 1,011,310 Interest 23,105 28,771 ‐ ‐ 23,105 28,771 Water and Sewer ‐ ‐ 3,825,534 3,199,884 3,825,534 3,199,884 Airport ‐ ‐ 2,205,744 1,001,041 2,205,744 1,001,041 TOTAL EXPENSES 42,515,568 39,203,567 6,031,278 4,200,925 48,546,846 43,404,492 Change in Net Position Before Transfers 4,225,332 3,875,521 (633,059) (370,310) 3,592,273 3,505,211 Transfers (1,141,408) (359,980) 1,141,408 359,980 ‐ ‐ Changes in Net Position 3,083,924 3,515,541 508,349 (10,330) 3,592,273 3,505,211 Net Position ‐ beginning (original) 54,555,044 49,914,580 5,099,340 5,109,670 59,654,384 55,024,250 Prior period adjustment (402,401) 1,124,923 ‐ ‐ (402,401) 1,124,923 Net Position ‐ beginning (restated) 54,152,643 51,039,503 5,099,340 5,109,670 59,251,983 56,149,173 Ending Net Position 57,236,567 $ 54,555,044 $ 5,607,689 $ 5,099,340 $ 62,844,256 $ 59,654,384 $ Governmental Activities Business‐type Activities Total Primary Government *Detailed information on the County's statement of activities can be found on page 14. Governmental Activities General Revenues such as property taxes, insurance premium tax and other taxes, continue as the main source of revenue for governmental activities which totaled $35,853,007 in 2022 compared to $30,739,608 in 2021. This change is an increase of 17%. Governmental Activities Expenses by function as reflected in the table above show that during 2022, the County expended 40% for Public Safety, 17% for Judicial, 26% for Public Works, 12% for General Government, 3% for Culture and Recreation, 3% for Housing and Development, and less than 1% for Health and Welfare and for Interest on Long-term debt. As a comparative, during fiscal year 2021, the County expended 45% for Public Safety, 17% for Judicial, 20% for Public Works, 12% for General Government, 3% for Culture and Recreation, 3% for Housing and Development, and less than 1% for Health and Welfare and for Interest on Long-term debt. 7 ---PAGE BREAK--- Business-type activities increased the County's net position by $508,349. Revenues by Source Government-Wide Activities *Due to rounding, charts may not always equal 100% Expenses by Function Government-Wide Activities *Due to rounding, charts may not always equal 100% 8 ---PAGE BREAK--- FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the County's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. This information is useful in assessing the Government's financing requirements. Specifically, unassigned fund balance can be a useful measure of a government's net resources available for spending at the end of the fiscal year. The major governmental funds are the General Fund, SPLOST, and the American Rescue Plan Act Grant (ARPA). The County's total governmental funds reported an ending fund balance of $22,694,246 This compares to the prior year ending fund balance of $20,272,210, an increase of $2,422,036 during the current year. 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 General Fund reported ending fund balance of $12,983,852. This compares to the prior year ending fund balance of $10,468,413,an increase of $2,497,439 during the current year. At the end of fiscal year 2022, unassigned fund balance for the County's governmental funds was $12,638,728. The County's SPLOST Fund is reported as a major fund. The fund balance of the SPLOST fund decreased by $676,205 during the current fiscal year. Collections for 2020 SPLOST began on July 1, 2020. Based on the approved 2020 SPLOST referendum, the majority of the 2020 SPLOST revenues are allocated for capital road projects and public safety. The SPLOST fund has an ending fund balance of $8,577,239 which is restricted for capital projects outlined in the 2020 SPLOST referendum. The County's American Rescue Plan Act Grant Fund is reported as a major fund. The fund has no fund balance, all collections are reported as unearned revenue in the amount of $3,600,452. This balance will remain in unearned revenue until approved expenditures are spent to offset against revenue on the statement of changes in fund balances. In 2022, governmental revenues increased $1,497,889 from 2021. This increase is primarily due to activity in the General Fund related to an increase in revenues from taxes, licenses and permits and charges for services. There was an 8% increase in revenues in the SPLOST fund. The County’s basic governmental fund financial statements are presented on pages 15-23 of this report. 9 ---PAGE BREAK--- Revenues by Source Fund Level – Governmental Activities Proprietary funds. When the County charges customers for it services it provides – these services are generally reported in the County’s proprietary fund statements. The proprietary funds are prepared using the same accrual basis of accounting as the government-wide financial statements. The County’s proprietary fund statements provide the same type of information found in the government-wide financial statements but in more detail. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The County's capital assets for governmental and business-type activities as of December 31, 2022, total $66,702,732 (net of accumulated depreciation). These assets include land, land improvements, infrastructure, buildings, machinery and equipment, furniture and fixtures, vehicles, and construction in progress. 2022 2021 * 2022 2021 * 2022 2021 Land and improvements 6,508,793 $ 6,535,415 $ 1,914,092 $ 1,942,351 $ 8,422,885 $ 8,477,766 $ Construction in progress 913,772 75,649 2,293,804 9,395,356 3,207,576 9,471,005 Buildings 28,428,834 29,269,821 3,289,519 1,200,972 31,718,353 30,470,793 Machinery & equipment 1,999,533 2,368,794 515,093 535,840 2,514,626 2,904,634 Vehicles 3,002,396 2,712,317 143,732 104,750 3,146,128 2,817,067 Infrastructure 4,234,185 4,738,397 13,458,979 8,764,192 17,693,164 13,502,589 Total Assets 45,087,513 45,700,393 21,615,219 21,943,461 66,702,732 67,643,854 Governmental Activities Business‐Type Activities Total Primary Government (Net of Depreciation) Pickens County Assets Detailed information on the County's capital assets can be found in Note 8 of the basic financial statements. 10 ---PAGE BREAK--- Long-term Debt. During 2022, the long-term debt of Pickens County's governmental activities decreased $525,335. The notes payable category increased due to the expansion of the water lines and airport. The net pension liability decreased $788,575, and the net OPEB obligation increased by $186,103. Long-term debt increased in business-type activities in the amount of $661,532, this was due to the increase in notes payable and also in net pension liability and OPEB liability. 2022 2021 2022 2021 2022 2021 Bonds payable ‐ $ ‐ $ 10,594,729 $ 10,529,974 $ 10,594,729 $ 10,529,974 $ Notes from direct borrowings 2,533,213 2,921,263 2,149,255 1,910,329 4,682,468 4,831,592 Claims 243,658 152,610 ‐ ‐ 243,658 152,610 Landfill closure/postclosure 450,000 450,000 ‐ ‐ 450,000 450,000 Compensated Absences 433,647 362,136 17,768 18,821 451,415 380,957 Net pension liability 7,669,172 8,674,912 477,193 260,028 8,146,365 8,934,940 Net OPEB liability 1,290,112 1,228,736 175,924 51,197 1,466,036 1,279,933 Total Outstanding Debt 12,619,802 $ 13,789,657 $ 13,414,869 $ 12,770,349 $ 26,034,671 $ 26,560,006 $ Pickens County's Outstanding Debt Bonds Payable, Notes from Direct Borrowings, Claims, and Other Debts Governmental Activities Business‐Type Activities Total Primary Government Additional information regarding Pickens County’s long-term debt and benefit plans can be found in Note 9 on pages 53 through 60 and Note 10 on pages 60 through 61 of this report. ECONOMIC FACTORS AND THE 2021 BUDGET  The 2022 millage rate decreased from 7.489 to 7.4380 per $1,000 of valuation. The 2022 millage rate was a decrease of 0.051%, however the 2022 tax digest reflected an increase of $215,537,263 in overall valuation. The 2022 total County taxes levied increased $1,521,283 as compared to 2021.  The 2023 budget was approved and adopted by the Board of Commissioners on December 1, 2022. The 2023 operating budget increased from $33,708,038 to $32,856,476, a decrease of $851,562. The majority of the revenue increase is in property and sales tax revenues, title ad valorem tax, license and permit fees. The majority of expenditure increase is in purchased services and salaries and benefits.  budgetary reports are provided to all department heads, elected officials and the Board of Commissioners. Pickens County management continues to monitor revenue collection rates and control budgetary spending in an effort to provide services at or above current levels without further burdening the county taxpayers. REQUESTS FOR INFORMATION This report is designed to provide the reader with a general overview of the County's finances and demonstrate Management's commitment to public accountability. Questions concerning any of the information found in this report or requests for additional information should be directed to Charlene Bunch, Finance Director for Pickens County Board of Commissioners, 1266 East Church Street, Suite 175, Jasper, Georgia 30143. 11 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- ASSETS Current assets Cash and cash equivalents $ 22,075,993 $ 800 $ 22,076,793 $ 1,551,357 Receivables (net) Accounts 393,855 333,414 727,269 0 Intergovernmental 974,758 91,004 1,065,762 0 Taxes 3,793,517 0 3,793,517 0 Inventories 27,202 91,321 118,523 470 Note receivable 0 0 0 322,000 Prepaid items 117,547 0 117,547 0 Restricted assets Cash and cash equivalents 202,699 0 202,699 0 Internal balances 2,351,635 (2,351,635) 0 0 Total current assets 29,937,206 (1,835,096) 28,102,110 1,873,827 Noncurrent assets Notes receivable 0 0 0 1,848,000 Net OPEB asset 0 0 0 23,488 Capital assets Non-depreciable 6,605,768 4,010,669 10,616,437 0 Depreciable (net) 38,481,745 17,604,550 56,086,295 40,028 Total noncurrent assets 45,087,513 21,615,219 66,702,732 1,911,516 Total assets 75,024,719 19,780,123 94,804,842 3,785,343 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 2,174,100 310,308 2,484,408 126,036 Deferred outflows of resources - OPEB 415,857 120,077 535,934 30,761 Total deferred outflows of resources 2,589,957 430,385 3,020,342 156,797 LIABILITIES Current liabilities Payables Accounts 1,640,327 971,459 2,611,786 14,499 Retainages 87,728 66,351 154,079 0 Interest 0 11,937 11,937 0 Accrued salaries and expenses 497,781 18,871 516,652 0 Compensated absences 303,553 12,438 315,991 11,979 Due to others 43,486 0 43,486 167,543 Unearned revenue 3,612,632 16,340 3,628,972 0 Notes payable 397,134 22,420 419,554 0 Bonds payable 0 868,020 868,020 86,688 Total current liabilities 6,582,641 1,987,836 8,570,477 280,709 PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION December 31, 2022 Primary Government Governmental Business-type Component Activities Activities Total Units The accompanying notes are an integral part of these financial statements. Exhibit A-1, continued 12 ---PAGE BREAK--- Noncurrent liabilities Compensated absences $ 130,094 $ 5,330 $ 135,424 $ 7,985 Net pension liability 7,669,172 477,193 8,146,365 226,663 Net OPEB liability 1,290,112 175,924 1,466,036 25,397 Claims and judgements payable 243,658 0 243,658 0 Notes payable 2,136,079 2,126,835 4,262,914 0 Bonds payable 0 9,726,709 9,726,709 1,330,303 Post-closure care costs 450,000 0 450,000 0 Total noncurrent liabilities 11,919,115 12,511,991 24,431,106 1,590,348 Total liabilities 18,501,756 14,499,827 33,001,583 1,871,057 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 1,798,475 101,014 1,899,489 769,334 Deferred inflows of resources - OPEB 77,878 1,978 79,856 123,801 Total deferred inflows of resources 1,876,353 102,992 1,979,345 893,135 NET POSITION Net investment in capital assets 42,361,620 7,976,420 50,338,040 40,028 Restricted for: Judicial 877,770 0 877,770 0 Public safety 152,446 0 152,446 0 Health and welfare 0 0 0 426,592 Capital outlay 8,577,239 0 8,577,239 0 Unrestricted 5,267,492 (2,368,731) 2,898,761 711,328 Total net position $ 57,236,567 $ 5,607,689 $ 62,844,256 $ 1,177,948 Activities Activities Total Units December 31, 2022 Primary Government Governmental Business-type Component STATEMENT OF NET POSITION PICKENS COUNTY, GEORGIA The accompanying notes are an integral part of these financial statements. Exhibit A-1, continued 13 ---PAGE BREAK--- Operating Charges for Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Primary government Governmental activities General Government $ 4,913,551 $ 1,032,444 $ 578,307 $ 0 $ (3,302,800) Judicial 7,034,639 191,897 4,131,000 0 (2,711,742) Public Safety 16,839,952 2,866,006 589,229 15,000 (13,369,717) Public Works 10,929,737 865,255 276,211 16,019 (9,772,252) Health and Welfare 295,209 0 73,464 0 (221,745) Culture and Recreation 1,274,562 149,430 6,066 0 (1,119,066) Housing and Development 1,204,813 21,920 75,645 0 (1,107,248) Interest on long-term debt 23,105 0 0 0 (23,105) Total governmental activities 42,515,568 5,126,952 5,729,922 31,019 (31,627,675) Business-type activities Water and Sewer 3,825,534 3,410,861 0 3,926 (410,747) Airport 2,205,744 1,010,917 0 966,533 (228,294) Total business-type activities 6,031,278 4,421,778 0 970,459 (639,041) Total primary government 48,546,846 9,548,730 5,729,922 1,001,478 (32,266,716) Component Units Pickens County Development Authority Housing and Development 61,655 126,000 0 0 64,345 Pickens County Health Department Health and Welfare 629,919 453,885 246,045 0 70,011 Total component units 691,574 579,885 246,045 0 134,356 Change in net position Net (expense) revenue $ (31,627,675) $ (639,041) $ (32,266,716) $ 134,356 General revenues Taxes Property 17,412,502 0 17,412,502 0 Sales 14,375,222 0 14,375,222 0 Intangible 444,828 0 444,828 0 Insurance premium 2,210,705 0 2,210,705 0 Other 1,105,540 0 1,105,540 299 Interest and investment revenue 22,002 10 22,012 0 Payments from Pickens County 0 0 0 12,700 Other 277,708 1,072 278,780 0 Gain on sale of capital asset 4,500 4,900 9,400 0 Transfers (1,141,408) 1,141,408 0 0 Total general revenues and transfers 34,711,599 1,147,390 35,858,989 12,999 Change in net position 3,083,924 508,349 3,592,273 147,355 Net position - beginning (original) 54,555,044 5,099,340 59,654,384 1,030,593 Prior period adjustment (402,401) 0 (402,401) 0 Net position - beginning (restated) 54,152,643 5,099,340 59,251,983 0 Net position - ending $ 57,236,567 $ 5,607,689 $ 62,844,256 $ 1,177,948 Primary Government PICKENS COUNTY, GEORGIA STATEMENT OF ACTIVITIES For the year ended December 31, 2022 Program Revenues Capital Net Grants and (Expense) Contributions Revenue Governmental Business-Type Component Activities Activities Total Units The accompanying notes are an integral part of these financial statements. Exhibit A-2 14 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- ASSETS Cash and cash equivalents $ 15,073,840 $ 0 Receivables (net) Accounts 264,533 0 Intergovernmental 174,827 0 Taxes 2,970,221 0 Prepaid items 117,547 0 Inventories 27,202 0 Due from other funds 2,567,112 3,600,452 Restricted assets Cash and cash equivalents 202,699 0 Total assets $ 21,397,981 $ 3,600,452 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Payables Accounts $ 447,194 $ 0 Retainage 0 0 Accrued salaries and expenses 477,415 0 Unearned revenue 12,180 3,600,452 Due to others 0 0 Due to other funds 6,116,334 0 Total liabilities 7,053,123 3,600,452 Deferred inflows of resources Unavailable revenue - property taxes 1,361,006 0 Fund balances Nonspendable: Prepaid items 117,547 0 Inventories 27,202 0 Restricted for: Judicial 200,375 0 Public Safety 0 0 Capital outlay 0 0 Assigned for: Public Safety 0 0 Housing and Development 0 0 Unassigned 12,638,728 0 Total fund balances 12,983,852 0 Total liabilities, deferred inflows of resources, and fund balances $ 21,397,981 $ 3,600,452 General Act Grant Rescue Plan American PICKENS COUNTY, GEORGIA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2022 The accompanying notes are an integral part of these financial statements. Exhibit A-3, continued 15 ---PAGE BREAK--- $ 6,109,433 $ 892,720 $ 22,075,993 0 129,322 393,855 0 799,931 974,758 787,824 35,472 3,793,517 0 0 117,547 0 0 27,202 2,510,785 5,097 8,683,446 0 0 202,699 $ 9,408,042 $ 1,862,542 $ 36,269,017 $ 743,075 $ 450,058 $ 1,640,327 87,728 0 87,728 0 20,366 497,781 0 0 3,612,632 0 43,486 43,486 0 215,477 6,331,811 830,803 729,387 12,213,765 0 0 1,361,006 0 0 117,547 0 0 27,202 0 677,395 877,770 0 152,446 152,446 8,577,239 0 8,577,239 0 127,769 127,769 0 175,545 175,545 0 0 12,638,728 8,577,239 1,133,155 22,694,246 $ 9,408,042 $ 1,862,542 $ 36,269,017 Governmental Funds Totals SPLOST Nonmajor The accompanying notes are an integral part of these financial statements. Exhibit A-3, continued 16 ---PAGE BREAK--- Total fund balance - total governmental funds $ 22,694,246 Amounts reported for governmental activities in the statement of net position are different because: Some assets are not financial resources and, therefore, are not reported in the funds. These are: Capital assets, net of accumulated depreciation 45,087,513 Long-term assets (receivables) are not available to pay current period expenditures and, therefore, are reported as unavailable revenue in the funds. These are property taxes. 1,361,006 Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. These are: Deferred outflows of resources: Deferred outflows related to pensions $ 2,174,100 Deferred outflows related to other post-employment benefits 415,857 Deferred inflows of resources: Deferred inflows related to pensions (1,798,475) Deferred inflows related to other post-employment benefits (77,878) 713,604 Long-term liabilities are not due and payable in the current period and are not reported in the funds. These are: Notes payable 2,533,213 Post-closure care costs 450,000 Compensated absences 433,647 Claims and judgements payable 243,658 Net pension liability 7,669,172 Net OPEB liability 1,290,112 (12,619,802) Net position of governmental activities $ 57,236,567 PICKENS COUNTY, GEORGIA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2022 The accompanying notes are an integral part of these financial statements. Exhibit A-4 17 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- REVENUES Taxes $ 25,488,132 $ 0 Licenses and permits 647,063 0 Fines, fees and forfeitures 256,016 0 Charges for services 3,182,445 0 Intergovernmental 1,703,594 431,182 Contributions 31,742 0 Investment 19,543 0 Other 277,230 0 Total revenues 31,605,765 431,182 EXPENDITURES Current General government 4,347,536 47,777 Judicial 3,492,769 0 Public safety 14,215,590 0 Public works 3,918,210 108,363 Health and welfare 265,329 0 Culture and recreation 1,206,454 0 Housing and development 661,067 139,454 Capital outlay 0 0 Intergovernmental 0 0 Debt service 0 0 Total expenditures 28,106,955 295,594 Excess (deficiency) of revenues over (under) expenditures 3,498,810 135,588 Other financing sources (uses) Transfers in 34,621 0 Transfers out (616,577) (135,588) Proceeds from sale of capital assets 6,650 0 Total other financing sources (uses) (575,306) (135,588) Net change in fund balance 2,923,504 0 Fund balances, January 1(original) 10,486,413 0 Prior period adjustment (426,065) 0 Fund balances, January 1 (restated) 10,060,348 0 Fund balances, December 31 $ 12,983,852 $ 0 Rescue Plan American General Act Grant PICKENS COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the year ended December 31, 2022 The accompanying notes are an integral part of these financial statements. Exhibit A-5, continued 18 ---PAGE BREAK--- Nonmajor Governmental Funds Totals $ 8,458,226 $ 463,080 $ 34,409,438 0 0 647,063 0 217,975 473,991 0 1,018,420 4,200,865 135,409 3,259,111 5,529,296 0 34,747 66,489 13,778 2,459 35,780 0 478 277,708 8,607,413 4,996,270 45,640,630 0 0 4,395,313 0 3,637,754 7,130,523 0 1,400,236 15,615,826 0 0 4,026,573 0 365,499 630,828 0 0 1,206,454 0 0 800,521 6,622,339 0 6,622,339 1,539,397 0 1,539,397 116,062 0 116,062 8,277,798 5,403,489 42,083,836 329,615 (407,219) 3,556,794 0 616,577 651,198 (1,005,820) (34,621) (1,792,606) 0 0 6,650 (1,005,820) 581,956 (1,134,758) (676,205) 174,737 2,422,036 9,253,444 934,754 20,674,611 0 23,664 (402,401) 9,253,444 958,418 20,272,210 $ 8,577,239 $ 1,133,155 $ 22,694,246 SPLOST The accompanying notes are an integral part of these financial statements. Exhibit A-5, continued 19 ---PAGE BREAK--- Net change in fund balances - total governmental funds $ 2,422,036 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. Capital outlays $ 2,352,306 Depreciation (2,945,670) (593,364) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds These include recognition of unavailable property taxes. 1,139,360 In the statement of activities, the loss on the disposal of capital assets is reported, whereas in the governmental funds, the proceeds from the sale of capital assets increase financial resources. Cost of assets disposed (1,749,743) Related accumulated depreciation 1,713,084 (36,659) Contributions of capital assets increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources. Cost of assets 24,314 Related accumulated depreciation (7,170) 17,144 The proceeds of debt issuance provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. In addition, interest on long-term debt is not recognized in the governmental funds until due, but is recognized in the statement of activities as it accrues. Debt principal payments 388,050 Governmental funds report pension contributions as expenditures. However, in the statement of activities, the cost of pension benefits earned, net of employee contributions is reported as pension expense. Pension contributions 1,308,299 Cost of benefits earned net of employee contributions (1,396,797) (88,498) Other post employment benefits are reported in the statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. OPEB contributions 49,246 Cost of benefits earned net of employee contributions (50,832) (1,586) Some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in governmental funds. Claims and judgements payable (91,048) Compensated absences (71,511) (162,559) Change in net position of governmental activities $ 3,083,924 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES The accompanying notes are an integral part of these financial statements. Exhibit A-6 20 ---PAGE BREAK--- REVENUES Taxes $ 22,343,806 $ 23,624,206 $ 25,488,132 $ 1,863,926 Licenses and permits 563,555 563,555 647,063 83,508 Fines, fees and forfeitures 270,400 270,400 256,016 (14,384) Charges for services 3,744,023 3,744,023 3,182,445 (561,578) Intergovernmental 1,516,730 1,516,730 1,703,594 186,864 Investment 10,100 10,100 19,543 9,443 Contributions 34,500 34,500 31,742 (2,758) Other 283,189 283,189 277,230 (5,959) Total revenues 28,766,303 30,046,703 31,605,765 1,559,062 EXPENDITURES Current General Government Administration 726,787 731,787 731,780 7 Commission Board 195,589 195,589 174,630 20,959 County clerk 212,829 212,829 158,649 54,180 Elections 440,831 512,831 512,510 321 Finance 432,787 432,787 384,525 48,262 Legal 180,000 180,000 171,912 8,088 Human Resources 175,773 195,773 195,573 200 Tax Commissioner 787,034 787,034 682,033 105,001 Tax Assessor 669,967 697,967 697,409 558 Board of Equalization 16,658 16,658 13,920 2,738 Buildings 660,545 660,545 595,243 65,302 Agencies 30,000 30,000 29,352 648 Judicial Administration 152,863 153,463 153,391 72 Superior Court 241,608 241,608 212,431 29,177 Clerk of Superior Court 702,064 720,064 719,188 876 District Attorney 635,042 635,042 463,305 171,737 Magistrate Court 483,589 483,589 395,539 88,050 Probate Court 528,855 528,855 464,016 64,839 Juvenile Court 411,011 418,011 416,922 1,089 Public Defender 691,620 691,620 667,977 23,643 Public Safety Sheriff department 4,620,444 5,145,444 5,125,986 19,458 Jail operations 2,753,628 3,113,628 3,108,818 4,810 Court services 131,351 131,351 109,174 22,177 School resource officers 642,135 642,135 598,661 43,474 Fire Department 4,509,238 4,677,238 4,676,508 730 Coroner 71,102 72,802 72,756 46 Animal Control 315,664 315,664 252,152 63,512 Emergency Management 160,520 160,520 111,069 49,451 County Marshall 162,694 162,694 160,466 2,228 Public Works Roads and walkways 2,681,393 2,681,393 2,552,603 128,790 Solid waste 1,042,062 1,110,062 1,109,513 549 Maintenance and shop 292,433 292,433 256,094 36,339 Health and Welfare Health department 2,750 2,750 822 1,928 Public health and welfare 115,778 115,778 105,381 10,397 Senior center 24,300 24,300 24,199 101 Transportation services 140,153 140,153 134,927 5,226 Budget Variance with Original Final Actual Final Budget For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP) AND ACTUAL The accompanying notes are an integral part of these financial statements. Exhibit A-7, continued 21 ---PAGE BREAK--- EXPENDITURES (continued) Current Culture and Recreation Parks and recreation $ 798,150 $ 805,250 $ 805,204 $ 46 Library 402,250 402,250 401,250 1,000 Housing and Development Extension office 73,634 73,634 59,429 14,205 Planning and Zoning 474,798 474,798 452,410 22,388 Economic Development 178,194 178,194 149,228 28,966 Total expenditures 27,968,123 29,248,523 28,106,955 1,141,568 Excess (deficiency) of revenues over (under) expenditures 798,180 798,180 3,498,810 2,700,630 Other financing sources (uses) Transfers in 31,208 0 34,621 (34,621) Transfers out (739,467) (708,259) (616,577) (91,682) Proceeds from sale of capital assets 2,150 2,150 6,650 (4,500) Contingency (92,071) (92,071) 0 (92,071) Total other financing sources (uses) (798,180) (798,180) (575,306) (222,874) Net change in fund balances 0 0 2,923,504 2,923,504 Fund balances, January 1 (original) 0 0 10,486,413 10,486,413 Prior period adjustment 0 0 (426,065) (426,065) Fund balances, January 1 (restated) 0 0 10,060,348 10,060,348 Fund balances, December 31 $ 0 $ 0 $ 12,983,852 $ 12,983,852 Budget Variance with Original Final Actual Final Budget For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP) AND ACTUAL The accompanying notes are an integral part of these financial statements. Exhibit A-7, continued 22 ---PAGE BREAK--- REVENUES Intergovernmental $ 431,183 $ 431,183 $ 431,182 $ EXPENDITURES Current General Government Materials and supplies 47,777 47,777 47,777 0 Public Works Materials and supplies 243,950 243,950 108,363 135,587 Housing and Development Contract services 102,964 102,964 81,790 21,174 Capital outlay 36,492 36,492 57,664 (21,172) Total expenditures 431,183 431,183 295,594 135,589 Excess (deficiency) of revenues over (under) expenditures 0 0 135,588 135,588 Other financing sources (uses) Transfers out 0 0 (135,588) (135,588) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 0 0 0 Fund balances, January 1 0 0 0 0 Fund balances, December 31 $ 0 $ 0 $ 0 $ 0 Original Budget Budget Actual Variance Final For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA AMERICAN RESCUE PLAN ACT GRANT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP) AND ACTUAL The accompanying notes are an integral part of these financial statements. Exhibit A-8 23 ---PAGE BREAK--- Totals ASSETS Current assets Cash and cash equivalents $ 800 $ 0 $ 800 Receivables Accounts (net) 317,599 15,815 333,414 Intergovernmental 0 91,004 91,004 Inventories 57,574 33,747 91,321 Total current assets 375,973 140,566 516,539 Noncurrent assets Capital assets Non-depreciable 864,192 3,146,477 4,010,669 Depreciable (net) 8,846,596 8,757,954 17,604,550 Total noncurrent assets 9,710,788 11,904,431 21,615,219 Total assets 10,086,761 12,044,997 22,131,758 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 206,800 103,508 310,308 Deferred outflows of resources - OPEB 69,490 50,587 120,077 Total deferred outflows of resources 276,290 154,095 430,385 LIABILITIES Current liabilities Payables Accounts 137,450 834,009 971,459 Retainages 0 66,351 66,351 Interest 11,937 0 11,937 Accrued salaries and other payroll liabilities 15,810 3,061 18,871 Compensated absences 9,406 3,032 12,438 Due to other funds 1,855,592 496,043 2,351,635 Unearned revenue 0 16,340 16,340 Notes payable 22,420 0 22,420 Bonds payable 555,000 313,020 868,020 Total current liabilities 2,607,615 1,731,856 4,339,471 Noncurrent liabilities Compensated absences 4,031 1,299 5,330 Net pension liability 374,937 102,256 477,193 Net OPEB liability 117,283 58,641 175,924 Notes payable 1,856,329 270,506 2,126,835 Bonds payable 3,620,000 6,106,709 9,726,709 Total noncurrent liabilities 5,972,580 6,539,411 12,511,991 Total liabilities 8,580,195 8,271,267 16,851,462 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 79,368 21,646 101,014 Deferred inflows of resources - OPEB 1,319 659 1,978 Total deferred inflows of resources 80,687 22,305 102,992 NET POSITION Net investment in capital assets 3,657,039 4,319,381 7,976,420 Unrestricted (1,954,870) (413,861) (2,368,731) Total net position $ 1,702,169 $ 3,905,520 $ 5,607,689 Sewer Airport PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION PROPRIETARY FUNDS Business-Type Activities Water and December 31, 2022 The accompanying notes are an integral part of these financial statements. Exhibit A-9 24 ---PAGE BREAK--- Totals OPERATING REVENUES Charges for sales and services $ 3,410,861 $ 1,010,917 $ 4,421,778 Other 1,072 0 1,072 Total operating revenues 3,411,933 1,010,917 4,422,850 OPERATING EXPENSES Costs of sales and services 1,418,012 847,520 2,265,532 Personal services 1,063,818 209,522 1,273,340 Depreciation 701,243 817,593 1,518,836 Total operating expenses 3,183,073 1,874,635 5,057,708 Operating income (loss) 228,860 (863,718) (634,858) Non-operating revenues (expenses) Gain (loss) on capital assets (488,497) 4,900 (483,597) Distribution of capital asset (2,244) 0 (2,244) Interest revenue 0 10 10 Interest expense (151,720) (331,109) (482,829) Total non-operating revenues (expenses) (642,461) (326,199) (968,660) Income (loss) before capital contributions and transfers (413,601) (1,189,917) (1,603,518) Capital contributions Intergovernmental 3,926 966,533 970,459 Net income (loss) before transfers (409,675) (223,384) (633,059) Transfers in (out) Transfers in 205,040 936,368 1,141,408 Change in net position (204,635) 712,984 508,349 Net position, January 1 1,906,804 3,192,536 5,099,340 Net position, December 31 $ 1,702,169 $ 3,905,520 $ 5,607,689 Water and Sewer Airport Business-Type Activities PICKENS COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the year ended December 31, 2022 The accompanying notes are an integral part of these financial statements. Exhibit A-10 25 ---PAGE BREAK--- Totals Cash flows from operating activities: Receipts from customers $ 3,340,773 $ 909,736 $ 4,250,509 Payments to suppliers (1,587,639) (839,509) (2,427,148) Payments to employees (1,024,273) (177,395) (1,201,668) Other receipts 1,072 0 1,072 Net cash provided (used) by operating activities 729,933 (107,168) 622,765 Cash flows from non-capital financing activities: Receipts from other funds 134,123 0 134,123 Receipts from other governments 3,926 0 3,926 Payments to other funds (53,146) (1,686,843) (1,739,989) Net cash provided (used) by non-capital financing activities 84,903 (1,686,843) (1,601,940) Cash flows from capital and related financing activities: Receipts from other funds 205,040 936,368 1,141,408 Receipts from other governments 0 966,534 966,534 Proceeds from sale of capital assets 76,350 4,900 81,250 Acquisition of capital assets (378,588) (550,631) (929,219) Proceeds from notes payable 0 260,757 260,757 Proceeds from bonds payable 0 935,609 935,609 Payment of capital related accounts payable and retainage 0 (100,572) (100,572) Principal payments - bonds payable (543,000) (327,854) (870,854) Principal payments - notes payable (21,831) 0 (21,831) Interest paid (152,807) (331,110) (483,917) Net cash provided (used) by capital and related financing activities (814,836) 1,794,001 979,165 Cash flows from investing activities: Receipts of interest revenue 0 10 10 Net increase (decrease) in cash and cash equivalents 0 0 0 Cash and cash equivalents, January 1 800 0 800 Cash and cash equivalents, December 31 $ 800 $ 0 $ 800 PICKENS COUNTY, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended December 31, 2022 Business-Type Activities Water and Sewer Airport The accompanying notes are an integral part of these financial statements. Exhibit A-11, continued 26 ---PAGE BREAK--- Totals Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 228,860 $ (863,718) $ (634,858) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 701,243 817,593 1,518,836 (Increase) decrease in accounts receivable (70,088) (10,340) (80,428) (Increase) decrease in intergovernmental receivable 0 (91,004) (91,004) (Increase) decrease in inventories (8,185) 19,961 11,776 (Increase) decrease in deferred outflows of resources - pension (127,623) (103,508) (231,131) (Increase) decrease in deferred outflows of resources - OPEB (56,863) (50,587) (107,450) Increase (decrease) in accounts payable (161,442) (11,950) (173,392) Increase (decrease) in unearned revenue 0 163 163 Increase (decrease) in accrued payroll liabilities (1,553) 3,020 1,467 Increase (decrease) in deferred inflows of resources - pension 44,306 21,646 65,952 Increase (decrease) in deferred inflows of resources - OPEB 283 659 942 Increase (decrease) in net pension liability 114,909 102,256 217,165 Increase (decrease) in net OPEB liability 66,086 58,641 124,727 Total adjustments 501,073 756,550 1,257,623 Net cash provided (used) by operating activities $ 729,933 $ (107,168) $ 622,765 Noncash capital and related financing activities: Acquisition of capital assets through accounts payable totaled $828,464. Contribution of capital assets from the Governmental Activities totaled $90,344. Contribution of capital assets to the Governmental Activities totaled $2,244. Business-Type Activities Water and PICKENS COUNTY, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended December 31, 2022 Sewer Airport The accompanying notes are an integral part of these financial statements. Exhibit A-11, continued 27 ---PAGE BREAK--- ASSETS Cash $ 2,341,480 Taxes receivable, net 2,432,578 Total assets 4,774,058 LIABILITIES Due to others 3,251,425 NET POSITION Restricted for individuals, organizations, and other governments $ 1,522,633 Funds PICKENS COUNTY, GEORGIA FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION December 31, 2022 Custodial The accompanying notes are an integral part of these financial statements. Exhibit A-12 28 ---PAGE BREAK--- ADDITIONS Taxes collected for other agencies $ 31,143,595 Court fees collected for other agencies 1,707,804 Court individual cases 422,036 Sheriff fees collected 141,264 Sheriff inmate account deposits 243,219 Total additions 33,657,918 DEDUCTIONS Taxes distributed to other agencies 31,143,595 Court fees distributed to other agencies 1,643,277 Payments to others 165,156 Sheriff fees distributed to other agencies 141,002 Payments from inmates to others 240,174 Total deductions 33,333,204 Change in net position 324,714 Net position, January 1 1,197,919 Net position, December 31 $ 1,522,633 Funds PICKENS COUNTY, GEORGIA FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the year ended December 31, 2022 Custodial The accompanying notes are an integral part of these financial statements. Exhibit A-13 29 ---PAGE BREAK--- Totals ASSETS Current assets Cash and cash equivalents $ 294,364 $ 1,256,993 $ 1,551,357 Receivable (net) Notes 322,000 0 322,000 Inventory 0 470 470 Total current assets 616,364 1,257,463 1,873,827 Noncurrent assets Notes receivable 1,848,000 0 1,848,000 Net OPEB asset 0 23,488 23,488 Capital assets Depreciable (net) 0 40,028 40,028 Total noncurrent assets 1,848,000 63,516 1,911,516 Total assets 2,464,364 1,320,979 3,785,343 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 0 126,036 126,036 Deferred outflows of resources - OPEB 0 30,761 30,761 Total deferred outflows of resources 0 156,797 156,797 LIABILITIES Current liabilities Accounts payable 0 14,499 14,499 Due to others 0 167,543 167,543 Compensated absences 0 11,979 11,979 Bonds payable 86,688 0 86,688 Total current liabilities 86,688 194,021 280,709 Noncurrent liabilities Compensated absences 0 7,985 7,985 Bonds payable 1,330,303 0 1,330,303 Net pension liability 0 226,663 226,663 Net OPEB liability 0 25,397 25,397 Total noncurrent liabilities 1,330,303 260,045 1,590,348 Total liabilities 1,416,991 454,066 1,871,057 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 550,017 219,317 769,334 Deferred inflows of resources - OPEB 0 123,801 123,801 Total deferred inflows of resources 550,017 343,118 893,135 NET POSITION Investment in capital assets 0 40,028 40,028 Restricted for health and welfare 0 426,592 426,592 Unrestricted 497,356 213,972 711,328 Total net position $ 497,356 $ 680,592 $ 1,177,948 PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION December 31, 2022 Authority Department Pickens County Pickens County Development Health The accompanying notes are an integral part of these financial statements. Exhibit A-14 30 ---PAGE BREAK--- Totals Expenses Health and Welfare $ 0 $ 629,919 $ 629,919 Housing and Development 61,655 0 61,655 Total expenses 61,655 629,919 691,574 Program revenues Charges for services 126,000 453,885 579,885 Operating grants and contributions 0 246,045 246,045 Total program revenues 126,000 699,930 825,930 Net (expense) revenue 64,345 70,011 134,356 General revenues Payments from Pickens County 12,700 0 12,700 Investment 299 0 299 Total general revenues 12,999 0 12,999 Change in net position 77,344 70,011 147,355 Net position, January 1 420,012 610,581 1,030,593 Net position, December 31 $ 497,356 $ 680,592 $ 1,177,948 PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF ACTIVITIES For the year ended December 31, 2022 Pickens Authority Department Pickens County County Development Health The accompanying notes are an integral part of these financial statements. Exhibit A-15 31 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 1. Description of Government Unit Pickens County, Georgia (the County) is a political subdivision of the State of Georgia, located 60 miles north of Atlanta, Georgia, and was created by a legislative act in 1853. The County operates under a Commission-Administrator form of government and is governed by three elected Commissioners, governed by state statutes and regulations. There are certain elected officials whose operations are wholly included within the financial records and financial statements of the County. These elected officials include the Sheriff, Tax Commissioner, Probate Court Judge, Magistrate Court Judge, Juvenile Court Judge, Superior Court Judge and Clerk of the Superior Court. The County’s major services include general government, courts, public safety, public works, health and welfare, parks, recreation and culture and planning and community development. 2. Summary of Significant Accounting Policies A. Description of Government-wide Financial 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. All fiduciary activities are reported only in the fund financial statements. The primary government includes governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions. The primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. B. Reporting Entity As required by generally accepted accounting principles, the financial statements of the reporting entity include those of Pickens County (the primary government) and material component units. The component units discussed below are included in the County’s reporting entity because of the significance of their operational and financial relationship with the County. 32 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) B. Reporting Entity, continued In conformity with generally accepted accounting principles, as set forth in Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity, as amended by Statement No. 61, the financial statements of component units have been included either as blended or discretely presented component units. Discretely Presented Component Units – Discretely presented component units are reported in separate columns in the government-wide financial statements to emphasize they are legally separate from the government. Pickens County Health Department – The Health Department works to promote and preserve the health of the citizens of the County. The Health Department’s Board consists of seven members, including a County Commissioner and two of these members are appointed by the County Commissioners. The County has the authority to approve or modify the Health Department’s budgets and the ability to approve environmental health services. The Health Department is reported on a June 30 fiscal year. Complete financial statements for the Health Department may be obtained from its administrative office at 60 Health Jasper Way, Jasper, Georgia, 30143. Pickens County Development Authority – The Development Authority is responsible for promoting industrial and commercial development within Pickens County, Georgia. The Development Authority is governed by a seven-member board. The County Commissioners appoint a voting majority to the Authority’s board and the County has a significant financial relationship with the Authority. Separate financial statements are not prepared for the Pickens County Development Authority. 33 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) C. Basis of Presentation – Government-wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. As discussed earlier, the government has two discretely presented component units that are shown in separate columns in the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. D. Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the government’s funds, including its fiduciary funds. Separate statements for each fund category—governmental and fiduciary—are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The County reports the following major governmental funds: General Fund - The general operating fund of the County is used to account for all financial resources except those required to be accounted for in another fund. American Rescue Plan Act Special Revenue Fund – accounts for the revenues and expenditures of the American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Fund. Special Purpose Local Option Sales Tax Capital Projects Fund – accounts for the proceeds of a 1 percent special purpose local option sales tax for funding various long-term projects. 34 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) D. Basis of Presentation – Fund Financial Statements, continued Water and Sewer Enterprise Fund – This fund is used to account for activities connected with the development, operation and maintenance of water and sewer services in Pickens County. Airport Enterprise Fund – This fund is used to account for activities connected with the development, operation, and maintenance of the Pickens County Airport. The Pickens County Airport Authority provides oversight of capital projects and has delegated operations and long- term debt obligations to Pickens County. Additionally, the County reports the following fund types: Governmental Fund Types Special Revenue Funds – accounts for the proceeds of specific revenue sources that are legally or donor restricted to be expended for specified purposes. Capital Projects Funds – accounts for financial resources to be used for the acquisition or construction of specifically planned projects (other than those financed by proprietary funds). Fiduciary Fund Types Custodial Funds - Custodial funds are fiduciary in nature and are accounted for using the accrual basis of accounting. These funds are used to account for assets that are held for others. During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. 35 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) D. Basis of Presentation – Fund Financial Statements, continued Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the 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. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under leases are reported as other financing sources. 36 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) E. Measurement Focus and Basis of Accounting, continued Property taxes, sales taxes, franchise taxes, licenses, 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. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year- end). All other revenue items are considered to be measurable and available only when cash is received by the government. F. Revenues and Expenditures/Expenses Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. G. Budgetary Information The applicable statues of the State of Georgia require the County to operate under an annual balanced budget adopted by resolution. The County adopts an annual operating budget for all governmental funds except the capital projects funds, which have an adopted project length budget. The budget resolution reflects the total of each department’s appropriation in each fund. The legal level of control (the level at which expenditures may not legally exceed appropriations) for each adopted annual operating budget generally is the department level within each individual fund. Any change in total to a fund or changes between department appropriations within a fund requires approval of the County Commission. 37 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) G. Budgetary Information, continued The budget is adopted on a basis consistent with generally accepted accounting principles, and on the same basis of accounting used by each fund to which the budget applies. The County Commission must also approve budget transfers within departments. The current year original budget was amended during the year. All unencumbered annual appropriations lapse at year-end. Encumbered appropriations are carried forward to the subsequent year automatically. H. Cash, Cash Equivalents, and Investments Cash and cash equivalents include cash on hand, demand deposits, certificates of deposits and deposits with the Georgia Fund 1 the local government investment pool) as well as short- term investments with a maturity date within three months of the date acquired by the County. Currently, 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. Investments are stated at fair value based on quoted market prices. Georgia law authorizes the County to invest in the following type of obligations:  Obligations of the State of Georgia or of any other states  Obligations of the United States Government  Obligations fully insured or guaranteed by the United States Government or United States Government Agency  Obligations of any corporation of the United States Government  Prime bankers’ acceptances  The State of Georgia local government investment pool Georgia Fund 1)  Repurchase agreements  Obligations of the other political subdivisions of the State of Georgia 38 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) I. Intergovernmental Receivables Receivables from state, federal, and local governments are recorded as revenue for the period of the allocation or as earned based on expenditures made for which reimbursement is due. J. Inventories Inventories are valued at cost using the first-in/first out (FIFO) method. The costs of de minimis governmental fund-type inventories are recorded as expenditures at the time of purchase. The County uses the purchase method of accounting for the purchase of materials and supplies or services. These items are charged directly to the expenditure account. K. Prepaid Items Payments made to vendors for services that will benefit periods beyond the current year are recorded as prepaid items. The costs of governmental fund-type prepaid items are recorded as expenditures when consumed rather than when purchased. L. Capital Assets General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in governmental funds. The County reports these assets in the governmental activities column of the government-wide statement of net position but does not report these assets in the government funds balance sheet. All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at acquisition value. The County maintains a capitalization threshold of $5,000 and an estimated useful life of two years or more (excluding infrastructure). All infrastructure is capitalized with a cost of $50,000 and an estimated life of two years or more. The County’s infrastructure consists of roads and bridges. 39 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) L. Capital Assets, continued The County’s entire infrastructure has been reported regardless of acquisition date. Improvements to capital assets are capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are expensed. All reported capital assets are depreciated except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure are estimated based on the County’s historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives: Useful Life in Years Land improvements Site improvements Infrastructure Buildings 12-15 12-15 10-30 25-50 Building improvements Machinery and equipment Furniture and fixtures Intangibles - software Vehicles 10-25 3-15 5-20 5 2-15 M. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County reports deferred outflows of resources related to their defined benefit pension plan and other postemployment benefit plan. 40 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) M. Deferred Outflows/Inflows of Resources continued 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(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The County also reports deferred inflows of resources related to their defined benefit pension plan and other postemployment benefit plan. N. Compensated Absences Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. All compensated absence liabilities include salary-related payments, where applicable. The total compensated absence liability is reported on the government-wide financial statements. Governmental funds report the compensated absence liability only if the benefit has matured (is, unused reimbursable leave still outstanding following an employee’s resignation or retirement) and is expected to be liquidated with expendable available financial resources. 41 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) O. Net Position Flow Assumption Sometimes the County will fund outlays for a particular purpose from both restricted restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. P. Fund Balance Flow Assumption Sometimes the County will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Q. Restricted Assets and Restricted Net Position Restricted assets represent certain resources restricted by funding source or required to be set aside for the repayment of debt. They are maintained in a separate bank account and their use is limited. Restricted net position is equal to the excess of the restricted assets funded from operations over the liabilities to be paid with restricted assets which are due in one year or less. Restricted assets exclude unspent bond proceeds for calculation of restricted net position. 42 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) R. Fund Balances – Governmental Funds Fund equity at the governmental fund financial reporting level is classified as “fund balance.” Fund equity for all other reporting is classified as “net position.” Fund Balance – Generally, fund balance represents the difference between the assets, deferred outflows of resources, liabilities, and deferred inflows of resources under the current financial resources management focus of accounting. 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 purpose for which amounts in those funds can be spent. In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable – includes amounts that cannot be spent because they are either not spendable in form or are legally or contractually required to be maintained intact. All amounts reported by the County as nonspendable at the end of the current year are nonspendable in form. The County has not reported any amounts that are legally or contractually required to be maintained intact. Restricted – includes amounts restricted by external sources (creditors, laws of other governments, etc.) or by constitutional provision or enabling legislation. Committed – includes amounts that can only be used for specific purposes. Committed fund balance is reported pursuant to resolutions passed by the County Commissioners, the County’s highest level of decision making authority, which include the language “committed for the purpose of”. Commitments may be modified or rescinded only through adoption of a subsequent resolution, which shall refer to the original resolution by its number. Assigned – includes amounts that are intended to be used by the County for a specific purpose, but do not meet the definition of restricted or committed fund balance. Intent can only be expressed by the County Commissioners or their designee. Assigned Fund Balance differs from Committed Fund Balance in that assignments do not require a resolution. 43 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) R. Fund Balances – Governmental Funds, continued Unassigned – includes amounts that do not fall into one of the above four categories. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. In addition, any remaining deficits in the County’s governmental funds which remain after all other fund balances have been exhausted are classified as unassigned. S. Net Position Net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources in reporting, which utilizes the economic resources measurement focus. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used the amount that the County has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted using the same definition as used for restricted fund balance as described in the section above. All other net position is reported as unrestricted. T. 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 Pickens County Defined Benefit Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 44 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) U. Other Post-employment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Pickens County Other Post-employment Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. V. Long-Term Obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities under governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Prepaid bond insurance is amortized over the term of the debt. Issuance costs are recognized during the current period. In the fund financial statements, governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. The face amount of debt issued is reported as any other financing source. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. W. Capital Contributions Federal, state and local government assistance in the form of grants that are permanent in nature and restricted for the construction or acquisition of specific property and equipment is recorded as an asset and as program revenue. 45 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) X. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 3. Deposit and Investment Risk Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the County’s deposits may not be returned. The County has no formal policy, but follows the State of Georgia requirement that all deposits be federally insured or fully collateralized. Interest Rate Risk The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk State of Georgia law limits investments to include certificates of deposit, prime bankers’ acceptances, repurchase agreements, direct and agency obligations of the United States, obligations of any corporation of the United States government, obligations of the State of Georgia or other states, obligations of other political subdivisions of the State of Georgia, and pooled investment programs of the State of Georgia. The County has no investment policy that would further limit its investment choices. Concentration of Credit Risk The County has no formal policy on the amount the County may invest in any one issuer. Foreign Currency Risk The County has no investments denominated in a foreign currency. 46 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 4. Accounts Receivable Net accounts receivable at the end of the current year consist of the following: Primary Government: Major Funds General Fund 264,533 $ Water and Sewer Fund 332,931 $ Less: Allowance for Uncollectible (15,332) 317,599 Airport Fund 15,815 Nonmajor Funds E911 129,322 Total primary government 727,269 $ 5. Intergovernmental Receivables Intergovernmental receivables at the end of the current year consist of the following: Primary Government: Major Funds General Fund 174,827 $ Airport Fund 91,004 Nonmajor Funds Special Revenue Funds Restricted Programs 799,931 Total primary government 1,065,762 $ 47 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 6. Property Taxes The County Commissioners levied property taxes on August 29, 2022. Property taxes attach as an enforceable lien on property as of January 1. Property taxes were billed on September 15, 2022, and due on November 18, 2022. The County bills and collects its own property taxes and also collects property taxes for the County Board of Education and the State of Georgia. The County also collects vehicle and mobile home taxes for the cities located in the County and the State of Georgia. Collection of the County’s taxes and for the other governmental agencies is the responsibility of the Tax Commissioner’s Office, which is accounted for in a custodial fund. 7. Interfund Receivables, Payables, and Transfers The balances reported as Due to/Due from resulted from timing differences between the dates that transactions are recorded in the accounting system and payments between the funds are made. A summary of interfund receivables and payables at the end of the current year is as follows: Receivable Fund Payable Fund Amount General Water and Sewer 1,855,592 $ Airport 496,043 Nonmajor Governmental 215,477 American Rescue Plan Act Grant General 3,600,452 SPLOST General 2,510,785 Nonmajor Governmental General 5,097 Total 8,683,446 $ 48 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 7. Interfund Receivables, Payables, and Transfers (continued) A summary of interfund transfers for the current year is as follows: Transfer Out Fund Transfer In Fund Amount General Nonmajor Governmental 616,577 $ American Rescue Plan Act Grant Water and Sewer 135,588 SPLOST Water and Sewer 69,452 Airport 936,368 Nonmajor Governmental General 34,621 Total 1,792,606 $ Interfund balances at the end of the current year represent charges for services or reimbursable expenses. These remaining balances resulted from the time lag between the dates that interfund goods or services are provided or reimbursable expenditures occur, transactions are recorded in the accounting period, and payments between funds are made. The County expects to repay all interfund balances within one year. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. The interfund receivables in the SPLOST Capital Project Fund are for intergovernmental revenues recorded in the General Fund in prior years. The County’s General Fund plans to pay the interfund balance during the upcoming fiscal years. 49 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 8. Capital Assets Capital asset activity for the primary government for the current year was as follows: Governmental activities Non-depreciable assets Land $ 5,691,996 $ 0 $ 0 $ 5,691,996 Construction in progress 75,649 913,772 (75,649) 913,772 Total non-depreciable assets 5,767,645 913,772 (75,649) 6,605,768 Depreciable assets Land improvements 1,571,096 38,219 (119,454) 1,489,861 Buildings and improvements 40,351,096 116,113 (18,000) 40,449,209 Machinery and equipment 9,338,097 333,521 (1,509,360) 8,162,258 Vehicles 8,648,973 1,050,644 (82,929) 9,616,688 Infrastructure 10,547,196 0 (20,000) 10,527,196 Total depreciable assets 70,456,458 1,538,497 (1,749,743) 70,245,212 Less accumulated depreciation Land improvements (727,677) (58,850) 113,463 (673,064) Buildings and improvements (11,086,170) (943,218) 9,013 (12,020,375) Machinery and equipment (6,969,303) (685,757) 1,492,335 (6,162,725) Vehicles (5,931,762) (765,858) 83,328 (6,614,292) Infrastructure (5,808,799) (499,157) 14,945 (6,293,011) Total accumulated depreciation (30,523,711) (2,952,840) 1,713,084 (31,763,467) Total depreciable assets, net 39,932,747 (1,414,343) (36,659) 38,481,745 Governmental activities capital assets, net $ 45,700,392 $ (500,571) $ (112,308) $ 45,087,513 Beginning Balance Increases Decreases Ending Balance 50 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 8. Capital Assets (continued) Business-type Activities Non-depreciable assets Land $ 1,716,865 $ 0 $ 0 $ 1,716,865 Construction in progress 9,395,356 1,446,599 (8,548,151) 2,293,804 Total non-depreciable assets 11,112,221 1,446,599 (8,548,151) 4,010,669 Depreciable assets Land improvements 865,080 0 (158,610) 706,470 Buildings and improvements 1,842,926 2,227,692 0 4,070,618 Machinery and equipment 1,649,209 254,343 (440,792) 1,462,760 Vehicles 299,750 96,249 0 395,999 Infrastructure 18,443,201 5,859,774 0 24,302,975 Total depreciable assets 23,100,166 8,438,058 (599,402) 30,938,822 Less accumulated depreciation Land improvements (639,594) (28,259) 158,610 (509,243) Buildings and improvements (641,954) (139,145) 0 (781,099) Machinery and equipment (1,113,369) (219,520) 385,222 (947,667) Vehicles (195,000) (57,267) (252,267) Infrastructure (9,679,009) (1,164,987) 0 (10,843,996) Total accumulated depreciation (12,268,926) (1,609,178) 543,832 (13,334,272) Total depreciable assets, net 10,831,240 6,828,880 (55,570) 17,604,550 Business-type activities capital assets, net $ 21,943,461 $ 8,275,479 $ (8,603,721) $ 21,615,219 Beginning Balance Increases Decreases Ending Balance Decreases in construction in progress for the business-type activities consist of projects placed in service in the amount of $8,036,630 and projects abandoned in the amount of $511,521. 51 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 8. Capital Assets (continued) Capital asset activity for the discretely presented component units for the respective year ends was as follows: Pickens County Health Department Depreciable Assets Site Improvements $ 74,694 $ 0 $ 0 $ 74,694 Machinery and equipment 48,059 0 0 48,059 Furniture and Fixtures 11,030 0 0 11,030 Vehicles 20,011 0 0 20,011 Total depreciable assets 153,794 0 0 153,794 Less accumulated depreciation Site Improvements (28,194) (6,297) 0 (34,491) Machinery and equipment (35,574) (6,363) 0 (41,937) Furniture and Fixtures (11,030) 0 0 (11,030) Vehicles (26,308) 0 0 (26,308) Total accumulated depreciation (101,106) (12,660) 0 (113,766) Total depreciable assets, net 52,688 (12,660) 0 40,028 Pickens County Health Department capital assets, net $ 52,688 $ (12,660) $ 0 $ 40,028 Beginning Balance Increases Decreases Ending Balance Depreciation expense was charged to functions/programs as follows: Primary Government Governmental Activities General Government 542,975 $ Judicial 5 Public Safety 1,072,749 Public Works 1,142,336 Health and Welfare 29,881 Culture and Recreation 75,216 Housing and Development 82,508 Total depreciation expense for governmental activities 2,945,670 $ Business-type activities Water and Sewer 701,243 $ Airport 817,593 Total depreciation expense for business-type activities 1,518,836 $ Component units Pickens County Health Department 12,660 $ 52 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 8. Capital Assets (continued) Governmental Business-type Activities Activities Current year depreciation expense 2,945,670 $ 1,518,836 $ Prior accumulated depreciation on assets through transfer to/from Governmental Activities 7,170 90,342 Additions to accumulated depreciation 2,952,840 $ 1,609,178 $ Primary Government 9. Long-Term Debt Governmental Activities Notes from Direct Borrowings The County has entered into an agreement with Association of County Commissioner of Georgia to finance the purchase of land to be used to build a Public Works department facility in the original amount of $1,030,000 ($745,643 outstanding). The agreement is secured by the Public Works building. Payments of $58,031 are due semiannually, interest at 3.33% The agreement matures in 2029. The County has entered into an agreement with Association of County Commissioner of Georgia to finance the purchase of land to be used to build a recycling facility in the original amount of $2,077,308 ($1,674,734 outstanding). The agreement is secured by the recycling facility property. Payments of $121,607 are due semiannually, interest at 2.18% The agreement matures in 2030. Finance Purchases The County entered into a finance agreement for the acquisition of certain equipment. The agreement bears interest at 2.33% and requires annual payments through 2024. The balance outstanding at the end of the current year is $112,836. 53 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Governmental Activities, continued Notes from Direct Borrowings, continued The annual requirements to amortize notes from direct borrowings at the end of the current year are as follows: Year Ending December 31, Principal Interest Total 2023 397,134 $ 54,216 $ 451,350 $ 2024 336,921 45,379 382,300 2025 321,076 38,198 359,274 2026 328,260 31,014 359,274 2027 335,604 23,668 359,272 2028-2030 814,218 25,948 840,166 Totals 2,533,213 $ 218,423 $ 2,751,636 $ Business-type Activities GEFA Loans The County entered into borrowings with the Georgia Environmental Finance Authority (GEFA) for expansion of the County’s water and sewer system. These notes, including original balances, are as follows as of the end of the current year: Interest Rate Term Due Date Original Balance 2.39% 10 Years 2027 2,600,000 $ 1.89% 20 Years 2040 1,413,000 1.63% 20 Years 2040 525,000 4,538,000 $ 54 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Business-type Activities, continued Notes from Direct Borrowings, continued  During 2018, the County entered into two note agreements with GEFA to borrow up to $4,013,000, interest from 1.89% to 2.39%, to finance the construction of water distribution lines and related appurtenances, a new 0.325 million gallon per day water treatment plant, a 100,000-gallon ground storage tank, and the purchase of water rights from the Grandview Lake Company including the water withdrawal permits and water treatment plant. At of the end of the current year, the note had a balance of $1,850,640 and was still in draw down phase. Therefore, a future payment schedule has not been established. The note requires interest only payments until the earlier of August 1, 2023, the completion date, or the date that the loan is fully disbursed.  During 2021, the County entered into a note agreement with GEFA to borrow up to $525,000 to finance the costs of acquiring, constructing, and installing a sewer main and pump station at the County airport. At the end of the current year, the note had a balance of $270,506, and was still in the draw down phase at the end of the current year. Therefore, a future payment schedule has not been established. The note requires interest only payments until the earlier of August 1, 2023, the completion date, or the date that the loan is fully disbursed. The note bears an interest rate of 1.63%. Subsequent to the current year, the project was terminated, and the loan closed. The County will begin payments on the loan in the subsequent fiscal year. All of the County’s notes from direct borrowing are still in drawdown phase; therefore, not included in the amortization schedule below, all balances are classified as noncurrent. Finance Purchases  The County entered into a finance agreement for the acquisition of certain equipment. The agreement bears interest at 2.33% and requires annual payments through 2024. The balance outstanding at the end of the current year is $28,109. 55 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Business-type Activities, continued Notes from Direct Borrowings, continued Year Ending December 31, Principal Interest Total 2023 22,420 $ 528 $ 22,948 $ 2024 5,689 38 5,727 Totals 28,109 $ 566 $ 28,675 $ Revenue Bonds Revenue bonds have been issued for business-type activities and are comprised of the following individual issues as of the end of the current year: Water and Sewer Revenue Refunding Bonds, Series 2015: The County issued Water and Sewer Bonds in the amount of $8,090,000, due in annual installments of $184,000 to $1,190,000 through 2029, with an interest rate of 2.35% ($4,175,000 outstanding). All proceeds were used to advance payment on previously issued debts of the County which had been issued to finance the acquisition and construction of waterline infrastructure and secured by collateral of water service infrastructure. The refunding was undertaken to reduce total future debt service payments. The refunding resulted in an economic gain of $3,599,055. Development Authority of Pickens County Revenue Bonds, Series 2014: The County entered into an agreement with the Development Authority of Pickens County to issue revenue bonds in the amount of $3,966,969 due in installments of $33,447 through 2029, with an interest rate of 3.25% ($2,630,535 outstanding). All proceeds were used to finance the construction of an airport taxiway. During 2014, the agreement was modified due to additional project costs. 56 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Business-type Activities, continued Revenue Bonds, continued Development Authority of Pickens County Revenue Bonds, Series 2018: The County entered into an agreement with the Development Authority of Pickens County to issue revenue bonds in the amount of $1,500,000 due in installments of $11,179 through 2035, with an interest rate of 6.00% ($1,179,139 outstanding). All proceeds were used to finance the acquisition and construction of an airport hangar. Development Authority of Pickens County Revenue Bonds, Series 2021: The County entered into an agreement with the Development Authority of Pickens County to issue revenue bonds in the amount of $5,800,000 due in installments through 2040, with an interest rate of Wall Street Journal Prime Rate plus .75% with a minimum interest rate of 4% and a maximum interest rate of 8% ($2,610,055 outstanding). The bonds are interest only until 2026 when installment of principal and interest will commence. The bonds are currently in draw down phase. Therefore, a future payment schedule has not been established and the payment schedule of the bonds is not included in the annual debt service requirement schedule below. The bonds are interest only until 2026. All proceeds were used to finance the costs of acquisition and construction of the Pickens County Airport expansion. The County’s outstanding Airport bonds are secured by a pledge by the Development Authority and contain a provision that if the County is unable to make its scheduled debt service payments, all outstanding amounts become due immediately. 57 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Business-type Activities, continued Revenue Bonds, continued The annual requirements to amortize bonds payable as of the end of the current year are as follows: Year Ending December 31, Principal Interest Total 2023 868,020 $ 368,199 $ 1,236,219 $ 2024 915,795 322,241 1,238,036 2025 956,081 281,514 1,237,595 2026 998,760 239,075 1,237,835 2027 1,043,658 194,089 1,237,747 2028-2032 2,882,787 341,169 3,223,956 2033-2035 319,573 26,128 345,701 Totals 7,984,674 $ 1,772,415 $ 9,757,089 $ 58 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 9. Long-Term Debt (continued) Development Authority of Pickens County Revenue Bonds During 2015, the Development Authority issued $1,960,000 of revenue bonds to fully refund a loan agreement with Restaurant Interiors to finance the purchase of an industrial building in the original amount of $1,249,206 ($1,416,991 outstanding). The refunding was undertaken to reduce total future debt service payments. Payments are due in installments with annual principal of $60,447 through $143,831 with a variable interest rate. The interest rate at December 31, 2022 is 6.20%. The annual requirements to amortize bonds payable as of the end of the current year are as follows: Year Ending December 31, Principal Interest Total 2023 86,688 $ 31,490 $ 118,178 $ 2024 90,601 29,564 120,165 2025 95,042 27,550 122,592 2026 99,520 25,438 124,958 2027 104,210 23,226 127,436 2028-2032 599,293 79,143 678,436 2033-2035 341,637 12,689 354,326 Totals 1,416,991 $ 229,100 $ 1,646,091 $ 59 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 10. Long-Term Liabilities Changes in Long - Term Liabilities The following is a summary of changes in long-term liabilities of the County for the current year: Due Within One Year Governmental activities Compensated absences $ 362,136 $ 325,006 $ 253,495 $ 433,647 $ 303,553 Notes from direct borrowings 2,921,263 0 388,050 2,533,213 397,134 Totals $ 3,283,399 $ 325,006 $ 641,545 $ 2,966,860 $ 700,687 Business-type activities Compensated absences $ 18,821 $ 12,122 $ 13,175 $ 17,768 $ 12,438 Notes from direct borrowings 1,910,329 260,757 21,831 2,149,255 22,420 Bonds payable 10,529,974 935,609 870,854 10,594,729 868,020 Totals $ 12,459,124 $ 1,208,488 $ 905,860 $ 12,761,752 $ 902,878 Ending Balance Beginning Balance Additions Deductions In prior years, long-term liabilities, such as compensated absences and landfill closure and post- closure care costs were liquidated by the General Fund. Total interest incurred and expensed in the governmental activities and the business-type activities for the current fiscal year was $23,105 and $482,829, respectively. Long-term liability activity for the Pickens County Health Department, a discretely presented component unit, for the respective fiscal year was as follows: Due Within One Year Pickens County Health Department Compensated absences $ 19,153 $ 10,388 $ 9,577 $ 19,964 $ 11,979 Ending Balance Beginning Balance Additions Deductions 60 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 10. Long-Term Liabilities (continued) Changes in Long - Term Liabilities, continued Long-term liability activity for the Pickens County Development Authority, a discretely presented component unit, for the respective fiscal year was as follows: Due Within One Year Pickens County Development Authority Bonds payable $ 1,499,778 $ - $ 82,787 $ 1,416,991 $ 86,688 Ending Balance Beginning Balance Additions Deductions 11. Landfill Post-Closure Care Costs State and Federal laws and regulations require that the County place a final cover on its landfill when officially closed as well as perform certain maintenance and monitoring functions at the landfill site for a period of thirty years after such closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post closure care costs is based on the amount of the landfill capacity used during the year. The County has recorded a liability in the amount of $450,000 for its solid waste landfill at the end of the current year 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 closed. These amounts are based on what it would cost to perform all closure and postclosure care in 2022. Actual costs 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 the end of the current year, based requirements issued by the EPA. 61 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 12. Net Investment in Capital Assets The net investment in capital assets reported on the government-wide statement of net position is calculated as follows at the end of the current year: Governmental Business-Type Activities Activities Cost of capital assets 76,850,980 $ 34,949,491 $ Accumulated depreciation (31,763,467) (13,334,272) Book value 45,087,513 21,615,219 Capital-related accounts payable (104,952) (828,464) Retainages payable (87,728) (66,351) Notes payable (2,533,213) (2,149,255) Bonds payable 0 (10,594,729) Net investment in capital assets 42,361,620 $ 7,976,420 $ 13. Retirement Plans County Defined Benefit Pension Plan Plan Description. The Pickens County Defined Benefit Pension Plan and Trust, (the “Plan”), is affiliated with the Association of County Commissioners of Georgia Defined Benefit Plan (ACCG), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating counties in Georgia. The authority for the Plan, benefits, vesting and contributions are established by the Board of Commissioners. The Plan is administered by the Government Employee Benefits Corporation of Georgia (GEB Corp). GEB Corp issues a publicly available financial report that includes financial statements and required supplementary information for ACCG. The Plan is a defined benefit pension plan that provides retirement, disability and death benefits to Plan members and beneficiaries. All full-time employees are eligible to participate in the Plan after completing three years of service. 62 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Participant counts as of January 1, 2021 (the most recent actuarial valuation) are as follows: Retirees, beneficiaries, and disablees currently receiving benefits 96 Terminated participants entitled to but not yet receiving benefits 117 Active employees participating in the plan 140 Total number of participants 353 Benefits Provided. Benefits vest after five years of service. Participants become eligible to retire with unreduced benefits at age 65 with three years of plan participation. Upon eligibility to retire, participants are entitled to an annual benefit in the amount of 2% of annual average compensation plus $36 for each year of service payable as a life annuity. Compensation is average 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. Contributions. County employees are not required to contribute to the Plan. The County contributes the entire cost of the Plan, using the actuarial basis described in the annual valuation report. The County’s contributions to the Plan for the current year totaled $1,391,807, or 19.22% of covered payroll. The County Commissioners provide for the benefits and funding policy through County ordinance and maintains the authority to change the policy. The administrative expenses set by contract between the ACCG and GEBCorp are in addition to the state-required annual funding requirement. The Georgia Constitution enables the governing authority of the County, the County Commissioners, to establish, and amend from time-to-time contribution rates for the County and its Plan participants. 63 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions. At the end of the current year, the County reported a net pension liability of $8,146,365. The net pension liability was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2021. For the current year, the County recognized pension expense of $1,532,282. For governmental activities, the net pension liability is liquidated by the General Fund. The components of the net pension liability are as follows: - Balances at December 31, 2020 $ 22,617,393 $ 13,682,453 $ 8,934,940 Changes for the year: Service cost 647,170 0 647,170 Interest 1,551,263 0 1,551,263 Liability Experience (Gain)/Loss 700,451 0 700,451 Assumption Change 38,004 0 38,004 Employer Contributions 0 1,418,719 (1,418,719) Employee Contributions 0 371,786 (371,786) Net Investment Income 0 2,093,436 (2,093,436) Benefit Payments (913,008) (913,008) 0 Administrative expense 0 (51,241) 51,241 Other Changes 0 (107,237) 107,237 Net changes 2,023,880 2,812,455 (788,575) Balance at December 31, 2021 $ 24,641,273 $ 16,494,908 $ 8,146,365 Plan fiduciary net position as a percentage of the total pension liability 66.94% Covered payroll $ 7,241,121 Employer's net pension liability as a percentage of covered payroll 112.50% Liability Total Pension Plan Fiduciary Net Position Net Pension Liability 64 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Benefit Pension Plan, continued At the end of the current year, the County reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources: County contributions subsequent to the measurement date $ 1,391,807 $ 0 Net difference between projected and actual earnings on pension plan investments 0 (1,630,102) Differences between expected and actual experience 643,151 (94,357) Changes in participant fund allocation 175,030 (175,030) Changes of assumptions 274,420 0 Totals $ 2,484,408 $ (1,899,489) Deferred Outflows of Resources Deferred Inflows of Resources The $1,391,807 of deferred outflows of resources resulting from the County’s contributions subsequent to measurement date will be recognized as a reduction of the net pension liability in the subsequent year. Other amounts reported as deferred outflows and deferred inflows of resources will be recognized in pension expense as follows: Year Ending December 31 2023 154,737 $ 2024 (413,875) 2025 (328,602) 2026 (219,148) Totals (806,888) $ 65 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Actuarial Assumptions. The total pension liability in the January 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Future salary increases 5.50% per year with an age based scale Cost of living adjustments 2.00% Net investment rate of return 7.00% Healthy mortality rates were based on the Pub-2010 Amount Weighted Mortality Table with a blend of 50% of the General Employees Table and 50% of the Public Safety Employees Table with Scale AA to 2021. Disabled rates were derived from the 1985 CIDA Table Class I. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The pension plan’s target asset allocation as of December 31, 2021, is summarized in the following table: Target Allocation Range Fixed Income 30% 25-35% Large Cap 30% 25-35% Mid Cap 5% 2.5-10% Small Cap 5% 2.5-10% REIT 5% 2.5-10% International 15% 10-20% Multi Cap 5% 2.5-10% Global Allocation 5% 2.5-10% 66 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Discount Rate. The discount rate used to measure the total pension liability was 7.00 percent. The discount rate is determined using the estimated 65th percentile return based on UBS Capital Market Assumptions (6.10%) and five-year performance in excess of benchmarks The projection of cash flows used to determine the discount rate assumed that contributions from employer will be made at contractually required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents what the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (6.00 percent) or one percentage-point higher (8.00 percent) than the current rate: Discount Net Pension Rate Liability 1% decrease 6.00% 11,684,565 $ Current discount rate 7.00% 8,146,365 1% increase 8.00% 5,222,897 Plan Fiduciary Net Position. Detailed information about the Plan’s fiduciary net position is available in the separately issued Association County Commissioners of Georgia GEBCorp financial report. 67 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) County Defined Contribution Plan The County provides retirement benefits for its employees through a deferred compensation, defined contribution plan with the Association of County Commissioners of Georgia Defined Contribution Plan. The Plan was created under Internal Revenue Code Sections 457 and 401(a). The Plan is administered by the Government Employee Benefits Corporation of Georgia (GEBCORP) as the third party service provider and The Charles Schwab Trust Company serves as the trustee of the trust fund under the Plan. Under the terms of the Plan, employees can make voluntary contributions to the 457 and the County will match ½% for each 1% voluntarily contributed by employee up to a total County match of 2.5%. Employee contributions are vested 100% at the time of contribution. Employer contributions vest 0% prior to four full years of employee service, 100% after four full years of employee service. Amounts held in the Plan are not available to the employees until termination, retirement, death, or unforeseeable emergency. During the current year, County and employee contributions to the Plan totaled $127,976 and $185,313, respectively. The County has no fiduciary relationship with the plan, and plan assets are not available to the County or its general creditors. The Plan assets are held in trust by the administrator for the exclusive benefit of the participants of the Plan. The County Commissioners provide the funding policy though a County ordinance and maintains the authority to change the policy. Separate financial statements are not issued for the Plan. 68 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) Deferred Compensation Plan The County offers its employees an optional deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all County employees and 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. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the participant or other beneficiary) solely the property and rights of a Trust created by the County for the benefit of the participants. The County has adopted the provisions of GASB Statement No. 32 which required the removal of plan assets and liabilities from the financial statements of the County. ROTH Deferred Compensation Plan The County offers its employees an optional deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all County employees and 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. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the participant or other beneficiary) solely the property and rights of a Trust created by the County for the benefit of the participants. The County has adopted the provisions of GASB Statement No. 32 which required the removal of plan assets and liabilities from the financial statements of the County. During the current year, County and employee contributions to the Plan totaled $2,830 and $5,371, respectively. 69 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 13. Retirement Plans (continued) Other County Plans In addition to the plans above, various County employees are covered under the following plans: Georgia Firefighters’ Pension Fund, Georgia State Employees’ Retirement System (ERS), Magistrates’ Retirement Fund of Georgia, Peace Officers’ Annuity and Benefit Fund of Georgia, Probate Judges’ Retirement Fund of Georgia, Sheriffs’ Retirement Fund of Georgia, and Superior Court Clerks’ Retirement Fund of Georgia. Further information regarding these plans can be obtained from the plans’ annual reports. These plans are immaterial to the financial statements. Pickens County Health Department Retirement Plan Eligible employees of the Pickens County Health Department participate in the Georgia State Employees’ Retirement System (ERS), a statewide multiple-employer public employee retirement system. During the fiscal year ended June 30, 2022, the Department contributed $55,399. As of June 30, 2022, the Department reported a liability in the amount of $226,663 for its proportionate share (0.009240%) of the net pension liability. The Department recognized pension expense of $(40,660) for the fiscal year ended June 30, 2022. Additional information regarding the plan can be obtained from Department’s annual audit report by contacting Pickens County Health Department, 60 Health Way, Jasper, Georgia 30143. 14. Post-Employment Benefits Other Than Pensions County Plan Plan Description. Pickens County administers a single-employer defined benefit health care plan, the “The Pickens County Other Postemployment Benefits Plan.” The OPEB financial statements are included in this report. No stand-alone financial report is issued. 70 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued At January 1, 2022, the date of the most recent actuarial valuation, membership consisted of the following: Inactive members or beneficiaries currently receiving benefits 6 Inactive members entitled to but not yet receiving benefits 0 Active employees 18 Total membership 24 Benefits Provided. Coverage under the plan includes medical, prescription drug and dental benefits for retirees and dependents. Eligible retirees must be a minimum age of 55 with 15 or more years of consecutive full-time service, enrolled in the medical insurance plan for a minimum of 3 years prior to retirement, and hired prior to January 1, 2002, to retire and continue medical coverage. Employees hired after March 1, 2002 are not eligible to participate in the plan. Contributions. The County has not elected to advance fund the OPEB Plan, but rather maintains the OPEB Plan on a “pay-as-you-go” basis, in that claims are paid as they arise, rather than establishing an irrevocable trust to accumulate restricted funds. The County Commission authorizes participation in the OPEB plan and sets the contribution rates and benefits and maintains the authority to change the policy. The cost of coverage is paid in part by the employer and in part by the retiree. Eligible retirees and former employees are offered the same health coverage as active employees. Retirees contribute an average of $777 per month towards the actuarial calculated rates. The County contributes the remainder of the required contributions. For the measurement period ended December 31, 2021, plan members receiving benefits contributed $5,874 through their required contributions and the County contributed $55,961 to the plan. 71 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued OPEB Liabilities, OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB. At the end of the current year, the County reported a net OPEB liability of $1,466,036. The net OPEB liability was measured as of January 1, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined and measured from actuarial valuations using data as of January 1, 2022. During the current year, the County recognized OPEB expense of $177,375. The components of the net OPEB liability are as follows: Balances at December 31, 2021 $ 1,279,933 $ 0 $ 1,279,933 Changes for the year: Service cost 37,876 0 37,876 Interest 26,303 0 26,303 Differences between expected and actual experience 255,260 0 255,260 Contributions-employer 0 75,407 (75,407) Changes of assumptions or other inputs 21,654 0 21,654 Benefit payments (154,990) (75,407) (79,583) Net changes 186,103 0 186,103 Balances at December 31, 2022 $ 1,466,036 $ 0 $ 1,466,036 Plan fiduciary net position as a percentage of the total OPEB liability Covered-employee payroll Plan net OPEB liability as a percentage of covered employee payroll 941,266 $ 0.00% 155.75% Liability OPEB Net Liability OPEB Total Plan Fiduciary Net Position 72 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued At the end of the current year, the County reported deferred outflows of resources and deferred inflows of resources related to the OPEB Plan from the following sources: Differences between expected and actual experience $ 303,067 $ (1,048) Changes of assumptions 113,535 (15,438) Changes in participant fund allocation 63,370 (63,370) Contributions subsequent to the measurement date 55,962 0 Totals $ 535,934 $ (79,856) Deferred Outflows of Resources Deferred Inflows of Resources The $55,962 of deferred outflows of resources resulting from the County’s contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the subsequent year. Other amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows: Year Ending December 31 2023 111,686 $ 2024 109,502 2025 109,459 2026 69,469 2027 0 Totals 400,116 $ 73 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued Actuarial Assumptions. The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Projected salary increases 4.50% - 6.50% per year, with adjustments by age Actuarial cost method Entry age normal Discount rate 2.06%, 2.12% at prior measurement date Healthcare cost trend rates Pre-Medicare: 7.00% trended down to 4.50% over 10 years Mortality rates Mortality rates were based on the Pub-2010 GE (50%) & PS (50%) Amount-Weighted gender distinct and projected generationally with Scale AA to 2022. Amortization method Closed level dollar for remaining unfunded liability Remaining amortization period Remaining amortization period varies for the bases, with a net effective amortization period of 15 years. The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the January 1, 2022 actuarial valuation were based on the pension valuation prepared by GEBCorp as of January 1, 2021. The remaining actuarial assumptions initial per capita costs, health care cost trends, etc.) used in the January 1, 2022 actuarial valuation were based on a review of recent plan experience performed concurrently with the January 1, 2022 valuation. 74 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued Development of Long-Term Rate. Since the County funds this plan on a pay-as-you-go basis, GASB requires the discount rate be based on a yield or index rate for 20-year, tax-exempt municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). The Municipal Bond Index Rate selected by the County for this purpose is the Bond Buyer General Obligation 20-year Municipal Bond Index published at the last Thursday of December by The Bond Buyer (www.bondbuyer.com). The Municipal Bond Index Rate as of the measurement date was 2.06%. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate. The following presents what the net OPEB liability would be if it were calculated using a discount rate that is one percentage-point lower (1.06%) or one percentage-point higher (3.06%) than the current rate. Also, shown is the net OPEB liability as if it were calculated using healthcare cost trend rates that were one percentage point lower or one percentage point higher than the current healthcare trend rates: Net OPEB Discount Rate Liability 1% decrease 1.06% 1,342,893 $ Current discount rate 2.06% 1,466,036 1% increase 3.06% 1,605,028 Net OPEB Healthcare Cost Trend Rates Liability 1% decrease 1,568,631 $ Current trend rate 1,466,036 1% increase 1,367,819 OPEB Plan Fiduciary Net Position. Detailed information about the Plan’s fiduciary net position is available in the separately issued GASB Statement No. 75 Report for The Pickens County Other Postemployment Benefits Plan. 75 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 14. Post-Employment Benefits Other Than Pensions (continued) Pickens County Health Department Component Unit Eligible employees of the Pickens County Health Department are provided OPEB through the State of Georgia OPEB Fund, a cost-sharing multiple-employer defined benefit post-employment healthcare plan and life insurance through the SEAD-OPEB Fund, a cost-sharing multiple- employer defined benefit other post-employment benefit plan. During the fiscal year ended June 30, 2021, the Department contributed $12,821. As of June 30, 2022, the Department reported a net OPEB asset in the amount of $23,488 and net OPEB liability in the amount of $25,397 for its proportionate share (0.000344%) for the SEAD-OPEB Fund and 0.009240% for the State of Georgia OPEB Fund) of the net OPEB asset and liability. The Department recognized OPEB expense of ($40,660) for the fiscal year ended June 30, 2022. Additional information regarding the plan can be obtained from Department’s annual audit report by contacting Pickens County Health Department, 60 Health Way, Jasper, Georgia 30143. 16. Hotel/Motel Lodging Tax The County has levies a 5% lodging tax in accordance with OCGA 48-13-51. A summary of the transactions for the current year follows: Lodging Tax Receipts $ 463,080 Disbursements for trade and tourism $ 351,757 76% of tax receipts 76 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 15. Joint Ventures The County, in conjunction with cities and counties in the thirteen-county northwest Georgia area are members of the Northwest Georgia Regional Commission (RC). Membership in an RC is automatic for each municipality and county in the state. The official Code of Georgia Section 50- 8-34 (Georgia Planning Act of 1989) provides for the organizational structure of the RC's. Each county and municipality in the state is required by law to pay minimum annual dues to the RC. The RC Board membership includes the chief elected official of each county and the chief elected official of each municipality. 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 non-public Board member from a County. The Georgia Planning Act of 1989 (O.C.G.A. 50-8-34) defines RC's as "public agencies" and instrumentalities of their members. Georgia laws also provide that the member governments are liable for any debts or obligations of an RC beyond its resources (O.C.G.A. 50- 8-39.1). Separately issued financial statements are available at the RC’s administrative office. On January 4, 1995, Pickens County entered into an agreement with Bartow County, Georgia, establishing a Joint Development Authority. The County Commissioners of Pickens County, Georgia and the County Commissioner of Bartow County, Georgia signed an agreement whereby the Joint Development Authority of Pickens County and Bartow 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 the Bartow County Commissioner and four members are appointed by the Pickens County Commission. At the end of the current year, the Joint Development Authority owned no assets and had no liabilities. There were no financial transactions conducted by the Joint Development Authority in the current year; therefore, no balance sheet or income statement is presented in the current year financial statements. 77 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 17. Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which, except as described in the following paragraph, the County carries commercial insurance in amounts deemed prudent by County management. Workers’ Compensation The County participates in the Association of County Commissioners of Georgia Group Self- Insurance Workers Compensation Fund, a self-insured cooperative public entity risk pool currently operating among its members to finance workers’ compensation insurance coverage. The fund is owned by its members and is managed by a seven-member Board of Trustees who a representative from participating counties. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three years. As part of these risk pools, the County is obligated to pay all contributions and assessments as prescribed by the pools, to cooperate with the pools’ agents and attorneys, to follow loss reduction procedures established by the funds, and to report as as possible, and in accordance with any coverage descriptions issued, all incidents which could result in the funds being required to pay any claim of loss. Group Health Insurance The County maintains a self-insured group health insurance plan through Cigna Health and Life Insurance Company, the County’s third-party administrator, that carries a $100,000 aggregate individual claim stop loss. Claims up to that amount are paid by the County through the Pickens County Benefits account. The insurer absorbs any amounts in excess of this claims level. The insurer agreement also has a maximum contractual obligation in the event of termination for the incurred but not reported claims. Reserves are established for the medical insurance liabilities based on information provided by the plan administrator. The third-party administrator reviews and approves all claims on behalf of the County. 78 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 17. Risk Management (continued) Liabilities Liabilities of the funds are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Changes in the County’s balance of health and dental claims reserve liability is as follows: Beginning Balance 152,610 $ Incurred claims, net of any changes 3,645,483 Payments (3,554,435) Ending Balance 243,658 $ 18. Contingencies The County has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies or their designee. These audits could result in a request for reimbursement to the grantor agency for costs disallowed under the terms of the grant. Based on prior experience, the County believes such disallowances, if any, will be immaterial. The County was a defendant in several lawsuits at the end of the current year. In the opinion of County management, the outcome of these contingencies will not have a material effect on the financial position of the County. 79 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 19. Changes in Beginning Balances Governmental Activities General Fund A prior period adjustment has been made to correct the beginning balance of deferred inflow of resources - unavailable property tax revenue. This adjustment decreased beginning fund balance by $426,065. Restricted Programs Special Revenue Fund A prior period adjustment has been made to correct receivable and payable balances. This adjustment increased beginning fund balance by $23,664. The net effect of these adjustments decreased beginning net position in the Governmental Activities by $402,401. 20. Subsequent Events Subsequent to the current year, the County entered into a $5,500,000 tax anticipation line of credit for operating cash flow purposes. The line of credit bears interest at a rate of 4.99% and is secured by County property tax revenues. 21. New Accounting Pronouncements The County implemented GASB Statement No. 87, Leases, effective for the County’s current year. The requirements of this statement are effective for periods beginning after June 15, 2021. The implementation of this standard had no effect on net position. 80 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- Total pension liability Service cost $ 647,170 $ 639,263 $ 645,330 Interest 1,551,263 1,426,797 1,292,096 Liability experience (gain) / loss 700,451 (205,361) 197,356 Assumption change 38,004 37,588 880,753 Plan change 0 744,132 0 Benefit payments, including refunds of employee contributions (913,008) (815,684) (683,385) Net change in total pension liability 2,023,880 1,826,735 2,332,150 Total pension liability - beginning 22,617,393 20,790,658 18,458,508 Total pension liability - ending $ 24,641,273 $ 22,617,393 $ 20,790,658 Plan fiduciary net position Contributions - employer $ 1,418,719 $ 1,346,566 $ 1,238,819 Contributions - employee 371,786 364,175 375,521 Net investment income 2,093,436 1,681,747 1,725,926 Benefit payments, including refunds of employee contributions (913,008) (815,684) (660,275) Administrative expense (51,241) (49,350) (54,658) Other (107,237) (81,810) (92,775) Net change in plan fiduciary net position 2,812,455 2,445,644 2,532,558 Plan fiduciary net position - beginning 13,682,453 11,236,809 8,704,251 Plan fiduciary net position - ending $ 16,494,908 $ 13,682,453 $ 11,236,809 Net pension liability - ending : - $ 8,146,365 $ 8,934,940 $ 9,553,849 Plan's fiduciary net position as a percentage of the total pension liability 66.94% 60.50% 54.05% Covered payroll $ 7,241,121 $ 6,914,445 $ 6,813,847 Net pension liability as a percentage of covered payroll 112.50% 129.22% 140.21% Note: Fiscal year 2015 was the first year of implementation. Therefore, years prior to 2015 are not reported. (Unaudited) PICKENS COUNTY, GEORGIA SCHEDULE OF NET PENSION LIABILITY (ASSET) AND RELATED RATIOS LAST TEN FISCAL YEARS December 31, 2022 2022 Fiscal Year End 2021 2020 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-1, continued 81 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 Exhibit A-16, continued 21. Changes in Beginning Balances Governmental Activities General Fund A prior period adjustment has been made to correct the beginning balance of deferred inflow of resources - unavailable property tax revenue. This adjustment decreased beginning fund balance by $426,065. Restricted Programs Special Revenue Fund A prior period adjustment has been made to correct receivable and payable balances. This adjustment increased beginning fund balance by $23,664. The net effect of these adjustments decreased beginning net position in the Governmental Activities by $402,401. 22. Subsequent Events Subsequent to the current year, the County entered into a $5,500,000 tax anticipation line of credit for operating cash flow purposes. The line of credit bears interest at a rate of 4.99% and is secured by County property tax revenues. 23. New Accounting Pronouncements The County implemented GASB Statement No. 87, Leases, effective for the County’s current year. The requirements of this statement are effective for periods beginning after June 15, 2021. The implementation of this standard had no effect on net position. 80 ---PAGE BREAK--- $ 563,685 $ 516,229 $ 485,085 $ 253,346 $ 264,362 1,099,774 976,033 634,742 578,687 538,805 1,029,288 742,096 148,184 (79,204) 0 895,492 36,116 471,061 312,106 0 0 0 3,698,277 0 0 (598,066) (529,326) (346,769) (288,319) (254,487) 2,990,173 1,741,148 5,090,580 776,616 548,680 15,468,335 13,727,187 8,636,607 7,859,991 7,311,311 $ 18,458,508 $ 15,468,335 $ 13,727,187 $ 8,636,607 $ 7,859,991 $ 1,077,733 $ 990,265 $ 866,021 $ 576,852 $ 604,422 334,523 349,920 329,750 0 0 (369,268) 1,046,254 429,014 27,148 319,652 (598,066) (529,326) (346,769) (288,319) (254,487) (37,089) (34,798) (38,193) (32,894) (33,048) (80,874) (58,529) (44,922) (53,498) (37,331) 326,959 1,763,786 1,194,901 229,289 599,208 8,377,292 6,613,506 5,418,605 5,189,316 4,590,108 $ 8,704,251 $ 8,377,292 $ 6,613,506 $ 5,418,605 $ 5,189,316 $ 9,754,257 $ 7,091,043 $ 7,113,681 $ 3,218,002 $ 2,670,675 47.16% 54.16% 48.18% 62.74% 66.02% $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 $ 7,234,670 144.27% 105.32% 113.61% 49.85% 36.91% 2019 2016 2017 2018 Fiscal Year End 2015 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-1, continued 82 ---PAGE BREAK--- Actuarially determined contribution $ 1,291,448 $ 1,233,511 $ 1,137,984 Contributions in relation to the actuarially determined contribution (1,391,807) (1,418,719) (1,238,819) Contribution deficiency (excess) $ (100,359) $ (185,208) $ (100,835) Covered payroll $ 9,999,504 $ 6,914,445 $ 7,261,035 Contributions as a percentage of covered payroll 13.92% 20.52% 17.06% Note: Fiscal year 2015 was the first year of implementation. Therefore, years prior to 2015 are not reported. 2022 Fiscal Year End 2021 2020 PICKENS COUNTY, GEORGIA SCHEDULE OF CONTRIBUTIONS LAST TEN FISCAL YEARS December 31, 2022 (Unaudited) The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-2, continued 83 ---PAGE BREAK--- $ 986,766 $ 865,930 $ 726,960 $ 556,622 $ 565,792 (1,077,733) (990,265) (866,021) (576,852) (604,422) $ (90,967) $ (124,335) $ (139,061) $ (20,230) $ (38,630) $ 6,813,847 $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 15.82% 14.65% 12.86% 9.21% 9.36% Fiscal Year End 2019 2015 2016 2018 2017 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-2, continued 84 ---PAGE BREAK--- Total OPEB liability Service cost $ 37,876 $ 31,896 $ 22,883 Interest 26,303 32,534 36,447 Differences between expected and actual experience 255,260 39,451 147,839 Changes of assumptions or other inputs 21,654 58,486 111,532 Benefit payments (154,990) (75,407) (12,165) Implicit subsidy credit 0 0 (16,900) Net change in total OPEB liability 186,103 86,960 289,636 Total OPEB liability - beginning 1,279,933 1,192,973 903,337 Total OPEB liability - ending $ 1,466,036 $ 1,279,933 $ 1,192,973 Plan fiduciary net position Contributions - employer $ 55,961 $ 75,407 $ 12,165 Benefit payments (55,961) (75,407) (12,165) Net change in plan fiduciary net position 0 0 0 Plan fiduciary net position - beginning 0 0 0 Plan fiduciary net position - ending $ 0 $ 0 $ 0 Net OPEB liability - ending : - $ 1,466,036 $ 1,279,933 $ 1,192,973 Plan's fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% Covered-employee payroll $ 941,266 $ 1,328,504 $ 1,328,504 Net OPEB liability as a percentage of covered-employee payroll 155.75% 96.34% 89.80% Note: Fiscal year 2018 was the first year of implementation. Therefore, years prior to 2018 are not reported. 2022 PICKENS COUNTY, GEORGIA SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS December 31, 2022 (Unaudited) Fiscal Year End 2021 2020 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-3, continued 85 ---PAGE BREAK--- $ 25,288 $ 22,750 32,082 34,339 (3,444) 7,844 (50,730) 26,958 (36,498) (44,902) (27,900) (26,000) (61,202) 20,989 964,539 943,550 $ 903,337 $ 964,539 $ 36,498 $ 44,902 (36,498) (44,902) 0 0 0 0 $ 0 $ 0 $ 903,337 $ 964,539 0.00% 0.00% $ 1,239,011 $ 1,239,011 72.91% 77.85% Fiscal Year End 2019 2018 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-3, continued 86 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 Exhibit B-4, continued Pension Plan 1. Valuation Date The actuarially determined contribution rate was determined as of January 1, 2021, with an interest adjustment to the fiscal year. Contributions in relation to this actuarially determined contribution rate will be reported for the year ending December 31, 2023. 2. Methods and Assumptions Used to Determine Contribution Rates Actuarial cost method = Entry Age Normal Amortization method = Level percentage of payroll, open Remaining amortization period = 30 years Asset valuation method = Smoothed market value with a 5-year smoothing period Net investment rate of return = 7.00%, net of pension plan investment expense, including inflation Future salary increases = 5.50% per year with a per year with adjustments by age Cost of living adjustments = 2.00% Normal retirement age = 65 Mortality = Healthy mortality rates were based on the Pub-2010 Amount Weighted Mortality Table with a blend of 50% of the General Employees Table and 50% of the Public Safety Employees Table with Scale AA to 2021. 3. Changes in Benefits There have been no substantive changes since the last actuarial valuation. 87 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 Exhibit B-4, continued Pension Plan (continued) 4. Changes of Assumptions The mortality table was changed for Pub-2010 Amount Weighted Mortality Table with a blend of 50% of the General Employees Table and 50% of the Public Safety Employees Table with Scale AA to 2021 instead of to 2020. OPEB Plan 1. Valuation Date The net OPEB liability was measured as of January 1, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined and measured from actuarial valuations using data as of January 1, 2022. 2. Methods and Assumptions Used to Determine Contribution Rates No assets are accumulated in a trust to pay benefits. Actuarial cost method = Entry age normal Amortization method = Closed level dollar for remaining unfunded liability Remaining amortization period = Remaining amortization period varies for the bases, with a net effective amortization period of 15 years. Asset valuation method = Fair value Projected salary increases = 4.50% - 6.50% per year with adjustments by age Inflation = 3.00% 88 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 Exhibit B-4, continued OPEB Plan (continued) 2. Methods and Assumptions Used to Determine Contribution Rates (continued) Discount rate = 2.06%, 2.12% at prior measurement date Healthcare cost trend rates = Pre-Medicare: 7.00% trended down by 0.25% over 10 years to an ultimate rate of 4.50%; Medicare: 4.50%; Prescription Drug: 8.00% trended down by 0.25% over 14 years to an ultimate rate of 4.50%; Dental: 3.00% Mortality = Mortality rates were based on the Pub-2010 GE (50%) & PS (50%) Amount-Weighted gender distinct and projected generationally with Scale AA to 2022. 3. Changes in Benefits There have been no benefit changes for the past two years. 4. Changes of Assumptions The discount rate changed from 2.12% to 2.06%. Healthcare claims costs and trends were updated to reflect the most recent experience. Mortality rates were updated to use Pub-2010 GE(50%) & PS(50%) Amt-Weighted with Scale AA to 2022 study. Anticipated spouse plan participation assumption was changed from 30% to 20%. 89 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- COMBINING STATEMENTS Nonmajor Governmental Funds ---PAGE BREAK--- Nonmajor Governmental Funds ASSETS Cash and cash equivalents $ 47,530 $ 147,520 $ 0 $ 48,412 $ 412,051 $ 237,207 $ 892,720 Receivable Accounts 0 0 129,322 0 0 0 129,322 Intergovernmental 0 0 0 0 799,931 0 799,931 Taxes receivable 0 0 0 0 0 35,472 35,472 Due from other funds 0 0 0 0 5,097 5,097 Total assets $ 47,530 $ 147,520 $ 129,322 $ 48,412 $ 1,211,982 $ 277,776 $ 1,862,542 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 998 $ 0 $ 1,553 $ 0 $ 345,276 $ 102,231 $ 450,058 Accrued salaries and expenses 0 0 0 0 20,366 0 20,366 Due to other funds 299 0 0 0 215,178 0 215,477 Due to other agencies 0 0 0 43,486 0 0 43,486 Total liabilities 1,297 0 1,553 43,486 580,820 102,231 729,387 Fund balances Restricted for: Judicial 46,233 0 0 0 631,162 0 677,395 Public safety 0 147,520 0 4,926 0 0 152,446 Assigned for: Public safety 0 0 127,769 0 0 0 127,769 Housing and Development 0 0 0 0 0 175,545 175,545 Total fund balances 46,233 147,520 127,769 4,926 631,162 175,545 1,133,155 Total liabilities and fund balances $ 47,530 $ 147,520 $ 129,322 $ 48,412 $ 1,211,982 $ 277,776 $ 1,862,542 PICKENS COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2022 Total Special Revenue Sheriff Library E-911 Law Law Enforcement Hotel/Motel Force Tax Drug Task Restricted Programs Exhibit C-1 90 ---PAGE BREAK--- Nonmajor Governmental REVENUES Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 463,080 $ 463,080 Intergovernmental 0 0 0 0 3,259,111 0 3,259,111 Charges for services 0 81,913 747,387 0 189,120 0 1,018,420 Fines, fees, and forfeitures 16,037 0 0 0 201,938 0 217,975 Contributions 0 17,000 0 0 17,747 0 34,747 Investment 86 345 0 386 1,259 383 2,459 Other 0 0 478 0 0 0 478 Total revenues 16,123 99,258 747,865 386 3,669,175 463,463 4,996,270 EXPENDITURES Current Judicial 14,000 0 0 0 3,623,754 0 3,637,754 Public safety 0 80,887 1,319,349 0 0 0 1,400,236 Housing and development 0 0 0 0 0 365,499 365,499 Total expenditures 14,000 80,887 1,319,349 0 3,623,754 365,499 5,403,489 Excess (deficiency) of revenues over (under) expenditures 2,123 18,371 (571,484) 386 45,421 97,964 (407,219) Other financing sources (uses) Transfers in 0 0 575,279 0 38,798 2,500 616,577 Transfers out 0 0 0 (34,621) 0 0 (34,621) Total other financing sources 0 0 575,279 (34,621) 38,798 2,500 581,956 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,123 18,371 3,795 (34,235) 84,219 100,464 174,737 Fund balances, January 1 (original) 44,110 129,149 123,974 39,161 523,279 75,081 934,754 Prior period adjustment 0 0 0 0 23,664 0 23,664 Fund balances, January 1 (restated) 44,110 129,149 123,974 39,161 546,943 75,081 958,418 Fund balances, December 31 $ 46,233 $ 147,520 $ 127,769 $ 4,926 $ 631,162 $ 175,545 $ 1,133,155 Drug Task Library E-911 Enforcement Restricted Programs Force Funds PICKENS COUNTY, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Total NONMAJOR GOVERNMENTAL FUNDS For the year ended December 31, 2022 Special Revenue Hotel/Motel Tax Sheriff Law Law Exhibit C-2 91 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally or donor restricted or committed to expenditure for particular purposes. Law Library Fund – This fund is used to account for the fines and forfeitures received that are restricted for providing a County Law Library. Sheriff Law Enforcement Fund – This fund is used to account for inmate welfare funds received, donations, and confiscated seizures restricted for law enforcement. E-911 Fund – This fund is used to account for receipt of fees imposed on land and wireless telephone lines in the County used to offset the operation and personnel costs of providing emergency services. Drug Task Force Fund – This fund is used to account for monies confiscated under Federal and Georgia law by the Pickens County Sheriff’s Office related to controlled substances offenses. Such monies are restricted to defray the cost of complex investigations and to purchase equipment relating to said investigations. Restricted Programs Fund – This fund is used to account for multiple court administered reimbursement grant monies received from various Federal and State agencies and the expenditure of these monies for the purposes intended. Hotel Motel Fund – This fund is used to account for hotel/motel tax collections that are restricted for tourism in the County. ---PAGE BREAK--- Variance REVENUES Fines and forfeitures $ 15,000 $ 16,037 $ 1,037 Investment 200 86 (114) Total revenues 15,200 16,123 923 EXPENDITURES Current Public Safety 15,200 14,000 1,200 Total expenditures 15,200 14,000 1,200 Excess (deficiency) of revenues over (under) expenditures 0 2,123 2,123 Fund balances, January 1 0 44,110 44,110 Fund balances, December 31 $ 0 $ 46,233 $ 46,233 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA LAW LIBRARY SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-3 92 ---PAGE BREAK--- Variance REVENUES Charges for service $ 96,100 $ 81,913 $ (14,187) Investment 300 345 45 Contributions 8,600 17,000 8,400 Total revenues 105,000 99,258 (5,742) EXPENDITURES Current Public Safety Contract services 10,900 6,805 4,095 Materials and supplies 28,100 8,263 19,837 Capital outlay 66,000 65,819 181 Total expenditures 105,000 80,887 24,113 Excess (deficiency) of revenues over (under) expenditures 0 18,371 18,371 Fund balances, January 1 0 129,149 129,149 Fund balances, December 31 $ 0 $ 147,520 $ 147,520 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA SHERIFF LAW ENFORCEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-4 93 ---PAGE BREAK--- Variance REVENUES Charges for services $ 670,100 $ 747,387 $ 77,287 Other 0 478 478 Total revenues 670,100 747,865 77,765 EXPENDITURES Current Public Safety Personal services 1,117,597 1,117,236 361 Contract services 209,153 197,598 11,555 Materials and supplies 11,650 4,515 7,135 Total expenditures 1,338,400 1,319,349 19,051 Excess (deficiency) of revenues over (under) expenditures (668,300) (571,484) 96,816 Other financing sources (uses) Transfers in (out) General Fund 668,300 575,279 (93,021) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 3,795 3,795 Fund balance, January 1 0 123,974 123,974 Fund balance, December 31 $ 0 $ 127,769 $ 127,769 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA E-911 SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-5 94 ---PAGE BREAK--- Variance REVENUES Investment $ 400 $ 386 $ (14) Total revenues 400 386 (14) EXPENDITURES Current Public Safety 400 0 400 Total expenditures 400 0 400 Excess (deficiency) of revenues over (under) expenditures 0 386 386 Other financing sources (uses) Transfers in (out) General Fund 0 (34,621) (34,621) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 (34,235) (34,235) Fund balances, January 1 0 39,161 39,161 Fund balances, December 31 $ 0 $ 4,926 $ 4,926 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA DRUG TASK FORCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-6 95 ---PAGE BREAK--- Variance REVENUES Intergovernmental $ 4,231,482 $ 3,259,111 $ (972,371) Charges for services 213,802 189,120 (24,682) Fines and forfeitures 242,092 201,938 (40,154) Contributions 15,000 17,747 2,747 Investment 1,002 1,259 257 Total revenues 4,703,378 3,669,175 (1,034,203) EXPENDITURES Current Judicial Personal services 1,724,148 1,286,067 438,081 Contract services 998,129 982,842 15,287 Materials and supplies 304,407 304,361 46 Payments to others 1,637,080 1,050,484 586,596 Total expenditures 4,663,764 3,623,754 1,040,010 Excess (deficiency) of revenues over (under) expenditures 39,614 45,421 5,807 Other financing sources (uses) Transfers in (out) General Fund 39,534 38,798 (736) Contingency (79,148) 0 79,148 Total other financing sources (39,614) 38,798 78,412 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 84,219 84,219 Fund balances, January 1 (original) 0 523,279 523,279 Prior period adjustment 0 23,664 23,664 Fund balances, January 1 (restated) 0 546,943 546,943 Fund balances, December 31 $ 0 $ 631,162 $ 631,162 For the year ended December 31, 2022 PICKENS COUNTY, GEORGIA RESTRICTED PROGRAMS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-7 96 ---PAGE BREAK--- Variance REVENUES Taxes $ 376,100 $ 463,080 $ 86,980 Investment 400 383 (17) Total revenues 376,500 463,463 86,963 EXPENDITURES Current Housing and Development Contract services 500 500 0 Materials and supplies 13,500 13,242 258 Payments to others 360,000 351,757 8,243 Total expenditures 374,000 365,499 8,501 Excess (deficiency) of revenues over (under) expenditures 2,500 97,964 95,464 Other financing sources (uses) Transfers in (out) General Fund (2,500) 2,500 5,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 100,464 100,464 Fund balances, January 1 0 75,081 75,081 Fund balances, December 31 $ 0 $ 175,545 $ 175,545 Budget Actual For the year ended December 31, 2022 Final PICKENS COUNTY, GEORGIA HOTEL/MOTEL TAX SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Exhibit C-8 97 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- CUSTODIAL FUNDS These funds are used to account for assets held by the County as a custodian to be expended in accordance with the conditions of its custodial capacity. Clerk of Superior Court, Probate Court, Juvenile Court and Magistrate Court - These funds account for assets and related liabilities for the collection of court related fees. Sheriff - This fund accounts for deposits held for incarcerated inmates. Tax Commissioner - This fund accounts for assets and related liabilities for the collection of taxes and tag and title fees. ---PAGE BREAK--- Total Custodial Funds ASSETS Cash $ 696,711 $ 258,005 $ 38,769 $ 1,277,921 $ 70,074 $ 2,341,480 Taxes receivable, net 2,432,578 0 0 0 0 2,432,578 Total assets 3,129,289 258,005 38,769 1,277,921 70,074 4,774,058 LIABILITIES Due to other agencies 3,129,289 4,995 9,337 95,639 12,165 3,251,425 NET POSITION Restricted for individuals, organizations, and other governments $ 0 $ 253,010 $ 29,432 $ 1,182,282 $ 57,909 $ 1,522,633 Clerk of PICKENS COUNTY, GEORGIA CUSTODIAL FUNDS STATEMENT OF FIDUCIARY NET POSITION December 31, 2022 Department Tax Probate Sheriff Commissioner Court Magistrate Court Court Superior Exhibit D-1 98 ---PAGE BREAK--- ADDITIONS Taxes collected for other agencies $ 31,143,595 $ 0 $ 0 $ 0 $ 0 $ 31,143,595 Court fees collected for other agencies 0 191,915 210,529 1,305,360 0 1,707,804 Court individual cases 0 0 0 422,036 0 422,036 Sheriff fees collected 0 0 0 0 141,264 141,264 Sheriff inmate account deposits 0 0 0 0 243,219 243,219 Total additions 31,143,595 191,915 210,529 1,727,396 384,483 33,657,918 DEDUCTIONS Taxes distributed to other agencies 31,143,595 0 0 0 0 31,143,595 Court fees distributed to other agencies 0 193,009 144,908 1,305,360 0 1,643,277 Payments to others 0 0 69,614 95,542 0 165,156 Sheriff fees distributed to other agencies 0 0 0 0 141,002 141,002 Payments from inmates to others 0 0 0 0 240,174 240,174 Total deductions 31,143,595 193,009 214,522 1,400,902 381,176 33,333,204 Change in net position 0 (1,094) (3,993) 326,494 3,307 324,714 Net position, January 1 0 254,104 33,425 855,788 54,602 1,197,919 Net position, December 31 $ 0 $ 253,010 $ 29,432 $ 1,182,282 $ 57,909 $ 1,522,633 Commissioner Clerk of Superior Court Probate Court Department Total Custodial Funds Magistrate Court PICKENS COUNTY, GEORGIA CUSTODIAL FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the year ended December 31, 2022 Sheriff Tax Exhibit D-2 99 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental Activities Invested in Capital Assets, net of related debt 41,589,227 $ 42,464,693 $ 42,944,672 $ 41,895,236 $ 41,582,225 $ 41,403,763 $ 43,120,050 $ 43,192,890 $ 42,478,827 $ 42,361,620 $ Restricted 748,173 943,046 2,183,526 3,060,636 4,675,134 3,806,983 4,351,136 3,746,142 10,264,599 9,607,455 Unrestricted 3,838,325 4,235,799 1,988,188 3,027,863 523,699 3,127,673 1,108,426 2,975,548 1,811,618 5,267,492 Total Governmental Activities Net Position 46,175,725 47,643,538 47,116,386 47,983,735 46,781,058 48,338,419 48,579,612 49,914,580 54,555,044 57,236,567 Restricted Business type Activities Invested in Capital Assets, net of related debt 7,347,900 7,194,733 7,101,628 7,711,102 8,017,055 6,998,402 7,773,391 8,026,298 9,336,236 7,976,420 Restricted 41,116 41,172 837,722 Unrestricted (2,225,348) (2,473,074) (2,545,847) (2,745,382) (3,021,287) (2,988,177) (2,802,064) (2,694,400) (4,236,896) (2,368,731) Total Business‐type Activities Net Position 5,163,668 4,762,831 4,555,781 4,965,720 4,995,768 4,847,947 4,971,327 5,331,898 5,099,340 5,607,689 Primary Government Invested in Capital Assets, net of related debt 48,937,127 49,659,426 50,046,300 49,606,338 49,599,280 48,402,165 50,893,441 51,219,188 51,815,063 50,338,040 Restricted 789,289 984,218 2,183,526 3,060,636 4,675,134 4,644,705 4,351,136 3,746,142 10,264,599 9,607,455 Unrestricted 1,612,977 1,762,725 (557,659) 282,481 (2,497,588) 139,496 (1,693,638) 281,148 (2,425,278) 2,898,761 Total Primary Government Net Position 51,339,393 $ 52,406,369 $ 51,672,167 $ 52,949,455 $ 51,776,826 $ 53,186,366 $ 53,550,939 $ 55,246,478 $ 59,654,384 $ 62,844,256 $ PICKENS COUNTY, GEORGIA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS Exhibit E-1 100 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Expenses: Governmental Activities: General government 3,388,578 $ 3,655,272 $ 3,610,343 $ 3,936,931 $ 4,393,388 $ 3,925,304 $ 4,232,770 $ 4,595,156 $ 4,777,527 4,913,551 $ Judicial 4,211,634 4,395,766 4,754,880 5,103,493 6,425,440 5,670,717 6,039,643 5,964,274 6,516,918 7,034,639 Public safety 10,540,018 10,777,290 12,071,736 12,656,456 14,598,060 13,732,265 14,969,883 15,366,236 17,484,934 16,839,952 Public works 3,452,723 4,633,500 4,884,645 6,116,049 6,311,425 7,006,435 8,062,619 6,972,201 7,793,817 10,929,737 Health and welfare 454,271 493,080 407,885 608,533 913,171 614,966 635,002 448,756 257,349 295,209 Culture and recreation 964,045 972,615 1,087,548 1,020,431 1,113,634 1,080,781 1,119,412 2,872,888 1,332,941 1,274,562 Housing and development 610,611 565,006 546,155 664,209 755,788 757,693 844,471 923,600 1,011,310 1,204,813 Interest on long‐term debt 195,720 153,459 128,136 104,003 87,911 72,037 83,303 121,611 28,771 23,105 Total Governmental Activities 23,817,600 25,645,988 27,491,328 30,210,105 34,598,817 32,860,198 35,987,103 37,264,722 39,203,567 42,515,568 Business‐type Activities: Water 2,186,264 2,165,208 2,232,705 2,206,324 2,401,116 2,404,270 2,609,295 2,673,792 3,199,884 3,825,534 Airport 358,828 656,841 520,816 496,946 580,662 649,732 1,035,345 831,611 1,001,041 2,205,744 Total Business‐type Activities 2,545,092 2,822,049 2,753,521 2,703,270 2,981,778 3,054,002 3,644,640 3,505,403 4,200,925 6,031,278 Total Primary Government 26,362,692 28,468,037 30,244,849 32,913,375 37,580,595 35,914,200 39,631,743 40,770,125 43,404,492 48,546,846 Program Revenues Governmental Activities Charges for services General government 876,930 873,106 803,574 859,616 896,509 872,661 919,246 1,167,698 1,071,946 1,032,444 Judicial 1,262,267 1,200,411 1,229,872 1,055,608 1,411,195 1,245,475 1,115,004 1,064,858 195,885 191,897 Public safety 2,073,842 2,274,172 2,755,355 3,129,532 2,797,779 2,355,225 2,265,101 1,996,066 2,732,802 2,866,006 Public works 302,865 340,580 355,239 363,440 424,710 449,996 409,380 703,906 859,104 865,255 Health and welfare 775 725 15,240 200 17,918 33,966 25,015 24,066 ‐ ‐ Culture and recreation 167,695 187,889 182,250 157,942 159,836 182,888 211,929 94,014 175,772 149,430 Housing and development 149,938 162,314 154,405 216,414 245,839 272,831 300,050 351,099 29,421 21,920 Operating grants and contributions 2,834,942 2,887,823 3,175,239 3,760,012 4,518,129 4,184,847 6,135,698 5,577,705 6,513,848 5,729,922 Capital grants and contributions ‐ 51,672 1,264,247 165,347 359,286 17,973 ‐ 8,962 760,701 31,019 Total Governmental Activities 7,669,254 7,978,692 9,935,421 9,708,111 10,831,201 9,615,862 11,381,423 10,988,374 12,339,479 10,887,893 Business‐type Activities: Water and Sewer Charges for services 2,044,799 2,085,620 2,075,598 2,274,148 2,405,684 2,487,632 2,622,072 2,811,993 2,969,863 3,410,861 Operating grants and contributions ‐ ‐ ‐ ‐ ‐ ‐ 36,333 44,445 ‐ ‐ Capital grants and contributions ‐ ‐ ‐ ‐ ‐ 16,006 ‐ ‐ 85,000 3,926 Airport Charges for services 328,694 374,594 325,750 307,668 304,959 383,543 732,888 536,670 740,962 1,010,917 Operating grants and contributions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital grants and contributions 128,063 151,731 531,386 157,770 ‐ 141,664 110,861 13,000 966,533 Total Business‐type Activities 2,373,493 2,588,277 2,553,079 3,113,202 2,868,413 2,887,181 3,532,957 3,503,969 3,808,825 5,392,237 Total Primary Government 10,042,747 10,566,969 12,488,500 12,821,313 13,699,614 12,503,043 14,914,380 14,492,343 16,148,304 16,280,130 PICKENS COUNTY, GEORGIA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Exhibit E-2, continued 101 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net (Expenses) Revenue Governmental Activities (16,148,346) (17,667,296) (17,555,907) (20,501,994) (23,767,616) (23,244,336) (24,605,680) (26,276,348) (26,864,088) (31,627,675) Business‐type Activities (171,599) (233,772) (200,442) 409,932 (113,365) (166,821) (111,683) (1,434) (392,100) (639,041) Total Primary Government Net Expense (16,319,945) (17,901,068) (17,756,349) (20,092,062) (23,880,981) (23,411,157) (24,717,363) (26,277,782) (27,256,188) (32,266,716) General Revenues and Other Changes in Net Position Governmental Activities Property taxes 11,010,792 10,483,955 10,744,340 12,102,447 12,102,775 13,001,906 13,111,108 14,094,266 14,547,046 17,412,502 Sales taxes 6,633,643 6,892,818 6,925,062 7,065,668 7,694,259 8,430,048 9,176,567 10,654,570 12,338,995 14,375,222 Insurance premium taxes 1,162,534 1,226,610 1,313,298 1,397,559 1,496,738 1,613,886 1,730,464 1,832,076 1,906,424 2,210,705 Intangible 182,978 172,785 188,503 368,329 384,426 306,133 360,511 562,787 574,757 444,828 Other taxes 344,923 360,113 355,425 363,124 538,990 530,004 466,622 501,587 902,890 1,105,540 Interest and investment revenue 5,367 4,209 20,872 25,909 10,452 17,795 30,715 10,979 11,706 22,002 Other ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 457,791 277,708 Grants and contributions not restricted ‐ 6,201 21,496 21,936 ‐ 49,496 52,228 48,718 ‐ ‐ Gain/(loss) on sale of capital assets ‐ 34,590 44,425 24,372 14,697 37,382 152,320 232,333 ‐ 4,500 Transfers 60,105 14,558 26,336 ‐ (143,409) ‐ (233,662) (326,000) (359,980) (1,141,408) Total Governmental Activities 19,400,342 19,195,839 19,639,757 21,369,344 22,098,928 23,986,650 24,846,873 27,611,316 30,379,629 34,711,599 Business‐type Activities Unrestricted investment earnings 56 56 16 7 3 ‐ ‐ ‐ ‐ 10 Grants and contributions not restricted ‐ ‐ ‐ ‐ ‐ ‐ 1,401 3 ‐ ‐ Gain/(loss) on sale of capital assets ‐ ‐ 19,712 ‐ ‐ 19,000 ‐ 36,002 ‐ 4,900 Other ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 21,790 1,072 Transfers (60,105) (14,558) (26,336) ‐ 143,409 ‐ 233,662 326,000 359,980 1,141,408 Total Business‐type Activities (60,049) (14,502) (6,608) 7 143,412 19,000 235,063 362,005 381,770 1,147,390 Total Primary Government 19,340,293 19,181,337 19,633,149 21,369,351 22,242,340 24,005,650 25,081,936 27,973,321 30,761,399 35,858,989 Change in Net Position Governmental Activities 3,251,996 1,528,543 2,083,850 867,350 (1,668,688) 742,314 241,193 1,334,968 3,515,541 3,083,924 Business‐type Activities (231,648) (248,274) (207,050) 409,939 30,047 (147,821) 123,380 360,571 (10,330) 508,349 Total Primary Government 3,020,348 $ 1,280,269 $ 1,876,800 $ 1,277,289 $ (1,638,641) $ 594,493 $ 364,573 $ 1,695,539 $ 3,505,211 $ 3,592,273 $ PICKENS COUNTY, GEORGIA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Exhibit E-2, continued 102 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Nonspendable: Prepaids 36,673 $ 20,653 $ 150 $ 112,103 $ 37,529 $ 64,838 $ 550,653 $ 723,390 $ 108,756 $ 117,547 $ Inventory 42,701 20,791 32,120 21,356 39,326 49,820 51,157 59,495 104,463 27,202 Restricted Capital outlay projects ‐ ‐ ‐ 125,000 518,329 572,203 628,172 572,636 ‐ ‐ Judicial 38,301 56,496 76,313 126,578 95,537 137,692 197,782 151,108 200,375 200,375 Unassigned 4,088,445 5,732,762 6,352,457 7,312,571 8,013,069 8,234,338 7,443,233 10,082,804 10,072,819 12,638,728 Total General Fund 4,206,120 5,830,702 6,461,040 7,697,608 8,703,790 9,058,891 8,870,997 11,589,433 10,486,413 12,983,852 All Other Governmental Funds Nonspendable: Prepaids 2,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Restricted: Judicial 150,930 83,038 228,479 455,788 186,188 356,277 372,057 509,031 567,389 677,395 Public Safety ‐ 263,621 289,174 200,917 198,692 263,099 321,126 315,007 168,310 152,446 Housing and Development 12,813 14,224 20,837 30,499 34,494 23,706 20,624 15,264 75,081 ‐ Capital Outlay Projects 275,972 525,667 1,568,723 2,248,432 3,641,894 2,454,006 2,811,375 2,179,448 9,253,444 8,577,239 Assigned Public Safety ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 123,974 127,769 Housing and Development ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 175,545 Total All Other Governmental Funds 441,715 886,550 2,107,213 2,935,636 4,061,268 3,097,088 3,525,182 3,018,750 10,188,198 9,710,394 Total All Governmental Funds 4,647,835 $ 6,717,252 $ 8,568,253 $ 10,633,244 $ 12,765,058 $ 12,155,979 $ 12,396,179 $ 14,608,183 $ 20,674,611 $ 22,694,246 $ PICKENS COUNTY, GEORGIA FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Other Governmental Funds Exhibit E-3 103 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues Taxes 18,272,931 $ 20,292,537 $ 19,650,239 $ 20,947,833 $ 22,079,858 $ 23,383,845 $ 24,776,109 $ 27,645,397 $ 31,300,550 $ 34,409,438 $ Licenses and permits 281,861 288,022 292,090 347,577 413,660 445,799 470,932 547,158 642,024 647,063 Fines and penalties 848,395 633,791 726,784 605,404 891,546 729,014 717,149 448,380 570,555 473,991 Charges for services 3,627,345 4,011,729 4,275,996 4,717,149 4,546,333 4,107,467 3,959,181 3,915,138 4,122,046 4,200,865 Intergovernmental 2,822,010 2,945,101 4,427,432 3,874,880 4,840,773 4,121,775 6,117,237 5,592,113 6,980,681 5,529,296 Contributions 12,932 28,985 33,549 72,414 22,766 112,568 70,689 34,308 50,868 66,489 Investment earnings 5,366 4,207 20,872 25,908 24,330 35,768 30,714 19,942 18,226 35,780 Other revenues 76,717 105,654 201,065 112,623 102,246 130,761 98,460 491,031 457,791 277,708 Total revenues 25,947,557 28,310,026 29,628,027 30,703,788 32,921,512 33,066,997 36,240,471 38,693,467 44,142,741 45,640,630 Expenditures General government 2,918,883 3,105,355 3,004,816 3,292,362 3,232,962 3,387,005 3,588,495 3,918,661 4,322,237 4,395,313 Judicial 4,039,579 4,310,192 4,684,573 4,988,961 5,132,788 5,366,413 5,386,594 5,463,671 6,449,688 7,130,523 Public safety 9,313,851 9,769,301 11,144,914 11,463,221 12,166,524 12,794,226 13,580,828 13,954,155 15,673,171 15,615,826 Public works 2,750,613 3,420,360 3,415,354 4,525,874 4,235,673 5,166,405 5,948,305 4,680,193 3,999,109 4,026,573 Health and welfare 361,221 384,276 340,382 508,945 881,477 576,520 596,750 411,332 201,555 630,828 Culture and recreation 854,736 864,775 980,876 905,225 924,294 975,777 1,013,168 2,763,765 1,215,186 1,206,454 Housing and development 574,814 542,074 503,709 554,070 552,563 601,660 669,308 745,135 962,706 800,521 Capital Outlay 7,154,400 218,708 2,713,553 869,109 1,321,048 2,451,366 3,812,163 4,535,966 2,938,408 6,622,339 Intergovernmental 432,038 1,017,375 1,155,235 1,274,127 1,584,384 1,594,425 1,839,772 1,676,972 1,320,815 1,539,397 Debt Service Principal 1,281,644 2,815,924 916,609 775,261 911,871 946,115 432,018 552,986 47,110 96,989 Interest 195,720 153,458 128,136 104,003 87,910 72,036 83,303 121,611 10,921 19,073 Total expenditures 29,877,499 26,601,798 28,988,157 29,261,158 31,031,494 33,931,948 36,950,704 38,824,447 37,140,906 42,083,836 Excess (deficiency) of revenues over (under) expenditures (3,929,942) 1,708,228 639,870 1,442,630 1,890,018 (864,951) (710,233) (130,980) 7,001,835 3,556,794 Other Financing Sources (Uses) Capital lease proceeds 98,960 136,640 1,047,772 271,056 450,000 218,490 ‐ 2,523,234 ‐ ‐ Proceeds from sale of assets ‐ 6,201 44,425 51,305 14,698 37,382 154,095 145,750 ‐ 6,650 Payment to refunded bond escrow ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Issuance of notes payable ‐ ‐ ‐ 300,000 ‐ ‐ 1,030,000 ‐ ‐ ‐ Transfers in 551,857 528,261 699,556 605,118 614,620 723,358 672,702 728,351 643,001 882,888 Transfers out (491,752) (513,703) (673,221) (605,118) (758,029) (723,358) (906,364) (1,054,351) (1,002,981) (2,024,296) Total other financing sources (uses) 159,065 157,399 1,118,532 622,361 321,289 255,872 950,433 2,342,984 (359,980) (1,134,758) Net Change in Fund Balance (3,770,877) $ 1,865,627 $ 1,758,402 $ 2,064,991 $ 2,211,307 $ (609,079) $ 240,200 $ 2,212,004 $ 6,641,855 $ 2,422,036 $ PICKENS COUNTY, GEORGIA CHANGE IN FUND BALANCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Exhibit E-4 104 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Primary Government: Governmental Activities: General government 896,496 $ 891,237 $ 823,068 $ 1,093,620 $ 1,213,857 $ 884,374 $ 936,030 $ 1,206,971 $ 3,443,641 $ 1,610,751 $ Judicial 3,285,898 3,409,702 3,658,563 3,736,327 5,050,617 4,582,788 6,757,216 4,467,483 3,402,164 4,322,897 Public safety 2,651,462 2,752,743 3,335,977 3,906,691 3,247,886 3,065,960 2,677,481 2,550,588 3,252,293 3,470,235 Public works 302,865 340,580 355,239 442,071 624,436 467,969 409,380 2,158,543 1,956,976 1,157,485 Health and welfare 214,900 234,227 288,421 153,056 288,730 159,052 89,337 89,226 ‐ 73,464 Culture and recreation 167,695 187,889 182,250 157,942 159,836 182,888 211,929 94,014 186,920 155,496 Housing and development 149,938 162,314 1,291,933 218,404 245,839 272,831 300,050 421,549 97,485 97,565 Total Governmental Activities 7,669,254 7,978,692 9,935,451 9,708,111 10,831,201 9,615,862 11,381,423 10,988,374 12,339,479 10,887,893 Business‐type Activities: Water and Sewer 2,044,799 2,085,620 2,075,598 2,274,148 2,405,685 2,503,638 2,658,405 2,856,438 3,054,863 3,414,787 Airport 328,694 502,657 477,481 839,054 462,729 383,543 874,552 647,531 753,962 1,977,450 Total Business‐type Activities 2,373,493 2,588,277 2,553,079 3,113,202 2,868,414 2,887,181 3,532,957 3,503,969 3,808,825 5,392,237 Total Primary Government 10,042,747 $ 10,566,969 $ 12,488,530 $ 12,821,313 $ 13,699,615 $ 12,503,043 $ 14,914,380 $ 14,492,343 $ 16,148,304 $ 16,280,130 $ PICKENS COUNTY, GEORGIA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (accrual basis of accounting) Exhibit E-5 105 ---PAGE BREAK--- Real/Personal Motor Vehicle/ Insurance Special Purpose Property Intangible TAVT Premium Local Option Local Option Other Year Ended Tax Tax Tax Tax Sales Tax Sales Tax Taxes Total 12/31/2013 8,412,286 149,864 1,587,130 1,162,534 3,918,069 2,715,573 327,475 18,272,931 12/31/2014 10,402,675 127,619 1,302,642 1,226,610 4,054,541 2,838,277 340,172 20,292,536 12/31/2015 8,589,467 142,496 1,430,125 1,313,298 4,073,495 2,851,567 344,100 18,744,548 12/31/2016 10,523,592 184,326 1,363,945 1,397,559 4,155,507 2,910,161 350,399 20,885,490 12/31/2017 10,622,471 284,854 1,453,011 1,496,738 4,526,031 3,168,228 528,525 22,079,858 12/31/2018 11,014,513 215,537 1,631,886 1,613,886 4,958,587 3,471,461 477,976 23,383,846 12/31/2019 11,167,268 260,137 1,953,704 1,730,464 5,394,078 3,782,489 487,969 24,776,109 12/31/2020 11,861,068 427,123 2,378,288 1,832,076 6,270,311 4,384,259 492,272 27,645,397 12/31/2021 12,976,148 574,757 2,830,035 1,906,424 7,257,225 5,081,770 674,191 31,300,550 12/31/2022 13,389,342 444,828 2,860,754 2,210,705 8,458,226 5,916,996 1,215,478 34,496,329 PICKENS COUNTY, GEORGIA TAX REVENUES BY SOURCE , GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Real/Personal Property Tax , 13,389,342 Intangible Tax , 444,828 Motor Vehicle/TAVT Tax , 2,860,754 Insurance Premium Tax , 2,210,705 Special Purpose Local Option Sales Tax , 8,458,226 Local Option Sales Tax , 5,916,996 Other Taxes , 1,215,478 2022 Tax Revenues by Source Exhibit E-6 106 ---PAGE BREAK--- Less: Tax Exempt Property Total Direct Tax Rate Digest Assessed Estimated Assessed Estimated Assessed Estimated Assessed Estimated Year Value Actual Value Value Actual Value Value Actual Value Value Actual Value 2013 894,248,419 2,235,621,048 226,250,396 2,235,621,048 44,669,203 111,673,008 99,508,354 1,484,601,533 1,387,804,375 9.135 2014 894,463,679 2,236,159,198 225,222,885 2,236,159,198 44,397,943 110,994,858 98,570,083 1,465,092,676 1,369,499,825 9.999 2015 900,782,527 2,251,956,318 229,029,898 2,251,956,318 46,467,986 116,169,965 99,154,977 1,457,859,871 1,358,704,894 9.947 2016 909,395,850 2,273,489,625 232,807,566 2,273,489,625 48,454,262 121,135,655 100,740,995 1,463,639,794 1,362,898,799 9.908 2017 928,912,294 2,322,280,735 239,003,730 2,322,280,735 48,369,842 120,924,605 104,972,889 1,489,827,381 1,384,854,492 9.900 2018 952,955,127 2,382,387,818 244,056,902 2,382,387,818 51,937,570 129,843,925 122,211,082 1,523,094,636 1,410,883,554 9.663 2019 982,040,374 2,455,100,935 254,279,726 2,455,100,935 52,519,293 131,298,233 112,997,671 1,564,143,570 1,451,145,899 9.362 2020 1,036,766,846 2,591,917,115 264,616,697 2,591,917,115 52,325,462 130,813,655 110,959,786 1,637,371,344 1,526,411,558 9.138 2021 1,096,142,298 2,740,355,745 272,496,455 2,740,355,745 53,627,676 134,069,190 110,161,530 1,715,723,032 1,505,561,502 8.965 2022 1,260,010,601 3,150,026,503 303,282,389 3,150,026,503 58,287,621 145,719,053 113,115,609 1,934,214,374 1,821,098,765 8.965 * Source: Pickens County Tax Commissioner Note: Property in Pickens County is assessed at 40% of actual value. Tax rates are per $1,000 of assessed value. PICKENS COUNTY, GEORGIA ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Residential Property Commercial Property Industrial Property Total Reporting Entity Exhibit E-7 107 ---PAGE BREAK--- General State Total Year of Maintenance Maintenance Bonded Direct and Levy and Operations and Operations Debt Total Overlapping 2013 6.687 0.15 16.100 ‐ 16.100 22.937 2014 7.220 0.10 16.100 ‐ 16.100 23.420 2015 7.222 0.50 16.100 ‐ 16.100 23.822 2016 7.950 0.00 15.980 ‐ 15.980 23.930 2017 7.883 0.00 15.670 ‐ 15.670 23.553 2018 7.846 0.00 15.330 ‐ 15.330 23.176 2019 7.779 0.00 15.180 ‐ 15.180 22.959 2020 7.613 0.00 14.830 ‐ 14.830 22.443 2021 7.489 0.00 14.300 ‐ 14.300 21.789 2022 7.438 0.00 12.900 ‐ 12.900 20.338 Schools PICKENS COUNTY, GEORGIA PROPERTY TAX RATES ‐ DIRECT AND OVERLAPPING (Per $1,000 of Assessed Value) LAST TEN FISCAL YEARS 6.687 7.220 7.222 7.950 7.883 7.846 7.779 7.613 7.489 7.438 6.00 6.20 6.40 6.60 6.80 7.00 7.20 7.40 7.60 7.80 8.00 8.20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Pickens County 10 Year Millage Rate Exhibit E-8 108 ---PAGE BREAK--- Fiscal Year Pickens County SPLOST Pickens County LOST Pickens Schools E‐SPLOST State Total Sales Tax Rate 2013 1.00% 1.00% 1.00% 4.00% 7.00% 2014 1.00% 1.00% 1.00% 4.00% 7.00% 2015 1.00% 1.00% 1.00% 4.00% 7.00% 2016 1.00% 1.00% 1.00% 4.00% 7.00% 2017 1.00% 1.00% 1.00% 4.00% 7.00% 2018 1.00% 1.00% 1.00% 4.00% 7.00% 2019 1.00% 1.00% 1.00% 4.00% 7.00% 2020 1.00% 1.00% 1.00% 4.00% 7.00% 2021 1.00% 1.00% 1.00% 4.00% 7.00% 2022 1.00% 1.00% 1.00% 4.00% 7.00% PICKENS COUNTY, GEORGIA DIRECT AND OVERLAPPING SALES TAX RATES LAST TEN FISCAL YEARS (Unaudited) Exhibit E-9 109 ---PAGE BREAK--- Taxpayer Assessed Value Rank % of Total Assessment Assessed Value Rank % of Total Assessment Amicalola EMC 16,589,405 $ 1 12.74% 13,314,882 1 11.08% J M Huber Corporation 15,692,805 $ 2 12.05% 7,330,951 4 6.10% Imerys Marble Inc 8,780,991 $ 3 6.74% 8,962,700 2 7.46% Georgia Power Company 7,232,292 $ 4 5.55% 5,472,531 7 4.56% Big Canoe Property Owners 6,469,146 $ 5 4.97% Imerys Marble Inc #41 6,210,920 $ 6 4.77% 4,643,124 10 3.86% Georgia Transmission Corp 5,311,453 $ 7 4.08% Eric S Zorn as Turstee of Walmart 4,963,333 $ 8 3.81% 4,914,354 8 4.09% TNT Garland Mtn Enterprises LLC 4,883,740 $ 9 3.75% MLF Gateway Development LLC 4,564,158 $ 10 3.50% Forestar (USA) Real Estate Group Inc 8,910,705 3 7.42% Big Canoe Company LLC 5,870,896 5 4.89% 2573 LLC 5,775,916 6 4.81% SpringBank LLC 4,807,758 9 4.00% Mountainside Manor LP Community Bank of Pickens County SPP Quality Rubber AT&T Mobility LLC 80,698,243 $ 61.95% 70,003,817 $ 58.27% Source: Pickens County County Tax Commissioners Office PICKENS COUNTY, GEORGIA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2013 2022 Exhibit E-10 110 ---PAGE BREAK--- Tax Levied for the Calendar Year Amount Percentage of Levy Dates used for previous col. Amount Percentage of Levy 2013 29,089,757 25,068,219 86.18% 4,021,538 01‐01‐13 to 12‐31‐20 29,089,757 100.00% 2014 29,797,767 27,083,968 90.89% 2,713,799 01‐01‐14 to 12‐31‐21 29,797,767 100.00% 2015 29,943,739 26,714,050 89.21% 3,229,689 01‐01‐15 to 12‐31‐22 29,943,739 100.00% 2016 31,168,206 27,851,936 89.36% 3,316,270 01‐01‐16 to 12‐31‐22 31,168,206 100.00% 2017 31,297,576 28,750,179 91.86% 2,547,397 01‐01‐17 to 12‐31‐22 31,297,576 100.00% 2018 31,634,773 28,831,296 91.14% 2,803,477 01‐01‐18 to 12‐31‐22 31,634,773 100.00% 2019 32,458,045 29,586,845 91.15% 2,871,201 01‐01‐19 to 12‐31‐22 32,458,045 100.00% 2020 33,444,914 30,619,242 91.55% 2,825,672 01‐01‐20 to 12‐31‐22 33,444,914 100.00% 2021 34,246,036 31,527,147 92.06% 2,718,889 01‐01‐21 to 12‐31‐22 34,246,036 100.00% 2022 36,405,597 33,319,048 91.52% 3,086,549 01‐01‐22 to 12‐31‐22 36,405,597 100.00% Source: Pickens County Tax Commissioner PICKENS COUNTY, GEORGIA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended Collected within the Fiscal Year of the Levy Collections in Subsequent Years Total Collections to Date (Unaudited) Exhibit E-11 111 ---PAGE BREAK--- Year of Tax Levy 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 2013 281 $ 233 $ 141 $ 106 $ 15 $ 8 $ ‐ $ 2014 1,579 452 119 115 53 31 ‐ 2015 4,265 2,170 353 110 34 58 27 2016 ‐ ‐ 2,238 447 75 120 45 2017 ‐ ‐ ‐ 2,498 383 [PHONE REDACTED] ‐ ‐ ‐ 2,980 2,530 1,[PHONE REDACTED] ‐ ‐ ‐ 263 1,373 4,[PHONE REDACTED] ‐ ‐ ‐ ‐ ‐ 16,970 5,802 2021 ‐ ‐ ‐ ‐ ‐ ‐ 15,412 2022 ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 6,125 $ 2,855 $ 2,850 $ 6,516 $ 4,462 $ 23,880 $ 22,049 $ Source: Pickens County Tax Commissioner Note: Information prior to 2016, not available. PICKENS COUNTY, GEORGIA TOTAL PROPERTY LIENS (FIFAs) LAST SEVEN FISCAL YEARS Exhibit E-12 112 ---PAGE BREAK--- Fiscal Year Bonds Notes from Direct Borrowing Bonds Notes from Direct Borrowing Total Primary Government % of Personal Income Per Capita Population Personal Income 2013 2,000,000 $ 2,692,981 $ 6,617,970 $ 1,822,807 $ 13,133,758 $ 1.11% 429.70 $ 30,565 38,877 $ 2014 ‐ 2,013,698 10,561,608 1,652,022 14,227,328 1.14% 459.79 30,943 40,165 2015 ‐ 2,144,861 11,776,713 148,340 14,069,914 1.06% 449.22 31,321 42,419 2016 ‐ 1,940,656 10,818,273 80,995 12,839,924 0.90% 405.06 31,699 44,819 2017 ‐ 1,478,785 10,187,637 38,858 11,705,280 0.79% 364.91 32,077 46,360 2018 ‐ 751,161 10,622,130 1,575,109 12,948,400 0.84% 398.96 32,455 47,383 2019 ‐ 1,349,143 10,511,938 1,568,477 13,429,558 0.83% 409.03 32,833 49,335 2020 ‐ 3,319,392 9,869,355 1,738,906 14,927,653 0.87% 449.41 33,216 51,623 2021 ‐ 2,921,263 10,529,974 1,910,629 15,361,866 0.83% 457.28 33,594 55,398 2022 ‐ 2,533,213 10,594,729 2,149,255 15,277,197 0.80% 444.75 34,350 55,398 Current Information is not yet available. Used prior year for calculation. Governmental Activities PICKENS COUNTY, GEORGIA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Business‐Type Activities Exhibit E-13 113 ---PAGE BREAK--- Estimated Percentage Estimated Share of Governmental Unit Outstanding Debt Available Overlapping Debt City of Jasper ‐ $ 0% ‐ $ City of Nelson ‐ 0% ‐ City of Talking Rock ‐ 0% ‐ Pickens County County School System ‐ 0% ‐ Subtotal, overlapping debt ‐ $ Pickens County, Georgia direct debt 2,533,213 $ PICKENS COUNTY, GEORGIA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2022 (Unaudited) Exhibit E-14 114 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Assessed Value 1,387,804 $ 1,369,500 $ 1,358,705 $ 1,362,899 $ 1,384,854 $ 1,410,884 $ 1,451,146 $ 1,526,412 $ 1,605,562 $ 1,821,099 $ Debt Limit: 10% of assessed 138,780 136,950 135,871 136,290 138,485 141,088 145,115 152,641 160,556 182,110 Less: Debt applicable to debt limit 2,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Legal Debt Margin 136,780 $ 136,950 $ 135,871 $ 136,290 $ 138,485 $ 141,088 $ 145,115 $ 152,641 $ 160,556 $ 182,110 $ Note: Numbers are in thousands. PICKENS COUNTY, GEORGIA LEGAL DEBT MARGIN INFORMATION LAST TEN YEARS (dollars in thousands) Fiscal Year Exhibit E-15 115 ---PAGE BREAK--- Fiscal Year Principal Interest Coverage Gross Revenue Less: Operating Expenses Net Available Revenue Gross Revenue Less: Operating Expenses Net Available Revenue Total Net Revenue Available 2013 175 $ 68 $ 4.00 3,411 $ 2,482 $ 929 $ 328 $ 285 $ 43 $ 972 $ 2014 291 349 1.03 2,987 2,246 741 375 455 (80) 661 2015 298 478 1.37 2,812 1,771 1,041 326 306 20 1,061 2016 471 320 1.14 2,622 1,758 864 308 273 35 899 2017 483 263 1.19 2,488 1,571 917 305 336 (31) 886 2018 495 318 1.00 2,406 1,606 800 384 367 17 817 2019 548 176 1.34 2,274 1,404 870 733 634 99 969 2020 537 315 0.84 2,095 1,442 653 537 476 61 714 2021 578 290 1.10 2,085 1,223 862 741 647 94 956 2022 359 257 1.25 2,044 1,231 813 1,011 1,057 (46) 767 Note: Numbers are in thousands. Debt Service PICKENS COUNTY, GEORGIA PLEDGED‐ REVENUE COVERAGE LAST TEN FISCAL YEARS (dollars in thousands) Airport Authority Water Department Exhibit E-16 116 ---PAGE BREAK--- Net Operating Fiscal Year Water Revenue Cost of Sales Personal Services Depreciation Total Expenses Income (loss) 2022 3,411 $ 1,418 $ 1,064 $ 701 $ 3,183 $ 228 2021 2,987 1,170 1,076 786 3,032 (45) 2020 2,812 1,041 730 751 2,[PHONE REDACTED] 2,622 1,096 662 670 2,[PHONE REDACTED] 2,488 993 578 661 2,[PHONE REDACTED] 2,406 1,021 585 628 2,[PHONE REDACTED] 2,274 871 533 621 2,[PHONE REDACTED] 2,095 973 469 606 2,048 47 2014 2,085 746 477 591 1,[PHONE REDACTED] 2,044 714 517 557 1,788 256 Total 21,813 $ 8,625 $ 5,627 $ 5,871 $ 20,123 $ 1,690 $ Note: The increase in expenses is due to rising costs of supplies and services. PICKENS COUNTY, GEORGIA LAST TEN FISCAL YEARS (dollars in thousands) WATER DEPARTMENT OPERATING REVENUES/EXPENSES 2,987 1,170 1,076 786 Water Revenue/Expenses Water Revenue Cost of Sales Personal Services Depreciation Exhibit E-17 117 ---PAGE BREAK--- 2017 2018 2019 2020 2021 2022 Purchased 242,704 258,652 263,453 260,149 304,671 377,925 Number of Gallons of water Sold 186,641 213,745 208,272 204,518 267,575 322,870 Note: Information prior to 2017, not available. PICKENS COUNTY, GEORGIA WATER DEPARTMENT GALLONS BOUGHT AND SOLD LAST SIX YEARS (gallons in thousands) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2017 2018 2019 2020 2021 2022 Gallons in Thousands Gallons of Water Bought and Sold Number of Gallons of water Purchased Number of Gallons of water Sold Exhibit E-18 118 ---PAGE BREAK--- Customer Usage (Gal) Billed Amount Rank Usage (Gal) Billed Amount Rank City of Jasper #3 64,966 110,442 $ 1 City of Jasper #1 17,227 32,214 $ 2 Cherokee County Water 13,937 33,450 $ 3 9,758 22,932 $ 1 City of Jasper #2 12,595 22,294 $ 4 5,691 9,228 $ 3 City of Fairmount 10,173 19,328 $ 5 4,670 8,893 $ 4 Pilgrims Pride 3,386 30,871 $ 6 3,591 25,765 $ 5 Tsitaga Farm 1,446 13,407 $ 7 Bihun's Barbecue 1,255 9,059 $ 8 Josh Gibbons 1,231 8,339 $ 9 Georgia Stone Quarries 1,126 11,804 $ 10 Big Canoe 7,812 18,865 $ 2 Richard Bundy 3,113 20,718 $ 6 Imerys 3,085 21,420 $ 7 Black Crow Ventures 1,694 12,726 $ 8 Foothills Financial 1,628 13,217 $ 9 Housing Authority 1,361 10,658 $ 10 127,341.23 291,206 $ 42,401.70 164,421 $ Source: Pickens County Water Department Note: Information prior to 2017, not available. WATER DEPARTMENT PRINCIPAL CUSTOMERS CURRENT YEAR AND FIVE YEARS AGO (gallons in thousands) PICKENS COUNTY, GEORGIA 2022 2017 Exhibit E-19 119 ---PAGE BREAK--- LAST TEN FISCAL YEARS Personal Per Capita Estimated Income Personal Median School Unemployment Year Ended Population (in thousands) Income Age Enrollment Rate 12/31/2013 30,565 1,144,928 38,877 * N/A 4,304 7.10% 12/31/2014 30,943 1,200,403 40,165 * N/A 4,331 5.50% 12/31/2015 31,321 1,282,678 42,419 * N/A 4,331 4.90% 12/31/2016 31,699 1,379,205 44,819 * N/A 4,339 4.60% 12/31/2017 32,077 1,468,858 46,360 * N/A 4,361 3.70% 12/31/2018 32,455 1,525,816 47,383 * N/A 4,354 3.30% 12/31/2019 32,833 1,619,850 49,335 * N/A 4,349 2.50% 12/31/2020 33,216 1,720,748 51,623 45.4 4,307 3.80% 12/31/2021 33,594 1,884,874 55,398 46.1 4,143 2.30% 12/31/2022 34,350 1,884,874 55,398 46.1 4,048 2.20% Note: * = Information not available = Current Information is not yet available. Using prior year for calculation purposes. PICKENS COUNTY, GEORGIA DEMOGRAPHIC AND ECONOMIC STATISTICS Sources: Georgia Department of Labor, Bureau of the Census, Homefacts.com, and Pickens County School District. Exhibit E-20 120 ---PAGE BREAK--- Employer Employees Rank % of Total County Employment Employees Rank % of Total County Employment Pickens County Schools 617 1 3.97% 612 1 3.94% Piedmont Mountainside Hospital 540 2 3.48% 535 2 3.44% Pickens County Board of Commiss 328 3 2.11% 326 3 2.10% Royston LLC 285 4 1.83% 280 4 1.80% Home Depot 132 5 0.85% 128 5 0.82% Walmart 130 6 0.84% 127 6 0.82% Kroger 128 7 0.82% 124 7 0.80% Ingles 120 8 0.77% 118 8 0.76% Huber Engineered Materials 107 9 0.69% 104 10 0.67% Amicalola EMC 106 10 0.68% 106 9 0.68% 2,493 $ 16.05% 2,460 $ 15.84% Source: GrowPickens.com Note: Information before 2021 not available PRINCIPAL EMPLOYERS PICKENS COUNTY, GEORGIA 2022 2021 CURRENT YEAR AND ONE YEAR AGO Exhibit E-21 121 ---PAGE BREAK--- Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government 34 33 31 33 32 34 67 38 37 40 Judicial 56 58 60 72 71 74 78 75 77 75 Public Safety 176 177 178 177 182 177 187 178 177 153 Public Works 45 40 42 42 46 43 47 53 57 60 Health and Welfare ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Culture and Recreation 9 9 9 8 8 9 8 9 32 10 Housing and Development 8 7 7 7 8 8 8 7 8 9 328 324 328 339 346 344 395 359 389 346 PICKENS COUNTY, GEORGIA FULL‐TIME EQUIVALENT EMPLOYEES BY FUNCTION FOR THE LAST TEN FISCAL YEARS 40 75 153 60 ‐ 10 9 ‐ 20 40 60 80 100 120 140 160 180 General Government Judicial Public Safety Public Works Health and Welfare Culture and Recreation Housing and Development Full‐time Equivalent Pickens County Government Employees by Function/Program Exhibit E-22 122 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government Voter Registration/Elections Precinct locations 12 12 12 12 12 12 12 12 12 12 Advance voting locations 1 1 1 1 1 1 1 1 1 1 Voters * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 23,664 23,499 Finance Accounts payable checks issued * N/A * N/A 4,151 4,695 4,275 4,664 4,754 5,623 4,657 5,068 Payroll checks issued * N/A * N/A 2,566 2,137 1,792 1,799 1,562 1,422 1,420 1,611 Payroll direct deposits issued * N/A * N/A 6,625 7,270 7,565 7,587 7,963 8,329 8,345 8,595 Human Resources New hires 118 66 107 130 88 107 81 74 127 208 Terminations 55 43.5 78 87.5 64.5 62 61 50 73.5 77 Employees eligible for health insurance plan 88 57 109 105 86 93 73 73 102 100 254 271 274 274 280 290 284 295 300 311 Tax Commissioner Real property parcels 21,462 21,040 20,889 20,635 20,549 20,515 20,484 20,460 20,477 20,482 Personal property acct. 3,124 3,026 2,880 2,914 2,801 2,825 2,675 2,839 3,023 3,015 Judicial Superior Court Total Criminal Filings * N/A * N/A * N/A 883 895 675 760 723 595 532 Total Domestic Filings * N/A * N/A * N/A 348 322 316 461 304 332 391 General Civil Cases Filed * N/A * N/A * N/A 216 218 185 257 277 254 303 Contracts * N/A * N/A * N/A 86 80 75 100 109 91** N/A Torts (Combined) * N/A * N/A * N/A 40 0 12 38 56 31** N/A Real Property * N/A * N/A * N/A 14 23 21 36 21 21** N/A Civil Appeals * N/A * N/A * N/A 4 6 3 4 3 N/A Magistrate Court Total Warrants * N/A * N/A * N/A * N/A * N/A * N/A 784 889 700** N/A Misdemeanors * N/A * N/A * N/A * N/A * N/A * N/A 23 5 N/A Civil Filings * N/A * N/A * N/A * N/A * N/A * N/A 718 572 590** N/A Total Criminal Filings * N/A * N/A * N/A * N/A * N/A * N/A 290 175 139** N/A Probate Court Marriage Licenses Issued * N/A * N/A * N/A * N/A * N/A * N/A 269 255 324** N/A Firearm Licenses Issued * N/A * N/A * N/A * N/A * N/A * N/A 1,020 1,661 1,345** N/A Juvenile Court Total Delinquency Cases * N/A * N/A * N/A * N/A * N/A * N/A 64 35 89** N/A Dependency * N/A * N/A * N/A * N/A * N/A * N/A 44 36 41** N/A CHINS * N/A * N/A * N/A * N/A * N/A * N/A 40 39 83** N/A Public Safety Law Enforcement Physical Arrests 1,172 1,151 1,431 1,430 1,330 1,223 1,202 931 871 852 Emergency Medical Services EMS Dispatches * N/A * N/A * N/A * N/A * N/A 4,597 5,952 5,968 6,714 7,447 Emergency 911 All calls * N/A * N/A * N/A * N/A 28,847 59,520 28,962 29,380 27,595 26,705 Inbound calls * N/A * N/A * N/A * N/A * N/A * N/A * N/A 65,653 68,949 61,207 Outbound calls * N/A * N/A * N/A * N/A * N/A * N/A * N/A 19,358 22,653 17,640 Dispatched calls for police * N/A * N/A * N/A * N/A 15,548 14,983 14,106 13,748 14,375 13,482 Dispatched calls for fire * N/A * N/A * N/A * N/A 5,378 5,614 5,612 5,580 5,666 58,517 Average time to answer ‐ E911 calls (in sec) * N/A * N/A * N/A * N/A 8 15 11 15 8 14 Average time to answer ‐ other calls (in sec) * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A Call volume 0700hrs ‐ 1900hrs ‐ % * N/A * N/A * N/A * N/A 65% 66% 66% 66% 66% 66% Call volume 1900hrs ‐ 0700hrs ‐ * N/A * N/A * N/A * N/A 35% 34% 34% 34% 34% 34% Percent E911 calls answered in less than 10 seconds * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A Percent other calls answered in less than 10 seconds * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A Fire Emergency Medical Calls * N/A * N/A * N/A * N/A * N/A * N/A 3,951 3,993 4,063 4,118 Total Fire Calls * N/A * N/A * N/A * N/A * N/A * N/A 102 104 106 124 Motor Vehicle Accidents * N/A * N/A * N/A * N/A * N/A * N/A 278 232 252 271 False Alarms * N/A * N/A * N/A * N/A * N/A * N/A 77 144 73 78 Calls for Service * N/A * N/A * N/A * N/A * N/A * N/A 550 578 561 577 Other * N/A * N/A * N/A * N/A * N/A * N/A 559 580 610 644 Haz‐Mat Calls * N/A * N/A * N/A * N/A * N/A * N/A 17 10 14 18 LAST TEN FISCAL YEARS PICKENS COUNTY, GEORGIA OPERATING INDICATORS BY FUNCTION/PROGRAM Unaudited Function/Program Exhibit E-23, continued 123 ---PAGE BREAK--- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Emergency Management Agency EOC activations * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 1 Total hours EOC activated * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 12 Weather related damage (in millions) * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A Animal Control Received * N/A * N/A * N/A * N/A * N/A * N/A 137 497 401 636 Adopted * N/A * N/A * N/A * N/A * N/A * N/A 83 295 350 537 Returned to Owner * N/A * N/A * N/A * N/A * N/A * N/A 7 51 80 53 Euthanized * N/A * N/A * N/A * N/A * N/A * N/A 2 7 3 2 Owner intended Euthanasia * N/A * N/A * N/A * N/A * N/A * N/A ‐ ‐ 7 ‐ Complaints * N/A * N/A * N/A * N/A * N/A * N/A 79 88 80 172 Warnings * N/A * N/A * N/A * N/A * N/A * N/A 79 46 38 134 Citations * N/A * N/A * N/A * N/A * N/A * N/A 36 42 42 38 Animals Impounded * N/A * N/A * N/A * N/A * N/A * N/A 2 12 79 104 Public Works Roads and Bridges Road miles maintained 396 396 399 399 399 401 401 401 401 401 DOT LMIG resurfaced * N/A * N/A * N/A * N/A 7 6 7 5 6 6 Recycling Center Recycling revenue 295,138 293,681 301,995 356,193 387,653 419,291 396,049 694,082 583,066 556,992 Recycled materials in tons: Card Board * N/A * N/A * N/A * N/A * N/A * N/A * N/A 62 367 243 Mixed Paper * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 139 142 #1 Plastic * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 17 37 #2 Plastic * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 14 10 Aluminum Cans * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 18 1 Metal * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 151 146 Shredded Paper * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 20 20 Water Number of Gallons of water Purchased (in 1000s) * N/A * N/A * N/A * N/A 242,704 258,652 263,453 260,149 304,671 377,925 Number of Gallons of water Sold (in 1000s) * N/A * N/A * N/A * N/A 186,641 213,745 208,272 204,518 267,575 322,870 Culture and Recreation Parks Rental Income 30,186 56,019 38,907 33,575 34,497 41,137 46,358 25,054 39,145 37,898 Youth Sports Participants 709 694 736 780 887 885 911 **912 1,138 1,202 Housing and Development Planning and Development Building Inspections Requested 1270 1143 995 1534 1964 1913 2199 2110 2293 2493 Site Built Home Permits 79 50 62 111 127 122 145 184 231 235 Mobile Home Permits 24 33 26 32 31 48 33 53 48 64 Miscellaneous Permits 189 199 196 210 211 240 227 253 281 275 Commercial Permits 9 5 9 28 23 19 20 29 48 28 Renewal Permits 62 55 42 80 52 46 94 104 126 189 Commercial Plan Review * N/A * N/A * N/A * N/A 9 8 12 24 17 Certificate of Occupancy * N/A * N/A * N/A * N/A * N/A 251 234 258 308 334 Land Disturbance Permits * N/A * N/A * N/A * N/A * N/A 4 6 4 8 3 Access Encroachments * N/A * N/A * N/A * N/A * N/A 43 45 62 64 73 Business License ‐ New * N/A * N/A * N/A * N/A * N/A 123 141 100 146 155 Business License ‐ Renewal * N/A * N/A * N/A * N/A * N/A 605 612 546 647 647 Rezones & Conditional Use Permits * N/A * N/A * N/A * N/A * N/A 17 18 20 35 22 Variance Requests * N/A * N/A * N/A * N/A * N/A 0 0 0 0 2 Sign Permits * N/A * N/A * N/A * N/A * N/A 9 6 17 13 11 Code Enforcement Training Hours * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 71 Pubic Outreach * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 3 Miles Patrolled * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 5,896 Total Cases * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 267 Airport Number of Leased Hangers * N/A * N/A * N/A * N/A 32 32 55 55 87 88 Revenue from Hangers/Land Lease/Tie Downs * N/A * N/A * N/A * N/A 87,442 84,487 148,859 167,312 183,961 314,548 Gallons of JET‐A Bought to Resale * N/A * N/A * N/A * N/A 22,978 30,548 61,205 30,504 76,006 76,032 Gallons a AVGAS Bought to Resale * N/A * N/A * N/A * N/A 40,515 30,686 86,372 65,972 67,774 42,260 Notes: * = Information not available; = Covid; Baseball was cancelled and refunded ‐ 552 Baseball participants before Covid; = Computer system hacked, information not available = Covid; Baseball was cancelled and refunded ‐ 552 Baseball participants before Covid; = Computer system hacked, information not available = Computer system hacked, information not available Exhibit E-23, continued 124 ---PAGE BREAK--- Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental Buildings/Land 7 7 7 7 7 8 8 9 9 9 Acres of Greenspace [PHONE REDACTED] 1198 1200 1200 1,206 1,209 1,209 1,209 Vehicles 6 6 7 7 7 7 7 7 8 9 Judicial Buildings/Land 1 1 1 1 1 1 1 1 1 1 Vehicles 2 2 2 2 2 2 2 2 2 2 Sheriff/Law Inforcement Buildings/Land 2 2 2 2 2 2 2 2 2 2 Vehicles 85 87 88 90 91 93 94 94 95 97 Fire/EMS Fire Stations/Land 5 5 5 5 5 7 7 8 8 8 Vehicles 25 26 26 27 27 28 29 29 30 32 Pumpers 18 18 18 18 18 18 20 20 20 20 Emergency Sirens 16 16 16 16 16 16 16 16 16 16 Animal Rescue Building/Land 1 1 1 1 1 1 1 1 1 1 Vehicles Public Works Buildings/Land 3 3 3 3 3 3 3 4 4 4 Street Miles 396 396 399 399 399 401 401 401 401 401 Bridges/Culverts 31 31 31 31 31 31 31 31 31 31 Vehicles 26 27 27 27 28 28 29 29 30 32 Machinery & Equipment 51 52 52 52 53 53 54 55 55 56 Water Vehicles 4 5 5 5 5 6 6 6 7 8 Water Tanks 7 7 7 7 7 7 7 7 7 7 Pump Station 6 6 6 6 6 6 7 7 7 7 Recycling Buildings/Land 2 2 2 2 2 2 2 2 2 2 Health Welfare Vehicles Culture/Recreation Buildings/Land 3 3 3 3 3 5 5 5 5 5 Vehicles 3 3 3 3 3 3 3 3 3 3 Code Enforcement Vehicles 2 2 2 2 2 2 2 2 2 2 Environmental Health Vehicles 1 1 1 1 1 1 1 1 1 1 Airport Buildings/Land 2 2 2 2 2 2 4 4 4 9 Vehicles 2 2 2 2 2 2 2 2 2 3 Total Assets 1,612 1,622 1,909 1,915 1,920 1,931 1,944 1,951 1,956 1,965 Source: Pickens County Finance Department PICKENS COUNTY, GEORGIA CAPITAL ASSETS BY FUNCTION LAST TEN FISCAL YEARS Exhibit E-24 125 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- OTHER REPORTING SECTION ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- SINGLE AUDIT SECTION ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards Honorable Chairman and Members of the Board of Commissioners We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Pickens County, Georgia, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise Pickens County, Georgia’s basic financial statements and have issued our report thereon dated June 29, 2023. Our report includes a reference to other auditors who audited the financial statements of Pickens County Health Department, as described in our report on Pickens County, Georgia’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that were reported on separately by those auditors. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Pickens County, Georgia’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Pickens County, Georgia’s internal control. Accordingly, we do not express an opinion on the effectiveness of 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 course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2022-001 to be a material weakness. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022- 002 through 2022-006 that we consider to be significant deficiencies. 126 ---PAGE BREAK--- Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Pickens County, Georgia’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and is described in the accompanying schedule of findings and questioned costs as item 2022-007. Pickens County, Georgia’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on Pickens County, Georgia’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. Pickens County, Georgia’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Pickens County, Georgia’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Rushton, LLC Gainesville, Georgia June 29, 2023 127 ---PAGE BREAK--- Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance Honorable Chairman and Members of the Board of Commissioners Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Pickens County, Georgia’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of Pickens County, Georgia’s major federal programs for the year ended December 31, 2022. 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. In our opinion, Pickens County, Georgia complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2022. Basis for Opinion on Each Major Federal Program 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 audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Pickens County, Georgia and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Pickens County, Georgia’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Pickens County, Georgia’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Pickens County, Georgia’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. 128 ---PAGE BREAK--- The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Pickens County, Georgia’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Pickens County, Georgia’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of Pickens County, Georgia’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 Pickens County, Georgia’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement 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 requirement 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. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Rushton, LLC Gainesville, Georgia June 29, 2023 129 ---PAGE BREAK--- Federal Assistance Pass- Federal Grant/Pass-Through Listing Through Grantor/Program Title Number Number Expenditures U.S. Department of Housing and Urban Development Passed through Criminal Justice Coordinating Council: Covid-19 Emergency Solutions Grants Program 14.231 A50-8-005 $ 47,005 A51-8-003 57,594 A52-8-003 1,636 Total U.S. Department of Housing and Urban Development 106,235 U.S. Department of Justice Passed through Criminal Justice Coordinating Council: Crime Victim Assistance 16.575 C22-8-044 32,799 C22-8-076 79,443 C21-8-001 26,042 C20-8-078 76,898 215,182 Covid-19 Crime Victim Assistance 16.575 B50-8-208 19,926 Drug Court Discretionary Grant Program 16.585 Q19-8-001 182,000 Bulletproof Vest Partnership Program 16.607 N/A 6,178 Total Department U.S. Department of Justice 423,286 U.S. Department of Transportation Passed through the Georgia Department of Transportation: Covid-19 Airport Improvement Program 20.106 T007564 682,631 T007834 32,000 Total U.S. Department of Transportation 714,631 U.S. Department of Treasury Passed through the Georgia Governor's Office of Planning and Budget: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 14819 63,191 Passed through the Georgia Administrative Office of the Courts: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 2022_ARPA_01 930,677 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 2,756,565 Total U.S. Department of Treasury 3,750,433 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended December 31, 2022 Total Federal PICKENS COUNTY, GEORGIA Exhibit F-1, continued 130 ---PAGE BREAK--- Federal Assistance Pass- Federal Grant/Pass-Through Listing Through Grantor/Program Title Number Number Expenditures SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended December 31, 2022 Total Federal PICKENS COUNTY, GEORGIA Appalchian Regional Commission Applachian Regional Development Grant 23.001 N/A $ 125,000 U.S. Department of Health and Human Services Passed through Criminal Justice Coordinating Council: Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243 E21-8-001 27,608 Passed through the Georgia of Human Services: MaryLee Allen Promoting Safe and Stable Families Program 93.556 42700-040C-PSSF-22-124 16,874 42700-040C-PSSF-23-104 55,068 71,942 Total U.S. Department of Health and Human Services 99,550 U.S. Department of Homeland Security Passed through the Georgia Emergency Management and Homeland Security Agency: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 4600-DR-GA 142,717 Total Federal Awards $ 5,361,852 See accompanying notes to the schedule of expenditures of federal awards and the schedule of findings and questioned costs. Exhibit F-1, continued 131 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended December 31, 2022 Exhibit F-2 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Pickens County, Georgia, under programs for the federal government for the current fiscal year. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 3. De Minimis Indirect Cost Rate Pickens County, Georgia has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 4. Payments to Subrecipients For the current year, Pickens County, Georgia did not pass federal funds through to subrecipients. 132 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 1. Summary of the Auditor’s Results A. Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting: Material weaknesses identified? Yes Significant deficiencies identified not considered material weaknesses? Yes Noncompliance material to financial statements noted? Yes B. Federal Awards Internal control over major programs: Material weaknesses identified? None reported Significant deficiencies identified not considered material weaknesses? None reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance? None reported Identification of major programs: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish Between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No 133 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses A. Current Year Audit Findings 2022-001 Condition: The County lacks sufficient controls and procedures regarding year-end close to ensure timely and accurate financial reporting. This included material adjustments during the audit process. Criteria: Internal controls should be in place to ensure the County can perform timely and accurate year-end close procedures for the County to be able to produce its annual financial statements timely. Effect: Failure to properly design and implement internal controls over year-end close procedures may lead to financial statements that are materially misstated and lead to delays in financial reporting. Cause: Various posting and classification misstatements led to additional audit adjustments. Recommendation: We recommend that the County’s Finance Department continue to implement and/or strengthen internal controls over the year-end closeout procedures. We also recommend management reconcile account balances to the subsidiary ledgers to ensure proper and timely recording. Management Response: Management concurs with this finding. County management has hired finance personnel proficient in the application and implementation of proper internal controls over the year-end close procedures are designed and implemented. The Finance Department will implement policies and procedures that will ensure that account balances are reconciled to the subsidiary ledgers. This action was taken immediately upon receipt of the comment from our auditors. 2022-002 Condition: Appropriate segregation of duties does not exist among recording, distribution, and reconciliation of cash accounts and other operational functions in the various funds maintained by the County. This is especially prominent in the offices of the Tax Commissioner, Sheriff, Clerk of Courts, Probate Court, and Magistrate Court. Criteria: Segregation of employees’ duties is a common practice in an effective internal control structure. Segregation of duties is when specific employee functions related to important accounting areas (such as cash receipting and cash disbursements) are separated among different individuals to significantly reduce the risk that any one individual could intentionally or unintentionally misappropriate assets. Effect: Failure to maintain adequate segregation of duties exposes the assets of the County to greater risk of misappropriation. Cause: There are several departments and constitutional offices of the County in which the segregation of duties could be improved. Recommendation: We recommend that each County office review its policies and procedures to determine where it can adequately segregate duties to alleviate the segregation of duties issues. 134 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued A. Current Year Audit Findings (continued) 2022-002, continued Management Response: Management has provided a copy of this finding to the appropriate Elected Officials and Department Heads, and they concur with this finding. Action was taken immediately upon receipt of this comment from our auditors. 2022-003 Condition: During audit procedures on journal entries, we noted that Accountability Court personnel are posting journal entries to the general ledger without approval. All journal entries reviewed during audit procedures appeared appropriate. Criteria: Proper internal controls require that journal entries have supporting documentation with evidence of proper approval. Effect: Failure to approve journal entries increases the County’s risk of loss due to fraud. Cause: The Accountability Court personnel are posting entries to the general ledger without approval. Recommendation: We recommend the County implement a policy that requires approval of all journal entries and supporting documentation evidencing approval be retained. Management Response: Management concurs with this finding. County finance personnel has a plan to implement proper approval procedures over manual journal entries. Action was taken immediately upon receipt of the comment from our auditors. 2022-004 Condition: While performing audit procedures on building permits, we noted that building permits fees were not properly documented, and we were unable to recalculate the accuracy of the building permit fees charged to customers. Criteria: Proper internal controls require that licenses and permits such as building permits are accurately calculated and documented. Effect: Failure to properly design and implement internal controls over building permits increases the County exposure to asset misappropriation and fraud. Cause: County personnel are not adequately documenting permits fees charged to customers. Recommendation: The County should implement a policy that all licenses and permits are properly documented before they are charged to a customer. Management Response: Management concurs with this finding. Action was taken immediately upon receipt of the comment from our auditors. 135 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued A. Current Year Audit Findings (continued) 2022-005 Condition: While performing procedures at the Accountability Court, we noted that appropriate segregation of duties does not exist among recording, distribution, and reconciliation of cash accounts and other operational functions. Criteria: Segregation of employees’ duties is a common practice in an effective internal control structure. Segregation of duties is when specific employee functions related to important accounting areas (such as cash receipting and cash disbursements) are separated among different individuals to significantly reduce the risk that any one individual could intentionally or unintentionally misappropriate assets. Effect: Failure to maintain adequate segregation of duties exposes the assets of the County to greater risk of misappropriation. Cause: There is no segregation of financial duties at the Accountability Court. Recommendation: We recommend that the Accountability Court review its policies and procedures to determine where it can adequately segregate duties to alleviate the segregation of duties issues. Management Response: Management has provided a copy of this finding to the appropriate Department Head, and they concur with this finding. Action was taken immediately upon receipt of this comment from our auditors. 2022-006 Condition: While performing audit procedures at the Tax Commissioner’s office, we noted 5 of 25 (20%) voided transactions tested were recorded and approved by the same person. Criteria: Proper internal controls require that voided transactions are approved by someone other than the individual that records the void transaction. Effect: Failure to maintain proper supporting segregate approval and recording functions for voided transactions subjects the assets of the County to greater risk of misappropriation. Cause: Current policy does not segregate duties of approval and recording for voided transactions. Recommendation: We recommend separate employees record and approve voided transactions at the Tax Commissioner’s office. Management Response: Management has provided a copy of this finding to the appropriate Elected Official, and they concur with this finding. This action was taken immediately upon receipt of the comment from our auditors. 136 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued A. Current Year Audit Findings (continued) 2022-007 Condition: The County deposited grant proceeds used to finance portions of SPLOST projects in the General Fund in prior years. The balance of the excess funds is reported as an interfund receivable in the SPLOST fund. The County is making the necessary payments to pay this balance in full over the next few fiscal years. Criteria: OCGA Code Section 48-8-121 requires that SPLOST proceeds shall not be commingled with other funds of the County. Effect: Failure to comply with OCGA Code Section 48-8-121 places the County in violation of state law. Cause: County staff did not deposit grant proceeds used to finance portions of SPLOST projects into SPLOST Fund. The General Fund currently maintains a interfund payable to the SPLOST fund. Recommendation: All revenues and expenditures should be accounted for within the appropriate fund. The amounts due from the General Fund should be deposited into this account Management Response: Management concurs with this finding. The County recorded a due to the SPLOST Fund and will is currently making transfers to pay down the interfund balance. County management will also make sure that future amounts are correctly deposited and reported in the correct fund. B. Prior Year Audit Findings Follow-Ups 2021-001 Condition: The County lacks sufficient controls and procedures regarding year-end close to ensure timely and accurate financial reporting. This included material adjustments during the audit process. Not corrected 2021-002 Condition: The 2020 financial statements were restated for errors and incorrectly reported amounts in the Governmental Activities, General Fund, SPLOST Capital Projects Fund, Water and Sewer Enterprise Fund, and Tax Commissioner Custodial Fund. Corrected 137 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued B. Prior Year Audit Findings Follow-Ups (continued) 2021-003 Condition: County personnel may require additional training in the application of generally accepted accounting principles and the preparation of financial statements. Currently, the County relies on the external auditors for technical assistance in applying generally accepted accounting principles and the preparation of the financial statements. This is common for governments of similar size and structure to Pickens County. Under current auditing standards, providing technical assistance does not impair the independence of the external auditor. However, changes to auditing standards by standards setting boards could state that providing technical assistance would impair the independence of the external auditor. This does not indicate that the Finance Department is not trained to perform the daily accounting functions, but that the County has elected as a cost benefit to outsource this expertise to their auditors. Corrected 2021-004 Condition: Appropriate segregation of duties does not exist among recording, distribution, and reconciliation of cash accounts and other operational functions in the various funds maintained by the County. This is especially prominent in the offices of the Tax Commissioner, Sheriff, Clerk of Courts, Probate Court, and Magistrate Court. Not corrected 2021-005 Condition: During audit procedures on journal entries, we noted that journal entries did not have evidence of approval. All journal entries reviewed during audit procedures appeared appropriate. Not corrected. 2021-006 Condition: While performing audit procedures on building permits, we noted that building permits fees were not properly documented, and we were unable to recalculate the accuracy of the building permit fees charged to customers. Not corrected 2021-007 Condition: While performing audit procedures on deposits at the Accountability Court, we noted that deposits were not made timely. Further, we noted that deposits on hand were not adequately stored in a safe secure location such as a lock box or safe. Corrected 138 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued B. Prior Year Audit Findings Follow-Ups (continued) 2021-008 Condition: While performing procedures at the Accountability Court, we noted that appropriate segregation of duties does not exist among recording, distribution, and reconciliation of cash accounts and other operational functions. Not corrected 2021-009 Condition: While performing audit procedures at the Clerk of Courts, we were unable to sight approval for 8 of 15 (40%) voided transactions selected for testing. Corrected 2021-010 Condition: While performing audit procedures at the Clerk of Courts, we noted instances where deposits were not made timely. Receipts were held for more than seven days before depositing in 3 of 15 of receipts tested. Corrected 2021-011 Condition: While performing audit procedures at the Magistrate Court, we were unable to sight approval for any voided transactions selected for testing. Corrected 2021-012 Condition: While performing audit procedures at the Probate Court, we were unable to sight approval for any voided transactions selected for testing. Corrected 2021-013 Condition: The County experienced a material excess of expenditures over appropriations in the General Fund. Also, an annual budget was not adopted for the Law Library Special Revenue Fund, Sheriff Law Enforcement Special Revenue Fund, E-911 Special Revenue Fund, Drug Task Force Special Revenue Fund, Hotel/Motel Tax Special Revenue Fund, and American Rescue Plan Act Grant Special Revenue Fund, as required by state law. Corrected 139 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2022 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued B. Prior Year Audit Findings Follow-Ups (continued) 2021-014 Condition: The County deposited grant proceeds used to finance portions of SPLOST projects in the General Fund in prior years. Not corrected 3. Federal Award Findings and Questioned Costs The audit of our basic financial statements and schedule of expenditures of federal awards disclosed no audit findings or questioned costs which are required to be reported under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 140 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- STATE REPORTING SECTION ---PAGE BREAK--- Expenditures Estimated Cost * Prior Project Years** Year Total SPLOST 2020 Road Improvements $ 16,039,500 $ 16,039,500 $ 1,619,652 $ 4,722,468 $ 6,342,120 Water and Sewer Facilities 1,110,000 1,110,000 168,161 83,838 251,999 Airport Debt Service 3,496,500 3,496,500 133,787 936,370 1,070,157 Capital Improvements Public Safety 2,960,000 2,960,000 170,849 333,140 503,989 Sheriff 2,960,000 2,960,000 678,920 633,285 1,312,205 Parks and Recreations 3,700,000 3,700,000 38,014 899,711 937,725 City of Jasper 5,002,400 5,002,400 1,448,429 1,143,552 2,591,981 City of Nelson 1,650,200 1,650,200 477,811 377,237 855,048 City of Talking Rock 81,400 81,400 23,569 18,608 42,177 $ 37,000,000 $ 37,000,000 $ 4,759,192 $ 9,148,209 $ 13,907,401 Roads Expenditures Financed by Intergovernmental Revenues 135,409 Total Expenditures and Transfers out SPLOST Capital Projects Fund $ 9,283,618 * Estimated cost represents the portion of these projects to be financed with Special Purpose Purpose Local Option Sales Tax. Actual costs that are in excess of these amounts have been financed through alternative funds. The prior years column has been restated in the amount of $112,180 to correct the beginning balance of intergovernmental payments and Water and Sewer Facilities. PICKENS COUNTY, GEORGIA SCHEDULE OF PROJECTS FINANCED WITH SPECIAL PURPOSE LOCAL OPTION SALES TAX For the year ended December 31, 2022 Original Current Current Exhibit G-1 141 ---PAGE BREAK--- Grant Name Grant Period Contract Number DHS Operating Grant - Family Connection 07/01/21 to 06/30/22 42700-93-202100133 $ 48,000 $ 24,287 $ 24,287 $ 0 DHS Operating Grant - Family Connection 07/01/22 to 06/30/23 42700-93-202200081 52,500 25,897 25,897 12,809 Total $ 100,500 $ 50,184 $ 50,184 $ 12,809 PICKENS COUNTY, GEORGIA SCHEDULE OF COMPLETED STATE AWARDS EXPENDED GEORGIA DEPARTMENT OF HUMAN SERVICES For the year ended December 31, 2022 Amount Awarded State Revenues State Expenditures Amount Due from State Exhibit G-2 142

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