Pickenscountyga_doc_d690d706a7 - Public Records Archive

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b1h;mvomIķ;ou]b- o;uml;mI ou bv1-Ѵ+;-u m7;7 ;1;l0;uƒƐķƑƏƑƒ ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- PICKENS COUNTY, GEORGIA GOVERNMENT Annual Comprehensive Financial Report Fiscal Year Ended December 31, 2023 PREPARED BY: THE FINANCIAL SERVICES DEPARTMENT ---PAGE BREAK--- EXHIBIT PAGE INTRODUCTORY SECTION Table of Contents i-iii Certificate of Achievement for Excellence in Financial Reporting iv Principal Officials v Pickens County Organizational Chart vi Letter of Transmittal vii-xix FINANCIAL SECTION Independent Auditor's 1-3 Management's Discussion and 4-12 Basic Financial Statements: Government-wide Financial Statements: A-1 Statement of Net 13-14 A-2 Statement of 15 Fund Financial Statements: Governmental Funds: A-3 Balance 16-17 A-4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 18 A-5 Statement of Revenues, Expenditures and Changes in Fund Balances………………………… 19-20 A-6 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of 21 A-7 General Fund - Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and 22-23 A-8 American Rescue Plan Act Grant - Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and 24 Proprietary Funds: A-9 Statement of Net 25 A-10 Statement of Revenues, Expenses, and Changes in Net 26 A-11 Statement of Cash 27-28 Fiduciary Funds: A-12 Statement of Fiduciary Net 29 A-13 Statement of Changes in Fiduciary Net 30 Component Units: A-14 Combining Statement of Net 31 A-15 Combining Statement of Changes in Net 32 A-16 Notes to the Financial 33-85 PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2023 TABLE OF CONTENTS i ---PAGE BREAK--- EXHIBIT PAGE PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2023 TABLE OF CONTENTS FINANCIAL SECTION (continued) Required Supplementary Information: B-1 Schedule of Changes in the Net Pension Liability and Related 86-87 B-2 Schedule of Pension 88-89 B-3 Schedule of Changes in the Net OPEB Liability and Related 90-91 B-4 Notes to the Required Supplementary 92-94 Combining and Individual Fund Statements and Schedules: C-1 Combining Balance Sheet - Nonmajor Governmental 95 C-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental 96 C-3 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Law Library Special Revenue 97 C-4 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Sheriff Law Enforcement Special Revenue 98 C-5 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - E-911 Special Revenue 99 C-6 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Drug Task Force Special Revenue 100 C-7 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Restricted Programs Special Revenue 101 C-8 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Hotel Motel Special Revenue 102 C-9 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Sheriff Speed Enforcement Special Revenue 103 D-1 Statement of Fiduciary Net Position - Custodial 104 D-2 Statement of Changes in Fiduciary Net Position - Custodial 105 STATISTICAL SECTION Financial Trends E-1 Net Position by Component – Last Ten Fiscal 106 E-2 Changes in Net Position – Last Ten Fiscal 107-108 E-3 Fund Balances, Governmental Funds – Last Ten Fiscal 109 E-4 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal 110 E-5 Program Revenues by Function/Program – Last Ten Fiscal 111 E-6 Tax Revenues by Source, Governmental Funds – Last Ten Fiscal 112 Revenue Capacity E-7 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal 113 E-8 Property Tax Rates - Direct and Overlapping – Last Ten Fiscal 114 E-9 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal 115 E-10 Principal Property Taxpayers -Current Year and Nine Years 116 E-11 Property Tax Levies and Collections – Last Ten Fiscal 117 E-12 Property Tax Liens (FiFas) – Last Eight Fiscal 118 Debt Capacity E-13 Ratios of Outstanding Debt by Type – Last Ten Fiscal 119 E-14 Direct and Overlapping Governmental Activities 120 E-15 Legal Debt Margin Information – Last Ten Fiscal 121 E-16 Pledged-Revenue Coverage – Last Ten Fiscal 122 E-17 Water Department Operating Revenues/Expenses– Last Ten Fiscal 123 E-18 Water Department Gallons Bought and Sold - Last Six Fiscal 124 ii ---PAGE BREAK--- EXHIBIT PAGE PICKENS COUNTY, GEORGIA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the year ended December 31, 2023 TABLE OF CONTENTS STATISTICAL SECTION (continued) Demographic and Economic Information E-19 Water Department Principal Customers - Current Year and Five Years 125 E-20 Demographic and Economic Statistics – Last Six Fiscal 126 E-21 Principal Employers - Current Year and Two Years 127 Operating Information E-22 Full-Time Equivalent Employees by Function – Last Ten Fiscal 128 E-23 Operating Indicators by Function/Program – Last Ten Fiscal 129-130 E-24 Capital Asset Statistics by Function – Last Ten Fiscal 131 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 132-133 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform 134-135 F-1 Schedule of Expenditures of Federal 136-137 F-2 Notes to the Schedule of Expenditures of Federal 138 F-3 Schedule of Findings and Questioned 139-144 State Reporting Section G-1 Schedule of Projects Financed with Special Purpose Local Option Sales 145 G-2 Schedule of Completed State Awards Expended - Georgia Department of Human 146 iii ---PAGE BREAK--- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Pickens County Georgia For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Executive Director/CEO iv ---PAGE BREAK--- 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 Miranda McDowell 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, 2023 Commission Chairman and District Commissioners Kris Stancil v ---PAGE BREAK--- vi ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 June 14, 2024 Pickens County Board of Commissioners 1266 West Church Street Pickens County, Georgia 30143 Honorable Commissioners and CiƟzens of Pickens County, Georgia: We are pleased to present the Annual Comprehensive Annual Report (ACFR) of Pickens County, Georgia (“the County”) for the ﬁscal year ended December 31, 2023. 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 2023 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. vii ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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. viii ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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 35,969 ciƟzens and 974 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 ix ---PAGE BREAK--- x PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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. There have been no large changes in the total mix, but there were some changes in the individual areas. Pickens County 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. The largest Service-Providing area of the County is Retail Trade. This area has grown over the last year from 9.5% to 15.7%, and from 788 to 1280 employees. Health Care and Social Assistance (13.3%) and AccommodaƟon and Food Service (13.1%) are now nearly Ɵed for second place. RespecƟvely, these two areas represent 1090 and 1068, people employed. Local government employees account for 13.2% of the employment opportuniƟes, or 1,082 people. In the Goods-Producing area, the largest porƟon of the employment opportuniƟes are in ConstrucƟon, at 6.4% 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 2023 Pickens County Industry Mix Goods Services Government Not Assigned ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 The unemployment rate in the County steadily decreased 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 unƟl 2023. At the end of 2023 the unemployment rate was 2.5%. This may be due in part to several small businesses closing during the year. 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. 5.5% 4.9% 4.6% 3.7% 3.3% 2.5% 3.8% 2.3% 2.2% 2.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Unemployment Rate 0 50 100 150 200 250 [PHONE REDACTED] 2015 2016 2017 2018 2019 2020 2021 2022 2023 83 88 143 158 170 178 237 279 299 292 5 9 28 23 19 20 29 48 28 29 New Construction Residential Commercial Permits xi ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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 2014-2023 with an average annual growth rate of 1.28%. 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 of 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 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 2023 123 141 100 146 155 231 605 612 546 647 647 743 Businesss License Business License ‐ New Business License ‐ Renewal xii ---PAGE BREAK--- xiii PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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 fourth lowest of these counƟes in millage rates. Each of the CounƟes shown in the comparison below have the LOST (Local OpƟon Sales Tax). 7.220 7.222 7.950 7.883 7.846 7.779 7.613 7.489 7.438 7.390 6.80 7.00 7.20 7.40 7.60 7.80 8.00 8.20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Pickens County Millage Rate 0.000 5.000 10.000 DAWSON GILMER BARTOW PICKENS MURRAY LUMPKIN GORDON WHITE 5.634 6.250 6.970 7.390 8.017 8.235 9.042 9.505 Millage Rate/County Comparison 2023 ---PAGE BREAK--- xiv PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 Below is the Current 2023 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 2023 PROPERTY TAX DIGEST AND 5 YEAR HISTORY OF LEVY 2018 2019 2020 2021 2022 2023 Real & Personal $1,484,170,786 $1,529,066,056 $1,602,638,589 $1,683,845,069 $1,903,435,802 $2,152,913,812 Motor Vehicles 28,440,130 24,371,490 22,632,950 19,966,600 18,049,830 19,026,510 Mobile Homes 10,481,846 10,699,059 10,860,424 11,433,396 11,992,348 16,065,867 Timber - 100% 0 3,870 1,134,367 100,730 466,479 70,974 Heavy Duty Equipment 1,874 3,095 105,014 377,237 269,915 538,362 Gross Digest 1,523,094,636 1,564,143,570 1,637,371,344 1,715,723,032 1,934,214,374 2,188,615,525 Less Exemptions 112,211,082 112,997,671 110,959,786 110,161,530 113,115,609 121,744,564 NET DIGEST VALUE 1,410,883,554 1,451,145,899 1,526,411,558 1,605,561,502 1,821,098,765 2,066,870,961 Gross Maintenance & Operation Millage 10.0630 10.1450 10.0660 10.1898 10.1900 10.2310 Less Rollback Local Option Sales Tax) 2.2170 2.3660 2.4530 2.7008 2.7520 2.8410 NET M&O MILLAGE RATE 7.8460 7.7790 7.6130 7.4890 7.4380 7.3900 TOTAL M&O TAXES LEVIED $11,069,792 $11,288,464 $11,620,571 $12,024,050 $13,545,333 $15,274,176 Net Tax $ Increase $152,984 $218,672 $332,107 $403,479 $1,521,283 $1,728,844 Net Tax % Increase 1.40% 1.98% 2.94% 3.47% 12.65% 12.76% The LOST collecƟons conƟnue to increase every year, thus giving more property tax relief to the ciƟzens. $2,838 $2,852 $2,910 $3,471 $3,782 $4,384 $5,082 $5,917 $6,066 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LOST COLLECTIONS IN THOUSANDS ---PAGE BREAK--- xv PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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 2023, the Pickens County Board of Commissioners have worked on a variety of ways to improve employee retenƟon, especially within the Public Works departments. The Board of Commissioners worked diligently to increase the pay for many Public Works employees. This being a conƟnuaƟon of the iniƟaƟve which began in 2022 with public safety adjustments. 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 2024. The Board of Commissioners has also worked to improve the quality of services provided through Parks and RecreaƟon by paving a walking path to provide a safe place for ciƟzens to parƟcipate in an acƟve lifestyle. In addiƟon, Pickens County has partnered with mulƟple local organizaƟons, to include the Rotary Club to construct a new playground adjacent to the Rotary Music Park in 2024. Also, in 2023 Pickens County Board of Commissioners, began the planning and design stages of construcƟng and renovaƟng the county pool, restrooms, and ﬁelds at Roper Park to include the addiƟon of pickleball courts and enhanced parking. This area, being the main focal point of Parks and RecreaƟon of Pickens, will provide a higher-level quality of life for the ciƟzens and visitors of the county. 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 1,060,000 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 miles $4,055 $4,073 $4,156 $4,526 $4,959 $5,394 $6,270 $7,257 $8,458 $8,676 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 SPLOST COLLECTIONS IN THOUSANDS ---PAGE BREAK--- xvi PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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. During 2023, the county completed the waterline loop at Mullinax Road. With over 400 miles of roads under its responsibility, Pickens County worked to pave over 21 miles of road in 2023 and is commiƩed to resurfacing the same in 2024. With a strong commitment to beƩer protecƟng the environment, Pickens County has conƟnually invested in recycling through our Recycling Center. In 2023, 1,832,000 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 to include enhancements to the airﬁeld lighƟng. In 2021 and 2022, an addiƟon of 4 new hangars was completed. In 2023, construcƟon began on 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--- xvii PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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. 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 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. xviii ---PAGE BREAK--- PICKENS COUNTY BOARD OF COMMISSIONERS 1266 EAST CHURCH STREET JASPER, GA 30143 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, Miranda McDowell Chief Financial Oﬃcer xix ---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, 2023, 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, 2023, 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 36.8% of the assets, 62.3% of the net position, and 88.8% of the revenues of the discretely presented component units for the year ended December 31, 2023. 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 12 and 86 through 94, 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 14, 2024, 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 14, 2024 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, 2023. 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 $66,216,778 (net position) for the year reported. This represents an increase of $3,372,522 or 5% from the previous year. Total net position is comprised of the following: 1. Net investment in capital assets equaled $51,708,648. 2. Net position of $10,729,410 is restricted for debt service, capital outlay, or by other constraints imposed by law or regulations. 3. At the end of 2023, unrestricted net position balance increased by $879,959 from $2,898,761 to $3,778,720. The County's governmental funds reported total ending fund balance of $25,026,007. This compares to the prior year ending fund balance of $22,694,246 showing an increase of $2,331,761, or 10% during the current year. At the end of 2023, unassigned fund balance for the County's governmental funds was $13,148,785. 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 assets plus deferred outflows of resources and liabilities and deferred inflows of resources. 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 31-32 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 custodial 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 33 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, 2023, to the year ended December 31, 2022, as required by GASB Statement No. 34. Comparative Schedule of Net Position December 31 2023 2022 2023 2022 2023 2022 Assets: Current 28,691,446 $ 29,937,206 $ (1,456,584) $ (1,835,096) $ 27,234,862 $ 28,102,110 $ Capital assets 45,342,607 45,087,513 21,211,799 21,615,219 66,554,406 66,702,732 Other noncurrent assets 0 0 288,179 0 288,179 0 Total assets 74,034,053 75,024,719 20,043,394 19,780,123 94,077,447 94,804,842 Deferred outflows of resources 3,730,565 2,589,957 436,514 430,385 4,167,079 3,020,342 Liabilities: Current 3,877,555 6,582,641 1,439,053 1,987,836 5,316,608 8,570,477 Noncurrent 15,393,731 11,919,115 10,673,627 12,511,991 26,067,358 24,431,106 Total liabilities 19,271,286 18,501,756 12,112,680 14,499,827 31,383,966 33,001,583 Deferred inflows of resources 327,393 1,876,353 316,389 102,292 643,782 1,978,645 Net position: Net investment in capital assets 41,422,058 42,361,620 10,286,590 7,976,420 51,708,648 50,338,040 Restricted 10,729,410 9,607,455 0 0 10,729,410 9,607,455 Unrestricted 6,014,471 5,267,492 (2,235,751) (2,368,731) 3,778,720 2,898,761 Total net position 58,165,939 $ 57,236,567 $ 8,050,839 $ 5,607,689 $ 66,216,778 $ 62,844,256 $ Governmental Activities Business-Type Activities Total *Detailed information on the County's statement of net position can be found on pages 13-14. 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 $66,216,778 on December 31, 2023, compared to $62,844,256 on December 31, 2022. The total increase was $3,372,522. The largest portion of net position, $51,708,648 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 $10,729,410 (16%) 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 $3,778,720 of unrestricted net position. 6 ---PAGE BREAK--- The table below presents the County's condensed Statement of Activities for the year ended December 31, 2023, with comparative amounts for the year ended December 31, 2022. Comparative Schedule of Changes in Net Position 2023 2022 2023 2022 2023 2022 Revenues Program revenues: Charges for services 5,592,706 $ 5,126,952 $ 4,306,601 $ 4,421,778 $ 9,899,307 $ 9,548,730 $ Operating grants and contributions 8,479,187 5,729,922 0 0 8,479,187 5,729,922 Capital grants and contributions 988,478 31,019 159,861 970,459 1,148,339 1,001,478 General revenues: Property tax 17,513,901 17,412,502 0 0 17,513,901 17,412,502 Sales tax 14,741,787 14,375,222 0 0 14,741,787 14,375,222 Intangible tax 312,104 444,828 0 0 312,104 444,828 Insurance premium tax 2,345,976 2,210,705 0 0 2,345,976 2,210,705 Other taxes 1,036,101 1,105,540 0 0 1,036,101 1,105,540 Interest & investment earnings 84,695 22,002 1,509 10 86,204 22,012 Other revenue 312,120 277,708 19,318 1,072 331,438 278,780 Gain on sale of capital assets 0 4,500 0 4,900 0 9,400 Total revenues 51,407,055 46,740,900 4,487,289 5,398,219 55,894,344 52,139,119 Expenses General Government 5,777,326 4,913,551 0 0 5,777,326 4,913,551 Judicial 7,120,778 7,034,639 0 0 7,120,778 7,034,639 Public Safety 19,955,488 16,839,952 0 0 19,955,488 16,839,952 Public Works 10,896,739 10,929,737 0 0 10,896,739 10,929,737 Health and Welfare 307,767 295,209 0 0 307,767 295,209 Culture and Recreation 1,506,541 1,274,562 0 0 1,506,541 1,274,562 Housing and Development 1,117,737 1,204,813 0 0 1,117,737 1,204,813 Interest on long-term debt 265,913 23,105 0 0 265,913 23,105 Water and Sewer 0 0 3,624,673 3,825,534 3,624,673 3,825,534 Airport 0 0 1,948,860 2,205,744 1,948,860 2,205,744 Total expenses 46,948,289 42,515,568 5,573,533 6,031,278 52,521,822 48,546,846 Increase (decrease) in net position before transfers 4,458,766 4,225,332 (1,086,244) (633,059) 3,372,522 3,592,273 Transfers (3,529,394) (1,141,408) 3,529,394 1,141,408 0 0 Increase (decrease) in net position 929,372 3,083,924 2,443,150 508,349 3,372,522 3,592,273 Net position - beginning 57,236,567 54,152,643 5,607,689 5,099,340 62,844,256 59,251,983 Net position - ending 58,165,939 $ 57,236,567 $ 8,050,839 $ 5,607,689 $ 66,216,778 $ 62,844,256 $ Governmental Activities Business-Type Activities Totals *Detailed information on the County's statement of activities can be found on page 15. 7 ---PAGE BREAK--- 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 $35,949,869 in 2023 compared to $35,548,797 in 2022. This change is an increase of Most of this increase was related to inflationary impacts on the cost of goods, increasing the tax collections associated with those sales in the current year. Governmental Activities Expenses by function as reflected in the table above show that during 2023, the County expended 43% for Public Safety, 15% for Judicial, 23% for Public Works, 12% for General Government, 3% for Culture and Recreation, 2% 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 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. The following chart illustrates revenues of the governmental activities for the year: 34% 29% 1% 5% 2% 11% 18% 0% 1% Revenues by Source - Governmental Activities Year Ending December 31, 2023 Property Tax Sales Tax Intangible Tax Insurance Premium Tax Other Tax Charges for Services Grants and Contributions Investment Income Other Revenue *Due to rounding, charts may not always equal 100% 8 ---PAGE BREAK--- The following chart illustrates expenses of the governmental activities for the year: 12% 15% 43% 23% 1% 3% 2% 1% Expenses - Governmental Activities Year Ending December 31, 2023 General Government Judicial Public Safety Public Works Health and Welfare Culture and Recreation Housing and Development Interest on Long-Term Debt *Due to rounding, charts may not always equal 100% 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 $25,026,007. This compares to the prior year ending fund balance of $22,694,246, an increase of $2,331,761 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 $14,779,661. This compares to the prior year ending fund balance of $12,983,852, an increase of $1,795,809 during the current year. Most of this increase was caused by a transfer from the ARPA Fund under the lost revenue claim in the current year. At the end of the fiscal year, unassigned fund balance for the County's governmental funds was $13,148,785. 9 ---PAGE BREAK--- The County's SPLOST Fund is reported as a major fund. The fund balance of the SPLOST fund increased by $229,878 during the current 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 $8,807,117, a $229,878 increase over the previous year, which is restricted for capital projects outlined in the 2020 SPLOST referendum. Most of this increase was related to inflationary impacts on the cost of goods, increasing the SPLOST collections in the current year. The County's American Rescue Plan Act Grant Fund is reported as a major fund. The fund has no fund balance as all expenditures and other financing uses have been offset against revenue on the statement of changes in fund balances. In 2023, governmental revenues increased $6,153,996 from 2022. 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 729% increase in revenues in the American Rescue Plan Act Fund. There was an 11% increase in revenues in the SPLOST Fund. The County’s basic governmental fund financial statements are presented on pages 16-24 of this report. 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. Business-type activities increased the County's net position by $2,443,150. GENERAL FUND BUDGET HIGHLIGHTS The original budget for the General Fund was amended by various appropriations approved after the beginning of the year. In addition, the Board of Commissioners approved several adjustments to prevent budget overages. The following highlights the differences between the original and the final budget:  In the General Government Administration Department, salaries, technical services, and other expenses were less than budgeted; therefore, the budget was decreased by $486,201.  In the Jail Operations Department, insurance, supplies, utilities, and capital outlay expense was more than budgeted; therefore, the budget was increased by $1,288,000.  Increased budgeted fund balance to cover 2023 reappropriations.  Increased/decreased various expenditure budgets for adjustments as needed. General Fund expenditures for 2023 were $33,619,413, 95.6% of the final amended budget. There were no net over expenditures by General Fund departments. Total actual expenditures in the General Fund were lower than the final amended budget total by $1,556,988. 10 ---PAGE BREAK--- CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The County's capital assets for governmental and business-type activities as of December 31, 2023, total $66,554,406 (net of accumulated depreciation/amortization). These assets include land, land improvements, infrastructure, buildings, machinery and equipment, furniture and fixtures, vehicles, intangible right-to-use assets, and construction in progress. Pickens County Capital Assets (net of accumulated depreciation/amortization) 2023 2022 2023 2022 2023 2022 Land and improvements 7,625,535 $ 6,508,793 $ 1,885,864 $ 1,914,092 $ 9,511,399 $ 8,422,885 $ Construction in progress 212,191 913,772 2,069,415 2,293,804 2,281,606 3,207,576 Buildings 27,480,255 28,428,834 3,069,080 3,289,519 30,549,335 31,718,353 Machinery and equipment 2,153,765 1,999,533 448,061 515,093 2,601,826 2,514,626 Vehicles 2,871,577 3,002,396 144,841 143,732 3,016,418 3,146,128 Infrastructure 3,752,446 4,234,185 13,594,538 13,458,979 17,346,984 17,693,164 Intangible right-to-use assets Machinery and equipment 185,373 0 0 0 185,373 0 Software 1,061,465 0 0 0 1,061,465 0 Total Capital Assets 45,342,607 $ 45,087,513 $ 21,211,799 $ 21,615,219 $ 66,554,406 $ 66,702,732 $ Totals Business-Type Activities Governmental Activities *Detailed information on the County's capital assets can be found in Note 9 of the basic financial statements. Long-term Debt. During 2023, the long-term debt of Pickens County's governmental activities increased $695,948. This increase was due to recording a lease under GASB Statement No. 87, Leases, and implementing GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The net pension liability increased $3,314,401, and the Total OPEB obligation decreased by $188,977. Long-term debt decreased in business-type activities in the amount of $1,818,775, this was due to the decrease in bonds payable and notes payable. Pickens County Bonds Payable, Notes from Direct Borrowings, Claims, and Other Debts 2023 2022 2023 2022 2023 2022 Lease liabilities $ 172,536 $ 0 $ 0 $ 0 $ 172,536 $ 0 Subscription liabilities 921,104 0 0 0 921,104 0 Bonds payable 0 0 8,854,582 10,594,729 8,854,582 10,594,729 Notes from direct borrowings 2,135,521 2,533,213 2,070,627 2,149,255 4,206,148 4,682,468 Claims 364,753 243,658 0 0 364,753 243,658 Landfill closure/postclosure 450,000 450,000 0 0 450,000 450,000 Compensated absences 614,925 433,647 34,708 17,768 649,633 451,415 Net pension liability 10,789,424 7,669,172 671,342 477,193 11,460,766 8,146,365 Total OPEB liability 1,123,812 1,290,112 153,247 175,924 1,277,059 1,466,036 Total Long-Term Debt $ 16,572,075 $ 12,619,802 $ 11,784,506 $ 13,414,869 $ 28,356,581 $ 26,034,671 Totals Business-Type Activities Governmental Activities *Additional information regarding Pickens County’s long-term debt and benefit plans can be found in Note 10 on pages 56 through 64 and Note 11 on pages 65 through 66 of this report. 11 ---PAGE BREAK--- ECONOMIC FACTORS AND THE 2024 BUDGET  The 2023 millage rate decreased from 7.4380 to 7.390 per $1,000 of valuation. The 2023 millage rate was a decrease of 0.048%, however the 2023 tax digest reflected an increase of $245,772,096 in overall valuation. The 2023 total County taxes levied increased $1,728,843 as compared to 2022.  The 2024 budget was approved and adopted by the Board of Commissioners on December 7, 2023. The 2024 operating budget increased from $33,251,807 to $35,394,513, a increase of $2,712,706. Much of the revenue increase is in property and sales tax revenues, title ad valorem tax, license, and charges for services. Most of the expenditure increase is in purchased services, salaries, and benefits.  Weekly 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 Miranda McDowell, Finance Director for Pickens County Board of Commissioners, 1266 East Church Street, Suite 175, Jasper, Georgia 30143. 12 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- ASSETS Current assets Cash and cash equivalents $ 20,118,605 $ 8,798 $ 20,127,403 $ 1,498,871 Receivables (net) Accounts 585,543 343,455 928,998 0 Intergovernmental 1,291,438 0 1,291,438 0 Taxes 3,159,395 0 3,159,395 0 Inventories 27,688 111,804 139,492 470 Leases receivable 0 6,872 6,872 0 Notes receivable 0 0 0 392,000 Prepaid items 174,336 1,257,269 1,431,605 0 Restricted assets Cash and cash equivalents 149,659 0 149,659 0 Internal balances 3,184,782 (3,184,782) 0 0 Total current assets 28,691,446 (1,456,584) 27,234,862 1,891,341 Noncurrent assets Leases receivable 0 288,179 288,179 0 Notes receivable 0 0 0 1,680,000 Net OPEB asset 0 0 0 7,418 Capital assets Non-depreciable 5,939,586 3,786,280 9,725,866 0 Depreciable/amortizable (net) 39,403,021 17,425,519 56,828,540 34,979 Total noncurrent assets 45,342,607 21,499,978 66,842,585 1,722,397 Total assets 74,034,053 20,043,394 94,077,447 3,613,738 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 3,385,400 341,919 3,727,319 266,084 Deferred outflows of resources - OPEB 345,165 94,595 439,760 41,450 Total deferred outflows of resources 3,730,565 436,514 4,167,079 307,534 LIABILITIES Current liabilities Payables Accounts 1,658,810 280,465 1,939,275 5,742 Retainages 336,793 0 336,793 0 Interest 0 11,751 11,751 0 Accrued salaries and expenses 598,369 20,728 619,097 0 Compensated absences 430,447 24,296 454,743 10,384 Due to others 43,486 0 43,486 50,914 Unearned revenue 61,753 15,230 76,983 0 Total OPEB liability 96,096 13,104 109,200 0 Leases payable 41,726 0 41,726 0 Subscriptions payable 272,999 0 272,999 0 Notes payable 337,076 91,710 428,786 0 Bonds payable 0 981,769 981,769 90,601 Total current liabilities 3,877,555 1,439,053 5,316,608 157,641 PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION December 31, 2023 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 13 ---PAGE BREAK--- Noncurrent liabilities Compensated absences $ 184,478 $ 10,412 $ 194,890 $ 6,923 Net pension liability 10,789,424 671,342 11,460,766 624,169 Total OPEB liability 1,027,716 140,143 1,167,859 40,978 Claims and judgements payable 364,753 0 364,753 0 Leases payable 130,810 0 130,810 0 Subscriptions payable 648,105 0 648,105 0 Notes payable 1,798,445 1,978,917 3,777,362 0 Bonds payable 0 7,872,813 7,872,813 1,239,702 Post-closure care costs 450,000 0 450,000 0 Total noncurrent liabilities 15,393,731 10,673,627 26,067,358 1,911,772 Total liabilities 19,271,286 12,112,680 31,383,966 2,069,413 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - leases 0 298,838 298,838 0 Deferred inflows of resources - pension 167,852 2,276 170,128 466,477 Deferred inflows of resources - OPEB 159,541 15,275 174,816 54,914 Total deferred inflows of resources 327,393 316,389 643,782 521,391 NET POSITION Net investment in capital assets 41,422,058 10,286,590 51,708,648 34,979 Restricted for: Judicial 991,800 0 991,800 0 Public safety 239,105 0 239,105 0 Health and welfare 0 0 0 380,534 Capital outlay 9,498,505 0 9,498,505 0 Unrestricted 6,014,471 (2,235,751) 3,778,720 914,955 Total net position $ 58,165,939 $ 8,050,839 $ 66,216,778 $ 1,330,468 Activities Activities Total Units December 31, 2023 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 14 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- Operating Charges for Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Primary government Governmental activities General Government $ 5,777,326 $ 1,041,257 $ 3,573,860 $ 0 $ (1,162,209) Judicial 7,120,778 566,744 3,824,105 0 (2,729,929) Public Safety 19,955,488 2,962,100 926,688 12,000 (16,054,700) Public Works 10,896,739 832,563 0 976,478 (9,087,698) Health and Welfare 307,767 0 63,101 0 (244,666) Culture and Recreation 1,506,541 162,790 11,219 0 (1,332,532) Housing and Development 1,117,737 27,252 80,214 0 (1,010,271) Interest on long-term debt 265,913 0 0 0 (265,913) Total governmental activities 46,948,289 5,592,706 8,479,187 988,478 (31,887,918) Business-type activities Water and Sewer 3,624,673 3,433,385 0 0 (191,288) Airport 1,948,860 873,216 0 159,861 (915,783) Total business-type activities 5,573,533 4,306,601 0 159,861 (1,107,071) Total primary government 52,521,822 9,899,307 8,479,187 1,148,339 (32,994,989) Component Units Pickens County Development Authority Housing and Development 109,146 98,000 0 0 (11,146) Pickens County Health Department Health and Welfare 752,077 530,447 369,818 0 148,188 Total component units 861,223 628,447 369,818 0 137,042 Change in net position Net (expense) revenue $ (31,887,918) $ (1,107,071) $ (32,994,989) $ 137,042 General revenues Taxes Property 17,513,901 0 17,513,901 0 Sales 14,741,787 0 14,741,787 0 Intangible 312,104 0 312,104 0 Insurance premium 2,345,976 0 2,345,976 0 Other 1,036,101 0 1,036,101 427 Interest and investment revenue 84,695 1,509 86,204 0 Payments from Pickens County 0 0 0 15,051 Other 312,120 19,318 331,438 0 Transfers (3,529,394) 3,529,394 0 0 Total general revenues and transfers 32,817,290 3,550,221 36,367,511 15,478 Change in net position 929,372 2,443,150 3,372,522 152,520 Net position - beginning 57,236,567 5,607,689 62,844,256 1,177,948 Net position - ending $ 58,165,939 $ 8,050,839 $ 66,216,778 $ 1,330,468 Primary Government PICKENS COUNTY, GEORGIA STATEMENT OF ACTIVITIES For the year ended December 31, 2023 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 15 ---PAGE BREAK--- ASSETS Cash and cash equivalents $ 11,991,312 $ 95,000 Receivables (net) Accounts 456,105 0 Intergovernmental 652,772 0 Taxes 2,310,216 0 Prepaid items 170,625 0 Inventories 27,688 0 Due from other funds 3,405,361 0 Restricted assets Cash and cash equivalents 149,659 0 Total assets $ 19,163,738 $ 95,000 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Payables Accounts $ 916,161 $ 95,000 Retainage 0 0 Accrued salaries and expenses 574,171 0 Unearned revenue 61,753 0 Due to others 0 0 Due to other funds 1,865,764 0 Total liabilities 3,417,849 95,000 Deferred inflows of resources Unavailable revenue - property taxes 966,228 0 Fund balances Nonspendable: Prepaid items 170,625 0 Inventories 27,688 0 Restricted for: Judicial 149,659 0 Public Safety 0 0 Capital outlay 0 0 Assigned for: Government projects 1,282,904 0 Public Safety 0 0 Housing and Development 0 0 Unassigned 13,148,785 0 Total fund balances 14,779,661 0 Total liabilities, deferred inflows of resources, and fund balances $ 19,163,738 $ 95,000 American PICKENS COUNTY, GEORGIA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2023 General Act Grant Rescue Plan The accompanying notes are an integral part of these financial statements. Exhibit A-3, continued 16 ---PAGE BREAK--- $ 6,696,691 $ 1,335,602 $ 20,118,605 0 129,438 585,543 0 638,666 1,291,438 816,213 32,966 3,159,395 0 3,711 174,336 0 0 27,688 1,865,764 0 5,271,125 0 0 149,659 $ 9,378,668 $ 2,140,383 $ 30,777,789 $ 234,758 $ 412,891 $ 1,658,810 336,793 0 336,793 0 24,198 598,369 0 0 61,753 0 43,486 43,486 0 220,579 2,086,343 571,551 701,154 4,785,554 0 0 966,228 0 3,711 174,336 0 0 27,688 0 842,141 991,800 0 239,105 239,105 8,807,117 0 8,807,117 0 0 1,282,904 0 105,130 105,130 0 249,142 249,142 0 0 13,148,785 8,807,117 1,439,229 25,026,007 $ 9,378,668 $ 2,140,383 $ 30,777,789 Governmental Funds Totals SPLOST Nonmajor The accompanying notes are an integral part of these financial statements. Exhibit A-3, continued 17 ---PAGE BREAK--- Total fund balance - total governmental funds $ 25,026,007 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/amortization 45,342,607 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. 966,228 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 $ 3,385,400 Deferred outflows related to other post-employment benefits 345,165 Deferred inflows of resources: Deferred inflows related to pensions (167,852) Deferred inflows related to other post-employment benefits (159,541) 3,403,172 Long-term liabilities are not due and payable in the current period and are not reported in the funds. These are: Leases payable 172,536 Subscriptions payable 921,104 Notes payable 2,135,521 Post-closure care costs 450,000 Compensated absences 614,925 Claims and judgements payable 364,753 Net pension liability 10,789,424 Total OPEB liability 1,123,812 (16,572,075) Net position of governmental activities $ 58,165,939 PICKENS COUNTY, GEORGIA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2023 The accompanying notes are an integral part of these financial statements. Exhibit A-4 18 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- REVENUES Taxes $ 27,229,178 $ 0 Licenses and permits 622,113 0 Fines, fees and forfeitures 321,464 0 Charges for services 3,299,400 0 Intergovernmental 1,954,416 3,573,855 Contributions 41,965 0 Investment 52,904 0 Other 286,145 0 Total revenues 33,807,585 3,573,855 EXPENDITURES Current General government 5,480,698 230,776 Judicial 4,229,229 0 Public safety 17,113,907 193,970 Public works 3,893,275 0 Health and welfare 311,830 0 Culture and recreation 1,338,127 0 Housing and development 625,405 70,630 Capital outlay 0 0 Intergovernmental 0 0 Debt service 626,942 0 Total expenditures 33,619,413 495,376 Excess (deficiency) of revenues over (under) expenditures 188,172 3,078,479 Other financing sources (uses) Transfers in 1,285,404 0 Transfers out (877,334) (3,078,479) Proceeds from issuance of debt 1,199,567 0 Total other financing sources (uses) 1,607,637 (3,078,479) Net change in fund balance 1,795,809 0 Fund balances, January 1 12,983,852 0 Fund balances, December 31 $ 14,779,661 $ 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, 2023 The accompanying notes are an integral part of these financial statements. Exhibit A-5, continued 19 ---PAGE BREAK--- Nonmajor Governmental Funds Totals $ 8,675,592 $ 439,877 $ 36,344,647 0 0 622,113 0 217,309 538,773 0 1,127,312 4,426,712 843,041 2,996,177 9,367,489 12,000 44,112 98,077 25,760 6,031 84,695 0 25,975 312,120 9,556,393 4,856,793 51,794,626 0 0 5,711,474 0 3,347,505 7,576,734 0 1,648,528 18,956,405 0 0 3,893,275 0 364,580 676,410 0 0 1,338,127 0 0 696,035 5,936,088 0 5,936,088 1,578,958 0 1,578,958 360,676 0 987,618 7,875,722 5,360,613 47,351,124 1,680,671 (503,820) 4,443,502 0 812,394 2,097,798 (1,668,879) (2,500) (5,627,192) 218,086 0 1,417,653 (1,450,793) 809,894 (2,111,741) 229,878 306,074 2,331,761 8,577,239 1,133,155 22,694,246 $ 8,807,117 $ 1,439,229 $ 25,026,007 SPLOST The accompanying notes are an integral part of these financial statements. Exhibit A-5, continued 20 ---PAGE BREAK--- Net change in fund balances - total governmental funds $ 2,331,761 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 $ 3,710,507 Depreciation/amortization (3,339,778) 370,729 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. (394,778) 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 (779,350) Related accumulated depreciation 656,511 (122,839) 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 contributed 16,417 Related accumulated depreciation (9,213) 7,204 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 issuance (1,417,653) Debt principal payments 721,705 (695,948) 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 1,440,107 Cost of benefits earned net of employee contributions (1,718,436) (278,329) 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 66,433 Cost of benefits earned net of employee contributions (52,488) 13,945 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 (121,095) Compensated absences (181,278) (302,373) Change in net position of governmental activities $ 929,372 For the year ended December 31, 2023 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 21 ---PAGE BREAK--- REVENUES Taxes $ 26,191,000 $ 27,119,500 $ 27,229,178 $ 109,678 Licenses and permits 540,255 560,255 622,113 61,858 Fines, fees and forfeitures 253,000 253,000 321,464 68,464 Charges for services 3,684,600 3,745,900 3,299,400 (446,500) Intergovernmental 2,633,488 2,685,462 1,954,416 (731,046) Investment 10,100 10,100 52,904 42,804 Contributions 36,500 41,500 41,965 465 Other 347,372 277,828 286,145 8,317 Total revenues 33,696,315 34,693,545 33,807,585 (885,960) EXPENDITURES Current General Government Administration 1,746,830 1,260,629 1,259,956 673 Commission Board 211,310 216,710 216,618 92 County clerk 234,502 250,302 250,282 20 Elections 341,148 402,148 370,013 32,135 Finance 393,054 411,054 410,912 142 Legal 180,000 456,705 456,680 25 Human Resources 206,221 206,221 200,266 5,955 Tax Commissioner 807,643 807,643 754,088 53,555 Tax Assessor 790,189 897,189 896,390 799 Board of Equalization 16,658 16,658 2,059 14,599 Risk management 744,324 744,324 11,795 732,529 Buildings 590,048 621,448 621,351 97 Agencies 30,000 30,300 30,288 12 Judicial Administration 171,807 207,007 206,817 190 Superior Court 429,319 464,986 447,063 17,923 Clerk of Superior Court 750,571 885,071 884,273 798 District Attorney 644,933 644,933 599,488 45,445 Magistrate Court 522,503 522,503 452,266 70,237 Probate Court 531,396 538,996 538,988 8 Juvenile Court 402,264 402,264 383,678 18,586 Public Defender 718,803 718,803 716,656 2,147 Public Safety Sheriff department 6,148,540 5,798,540 5,395,723 402,817 Jail operations 3,371,136 4,659,136 4,658,504 632 Court services 134,439 134,439 130,095 4,344 School resource officers 622,977 634,977 634,749 228 Fire Department 5,227,073 5,383,829 5,383,582 247 Coroner 91,348 91,348 69,777 21,571 Animal Control 354,569 354,569 343,915 10,654 Emergency Management 147,709 313,541 312,600 941 County Marshall 202,161 202,161 184,962 17,199 Public Works Roads and walkways 2,462,232 2,556,232 2,555,252 980 Solid waste 867,177 1,081,177 1,080,670 507 Maintenance and shop 336,611 336,611 257,353 79,258 Health and Welfare Health department 2,750 2,750 834 1,916 Public health and welfare 114,857 142,357 142,282 75 Senior center 24,300 30,000 29,790 210 Transportation services 140,153 140,153 138,924 1,229 Budget Variance with Original Final Actual Final Budget For the year ended December 31, 2023 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--- EXPENDITURES (continued) Current Culture and Recreation Parks and recreation $ 859,707 $ 903,707 $ 903,103 $ 604 Library 435,798 435,798 435,024 774 Housing and Development Extension office 87,632 87,632 71,181 16,451 Planning and Zoning 463,986 486,986 486,957 29 Economic Development 67,267 67,267 67,267 0 Debt Service 335,297 627,297 626,942 355 Total expenditures 32,961,242 35,176,401 33,619,413 1,556,988 Excess (deficiency) of revenues over (under) expenditures 735,073 (482,856) 188,172 671,028 Other financing sources (uses) Transfers in 0 0 1,285,404 (1,285,404) Transfers out (749,669) (732,144) (877,334) 145,190 Proceeds from issuance of debt 0 1,200,000 1,199,567 433 Total other financing sources (uses) (749,669) 467,856 1,607,637 (1,139,781) Net change in fund balances (14,596) (15,000) 1,795,809 1,810,809 Fund balances, January 1 14,596 15,000 12,983,852 12,968,852 Fund balances, December 31 $ 0 $ 0 $ 14,779,661 $ 14,779,661 Budget Variance with Original Final Actual Final Budget For the year ended December 31, 2023 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 23 ---PAGE BREAK--- REVENUES Intergovernmental $ 3,573,855 $ 3,573,855 $ 3,573,855 $ 0 EXPENDITURES Current General Government Contract services 90,000 90,000 11,782 78,218 Materials and supplies 90,000 90,000 18,428 71,572 Capital outlay 1,032,645 1,032,645 200,566 832,079 Public Safety Materials and supplies 0 0 3,658 (3,658) Capital outlay 628,000 628,000 190,312 437,688 Public Works Materials and supplies 367,000 367,000 0 367,000 Housing and Development Contract services 0 0 3,870 (3,870) Materials and supplies 0 0 21,013 (21,013) Capital outlay 116,210 116,210 45,747 70,463 Total expenditures 2,323,855 2,323,855 495,376 1,828,479 Excess (deficiency) of revenues over (under) expenditures 1,250,000 1,250,000 3,078,479 1,828,479 Other financing sources (uses) Transfers out (1,250,000) (1,250,000) (3,078,479) (1,828,479) 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 For the year ended December 31, 2023 PICKENS COUNTY, GEORGIA AMERICAN RESCUE PLAN ACT GRANT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP) AND ACTUAL Original Budget Budget Actual Variance Final The accompanying notes are an integral part of these financial statements. Exhibit A-8 24 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- Totals ASSETS Current assets Cash and cash equivalents $ 8,798 $ 0 $ 8,798 Accounts receivable (net) 337,083 6,372 343,455 Leases receivable 0 6,872 6,872 Prepaid items 1,254,708 2,561 1,257,269 Inventories 70,783 41,021 111,804 Total current assets 1,671,372 56,826 1,728,198 Noncurrent assets Leases receivable 0 288,179 288,179 Capital assets Non-depreciable 470,117 3,316,163 3,786,280 Depreciable (net) 9,532,625 7,892,894 17,425,519 Total noncurrent assets 10,002,742 11,497,236 21,499,978 Total assets 11,674,114 11,554,062 23,228,176 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 240,891 101,028 341,919 Deferred outflows of resources - OPEB 55,142 39,453 94,595 Total deferred outflows of resources 296,033 140,481 436,514 LIABILITIES Current liabilities Payables Accounts 238,764 41,701 280,465 Interest 11,751 0 11,751 Accrued salaries and other payroll liabilities 16,751 3,977 20,728 Compensated absences 18,591 5,705 24,296 Due to other funds 1,878,365 1,306,417 3,184,782 Unearned revenue 0 15,230 15,230 Total OPEB Liability 8,736 4,368 13,104 Notes payable 80,052 11,658 91,710 Bonds payable 569,000 412,769 981,769 Total current liabilities 2,822,010 1,801,825 4,623,835 Noncurrent liabilities Compensated absences 7,967 2,445 10,412 Net pension liability 527,483 143,859 671,342 Total OPEB liability 93,429 46,714 140,143 Notes payable 1,727,735 251,182 1,978,917 Bonds payable 3,051,000 4,821,813 7,872,813 Total noncurrent liabilities 5,407,614 5,266,013 10,673,627 Total liabilities 8,229,624 7,067,838 15,297,462 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - leases 0 298,838 298,838 Deferred inflows of resources - pension 1,788 488 2,276 Deferred inflows of resources - OPEB 10,183 5,092 15,275 Total deferred inflows of resources 11,971 304,418 316,389 NET POSITION Net investment in capital assets 4,574,955 5,711,635 10,286,590 Unrestricted (846,403) (1,389,348) (2,235,751) Total net position $ 3,728,552 $ 4,322,287 $ 8,050,839 Sewer Airport PICKENS COUNTY, GEORGIA STATEMENT OF NET POSITION PROPRIETARY FUNDS Business-Type Activities Water and December 31, 2023 The accompanying notes are an integral part of these financial statements. Exhibit A-9 25 ---PAGE BREAK--- Totals OPERATING REVENUES Charges for sales and services $ 3,433,385 $ 873,216 $ 4,306,601 Other 5,097 14,221 19,318 Total operating revenues 3,438,482 887,437 4,325,919 OPERATING EXPENSES Costs of sales and services 1,645,486 531,865 2,177,351 Personal services 1,168,648 268,967 1,437,615 Depreciation 656,648 865,060 1,521,708 Total operating expenses 3,470,782 1,665,892 5,136,674 Operating income (loss) (32,300) (778,455) (810,755) Non-operating revenues (expenses) Gain (loss) on capital assets (15,071) 0 (15,071) Interest revenue 0 1,509 1,509 Interest expense (138,820) (282,968) (421,788) Total non-operating revenues (expenses) (153,891) (281,459) (435,350) Income (loss) before capital contributions and transfers (186,191) (1,059,914) (1,246,105) Capital contributions Intergovernmental 0 159,861 159,861 Net income (loss) before transfers (186,191) (900,053) (1,086,244) Transfers in (out) Transfers in 2,212,574 1,316,820 3,529,394 Change in net position 2,026,383 416,767 2,443,150 Net position, January 1 1,702,169 3,905,520 5,607,689 Net position, December 31 $ 3,728,552 $ 4,322,287 $ 8,050,839 PICKENS COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the year ended December 31, 2023 Water and Sewer Airport Business-Type Activities The accompanying notes are an integral part of these financial statements. Exhibit A-10 26 ---PAGE BREAK--- Totals Cash flows from operating activities: Receipts from customers $ 3,413,901 $ 1,271,589 $ 4,685,490 Payments to suppliers (2,812,089) (505,544) (3,317,633) Payments to employees (1,105,617) (233,299) (1,338,916) Other receipts 5,097 14,023 19,120 Net cash provided (used) by operating activities (498,708) 546,769 48,061 Cash flows from non-capital financing activities: Receipts from other funds 80,221 817,867 898,088 Cash flows from capital and related financing activities: Receipts from other funds 2,155,126 1,309,327 3,464,453 Receipts from other governments 0 159,861 159,861 Payment of lease proceeds 0 (309,513) (309,513) Lease payments received 0 14,462 14,462 Acquisition of capital assets (963,673) (169,686) (1,133,359) Payment of capital related accounts payable and retainage 0 (894,815) (894,815) Principal payments - bonds payable (555,000) (1,185,147) (1,740,147) Principal payments - notes payable (70,962) (7,666) (78,628) Interest paid (139,006) (282,968) (421,974) Net cash provided (used) by capital and related financing activities 426,485 (1,366,145) (939,660) Cash flows from investing activities: Interest received 0 1,509 1,509 Net increase (decrease) in cash and cash equivalents 7,998 0 7,998 Cash and cash equivalents, January 1 800 0 800 Cash and cash equivalents, December 31 $ 8,798 $ 0 $ 8,798 Sewer Airport PICKENS COUNTY, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended December 31, 2023 Business-Type Activities Water and The accompanying notes are an integral part of these financial statements. Exhibit A-11, continued 27 ---PAGE BREAK--- Totals Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (32,300) $ (778,455) $ (810,755) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 656,648 865,060 1,521,708 (Increase) decrease in accounts receivable (19,484) 9,443 (10,041) (Increase) decrease in intergovernmental receivable 0 91,004 91,004 (Increase) decrease in inventories (13,209) (7,274) (20,483) (Increase) decrease in prepaid items (1,254,708) (2,561) (1,257,269) (Increase) decrease in deferred outflows of resources - pension (34,091) 2,480 (31,611) (Increase) decrease in deferred outflows of resources - OPEB 14,348 11,134 25,482 Increase (decrease) in accounts payable 101,314 36,156 137,470 Increase (decrease) in unearned revenue 0 (1,110) (1,110) Increase (decrease) in accrued payroll liabilities 14,062 4,735 18,797 Increase (decrease) in deferred inflows of resources - leases 0 298,838 298,838 Increase (decrease) in deferred inflows of resources - pension (77,580) (21,158) (98,738) Increase (decrease) in deferred inflows of resources - OPEB 8,864 4,433 13,297 Increase (decrease) in net pension liability 152,546 41,603 194,149 Increase (decrease) in total OPEB liability (15,118) (7,559) (22,677) Total adjustments (466,408) 1,325,224 858,816 Net cash provided (used) by operating activities $ (498,708) $ 546,769 $ 48,061 PROPRIETARY FUNDS For the year ended December 31, 2023 Sewer Airport Business-Type Activities Water and PICKENS COUNTY, GEORGIA STATEMENT OF CASH FLOWS The accompanying notes are an integral part of these financial statements. Exhibit A-11, continued 28 ---PAGE BREAK--- ASSETS Cash $ 1,931,934 Taxes receivable, net 2,166,723 Total assets 4,098,657 LIABILITIES Due to others 2,848,105 NET POSITION Restricted for individuals, organizations, and other governments $ 1,250,552 Funds PICKENS COUNTY, GEORGIA FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION December 31, 2023 Custodial The accompanying notes are an integral part of these financial statements. Exhibit A-12 29 ---PAGE BREAK--- ADDITIONS Taxes collected for other agencies $ 35,475,482 Court fees collected for other agencies 1,411,036 Court individual cases 179,116 Sheriff fees collected 101,463 Sheriff inmate account deposits 303,216 Total additions 37,470,313 DEDUCTIONS Taxes distributed to other agencies 35,248,628 Court fees distributed to other agencies 1,340,407 Payments to others 764,172 Sheriff fees distributed to other agencies 95,710 Payments from inmates to others 293,477 Total deductions 37,742,394 Change in net position (272,081) Net position, January 1 1,522,633 Net position, December 31 $ 1,250,552 Funds PICKENS COUNTY, GEORGIA FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the year ended December 31, 2023 Custodial The accompanying notes are an integral part of these financial statements. Exhibit A-13 30 ---PAGE BREAK--- Totals ASSETS Current assets Cash and cash equivalents $ 212,008 $ 1,286,863 $ 1,498,871 Receivable (net) Notes 392,000 0 392,000 Inventories 0 470 470 Total current assets 604,008 1,287,333 1,891,341 Noncurrent assets Notes receivable 1,680,000 0 1,680,000 Net OPEB asset 0 7,418 7,418 Capital assets Depreciable (net) 0 34,979 34,979 Total noncurrent assets 1,680,000 42,397 1,722,397 Total assets 2,284,008 1,329,730 3,613,738 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 0 266,084 266,084 Deferred outflows of resources - OPEB 0 41,450 41,450 Total deferred outflows of resources 0 307,534 307,534 LIABILITIES Current liabilities Accounts payable 0 5,742 5,742 Due to others 0 50,914 50,914 Compensated absences 0 10,384 10,384 Bonds payable 90,601 0 90,601 Total current liabilities 90,601 67,040 157,641 Noncurrent liabilities Compensated absences 0 6,923 6,923 Bonds payable 1,239,702 0 1,239,702 Net pension liability 0 624,169 624,169 Net OPEB liability 0 40,978 40,978 Total noncurrent liabilities 1,239,702 672,070 1,911,772 Total liabilities 1,330,303 739,110 2,069,413 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 452,017 14,460 466,477 Deferred inflows of resources - OPEB 0 54,914 54,914 Total deferred inflows of resources 452,017 69,374 521,391 NET POSITION Investment in capital assets 0 34,979 34,979 Restricted for health and welfare 0 380,534 380,534 Unrestricted 501,688 413,267 914,955 Total net position $ 501,688 $ 828,780 $ 1,330,468 Authority Department Pickens County Pickens County Development Health PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION December 31, 2023 The accompanying notes are an integral part of these financial statements. Exhibit A-14 31 ---PAGE BREAK--- Totals Expenses Health and Welfare $ 0 $ 752,077 $ 752,077 Housing and Development 109,146 0 109,146 Total expenses 109,146 752,077 861,223 Program revenues Charges for services 98,000 530,447 628,447 Operating grants and contributions 0 369,818 369,818 Total program revenues 98,000 900,265 998,265 Net (expense) revenue (11,146) 148,188 137,042 General revenues Payments from Pickens County 15,051 0 15,051 Investment 427 0 427 Total general revenues 15,478 0 15,478 Change in net position 4,332 148,188 152,520 Net position, January 1 497,356 680,592 1,177,948 Net position, December 31 $ 501,688 $ 828,780 $ 1,330,468 Authority Department Pickens County County Development Health PICKENS COUNTY, GEORGIA COMPONENT UNITS COMBINING STATEMENT OF ACTIVITIES For the year ended December 31, 2023 Pickens The accompanying notes are an integral part of these financial statements. Exhibit A-15 32 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 33 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 34 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 35 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 36 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 37 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. 38 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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 39 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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. Leases Receivable Leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Under the lease agreements, the County may receive variable lease payments that are dependent upon the lessees’ revenue. The variable payments are recorded as an inflow of resources in the period the payment is received. A deferred inflow of resources is recorded for each of the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the respective lease. K. 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. L. 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. 40 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) M. 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. The County has recorded right-to-use leased assets as a result of implementing GASB Statement No. 87, Leases. The right-to-use assets are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The right-to-use leased assets are amortized on a straight-line basis over the shorter of the estimated useful life of the leased asset or life of the related lease. The County has recorded right-to-use subscription assets as a result of implementing GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The right-to-use assets are initially measured at an amount equal to the initial measurement of the related subscription liability plus any subscription payments made prior to the subscription term, less subscription incentives, and plus ancillary charges necessary to place the subscription into service. The right-to-use subscription assets are amortized on a straight-line basis over the shorter of the estimated useful life of the subscription asset or life of the related subscription. 41 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) M. 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 Intangible right-to-use assets Machinery and equipment Software 10-25 3-15 5-20 5 2-15 5 5 N. 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 assets 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. 42 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) N. 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 assets 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. other postemployment benefit plan, and leases. O. 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. 43 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) P. 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. Q. 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. R. 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. 44 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) S. 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. 45 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) S. 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. T. 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. U. 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. 46 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) V. Other Post-employment Benefits (OPEB) For purposes of measuring the total 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. W. 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. X. 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. 47 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 2. Summary of Significant Accounting Policies (continued) Y. 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. 48 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 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 1,233,085 $ Less: Allowance for Uncollectible (776,980) 456,105 Water and Sewer Fund 365,544 Less: Allowance for Uncollectible (28,461) 337,083 Airport Fund 6,372 Nonmajor Funds Special Revenue Funds E911 129,438 Total primary government 928,998 $ 5. Intergovernmental Receivables Intergovernmental receivables at the end of the current year consist of the following: Primary Government: Major Funds General Fund 652,772 $ Nonmajor Funds Special Revenue Funds Restricted Programs 638,666 Total primary government 1,291,438 $ 6. Property Taxes The County Commissioners levied property taxes on August 31, 2023. Property taxes attach as an enforceable lien on property as of January 1. Property taxes were billed on September 15, 2023, and due on November 15, 2023. 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. 49 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 7. Leases Receivable In 2023, the County entered into four leases with aviation groups and pilots to provide the tenants with the right to a portion of real property to be used to store aircraft. The lease terms vary between 27 and 30 years. Under the leases, the tenants pay the County annual payments varying between $1,296 and $9,813 for the lease term. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at an imputed discount rate ranging between 1.415% and 3.848%. At the end of the current year, leases receivable and the related deferred inflows of resources total $295,051 and $298,838, respectively, reported in the Airport Fund. During the current year, the County recognized $10,675 of lease revenue (reported as other revenue on the statement of activities) and $1,498 of interest revenue under the lease. 8. 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 1,878,365 $ Airport 1,306,417 Nonmajor Governmental 220,579 SPLOST General 1,865,764 Total 5,271,125 $ 50 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 8. 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 Water and Sewer 57,447 $ Airport 7,493 Nonmajor Governmental 812,394 American Rescue Plan Act Grant General 1,282,904 Water and Sewer 1,795,575 SPLOST Water and Sewer 359,552 Airport 1,309,327 Nonmajor Governmental General 2,500 Total 5,627,192 $ 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 years. Interfund transfers are used to 1) move revenues from the fund that statute or budget requires collecting them to the fund that statute or budget requires to expend them, and 2) use unrestricted revenues collected to finance various programs accounted for in other funds in accordance with budgetary authorizations. Transfers are eliminated in the government-wide financial statements if the interfund transfer is within the governmental fund group or business- type fund group. 51 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 9. 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 $ 37,199 $ (1,800) $ 5,727,395 Construction in progress 913,772 212,191 (913,772) 212,191 Total non-depreciable assets 6,605,768 249,390 (915,572) 5,939,586 Depreciable/amortizable assets Land improvements 1,489,861 1,212,508 (13,055) 2,689,314 Buildings and improvements 40,449,209 98,909 (449,269) 40,098,849 Machinery and equipment 8,162,258 869,787 (253,088) 8,778,957 Vehicles 9,616,688 674,963 (59,048) 10,232,603 Infrastructure 10,527,196 11,920 (3,090) 10,536,026 Intangible right-to-use assets Machinery and equipment 0 218,086 0 218,086 Software 0 1,305,133 0 1,305,133 Total depreciable assets 70,245,212 4,391,306 (777,550) 73,858,968 Less accumulated depreciation Land improvements (673,064) (124,502) 6,392 (791,174) Buildings and improvements (12,020,375) (933,833) 335,614 (12,618,594) Machinery and equipment (6,162,725) (715,555) 253,088 (6,625,192) Vehicles (6,614,292) (805,782) 59,048 (7,361,026) Infrastructure (6,293,011) (492,938) 2,369 (6,783,580) Intangible right-to-use assets Machinery and equipment 0 (32,713) 0 (32,713) Software 0 (243,668) 0 (243,668) Total accumulated depreciation (31,763,467) (3,348,991) 656,511 (34,455,947) Total depreciable assets, net 38,481,745 1,042,315 (121,039) 39,403,021 Governmental activities capital assets, net $ 45,087,513 $ 1,291,705 $ (1,036,611) $ 45,342,607 Beginning Balance Increases Decreases Ending Balance 52 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 9. Capital Assets (continued) Business-type Activities Non-depreciable assets Land $ 1,716,865 $ 0 $ 0 $ 1,716,865 Construction in progress 2,293,804 229,848 (454,237) 2,069,415 Total non-depreciable assets 4,010,669 229,848 (454,237) 3,786,280 Depreciable assets Land improvements 706,470 0 0 706,470 Buildings and improvements 4,070,618 0 (7,828) 4,062,790 Machinery and equipment 1,462,760 75,024 0 1,537,784 Vehicles 395,999 58,546 0 454,545 Infrastructure 24,302,975 1,224,178 (47,441) 25,479,712 Total depreciable assets 30,938,822 1,357,748 (55,269) 32,241,301 Less accumulated depreciation Land improvements (509,243) (28,228) 0 (537,471) Buildings and improvements (781,099) (219,476) 6,865 (993,710) Machinery and equipment (947,667) (142,056) 0 (1,089,723) Vehicles (252,267) (57,437) (309,704) Infrastructure (10,843,996) (1,074,511) 33,333 (11,885,174) Total accumulated depreciation (13,334,272) (1,521,708) 40,198 (14,815,782) Total depreciable assets, net 17,604,550 (163,960) (15,071) 17,425,519 Business-type activities capital assets, net $ 21,615,219 $ 65,888 $ (469,308) $ 21,211,799 Beginning Balance Increases Decreases Ending Balance 53 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 9. 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 5,481 0 53,540 Furniture and Fixtures 11,030 0 0 11,030 Vehicles 20,011 0 0 20,011 Total depreciable assets 153,794 5,481 0 159,275 Less accumulated depreciation Site Improvements (40,788) (6,297) 0 (47,085) Machinery and equipment (41,937) (4,233) 0 (46,170) Furniture and Fixtures (11,030) 0 0 (11,030) Vehicles (20,011) 0 0 (20,011) Total accumulated depreciation (113,766) (10,530) 0 (124,296) Total depreciable assets, net 40,028 (5,049) 0 34,979 Pickens County Health Department capital assets, net $ 40,028 $ (5,049) $ 0 $ 34,979 Beginning Balance Increases Decreases Ending Balance Beginning balances in the Pickens County Health Department have been restated to reclassify certain assets. 54 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 9. Capital Assets (continued) Depreciation/amortization expense was charged to functions/programs as follows: Primary Government Governmental Activities General Government 614,795 $ Judicial 3,048 Public Safety 1,258,074 Public Works 1,198,183 Health and Welfare 33,192 Culture and Recreation 140,936 Housing and Development 91,550 Total depreciation/amortization expense for governmental activities 3,339,778 $ Business-type activities Water and Sewer 656,648 $ Airport 865,060 Total depreciation/amortization expense for business-type activities 1,521,708 $ Component units Pickens County Health Department 10,530 $ Governmental Business-type Activities Activities Current year depreciation/amortization expense 3,339,778 $ 1,521,708 $ Prior accumulated depreciation/amortization on assets through contribution 9,213 0 Additions to accumulated depreciation/amortization 3,348,991 $ 1,521,708 $ Primary Government 55 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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 ($646,382 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 ($1,466,112 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 $23,027. 56 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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 2024 337,076 $ 45,379 $ 382,455 $ 2025 321,076 38,198 359,274 2026 328,260 31,014 359,274 2027 335,604 23,668 359,272 2028 343,115 16,159 359,274 2029-2030 470,390 9,789 480,179 Totals 2,135,521 $ 164,207 $ 2,299,728 $ Leases Payable The County has entered into an agreement to lease certain equipment. The lease agreement qualifies as other than short-term leases under GASB Statement No. 87, Leases, and, therefore, have been recorded at the present value of the future minimum lease payments at their inception. Leases payable are comprised of the following individual leases at the end of the current year:  $218,086 computer lease due in annual installments of $45,550 through March 2027, interest at 2.194%, $172,536 outstanding. 57 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. Long-Term Debt (continued) Governmental Activities, continued Leases Payable, continued The following is a schedule of future minimum lease payments together with the present value of the net minimum lease payments at the end of the current year: Year Ending December 31, Principal Interest Total 2024 41,726 $ 3,824 $ 45,550 $ 2025 42,651 2,899 45,550 2026 43,596 1,954 45,550 2027 44,563 988 45,551 Totals 172,536 $ 9,665 $ 182,201 $ Subscriptions Payable The County has entered into agreements to subscribe to certain software. The subscription agreements qualify under GASB Statement No. 96, Subscription-Based Information Technology Arrangements, and, therefore, have been recorded at the present value of the future minimum subscription payments at their inception. Subscriptions payable are comprised of the following individual subscriptions at the end of the current year:  $784,366 camera and taser software due in annual installments of $204,120 through December 2026, interest at 1.766%, $593,434 outstanding.  $415,201 accounting software due in annual installments of $87,531 through March 2027, interest at 2.672%, $327,670 outstanding. 58 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. Long-Term Debt (continued) Governmental Activities, continued Subscriptions Payable, continued The following is a schedule of future minimum subscription payments together with the present value of the net minimum subscription payments at the end of the current year: Year Ending December 31, Principal Interest Total 2024 272,999 $ 18,652 $ 291,651 $ 2025 278,586 13,065 291,651 2026 284,293 7,358 291,651 2027 85,226 2,305 87,531 Totals 921,104 $ 41,380 $ 962,484 $ 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 $ 59 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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. As of the end of the current year, the note had a balance of $1,802,061. The note required 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 $262,839. The note required 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%. 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 $5,727. 60 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. Long-Term Debt (continued) Business-type Activities, continued Notes from Direct Borrowings, continued Year Ending December 31, Principal Interest Total 2024 91,710 $ 46,262 $ 137,972 $ 2025 87,962 44,248 132,210 2026 89,984 42,224 132,208 2027 92,055 40,154 132,209 2028 94,173 38,035 132,208 2029-2033 504,418 156,627 661,045 2034-2038 565,315 95,730 661,045 2039-2043 545,010 27,854 572,864 Totals 2,070,627 $ 491,134 $ 2,561,761 $ 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% ($3,620,000 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% ($1,510,106 outstanding). All proceeds were used to finance the construction of an airport taxi way. During 2014, the agreement was modified due to additional project costs. 61 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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% ($1,114,421 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. 62 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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 2024 981,769 $ 264,937 $ 1,246,706 $ 2025 1,035,396 211,011 1,246,407 2026 1,086,489 160,159 1,246,648 2027 1,063,398 106,168 1,169,566 2028 711,528 72,655 784,183 2029-2033 1,165,296 155,708 1,321,004 2034-2035 200,651 10,101 210,752 Totals 6,244,527 $ 980,739 $ 7,225,266 $ 63 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 10. 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 ($1,330,303 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, 2023 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 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 108,999 20,910 129,909 2029-2033 627,653 65,826 693,479 2034-2035 204,278 5,096 209,374 Totals 1,330,303 $ 197,610 $ 1,527,913 $ 64 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 11. 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 $ 433,647 $ 484,831 $ 303,553 $ 614,925 $ 430,447 Leases payable 0 218,086 45,550 172,536 41,726 Subscriptions payable 0 1,199,567 278,463 921,104 272,999 Notes from direct borrowings 2,533,213 0 397,692 2,135,521 337,076 Totals $ 2,966,860 $ 1,902,484 $ 1,025,258 $ 3,844,086 $ 1,082,248 Business-type activities Compensated absences $ 17,768 $ 29,378 $ 12,438 $ 34,708 $ 24,296 Notes from direct borrowings 2,149,255 0 78,628 2,070,627 91,710 Bonds payable 10,594,729 0 1,740,147 8,854,582 981,769 Totals $ 12,761,752 $ 29,378 $ 1,831,213 $ 10,959,917 $ 1,097,775 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 $265,913 and $421,788, 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 $ 19,964 $ 11,978 $ 14,635 $ 17,307 $ 10,384 Ending Balance Beginning Balance Additions Deductions 65 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 11. 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 $ 1,416,991 $ 0 $ 86,688 $ 1,330,303 $ 90,601 Ending Balance Beginning Balance Additions Deductions 12. 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 post-closure 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 post-closure care in 2023. 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 post-closure care cost can be paid in the future. The County is in compliance at the end of the current year, based on requirements issued by the EPA. 66 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 13. 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, net 45,342,607 $ 21,211,799 $ Capital-related accounts payable (354,595) 0 Retainages payable (336,793) 0 Leases payable (172,536) 0 Subscriptions payable (921,104) 0 Notes payable (2,135,521) (2,070,627) Bonds payable 0 (8,854,582) Net investment in capital assets 41,422,058 $ 10,286,590 $ 14. 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. That report may be obtained by writing to the Government Employees Benefits Corporation of Georgia, 400 Galleria Parkway, Suite 1250, Atlanta, Georgia 30339.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. 67 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Participant counts as of January 1, 2022 (the most recent actuarial valuation) are as follows: Retirees, beneficiaries, and disablees currently receiving benefits 105 Terminated participants entitled to but not yet receiving benefits 118 Active employees participating in the plan 115 Total number of participants 338 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 $1,532,029, or 24.27% 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. 68 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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 $11,460,766. The net pension liability was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2022. For the current year, the County recognized pension expense of $1,874,155. 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, 2021 $ 24,641,273 $ 16,494,908 $ 8,146,365 Changes for the year: Service cost 568,764 0 568,764 Interest 1,692,444 0 1,692,444 Liability Experience (Gain)/Loss 299,057 0 299,057 Assumption Change 40,550 0 40,550 Employer Contributions 0 1,391,807 (1,391,807) Employee Contributions 0 321,721 (321,721) Net Investment Income 0 (2,271,985) 2,271,985 Benefit Payments (927,014) (927,014) 0 Administrative expense 0 (51,606) 51,606 Other Changes 0 (103,523) 103,523 Net changes 1,673,801 (1,640,600) 3,314,401 Balance at December 31, 2022 $ 26,315,074 $ 14,854,308 $ 11,460,766 Plan fiduciary net position as a percentage of the total pension liability 56.45% Covered payroll $ 6,568,023 Employer's net pension liability as a percentage of covered payroll 174.49% Liability Total Pension Plan Fiduciary Net Position Net Pension Liability 69 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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 $ 1,532,029 $ 0 Net difference between projected and actual earnings on pension plan investments 1,547,677 0 Differences between expected and actual experience 468,186 (38,852) Changes in participant fund allocation 131,276 (131,276) Changes of assumptions 48,151 0 Totals $ 3,727,319 $ (170,128) Deferred Outflows of Resources Deferred Inflows of Resources The $1,532,029 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 2024 444,667 $ 2025 585,351 2026 303,028 2027 692,116 Totals 2,025,162 $ 70 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. Retirement Plans (continued) County Defined Benefit Pension Plan, continued Actuarial Assumptions. The total pension liability in the January 1, 2022 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 2022. 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, 2022, 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% 71 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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% 15,144,572 $ Current discount rate 7.00% 11,460,766 1% increase 8.00% 8,406,143 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. 72 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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 $150,940 and $354,180, 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. 73 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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 $15,874 and $42,996, respectively. 74 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 14. 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, 2023, the Department contributed $81,270. As of June 30, 2023, the Department reported a liability in the amount of $624,169 for its proportionate share (0.009346%) of the net pension liability. The Department recognized pension expense of $134,827 for the fiscal year ended June 30, 2023. 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. 15. 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. 75 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued At January 1, 2023, 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, 2022, plan members receiving benefits contributed $9,123 through their required contributions and the County contributed $75,492 to the plan. 76 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. 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 total OPEB liability of $1,277,059. The total OPEB liability was measured as of January 1, 2023, and the total OPEB liability used to calculate the total OPEB liability was determined and measured from actuarial valuations using data as of January 1, 2023. During the current year, the County recognized OPEB expense of $142,267. The components of the total OPEB liability are as follows: Balances at December 31, 2022 $ 1,466,036 $ 0 $ 1,466,036 Changes for the year: Service cost 25,828 0 25,828 Interest 29,497 0 29,497 Differences between expected and actual experience 26,559 0 26,559 Contributions-employer 0 75,492 (75,492) Changes of assumptions or other inputs (150,279) 0 (150,279) Benefit payments (120,582) (75,492) (45,090) Net changes (188,977) 0 (188,977) Balances at December 31, 2023 $ 1,277,059 $ 0 $ 1,277,059 Plan fiduciary net position as a percentage of the total OPEB liability Covered-employee payroll Plan total OPEB liability as a percentage of covered employee payroll 941,266 $ 0.00% 135.67% Liability OPEB Total Liability OPEB Total Plan Fiduciary Net Position 77 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. 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 $ 240,168 $ (449) Changes of assumptions 76,573 (126,840) Changes in participant fund allocation 47,527 (47,527) Contributions subsequent to the measurement date 75,492 0 Totals $ 439,760 $ (174,816) Deferred Outflows of Resources Deferred Inflows of Resources The $75,492 of deferred outflows of resources resulting from the County’s contributions subsequent to the measurement date will be recognized as a reduction of the total 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 2024 84,758 $ 2025 84,715 2026 44,725 2027 (24,746) Totals 189,452 $ 78 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. Post-Employment Benefits Other Than Pensions (continued) County Plan, continued Actuarial Assumptions. The total OPEB liability in the January 1, 2023 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 3.72%, 2.06% 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, 2023 actuarial valuation were based on the pension valuation prepared by GEBCorp as of January 1, 2022. The remaining actuarial assumptions initial per capita costs, health care cost trends, etc.) used in the January 1, 2023 actuarial valuation were based on a review of recent plan experience performed concurrently with the January 1, 2023 valuation. 79 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. 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 3.72%. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents what the total 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 total 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 2.72% 1,167,420 $ Current discount rate 3.72% 1,277,059 1% increase 4.72% 1,400,452 Net OPEB Healthcare Cost Trend Rates Liability 1% decrease 1,366,136 $ Current trend rate 1,277,059 1% increase 1,193,141 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. 80 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 15. 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, 2022, the Department contributed $17,132. As of June 30, 2023, the Department reported a net OPEB asset in the amount of $7,418 and net OPEB liability in the amount of $40,978 for its proportionate share (0.002018%) for the SEAD-OPEB Fund and 0.009120% for the State of Georgia OPEB Fund) of the net OPEB asset and liability. The Department recognized OPEB expense of ($30,823) for the fiscal year ended June 30, 2023. 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 $ 439,877 Disbursements for trade and tourism $ 364,580 83% of tax receipts Transfers to General Fund $ 2,500 1% of tax receipts 81 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 17. 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. 82 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 18. 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 Anthem Blue Cross and Blue Shield, the County’s third-party administrator, that carries a $125,000 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. 83 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 18. 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 243,658 $ Incurred claims, net of any changes 6,855,042 Payments (6,733,947) Ending Balance 364,753 $ 19. 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. 84 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS December 31, 2023 Exhibit A-16, continued 20. New Accounting Pronouncements The County implemented GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, effective for the County’s current year. The requirements of this statement are effective for periods beginning after June 15, 2022. The implementation of this new standard had no impact on the County’s net position. The County implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements, effective for the County’s current year. The requirements of this statement are effective for periods beginning after June 15, 2022. The implementation of this new standard had no impact on the County’s net position. The County implemented GASB Statement No. 99, Omnibus 2022, effective for the County’s current year. The requirements of this statement are effective for periods beginning after June 15, 2022. The implementation of this new standard had no impact on the County’s net position. 85 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- Total pension liability Service cost $ 568,764 $ 647,170 $ 639,263 Interest 1,692,444 1,551,263 1,426,797 Liability experience (gain) / loss 299,057 700,451 (205,361) Assumption change 40,550 38,004 37,588 Plan change 0 0 744,132 Benefit payments, including refunds of employee contributions (927,014) (913,008) (815,684) Net change in total pension liability 1,673,801 2,023,880 1,826,735 Total pension liability - beginning 24,641,273 22,617,393 20,790,658 Total pension liability - ending $ 26,315,074 $ 24,641,273 $ 22,617,393 Plan fiduciary net position Contributions - employer $ 1,391,807 $ 1,418,719 $ 1,346,566 Contributions - employee 321,721 371,786 364,175 Net investment income (2,271,985) 2,093,436 1,681,747 Benefit payments, including refunds of employee contributions (927,014) (913,008) (815,684) Administrative expense (51,606) (51,241) (49,350) Other (103,523) (107,237) (81,810) Net change in plan fiduciary net position (1,640,600) 2,812,455 2,445,644 Plan fiduciary net position - beginning 16,494,908 13,682,453 11,236,809 Plan fiduciary net position - ending $ 14,854,308 $ 16,494,908 $ 13,682,453 Net pension liability - ending : - $ 11,460,766 $ 8,146,365 $ 8,934,940 Plan's fiduciary net position as a percentage of the total pension liability 56.45% 66.94% 60.50% Covered payroll $ 6,568,023 $ 7,241,121 $ 6,914,445 Net pension liability as a percentage of covered payroll 174.49% 112.50% 129.22% Note: Fiscal year 2015 was the first year of implementation. Therefore, years prior to 2015 are not reported. PICKENS COUNTY, GEORGIA SCHEDULE OF NET PENSION LIABILITY (ASSET) AND RELATED RATIOS LAST TEN FISCAL YEARS December 31, 2023 (Unaudited) 2023 2021 2022 Fiscal Year End The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-1, continued 86 ---PAGE BREAK--- $ 645,330 $ 563,685 $ 516,229 $ 485,085 $ 253,346 $ 264,362 1,292,096 1,099,774 976,033 634,742 578,687 538,805 197,356 1,029,288 742,096 148,184 (79,204) 0 880,753 895,492 36,116 471,061 312,106 0 0 0 0 3,698,277 0 0 (683,385) (598,066) (529,326) (346,769) (288,319) (254,487) 2,332,150 2,990,173 1,741,148 5,090,580 776,616 548,680 18,458,508 15,468,335 13,727,187 8,636,607 7,859,991 7,311,311 $ 20,790,658 $ 18,458,508 $ 15,468,335 $ 13,727,187 $ 8,636,607 $ 7,859,991 $ 1,238,819 $ 1,077,733 $ 990,265 $ 866,021 $ 576,852 $ 604,422 375,521 334,523 349,920 329,750 0 0 1,725,926 (369,268) 1,046,254 429,014 27,148 319,652 (660,275) (598,066) (529,326) (346,769) (288,319) (254,487) (54,658) (37,089) (34,798) (38,193) (32,894) (33,048) (92,775) (80,874) (58,529) (44,922) (53,498) (37,331) 2,532,558 326,959 1,763,786 1,194,901 229,289 599,208 8,704,251 8,377,292 6,613,506 5,418,605 5,189,316 4,590,108 $ 11,236,809 $ 8,704,251 $ 8,377,292 $ 6,613,506 $ 5,418,605 $ 5,189,316 $ 9,553,849 $ 9,754,257 $ 7,091,043 $ 7,113,681 $ 3,218,002 $ 2,670,675 54.05% 47.16% 54.16% 48.18% 62.74% 66.02% $ 6,813,847 $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 $ 7,234,670 140.21% 144.27% 105.32% 113.61% 49.85% 36.91% 2018 2020 2019 2017 Fiscal Year End 2015 2016 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-1, continued 87 ---PAGE BREAK--- Actuarially determined contribution $ 1,254,535 $ 1,291,448 $ 1,233,511 Contributions in relation to the actuarially determined contribution (1,532,029) (1,391,807) (1,418,719) Contribution deficiency (excess) $ (277,494) $ (100,359) $ (185,208) Covered payroll $ 6,312,987 $ 9,999,504 $ 6,914,445 Contributions as a percentage of covered payroll 24.27% 13.92% 20.52% Note: Fiscal year 2015 was the first year of implementation. Therefore, years prior to 2015 are not reported. PICKENS COUNTY, GEORGIA SCHEDULE OF CONTRIBUTIONS LAST TEN FISCAL YEARS December 31, 2023 (Unaudited) 2022 Fiscal Year End 2023 2021 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-2, continued 88 ---PAGE BREAK--- $ 1,137,984 $ 986,766 $ 865,930 $ 726,960 $ 556,622 $ 565,792 (1,238,819) (1,077,733) (990,265) (866,021) (576,852) (604,422) $ (100,835) $ (90,967) $ (124,335) $ (139,061) $ (20,230) $ (38,630) $ 7,261,035 $ 6,813,847 $ 6,761,050 $ 6,732,730 $ 6,261,763 $ 6,455,121 17.06% 15.82% 14.65% 12.86% 9.21% 9.36% Fiscal Year End 2015 2016 2018 2017 2020 2019 The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-2, continued 89 ---PAGE BREAK--- Total OPEB liability Service cost $ 25,828 $ 37,876 $ 31,896 Interest 29,497 26,303 32,534 Differences between expected and actual experience 26,559 255,260 39,451 Changes of assumptions or other inputs (150,279) 21,654 58,486 Benefit payments (120,582) (154,990) (75,407) Implicit subsidy credit 0 0 0 Net change in total OPEB liability (188,977) 186,103 86,960 Total OPEB liability - beginning 1,466,036 1,279,933 1,192,973 Total OPEB liability - ending $ 1,277,059 $ 1,466,036 $ 1,279,933 Plan fiduciary net position Contributions - employer $ 75,492 $ 55,961 $ 75,407 Benefit payments (75,492) (55,961) (75,407) 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 Total OPEB liability - ending : - $ 1,277,059 $ 1,466,036 $ 1,279,933 Plan's fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% Covered-employee payroll $ 941,266 $ 941,266 $ 1,328,504 Total OPEB liability as a percentage of covered-employee payroll 135.67% 155.75% 96.34% Note: Fiscal year 2018 was the first year of implementation. Therefore, years prior to 2018 are not reported. PICKENS COUNTY, GEORGIA 2023 2021 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS December 31, 2023 (Unaudited) 2022 Fiscal Year End The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-3, continued 90 ---PAGE BREAK--- $ 22,883 $ 25,288 $ 22,750 36,447 32,082 34,339 147,839 (3,444) 7,844 111,532 (50,730) 26,958 (12,165) (36,498) (44,902) (16,900) (27,900) (26,000) 289,636 (61,202) 20,989 903,337 964,539 943,550 $ 1,192,973 $ 903,337 $ 964,539 $ 12,165 $ 36,498 $ 44,902 (12,165) (36,498) (44,902) 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 1,192,973 $ 903,337 $ 964,539 0.00% 0.00% 0.00% $ 1,328,504 $ 1,239,011 $ 1,239,011 89.80% 72.91% 77.85% 2020 2019 2018 Fiscal Year End The accompanying notes to the required supplementary information are an integral part of this schedule. Exhibit B-3, continued 91 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 Exhibit B-4, continued Pension Plan 1. Valuation Date The actuarially determined contribution rate was determined as of January 1, 2022, 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, 2024. 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 2022. 3. Changes in Benefits There have been no substantive changes since the last actuarial valuation. 92 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 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 2022 instead of to 2021. OPEB Plan 1. Valuation Date The net OPEB liability was measured as of January 1, 2023, 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, 2023. 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% 93 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 Exhibit B-4, continued OPEB Plan (continued) 2. Methods and Assumptions Used to Determine Contribution Rates (continued) Discount rate = 3.72 2.06% 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 2.06% to 3.72%. 94 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- COMBINING STATEMENTS Nonmajor Governmental Funds ---PAGE BREAK--- Nonmajor Governmental Funds ASSETS Cash and cash equivalents $ 53,640 $ 199,070 $ 12,227 $ 49,469 $ 679,269 $ 307,875 $ 34,052 $ 1,335,602 Receivable Accounts 0 0 129,438 0 0 0 0 129,438 Intergovernmental 0 0 0 0 638,666 0 0 638,666 Taxes receivable 0 0 0 0 0 32,966 0 32,966 Prepaid items 0 0 3,606 0 105 0 0 3,711 Total assets $ 53,640 $ 199,070 $ 145,271 $ 49,469 $ 1,318,040 $ 340,841 $ 34,052 $ 2,140,383 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 998 $ 0 $ 13,136 $ 0 $ 307,058 $ 91,699 $ 0 $ 412,891 Accrued salaries and expenses 0 0 23,399 0 799 0 0 24,198 Due to other funds 299 0 0 0 220,280 0 0 220,579 Due to other agencies 0 0 0 43,486 0 0 0 43,486 Total liabilities 1,297 0 36,535 43,486 528,137 91,699 0 701,154 Fund balances Nonspendable: Prepaid items 0 0 3,606 0 105 0 0 3,711 Restricted for: Judicial 52,343 0 0 0 789,798 0 0 842,141 Public safety 0 199,070 0 5,983 0 0 34,052 239,105 Assigned for: Public safety 0 0 105,130 0 0 0 0 105,130 Housing and Development 0 0 0 0 0 249,142 0 249,142 Total fund balances 52,343 199,070 108,736 5,983 789,903 249,142 34,052 1,439,229 Total liabilities and fund balances $ 53,640 $ 199,070 $ 145,271 $ 49,469 $ 1,318,040 $ 340,841 $ 34,052 $ 2,140,383 Speed Force Enforcement Drug Task Restricted Programs Hotel/Motel Tax Library E-911 Law Law Enforcement PICKENS COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2023 Total Special Revenue Sheriff Sheriff Exhibit C-1 95 ---PAGE BREAK--- Nonmajor Governmental REVENUES Taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 439,877 $ 0 $ 439,877 Intergovernmental 0 0 0 0 2,996,177 0 0 2,996,177 Charges for services 0 113,002 762,440 0 251,870 0 0 1,127,312 Fines, fees, and forfeitures 17,992 0 0 0 165,265 0 34,052 217,309 Contributions 0 12,500 0 0 31,612 0 0 44,112 Investment 868 1,109 0 1,057 2,197 800 0 6,031 Other 0 21,901 483 0 3,591 0 0 25,975 Total revenues 18,860 148,512 762,923 1,057 3,450,712 440,677 34,052 4,856,793 EXPENDITURES Current Judicial 12,750 0 0 0 3,334,755 0 0 3,347,505 Public safety 0 96,962 1,551,566 0 0 0 0 1,648,528 Housing and development 0 0 0 0 0 364,580 0 364,580 Total expenditures 12,750 96,962 1,551,566 0 3,334,755 364,580 0 5,360,613 Excess (deficiency) of revenues over (under) expenditures 6,110 51,550 (788,643) 1,057 115,957 76,097 34,052 (503,820) Other financing sources (uses) Transfers in 0 0 769,610 0 42,784 0 0 812,394 Transfers out 0 0 0 0 0 (2,500) 0 (2,500) Total other financing sources 0 0 769,610 0 42,784 (2,500) 0 809,894 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 6,110 51,550 (19,033) 1,057 158,741 73,597 34,052 306,074 Fund balances, January 1 46,233 147,520 127,769 4,926 631,162 175,545 0 1,133,155 Fund balances, December 31 $ 52,343 $ 199,070 $ 108,736 $ 5,983 $ 789,903 $ 249,142 $ 34,052 $ 1,439,229 Hotel/Motel Tax Sheriff 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, 2023 Special Revenue Speed Enforcement Sheriff Law Law Exhibit C-2 96 ---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. Sheriff Speed Enforcement Fund – This fund is used to account for speeding fines received restricted for law enforcement. ---PAGE BREAK--- Variance REVENUES Fines and forfeitures $ 15,000 $ 17,992 $ 2,992 Investment 200 868 668 Total revenues 15,200 18,860 3,660 EXPENDITURES Current Public Safety 15,200 12,750 2,450 Total expenditures 15,200 12,750 2,450 Excess (deficiency) of revenues over (under) expenditures 0 6,110 6,110 Fund balances, January 1 0 46,233 46,233 Fund balances, December 31 $ 0 $ 52,343 $ 52,343 Final Budget Actual For the year ended December 31, 2023 PICKENS COUNTY, GEORGIA LAW LIBRARY SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Exhibit C-3 97 ---PAGE BREAK--- Variance REVENUES Charges for service $ 96,100 $ 113,002 $ 16,902 Investment 300 1,109 809 Contributions 8,600 12,500 3,900 Other 0 21,901 21,901 Total revenues 105,000 148,512 43,512 EXPENDITURES Current Public Safety Contract services 76,900 23,869 53,031 Materials and supplies 28,100 73,093 (44,993) Total expenditures 105,000 96,962 8,038 Excess (deficiency) of revenues over (under) expenditures 0 51,550 51,550 Fund balances, January 1 0 147,520 147,520 Fund balances, December 31 $ 0 $ 199,070 $ 199,070 Final Budget Actual For the year ended December 31, 2023 PICKENS COUNTY, GEORGIA SHERIFF LAW ENFORCEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Exhibit C-4 98 ---PAGE BREAK--- Variance REVENUES Charges for services $ 820,100 $ 762,440 $ (57,660) Other 0 483 483 Total revenues 820,100 762,923 (57,177) EXPENDITURES Current Public Safety Personal services 1,332,486 1,332,245 241 Contract services 208,108 209,732 (1,624) Materials and supplies 11,650 9,589 2,061 Total expenditures 1,552,244 1,551,566 678 Excess (deficiency) of revenues over (under) expenditures (732,144) (788,643) (56,499) Other financing sources (uses) Transfers in (out) General Fund 732,144 769,610 37,466 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 (19,033) (19,033) Fund balance, January 1 0 127,769 127,769 Fund balance, December 31 $ 0 $ 108,736 $ 108,736 For the year ended December 31, 2023 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 99 ---PAGE BREAK--- Variance REVENUES Investment $ 0 $ 1,057 $ 1,057 Total revenues 0 1,057 1,057 EXPENDITURES Current Public Safety 0 0 0 Total expenditures 0 0 0 Excess (deficiency) of revenues over (under) expenditures 0 1,057 1,057 Fund balances, January 1 0 4,926 4,926 Fund balances, December 31 $ 0 $ 5,983 $ 5,983 For the year ended December 31, 2023 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-6 100 ---PAGE BREAK--- Variance REVENUES Intergovernmental $ 4,188,575 $ 2,996,177 $ (1,192,398) Charges for services 173,301 251,870 78,569 Fines and forfeitures 233,556 165,265 (68,291) Contributions 0 31,612 31,612 Investment 776 2,197 1,421 Other 0 3,591 3,591 Total revenues 4,596,208 3,450,712 (1,145,496) EXPENDITURES Current Judicial Personal services 1,688,550 1,326,842 361,708 Contract services 880,002 749,692 130,310 Materials and supplies 204,550 306,818 (102,268) Capital outlay 97,293 8,500 88,793 Payments to others 1,671,142 942,903 728,239 Total expenditures 4,541,537 3,334,755 1,206,782 Excess (deficiency) of revenues over (under) expenditures 54,671 115,957 61,286 Other financing sources (uses) Transfers in (out) General Fund 0 42,784 42,784 Contingency (54,671) 0 54,671 Total other financing sources (54,671) 42,784 97,455 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 158,741 158,741 Fund balances, January 1 0 631,162 631,162 Fund balances, December 31 $ 0 $ 789,903 $ 789,903 For the year ended December 31, 2023 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-7 101 ---PAGE BREAK--- Variance REVENUES Taxes $ 366,000 $ 439,877 $ 73,877 Investment 0 800 800 Total revenues 366,000 440,677 74,677 EXPENDITURES Current Housing and Development Contract services 20,000 19,312 688 Materials and supplies 9,000 8,675 325 Payments to others 337,000 336,593 407 Total expenditures 366,000 364,580 1,420 Excess (deficiency) of revenues over (under) expenditures 0 76,097 76,097 Other financing sources (uses) Transfers in (out) General Fund 0 (2,500) (2,500) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 0 73,597 73,597 Fund balances, January 1 0 175,545 175,545 Fund balances, December 31 $ 0 $ 249,142 $ 249,142 PICKENS COUNTY, GEORGIA HOTEL/MOTEL TAX SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Budget Actual For the year ended December 31, 2023 Final Exhibit C-8 102 ---PAGE BREAK--- Variance REVENUES Fines, fees, and forfeitures $ 0 $ 34,052 $ 34,052 Total revenues 0 34,052 34,052 EXPENDITURES Current Public Safety 0 0 0 Total expenditures 0 0 0 Excess (deficiency) of revenues over (under) expenditures 0 34,052 34,052 Fund balances, January 1 0 0 0 Fund balances, December 31 $ 0 $ 34,052 $ 34,052 For the year ended December 31, 2023 PICKENS COUNTY, GEORGIA SHERIFF SPEED ENFORCEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Final Budget Actual Exhibit C-9 103 ---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 $ 810,387 $ 237,487 $ 40,706 $ 757,428 $ 85,926 $ 1,931,934 Taxes receivable, net 2,166,723 0 0 0 0 2,166,723 Total assets 2,977,110 237,487 40,706 757,428 85,926 4,098,657 LIABILITIES Due to other agencies 2,750,256 5,402 10,490 69,432 12,525 2,848,105 NET POSITION Restricted for individuals, organizations, and other governments $ 226,854 $ 232,085 $ 30,216 $ 687,996 $ 73,401 $ 1,250,552 Department Tax Probate Sheriff Commissioner Court Magistrate Court Court Superior Clerk of PICKENS COUNTY, GEORGIA CUSTODIAL FUNDS STATEMENT OF FIDUCIARY NET POSITION December 31, 2023 Exhibit D-1 104 ---PAGE BREAK--- ADDITIONS Taxes collected for other agencies $ 35,475,482 $ 0 $ 0 $ 0 $ 0 $ 35,475,482 Court fees collected for other agencies 0 222,112 249,268 939,656 0 1,411,036 Court individual cases 0 0 0 179,116 0 179,116 Sheriff fees collected 0 0 0 0 101,463 101,463 Sheriff inmate account deposits 0 0 0 0 303,216 303,216 Total additions 35,475,482 222,112 249,268 1,118,772 404,679 37,470,313 DEDUCTIONS Taxes distributed to other agencies 35,248,628 0 0 0 0 35,248,628 Court fees distributed to other agencies 0 243,037 157,714 939,656 0 1,340,407 Payments to others 0 0 90,770 673,402 0 764,172 Sheriff fees distributed to other agencies 0 0 0 0 95,710 95,710 Payments from inmates to others 0 0 0 0 293,477 293,477 Total deductions 35,248,628 243,037 248,484 1,613,058 389,187 37,742,394 Change in net position 226,854 (20,925) 784 (494,286) 15,492 (272,081) Net position, January 1 0 253,010 29,432 1,182,282 57,909 1,522,633 Net position, December 31 $ 226,854 $ 232,085 $ 30,216 $ 687,996 $ 73,401 $ 1,250,552 PICKENS COUNTY, GEORGIA CUSTODIAL FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the year ended December 31, 2023 Sheriff Tax Department Total Custodial Funds Magistrate Court Commissioner Clerk of Superior Court Probate Court Exhibit D-2 105 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- The contents of the statistical section of the annual comprehensive financial report presents information regarding financial trends, revenue capacity, debt service and debt capacity, demographic and economic information and operating information. Financial These schedules should help the reader understand how the County's financial performance and well‐being have changed over time. Revenue These schedules contain information in order for the reader to assess the County's most significant revenue sources. Debt 119‐124 These schedules contain information in order for the reader to assess the affordability of the County's current levels of outstanding debt and the ability for the County to issue additional debt in the future. Demographic and Economic These schedules offer demographic and economic indicators to help thte reader understand the environment within which the County's financial activities take place. Operating 128‐131 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. PICKENS COUNTY, GEORGIA Introduction to the Statistical Section (UNAUDITED) ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental Activities Net Investment in Capital Assets 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 $ 41,422,058 $ Restricted 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 10,729,410 Unrestricted 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 6,014,471 Total Governmental Activities Net Position 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 58,165,939 Restricted Business type Activities Net Investment in Capital Assets 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 10,286,590 Restricted 41,172 837,722 Unrestricted (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) (2,235,751) Total Business‐type Activities Net Position 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 8,050,839 Primary Government Net Investment in Capital Assets 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 51,708,648 Restricted 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 10,729,410 Unrestricted 1,762,725 (557,659) 282,481 (2,497,588) 139,496 (1,693,638) 281,148 (2,425,278) 2,898,761 3,778,720 Total Primary Government Net Position 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 $ 66,216,778 $ PICKENS COUNTY, GEORGIA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS Exhibit E-1 106 ---PAGE BREAK--- This page intentionally left blank. ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expenses: Governmental Activities: General government 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 $ 5,777,326 $ Judicial 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 7,120,778 Public safety 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 19,955,488 Public works 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 10,896,739 Health and welfare 493,080 407,885 608,533 913,171 614,966 635,002 448,756 257,349 295,209 307,767 Culture and recreation 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 1,506,541 Housing and development 565,006 546,155 664,209 755,788 757,693 844,471 923,600 1,011,310 1,204,813 1,117,737 Interest on long‐term debt 153,459 128,136 104,003 87,911 72,037 83,303 121,611 28,771 23,105 265,913 Total Governmental Activities 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 46,948,289 Business‐type Activities: Water 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 3,624,673 Airport 656,841 520,816 496,946 580,662 649,732 1,035,345 831,611 1,001,041 2,205,744 1,948,860 Total Business‐type Activities 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 5,573,533 Total Primary Government 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 52,521,822 Program Revenues Governmental Activities Charges for services General government 873,106 803,574 859,616 896,509 872,661 919,246 1,167,698 1,071,946 1,032,444 1,041,257 Judicial 1,200,411 1,229,872 1,055,608 1,411,195 1,245,475 1,115,004 1,064,858 195,885 191,897 566,744 Public safety 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 2,962,100 Public works 340,580 355,239 363,440 424,710 449,996 409,380 703,906 859,104 865,255 832,563 Health and welfare 725 15,240 200 17,918 33,966 25,015 24,066 ‐ ‐ ‐ Culture and recreation 187,889 182,250 157,942 159,836 182,888 211,929 94,014 175,772 149,430 162,790 Housing and development 162,314 154,405 216,414 245,839 272,831 300,050 351,099 29,421 21,920 27,252 Operating grants and contributions 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 8,479,187 Capital grants and contributions 51,672 1,264,247 165,347 359,286 17,973 ‐ 8,962 760,701 31,019 988,478 Total Governmental Activities 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 15,060,371 Business‐type Activities: Water and Sewer Charges for services 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 3,433,385 Operating grants and contributions ‐ ‐ ‐ ‐ ‐ 36,333 44,445 ‐ ‐ ‐ Capital grants and contributions ‐ ‐ ‐ ‐ 16,006 ‐ ‐ 85,000 3,926 ‐ Airport Charges for services 374,594 325,750 307,668 304,959 383,543 732,888 536,670 740,962 1,010,917 873,216 Operating grants and contributions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital grants and contributions 128,063 151,731 531,386 157,770 ‐ 141,664 110,861 13,000 966,533 159,861 Total Business‐type Activities 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 4,466,462 Total Primary Government 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 19,526,833 PICKENS COUNTY, GEORGIA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Exhibit E-2, continued 107 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PICKENS COUNTY, GEORGIA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Net (Expenses) Revenue Governmental Activities (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) (31,887,918) Business‐type Activities (233,772) (200,442) 409,932 (113,365) (166,821) (111,683) (1,434) (392,100) (639,041) (1,107,071) Total Primary Government Net Expense (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) (32,994,989) General Revenues and Other Changes in Net Position Governmental Activities Property taxes 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 17,513,901 Sales taxes 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 14,741,787 Insurance premium taxes 1,226,610 1,313,298 1,397,559 1,496,738 1,613,886 1,730,464 1,832,076 1,906,424 2,210,705 312,104 Intangible 172,785 188,503 368,329 384,426 306,133 360,511 562,787 574,757 444,828 2,345,976 Other taxes 360,113 355,425 363,124 538,990 530,004 466,622 501,587 902,890 1,105,540 1,036,101 Interest and investment revenue 4,209 20,872 25,909 10,452 17,795 30,715 10,979 11,706 22,002 84,695 Other ‐ ‐ ‐ ‐ ‐ ‐ ‐ 457,791 277,708 312,120 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 14,558 26,336 ‐ (143,409) ‐ (233,662) (326,000) (359,980) (1,141,408) (3,529,394) Total Governmental Activities 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 32,817,290 Business‐type Activities Unrestricted investment earnings 56 16 7 3 ‐ ‐ ‐ ‐ 10 1,509 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 19,318 Transfers (14,558) (26,336) ‐ 143,409 ‐ 233,662 326,000 359,980 1,141,408 3,529,394 Total Business‐type Activities (14,502) (6,608) 7 143,412 19,000 235,063 362,005 381,770 1,147,390 3,550,221 Total Primary Government 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 36,367,511 Change in Net Position Governmental Activities 1,528,543 2,083,850 867,350 (1,668,688) 742,314 241,193 1,334,968 3,515,541 3,083,924 929,372 Business‐type Activities (248,274) (207,050) 409,939 30,047 (147,821) 123,380 360,571 (10,330) 508,349 2,443,150 Total Primary Government 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 $ 3,372,522 $ Net Position, beginning of year, as restated 51,126,100 49,795,367 51,672,166 53,415,467 52,591,873 53,186,366 53,550,939 56,149,173 59,251,983 62,844,256 Net Position, end of year 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 $ 66,216,778 $ Exhibit E-2, continued 108 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Fund Nonspendable: Prepaids 20,653 $ 150 $ 112,103 $ 37,529 $ 64,838 $ 550,653 $ 723,390 $ 108,756 $ 117,547 $ 170,625 $ Inventory 20,791 32,120 21,356 39,326 49,820 51,157 59,495 104,463 27,202 27,688 Restricted Capital outlay projects ‐ ‐ 125,000 518,329 572,203 628,172 572,636 ‐ ‐ 1,282,904 Judicial 56,496 76,313 126,578 95,537 137,692 197,782 151,108 200,375 200,375 149,659 Unassigned 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 13,148,785 Total General Fund 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 14,779,661 All Other Governmental Funds Nonspendable: Prepaids ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,711 Restricted: Judicial 83,038 228,479 455,788 186,188 356,277 372,057 509,031 567,389 677,395 842,141 Public Safety 263,621 289,174 200,917 198,692 263,099 321,126 315,007 168,310 152,446 239,105 Housing and Development 14,224 20,837 30,499 34,494 23,706 20,624 15,264 75,081 ‐ ‐ Capital Outlay Projects 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 8,807,117 Assigned Public Safety ‐ ‐ ‐ ‐ ‐ ‐ ‐ 123,974 127,769 105,130 Housing and Development ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 175,545 249,142 Total All Other Governmental Funds 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 10,246,346 Total All Governmental Funds 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 $ 25,026,007 $ 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 16,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Fund Other Governmental Funds Exhibit E-3 109 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues Taxes 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 $ 36,344,647 $ Licenses and permits 288,022 292,090 347,577 413,660 445,799 470,932 547,158 642,024 647,063 622,113 Fines and penalties 633,791 726,784 605,404 891,546 729,014 717,149 448,380 570,555 473,991 538,773 Charges for services 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 4,426,712 Intergovernmental 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 9,367,489 Contributions 28,985 33,549 72,414 22,766 112,568 70,689 34,308 50,868 66,489 98,077 Investment earnings 4,207 20,872 25,908 24,330 35,768 30,714 19,942 18,226 35,780 84,695 Other revenues 105,654 201,065 112,623 102,246 130,761 98,460 491,031 457,791 277,708 312,120 Total revenues 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 51,794,626 Expenditures General government 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 5,711,474 Judicial 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 7,576,734 Public safety 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 18,956,405 Public works 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 3,893,275 Health and welfare 384,276 340,382 508,945 881,477 576,520 596,750 411,332 201,555 630,828 676,410 Culture and recreation 864,775 980,876 905,225 924,294 975,777 1,013,168 2,763,765 1,215,186 1,206,454 1,338,127 Housing and development 542,074 503,709 554,070 552,563 601,660 669,308 745,135 962,706 800,521 696,035 Capital Outlay 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 5,936,088 Intergovernmental 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 1,578,958 Debt Service Principal 2,815,924 916,609 775,261 911,871 946,115 432,018 552,986 47,110 96,989 721,705 Interest 153,458 128,136 104,003 87,910 72,036 83,303 121,611 10,921 19,073 265,913 Total expenditures 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 47,351,124 Excess (deficiency) of revenues over (under) expenditures 1,708,228 639,870 1,442,630 1,890,018 (864,951) (710,233) (130,980) 7,001,835 3,556,794 4,443,502 Other Financing Sources (Uses) Capital lease proceeds 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 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Proceeds from issuance of Debt ‐ ‐ 300,000 ‐ ‐ 1,030,000 ‐ ‐ ‐ 1,417,653 Transfers in 528,261 699,556 605,118 614,620 723,358 672,702 728,351 643,001 882,888 2,097,798 Transfers out (513,703) (673,221) (605,118) (758,029) (723,358) (906,364) (1,054,351) (1,002,981) (2,024,296) (5,627,192) Total other financing sources (uses) 157,399 1,118,532 622,361 321,289 255,872 950,433 2,342,984 (359,980) (1,134,758) (2,111,741) Net Change in Fund Balance 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 $ 2,331,761 $ Fund Balances, beginning of the year (restated) 4,851,625 6,809,851 8,568,253 10,553,751 12,765,058 12,155,979 12,396,179 14,032,756 20,272,210 22,694,246 Fund Balances, end of year 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 $ 25,026,007 $ Debt service as a percentage of noncapital expenditures 11.25% 3.98% 3.10% 3.37% 3.23% 1.56% 1.97% 0.00% 0.33% 2.38% PICKENS COUNTY, GEORGIA CHANGE IN FUND BALANCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Exhibit E-4 110 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program Primary Government: Governmental Activities: General government 891,237 $ 823,068 $ 1,093,620 $ 1,213,857 $ 884,374 $ 936,030 $ 1,206,971 $ 3,443,641 $ 1,610,751 $ 4,615,117 $ Judicial 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 4,390,849 Public safety 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 3,900,788 Public works 340,580 355,239 442,071 624,436 467,969 409,380 2,158,543 1,956,976 1,157,485 1,809,041 Health and welfare 234,227 288,421 153,056 288,730 159,052 89,337 89,226 ‐ 73,464 63,101 Culture and recreation 187,889 182,250 157,942 159,836 182,888 211,929 94,014 186,920 155,496 174,009 Housing and development 162,314 1,291,933 218,404 245,839 272,831 300,050 421,549 97,485 97,565 107,466 Total Governmental Activities 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 15,060,371 Business‐type Activities: Water and Sewer 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 3,433,385 Airport 502,657 477,481 839,054 462,729 383,543 874,552 647,531 753,962 1,977,450 1,033,077 Total Business‐type Activities 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 4,466,462 Total Primary Government 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 $ 19,526,833 $ PICKENS COUNTY, GEORGIA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (accrual basis of accounting) Exhibit E-5 111 ---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 12/31/2014 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 12/31/2023 14,915,102 312,104 3,118,796 2,345,976 8,675,592 6,066,195 910,883 36,344,647 PICKENS COUNTY, GEORGIA TAX REVENUES BY SOURCE , GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Real/Personal Property Tax, 14,915,102 Intangible Tax, 312,104 Motor Vehicle/TAVT Tax, 3,118,796 Insurance Premium Tax, 2,345,976 Special Purpose Local Option Sales Tax, 8,675,592 Local Option Sales Tax, 6,066,195 Other Taxes, 910,883 2023 Tax Revenues by Source Exhibit E-6 112 ---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 1,605,561,502 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. Note: 2023 data is not available at this time. Because of this, 2013‐2022 has been presented. 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-7 113 ---PAGE BREAK--- General State Total Year of Maintenance Maintenance Bonded Direct and Levy and Operations and Operations Debt Total Overlapping 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 2023 7.390 0.00 12.400 ‐ 12.400 19.790 Schools PICKENS COUNTY, GEORGIA PROPERTY TAX RATES ‐ DIRECT AND OVERLAPPING (Per $1,000 of Assessed Value) LAST TEN FISCAL YEARS 7.220 7.222 7.950 7.883 7.846 7.779 7.613 7.489 7.438 7.390 6.80 7.00 7.20 7.40 7.60 7.80 8.00 8.20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Pickens County 10 Year Millage Rate Exhibit E-8 114 ---PAGE BREAK--- Fiscal Year Pickens County SPLOST Pickens County LOST Pickens Schools E‐SPLOST State Total Sales Tax Rate 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% 2023 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-9 115 ---PAGE BREAK--- Taxpayer Assessed Value Rank % of Total Assessment Assessed Value Rank % of Total Assessment J M Huber Corporation 46,526,289 1 2.13% 8,254,106 3 0.56% Imerys Marble Inc #41 29,660,032 2 1.36% 4,724,629 9 0.32% AT&T Mobility LLC 20,586,104 3 0.94% Amicalola EMC 19,048,422 4 0.87% 13,065,559 1 0.89% Georgia Power Company 17,034,847 5 0.78% 5,328,263 5 0.36% Imerys Marble Inc 9,068,324 6 0.41% 8,889,522 2 0.61% Big Canoe Property Owners 6,491,855 7 0.30% LGI Homes ‐ Georgia LLC 6,210,377 8 0.28% Georgia Transmission Corp 5,951,814 9 0.27% Eric S Zorn as Turstee of Walmart 5,322,893 10 0.24% 4,914,354 6 0.34% TNT Garland Mtn Enterprises LLC MLF Gateway Development LLC Forestar (USA) Real Estate Group Inc 7,954,188 4 0.54% Big Canoe Company LLC 4,732,397 8 0.32% 2573 LLC SpringBank LLC 4,807,758 7 0.33% Mountainside Manor LP 4,559,917 10 0.31% Community Bank of Pickens County SPP Land LLC Quality Rubber Total Assessment 2,188,615,425 $ 7.58% 1,465,092,676 $ 4.59% Source: Pickens County County Tax Commissioners Office 2023 PICKENS COUNTY, GEORGIA 2014 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND TEN YEARS AGO Exhibit E-10 116 ---PAGE BREAK--- Tax Levied for the Calendar Year Amount Percentage of Levy Dates used for previous col. Amount Percentage of Levy 2014 29,800,484 27,073,801 90.85% 2,726,681 01‐01‐15 to 12‐31‐21 29,800,482 100.00% 2015 29,943,739 26,697,300 89.16% 3,246,439 01‐01‐16 to 12‐31‐22 29,943,739 100.00% 2016 31,138,394 27,833,997 89.39% 3,304,254 01‐01‐17 to 12‐31‐23 31,138,251 100.00% 2017 31,289,407 28,735,432 91.84% 2,428,636 01‐01‐18 to 12‐31‐23 31,164,068 99.60% 2018 31,626,820 28,821,090 91.13% 2,728,620 01‐01‐19 to 12‐31‐23 31,549,710 99.76% 2019 32,462,333 29,585,548 91.14% 2,771,985 01‐01‐20 to 12‐31‐23 32,357,533 99.68% 2020 33,444,140 30,608,422 91.52% 2,741,621 01‐01‐21 to 12‐31‐23 33,350,043 99.72% 2021 34,245,236 31,511,813 92.02% 2,611,937 01‐01‐22 to 12‐31‐23 34,123,750 99.65% 2022 36,410,618 33,302,200 91.46% 2,833,750 01‐01‐23 to 12‐31‐23 36,135,950 99.25% 2023 37,960,833 34,996,824 92.19% ‐ 01‐01‐24 to 12‐31‐24 34,996,824 92.19% 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-11 117 ---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 12/31/2023 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 15 2017 ‐ ‐ ‐ 2,498 383 293 113 83 2018 ‐ ‐ ‐ 2,995 2,530 1,663 [PHONE REDACTED] ‐ ‐ ‐ 263 1,376 4,739 [PHONE REDACTED] ‐ ‐ ‐ ‐ ‐ 16,968 5,802 1,030 2021 ‐ ‐ ‐ ‐ ‐ ‐ 15,412 5,124 2022 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17,103 2023 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL 6,125 $ 2,855 $ 2,850 $ 6,531 $ 4,465 $ 23,878 $ 22,049 $ 23,767 $ Source: Pickens County Tax Commissioner Note: Information prior to 2016, not available. PICKENS COUNTY, GEORGIA TOTAL PROPERTY LIENS (FIFAs) LAST EIGHT FISCAL YEARS Exhibit E-12 118 ---PAGE BREAK--- Fiscal Year Notes from Direct Borrowing Leases Payable Subscriptions Payable Bonds Notes from Direct Borrowing Total Primary Government % of Personal Income Per Capita Population Personal Income 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 0.86% 449.41 33,216 52,304 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 ‐ ‐ 7,984,674 2,149,255 12,667,142 0.63% 368.77 34,350 58,572 2023 2,135,521 172,536 921,104 8,854,582 2,070,627 14,154,370 0.65% 393.52 35,969 60,616 PICKENS COUNTY, GEORGIA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Business‐Type Activities Governmental Activities Exhibit E-13 119 ---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 2,135,521 $ PICKENS COUNTY, GEORGIA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2023 (Unaudited) Exhibit E-14 120 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Assessed Value 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 $ 2,066,871 $ Debt Limit: 10% of assessed 136,950 135,871 136,290 138,485 141,088 145,115 152,641 160,556 182,110 206,687 Less: Debt applicable to debt limit ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Legal Debt Margin 136,950 $ 135,871 $ 136,290 $ 138,485 $ 141,088 $ 145,115 $ 152,641 $ 160,556 $ 182,110 $ 206,687 $ Note: Numbers are in thousands. PICKENS COUNTY, GEORGIA LEGAL DEBT MARGIN INFORMATION LAST TEN YEARS (dollars in thousands) Fiscal Year Exhibit E-15 121 ---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 2014 291 349 2.63 2,987 1,223 1,764 375 455 (80) 1,684 2015 298 478 0.87 2,095 1,442 653 326 306 20 673 2016 471 320 1.14 2,274 1,404 870 308 273 35 905 2017 483 263 1.03 2,406 1,606 800 305 336 (31) 769 2018 495 318 1.15 2,488 1,571 917 384 367 17 934 2019 548 176 1.33 2,622 1,758 864 733 634 99 963 2020 537 315 1.29 2,812 1,771 1,041 537 476 61 1,102 2021 578 290 0.96 2,987 2,246 741 741 647 94 835 2022 359 428 1.12 3,411 2,482 929 1,011 1,057 (46) 883 2023 288 610 0.79 3,438 2,814 624 887 801 86 710 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-16 122 ---PAGE BREAK--- Net Operating Fiscal Year Water Revenue Cost of Sales Personal Services Depreciation Total Expenses Income (loss) 2014 2,085 746 477 591 1,[PHONE REDACTED] 2,095 973 469 606 2,048 47 2016 2,274 871 533 621 2,[PHONE REDACTED] 2,406 1,021 585 628 2,[PHONE REDACTED] 2,488 993 578 661 2,[PHONE REDACTED] 2,622 1,096 662 670 2,[PHONE REDACTED] 2,812 1,041 730 751 2,[PHONE REDACTED] 2,987 1,170 1,076 786 3,032 (45) 2022 3,411 1,418 1,064 701 3,[PHONE REDACTED] 3,438 1,645 1,169 657 3,471 (33) Total 26,618 $ 10,974 $ 7,343 $ 6,672 $ 24,989 $ 1,629 $ PICKENS COUNTY, GEORGIA LAST TEN FISCAL YEARS (dollars in thousands) WATER DEPARTMENT OPERATING REVENUES/EXPENSES Water Revenue, 3,438 Cost of Sales, 1,645 Personal Services, 1,169 Depreciation, 657 Water Revenue/Expenses Water Revenue Cost of Sales Personal Services Depreciation Exhibit E-17 123 ---PAGE BREAK--- 2017 2018 2019 2020 2021 2022 2023 Gallons of water purchased 242,704 258,652 263,453 260,149 304,671 377,925 387,294 Gallons of water sold 186,641 213,745 208,272 204,518 267,575 322,870 327,631 Note: Information prior to 2017, not available. WATER DEPARTMENT GALLONS BOUGHT AND SOLD PICKENS COUNTY, GEORGIA LAST SEVEN YEARS (gallons in thousands) 0 50000 100000 150000 200000 250000 300000 350000 400000 [PHONE REDACTED] 2018 2019 2020 2021 2022 2023 Gallons in Thousands Gallons of Water Bought and Sold Number of Gallons of water Purchased Number of Gallons of water Sold Exhibit E-18 124 ---PAGE BREAK--- Customer Usage (Gal) Billed Amount Rank Usage (Gal) Billed Amount Rank Cherokee County Water 18,636 44,727 $ 1 9,758 22,932 $ 1 City of Fairmount 10,399 19,759 $ 2 4,670 8,893 $ 4 Pilgrims Pride 2,441 22,369 $ 3 3,591 25,765 $ 5 Georgia Stone Quarries 1,268 9,331 $ 4 Housing Authority 1,186 9,446 $ 5 1,361 10,658 $ 10 Arrairs of the Heart #2 902 8,515 $ 6 Foothills Financial 885 9,623 $ 7 1,628 13,217 $ 9 Royston LLC 865 9,343 $ 8 Rock Creek Manor #1 796 7,558 $ 9 Teaberry Ridge POA 690 6,602 $ 10 Big Canoe 7,812 18,865 $ 2 Bihun's Barbecue Black Crow Ventures 1,694 12,726 $ 8 City of Jasper #1 City of Jasper #2 5,691 9,228 $ 3 City of Jasper #3 Imerys 3,085 21,420 $ 7 Josh Gibbons Richard Bundy 3,113 20,718 $ 6 Tsitaga Farm 38,068.00 147,271 $ 27,973.40 132,596 $ Source: Pickens County Water Department 2017 2023 PICKENS COUNTY, GEORGIA WATER DEPARTMENT PRINCIPAL CUSTOMERS CURRENT YEAR AND SIX YEARS AGO (gallons in thousands) Exhibit E-19 125 ---PAGE BREAK--- LAST TEN FISCAL YEARS Personal Per Capita Estimated Income Personal Median School Unemployment Year Ended Population (in thousands) Income Age Enrollment Rate 12/31/2014 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 1,743,770 52,304 45.4 4,307 3.80% 12/31/2021 33,594 1,990,809 55,398 46.1 4,143 2.30% 12/31/2022 34,350 2,111,029 58,572 46.2 4,048 2.20% 12/31/2023 35,969 2,111,029 60,616 46.3 3,990 2.70% 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, Fred Economic Data, and Pickens County School District. Exhibit E-20 126 ---PAGE BREAK--- Employer Employees Rank % of Total County Employment Employees Rank % of Total County Employment Pickens County Schools 631 1 7.72% 612 1 3.94% Piedmont Mountainside Hospital 584 2 7.14% 535 2 3.44% Pickens County Board of Commiss 386 3 4.72% 326 3 2.10% Royston LLC 287 4 3.51% 280 4 1.80% Ingles 160 5 1.96% 128 5 0.82% Walmart 130 6 1.59% 127 6 0.82% Kroger 123 7 1.50% 124 7 0.80% Home Depot 120 8 1.47% 118 8 0.76% Huber Engineered Materials 107 9 1.31% 104 10 0.67% Amicalola EMC 106 10 1.30% 106 9 0.68% 2,634 $ 32.21% 2,460 $ 15.84% Source: Georgia Department of Labor Note: Information prior to 2021 not available PRINCIPAL EMPLOYERS PICKENS COUNTY, GEORGIA 2021 CURRENT YEAR AND TWO YEARS AGO 2023 Exhibit E-21 127 ---PAGE BREAK--- Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 33 31 33 32 34 67 38 37 40 41 Judicial 58 60 72 71 74 78 75 77 75 73 Public Safety 177 178 177 182 177 187 178 177 153 153 Public Works 40 42 42 46 43 47 53 57 60 60 Health and Welfare ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Culture and Recreatio 9 9 8 8 9 8 9 32 10 10 Housing and Developm 7 7 7 8 8 8 7 8 9 9 324 328 339 346 344 395 359 389 346 346 PICKENS COUNTY, GEORGIA FULL‐TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 41 73 153 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-22 128 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 23,664 23,499 23,499 Finance Accounts payable checks issued * N/A 4,151 4,695 4,275 4,664 4,754 5,623 4,657 5,068 4,948 Payroll checks issued * N/A 2,566 2,137 1,792 1,799 1,562 1,422 1,420 1,611 1,253 Payroll direct deposits issued * N/A 6,625 7,270 7,565 7,587 7,963 8,329 8,345 8,595 8,830 Human Resources New hires 66 107 130 88 107 81 74 127 208 57 Terminations 44 78 88 65 62 61 50 74 77 13 Employees eligible for health insurance plan 57 109 105 86 93 73 73 102 100 99 271 274 274 280 290 284 295 300 311 304 Tax Commissioner Real property parcels 21,040 20,889 20,635 20,549 20,515 20,484 20,460 20,477 20,482 21,696 Personal property acct. 3,026 2,880 2,914 2,801 2,825 2,675 2,839 3,023 3,015 3,371 Prebill Mobile Homes * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 1,338 Judicial Superior Court Total Criminal Filings * N/A * N/A 883 895 675 760 723 595 532 667 Total Domestic Filings * N/A * N/A 348 322 316 461 304 332 391 396 General Civil Cases Filed * N/A * N/A 216 218 185 257 277 254 303 332 Contracts * N/A * N/A 86 80 75 100 109 91 94 129 Torts (Combined) * N/A * N/A 40 0 12 38 56 31 42 44 Real Property * N/A * N/A 14 23 21 36 21 21 17 27 Civil Appeals * N/A * N/A 4 6 3 4 3 3 0 0 Magistrate Court Total Warrants * N/A * N/A * N/A * N/A * N/A 784 889 1,626 1,294 1,132 Misdemeanors * N/A * N/A * N/A * N/A * N/A 23 5 3 5 1 Civil Filings * N/A * N/A * N/A * N/A * N/A 718 572 861 897 910 County Ordinance Violations * N/A * N/A * N/A * N/A * N/A 290 175 136 109 124 Probate Court Marriage Licenses Issued * N/A * N/A * N/A * N/A * N/A 269 255 324 N/A 264 Firearm Licenses Issued * N/A * N/A * N/A * N/A * N/A 1,020 1,661 1,345 N/A 728 Juvenile Court Total Delinquency Cases * N/A * N/A * N/A * N/A * N/A 64 35 89 N/A 48 Dependency * N/A * N/A * N/A * N/A * N/A 44 36 41 N/A 42 CHINS * N/A * N/A * N/A * N/A * N/A 40 39 83 N/A 56 Public Safety Law Enforcement Physical Arrests 1,151 1,431 1,430 1,330 1,223 1,202 931 871 852 1,001 Emergency Medical Services EMS Dispatches * N/A * N/A * N/A * N/A 2,446 3,362 3,359 3,660 3,920 4,354 Emergency 911 All calls * N/A * N/A * N/A 28,847 59,520 28,962 29,380 27,595 26,705 21,420 Inbound calls * N/A * N/A * N/A * N/A * N/A * N/A 65,653 68,949 61,207 74,146 Outbound calls * N/A * N/A * N/A * N/A * N/A * N/A 19,358 22,653 17,640 19,932 Dispatched calls for police * N/A * N/A * N/A 15,548 14,983 14,106 13,748 14,375 13,482 14,681 Dispatched calls for fire * N/A * N/A * N/A 5,378 5,614 5,612 5,580 5,666 5,706 5,657 Average time to answer - E911 calls (in sec) * N/A * N/A * N/A 8 15 11 15 8 14 9 Call volume 0700hrs - 1900hrs - % * N/A * N/A * N/A 1 1 1 1 1 1 1 Call volume 1900hrs - 0700hrs - * N/A * N/A * N/A 0 0 0 0 0 0 0 Fire Emergency Medical Calls * N/A * N/A * N/A * N/A * N/A 3,951 3,993 4,063 4,118 3,797 Total Fire Calls * N/A * N/A * N/A * N/A * N/A 200 166 177 222 320 Motor Vehicle Accidents * N/A * N/A * N/A * N/A * N/A 371 361 407 412 426 Calls for Service * N/A * N/A * N/A * N/A * N/A 547 883 434 332 374 Other * N/A * N/A * N/A * N/A * N/A 1,086 762 931 900 768 Haz-Mat Calls * N/A * N/A * N/A * N/A * N/A 18 11 16 21 18 Emergency Management Agency EOC activations * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 1 2 Total hours EOC activated * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 12 30 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 Function/Program LAST TEN FISCAL YEARS PICKENS COUNTY, GEORGIA OPERATING INDICATORS BY FUNCTION/PROGRAM Unaudited Exhibit E-23, continued 129 ---PAGE BREAK--- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program Animal Control Received * N/A * N/A * N/A * N/A * N/A 137 497 401 636 486 Adopted * N/A * N/A * N/A * N/A * N/A 83 295 350 537 408 Returned to Owner * N/A * N/A * N/A * N/A * N/A 7 51 80 53 93 Euthanized * N/A * N/A * N/A * N/A * N/A 2 7 3 2 5 Owner intended Euthanasia * N/A * N/A * N/A * N/A * N/A 0 0 7 0 0 Complaints * N/A * N/A * N/A * N/A * N/A 79 88 80 172 350 Warnings * N/A * N/A * N/A * N/A * N/A 79 46 38 134 300 Citations * N/A * N/A * N/A * N/A * N/A 36 42 42 38 50 Animals Impounded * N/A * N/A * N/A * N/A * N/A 2 12 79 104 34 Public Works Roads and Bridges Road miles maintained 396 399 399 399 401 401 401 401 401 401 DOT LMIG resurfaced * N/A * N/A * N/A 7 6 7 5 6 6 6 Recycling Center Recycling revenue 293,681 301,995 356,193 387,653 419,291 396,049 694,082 583,066 556,992 640,925 Recycled materials in tons: Card Board * N/A * N/A * N/A * N/A * N/A * N/A 62 367 243 511 Mixed Paper * N/A * N/A * N/A * N/A * N/A * N/A * N/A 139 142 161 #1 Plastic * N/A * N/A * N/A * N/A * N/A * N/A * N/A 17 37 71 #2 Plastic * N/A * N/A * N/A * N/A * N/A * N/A * N/A 14 10 0 Aluminum Cans * N/A * N/A * N/A * N/A * N/A * N/A * N/A 18 1 8 Metal * N/A * N/A * N/A * N/A * N/A * N/A * N/A 151 146 165 Shredded Paper * N/A * N/A * N/A * N/A * N/A * N/A * N/A 20 20 0 Water Number of Gallons of water Purchased (in 1000s) * N/A * N/A * N/A 242,704 258,652 263,453 260,149 304,671 377,925 387,005 Number of Gallons of water Sold (in 1000s) * N/A * N/A * N/A 186,641 213,745 208,272 204,518 267,575 322,870 327,283 Culture and Recreation Parks Rental Income 56,019 38,907 33,575 34,497 41,137 46,358 25,054 39,145 37,898 34,380 Youth Sports Participants 694 736 780 887 885 911 912 1,138 1,202 1,289 Housing and Development Planning and Development Building Inspections Requested 1,143 995 1,534 1,964 1,913 2,199 2,110 2,293 2,493 2,592 Site Built Home Permits 50 62 111 127 122 145 184 231 235 226 Mobile Home Permits 33 26 32 31 48 33 53 48 64 49 Miscellaneous Permits 199 196 210 211 240 227 253 281 275 292 Commercial Permits 5 9 28 23 19 20 29 48 28 29 Renewal Permits 55 42 80 52 46 94 104 126 189 147 Commercial Plan Review * N/A * N/A * N/A * N/A 9 8 12 24 17 14 Certificate of Occupancy * N/A * N/A * N/A * N/A 251 234 258 308 334 318 Land Disturbance Permits * N/A * N/A * N/A * N/A 4 6 4 8 3 9 Access Encroachments * N/A * N/A * N/A * N/A 43 45 62 64 73 59 Business License - New * N/A * N/A * N/A * N/A 123 141 100 146 155 231 Business License - Renewal * N/A * N/A * N/A * N/A 605 612 546 647 647 743 Rezones & Conditional Use Permits * N/A * N/A * N/A * N/A 17 18 20 35 22 37 Variance Requests * N/A * N/A * N/A * N/A 0 0 0 0 2 0 Sign Permits * N/A * N/A * N/A * N/A 9 6 17 13 11 17 Code Enforcement Training Hours * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 71 107 Pubic Outreach * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 3 3 Miles Patrolled * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 5,896 19,263 Total Cases * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 267 451 Citations * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 30 Warnings * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 32 Warrant Felony * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 1 Warrant Misdemeanor * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A * N/A 1 Airport Number of Leased Hangers * N/A * N/A * N/A 32 32 55 55 87 88 91 Revenue from Hangers/Land Lease/Tie Downs * N/A * N/A * N/A 87,442 84,487 148,859 167,312 183,961 314,548 329,132 Gallons of JET-A Bought to Resale * N/A * N/A * N/A 22,978 30,548 61,205 30,504 76,006 76,032 53,225 Gallons a AVGAS Bought to Resale * N/A * N/A * N/A 40,515 30,686 86,372 65,972 67,774 42,260 47,822 Notes: * = Information not available = Covid; Baseball was cancelled and refunded - 552 Baseball participants before Covid = Computer system hacked, information not available Exhibit E-23, continued 130 ---PAGE BREAK--- Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental Buildings/Land 7 7 7 7 7 7 9 9 10 11 Acres of Greenspace 913 1195 1198 1200 1200 1206 1209 1209 1209 1209 Vehicles 6 7 7 7 7 7 7 8 9 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 87 88 90 91 93 94 94 95 97 100 Fire/EMS Fire Stations/Land 5 5 5 8 8 8 9 9 9 10 Vehicles 26 26 27 27 28 28 28 28 28 28 Pumpers 18 18 18 18 18 20 20 20 20 20 Emergency Sirens 15 15 15 15 15 15 15 15 15 15 Animal Rescue Building/Land 1 1 1 1 1 1 1 1 1 1 Vehicles 2 2 2 2 2 2 2 2 2 2 Public Works Buildings/Land 3 3 3 3 3 3 4 4 5 5 Street Miles 396 399 399 399 401 401 401 401 401 401 Bridges/Culverts 31 31 31 31 31 31 31 31 31 31 Vehicles 29 29 30 33 35 37 37 38 39 41 Machinery & Equipment 52 52 52 53 53 54 55 55 56 58 Water Vehicles 5 5 5 5 6 6 6 7 8 10 Water Tanks 7 7 7 7 7 7 7 7 7 7 Pump Station 6 6 6 6 6 7 7 7 7 7 Recycling Buildings/Land 2 2 2 2 2 2 3 4 4 4 Vehicles 1 1 1 1 1 1 2 2 2 2 Health Welfare Vehicles 1 1 1 1 1 1 1 1 1 1 Culture/Recreation Buildings/Land 3 3 3 3 5 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 3 3 3 3 3 17 17 17 17 23 Vehicles 2 2 2 2 2 2 2 2 3 3 Total Assets 1,632 1,919 1,926 1,936 1,946 1,973 1,983 1,988 1,997 2,014 Source: Pickens County Finance Department PICKENS COUNTY, GEORGIA CAPITAL ASSETS BY FUNCTION LAST TEN FISCAL YEARS Exhibit E-24 131 ---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, 2023, 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 14, 2024. 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 2023-001 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 2023- 002 through 2023-005 that we consider to be significant deficiencies. 132 ---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 2023-006. 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 14, 2024 133 ---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, 2023. 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, 2023. 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. 134 ---PAGE BREAK--- The risk of not detecting material noncompliance resulting from fraud is higher than 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 14, 2024 135 ---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 J23-8-138 $ 3,331 U.S. Department of Justice Passed through Criminal Justice Coordinating Council: Crime Victim Assistance 16.575 C22-8-076 88,897 C22-8-079 14,231 C22-8-044 98,468 201,596 Drug Court Discretionary Grant Program 16.585 Q19-8-001 93,319 J23-8-002 9,465 102,784 Bulletproof Vest Partnership Program 16.607 N/A 5,010 Total Department U.S. Department of Justice 309,390 U.S. Department of Transportation Passed through the Georgia Department of Transportation: Covid-19 Airport Improvement Program 20.106 T007834 120,958 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 GA-0013886 234,928 Passed through the Georgia Administrative Office of the Courts: COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 2022_ARPA_01 665,738 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 3,573,855 Total U.S. Department of Treasury 4,474,521 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended December 31, 2023 Total Federal PICKENS COUNTY, GEORGIA Exhibit F-1, continued 136 ---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, 2023 Total Federal PICKENS COUNTY, GEORGIA 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 E22-8-004 7,884 Passed through the Georgia of Human Services: MaryLee Allen Promoting Safe and Stable Families Program 93.556 42700-040C-PSSF-22-124 56,344 42700-040C-PSSF-00-110 17,992 74,336 Total U.S. Department of Health and Human Services 82,220 U.S. Department of Homeland Security Passed through the Georgia Emergency Management and Homeland Security Agency: National Dam Safety Program 97.041 EMW-2019-GR-00028 111,815 Total Federal Awards $ 5,102,235 See accompanying notes to the schedule of expenditures of federal awards and the schedule of findings and questioned costs. Exhibit F-1, continued 137 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended December 31, 2023 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. 138 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 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 139 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 Exhibit F-3, continued 2. Financial Statement Findings and Responses A. Current Year Audit Findings 2023-001 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. 2023-002 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 office of the Sheriff. 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. 140 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued A. Current Year Audit Findings (continued) 2023-002, 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. 2023-003 Condition: During audit procedures on journal entries, we noted that Accountability Court personnel are posting journal entries to the general ledger without approval. We noted 15 of 25 (60%) finance department journal entries did not have evidence of approval. We also noted 2 of 25 finance department journal entries lacked supporting documentation. 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: County 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. 2023-004 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. 141 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued A. Current Year Audit Findings (continued) 2023-004, continued 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. 2023-005 Condition: During testing of Recycling Center revenues, we noted that the Recycling Center does not utilize a point-of-sale system to record receipts. Criteria: Strong internal controls over the County’s cash receipt process should be in place to ensure that the County’s receipts are recognized and appropriate. Effect: Failure to properly record receipts exposes the County to a greater risk of loss due to fraud. Cause: Recycling Center does not have a point-of-sale system in place. Recommendation: The Recycling Center should implement an adequate point-of-sale system to ensure accurate transactional records. Management Response: Management concurs with this finding. The County will implement an adequate point-of-sale system at the Recycling Center. Action was taken immediately upon receipt of this comment from our auditors. 2023-006 Condition: In prior years, the County deposited grant proceeds used to finance portions of SPLOST projects in the General Fund. The balance of the excess funds is reported as an interfund receivable in the SPLOST fund. The County is making the scheduled payments to pay this balance in full over the next few 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 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. 142 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued B. Prior Year Audit Findings Follow-Ups 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. Not corrected 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. Not corrected 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. Not corrected 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. Corrected 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. Not corrected 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. Corrected 143 ---PAGE BREAK--- PICKENS COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2023 Exhibit F-3, continued 2. Financial Statement Findings and Responses, continued B. Prior Year Audit Findings Follow-Ups (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 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. 144 ---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 $ 6,342,120 $ 4,139,388 $ 10,481,508 Water and Sewer Facilities 1,110,000 1,110,000 251,999 359,552 611,551 Airport Debt Service 3,496,500 3,496,500 1,070,157 1,508,392 2,578,549 Capital Improvements Public Safety 2,960,000 2,960,000 503,989 112,829 616,818 Sheriff 2,960,000 2,960,000 1,312,205 707,806 2,020,011 Parks and Recreations 3,700,000 3,700,000 937,725 294,636 1,232,361 City of Jasper 5,002,400 5,002,400 2,591,981 1,172,940 3,764,921 City of Nelson 1,650,200 1,650,200 855,048 386,931 1,241,979 City of Talking Rock 81,400 81,400 42,177 19,086 61,263 $ 37,000,000 $ 37,000,000 $ 13,907,401 $ 8,701,560 $ 22,608,961 Roads Expenditures Financed by Intergovernmental Revenues 843,041 Total Expenditures and Transfers out SPLOST Capital Projects Fund $ 9,544,601 * 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. PICKENS COUNTY, GEORGIA SCHEDULE OF PROJECTS FINANCED WITH SPECIAL PURPOSE LOCAL OPTION SALES TAX For the year ended December 31, 2023 Original Current Current Exhibit G-1 145 DRAFT ---PAGE BREAK--- Grant Name Grant Period Contract Number DHS Operating Grant - Family Connection 07/01/22 to 06/30/23 42700-93-202200081 $ 52,500 $ 26,603 $ 26,603 $ 0 DHS Operating Grant - Family Connection 07/01/23 to 06/30/24 42700-93-202400075 52,500 25,694 25,694 12,939 Total $ 105,000 $ 52,297 $ 52,297 $ 12,939 PICKENS COUNTY, GEORGIA SCHEDULE OF COMPLETED STATE AWARDS EXPENDED GEORGIA DEPARTMENT OF HUMAN SERVICES For the year ended December 31, 2023 Amount Awarded State Revenues State Expenditures Amount Due from State Exhibit G-2 146

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