Document Thomson-Mcduffie_doc_00d3db6d0e

ANNUAL FINANCIAL REPORT MCDUFFIE COUNTY, GEORGIA YEAR ENDED DECEMBER 31, 2023 ---PAGE BREAK--- ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS Page INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 5 BASIC FINANCIAL STATEMENTS 19 Statement of Net Position 20 Statement of Activities 21 Balance Sheets – Governmental Funds 22 Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities 23 Statements of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 24 Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statements of Net Position – Proprietary Funds 26 Statements of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 27 Statements of Cash Flows – Proprietary Funds 28 Statement of Fiduciary Assets and Liabilities – Fiduciary Funds 29 Notes to Financial Statements 30 REQUIRED SUPPLEMENTARY INFORMATION 56 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – General Fund 57 Schedule of Net Pension Liability – ACCG Pension Plan for McDuffie County Employees 60 Schedule of Contributions – ACCG Pension Plan for McDuffie County Employees 61 Schedule of Proportionate Share of the Net Pension Liability 62 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS Page COMBINING AND INDIVIDUAL FUND STATEMENTS 63 Major Governmental Funds 64 Nonmajor Governmental Funds 65 Combining Balance Sheet – Nonmajor Governmental Funds 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 68 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Jail Fund 69 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Law Library Fund 70 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Juvenile Probation Fund 71 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Task Force Fund 72 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Hotel/Motel Tax Fund 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Emergency Telephone System Fund 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Landfill Surcharge Fund 75 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Wireless Emergency Telephone System Fund 76 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Forfeiture Fund 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – LMIG Fund 78 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Court 79 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Transportation Fund 80 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Multiple Grant Fund 81 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS Page Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – American Rescue Fund 82 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – CDBG Fund 83 Fiduciary Funds 84 Combining Balance Sheet – Fiduciary Funds 85 Combining Statement of Changes in Assets and Liabilities – Fiduciary Funds 86 SUPPLEMENTARY INFORMATION 88 Schedule of Special Purpose Local Option Sales Tax 2004-2008 89 Schedule of Special Purpose Local Option Sales Tax 2009-2014 90 Schedule of Special Purpose Local Option Sales Tax 2015-2020 91 Schedule of Special Purpose Local Option Sales Tax 2021-2026 92 Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants 93 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 95 Schedule of Expenditures of Federal Awards 98 Findings and Questioned Costs 99 ---PAGE BREAK--- (This page is intentionally left blank.) ---PAGE BREAK--- 3730 Executive Center Drive, Suite B www.bairdgroupcpa.com Tel: [PHONE REDACTED] Augusta, GA 30907 Fax: [PHONE REDACTED] 1 INDEPENDENT AUDITORS’ REPORT Board of Commissioners McDuffie County, Georgia Report on the Audit of the Financial Statements Opinions We have audited 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 McDuffie County, Georgia, as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. We did not audit the financial statements of the McDuffie County Health Department, a discretely presented component unit, whose statements reflect total assets and deferred outflows of $1,081,714 and total net position of $135,521 as of June 30, 2023, and total revenues of $709,645 for the year then ended. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the McDuffie County Health Department, is based on the report of other auditors. In our opinion, the accompanying 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 McDuffie County, Georgia, as of December 31, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (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 McDuffie County, Georgia and to meet our other 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 opinions. 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 McDuffie 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. ---PAGE BREAK--- 2 McDuffie County, Georgia Page 2 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 GAAS 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 for 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 GAAS 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 McDuffie 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 McDuffie 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 (on pages 5 through 18), the Schedule of the Net Pension Liability (on page 60), the Schedule of Contributions (on page 61), the Schedule of Proportionate Share of the Net Pension Liability (on page 61) and budgetary comparison information (on page 69 through 83) 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. ---PAGE BREAK--- 3 McDuffie County, Georgia Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise McDuffie County, Georgia's basic financial statements. The combining and individual nonmajor fund financial statements, the Schedule of Special Purpose Local Option Sales Taxes 2004-2008, Schedule of Special Purpose Local Option Sales Taxes 2009-2014, Schedule of Special Purpose Local Option Sales Taxes 2015-2020, Schedule of Special Purpose Local Option Sales Taxes 2021-2026 and Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants are presented for purposes of additional analysis and are 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 nonmajor fund financial statements, the Schedule of Special Purpose Local Option Sales Taxes 2004- 2008, Schedule of Special Purpose Local Option Sales Taxes 2009-2014, Schedule of Special Purpose Local Option Sales Taxes 2015-2020, Schedule of Special Purpose Local Option Sales Taxes 2021-2026 and Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2024, on our consideration of McDuffie County Georgia's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of McDuffie County, Georgia 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering McDuffie County Georgia's internal control over financial reporting and compliance. The Baird Audit Group, LLC Certified Public Accountants Augusta, Georgia June 28, 2024 ---PAGE BREAK--- 4 (This page is intentionally left blank.) ---PAGE BREAK--- 5 MANAGEMENT’S DISCUSSION AND ANALYSIS ---PAGE BREAK--- 6 MCDUFFIE COUNTY GOVERNMENT MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 McDuffie County’s management is pleased to provide this narrative discussion and analysis of the financial activities of the County for the fiscal year ended December 31, 2023. We encourage readers to consider the information presented in this analysis along with the complete financial statements and notes in the 2023 Audit Report to enhance their understanding of McDuffie County’s financial performance. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to McDuffie County Government’s financial statements which include government-wide and fund statements as well as notes to the financial statements. This report also contains other supplementary information in addition to the basic financials that may be of interest to the reader. McDuffie County’s basic financial statements are comprised of three components: The first component is government-wide financial statements, second is fund financial statements and third, notes to the financial statements. The Government-wide financial statements present an overall picture of McDuffie County’s financial position and results of operations. The Fund financial statements present financial information for McDuffie County’s major funds. The Notes to the financial statements provide additional information concerning McDuffie County’s finances that are not disclosed in the Government-wide or Fund financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a similar manner to a private-sector business. The Statement Of Net Position presents information on all the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The Statement Of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. The purpose of the design of the statement of activities is to show the financial reliance of the County’s distinct activities or functions on revenues provided by the County’s taxpayers. This statement also presents a comparison between direct expense and program revenues for each function of the government. Both statements attempt to distinguish functions of McDuffie County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). In the Statement of Net Position and the Statement of Activities, we divide the County into three kinds of activities:  Governmental activities—Most of the County’s basic services are reported here, including general government, public safety, highway and streets, health and welfare, culture and recreation, judicial system and economic development.  Business-type activities—The County charges a fee to customers to help cover the cost of certain services it provides. The County’s Solid Waste, Emergency Medical Services, Raysville and Big Hart Campground, Internal Shop and Lawn Care Services operations are reported here. ---PAGE BREAK--- 7  Component units-- The County includes two separate entities in our report, the Thomson-McDuffie Development Authority and the McDuffie County Health Department. The Development Authority serves to promote, pursue and implement economic development in the County. The Health Department is a public health department serving all citizens and non-citizens of McDuffie County needing the available services provided by the Health Department The government-wide financial statements can be found on pages 20-21 of this report. Fund Financial Statements 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. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Within the basic financial statements, the fund financial statements focus on the County’s most significant funds, or major funds, rather than on the government as a whole. A major fund is determined based on proportional relationships of individual funds with the entity. Major funds are separately reported while all others are aggregated into a single presentation. The data for nonmajor funds is reported in the latter sections of the audit report. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Like other state and local governments, McDuffie County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information present for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This will allow readers to better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains 35 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the major funds. McDuffie County reports five major governmental funds – General Fund, SPLOST VII, TSPLOST, and the American Rescue Plan. The basic governmental fund financial statements are presented on pages 22 through 25 of this report. Proprietary Funds Proprietary funds are used to account for the operations for which customers are charged a fee for services provided. These funds operate similar to commercial enterprises found in the private sector. Proprietary funds for the government are: Solid Waste, Emergency Medical Services, Big Hart and Raysville Campgrounds. The basic proprietary fund financial statements are presented on pages 26 through 28 of this report. ---PAGE BREAK--- 8 Fiduciary Funds Fiduciary Funds are used to account for resources held by the government for private organizations, other governments or other departments inside the government. The government is responsible for ensuring that these assets are used only for their intended purposes and are paid to the intended recipients. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County’s operation or programs. However, the accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 30-31 of this report. Notes to the Basic Financial Statements The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 30 of this report. Other Supplementary Information In addition to the basic financial statements and notes, this report also presents individual and combining nonmajor fund financial statements. These may be found beginning on page 56. Budgetary comparison schedules for the nonmajor funds are found in this section of the report. These schedules demonstrate compliance with the County’s budget. Government-wide Financial Analysis Net position may serve over time as useful indicators of a Government’s overall financial position to determine if the Government is improving or deteriorating. The Statement of Net Position presents information on all the Government’s assets/deferred outflows and liabilities/deferred inflows, with the difference being reported as net position. Government Assets exceed liabilities by $79 million for December 31, 2023 compared to $73 in December 31, 2022. Management has included comparative data which may be useful in comparing the current year and noting possible changes. The largest portion of McDuffie County’s net position, 66%, reflects its investment in capital assets such as land, buildings, roads and equipment. The County uses these capital assets to provide a variety of services to its citizens. The balance of unrestricted net position of 12% in 2023, the same as in 2022, may be used to meet the Government’s obligations to citizens and creditors. The following table provides a summary of the County’s governmental and business-type net position for fiscal year 2023 and 2022. ---PAGE BREAK--- 9 MCDUFFIE COUNTY NET POSITION DECEMBER 31, 2023 AND 2022 2023 2022 2023 2022 2023 2022 Assets Current and other assets 32,321,559 $ 29,422,511 $ 2,602,519 $ 2,518,200 $ 34,924,078 $ 31,940,711 $ Capital assets, net 53,027,950 48,609,038 4,637,775 3,403,393 57,665,725 $ 52,012,431 $ Total assets 85,349,509 78,031,549 7,240,294 5,921,593 92,589,803 83,953,142 Deferred Outflows of Resources Deferred outflows related to pension 2,484,136 2,591,941 - - 2,484,136 2,591,941 Total deferred outflows of resources 2,484,136 2,591,941 - - 2,484,136 2,591,941 Total assets and deferred outflows of resources 87,833,645 80,623,490 7,240,294 5,921,593 95,073,939 86,545,083 Liabilities Current and other liabilities 2,440,398 1,761,872 1,337,575 1,141,564 3,777,973 2,903,436 Long-term liabilities 4,509,896 4,283,762 113,736 141,856 4,623,632 4,425,618 Total liabilities 6,950,294 6,045,634 1,451,311 1,283,420 8,401,605 7,329,054 Deferred Inflows of Resources Deferred inflows related to pension 1,138,124 1,043,224 - - 1,138,124 1,043,224 Total deferred inflows of resources 1,138,124 1,043,224 - - 1,138,124 1,043,224 Total liabilities and deferred inflows of resources 8,088,418 7,088,858 1,451,311 1,283,420 9,539,729 8,372,278 Net Position Invested in capital assets, net related debt 53,084,136 48,691,156 4,637,775 3,403,393 57,721,911 52,094,549 Restricted - Capital Projects 16,195,791 15,134,456 - - 16,195,791 15,134,456 Restricted - Special Revenues 1,477,331 1,285,237 - - 1,477,331 1,285,237 Restricted - Debt Service - - - - - - Unrestricted 9,044,155 8,505,901 1,151,208 1,234,780 10,195,363 9,740,681 Total net position 79,801,413 $ 73,616,750 $ 5,788,983 $ 4,638,173 $ 85,590,396 $ 78,254,923 $ Totals Business-Type Activities Governmental Activities ---PAGE BREAK--- 10 Changes in Net Position Governmental Activities Governmental activities increased the Government’s net position by $6,184,663. Listed below are some of the key elements of this change: Governmental Revenues: The main source of revenues for governmental activities is sales tax, which represented 57% and property tax collections, which represented 30% of total governmental revenues. There were increases in revenue during 2023 for hotel taxes, motor vehicle taxes, and interest income. Governmental Functional Expenses: As reflected in the changes for net position, the Government increased its spending by $256,568, above the previous year. During 2023, expenditures were higher than the previous year due to inflation. Business-type activities: Business-type activities increased the Government’s net position by $1,150,810. This increase is partially due to the transfer of assets to the Emergency Medical Services fund in the amount of $821,099 and $431,890 transfer of assets to the Solid Waste Fund. Internal service funds for internal shop and lawn care reflected decreases of $1,600 and $1,686, respectively. ---PAGE BREAK--- MCDUFFIE COUNTY CHANGES IN NET POSITION 11 2023 2022 2023 2022 2023 2022 Revenues Program Revenues: Charges for Services 1,582,872 1,918,616 - - 1,582,872 1,918,616 Solid Waste 1,440,775 1,962,047 1,440,775 1,962,047 EMS - - 5,076,932 4,292,171 5,076,932 4,292,171 Campgrounds - - 322,472 339,198 322,472 339,198 Operating Grants & Contributions 4,418,184 3,201,994 103,256 23,315 4,521,440 3,225,309 Capital Grants & Contributions 3,164,798 2,096,570 10,250 9,800 3,175,048 2,106,370 Total Program Revenues 9,165,854 7,217,180 6,953,685 6,626,531 16,119,539 13,843,711 General Revenues: Property taxes 5,175,717 5,445,837 - - 5,175,717 5,445,837 Sales taxes 10,027,543 16,105,216 - - 10,027,543 16,105,216 Franchise taxes 84,162 88,570 - - 84,162 88,570 Intangible taxes - - - - Hotel/motel taxes 318,297 306,152 - - 318,297 306,152 Alcoholic beverage taxes 188,761 236,153 - - 188,761 236,153 Financial institution tax - - - - Real estate transfer tax - - - - Energy Excise Tax 264,160 332,946 - - 264,160 332,946 Timber tax 36,766 37,991 - - 36,766 37,991 Insurance premium tax - - 1,777,542 1,639,653 1,777,542 1,639,653 Interest income 430,155 102,115 1,058 9,697 431,213 111,812 Payments in lieu of taxes 44,942 41,944 - - 44,942 41,944 Licences and permits 255,217 319,110 1,817 1,817 257,034 320,927 Motor Vehicle tax 129,115 75,876 - - 129,115 75,876 Miscellaneous taxes 501,736 379,195 - - 501,736 379,195 Total General Revenues 17,456,571 23,471,105 1,780,417 1,651,167 19,236,988 25,122,272 Total Revenue 26,622,425 30,688,285 8,734,102 8,277,698 35,356,527 38,965,983 Expenses: General government 5,067,569 5,144,537 - - 5,067,569 5,144,537 Public Safety 5,808,686 5,462,469 - - 5,808,686 5,462,469 Public Works 4,655,448 4,021,852 - - 4,655,448 4,021,852 Health & welfare 453,896 360,175 - - 453,896 360,175 Solid Waste 1,836,344 2,032,136 1,836,344 2,032,136 EMS - - 6,708,137 5,643,165 6,708,137 5,643,165 Campgrounds - - 278,938 195,871 278,938 195,871 Internal shop - - 177,966 178,252 177,966 178,252 Lawn care services - - 91,675 76,373 91,675 76,373 Economic Development 368,571 1,380,535 - - 368,571 1,380,535 Culture & recreation 1,204,794 988,971 - - 1,204,794 988,971 Judicial 1,369,030 1,312,887 - - 1,369,030 1,312,887 Interest - - - - - - Total Expenses 18,927,994 18,671,426 9,093,060 8,125,797 28,021,054 26,797,223 Transfers Out (1,509,768) (998,209) 1,509,768 998,209 - - Change in Assets 6,184,663 11,018,650 1,150,810 1,150,110 7,335,473 12,168,760 Ending net position 79,801,413 73,616,750 5,788,983 4,638,173 85,590,396 78,254,923 Totals Governmental Activities Business-Type ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 12 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 13 Business-type activities Business-type activities for Raysville and Big Hart Campgrounds generated a profit of $33,958. These funds will be used for future maintenance and repairs at the facilities. The current rental rates per night for both facilities are $30 per night. The Solid Waste facility operated at a loss of $395,569 due to increased pricing in the contract for transport and disposal charges. The landfill surcharge made a transfer in the amount of $431,890 to the Solid Waste Fund to give an overall profit of $36,321. The illustration below compares the revenues and expenses for 2023 and 2022. BUSINESS-TYPE ACTIVITIES 2023 Emergency Medical Services was added in 2020 as a new business-type activity. The total expenses for the year was $6,708,137 and charges for services was $5,078,749. This fund received additional revenues in the amount of $1,797,918 for insurance premium tax, interest income and donations $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Revenue Expenses Raysville/Big Hart Campgrounds 2023 2022 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Revenue Expenses Solid Waste Operations 2023 2022 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 14 Financial Analysis of McDuffie County’s Funds As noted earlier, McDuffie County employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. In assessing McDuffie County’s financing requirements, unassigned fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year. The governmental fund types include the General Fund, Special Revenue Funds and Capital Projects Fund. The major funds are General Fund, SPLOST VII, TSPLOST and American Rescue Plan. As of December 31, 2023, McDuffie County governmental funds, which include the major funds and various other funds, reported combined fund balances of $29,464,741. The General Fund is the chief operating fund of the County. At December 31, 2023, total fund balance was $11,791,619. The fund balance of McDuffie County has increased by $658,542 since 2023. American Rescue Funds are another major fund and these are federal funds in which the County has received for designated purposes. Capital Project funds account for the construction of capital improvements with SPLOST VII being a major fund. The SPLOST Capital Project Fund reflects funds collected from the 1% Special Local Option Sales Tax and are expended for capital items that agree with the resolution approved by the voters. Because projects often bridge several years and involve design, land acquisition, and construction phases, expenditures may vary widely from year to year. Costs expended yearly in capital projects funds are added to the County’s construction-in-progress until the project is complete, and then depreciated over the assets’ useful lives. Transportation SPLOST is another major fund for the Government. This fund reflects revenues collected from the 1% Special Local Option Sales Tax that is designated for road construction and improvements. A Local Maintenance and Improvement Grant is awarded annually by the Georgia Department of Transportation. The Board of Commissioners submits a listing of recommendations along with the estimated costs to the State of Georgia. Once approved by the State, the grant is awarded and funds are $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Revenue Expenses Emergency Medical Services 2023 2022 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 15 disbursed to the County. Any additional funds needed are funded through SPLOST and T-SPLOST known as the Transportation Special Purpose Local Option Sales Tax. Proprietary Funds Proprietary fund statements provide the same information as in the business-type activities column of the government-wide statements, but in greater detail, and on a fund basis for enterprise funds. Enterprise Funds – At December 31, 2023, total net position amounted to $5,694,795 for enterprise funds compared to $4,638,173 at December 31, 2022. Net position changes are a result of operations, other non- operating revenues and expenses, capital contributions and donated assets and grants. Emergency Medical Services had an increase in net position of $4,483,980 included in that amount is $821,099 of assets purchased by SPLOST funds. Big Hart and Raysville Campgrounds had a profit of $33,958. The Solid Waste fund reflected a loss for the year of $395,569 due to increase pricing with the transportation and disposal costs. Solid Waste had $431,890 in assets purchased by the landfill surcharge fund; therefore, reflecting a $36,321 profit in the Solid Waste fund. The expenses for the facility decreased by 10% for the current year. Capital Assets and Debt Administration Capital Assets McDuffie County has invested $53,084,136 in capital assets (net of accumulated depreciation). Approximately 99% of this investment is related to governmental activities and includes infrastructure, land, buildings and machinery and equipment. As always McDuffie County continues to increase capital assets each year to provide the best services to the citizens of McDuffie County. Capital assets are discussed in more detail in Note 6 of the financial statements. The Citizens of McDuffie County voted to pass the Transportation Special Purpose Local Option Sales Tax for a second time. These additional revenues are used for the resurfacing and paving of roads in the community along with joint projects with other Counties. In 2015, Georgia Department of Transportation approved the expansion of the western bypass. This award was in the amount of $19,018,985. This expansion will be near the new University Hospital McDuffie facility and connect to the other completed portion of the western bypass. This project will be paid from the using T-SPLOST proceeds for joint projects with other Counties and should be completed in 2024. During 2021, the County began receiving collections from SPLOST VII, which is the new six-year SPLOST the voters approved in 2020. These funds will assist with many capital assets needed in the community. Capital assets held by the County at the end of the fiscal year are summarized as follows: ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 16 McDuffie County Capital Assets (net of accumulated depreciation) 2023 2022 2023 2022 2023 2022 Assets Land 3,588,475 $ 3,588,475 $ 319,649 $ 319,649 $ 3,908,124 $ 3,908,124 $ Buildings 39,431,395 39,377,416 2,752,669 2,696,561 42,184,064 42,073,977 Machinery and Equipment 9,485,822 8,878,449 5,589,828 4,189,373 15,075,650 13,067,822 Infrastructure 53,138,310 51,492,105 - - 53,138,310 51,492,105 Construction In Progress 17,377,771 12,449,012 823,215 332,551 18,200,986 12,781,563 Right of use - leased assets 56,186 82,118 - - 56,186 82,118 Total assets 123,077,959 115,867,575 9,485,361 7,538,134 132,563,320 123,405,709 Accumulated Depreciation (69,993,823) (67,176,419) (4,847,586) (466,614) (74,841,409) (67,643,033) Total assets 53,084,136 48,691,156 4,637,775 7,071,520 57,721,911 55,762,676 Governmental Activities Business-Type Activities Totals Listed below are some of the significant capital asset transactions which occurred in 2023:  Capital assets purchased during 2023 included five vehicles for the Sheriff’s Office totaling $260,215, one van for $34,854 and one truck for $37,552 to be used for County services, access control door system and security cameras $130,364, $79,800 for information technology system upgrades, $64,881 for a fueling station and other capital assets totaling $147,073.  The gym located at Sweetwater Park had the floors refinished totaling $39,100 which was funded by general fund and Splost VI.  A fence was installed at the Historical Rock House in the amount of $14,879.  Local maintenance and Improvement Grant funded a portion of road resurfacing in the amount of $508,772.  T-SPLOST funded a portion of road resurfacing in the amount of $862,311.  SPLOST VI funded a golf cart for the recreation department for $7,490, Emergency Telephone purchased $5,500 for lockers and the Jail fund spent $14,488 for equipment. ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 17 Debt Service McDuffie County is a very fiscally conservative government. Debt agreements are used for capital outlay items. McDuffie County continues to have an excellent credit rating with Dunn & Bradstreet and should have no conflicts that would affect the financing of any planned facilities or services. With the last bond issuance, Standard & Poor’s Rating Services rated McDuffie County’s general obligation bond at a Currently, the County does not have any outstanding notes or bonds. The State of Georgia has established a limit on the amount of general obligation debt that a unit of government can issue. The law limits the debt to 10% of the total assessed value of taxable property located with the government’s jurisdiction. The legal debt margin for McDuffie County is approximately $71 million. The following table displays all debt owed by McDuffie County for the current and prior years. This entire amount is backed by full faith and credit of the government. This table presents accrued compensated absences which reflect the liability the county owes the employees for vacation time. Also, the table includes postclosure cost for the landfill. This liability represents the cost for routine water monitoring at the facility. The landfill was closed in 1995 and the county must maintain the landfill for thirty years. The net pension liability listed in the chart below represents the amount the County needs to fund future pension payments. This liability was calculated by the actuarial valuation as of December 31, 2023. Note 8 of the financial statements provide a summary of the long-term liability transactions for the year ending 2023. McDuffie County Outstanding Debt Fiscal Years 2023 and 2022 2023 2022 2023 2022 2023 2022 Accrued compensated absences 525,652 $ 468,979 $ 15,549 $ 15,728 $ 541,201 $ 484,707 $ Net pension liability 3,953,990 3,758,597 - - 3,953,990 3,758,597 Lease liability 56,186 82,118 - - 56,186 82,118 Postclosure costs - - 98,187 126,128 98,187 126,128 Total debt 4,535,828 4,309,694 113,736 141,856 4,649,564 4,451,550 Governmental Activities Business-Type Activities Totals ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 18 Economic Factors and Rates McDuffie County Board of Commissioners continues to aggressively address the current and future needs of the County by focusing on sound financial management, the reserve policy, the use of current resources for capital expenditures and the development of capital improvements plans. With a growing population, the challenge is to continue to improve the quality of life by concentrating on the demands placed on other infrastructure such as providing residents in the County with water, sewer and many other quality services. McDuffie County continues to strive to seek new developers and industries within the community. During 2023, McDuffie County issued permits for a Dairy Queen, Tidal Wave Car Wash, Molly’s and Thomson Travel Center, both which are convenient stores, Smile Storage Facility and Thomson Retail Center, which will contain multiple businesses. All of these permits were for new developments. Advanced Auto manufacturing built an addition to their current facility. McDuffie County is currently experiencing an upward trend of economic growth, along with new housing developments. McDuffie County is making every effort to keep the unemployment rate low. The unemployment rate as of December, 2023 was 4.2% compared to December, 2022 of 4.1%. Budget Highlights for the Fiscal Year Ending December 31, 2023  The County was able to use the same millage rate as the previous budget year to balance the 2023 budget.  Big Hart and Raysville Campgrounds continues to be a tourist attraction for those wanting to enjoy the lake and outdoors with approximately 10,749 reservations made during 2023.  McDuffie County received American Rescue Plan Act Funds in the amount of $4,139,606, and a Broadband Infrastructure Grant in the amount of $3,817,35. These funds have been allocated for a county-wide broadband project. This project was included in the 2023 budget and is expected to be completed in 2024. Request for Information This financial report is designed to provide a general overview of McDuffie County Government’s finances for anyone interested in our County’s finances. Questions concerning this report or any requests for additional information may be addressed to the McDuffie County Board of Commissioners, 210 Railroad Street, Thomson, GA 30824, and [PHONE REDACTED] or at our Website: www.thomson-mcduffie.gov. ---PAGE BREAK--- 19 BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF NET POSITION DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 20 Governmental Business-type Development Health Activities Activities Total Authority Department Assets Cash and cash equivalents 27,278,756 $ 626,421 $ 27,905,177 $ 2,226,400 $ 592,965 $ Investments - - - - - Receivables Taxes 1,241,954 - 1,241,954 - - Accounts 626,066 1,933,390 2,559,456 876,016 8,542 A/R-Dept. of Public Health - - - - 27,228 Intergovernmental 1,699,946 - 1,699,946 - - Due from other funds 1,246,133 20,250 1,266,383 - - Due from external parties 228,704 - 228,704 - - Inventory - 22,458 22,458 - - Right of use - asset - - - - - Capital assets not being depreciated: Construction in progress 17,377,771 823,215 18,200,986 - - Land 3,588,475 319,649 3,908,124 4,764,925 - Capital assets (net of accumulated depreciation) Buildings and improvements 22,260,265 1,609,367 23,869,632 1,521,304 - Furniture, fixtures, and equipment 2,332,129 1,885,544 4,217,673 7,808 9,393 Infrastructure 7,469,310 - 7,469,310 - - Right of use - leased assets 56,186 - 56,186 - - Total assets 85,405,695 7,240,294 92,645,989 9,396,453 638,128 Deferred Outflows of Resources Deferred outflows related to pension 2,484,136 - 2,484,136 - 443,586 Total deferred outflows of resources 2,484,136 - 2,484,136 - 443,586 Total assets and deferred outflows of resources 87,889,831 7,240,294 95,130,125 9,396,453 1,081,714 Liabilities Accounts payable 1,514,612 729,461 2,244,073 - 5,026 A/P-DPH - - - - - Accrued liabilities 172,444 69,141 241,585 - - Due to other funds 727,410 538,973 1,266,383 - - Noncurrent liabilities Due within one year Bond payable - - - - - Note payable - - - 64,998 - Lease obligation current 25,932 - 25,932 - - Due in more than one year Note payable - - - 181,720 - Bond payable - - - - - Lease obligation non - current 30,254 - 30,254 - - Closure and post closure costs payable - 98,187 98,187 - - Compensated absences payable 525,652 15,549 541,201 - 61,561 Net OPEB liability - - - - (28,231) Net Pension liabilities 3,953,990 - 3,953,990 - 840,485 Total liabilities 6,950,294 1,451,311 8,401,605 246,718 878,841 Deferred Inflows of Resources Deferred inflows related to pension 1,138,124 - 1,138,124 - 67,352 Total deferred inflows of resources 1,138,124 - 1,138,124 - 67,352 Total liabilities and deferred inflows of resources 8,088,418 1,451,311 9,539,729 246,718 946,193 Net Position Net investment in capital assets 53,084,136 4,637,775 57,721,911 6,047,319 9,393 Restricted for: Capital projects 16,195,791 - 16,195,791 - - Special revenues 1,477,331 - 1,477,331 - - Debt service - - - - - Unrestricted 9,044,155 1,151,208 10,195,363 3,102,416 126,128 Total net position 79,801,413 $ 5,788,983 $ 85,590,396 $ 9,149,735 $ 135,521 $ Primary Government Component Units ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 21 Operating Capital Charges for Grants and Grants and Governmental Business-type Development Health Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Authority Department Primary government: Governmental activities: General government 5,067,569 $ 560,317 $ 4,418,184 $ 3,164,798 $ 3,075,730 $ - $ 3,075,730 $ - $ - $ Public safety 5,808,686 - - - (5,808,686) - (5,808,686) - - Public works 4,655,448 - - - (4,655,448) - (4,655,448) - - Health and welfare 453,896 - - - (453,896) - (453,896) - - Culture and recreation 1,204,794 86,907 - - (1,117,887) - (1,117,887) - - Economic development 368,571 151,633 - - (216,938) - (216,938) - - Judicial 1,369,030 784,015 - - (585,015) - (585,015) - - Total governmental activities 18,927,994 1,582,872 4,418,184 3,164,798 (9,762,140) - (9,762,140) - - Business-type activities: Solid Waste 1,836,344 1,440,775 - - - (395,569) (395,569) - - EMS 6,708,137 5,076,932 103,256 10,250 - (1,517,699) (1,517,699) - - Big Hart & Raysville Campgrounds 278,938 322,472 - - - 43,534 43,534 - - Internal Shop 177,966 - - - - (177,966) (177,966) - - Lawn care services 91,675 - - - - (91,675) (91,675) - - Total business-type activities 9,093,060 6,840,179 103,256 10,250 - (2,139,375) (2,139,375) - - Total primary government 28,021,054 $ 8,423,051 $ 4,521,440 $ 3,175,048 $ (9,762,140) (2,139,375) (11,901,515) - - Component units: Development Authority 344,938 $ 593,027 $ 3,750 $ - $ 251,839 - Health Department 817,866 157,258 552,315 - - (108,293) Total component units 1,162,804 $ 750,285 $ 556,065 $ - $ 251,839 (108,293) General revenues: Property taxes 5,175,717 - 5,175,717 - - Sales taxes 10,027,543 - 10,027,543 - - Franchise taxes 84,162 - 84,162 - - Insurance premium tax - 1,777,542 1,777,542 - - Hotel/motel taxes 318,297 - 318,297 - - Motor vehicle tax 129,115 - 129,115 - - Alcoholic beverage taxes 188,761 - 188,761 - - Excise tax 264,160 - 264,160 - - Timber tax 36,766 - 36,766 - - Licences and permits 255,217 1,817 257,034 - - Miscellaneous taxes 501,736 - 501,736 - - Payments in lieu of taxes 44,942 - 44,942 - - Interest - unrestricted 430,155 1,058 431,213 73,473 72 Total general revenues 17,456,571 1,780,417 19,236,988 73,473 72 Asset transfers - - Transfers (1,509,768) 1,509,768 - - - Change in net position 6,184,663 1,150,810 7,335,473 325,312 (108,221) Net position, beginning of year 73,616,750 4,638,173 78,254,923 8,824,423 243,742 Net position, end of year 79,801,413 $ 5,788,983 $ 85,590,396 $ 9,149,735 $ 135,521 $ Component Units Primary Government Net Revenue Expense) and Changes in Net Position Program Revenues ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA BALANCE SHEETS GOVERNMENTAL FUNDS DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 22 Other Total Governmental Governmental General SPLOST VII TSPLOST American Rescue Plan Funds Funds Cash and cash equivalents 10,560,999 $ 7,955,070 $ 164,577 $ 4,415,307 $ 4,182,803 $ 27,278,756 $ Investments - - - - - - Receivables Property taxes, net allowance 819,871 - - - - 819,871 Sales tax 100 421,983 - - - 422,083 Other 466,237 - - - 159,829 626,066 Due from other funds 1,104,645 - - - 141,488 1,246,133 Intergovernmental receivables 15,754 - 1,571,559 - 112,633 1,699,946 Due from external parties 228,704 - - - - 228,704 Total assets 13,196,310 $ 8,377,053 $ 1,736,136 $ 4,415,307 $ 4,596,753 $ 32,321,559 $ Liabilities Accounts payable 665,977 $ 679,659 $ 70,605 $ 100 $ 98,271 $ 1,514,612 $ Accrued liabilities 154,994 - - - 17,450 172,444 Dferred income - - - - - - Due to other funds 141,368 - 416,159 300 169,583 727,410 Total liabilities 962,339 679,659 486,764 400 285,304 2,414,466 Deferred inflows of resources Unavailable revenues - property taxes 442,352 - - - - 442,352 Total deferred inflows 442,352 - - - - 442,352 Fund Balances Restricted for: Capital projects - 7,697,394 1,249,372 4,414,907 2,834,118 16,195,791 Special revenues - - - - 1,477,331 1,477,331 Debt service - - - - - - Unassigned 11,791,619 - - - - 11,791,619 Total fund balances 11,791,619 7,697,394 1,249,372 4,414,907 4,311,449 29,464,741 Total liabilities, deferred inflows of resources and fund balances 13,196,310 $ 8,377,053 $ 1,736,136 $ 4,415,307 $ 4,596,753 $ 32,321,559 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES ASSETS ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 23 Total fund balances - governmental funds 29,464,741 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. These assets consist of: Construction in process 17,377,771 Land 3,588,475 Infrastructure 53,138,310 Buildings and improvements 39,431,395 Furniture, fixtures, and equipment 9,485,822 Right of use - lease assets 56,186 Accumulated depreciation (69,993,823) Total capital assets 53,084,136 Some revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds. 442,352 The net pension liability is not due and payable in the current period and, therefore, it and the related deferred outflows of resources and deferred inflows of resources are not reported in the funds. (2,607,978) Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the funds General obligations (56,186) Compensated absences (525,652) Total long-term liabilities (581,838) Net position of governmental activities 79,801,413 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS DECEMBER 31, 2023 The notes to the financial statements are an integral part of this financial statement. 24 Other Total Governmental Governmental General SPLOST VII TSPLOST American Rescue Plan Funds Funds REVENUES Taxes 10,628,410 $ 4,563,976 $ 1,260,209 $ - $ 318,604 $ 16,771,199 $ Licenses and permits 255,217 - - - - 255,217 Intergovernmental 2,361,065 - 2,738,144 - 2,051,574 7,150,783 Fines and forfeitures 686,687 - - - 97,328 784,015 Charges for services 550,097 - - - 10,220 560,317 Contributions and donations from private sources 5,545 - - - - 5,545 Rentals 86,907 - - - - 86,907 Other revenue 64,307 - - - 87,326 151,633 Other financing sources - - - - - - Interest 213,863 312,672 20,107 215,825 94,342 856,809 Total revenues 14,852,098 4,876,648 4,018,460 215,825 2,659,394 26,622,425 EXPENDITURES Current expenditures: General government 4,114,733 100,055 1,818 - - 4,216,606 Public safety 4,274,081 62,447 - - 945,187 5,281,715 Public works 1,353,791 139,357 399,179 - 657,057 2,549,384 Health and welfare 385,202 - - 190 9,218 394,610 Culture and recreation 1,088,861 - - - - 1,088,861 Judicial 1,355,169 - - - 13,861 1,369,030 Housing and development 82,629 3,750 - - 282,192 368,571 Other 547,524 - - - 702 548,226 Capital outlay: General government 312,571 - - - - 312,571 Public safety 260,215 - - - 19,988 280,203 Judicial - - - - - - Health and welfare 36,785 - - - - 36,785 Culture and recreation 65,843 - - - 48,436 114,279 Public works 64,881 1,572,470 4,474,235 - 528,259 6,639,845 Economic development - - - - - - Debt service: Principal - - - - - - Interest - - - - - - Total expenditures 13,942,285 1,878,079 4,875,232 190 2,504,900 23,200,686 Excess (deficiency) of revenues over expenditures 909,813 2,998,569 (856,772) 215,635 154,494 3,421,739 OTHER FINANCING SOURCES (USES) Transfer in 95,073 - - - 189,740 284,813 Transfer out (346,344) (1,333,054) - - (115,183) (1,794,581) Total other financing sources (uses) (251,271) (1,333,054) - - 74,557 (1,509,768) CHANGE IN FUND BALANCES 658,542 1,665,515 (856,772) 215,635 229,051 1,911,971 FUND BALANCES, BEGINNING OF YEAR 11,133,077 6,031,879 2,106,144 4,199,272 4,082,398 27,552,770 FUND BALANCES, END OF YEAR 11,791,619 $ 7,697,394 $ 1,249,372 $ 4,414,907 $ 4,311,449 $ 29,464,741 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA RECONCILIATION OF THE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 25 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - governmental funds 1,911,971 $ Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities, the costs of capital assets are allocated over their estimated useful lives as depreciation expense. For the current year, these amounts were: Capital outlay 7,383,682 Depreciation expense (2,970,007) Net change in capital assets 4,413,675 In the statement of activities, the gain or loss on disposal of capital assets is reported, whereas in the governmental funds, the proceeds from the sale of capital assets increase financial resources. Cost of capital assets (173,298) Accumulated depreciation 152,603 Net book value (20,695) Because some revenues will not be collected for several months after the County's fiscal year end, they are not considered "available" revenues and are deferred in the governmental funds. 390,669 The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, the repayment of the principal of long- term debt consume the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Net change in debt (56,186) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Changes in McDuffie's proportionate share of the net pension liability, deferred outflows of resources, and deferred inflows of resources for the current year are not reported in the governmental funds but are reported in the Statement of Activities (398,098) Compensated absences (56,673) (454,771) Change in net position of governmental activities 6,184,663 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 26 Big Hart & Raysville Solid Waste Lawn Care EMS Campgrounds Fund Internal Shop Services Total Current assets Cash 20,663 $ 576,567 $ 29,191 $ - $ - $ 626,421 $ Accounts receivable 1,885,782 - 47,608 - - 1,933,390 Due from other funds - 20,250 - - - 20,250 Inventory 22,458 - - - - 22,458 Total current assets 1,928,903 596,817 76,799 - - 2,602,519 Noncurrent assets Capital assets not being depreciated: Construction in progress - - 823,215 - - 823,215 Land 6,758 - 312,891 - - 319,649 Capital assets (net of accumulated depreciation) Buildings and improvements 1,554,043 - 55,324 - - 1,609,367 Furniture, fixtures, and equipment 1,825,905 32,753 26,886 - - 1,885,544 Total noncurrent assets 3,386,706 32,753 1,218,316 - - 4,637,775 Total assets 5,315,609 $ 629,570 $ 1,295,115 $ - $ - $ 7,240,294 $ Liabilities Current liabilities Accounts payable 553,011 20,704 141,778 8,218 5,750 729,461 Due to other funds 191,576 - 346,880 - 517 538,973 Accrued liabilities 87,042 786 3,227 1,895 1,238 94,188 Deferred revenues - 69,141 - - - 69,141 Total current liabilities 831,629 90,631 491,885 10,113 7,505 1,431,763 Noncurrent liabilities Compensated absences - 182 15,367 - - 15,549 Closure and post closure costs payable - - 98,187 - - 98,187 Total noncurrent liabilities - 182 113,554 - - 113,736 Total liabilities 831,629 90,813 605,439 10,113 7,505 1,545,499 Net Position Net investment in capital assets 3,386,706 32,753 1,218,316 - - 4,637,775 Restricted - - - - - - Unrestricted 1,097,274 506,004 (528,640) (10,113) (7,505) 1,057,020 Total net position 4,483,980 538,757 689,676 (10,113) (7,505) 5,694,795 Total liabilties and net position 5,315,609 $ 629,570 $ 1,295,115 $ - $ - $ 7,240,294 $ Business-type Activities - Enterprise Funds ASSETS LIABILITIES AND NET POSITION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 27 Big Hart & Solid Raysville Waste Lawn Care EMS Campgrounds Fund Internal Shop Services Total OPERATING REVENUES Charges for services 5,078,749 $ 322,472 $ 1,440,775 $ - $ - $ 6,841,996 $ Total operating revenues 5,078,749 322,472 1,440,775 - - 6,841,996 OPERATING EXPENSES Personnel services 4,146,619 54,685 289,813 - - 4,491,117 Operations 2,001,443 210,189 1,537,864 177,966 91,675 4,019,137 Depreciation 560,075 14,064 8,667 - - 582,806 Total operating expenses 6,708,137 278,938 1,836,344 177,966 91,675 9,093,060 Operating income (1,629,388) 43,534 (395,569) (177,966) (91,675) (2,251,064) NON-OPERATING REVENUES (EXPENSES) Interest income 1,058 - - - - 1,058 Insurance premium tax 1,777,542 - - - - 1,777,542 Grants 9,068 - - - - 9,068 Contributions and donations from private sources 10,250 - - - - 10,250 Total non-operating revenues (expenses) 1,797,918 - - - - 1,797,918 Income (loss) before capital contributions and transfers 168,530 43,534 (395,569) (177,966) (91,675) (453,146) Capital contributions - - - - - - Transfers in (out) 821,099 (9,576) 431,890 176,366 89,989 1,509,768 Change in net position 989,629 33,958 36,321 (1,600) (1,686) 1,056,622 NET POSITION, BEGINNING OF YEAR 3,494,351 504,799 653,355 (8,513) (5,819) 4,638,173 NET POSITION, END OF YEAR 4,483,980 $ 538,757 $ 689,676 $ (10,113) $ (7,505) $ 5,694,795 $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 28 Big Hart & Raysville Solid Waste Lawn Care EMS Campgrounds Fund Internal Shop Services Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 3,886,290 302,220 1,393,167 - - 5,581,677 Payments to suppliers (1,256,856) (137,025) (1,228,997) (176,366) (89,989) (2,889,233) Payment to employees (4,146,619) (54,685) (289,813) - - (4,491,117) Net cash provided (used) by operating activities (1,517,185) 110,510 (125,643) (176,366) (89,989) (1,798,673) CASH INFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interest Income (expense) - - - - - - Cash received from property and other taxes 2,639,680 (9,576) 431,890 176,366 89,989 3,328,349 Net cash provided (used) by provided by noncapital financing activities 2,639,680 (9,576) 431,890 176,366 89,989 3,328,349 CASH INFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Construction of capital assets - - (490,664) - - (490,664) Net cash provided (used) by capital and related financing activities - - (490,664) - - (490,664) CASH OUTFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (1,326,523) - (59,724) - - (1,386,247) Net cash provided (used) by capital and related financing activities (1,326,523) - (59,724) - - (1,386,247) NET CASH PROVIDED BY INVESTING ACTIVITIES - - - - - - Net increase (decrease) in cash (204,028) 100,934 (244,141) - - (347,235) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 224,691 475,633 273,332 - - 973,656 CASH AND CASH EQUIVALENTS, END OF YEAR 20,663 $ 576,567 $ 29,191 $ - $ - $ 626,421 $ Reconciliation of net operating income (loss) to net cash provided (used) by operating activities: Operating income (1,629,388) $ 43,534 $ (395,569) $ (177,966) $ (91,675) $ (2,251,064) $ Adjustments to reconcile net operating income (loss) to net cash provided by operating activities: Depreciation 560,075 14,062 8,667 - - 582,804 Change in accounts receivable (499,852) (20,250) 78,508 - - (441,594) Change in accounts payable 36,531 75,648 147,943 1,600 1,618 263,340 Change in accrued postclosure - - (27,941) - - (27,941) Change in accrued liabilities 25,466 (2,484) 62,749 - 68 85,799 Inventory (10,017) - - - - (10,017) Change in compensated absences - - - - - - Total adjustments 112,203 66,976 269,926 1,600 1,686 452,391 Net cash provided (used) by operating activities (1,517,185) $ 110,510 $ (125,643) $ (176,366) $ (89,989) $ (1,798,673) $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS DECEMBER 31, 2023 The notes to the financial statements are an integral part of this statement. 29 Custodial Funds Other ASSETS Cash and cash equivalents 3,600,639 $ Total assets 3,600,639 $ Net Position Resctricted for individuals, organizations, other governments 3,600,639 $ Total liabilities and Net Position 3,600,639 $ . ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Introduction The financial statements of McDuffie County, Georgia (the County) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. As permitted by accounting principles generally accepted in the United States of America, the County has elected to apply only applicable Financial Accounting Standards Board (FASB) Statements and Interpretations issued on or before November 30, 1989, that do not contradict GASB pronouncements in its accounting and reporting practices for its government-wide and proprietary operations. The County’s more significant accounting policies are described in the following: B. The Financial Reporting Entity McDuffie County, Georgia, (the County), is located in the Central Savannah River Area of Georgia, west of Augusta, Georgia. It was created from Columbia and Warren counties in 1872, the one-hundred thirty-second county created in Georgia. The County was named for George McDuffie, who was born in Georgia, served as governor and senator from South Carolina, and was a notable orator throughout the South. The County operates under an elected Commission, appointed manager, form of government. The accompanying summary of the County’s more significant accounting policies is presented to assist the reader in interpreting the financial statements and other data in this report. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. These policies conform to accounting principles generally accepted in the United States of America as applicable to governmental units. A board of five elected County Commissioners (the Board) governs McDuffie County, Georgia. They appoint a County Manager who is the Chief Administrative Officer and is responsible for day to day operations and implementation of the policy decisions made by the Board. As required by generally accepted accounting principles, these financial statements present McDuffie County, Georgia, (the primary government) and its component units. The component units are included in the County’s reporting entity because of the significance of their operational or financial relationships with the County. C. Individual Component Unit Disclosures Development Authority of McDuffie County and the City of Thomson - The Authority was created for the purpose of promoting and developing trade, commerce, industry, and employment opportunities within the County. A Board of Directors appointed by the County Board of Commissioners governs the Authority. The Authority is funded and administered by the County. Separate financial statements have not been prepared for the Development Authority of McDuffie County and the City of Thomson. McDuffie County Health Department – The Health Department receives funding from McDuffie County. The McDuffie County Board of Commissioners appoints Board members. The McDuffie County Board of Health has a June 30, year-end, and the financial statements included herein are as of and for the year ended June 30, 2023. Separate financial statements have been issued, and are available from the McDuffie County Board of Health. The address is: McDuffie County Health Department, 300 Greenway Street, Thomson, GA 30824. Discretely presented component units are presented in separate columns on the government-wide statement of net position and statement of activities to emphasize legal separation from the County. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Certain County elected officials collect and disburse taxes, fees, fines, etc. Separate records of accountability are maintained for such transactions, which are recorded in the agency funds of the County. Receipts transferred from these funds to the County’s General Fund, and Special Revenue Funds are included as revenue in these funds. Operating costs for these officials are included as expenditures in the General Fund. These elected officials are: Tax Commissioner Probate Court Judge Magistrate Court Judge Clerk of Superior Court Sheriff D. Basic Financial Statements The basic financial statements consist of the following: Government-wide financial statements Fund financial statements Notes to the basic financial statements Government-wide 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. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the County and for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with the program or function of the County’s governmental activities. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include fees and charges paid by the recipients of goods or services offered by the programs and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund financial statements – The fund financial statements provide information about the County’s funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented, although the latter is excluded from the government-wide financial statements. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. E. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements and the fiduciary fund statements. 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 have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The County considers all revenues available if they are collected within sixty days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Sales taxes collected and held by the state at year end on behalf of the County are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the County and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The accounts of the County are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with financial related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. The County reports the following major governmental funds: General Fund – The General Fund is the general operating fund of the County. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, state grants, and various other taxes and licenses. The primary expenditures are for general administration, public safety, highways and streets, health and welfare, and culture and recreation. TSPLOST Fund- The TSPLOST Fund is used to account for the construction of transportation related projects funded by TSPLOST. SPLOST VII Fund - The SPLOST VII Fund is used to account for proceeds from SPLOST VII. American Rescue Plan- to account for the activities related projects funded by COVID grants. The County reports the following major enterprise funds: EMS Fund - EMS Fund is used to account for emergency medical services Big Hart & Raysville Campgrounds Fund– The Big Hart and Raysville Campgrounds Fund is used to account for the cost of operating and maintaining the campsites. Solid Waste Fund – The Solid Waste Fund is used to account for the cost of operating and maintaining the landfill facility. Lawn Care Services – to account for lawn care services rendered internally instead of outsourcing those services. Internal Shop- to allocate the shop costs to all departments. Additionally, the County reports the following fund types: Fiduciary Funds – Fiduciary Funds are custodial in nature and do not involve the measurement of operating results. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. These funds account for assets held by the County in an agency capacity for individuals and other government units. Fiduciary funds include all trust funds which account for assets held by the County as a trustee for individuals or other government units. The accounting used for fiduciary funds is accrual basis, much like that used for proprietary funds. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The County has adopted GASB Statement No. 20, Accounting and Financial Reporting of Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting and has elected to follow GAAP prescribed by GASB and all Financial Accounting Standard Board (FASB) standards issued prior to November 30, 1989. Subsequent to this date, the County accounts for its proprietary funds as presented by GASB. Proprietary funds are accounted for using the accrual basis of accounting and distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues are charges to customers for sales and services. Operating expenses for enterprise funds include costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as they are needed. F. Budgets and Budgetary Accounting Annual appropriated budgets are adopted by the Board of Commissioners for the General, Debt Services and Special Revenue Funds on a total revenues and total expenditures basis. The following are the statutory procedures followed by the Board in establishing a budget: 1. Prior to July 20, the County Manager receives budget requests from County Departments for the fiscal year commencing January 1. 2. Prior to the first Wednesday in August, the County Manager presents the proposed budget to the Board of Commissioners. 3. The Board of Commissioners holds public hearings. 4. Prior to October 20, the Board of Commissioners formally adopts the budget for the fiscal year commencing January 1. 5. The legal level of budgetary control is the departmental level. 6. All appropriations lapse at year end. 7. The operating budgets originally adopted may be revised or amended throughout the year as presented below: a. The County Manager may authorize transfers (revisions) within the departments, except for substantive salary amendments. b. The Board approves transfers (amendments) between departments or between funds. c. Increases or decreases in the total fund appropriation are by authority of the Board. d. Increases or decreases within any department are by authority of the Board. e. Appropriation of fund balances in excess of established reserve requirements are by authority of the Board. The County’s legally adopted budget is on the cash basis. The County adopted fiscal year 2021 budgets for the General Fund, Debt Services and Special Revenue Funds. A reconciliation of cash basis to generally accepted accounting principles (GAAP) is included in the financial statements. A project-length balanced budget was adopted for each capital project fund. G. Encumbrance Accounting Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. . ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued H. Assets, Liabilities and Fund Equity Cash and Investments The County’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments that mature within three months of the date acquired. The County follows GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Nonparticipating interest-earning investment contracts (investments whose value is not affected by interest rates or other market changes), including savings accounts, certificates of deposit, repurchase agreements, money market investments (short-term, highly liquid debt instruments including commercial paper, banker’s acceptances and U.S. Treasury and agency obligations) and participating interest-bearing investment contracts, that have a remaining maturity, at purchase, of one year or less are reported at cost or amortized cost assuming their fair value has not been impacted by changes in the credit worthiness of the issuer or similar factors. All other investments are reported at fair value (the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale). “Georgia Fund created by OCGA 36-83-8, is a stable net asset value investment pool which follows Standard and Poor’s criteria for AAA rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool’s primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a basis and determines participant’s shares sold and redeemed based on a $1.00 per share. The Office of the State Treasurer is the regulatory oversight agency for Georgia Fund 1. Receivables All receivables are reported at their net realizable value. Inventories Inventories are valued at cost using the first-in/first-out (FIFO) or specific identification methods. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded in the year of purchase in both government-wide and fund financial statements. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as interfund receivables and payables on the balance sheet of the fund financial statements and as “internal balances” on the statement of net position in the government-wide financial statements. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets roads, bridges and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial individual cost of more than $2,500 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Infrastructure acquired prior to June 30, 1980 is not reported. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest incurred during the construction phase of proprietary assets is included as part of the capitalized value of the assets constructed. All reported capital assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight-line method over the following useful lives: Years Buildings 25–50 Building improvements 20–25 Infrastructure 20–50 Furniture, fixtures and equipment 5–15 Vehicles 3–5 Specialized use equipment 2–10 Water system additions 15–40 Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County had outflow of resources related to net pension liability. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The County has 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 property taxes and resources related to net pension liability. Compensated Absences It is the County’s policy to permit employees to accumulate earned but unused leave benefits. Employees are allowed to accumulate a maximum of 320 hours’ vacation time; there are no limits on the accumulation of sick time. The County’s government-wide and proprietary funds include an accrual for the estimated compensation costs attributable to employee earned but unused leave benefits. Compensated absences are liquidated through the General Fund. Long-Term Obligations In the government-wide financial statements and proprietary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary funds statement of net position. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Fund Equity Fund equity at the government fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net position". Fund balance reported in the governmental funds financial statements generally represents the difference between current assets and current liabilities. Fund balance classifications represent a hierarchy based primarily on the extent to which the County is bound to honor constraints on specific purposes for which amounts in those funds can be spent. These classifications may consist of the following: a. Nonspendable - Fund balances are classified as nonspendable when amounts cannot be spent because they are either i) in nonspendable form or ii) they are legally contractually required to be maintained intact. The County includes items that are not expected to be converted to cash such as inventories and prepaid amounts. b. Restricted - Fund balances are reported as restricted when their use is restricted for specific purposes including i) constraints on funds externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or ii) constraints imposed by law through constitutional provisions or enabling legislation. c. Committed - Fund balances are reported as committed if their use is for a specific purpose as approved by formal action by the County Council (resolution). Amounts committed cannot be used for any other purpose unless Council removes or changes the specific use by approving such action through resolution at a Council meeting. Budget resolutions are considered a plan for specific use. d. Assigned - Fund balances are reported as assigned when constrained by the County's intent to use the funds for specific purposes that are neither restricted nor committed. Assigned fund balances include i) all remaining amounts (except negative balances) reported in governmental funds, other than the General fund, that are not classified as nonspendable, restricted or committed, and ii) amounts in the General Fund intended for a specific use identified by either the County Manager or Finance Director, and iii) amounts appropriated to eliminate a projected budget deficit in the subsequent year. e. Unassigned - Fund balances are reported as unassigned when the balances do not meet any of the above four criteria for classification. The County reports positive unassigned fund balance in only the General Fund. Negative unassigned fund balances may be reported in all governmental funds. For purposes of fund balance disbursement, unless otherwise approved by the County Council, the County will expend restricted fund balance when an expenditure is incurred for which both restricted and unrestricted fund balance is available. Next the County will expand committed fund balance when an expenditure is paid for which unrestricted fund balance is available. The County would next disburse fund balance assigned for purposes of the fund before disbursing other assigned fund balance amounts. In the General Fund, the County would disburse unassigned fund balance prior to disbursing fund balance assigned for financial policy reserve levels or amounts assigned to eliminate subsequent year's budget deficit. Net position is classified in three components in the government-wide financial statements. a. Invested in capital assets, net of related debt consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position consists of net position with constraints placed on the use either by external groups such as creditors, grantors, contributions, or laws or regulations of other governments; or law through constitutional provisions or enabling legislation. c. Unrestricted net position consists of all other net position that does not meet the definition of "restricted" or "invested in capital assets". ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued I. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues, expenses and expenditures during the reporting period. Actual results could differ from those estimates. J. Property Taxes Property taxes are an enforceable lien on property as of January 1 of the current tax year. Generally, taxes are levied in September and are due and payable on or before November 15. Since the tax digest, which is prepared by the McDuffie County Tax Appraiser, has to be approved by the Georgia Department of Revenue, the tax levy may be delayed later than September. In such cases, the taxes are due within 60 days after levy. The County bills and collects its property taxes. County property tax revenues are recognized when levied. An allowance is established for delinquent taxes to the extent that their collectability is improbable based on management's estimate of the amount to be collectible. Current year property taxes were levied September 15, 2023 and were due November 15, 2023. K. Local Option Sales Tax The County receives sixty-seven percent (67%) of a one percent local option sales tax on all retail sales within the County. The proceeds of this tax are used to reduce, on a dollar-for-dollar basis, the millage equivalent amount of property taxes to be levied in the subsequent year. Insurance premium taxes collected must also reduce the ensuing property tax levy. The County has established a fiscal policy to designate that portion of the General Fund’s fund balance, if available, for subsequent years’ expenditures. L. Adoption of New Accounting Standards The County adopted GASB Statement No. 87, Leases during the fiscal year ended December 31, 2023. GASB Statement No. 87 increases the usefulness of the financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. A lessee will be required to recognize a lease liability and an intangible right-to-use lease asset thereby enhancing the relevance and consistency of information about leasing activities. The County had the following material leases in effect for the fiscal year ended December 31, 2023: The use of copiers with $56,186 right of use asset and $56,186 lease obligation. NOTE 2 – MCDUFFIE COUNTY/CITY OF THOMSON, GEORGIA WATER AND SEWER COMMISSION The City of Thomson, Georgia and McDuffie County, Georgia have established the McDuffie County/City of Thomson, Georgia, Water and Sewer Commission to operate, maintain and extend the water and sewerage system for the City/County area. The Commission assumed the ownership and operations of the City of Thomson Water and Sewer Enterprise Fund in 1988, in conjunction with funding for expansion with the one percent Special Purpose Local Option Sales Tax. The Commission has seven members, three each from the City and County, and the seventh appointed by the Commission. The Commission was established for a term of fifty years. The City and County are equally responsible for the ownership of and the future maintenance and improvements to the System. The System is a closed system whereby all funds derived from the operation of the System must be used for the purposes of operating, maintaining, improving, or expanding the System. Based on the standards established by Statement No. 14 of the Governmental Accounting Standards Board, the Commission is a legally separate governmental organization classified as a joint venture. A joint venture is a legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants in a separate and specific activity subject to joint control, in which the participants retain an ongoing financial interest or an ongoing financial responsibility. Generally, the purpose of a joint venture is to pool resources and share the costs, risks, and rewards of providing goods or services to the venture participants directly, or for the benefit of the general public or specific service recipients. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 38 NOTE 2 – MCDUFFIE COUNTY/CITY OF THOMSON, GEORGIA WATER AND SEWER COMMISSION- Continued Joint control means that no single participant has the ability to unilaterally control the financial or operating policies of the joint venture. An ongoing financial interest in a joint venture includes an equity interest when the agreement stipulates that the participating governments have a present or future claim on the net resources of the joint venture. A participating government has an ongoing financial responsibility for a joint venture if it is obligated in some manner for the debts of the joint venture, or if the joint venture’s continued existence depends on continued funding by the government. Each participating government of the Commission has final authority for establishing rules and water and sewer rates, fees, standards and any other policy matters as are appropriate for the efficient delivery of water and sewer services. As such, each participating government has an indirect financial responsibility for the System, as defined by GASB Statement No. 14. The City and County share certain responsibilities with respect to the Commission. The City is responsible for operations, maintenance and customer billing for the System. The County is responsible for administering construction funds obtained through the Special Purpose Local Option Sales Tax. The City and County jointly or individually administer grant and other funds, depending on the terms of such funding. The basic financial statements of the Commission are presented in a manner consistent with primary governments. Operating transfers to the Commission by the participating governments are accounted for as intergovernmental transfers. Federal and state grant funds transferred to the Commission by the participating governments are accounted for as sub-recipient grant funds. Financial information for the year ended December 31, 2023, is summarized as follows: Joint Ventures: Operating revenues 6,365,796 $ Depreciation and amortization expense 1,663,222 Operating income (loss) (91,637) Capital contributions 543,383 Change in net position 855,211 Capital asset additions 2,264,928 Capital asset deletions 40,866 Net working capital 6,061,181 Total assets 44,136,067 Deferred outflows of resources 297,182 Long-term liabilities 10,043,976 Deferred inflows of resources 295,589 Total net position 32,091,672 $ These amounts are unaudited as a result of the Commission receiving a hardship extension under the COVID-19 regulations included in the governor’s executive order. The Commission has issued a separate financial report that may be obtained from: City of Thomson P. O. Box 1017 Thomson, Georgia 30824 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 39 NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Compliance with Bonds Payable As of December 31, 2023, the County is in compliance, in all material respects, with requirements under covenants relating to its bonds payable. Credit Risk – State statutes authorize the County to invest in obligations of the State of Georgia or other states; obligations issued by the U.S. government; obligations fully insured or guaranteed by the U.S. government or by a government agency of the United States; obligations of any corporation of the U.S. government; prime banker’s acceptances; the local government investment pool established by state law; repurchase agreements; and obligations of other political subdivisions of the State of Georgia. Custodial Credit Risk – Deposits – Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the County will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. Custodial Credit Risk – Investments – Custodial credit risk for investments is the risk that, in the event of failure of the counterparty, the County will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. State statutes require all investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. NOTE 4 – TAXES RECEIVABLE The County's Tax Commissioner bills and collects property taxes, then remits to the County its respective share of property taxes. Current year property taxes were levied September 15, 2023 and were due November 15, 2023. Property taxes become a lien on the first day of the levy year. Unpaid property taxes received within 60 days of year end are recognized and recorded as revenue (considered measurable and available), and property taxes unpaid 60 days after year end are recorded as unearned revenue. A summary of the 2023 tax levy follows: General Fund 2023 millage rate - Incorporated 7.81 Unincorporated 7.81 Net property tax levy 6,458,813 $ Property tax receivable 819,871 $ Property Tax collected in 2023 (377,519) Property tax receivable, net allowance 442,352 $ Unearned property tax revenues 442,352 $ NOTE 5 – EXCISE TAX In accordance with the provisions of O.C.G.A. § 48-13-110 et seq., there is imposed within the territorial limits of the special district created pursuant to O.C.G.A. § 48-13-111, an excise tax on the sale, use, storage, or consumption of energy when such sale, use, storage, or consumption would have constituted a taxable event for purposes of sales and use tax under O.C.G.A. § 48-8-1 et seq. but for the exemption in O.C.G.A. § 48-8-3.2. Such excise tax shall be levied and collected by the governing authority of McDuffie County pursuant to O.C.G.A. 48-13-112 and 48-13-114 and as provided in this section. Energy tax revenue for the year ended December 31, 2023, was as follows: ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 40 NOTE 5 – EXCISE TAX (CONTINUED) ENERGY EXCISE TAX 2023 AND 2022 MONTH COLLECTION CITY OF GEORGIA FERRELL JEFFERSON GAS 2023 RECEIVED MONTH THOMSON POWER GAS ENERGY SOUTH TOTAL TOTALS VARIANCE 1/31/2023 DECEMBER 2,585 $ 15,963 $ 97 $ 2,966 $ 101 $ 21,712 $ 19,240 $ 2,472 $ 2/28/2023 JANUARY 2,197 10,713 109 2,797 - 15,816 15,515 301 3/31/2023 FEBRUARY 1,626 14,692 93 2,966 - 19,377 23,350 (3,973) 4/30/2023 MARCH 1,437 16,373 140 3,147 - 21,097 18,709 2,388 5/31/2023 APRIL 1,318 10,664 140 3,320 - 15,442 20,016 (4,574) 6/30/2023 MAY 1,331 14,432 - 2,884 - 18,647 27,241 (8,594) 7/31/2023 JUNE 1,440 14,660 182 3,187 - 19,469 29,738 (10,269) 8/31/2023 JULY 1,357 21,084 73 2,870 - 25,384 41,681 (16,297) 9/30/2023 AUGUST 1,575 27,785 128 2,624 - 32,112 45,234 (13,122) 10/31/2023 SEPTEMBER 1,304 28,156 93 3,272 - 32,825 35,511 (2,686) 11/30/2023 OCTOBER 1,339 17,542 95 2,807 - 21,783 29,132 (7,349) 12/31/2023 NOVEMBER 1,518 18,131 - 3,031 - 22,680 25,108 (2,428) YTD Totals 19,027 $ 210,194 $ 1,149 $ 35,871 $ 101 $ 266,344 $ 330,475 $ (64,130) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 41 NOTE 6 – CAPITAL ASSETS Governmental capital assets activity for the year ended December 31, 2023, was as follows: Balance Transfers/ Transfers/ Balance 1/1/2023 Additions Deletions 12/31/2023 Capital assets not being depreciated Construction in process 12,449,012 $ 4,928,759 $ - $ 17,377,771 $ Land 3,588,475 - - 3,588,475 Total capital assets not being depreciated 16,037,487 4,928,759 - 20,966,246 Capital assets being depreciated Infrastructure 51,492,105 1,646,205 - 53,138,310 Buildings and improvements 39,377,416 53,979 - 39,431,395 Furniture, fixtures, and equipment 8,878,449 754,739 (147,366) 9,485,822 Right of use - leased assets 82,118 - (25,932) 56,186 Total capital assets being depreciated 99,830,088 2,454,923 (173,298) 102,111,713 Less accumulated depreciation: Infrastructure (44,311,213) (1,357,787) - (45,669,000) Buildings and improvements (16,198,840) (972,290) - (17,171,130) Furniture, fixtures, and equipment (6,666,366) (639,930) 152,603 (7,153,693) Right of use - leased assets - - - - Less accumulated depreciation (67,176,419) (2,970,007) 152,603 (69,993,823) Net capital assets being depreciated 32,653,669 (515,084) (20,695) 32,117,890 Governmental activities capital assets - net 48,691,156 $ 4,413,675 $ (20,695) $ 53,084,136 $ Depreciation expense was charged to functions as follows: General Government 709,979 $ Public Safety 526,971 Highways and Streets 1,557,838 Health and Welfare 59,286 Culture and Recreation 115,933 Totals 2,970,007 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 42 NOTE 6 – CAPITAL ASSETS - Continued Business-type capital assets activity for the year ended December 31, 2023, was as follows: Big Hart & Raysville Campgrounds: Balance Transfers/ Transfers/ Balance Raysville Campground Fund 1/1/2023 Additions Deletions 12/31/2023 Capital assets not being depreciated Construction in process - $ - $ - $ - $ Land - - - - Total capital assets not being depreciated - - - - Capital assets being depreciated Buildings and improvements - - - - Furniture, fixtures, and equipment 70,316 - - 70,316 Total capital assets being depreciated 70,316 - - 70,316 Less accumulated depreciation: Buildings and improvements - - - - Furniture, fixtures, and equipment (23,500) (14,063) - (37,563) Less accumulated depreciation (23,500) (14,063) - (37,563) Net capital assets being depreciated 46,816 (14,063) - 32,753 Business-type activities capital assets - net 46,816 $ (14,063) $ - $ 32,753 $ Big Hart & Raysville Campgrounds are leased from the corps of engineer and do not have any capital assets. The County is just managing the properties. Said premises are hereby leased for a term of ten years, beginning March 20, 2020 and ending March 19, 2030. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 43 NOTE 6 – CAPITAL ASSETS - Continued Solid Waste Fund: Balance Transfers/ Transfers/ Balance Solid Waste fund 1/1/2023 Additions Deletions 12/31/2023 Capital assets not being depreciated Construction in process 332,551 $ 490,664 $ - $ 823,215 $ Land 312,891 - - 312,891 Total capital assets not being depreciated 645,442 490,664 - 1,136,106 Capital assets being depreciated Buildings and improvements 212,237 - - 212,237 Furniture, fixtures, and equipment 345,254 59,724 - 404,978 Total capital assets being depreciated 557,491 59,724 - 617,215 Less accumulated depreciation: Buildings and improvements (151,606) (5,307) - (156,913) Furniture, fixtures, and equipment (315,008) (63,084) - (378,092) Less accumulated depreciation (466,614) (68,391) - (535,005) Net capital assets being depreciated 90,877 (8,667) - 82,210 Business-type activities capital assets - net 736,319 $ 481,997 $ - $ 1,218,316 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 44 NOTE 6 – CAPITAL ASSETS - Continued Balance Transfers/ Transfers/ Balance EMS Fund 1/1/2023 Additions Deletions 12/31/2023 Capital assets not being depreciated Construction in process - $ - $ - $ - $ Land 6,758 - - 6,758 Total capital assets not being depreciated 6,758 - - 6,758 Capital assets being depreciated Buildings and improvements 2,484,324 56,108 - 2,540,432 Furniture, fixtures, and equipment 3,844,119 1,270,415 - 5,114,534 Total capital assets being depreciated 6,328,443 1,326,523 - 7,654,966 Less accumulated depreciation: Buildings and improvements (929,385) (57,004) - (986,389) Furniture, fixtures, and equipment (2,785,558) (503,071) - (3,288,629) Less accumulated depreciation (3,714,943) (560,075) - (4,275,018) Net capital assets being depreciated 2,613,500 766,448 - 3,379,948 Business-type activities capital assets - net 2,620,258 $ 766,448 $ - $ 3,386,706 $ Depreciation expense on capital assets of the Proprietary Funds was $582,806 for the year ended December 31, 2023. Capitalization of Interest Costs requires that interest expenditures incurred during construction of assets be capitalized. Capitalization of Interest Costs in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifts and Grants concludes that constructed assets financed with the proceeds of tax-exempt debt (if those funds are externally restricted to finance the acquisitions of the asset or used to service the related debt) should include capitalized interest only to the extent that interest costs exceed interest earned on related interest-bearing borrowing. There were no construction period interest costs capitalized in the Water and Sewer Fund during the year ended December 31, 2023. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 45 NOTE 6 – CAPITAL ASSETS – Continued Capital assets of the Discretely Presented Component Units consist of the following: Balance Transfers/ Transfers/ Balance Development Authority 1/1/2023 Additions Deletions 12/31/2023 Capital assets not being depreciated Land and land improvements 4,876,676 $ - $ (111,751) $ 4,764,925 $ Property, plant and equipment Buildings and improvements 2,390,005 - - 2,390,005 Equipment and furniture 18,572 - - 18,572 Total property, plant and equipment 2,408,577 - - 2,408,577 Less accumulated depreciation Buildings (788,118) (80,583) - (868,701) Equipment and furniture (9,910) (854) - (10,764) Total accumulated depreciation (798,028) (81,437) - (879,465) Net capital assets being depreciated 1,610,549 (81,437) - 1,529,112 Component unit capital assets - net 6,487,225 $ (81,437) $ (111,751) $ 6,294,037 $ Depreciation expense on capital assets of the Development Authority was $81,437 for the year ended December 31, 2023. NOTE 7 – NOTES RECEIVABLE At December 31, 2023, the Development Authority of McDuffie County and the City of Thomson (a discretely presented component unit) had the following notes receivable outstanding. The notes were collateralized by real estate. Note receivable bearing interest at 5.25%, due in installments of $2,138, including principal and interest, maturing in 2030. (GSK Metal Works) 128,659 $ Note receivable bearing interest at 2.50%, due in installments of $5,656, including principal and interest, maturing in 2026. (Augusta Coatings Note) 180,770 Note receivable bearing interest at 2.50%, due in installments of $2,768, including principal and interest, maturing in 2025. (Two State Note) 33,339 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. (Two State Note) 97,451 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. (Thomson Plastics) 312,434 Note receivable bearing interest at 3.00%, due in installments of $1,209, including principal and interest, maturing in 2033. (Chardan Note) 123,363 876,016 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 46 NOTE 8 – LONG TERM DEBT The following is a summary of the long-term liability transactions for the year ended December 31, 2023: Balance Balance Due within 1/1/2023 Additions Deletions 12/31/2023 One Year Governmental Activities Lease Liability 82,118 $ - $ (25,932) $ 56,186 $ 25,932 $ Accrued compensated absences 468,979 56,673 - 525,652 - Total debt - governmental activities 551,097 $ 56,673 $ (25,932) $ 581,838 $ 25,932 $ Business-type Activities Accrued compensated absences Raysville Campground 2,734 $ - $ (2,552) $ 182 $ - $ Accrued compensated absences Solid Waste 12,994 2,373 - 15,367 - Accrued closure and postclosure costs 126,128 - (27,941) 98,187 - Total debt - business-type activities 141,856 $ 2,373 $ (30,493) $ 113,736 $ - $ The following is a summary of the Discretely Presented Component Units’ long-term debt: Balance Balance Due within Health Department 7/1/2022 Additions Deletions 6/30/2023 One Year Accrued compensated absences 56,282 33,516 (28,237) 61,561 - Total debt 56,282 $ 33,516 $ (28,237) $ 61,561 $ - $ Balance Balance Due within Development Authority 1/1/2023 Additions Deletions 12/31/2023 One Year Note payable 306,771 $ - $ (60,053) $ 246,718 $ 64,998 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 47 NOTE 9 – RETIREMENT PLAN Defined Benefit Pension Plan The County sponsors the Association County Commissioners of Georgia Restated Pension Plan for McDuffie County Employees (The Plan), which is a defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries. The Plan, through execution of the adoption agreement, is affiliated with the Association County Commissioners of Georgia Third Restated Defined Benefit Plan (an agent multiple-employer pension plan, administered by GEB Corp. The ACCG, in its role as the Plan Sponsor, has the sole authority to amend the provisions of the ACCG Plan, as provided in Section 19.03 of the ACCG Plan document. The County has the authority to amend the adoption agreement, which defines the specific benefit provisions of The Plan, as provided in Section 19.02 of the ACCG Plan document. The Plan issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by writing Government Employees Benefits Corporation of Georgia, 400 Galleria Parkway, Suite 1250, Atlanta, Georgia 30339. All full-time County employees are eligible to participate in the Plan after completing three years of service with benefits vesting after five years of service. Participants become eligible to retire with unreduced benefits at the earlier of age 65 with 5 years of participation in the Plan, or by age 62 with 35 years of service. Upon eligibility to retire, participants are entitled to a benefit in the amount of 1% of average annual compensation up to $10,000 plus 1.5% of average annual compensation in excess of $10,000, plus $36 for each year of service up to 35 years, payable as a ten-year certain and life annuity. Average annual compensation is calculated based on the highest five-year period during the ten years 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 Board of Commissioners. Participant counts as of December 31, 2023, (the most recent actuarial valuation date) and covered compensation (based on covered earnings for the preceding year) are shown below: Retirees and beneficiaries receiving benefits 75 Terminated Plan participants entitled to, but not yet receiving benefits 80 Active employees participating in the Plan 125 Total number of Plan participants 280 Part-time active employees not participating in the plan 17 Covered compensation for active participants 5,483,993 $ Contributions The County is required to contribute an actuarially determined rate. The contribution amount is determined using actuarial methods and assumptions approved by the ACCG Plan trustees and must satisfy the minimum contribution requirement contained in the State of Georgia Statutes. Section 47-20 of the Georgia Code sets forth the funding standards for state and local governmental pension plans. Net Pension Liability The County’s net pension liability was measured as of December 31, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. This date was used due to the timing of the actuarial valuation reports. The actuarial valuation reports are available after the subsequent year end. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 48 NOTE 9 – RETIREMENT PLAN- Net Pension Liability -Continued The total pension liability as of December 31, 2023, valuation was determined by an actuarial valuation using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Future Salary Increases 3.00% per year with an age based scale Investment rate of return 7.00% per year Mortality rates were based on the RP-2000 Combined Mortality Table for Males and Females set back two years for males and set back three years for females. The actuarial assumptions used in the 2022 valuation were based on the results of an actuarial experience study for the period January 1, 1988 – January 1, 2021. The long-term expected rate of return on pension plan investments was determined using a lognormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Target Asset Class Allocation Fixed income: 30% 25% - 35% Equities: 70% 65% - 75% Domestic large equities 30% 25% - 35% Domestic mid equities 5% 2.5% - 10% Domestic small equities 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% TOTAL 100% *Rates shown are net of the 3.0% assumed rate of inflation Range The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 49 NOTE 9 – RETIREMENT PLAN – Continued Change in the Net Pension Liability Pension Liability Fiduciary Net Position Net Pension Liability Balance at December 31, 2022 14,687,047 $ 10,928,450 $ 3,758,597 $ Changes for the year: Service cost 285,342 - 285,342 Interest 1,001,026 - 1,001,026 Liability experience (gain)/loss 389,225 389,225 Assumption change 552,876 552,876 Contribution-employer - 558,650 (558,650) Net investment income - 1,587,203 (1,587,203) Benefit payments (773,347) (773,347) - Administrative expense - (47,207) 47,207 Other changes - (65,570) 65,570 Net changes 1,455,122 1,259,729 195,393 Balance at December 31, 2023 16,142,169 $ 12,188,179 $ 3,953,990 $ For the year ended December 31, 2022, the County recognized pension expense of $1,416,999. The required contribution for the year ended December 31, 2023 was $534,907. The following presents the County’s net pension liability calculated using the discount rate of 7.00%, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate: 1% Decrease Current Discount 1% Increase 6.00% Rate 7.00% 8.00% County's Pension Liability 5,895,952 $ 3,953,990 $ 2,324,115 $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2023, the County recognized pension expense of $1,416,999. At December 31, 2023, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred outflows/inflows of resources related to pensions: Deferred Outflows of Deferred Inflows of Resources Resources Asset (Gain)/Loss 1,675,448 $ (1,138,124) $ Liability (Gain)/Loss 396,861 - (Gain)/Loss due to Assumpution Change 411,827 - Total 2,484,136 $ (1,138,124) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 50 NOTE 9 – RETIREMENT PLAN – Continued Amounts report as deferred outflows of resources and deferred inflows of resources related to pension will be amortized in pension expense as follows: 2024 336,503 2025 336,503 2026 336,503 Thereafter 336,503 Deferred Outflows/(Inflows) Recognized in Future Years Other State of Georgia Pension Plans The Sheriff, Clerk of Superior Court, Probate Judge, Tax Commissioner, and various other employees of the County are covered by the State of Georgia retirement plans and are not included as a part of the County’s plan described above. These State Plans are funded, in part, through County fines and forfeiture collections. Information on the Sheriffs Retirement plan may be found at the following: Georgia Sheriffs Association Retirement Fund P.O. Box 1000 Stockbridge, GA 30281 Information on the Clerk of Superior Court Retirement plan may be found at the following: Superior Court Clerk’s Retirement Fund of Georgia 124 N. McDonough St., #3 Jonesboro, GA 30236 Information on the Probate Judge Retirement plan may be found at the following: Probate Retirement Fund of Georgia P.O. Box 56 Griffin, GA 30224 Information on the Tax Commissioners Retirement plan may be found at the following: Employee Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 Deferred Compensation Plans The County has adopted deferred compensation plans in accordance with Section 457 of the Internal Revenue Code. The plans allow any employee participant to voluntarily defer the lesser of 100% of the participant’s gross compensation or $15,000 per year. All administrative costs of the plans are deducted from the participants’ accounts. Benefit payments are payable upon termination of employment, unforeseeable emergency, retirement or death. The Custodial Account Agreement requires the County set aside assets and income from the plan in trust for the exclusive benefit of the participants and their beneficiaries. The County is in compliance with the agreement. Information about the GEBCorp Deferred Compensation plan may be found at the following: The Charles Schwab Trust 425 Market Street, 7th Floor San Francisco, CA 94105 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 51 NOTE 9 – RETIREMENT PLAN – Continued The County believes that it has no liability for losses under the plans but does have the duty of due care that would be required of an ordinary prudent investor. The investments are managed by the Plan Administrator in one of three investment options or a combination thereof. The available options include fixed annuity, variable annuity and universal life insurance. The participant makes the choice of investment option(s). At December 31, 2023, 15.81%, or 52, of the County’s 329 employees, were participants in the deferred compensation plans. The employees of the County contributed $127,167, respectively, to GEBCorp deferred compensation plan during the year ended December 31, 2023. GASB Statement No. 2, Financial Reporting of Deferred Compensation Plans Adopted under the provisions of Internal Revenue Code Section 457, established reporting requirements for IRC Section 457 plans. Based on the laws in effect at the time of its passage, that Statement required that all amounts deferred by the plan participants be reported as assets of the employer until made available to the participants or their beneficiaries. The laws governing these plans were changed to state that, as of August 20, 1996, new plans will not be considered eligible plans “unless all assets and income of the plan described in subsection are held in trust for the exclusive benefit of the participants and their beneficiaries”. In the case of an existing plan, a trust need not be established before January 1, 1999. Since the County amended its plan to comply with the requirements of subsection of Internal Revenue Code Section 457, it has adopted GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. NOTE 10 – RISK MANAGEMENT, LITIGATION, AND CONTINGENCIES 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; injuries to employees; and natural disasters for which the government is a member of a public entity risk pool currently operating as a common risk management and insurance program for member local governments. The County has joined other municipalities in the state as part of the Georgia Inter-Local Risk Management Agency Property and Liability Insurance Fund and the Association County Commissioners of Georgia Group Self-Insurance Workers’ Compensation Fund (ACCG-GSIWCF). As part of these risk pools, the Government is obligated to pay all contributions and assessments as prescribed by the pools, to cooperate with the pool’s 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. The County is also to allow the pool’s agents and attorneys to represent the County in investigation, settlement discussions and all levels of litigation arising out of any claim made against the County within the scope of loss protection furnished by the funds. The funds are to defend and protect members of the funds against liability or loss as prescribed in the member government contract and in accordance with the worker’s compensation law of Georgia. The funds are to pay all cost taxed against members in any legal proceeding defended by the members, all interest accruing after entry of judgment, and all expenses incurred for investigation, negotiation, or defense. Liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims. Liabilities include amounts that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. The liability for claims and judgments is reported as long-term debt because it is not expected that it will be liquidated from expendable available financial resources. As of December 31, 2023, the County had recorded no liability for claims. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 52 NOTE 10 – RISK MANAGEMENT, LITIGATION, AND CONTINGENCIES – CONTINUED The change in the balances of the workers’ compensation pool claims during fiscal year 2023 is as follows: Workers compensation 2023 Unpaid claims, beginning of fiscal year 1,374,929 $ Incurred claims 293,290 Claim payments (95,928) Unpaid claims, end of fiscal year 1,572,291 $ General, property, and vehicle liabilities are provided for by commercial insurance coverage. Insurance bonding in amounts proportionate to employee exposure provides surety coverage. The County is liable for the $1,000 deductible. The change in the property and liability claims during the year 2023 is as follows: General, property, and vehicle liabilities 2023 Unpaid claims, beginning of fiscal year 803,800 $ Incurred claims 424,925 Claim payments (67,773) Unpaid claims, end of fiscal year 1,160,952 $ Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the Federal Government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures, which may be disallowed by the grantor, cannot be determined at this time although the County expects such amounts, if any, to be immaterial. The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the County’s management and counsel that resolution of these matters will not have a material effect on the financial condition of the County. NOTE 11 – INTERFUND TRANSACTIONS Due From/To Other Funds Interfund receivables and payables account for loans between funds for cash management purposes. Interfund receivables and payables as of December 31, 2023 were as follows: Non-major General Govt Lawn Transportation American Solid Receivable Fund Fund Funds Care EMS SPLOST Rescue Waste Total Hotel/Motel 40,331 $ - $ - $ - $ - $ - $ - $ 40,331 $ Non-major Govt Funds 101,037 120 - - - - - 101,157 Raysville - 260 517 19,173 - 300 - 20,250 General Fund - 169,203 - 172,403 416,159 - 346,880 1,104,645 Total 141,368 $ 169,583 $ 517 $ 191,576 $ 416,159 $ 300 $ 346,880 $ 1,266,383 $ Payable Fund . ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 53 NOTE 12 – NET POSITION/FUND EQUITY Transfers To/From Other Funds Transfers between the General Fund and other governmental funds were primarily to support the operations of the funds. Reservations of net position/fund equity are created to either satisfy legal covenants that require a portion of the fund balance be segregated or identify the portion of the fund balance that is not appropriated for future expenditures. Specific reservations of the fund balance accounts are summarized as follow: Non-major Solid General Govt SPLOST Lawn Raysville Waste Total Transfers out Fund Funds VII EMS Care Campground Landfill Transfers Out General Fund - $ 95,073 $ - $ - $ - $ - $ - $ 95,073 $ EMS - - 855,635 - - - - 855,635 Solid Waste - 13,245 477,419 - - - - 490,664 Internal shop 124,879 6,865 - 29,748 1,144 - 13,730 176,366 Lawn Care 74,375 - - 4,788 - 9,576 2,394 91,133 Non-major Govt Funds 147,090 - - - - - 42,650 189,740 Total- Transfers In 346,344 $ 115,183 $ 1,333,054 $ 34,536 $ 1,144 $ 9,576 $ 58,774 $ 1,898,611 $ Transfers in Restricted for encumbrances – This reserve was created to represent encumbrances outstanding at the end of the year based on purchase orders and contracts signed by the County but not completed as of the close of the fiscal year. Restricted for designated purposes – This reserve represents the portion of net position that is legally restricted for specified purposes. Unrestricted – This represents the portion of net position that is not restricted and not designated for other purposes. The McDuffie County Health Department had a surplus in unrestricted net position totaling $126,128 as of June 30, 2023. The deficit will be funded through operations of the Department. NOTE 13 – SOLID WASTE FUND The County maintains a solid waste landfill facility, which was established as an enterprise fund as of January 1, 1993. The current landfill was closed during 1994, to avoid the thirty-year post-closure monitoring for leaks into the ground water and removal and treatment of leachate, as required by regulations issued by the U.S. Environmental Protection Agency. By closing the facility, the County is required to monitor the facility. The licensure process for a new landfill has been completed, and the permit has been extended until completion. The Solid Waste Fund is expected ultimately to be self-supporting. All revenues related to the collection and disposal of solid waste, and the expenses related to the operation are reported in this fund. Government Accounting Standards Board Statement No. 18 (GASB-18) was issued effective June 15, 1993, to establish accounting standards for reporting the liabilities associated with required closure and post-closure costs. The standard states that the total estimated current cost of closure and post-closure monitoring is to be recognized as a liability as the landfill’s usable area is consumed. The estimated total current cost includes: the cost of equipment expected to be installed and facilities expected to be constructed, the cost of the final earth cover to be applied when the landfill is full, and the estimated costs of monitoring and maintaining the landfill in the post closure period. The accrued closure and post-closure costs liability totaled $98,187* as of December 31, 2023. Costs for closure and post-closure care are based on engineering estimates and are subject to change based on various factors some of which include inflation, deflation, changes in technology, and changes in laws and regulations. These costs are to be funded by collection fees and by tonnage costs. Costs incurred during 2022 totaled $27,941. *Estimated to be $443,877 per Georgia EPD in 2023 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 54 NOTE 14 –BIG HART AND RAYSVILLE CAMPGROUNDS FUND Raysville Campground is located on Georgia's Little River, section of Clarks Hill Lake, the largest U.S. Corps of Engineers lake east of the Mississippi River. The 70,000 acre lake and its 1,000+ miles of shoreline provide excellent boating, water skiing, swimming, fishing, and hiking. The campground is situated in a wooded area on the waterfront and consists of 55 family campsites, all with 50-amp electrical hookups. Amenities include restrooms, showers, a dump station, boat ramp and dock. Big Hart Campground is situated in a wooded area on the waterfront of Clarks Hill Lake. One group campsite and 31 family campsites are available, all with 50-amp electrical hookups. Amenities include flush and vault toilets, showers, drinking water, a dump station, playground, beach, boat ramp and dock. The Big Hart and Raysville Campgrounds Fund is expected ultimately to be self-supporting. All revenues related to the rental and the expenses related to the operation are reported in this fund. NOTE 15 – HOTEL/MOTEL LODGING TAX McDuffie County has levied a 5% lodging tax pursuant to O.C.G.A. 48-13-51. At least 40% of the tax is to be used for tourism related purposes. During 2023, approximately 89% of receipts were allocated for tourism. Transactions for the year ended December 31, 2023 were as follows: Balance as of December 31, 2022 100,597 $ Tax Collections during 2023 318,297 Reimbursement received during 2023 712 Disbursements for promotion of tourism (282,192) Transfer to General Fund (85,502) Balance as of December 31, 2023 51,912 $ NOTE 16 – JOINT VENTURE Under Georgia law, the County in conjunction with other cities and counties in the Central Savannah River Area, is a member of the Central Savannah River Area Regional Commission (RC) and is required to pay annual dues thereto. During its year ended December 31, 2023, the County paid $32,736 in such dues. Membership in the RC is required by the Official Code of Georgia Annotated (OCGA) Section 50-8-34, which provides for the organizational structure of the RC in Georgia. The RC board membership includes the chief elected official of each county and municipality of the area. OCGA 50-8-39.1 provides that the member governments are liable for any debts or obligations of the RC. Separate financial statements may be obtained from: Central Savannah River Area Regional Commission 3023 Riverwatch Parkway, Suite A Augusta, Georgia 30907-2018 NOTE 17 – RELATED PARTY TRANSACTIONS There were no material related party transactions during the year ended December 31, 2023. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 55 NOTE 18- Constitutional Officers and Firefighters Pension Plans The County’s Constitutional Officers and some of their staff and firefighters belong to one of six pension’s plans, listed below, established by the Georgia General Assembly for providing retirement benefits for these participants. These plans are cost sharing multiple employer defined benefit plans. Plan Website Employees Retirement System of Georgia - Tax Commissioner ers.ga.gov Judges of the Probate Courts Retirement Fund of Georgia pjrf.georgia.gov Sheriffs' Retirement Fund of Georgia georgiasheriffs.org Peace Officers' Annuity & Benefit Fund of Georgia poab.georgia.gov Georgia Firefighters' Pension Fund gfpf.org Georgia Judicial Retirement System ers.ga.gov Name of Pension Plan Pension liabilities and pension expense with all plans above combined and summarized as follows: McDuffie County's proportionate share of net pension liability - $ 1,416,999 Total 1,416,999 $ McDuffie recognized pension expense 181,485 $ McDuffie recognized revenue from State of Georgia support 181,485 $ State of Georgia's proportionate share of net pension liability associated with McDuffie County These plans are considered special funding situations; and 100% of the collective net pension liabilities are allocated to the State of Georgia. The County does not contribute to any of these plans. Pension plan descriptions, assumptions and related disclosures may be found in separately issued reports at June 30, 2022 for each of these plans and are available at the websites listed above. NOTE 19 - SUBSEQUENT EVENTS In preparing the financial statements, the County has evaluated events and transactions for potential recognition or disclosure through June 28, 2024. Management has not identified any items requiring recognition or disclosure. ---PAGE BREAK--- 56 REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2023 57 Variance Original Final Over Budget Budget Actual (Under) REVENUES Taxes Property tax 5,137,482 $ 5,137,482 $ 4,329,663 $ (807,819) $ Property tax penalties 40,000 40,000 24,816 (15,184) Prior year property tax 270,394 270,394 1,002,674 732,280 Local option sales tax 3,100,000 3,100,000 3,033,387 (66,613) TAVT 1,200,000 1,200,000 1,139,146 (60,854) TAV - administration 30,000 30,000 31,364 1,364 Alcohol beverage tax 260,000 260,000 188,761 (71,239) Excise tax 350,000 350,000 266,346 (83,654) Franchise tax 90,000 90,000 84,162 (5,838) Motor vehicle tax 56,314 56,314 121,231 64,917 AAVT tax 16,000 22,300 22,285 (15) Prior year - 331,114 - (331,114) Mobile home tax 55,518 55,518 19,401 (36,117) Mobile home tax penalties 11,000 11,000 6,798 (4,202) Timber tax 44,822 44,822 36,143 (8,679) Light district 30,100 30,100 40,184 10,084 Railroad tax 12,000 12,000 9,834 (2,166) Payments in lieu of tax 42,000 42,000 44,942 2,942 Commissions 310,000 310,000 286,008 (23,992) FIFA 20,000 20,000 7,433 (12,567) BK lic tax 32,000 32,000 43,326 11,326 Equipment tax 92 92 142 50 Penalties and fines 10,000 12,500 13,918 1,418 Total taxes 11,117,722 11,457,636 10,751,964 (705,672) Licenses and permits Beer and wine licenses 10,150 10,150 10,800 650 Alcohol licenses 27,500 27,500 30,250 2,750 Business licenses 80,000 80,000 75,293 (4,707) Penalties and fines 35,100 35,100 26,235 (8,865) Building permits and licenses 140,000 140,000 113,913 (26,087) Total licenses and permits 292,750 292,750 256,491 (36,259) Intergovernmental Reimbursements 1,470,601 1,493,659 1,448,072 (45,587) Government center - City of Thomson 139,100 139,100 134,910 (4,190) Home delivered meals 6,500 6,500 9,233 2,733 Grants 40,000 40,000 660,867 620,867 Tax assessor 5,700 5,700 4,662 (1,038) Total intergovernmental 1,661,901 1,684,959 2,257,744 572,785 Charges for services Recreation fees 132,500 132,500 92,453 (40,047) Senior citizens fees 500 500 9,134 8,634 Rent 158,322 158,322 150,308 (8,014) Animal shelter 5,000 5,000 4,736 (264) Sheriff 361,250 361,250 320,200 (41,050) Sheriff administration 187,550 222,550 84,784 (137,766) Public works 6,550 6,550 4,628 (1,922) Public Utility - - 5,389 5,389 Vending machine - - 55 55 Fire fees - - - - Total charges for services 851,672 886,672 671,687 (214,985) Cash Basis ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2023 58 Variance Original Final Over Budget Budget Actual (Under) REVENUES - Continued Fines and forfeitures Superior court fines and fees 341,000 $ 341,000 $ 276,366 $ (64,634) $ Probate court fines and fees 595,000 595,000 392,800 (202,200) Magistrate court fines and fees 66,000 66,000 55,843 (10,157) Total fines and forfeitures 1,002,000 1,002,000 725,009 (276,991) Other Flood control 1,000 1,000 2,202 1,202 Interest 28,000 188,000 213,863 25,863 Surplus sales 10,000 10,000 500 (9,500) Scrap 5,000 5,000 827 (4,173) Election qual 200 200 - (200) Airport-GA 1,000 1,000 - (1,000) Bad check 100 100 - (100) Employee relations 8,000 8,000 8,616 616 Miscellaneous 22,600 80,660 78,689 (1,971) Total other 75,900 293,960 304,697 10,737 Total revenues 15,001,945 15,617,977 14,967,592 (650,385) EXPENDITURES General government Governing body 356,420 396,202 393,470 (2,732) County manager 479,630 486,531 461,599 (24,932) Elections office 382,859 580,568 400,147 (180,421) Administration 1,052,495 896,523 760,145 (136,378) Government center complex 137,565 145,230 142,452 (2,778) Finance 382,455 404,930 374,782 (30,148) Technical support 487,127 598,791 580,502 (18,289) Tax commissioner 428,852 434,769 406,623 (28,146) Tax assessor 394,876 421,564 416,331 (5,233) Board of equalization 6,801 6,801 6,510 (291) General government buildings 295,533 329,980 274,899 (55,081) Superior court 116,716 116,716 97,490 (19,226) Clerk of superior court 444,135 448,755 399,524 (49,231) District attorney 149,463 151,485 150,359 (1,126) Victim's assistance 115,045 118,030 107,876 (10,154) Child support 6,000 22,053 22,053 - Courts 66,756 68,367 60,233 (8,134) Magistrate court 192,751 213,302 214,748 1,446 Probate court 248,413 247,216 216,136 (31,080) Juvenile court 123,517 132,948 132,939 Public defender 93,100 98,969 99,100 131 Planning and zoning 379,524 407,164 320,621 (86,543) Total general government 6,340,033 6,726,894 6,038,539 (688,355) Cash Basis ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2023 59 Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES - Continued Public safety Sheriff 2,620,358 $ 2,610,048 $ 2,141,303 $ (468,745) $ Sheriff administrative 187,550 187,550 117,838 (69,712) Detention center 2,226,967 2,222,324 2,018,158 (204,166) Fire - - - - Emergency management - - - - Inmate workforce - - - - Coroner 54,391 58,391 49,195 (9,196) Total public safety 5,089,266 5,078,313 4,326,494 (751,819) Highways and streets Vehicle and equipment maintenance - - - - Public works 1,297,903 1,430,589 1,375,469 (55,120) Total highways and streets 1,297,903 1,430,589 1,375,469 (55,120) Health and welfare Family and children services 35,372 35,372 29,112 (6,260) Health department 120,350 120,350 100,496 (19,854) Mental health - - - - Rural transportation - - - - Senior citizens 170,351 175,338 176,264 926 Soil & waste conservation 500 500 350 (150) Home delivered meals 83,148 83,148 63,830 (19,318) Total health and welfare 409,721 414,708 370,052 (44,656) Culture and recreation Library 100,822 100,822 100,822 - Boys and Girls Club 32,399 61,373 61,355 (18) Rockhouse 3,700 3,700 3,478 (222) Recreation 1,014,936 1,022,528 969,894 (52,634) Main Street Gym 7,300 7,300 4,866 (2,434) Tourism - - - - Development Authority 77,445 84,450 79,750 (4,700) Total culture and recreation 1,236,602 1,280,173 1,220,165 (60,008) Other Cooperative extension service 158,063 158,063 108,355 (49,708) Airport 59,500 70,483 72,535 2,052 Forestry 8,820 8,820 8,820 - Lawn care services - - - - Employee relations 5,000 11,822 11,160 (662) Recycling center 10,000 20,076 19,839 (237) Animal shelter 139,099 148,493 149,666 1,173 Total other 380,482 417,757 370,375 (47,382) Total Expenditures 14,754,007 15,348,434 13,701,094 (1,647,340) Other financing sources Transfer in (out) (241,028) (262,633) (251,271) 11,362 Net change in fund balance 6,910 $ 6,910 $ 1,015,227 $ 1,008,317 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities (356,685) FUND BALANCE, BEGINNING OF YEAR 11,133,077 FUND BALANCE, END OF YEAR 11,791,619 $ Cash Basis ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY- ACCG PENSION PLAN FOR MCDUFFIE COUNTY EMPLOYEES FOR THE YEAR ENDED DECEMBER 31, 2023 60 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Contractually Required Contribution N/A 422,092 $ 439,023 $ 435,778 $ 390,773 $ 296,675 $ 390,358 $ 440,187 $ 449,065 $ 534,907 $ Contribution in Relation to the Contractually Required Contribution N/A 422,092 439,023 435,778 390,773 296,675 390,358 440,187 449,065 534,907 Contributions Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-Employee Payroll N/A 4,008,169 $ 3,943,434 $ 3,706,447 $ 3,821,798 $ 3,916,301 $ 4,150,892 $ 4,768,705 $ 4,894,203 $ 4,894,203 $ Contribution as a Percentage of Covered- Employee Payroll N/A 10.5% 11.1% 11.8% 10.2% 7.6% 9.4% 9.2% 9.2% 10.9% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS- ACCG PENSION PLAN FOR MCDUFFIE COUNTY EMPLOYEES FOR THE YEAR ENDED DECEMBER 31, 2023 61 For the Year Ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net pension liability N/A 1,111,156 $ 1,679,221 $ 1,808,471 $ 602,704 $ 2,036,823 $ 1,303,872 $ 991,470 $ 3,758,597 $ 3,953,990 $ Covered-employee payroll N/A 4,008,169 $ 3,810,081 $ 3,581,137 $ 3,821,798 $ 3,916,301 $ 4,150,892 $ 4,768,705 $ 4,894,203 $ 5,483,993 $ Net pension liability as a percentage of covered-employee payroll N/A 27.70% 44.10% 50.50% 15.80% 52.00% 31.40% 20.80% 76.80% 76.80% Plan fiduciary net position as a percentage of the total pension liability N/A 87.70% 82.50% 82.40% 94.10% 81.50% 90.00% 93.00% 74.40% 74.40% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER 31, 2023 (JUNE 30, 2023 MEASUREMENT DATE) 62 Employees Retirement System of Georgia - Tax Commissioner Georgia Judicial Retirement System Peace Officers' Annuity & Benefit Fund of Georgia Judges of the Probate Courts Retirement Fund of Georgia Sheriffs' Retirement Fund of Georgia Georgia Firefighters' Pension Fund McDuffie County's proportion of net pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% McDuffie County's proportionate share of net pension liability - $ - $ - $ - $ - $ - $ State of Georgia's proportionate share of net pension liability associated with McDuffie 611,410 (41,908) 146,202 (135,887) 456,410 380,772 Total 611,410 (41,908) 146,202 (135,887) 456,410 380,772 McDuffie County's covered-employee payroll 76,865 $ 86,000 $ 1,022,815 $ 81,343 $ 54,402 $ 2,186,869 $ McDuffie County's proportionate share of net pension liability as percentage of its covered-employee payroll Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Plan fiduciary net position as a percentage of the total pension liability 72.20% 108.30% 80.74% 124.03% 57.10% 77.76% ---PAGE BREAK--- 63 COMBINING AND INDIVIDUAL FUND STATEMENTS ---PAGE BREAK--- 64 MCDUFFIE COUNTY MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 GENERAL FUND The General Fund is used to account for resources traditionally associated with the County that are not required legally, or by sound financial management, to be accounted for in another fund. SPLOST VI SPLOST VI – The SPLOST VI Fund is used to account for proceeds from SPLOST VI. SPLOST VII SPLOST VII – The SPLOST VI Fund is used to account for proceeds from SPLOST VII. TSPLOST FUND TSPLOST Fund – The TSPLOST Fund is used to account for the construction of transportation related projects funded by TPLOST. ---PAGE BREAK--- 65 MCDUFFIE COUNTY NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Jail Fund – to account for fines charged by the County that are to be used for jail improvements. Drug Task Force Fund – to account for add-on fees received from fines to be used to assist with drug enforcement needs. Drug Court Fund – to account for add-on fees received from fines to be used to assist with drug treatment needs. Wireless Emergency Telephone System Fund – to account for collection of wireless 911 phone surcharges used for operation and maintenance of the 911-phone system. Landfill Surcharge Fund – to account for fees received from Solid Waste. Hotel/Motel Fund – to account for tax to be used for tourism-related purposes. Law Library Fund– to account for receipt of fee revenue generated to support the legal library for the McDuffie County court system. Juvenile Probation Fund – to account for fee revenue generated for juvenile probation. Emergency Telephone System Fund – is used to account for the collection of 911 phone surcharges used for operation and maintenance of the 911-telephone system. Drug Forfeiture Fund – to account for funds received as a result of property and cash seizures by the Sheriff’s Department. Transportation Fund – to account for fee revenue generated for transportation. Multiple Grant Fund – to account for funds received as a result of multiple grants. Debt Service Fund- to account for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Special Purpose Local Option Sales Tax IV Fund – to account for property acquisition and construction of projects designated to be funded by revenue from local option sales tax collections for the years 2004 – 2008. Special Purpose Local Option Sales Tax V Fund – to account for property acquisition and construction of projects designated to be funded by revenue from local option sales tax collections for the years 2009-2013. Bond Fund – to account for the cost of the acquisition and furnishing of the City of Thomson/McDuffie County government center. ---PAGE BREAK--- 66 MCDUFFIE COUNTY NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 SPLOST VI Fund - The SPLOST VI Fund is used to account for proceeds from SPLOST VI. LMIG Fund – to account for the construction of transportation related projects funded by the LMIG grant. CDBG Fund- to account for the construction related to projects funded by the CDBG grant ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2023 67 Wireless Total Hotel/ Emergency Emergency Nonmajor Law Juvenile Multiple Transportation Drug Task Motel Telephone Landfill Drug Telephone Governmental Jail Library Probation Grant Grant Force Drug Court Tax System Surcharge Forfeiture System LMIG SPLOST IV SPLOST V SPLOST VI CDBG Funds Assets Assets Cash 298,617 $ 28,549 $ 47,425 $ 4,253 $ - $ 387,008 $ 59,921 $ - $ 51,545 $ 126,782 $ 205,096 $ 58,123 $ 100 $ 456 $ 57,017 $ 2,777,798 $ 80,113 $ 4,182,803 $ Investments - - - - - - - - - - - - - - - - - - Due from other funds - - - 862 100,175 120 - 40,331 - - - - - - - - - 141,488 Other receivables - - - 65,923 55 - - 18,062 - - - 75,789 - - - - - 159,829 Intergovernmental receivables 2,429 - - - 35,065 884 73,197 - - 1,058 - - - - - - - 112,633 Total Assets 301,046 $ 28,549 $ 47,425 $ 71,038 $ 135,295 $ 388,012 $ 133,118 $ 58,393 $ 51,545 $ 127,840 $ 205,096 $ 133,912 $ 100 $ 456 $ 57,017 $ 2,777,798 $ 80,113 $ 4,596,753 $ Liabilities and Fund Balances Liabilities Accounts payable 100 $ - $ - $ 1,223 $ 34,598 $ 100 $ 12,230 $ 5,580 $ 100 $ 7,097 $ - $ 34,970 $ 100 $ 390 $ 412 $ 351 $ 1,020 $ 98,271 $ Accrued liabilities - - - - 5,501 - - 901 - - - 11,048 - - - - - 17,450 Unearned revenue - - - - - - - - - - - - - - - - - - Due to other funds - 215 - 45,515 - - 165 - - 2,400 - - - - - - 121,288 169,583 Total Liabilities 100 215 - 46,738 40,099 100 12,395 6,481 100 9,497 - 46,018 100 390 412 351 122,308 285,304 Fund balances Capital Projects - - - - - - - - - - - - - 66 56,605 2,777,447 - 2,834,118 Special Revenues 300,946 28,334 47,425 24,300 95,196 387,912 120,723 51,912 51,445 118,343 205,096 87,894 - - - - (42,195) 1,477,331 Debt service - - - - - - - - - - - - - - - - - - Total Fund Balances 300,946 28,334 47,425 24,300 95,196 387,912 120,723 51,912 51,445 118,343 205,096 87,894 - 66 56,605 2,777,447 (42,195) 4,311,449 Total Liabilities and Fund Balances 301,046 $ 28,549 $ 47,425 $ 71,038 $ 135,295 $ 388,012 $ 133,118 $ 58,393 $ 51,545 $ 127,840 $ 205,096 $ 133,912 $ 100 $ 456 $ 57,017 $ 2,777,798 $ 80,113 $ 4,596,753 $ Special Revenue Funds Capital Projects Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 68 Wireless Total Hotel/ Emergency Emergency Nonmajor Law Juvenile Multiple Transportation Drug Task Motel Telephone Landfill Drug Telephone Governmental Jail Library Probation Grant Grant Force Drug Court Tax System Surcharge Forfeiture System LMIG SPLOST IV SPLOST V SPLOST VI CDBG Funds Revenues Fees for services - $ - $ - $ - $ - $ - $ 10,220 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10,220 $ Fines and forfeitures 58,883 11,395 160 - - 26,890 - - - - - - - - - - - 97,328 Intergovernmental - - - 131,208 393,584 - 146,825 - - - 50,489 698,204 508,772 - - - 122,492 2,051,574 Interest income - 406 - - - - - - - - 61 - - - 20 93,855 - 94,342 Other - 1,685 - - - - - 713 - - - 84,928 - - - - - 87,326 Taxes - - - - - - - 318,297 - - - 307 - - - - - 318,604 Total Revenues 58,883 13,486 160 131,208 393,584 26,890 157,045 319,010 - - 50,550 783,439 508,772 - 20 93,855 122,492 2,659,394 Expenditures Current Intergovernmental - - - - - - - - - - - - - - - - - - General government - - - - - - - - - - - - - - - - - - Public safety 37,107 - - - - - 129,905 - - - 4,890 765,856 - - - 7,429 - 945,187 Public works - - - 132,207 453,360 - - - - 43,343 - - - - - 351 27,796 657,057 Culture and recreation - - - - - - - - - - - - - - - - - - Other - - - - - - - - - - - - - 390 312 - - 702 Health and welfare - - - - - 9,218 - - - - - - - - - - - 9,218 Economic development - - - - - - - 282,192 - - - - - - - - - 282,192 Judicial - 13,861 - - - - - - - - - - - - - - - 13,861 Capital outlay - General government - - - - - - - - - - - - - - - - - - Public works - - - - - - - - - - 508,772 - - - 19,487 528,259 Public safety 14,488 - - - - - - - - - - 5,500 - - - - - 19,988 Health and welfare - - - - - - - - - - - - - - - - - - Culture and recreation - - - - - - - - - - - - - - - 48,436 - 48,436 Economic development - - - - - - - - - - - - - - - - - - Debt Service: - Principal - - - - - - - - - - - - - - - - - - Interest - - - - - - - - - - - - - - - - - - Total Expenditures 51,595 13,861 - 132,207 453,360 9,218 129,905 282,192 - 43,343 4,890 771,356 508,772 390 312 56,216 47,283 2,504,900 Excess (deficiency) of revenues over expenditures 7,288 (375) 160 (999) (59,776) 17,672 27,140 36,818 - (43,343) 45,660 12,083 - (390) (292) 37,639 75,209 154,494 - Transfers in - - - - 147,090 - - - - 42,650 - - - - - - - 189,740 Transfers out - - - - (6,865) - (9,571) (85,502) - (13,245) - - - - - - - (115,183) Net Change 7,288 (375) 160 (999) 80,449 17,672 17,569 (48,684) - (13,938) 45,660 12,083 - (390) (292) 37,639 75,209 229,051 FUND BALANCES, BEGINNING OF YEAR 293,658 28,709 47,265 25,299 14,747 370,240 103,154 100,596 51,445 132,281 159,436 75,811 - 456 56,897 2,739,808 (117,404) 4,082,398 FUND BALANCES, END OF YEAR 300,946 $ 28,334 $ 47,425 $ 24,300 $ 95,196 $ 387,912 $ 120,723 $ 51,912 $ 51,445 $ 118,343 $ 205,096 $ 87,894 $ - $ 66 $ 56,605 $ 2,777,447 $ (42,195) $ 4,311,449 $ Special Revenue Funds Capital Projects Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL JAIL FUND FOR THE YEAR ENDED DECEMBER 31, 2023 69 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 55,500 $ 55,500 $ 62,027 $ 6,527 $ Prior year 64,850 64,850 - (64,850) Total Revenues 120,350 120,350 62,027 (58,323) Expenditures Public safety 120,350 120,350 52,533 (67,817) Capital outlay - - - - Total Expenditures 120,350 120,350 52,533 (67,817) Net Change in Fund Balance - $ - $ 9,494 9,494 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (2,206) Fund Balance, beginning of year 293,658 Fund Balance, end of year 300,946 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LAW LIBRARY FUND FOR THE YEAR ENDED DECEMBER 31, 2023 70 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 18,500 $ 18,500 $ 13,079 $ (5,421) $ Interest income 15 15 406 391 Prior year - - - - Total Revenues 18,515 18,515 13,485 (5,030) Expenditures General government 18,515 18,515 13,861 (4,654) Total Expenditures 18,515 18,515 13,861 (4,654) Net Change in Fund Balance - $ - $ (376) (376) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 28,709 Fund Balance, end of year 28,333 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL JUVENILE PROBATION FUND FOR THE YEAR ENDED DECEMBER 31, 2023 71 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 200 $ 200 $ 160 $ (40) $ Total Revenues 200 200 160 (40) Expenditures Public safety 200 200 - (200) Total Expenditures 200 200 - (200) Net Change in Fund Balance - $ - $ 160 160 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 47,265 Fund Balance, end of year 47,425 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG TASK FORCE FUND FOR THE YEAR ENDED DECEMBER 31, 2023 72 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 23,500 $ 23,500 $ 27,848 $ 4,348 $ Other - - - - Prior year 7,850 7,850 - (7,850) Total Revenues 31,350 31,350 27,848 (3,502) Expenditures Capital outlay - - - - Public safety 11,000 11,000 9,218 (1,782) Total Expenditures 11,000 11,000 9,218 (1,782) Other Financing Sources Transfers 20,350 20,350 - (20,350) Net Change in Fund Balance 40,700 $ 40,700 $ 18,630 (22,070) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (957) Fund Balance, beginning of year 370,239 Fund Balance, end of year 387,912 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL HOTEL/MOTEL TAX FUND FOR THE YEAR ENDED DECEMBER 31, 2023 73 Variance Original Final Over Budget Budget Actual (Under) Revenues Taxes 300,000 $ 300,000 $ 320,257 $ 20,257 $ Other - - 712 712 Prior year 600 67,022 - (67,022) Total Revenues 300,600 367,022 320,969 (46,053) Expenditures General government 215,098 281,520 281,520 Total Expenditures 215,098 281,520 281,520 Other Financing Sources Transfers (85,502) (85,502) (85,502) - Net Change in Fund Balance - $ - $ (46,052) (46,052) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (2,632) Fund Balance, beginning of year 100,596 Fund Balance, end of year 51,912 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL EMERGENCY TELEPHONE SYSTEM FUND FOR THE YEAR ENDED DECEMBER 31, 2023 74 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 51,000 $ 51,000 $ - $ (51,000) $ Intergovernmental - - - - Prior year - - - - Total Revenues 51,000 51,000 - (51,000) Expenditures Public safety 51,000 51,000 - (51,000) Total Expenditures 51,000 51,000 - (51,000) Other Financing Sources Transfers from General Fund - - - - Net Change in Fund Balance - $ - $ - - $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities Fund Balance, beginning of year 51,445 Fund Balance, end of year 51,445 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LANDFILL SURCHARGE FUND FOR THE YEAR ENDED DECEMBER 31, 2023 75 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 62,210 $ 62,210 $ 55,291 $ (6,919) $ Prior year - - - - Total Revenues 62,210 62,210 55,291 (6,919) Expenditures Other 62,210 62,210 53,409 (8,801) Capital outlay - - - - Total Expenditures 62,210 62,210 53,409 (8,801) Other Financing Sources Transfers - - - - Net Change in Fund Balance - - 1,883 1,883 Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (15,821) Fund Balance, beginning of year 132,281 Fund Balance, end of year 118,343 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL WIRELESS EMERGENCY TELEPHONE SYSTEM FUND FOR THE YEAR ENDED DECEMBER 31, 2023 76 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for Services 463,500 $ 463,500 $ 463,255 $ (245) $ Intergovernmental 388,784 388,754 324,615 (64,139) Prior year 70,000 70,000 - (70,000) Total Revenues 922,284 922,254 787,870 (70,000) Expenditures Public Safety 922,254 922,254 767,438 (154,816) Total Expenditures 922,254 922,254 767,438 (154,816) Net Change in Fund Balance 30 $ - $ 20,432 20,432 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (8,349) Fund Balance, beginning of year 75,811 Fund Balance, end of year 87,894 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG FORFEITURE FUND FOR THE YEAR ENDED DECEMBER 31, 2023 77 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal 7,000 $ 7,000 $ 10,808 $ 3,808 $ State 2,000 2,000 39,680 37,680 Interest 10 10 61 51 Prior year - - - - Total Revenues 9,010 9,010 50,549 41,539 Expenditures Public safety 9,010 9,010 4,890 (4,120) Total Expenditures 9,010 9,010 4,890 (4,120) Net Change in Fund Balance - $ - $ 45,659 45,659 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 159,436 Fund Balance, end of year 205,095 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LMIG FUND FOR THE YEAR ENDED DECEMBER 31, 2023 78 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 500,000 $ 508,773 $ 508,772 $ $ Total Revenues 500,000 508,773 508,772 Expenditures Public works 500,000 508,773 508,772 Total Expenditures 500,000 508,773 508,772 Net Change in Fund Balance - $ - $ - - $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year - Fund Balance, end of year - $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG COURT FOR THE YEAR ENDED DECEMBER 31, 2023 79 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 169,234 $ 169,234 $ 126,509 $ (42,725) $ Other - - - - Prior year - - - - Total Revenues 169,234 169,234 126,509 (42,725) Expenditures Capital outlay - - - - Public safety 183,584 183,584 129,104 (54,480) Total Expenditures 183,584 183,584 129,104 (54,480) Other Financing Sources Transfers 14,350 14,350 (9,571) (23,921) Net Change in Fund Balance - $ - $ (12,166) (12,166) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 29,735 Fund Balance, beginning of year 103,154 Fund Balance, end of year 120,723 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL TRANSPORTATION FUND FOR THE YEAR ENDED DECEMBER 31, 2023 80 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 16,025 $ 16,025 $ 17,578 $ 1,553 $ Intergovernmental 426,817 432,708 531,346 98,638 Total Revenues 442,842 448,733 548,924 100,191 Expenditures Health and welfare 442,842 448,733 448,708 (25) Total Expenditures 442,842 448,733 448,708 (25) Other Financing Sources Transfers - - - - Net Change in Fund Balance - $ - $ 100,216 100,216 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (19,767) Fund Balance, beginning of year 14,747 Fund Balance, end of year 95,196 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL MULTIPLE GRANT FUND FOR THE YEAR ENDED DECEMBER 31, 2023 81 Variance Original Final Over Budget Budget Actual (Under) Revenues Grant revenues 59,323 $ 148,216 $ 140,467 $ (7,749) $ Total Revenues 59,323 148,216 140,467 (7,749) Expenditures Capital outlay - - - - Grant expenditures 59,323 148,216 132,169 (16,047) Total Expenditures 59,323 148,216 132,169 (16,047) Net Change in Fund Balance - $ - $ 8,298 8,298 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (9,297) Fund Balance, beginning of year 25,299 Fund Balance, end of year 24,300 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL AMERICAN RESCUE FUND FOR THE YEAR ENDED DECEMBER 31, 2023 82 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal 4,139,606 $ 4,139,606 $ - $ (4,139,606) $ Interest 20,000 20,000 215,826 195,826 - - - - Total Revenues 4,159,606 4,159,606 215,826 (3,943,780) Expenditures Health and welfare 4,159,606 4,159,606 90 (4,159,516) Total Expenditures 4,159,606 4,159,606 90 (4,159,516) Net Change in Fund Balance - $ - $ 215,736 215,736 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (101) Fund Balance, beginning of year 4,199,272 Fund Balance, end of year 4,414,907 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL CDBG FUND FOR THE YEAR ENDED DECEMBER 31, 2023 83 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 1,300,000 $ 1,300,000 $ 136,430 $ (1,163,570) $ Total Revenues 1,300,000 1,300,000 136,430 (1,163,570) Expenditures Capital outlay 1,300,000 1,300,000 46,563 (1,253,437) Total Expenditures 1,300,000 1,300,000 46,563 (1,253,437) Net Change in Fund Balance - $ - $ 89,867 89,867 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 148,260 Fund Balance, beginning of year (117,404) Fund Balance, end of year 120,723 $ ---PAGE BREAK--- 84 FIDUCIARY FUNDS Agency funds are used to account for assets that are held by the government as the agent for individuals, private organizations, other governments and/or other funds. Clerk of Court – to account for the receipt and disbursement of court ordered fines and fees made on behalf of third parties. Probate Court – to account for the receipt and disbursement of funds held on behalf of others and fees for services provided under State law. Sheriff – to account for the receipt and disbursement of fees and services provided under State law. Tax Commissioner - to account for tax billings, collections, and remittances held by the Tax Commissioner on behalf of other governmental agencies. Magistrate’s Court – to account for the receipt and disbursement of bonds and court ordered fines and fees made on behalf of third parties. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING BALANCE SHEET FIDUCIARY FUNDS DECEMBER 31, 2023 85 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Assets Cash 856,674 $ 45,302 $ 98,496 $ 2,568,613 $ 31,554 $ 3,600,639 $ Total Assets 856,674 $ 45,302 $ 98,496 $ 2,568,613 $ 31,554 $ 3,600,639 $ Restricted for individuals, organizations, other governments Due to General Fund 30,010 $ 18,807 $ 26,225 $ 150,507 $ 3,155 $ 228,704 $ Due to others 826,664 26,495 72,271 2,418,106 28,399 3,371,935 Total Liabilities and Net Position 856,674 $ 45,302 $ 98,496 $ 2,568,613 $ 31,554 $ 3,600,639 $ Custodial Funds Other Assets Net Position ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 86 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Cash Balance at beginning of year 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ Additions 1,281,690 759,788 421,118 27,401,434 167,814 30,031,844 Deletions 850,100 770,131 436,308 25,355,097 161,242 27,572,878 Balance at end of year 856,674 45,302 98,496 2,568,613 31,554 3,600,639 Total Assets 856,674 $ 45,302 $ 98,496 $ 2,568,613 $ 31,554 $ 3,600,639 $ Restricted for individuals, organizations, other governments Balance at beginning of year 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ Additions 1,281,690 759,788 421,118 27,401,434 167,814 30,031,844 Deletions 850,100 770,131 436,308 25,355,097 161,242 27,572,878 Balance at end of year 856,674 45,302 98,496 2,568,613 31,554 3,600,639 Total Liabilities and Net Position 856,674 $ 45,302 $ 98,496 $ 2,568,613 $ 31,554 $ 3,600,639 $ Custodial Funds Other Assets Net Position ---PAGE BREAK--- 87 This page left blank intentionally. ---PAGE BREAK--- 88 SUPPLEMENTARY INFORMATION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2004-2008 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 89 Project: SPLOST IV McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Percentage Estimated Revised Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously City of Thomson Ladder truck 517,000 517,000 517,000 - 517,000 100% Breathing appartus 65,000 64,242 64,242 - 64,242 100% T/E Project 260,000 260,000 259,212 259,212 100% Big Creek 2,515,000 3,370,550 3,370,550 - 3,370,550 100% Scada 175,000 143,273 143,273 - 143,273 100% Other city water/sewer projects 721,000 130,032 213,469 - 213,469 164% Development Authority Economic Development 1,900,000 1,710,250 1,491,752 - 1,491,752 87% Thomson Company 500,000 689,750 932,966 - 932,966 135% McDuffie County Boys & Girls Club 117,909 116,894 - 116,894 99% Water and Sewer 2,906,998 768,145 633,380 - 633,380 82% Airport 8,240 10,443 - 10,443 127% Road Construction and Improvements 2,721,482 2,795,178 2,748,493 2,748,493 98% Recreation 2,500,000 2,453,644 2,512,123 - 2,512,123 102% Technology 50,000 - - - - Land 25,621 25,709 - 25,709 100% Public Safety Pumpers 243,992 34,440 - - 0% Fire Station #1 1,044,114 1,086,477 1,179,433 - 1,179,433 109% Fire Station #6 - - - - Brush trucks - 61,340 61,340 - 61,340 100% Rescue Truck 61,340 - - - Information Technology 50,000 - - - Gear 520 47,810 59,938 59,938 125% Government Complex 1,600,000 2,514,038 2,524,871 2,524,871 100% Government Complex 100,000 101,552 97,255 - 97,255 96% Senior Citizens Center Senior Citizens Center 23,397 23,685 23,685 101% Department Family & Children Improvements 3,999 3,999 3,999 100% Advertising Costs 1,901 390 2,291 McDuffie County Hospital Ambulances 270,000 234,630 234,630 234,630 100% Cardiac monitor 41,928 41,928 41,928 100% Hospital Expansion 1,000,000 1,000,000 1,000,000 1,000,000 100% Town of Dearing Fire Station 25,000 25,000 25,000 100% Gym Renovations 78,331 78,331 78,331 100% Totals 19,201,446 $ 18,306,776 $ 18,371,817 $ 390 $ 18,372,207 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2009-2014 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 90 Project: SPLOST V McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously City of Thomson City Street Resurfacing 700,000 630,000 624,385 - 624,385 99% City Fire Engine 300,000 283,997 283,997 - 283,997 100% City Station #2 improvements 100,000 50,000 - - - 0% Skate Park 300,000 198,554 198,554 - 198,554 100% Walking Track 25,000 23,523 23,523 - 23,523 100% Water/Sewer Water Line Replacement 120,000 98,918 98,917 - 98,917 100% Sewer Plant Improvement 1,000,000 1,000,468 1,022,409 - 1,022,409 102% Usry Pond Improvement 750,000 - - - - 0% Augusta Road Plant Project 1,250,000 255,481 224,739 - 224,739 88% Raising Usry Pond Dam 690,000 - - - - 0% Big Creek 34,590 34,590 - 34,590 100% De-watering Project 988,276 988,278 - 988,278 100% Development Authority Land Development 250,000 75,000 111,922 - 111,922 149% Land Acquisition 250,000 75,000 - - - 0% Thomson Company Redevelopment 250,000 150,000 126,430 - 126,430 84% Infrastructure 150,000 240,000 293,917 - 293,917 122% Information Technology 50,000 50,000 68,174 - 68,174 136% Landscaping/Signage 50,000 10,000 - - - 0% McDuffie County Government Center Complex Government Center 11,510,428 12,229,377 10,189,507 - 10,189,507 83% Roads & Streets County Road Resurfacing 1,800,000 1,620,000 1,608,562 - 1,608,562 99% Airport Runway Overlay 200,000 160,000 169,269 - 169,269 106% Recreation Restrooms @ Sweetwater Park Football 75,000 71,712 71,712 71,712 100% Bleachers for Gym @ Sweetwater Park 57,000 42,594 42,594 42,594 100% Outdoor Bleachers Cover for Shade 75,000 - 0% Walking Track Improvements @ Sweetwater 60,000 14,709 14,709 14,709 100% Recreation other 690,000 150,673 167,927 167,927 111% Land Acquisition for City Parks 108,000 91,081 91,200 91,200 100% Information Technology New Computer Applications & Improvements 500,000 500,000 500,000 - 500,000 100% Public Safety EMS, 2 Ambulances 225,000 225,000 225,000 225,000 100% County Fire Engine 300,000 291,621 291,621 291,621 100% County Brush Truck 100,000 105,452 100,673 100,673 95% County Fire Service Truck 150,000 59,809 64,588 64,588 108% County Station #4 150,000 176,622 176,788 176,788 100% Advertising Costs 2,165 312 2,477 Banking fees 50 50 McDuffie County Hospital New Inpatient Unit (Partial for Debt Service) 3,000,000 500,000 500,000 500,000 100% Town of Dearing City Hall Playground Area & 78,816 78,816 78,816 100% Bill Eubanks Improvement 150,000 5,913 5,913 5,913 100% Totals 25,385,428 $ 20,487,186 $ 18,400,929 $ 312 $ 18,401,241 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2015-2020 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 91 Project: SPLOST VI McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously CITY OF THOMSON City HVAC, Lighting, Plumbing 96,000 96,000 0% City shop improvements 150,000 150,000 0% City fire protection equipment 400,000 400,000 0% Capital Equipment - City 140,000 140,000 0% Grant Match for storm water improvements 75,000 75,000 0% City Street Improvements/Equipment 715,040 715,040 248,906 248,906 35% Fire station facilities improvements 350,000 350,000 3,683 3,683 1% Water/Sewer Capital Equipment, Water and Sewer Distribution 80,000 80,000 51,525 51,525 64% Sewer Main Improvements and Grant Match 250,000 250,000 248,779 248,779 100% Vacuum Truck for clearing 150,000 150,000 125,142 125,142 83% Sewer plant improvements - 0% Sludge Dewatering 750,000 750,000 - 0% Headworks Improvements 350,000 350,000 - 0% Generator 75,000 75,000 - 0% DEVELOPMENT AUTHORITY Industrial Capital Improvements 500,000 500,000 0% Rock House Improvements 450,000 450,000 17,572 14,879 32,451 7% 0% MCDUFFIE COUNTY 0% Airport Airport Infrastructure improvements and grant match 150,000 150,000 48,077 48,077 32% Energy Efficiency Improvement Projects County HVAC, Lighting, Plumbing 204,000 204,000 100,000 7,429 107,429 53% Government Center Complex Government Center Debt 11,556,151 11,556,151 9,293,635 9,293,635 80% Information Technology SCADA Upgrades 75,000 75,000 75,000 75,000 100% Computer applications and improvements 100,000 100,000 175,000 175,000 175% County Maintenance Shop County shop improvements 160,000 160,000 0% Public Safety Law enforcement center improvements 1,900,000 1,900,000 1,900,000 1,900,000 100% Fire stations 100,000 100,000 205,076 205,076 205% County Fire Protection equipment 800,000 800,000 895,045 895,045 112% Ambulances 250,000 250,000 213,480 213,480 85% Animal Shelter 40,000 40,000 0% Air Compressor 45,000 45,000 43,468 43,468 0% Recreation Recreation Facilities 400,000 400,000 412,660 412,660 103% Recreation Equipment 215,000 215,000 106,431 33,557 139,988 65% Roads/Streets Capital Equipment - County 300,000 300,000 0% County Road Improvements/Equipment 1,781,960 1,781,960 902,069 902,069 51% Solid Waste Current station replacement 100,000 100,000 0% Inert landfill improvements 200,000 200,000 0% TOWN OF DEARING Dearing fire equipment 15,000 15,000 0% Dearing recreation 77,000 77,000 0% Advertising Costs 2,462 351 2,813 TOTALS 23,000,151 $ 23,000,151 $ 15,068,010 $ 56,216 $ 15,124,226 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2021-2026 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 92 Project: SPLOST VII McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously Airport Projects Infrastructure Improvement and Grant Match 396,916 $ 396,916 $ - $ - $ - $ 0% Improvements to Hangar 100,000 100,000 - - - 0% Broadband Broadband Phase I 1,900,000 1,900,000 119,664 119,664 6% Wireless Infrastructure 2,800,000 2,800,000 32,507 40,754 73,261 3% 0% Community Development 0% Rock House 500,000 500,000 26,807 26,807 5% Archway Initiatives 625,000 625,000 - 0% Landscaping 125,000 125,000 - 0% RSVP Initiatives 125,000 125,000 - 0% Animal Shelter 150,000 150,000 - 0% Roof at Chamber Office 30,000 30,000 24,887 24,887 83% Campground Improvements 350,000 350,000 82,749 82,749 24% Economic Development Site Improvements/Expansion 2,501,499 2,501,499 1,066,339 3,750 1,070,089 43% Information Technology Backup System 70,000 70,000 70,000 70,000 100% Phone System 80,000 80,000 80,127 80,127 100% Security Appliances 25,000 25,000 27,901 27,901 112% Network Upgrades 200,000 200,000 199,534 199,534 100% Wireless System Upgrades 30,000 30,000 29,573 29,573 99% Public Safety Facility Improvements & Expansion 1,500,000 1,500,000 5,800 33,243 39,043 3% Fire Apparatus 2,125,000 2,125,000 627,172 627,172 0% Ambulances 725,000 725,000 233,915 277,379 511,294 71% Public Works Equipment City & County Shared Equipment 725,000 725,000 - 0% City Equipment 215,000 215,000 139,357 139,357 65% County Equipment 620,000 620,000 - 0% Recreation Dearing Recreation Facility Improvements 100,000 100,000 - 0% Handicap Playground 125,000 125,000 - 0% Recreation Facilities 1,500,000 1,500,000 179,986 1,512,004 1,691,990 113% Government Center Park 1,000,000 1,000,000 - 0% Solid Waste Expansion of existing transfer station 1,800,000 1,800,000 477,419 477,419 27% Water/Sewer Infrastructure Upgrades 4,000,000 4,000,000 150,750 99,747 250,497 6% Advertising Costs 626 309 935 TOTALS 24,443,415 $ 24,443,415 $ 2,331,165 $ 3,211,133 $ 5,542,298 $ 23% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF PROJECT EXPENDITURES AND SOURCE AND APPLICATION OF FUNDS FOR COMMUNITY DEVELOPMENT BLOCK GRANTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 93 Project: Public Facilities: Road Multi-Activity Sewer and Housing Improvements Grant Number: Commencement of Project : Estimated Original Percentage Estimated Prior Current of Purpose Cost Years Year Total Completion Improvements 1,000,000 $ 15,388 $ - $ 15,388 $ 2% Community Development Block Grant 19b-y-094-1-6077 October, 2019 ---PAGE BREAK--- 94 This page left blank intentionally. ---PAGE BREAK--- 3730 Executive Center Drive, Suite B www.bairdgroupcpa.com Tel: [PHONE REDACTED] Augusta, GA 30907 Fax: [PHONE REDACTED] 95 INDEPENDENT AUDITORS’ 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 To the Board of Commissioners McDuffie County, Georgia We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of McDuffie County, Georgia, as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise McDuffie County, Georgia ’s basic financial statements and have issued our report thereon dated June 28, 2024. Our report includes a reference to other auditors who audited the financial statements of McDuffie County Health Department, as described in our report on the McDuffie County, Georgia’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. In planning and performing our audit of the financial statements, we considered McDuffie 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 the McDuffie County, Georgia 's internal control. Accordingly, we do not express an opinion on the effectiveness of the McDuffie 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. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether McDuffie County, Georgia’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. ---PAGE BREAK--- 96 McDuffie County, Georgia Page 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. The Baird Audit Group, LLC Certified Public Accountants Augusta, Georgia June 28, 2024 ---PAGE BREAK--- 97 COMPLIANCE SECTION ---PAGE BREAK--- MCDUFFIE COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2023 98 Federal Grantor/ Federal Grantor/ Pass Thru Grantor/ CFDA Contract Program Title Number Number Expenditures U.S. Department of Transportation (Passed through Georgia Department of Transportation) Transit Operating Assistance 20.509 2086-00-25-8202.0452 49,587 $ Transit Operating Assistance 20.509 2086-00-25-8202.0452 111,816 161,403 Transportation Services 20.509 T0066181- FY23 20,560 - 20,560 Total U.S. Department of Transportation 181,963 U.S. Department of Agriculture A Community Facilties Grant 10-760 10-094-586002987 50,000 50,000 Total U.S. Department of Agriculture 50,000 U.S. Department of Health & Human Services (Passed through Economic Opportunities Authority) Community Block Grant/EOA Nutrition 93.569 FY23 12,142 Community Block Grant/EOA Nutrition 93.569 FY24 8,330 20,472 (Passed through Georgia Department of Public Heath) Georgia Confinement Facilities 93.323 40500-CVD-19-85 3,817 Total U.S. Department of Health & Human Services 24,289 U.S. Department of Homeland Security (Passed through Georgia Emergency Management) Assistance to Firefighters Grant 91.039 EMW-2022-FG-05985 175,041 Total U.S. Department of Homeland Security 175,041 Direct Program Federal Asset Forfeiture Program 4,890 Total U.S. Department of Justice 4,890 436,183 $ Total Expenditures of Federal Awards ---PAGE BREAK--- 99 MCDUFFIE COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2023 I. Summary of Auditors' Results A. The auditors' report expresses an unmodified opinion on the financial statements of McDuffie County, Georgia. B. No significant deficiencies were disclosed during the audit of the financial statements. C. No instances of noncompliance material to the financial statements of McDuffie County, Georgia, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. D. No significant deficiencies in internal controls over financial reporting were disclosed during the audit.