Document Thomson-Mcduffie_doc_3d7be47638

ANNUAL FINANCIAL REPORT MCDUFFIE COUNTY, GEORGIA YEAR ENDED DECEMBER 31, 2022 ---PAGE BREAK--- ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2022 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, 2022 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, 2022 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 96 Schedule of Expenditures of Federal Awards 99 Findings and Questioned Costs 100 ---PAGE BREAK--- (This page is intentionally left blank.) ---PAGE BREAK--- 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, 2022, 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 $931,179 and total net position of $243,742 as of June 30, 2022, and total revenues of $686,223 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, 2022, 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 14, 2023, 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 14, 2023 ---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, 2022 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, 2022. We encourage readers to consider the information presented in this analysis along with the complete financial statements and notes in the 2022 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, CDBG, SPLOST VII, TSPLOST, American Rescue Plan and Other Governmental Funds. 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, Internal Shop and Lawn Care Services. 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 57. 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 $73 million for December 31, 2022 compared to $62 in December 31, 2021. 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 balance of unrestricted net position of 12% in 2022, the same as in 2021, 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 2022 and 2021. ---PAGE BREAK--- 9 MCDUFFIE COUNTY NET POSITION DECEMBER 31, 2022 AND 2021 2022 2021 2022 2021 2022 2021 Assets Current and other assets 29,422,511 $ 23,842,857 $ 2,518,200 $ 1,610,746 $ 31,940,711 $ 25,453,603 $ Capital assets, net 48,609,038 42,853,188 3,403,393 2,879,150 52,012,431 $ 45,732,338 $ Total assets 78,031,549 66,696,045 5,921,593 4,489,896 83,953,142 71,185,941 Deferred Outflows of Resources Deferred outflows related to pension 2,591,941 928,473 - - 2,591,941 928,473 Total deferred outflows of resources 2,591,941 928,473 - - 2,591,941 928,473 Total assets and deferred outflows of resources 80,623,490 67,624,518 5,921,593 4,489,896 86,545,083 72,114,414 Liabilities Current and other liabilities 1,761,872 2,006,978 1,141,564 825,704 2,903,436 2,832,682 Long-term liabilities 4,283,762 1,440,137 141,856 164,533 4,425,618 1,604,670 Total liabilities 6,045,634 3,447,115 1,283,420 990,237 7,329,054 4,437,352 Deferred Inflows of Resources Deferred inflows related to pension 1,043,224 1,590,899 - - 1,043,224 1,590,899 Total deferred inflows of resources 1,043,224 1,590,899 - - 1,043,224 1,590,899 Total liabilities and deferred inflows of resources 7,088,858 5,038,014 1,283,420 990,237 8,372,278 6,028,251 Net Position Invested in capital assets, net related debt 48,691,156 42,853,188 3,403,393 2,879,150 52,094,549 45,732,338 Restricted - Capital Projects 15,134,456 7,306,542 - - 15,134,456 7,306,542 Restricted - Special Revenues 1,285,237 1,362,742 - - 1,285,237 1,362,742 Restricted - Debt Service - 3,487,114 - - - 3,487,114 Unrestricted 8,505,901 7,576,918 1,234,780 620,509 9,740,681 8,197,427 Total net position 73,616,750 $ 62,586,504 $ 4,638,173 $ 3,499,659 $ 78,254,923 $ 66,086,163 $ Totals Business-Type Activities Governmental Activities ---PAGE BREAK--- 10 Changes in Net Position Governmental Activities Governmental activities increased the Government’s net position by $11,018,650. Listed below are some of the key elements of this change: Governmental Revenues: The main source of revenues for governmental activities is property tax collections which represented 23% of the total governmental revenues. There were increases in revenue for excise taxes, hotel taxes, license and permits. The sales taxes amounts on the Statement of Activities includes the Special Purpose Local Option Sales Tax, which was not reflected in prior years. Governmental Functional Expenses: As reflected in the changes for net position, the Government increased its spending by $957,731, above the previous year. During 2022, expenditures were higher than the previous year due to inflation. Business-type activities: Business-type activities increased the Government’s net position by $1,150,110. This increase is partially due to the transfer of assets purchased by Special Purpose Local Option Sales Tax and transferred to the Emergency Medical Services fund. The change in net position for Emergency Medical Services was an increase of $1,138,424, a decrease of $116,857 for Solid Waste, and an increase of $131,279 for Big Hart and Raysville Campgrounds. Internal service funds for internal shop and lawn care reflected decreases of $2,085 and $651, respectively. . ---PAGE BREAK--- MCDUFFIE COUNTY CHANGES IN NET POSITION 11 2022 2021 2022 2021 2022 2021 Revenues Program Revenues: Charges for Services 1,918,616 2,141,346 - - 1,918,616 2,141,346 Solid Waste - 1,962,047 1,637,615 1,962,047 1,637,615 EMS - - 4,292,171 3,632,838 4,292,171 3,632,838 Campgrounds - - 339,198 372,802 339,198 372,802 Operating Grants & Contributions 3,201,994 4,592,228 23,315 21,165 3,225,309 4,613,393 Capital Grants & Contributions 2,096,570 9,486,962 9,800 - 2,106,370 9,486,962 Total Program Revenues 7,217,180 16,220,536 6,626,531 5,664,420 13,843,711 21,884,956 General Revenues: Property taxes 5,445,837 4,870,465 - - 5,445,837 4,870,465 Sales taxes 16,105,216 4,825,042 - - 16,105,216 4,825,042 Franchise taxes 88,570 87,206 - - 88,570 87,206 Intangible taxes - - - - - Hotel/motel taxes 306,152 272,556 - - 306,152 272,556 Alcoholic beverage taxes 236,153 228,042 - - 236,153 228,042 Financial institution tax - - - - Real estate transfer tax - - - - Energy Excise Tax 332,946 234,952 - - 332,946 234,952 Timber tax 37,991 46,923 - - 37,991 46,923 Insurance premium tax - - 1,639,653 1,107,214 1,639,653 1,107,214 Interest income 102,115 11,529 9,697 326 111,812 11,855 Payments in lieu of taxes 41,944 40,945 - - 41,944 40,945 Licences and permits 319,110 269,344 1,817 1,758 320,927 271,102 Motor Vehicle tax 75,876 86,926 - - 75,876 86,926 Miscellaneous taxes 379,195 450,383 - - 379,195 450,383 Total General Revenues 23,471,105 11,424,313 1,651,167 1,109,298 25,122,272 12,533,611 Total Revenue 30,688,285 27,644,849 8,277,698 6,773,718 38,965,983 34,418,567 Expenses: General government 5,144,537 6,161,941 - - 5,144,537 6,161,941 Public Safety 5,462,469 5,044,646 - - 5,462,469 5,044,646 Public Works 4,021,852 3,797,564 - - 4,021,852 3,797,564 Health & welfare 360,175 387,263 - - 360,175 387,263 Solid Waste 2,032,136 1,612,793 2,032,136 1,612,793 EMS - - 5,643,165 6,493,162 5,643,165 6,493,162 Campgrounds - - 195,871 176,205 195,871 176,205 Internal shop - - 178,252 - 178,252 - Lawn care services - - 76,373 - 76,373 - Economic Development 1,380,535 225,555 - - 1,380,535 225,555 Culture & recreation 988,971 860,949 - - 988,971 860,949 Judicial 1,312,887 1,235,777 - - 1,312,887 1,235,777 Interest - - - - - - Total Expenses 18,671,426 17,713,695 8,125,797 8,282,160 26,797,223 25,995,855 Transfers Out (998,209) (4,438) 998,209 4,438 - - Change in Assets 11,018,650 9,926,716 1,150,110 (1,504,004) 12,168,760 8,422,712 Ending net position 73,616,750 62,586,504 4,638,173 3,499,659 78,254,923 66,086,163 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 $131,279. 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 $116,857 due to increased pricing in the contract for transport and disposal charges. Rates at the facility will be increased in the upcoming year to cover the increased overhead costs. The illustration below compares the revenues and expenses for 2022 and 2021. BUSINESS-TYPE ACTIVITIES 2022 Emergency Medical Services was added in 2020 as a new business-type activity. The total expenses for the year was $5,643,165 and charges for services was $4,293,988. This fund received additional revenues in the amount of $1,682,465 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 2022 2021 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Revenue Expenses Solid Waste Operations 2022 2021 ---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, CDBG, SPLOST VII, TSPLOST and American Rescue Plan. As of December 31, 2022, McDuffie County governmental funds, which include the major funds and various other funds, reported combined fund balances of $27,552,770. The General Fund is the chief operating fund of the County. At December 31, 2022, total fund balance was $11,133,077. The fund balance of McDuffie County has increased by $1,567,257 since 2021. The American Rescue Funds and Community Development Block Grant Program (CDBG) are major funds. 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 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Revenue Expenses Emergency Medical Services 2022 2021 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 15 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 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, 2022, total net position amounted to $4,638,173 for enterprise funds compared to $3,499,659 at December 31, 2021. 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 $1,138,424 included in that amount is $805,136 of assets purchased by SPLOST funds. Big Hart and Raysville Campgrounds had a profit of $131,279. The Solid Waste fund reflected a loss for the year of $116,857 due to increase pricing with the transportation and disposal costs. The expenses for the facility have increased by 26% for the current year. Capital Assets and Debt Administration Capital Assets McDuffie County has invested $48,609,038 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 $16,987,900. This expansion will be near the Hospital, Piedmont McDuffie and it will 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. 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. The financial statements includes a new auditing standard, which requires entities to report their financial information pertaining to their lease agreements. These amounts are listed on the Statement of Net Position underneath capital assets and in Note 6 of the financial statements. McDuffie County has a liability for leased assets of $82,118 which is for the lease of copiers. . 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) 2022 2021 2022 2021 2022 2021 Assets Land 3,588,475 $ 3,588,475 $ 319,649 $ 319,649 $ 3,908,124 $ 3,908,124 $ Buildings 39,377,416 39,227,541 2,696,561 2,696,561 42,073,977 41,924,102 Machinery and Equipment 8,878,449 9,953,926 4,189,373 3,630,897 13,067,822 13,584,823 Infrastructure 51,492,105 50,417,678 - - 51,492,105 50,417,678 Construction In Progress 12,449,012 5,697,525 332,551 298,988 12,781,563 5,996,513 Right of use - leased assets 82,118 - - - 82,118 - Total assets 115,867,575 108,885,145 7,538,134 6,946,095 123,405,709 115,831,240 Accumulated Depreciation (67,176,419) (66,031,957) (466,614) (40,669,445) (67,643,033) (106,701,402) Total assets 48,691,156 42,853,188 7,071,520 2,879,150 55,762,676 45,732,338 Governmental Activities Business-Type Activities Totals Listed below are some of the significant capital asset transactions which occurred in 2022:  Capital assets purchased during 2022 included two vehicles for the Sheriff’s Office totaling $72,652, two vans to be used for County services $68,000, other capital assets totaling $63,103.  Building upgrades were made to the Animal Shelter in the amount of $16,730 and Senior Citizens Center $56,224. A fueling station was installed at the Sheriff’s Office totaling $76,921 from the current year funds and $44,471 from prior year funds.  Local maintenance and Improvement Grant funded a portion of road resurfacing in the amount of $495,244.  T-SPLOST funded a portion of road resurfacing in the amount of $579,183.  SPLOST VI and SPLOST VII funded a telephone system upgrade $148,574, scoreboards and a lawnmower for the Recreation Facility $34,518 and a bulldozer for the Public Works Department $195,406. ---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, 2022. Note 8 of the financial statements provide a summary of the long-term liability transactions for the year ending 2022. McDuffie County Outstanding Debt Fiscal Years 2022 and 2021 2022 2021 2022 2021 2022 2021 Accrued compensated absences 468,979 $ 448,667 $ 15,728 $ 15,788 $ 484,707 $ 464,455 $ Net pension liability 3,758,597 991,470 - - 3,758,597 991,470 Lease liability 82,118 - - - 82,118 - Postclosure costs - - 126,128 148,745 126,128 148,745 Total debt 4,309,694 1,440,137 141,856 164,533 4,451,550 1,604,670 Governmental Activities Business-Type 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 2022, McDuffie County issued permits for a Starbucks, Shine On Car Wash, AM/PM Convenient Store and Mavis Tire Shop. All of these permits were for new developments. Two buildings were renovated for a Big Lots and Harbor Freight. Two new manufacturing companies built additions to their current operations and a large nursery in the County added an addition to their facility. McDuffie County is currently experiencing an upward trend of economic growth. McDuffie County is making every effort to keep the unemployment rate low. The unemployment rate as of December, 2022 was 4.1% compared to December, 2021 of 5.2%. Budget Highlights for the Fiscal Year Ending December 31, 2022  The County was able to use the same millage rate as the previous budget year to balance the 2022 budget.  Big Hart and Raysville Campgrounds continues to be a tourist attraction for those wanting to enjoy the lake and outdoors with approximately 11,307 reservations made during 2022.  McDuffie County received American Rescue Plan Act Funds in the amount of $4,139,606, and a Broadband Infrastructure Grant in the amount of $3,817,531. These funds have been allocated for a county-wide broadband project. 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, 2022 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 25,108,712 $ 973,656 $ 26,082,368 $ 1,564,202 $ 675,217 $ Investments - - - - - Receivables Taxes 1,156,303 - 1,156,303 - - Accounts 570,768 1,453,533 2,024,301 1,079,767 8,861 A/R-Dept. of Public Health - - - - 22,050 Intergovernmental 1,543,856 - 1,543,856 - - Due from other funds 894,787 58,536 953,323 - - Due from external parties 148,085 - 148,085 - - Inventory - 32,475 32,475 - - Right of use - asset - - - - - Capital assets not being depreciated: Construction in progress 12,449,012 332,551 12,781,563 - - Land 3,588,475 319,649 3,908,124 4,876,676 - Capital assets (net of accumulated depreciation) Buildings and improvements 23,178,576 1,615,570 24,794,146 1,601,887 - Furniture, fixtures, and equipment 2,212,083 1,135,623 3,347,706 8,662 14,089 Infrastructure 7,180,892 - 7,180,892 - - Right of use - leased assets 82,118 - 82,118 - - Total assets 78,113,667 5,921,593 84,035,260 9,131,194 720,217 Deferred Outflows of Resources Deferred outflows related to pension 2,591,941 - 2,591,941 - 210,962 Total deferred outflows of resources 2,591,941 - 2,591,941 - 210,962 Total assets and deferred outflows of resources 80,705,608 5,921,593 86,627,201 9,131,194 931,179 Liabilities Accounts payable 1,145,404 529,119 1,674,523 - 6,394 A/P-DPH - - - - - Accrued liabilities 181,723 67,935 249,658 - - Due to other funds 408,813 544,510 953,323 - - Noncurrent liabilities Due within one year Bond payable - - - - - Note payable - - - 63,149 - Lease obligation current 25,932 - 25,932 - - Due in more than one year Note payable - - - 243,622 - Bond payable - - - - - Lease obligation non - current 56,186 - 56,186 - - Closure and post closure costs payable - 126,128 126,128 - - Compensated absences payable 468,979 15,728 484,707 - 56,282 Net OPEB liability - - - - (79,496) Net Pension liabilities 3,758,597 - 3,758,597 - 283,615 Total liabilities 6,045,634 1,283,420 7,329,054 306,771 266,795 Deferred Inflows of Resources Deferred inflows related to pension 1,043,224 - 1,043,224 - 420,642 Total deferred inflows of resources 1,043,224 - 1,043,224 - 420,642 Total liabilities and deferred inflows of resources 7,088,858 1,283,420 8,372,278 306,771 687,437 Net Position Net investment in capital assets 48,691,156 3,403,393 52,094,549 6,180,454 14,089 Restricted for: Capital projects 15,134,456 - 15,134,456 - - Special revenues 1,285,237 - 1,285,237 - - Debt service - - - - - Unrestricted 8,505,901 1,234,780 9,740,681 2,643,969 229,653 Total net position 73,616,750 $ 4,638,173 $ 78,254,923 $ 8,824,423 $ 243,742 $ Primary Government Component Units ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2022 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 5,144,537 $ 676,716 $ 3,188,056 $ 2,096,570 $ 816,805 $ - $ 816,805 $ - $ - $ Public safety 5,462,469 - 13,938 - (5,448,531) - (5,448,531) - - Public works 4,021,852 - - - (4,021,852) - (4,021,852) - - Health and welfare 360,175 - - - (360,175) - (360,175) - - Culture and recreation 988,971 98,506 - - (890,465) - (890,465) - - Economic development 1,380,535 265,443 - - (1,115,092) - (1,115,092) - - Judicial 1,312,887 877,951 - - (434,936) - (434,936) - - Total governmental activities 18,671,426 1,918,616 3,201,994 2,096,570 (11,454,246) - (11,454,246) - - Business-type activities: Solid Waste 2,032,136 1,962,047 - - - (70,089) (70,089) - - EMS 5,643,165 4,292,171 23,315 9,800 - (1,317,879) (1,317,879) - - Big Hart & Raysville Campgrounds 195,871 339,198 - - - 143,327 143,327 - - Internal Shop 178,252 - - - - (178,252) (178,252) - - Lawn care services 76,373 - - - - (76,373) (76,373) - - Total business-type activities 8,125,797 6,593,416 23,315 9,800 - (1,499,266) (1,499,266) - - Total primary government 26,797,223 $ 8,512,032 $ 3,225,309 $ 2,106,370 $ (11,454,246) (1,499,266) (12,953,512) - - Component units: Development Authority 193,517 $ 95,156 $ 1,016,588 $ - $ 918,227 - Health Department 507,552 154,420 531,738 - - 178,606 Total component units 701,069 $ 249,576 $ 1,548,326 $ - $ 918,227 178,606 General revenues: Property taxes 5,445,837 - 5,445,837 - - Sales taxes 16,105,216 - 16,105,216 - - Franchise taxes 88,570 - 88,570 - - Insurance premium tax - 1,639,653 1,639,653 - - Hotel/motel taxes 306,152 - 306,152 - - Motor vehicle tax 75,876 - 75,876 - - Alcoholic beverage taxes 236,153 - 236,153 - - Excise tax 332,946 - 332,946 - - Timber tax 37,991 - 37,991 - - Licences and permits 319,110 1,817 320,927 - - Miscellaneous taxes 379,195 - 379,195 - - Payments in lieu of taxes 41,944 - 41,944 - - Interest - unrestricted 102,115 9,697 111,812 1,481 65 Total general revenues 23,471,105 1,651,167 25,122,272 1,481 65 Asset transfers - - Transfers (998,209) 998,209 - - - Change in net position 11,018,650 1,150,110 12,168,760 919,708 178,671 Net position, beginning of year 62,598,100 3,488,063 66,086,163 7,904,715 65,071 Net position, end of year 73,616,750 $ 4,638,173 $ 78,254,923 $ 8,824,423 $ 243,742 $ 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, 2022 The notes to the financial statements are an integral part of this statement. 22 Other Total Governmental Governmental General CDBG SPLOST VII TSPLOST American Rescue Plan Funds Funds Cash and cash equivalents 9,858,429 $ 80,113 $ 5,806,485 $ 1,212,552 $ 4,199,372 $ 3,951,761 $ 25,108,712 $ Investments - - - - - - - Receivables Property taxes, net allowance 767,183 - - - - - 767,183 Sales tax 100 - 389,020 - - - 389,120 Other 395,138 - - - - 175,630 570,768 Due from other funds 781,769 - - - - 113,018 894,787 Intergovernmental receivables 19,404 13,938 - 1,410,883 - 99,631 1,543,856 Due from external parties 148,085 - - - - - 148,085 Total assets 11,970,108 $ 94,051 $ 6,195,505 $ 2,623,435 $ 4,199,372 $ 4,340,040 $ 29,422,511 $ Liabilities Accounts payable 391,340 $ 300 $ 163,626 $ 517,291 $ 100 $ 72,747 $ 1,145,404 $ Accrued liabilities 166,573 - - - - 15,150 181,723 Dferred income - - - - - - - Due to others - - - - - - - Due to other funds 145,317 211,155 - - - 52,341 408,813 Total liabilities 703,230 211,455 163,626 517,291 100 140,238 1,735,940 Deferred inflows of resources Unavailable revenues - property taxes 133,801 - - - - - 133,801 Total deferred inflows 133,801 - - - - - 133,801 Fund Balances Restricted for: Capital projects - - 6,031,879 2,106,144 4,199,272 2,797,161 15,134,456 Special revenues - (117,404) - - - 1,402,641 1,285,237 Debt service - - - - - - - Unassigned 11,133,077 - - - - - 11,133,077 Total fund balances 11,133,077 (117,404) 6,031,879 2,106,144 4,199,272 4,199,802 27,552,770 Total liabilities, deferred inflows of resources and fund balances 11,970,108 $ 94,051 $ 6,195,505 $ 2,623,435 $ 4,199,372 $ 4,340,040 $ 29,422,511 $ 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, 2022 The notes to the financial statements are an integral part of this statement. 23 Total fund balances - governmental funds 27,552,770 $ 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 12,449,012 Land 3,588,475 Infrastructure 51,492,105 Buildings and improvements 39,377,416 Furniture, fixtures, and equipment 8,878,449 Right of use - lease assets 82,118 Accumulated depreciation (67,176,419) Total capital assets 48,691,156 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. 133,801 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. (2,209,880) 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 (82,118) Compensated absences (468,979) Total long-term liabilities (551,097) Net position of governmental activities 73,616,750 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS DECEMBER 31, 2022 The notes to the financial statements are an integral part of this financial statement. 24 Other Total Governmental Governmental General CDBG SPLOST VII TSPLOST American Rescue Plan Funds Funds REVENUES Taxes 10,691,151 $ - $ 4,392,290 $ 7,659,933 $ - $ 306,507 $ 23,049,881 $ Licenses and permits 319,110 - - - - - 319,110 Intergovernmental 1,556,545 13,938 - - 2,069,803 1,631,227 5,271,513 Fines and forfeitures 779,363 - - - - 98,588 877,951 Charges for services 526,897 - - - - 149,819 676,716 Contributions and donations from private sources 284 - - - - - 284 Rentals 98,506 - - - - - 98,506 Telephone commissions - - - - - - - Commissary - - - - - - - Other revenue 149,839 - - - - 115,604 265,443 Other financing sources - - - - - - - Interest 42,383 - 25,166 501 59,666 1,165 128,881 Total revenues 14,164,078 13,938 4,417,456 7,660,434 2,129,469 2,302,910 30,688,285 EXPENDITURES Current expenditures: General government 3,837,148 - 39,339 26,833 - - 3,903,320 Public safety 3,989,359 - 69,584 - - 883,450 4,942,393 Public works 1,202,982 22,339 - - - 692,567 1,917,888 Health and welfare 314,010 - - - - 6,019 320,029 Culture and recreation 822,413 - 55,999 - - - 878,412 Judicial 1,300,959 - - - - 11,928 1,312,887 Housing and development - - 1,066,340 - - 314,195 1,380,535 Intergovernmental - - - - - - - Lawn care - - - - - - - Other 692,820 - - - - 605 693,425 Capital outlay: General government 87,375 - 148,574 - - 111,018 346,967 Public safety 36,500 - 50,080 - - - 86,580 Judicial 5,000 - - - - - 5,000 Health and welfare 72,954 10,093 - - - - 83,047 Culture and recreation 6,900 - 206,794 - - 34,519 248,213 Public works 4,971 - - 7,056,803 - 690,650 7,752,424 Economic development - - - - - - - Debt service: Principal - - - - - - - Interest - - - - - - - Total expenditures 12,373,391 32,432 1,636,710 7,083,636 - 2,744,951 23,871,120 Excess (deficiency) of revenues over expenditures 1,790,687 (18,494) 2,780,746 576,798 2,129,469 (442,041) 6,817,165 OTHER FINANCING SOURCES (USES) Transfer in 85,234 - - - - 182,230 267,464 Transfer out (308,664) - (239,715) - - (717,294) (1,265,673) Total other financing sources (uses) (223,430) - (239,715) - - (535,064) (998,209) CHANGE IN FUND BALANCES 1,567,257 (18,494) 2,541,031 576,798 2,129,469 (977,105) 5,818,956 FUND BALANCES, BEGINNING OF YEAR 9,565,820 (98,910) 3,490,848 1,529,346 2,069,803 5,176,907 21,733,814 FUND BALANCES, END OF YEAR 11,133,077 $ (117,404) $ 6,031,879 $ 2,106,144 $ 4,199,272 $ 4,199,802 $ 27,552,770 $ ---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, 2022 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 5,818,956 $ 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 8,677,507 Depreciation expense (2,790,019) Net change in capital assets 5,887,488 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 (1,695,077) Accumulated depreciation 1,645,557 Net book value (49,520) 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. 20,140 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 (82,118) 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 (555,984) Compensated absences (20,312) (576,296) Change in net position of governmental activities 11,018,650 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2022 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 224,691 $ 475,633 $ 273,332 $ - $ - $ 973,656 $ Accounts receivable 1,385,929 - 67,604 - - 1,453,533 Due from other funds - - 58,512 - 24 58,536 Inventory 32,475 - - - - 32,475 Total current assets 1,643,095 475,633 399,448 - 24 2,518,200 Noncurrent assets Capital assets not being depreciated: Construction in progress - - 332,551 - - 332,551 Land 6,758 - 312,891 - - 319,649 Capital assets (net of accumulated depreciation) Buildings and improvements 1,554,939 - 60,631 - - 1,615,570 Furniture, fixtures, and equipment 1,058,561 46,816 30,246 - - 1,135,623 Total noncurrent assets 2,620,258 46,816 736,319 - - 3,403,393 Total assets 4,263,353 $ 522,449 $ 1,135,767 $ - $ 24 $ 5,921,593 $ Liabilities Current liabilities Accounts payable 168,336 8,777 340,715 6,618 4,673 529,119 Due to other funds 539,089 5,421 - - - 544,510 Accrued liabilities 61,577 718 2,575 1,895 1,170 67,935 Total current liabilities 769,002 14,916 343,290 8,513 5,843 1,141,564 Noncurrent liabilities Compensated absences - 2,734 12,994 - - 15,728 Closure and post closure costs payable - - 126,128 - - 126,128 Total noncurrent liabilities - 2,734 139,122 - - 141,856 Total liabilities 769,002 17,650 482,412 8,513 5,843 1,283,420 Net Position Net investment in capital assets 2,620,258 46,816 736,319 - - 3,403,393 Restricted - - - - - - Unrestricted 874,093 457,983 (82,964) (8,513) (5,819) 1,234,780 Total net position 3,494,351 504,799 653,355 (8,513) (5,819) 4,638,173 Total liabilties and net position 4,263,353 $ 522,449 $ 1,135,767 $ - $ 24 $ 5,921,593 $ 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, 2022 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 4,293,988 $ 339,198 $ 1,962,047 $ - $ - $ 6,595,233 $ Total operating revenues 4,293,988 339,198 1,962,047 - - 6,595,233 OPERATING EXPENSES Personnel services 3,671,201 52,473 262,323 - - 3,985,997 Operations 1,619,389 129,334 1,735,103 178,252 76,373 3,738,451 Depreciation 352,575 14,064 34,710 - - 401,349 Total operating expenses 5,643,165 195,871 2,032,136 178,252 76,373 8,125,797 Operating income (1,349,177) 143,327 (70,089) (178,252) (76,373) (1,530,564) NON-OPERATING REVENUES (EXPENSES) Interest income 9,697 - - - - 9,697 Insurance premium tax 1,639,653 - - - - 1,639,653 Grants 23,315 - - - - 23,315 Contributions and donations from private sources 9,800 - - - - 9,800 Total non-operating revenues (expenses) 1,682,465 - - - - 1,682,465 Income (loss) before capital contributions and transfers 333,288 143,327 (70,089) (178,252) (76,373) 151,901 Capital contributions - - - - - - Transfers in (out) 805,136 (12,048) (46,768) 177,601 74,288 998,209 Change in net position 1,138,424 131,279 (116,857) (651) (2,085) 1,150,110 NET POSITION, BEGINNING OF YEAR 2,355,927 373,520 770,212 (7,862) (3,734) 3,488,063 NET POSITION, END OF YEAR 3,494,351 $ 504,799 $ 653,355 $ (8,513) $ (5,819) $ 4,638,173 $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2022 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 2,875,584 339,198 1,894,443 - - 5,109,225 Payments to suppliers (699,413) (121,449) (1,521,370) (177,601) (74,288) (2,594,121) Payment to employees (3,609,624) (52,473) (262,323) - - (3,924,420) Net cash provided (used) by operating activities (1,433,453) 165,276 110,750 (177,601) (74,288) (1,409,316) CASH INFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interest Income (expense) 9,697 - - - - 9,697 Cash received from property and other taxes 2,477,904 (12,048) (46,768) 177,601 74,288 2,670,977 Net cash provided (used) by provided by noncapital financing activities 2,487,601 (12,048) (46,768) 177,601 74,288 2,680,674 CASH INFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Construction of capital assets - - (33,563) - - (33,563) Net cash provided (used) by capital and related financing activities - - (33,563) - - (33,563) CASH OUTFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (853,426) (23,130) (15,472) - - (892,028) Net cash provided (used) by capital and related financing activities (853,426) (23,130) (15,472) - - (892,028) NET CASH PROVIDED BY INVESTING ACTIVITIES - - - - - - Net increase (decrease) in cash 200,722 130,098 14,947 - - 345,767 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 23,969 345,535 258,385 - - 627,889 CASH AND CASH EQUIVALENTS, END OF YEAR 224,691 $ 475,633 $ 273,332 $ - $ - $ 973,656 $ Reconciliation of net operating income (loss) to net cash provided (used) by operating activities: Operating income (1,349,177) $ 143,327 $ (70,089) $ (178,252) $ (76,373) $ (1,530,564) $ Adjustments to reconcile net operating income (loss) to net cash provided by operating activities: Depreciation 352,575 14,064 34,710 - - 401,349 Change in accounts receivable (497,339) - (48,333) - - (545,672) Change in accounts payable 63,505 6,608 103,776 222 1,598 175,709 Change in accrued postclosure - - (22,617) - - (22,617) Change in accrued liabilities 12,973 (18) 114,658 429 487 128,529 Inventory (15,990) - - - - (15,990) Change in compensated absences - 1,295 (1,355) - - (60) Total adjustments (84,276) 21,949 180,839 651 2,085 121,248 Net cash provided (used) by operating activities (1,433,453) $ 165,276 $ 110,750 $ (177,601) $ (74,288) $ (1,409,316) $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS DECEMBER 31, 2022 The notes to the financial statements are an integral part of this statement. 29 Custodial Funds Other ASSETS Cash and cash equivalents 1,141,673 $ Total assets 1,141,673 $ Net Position Resctricted for individuals, organizations, other governments 1,141,673 $ Total liabilities and Net Position 1,141,673 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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, 2022. 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, 2022 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, 2022 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. CDBG Fund- to account for the construction related to projects funded by the CDBG grant. 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, 2022 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, 2022 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, 2022 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, 2022 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, 2022 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, 2022 and were due November 15, 2022. 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, 2022. 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, 2022: The use of copiers with $82,118 right of use asset and $82,118 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, 2022 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, 2022, is summarized as follows: Joint Ventures: Operating revenues 6,299,447 $ Depreciation and amortization expense 1,553,958 Operating income (loss) 656,636 Change in net position 573,977 Capital asset additions 1,873,989 Capital asset deletions 52,140 Net working capital 5,680,415 Total assets 42,336,782 Deferred outflows of resources 121,263 Long-term liabilities 9,306,065 Deferred inflows of resources 731,432 Total net position 31,236,461 $ 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, 2022 39 NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Compliance with Bonds Payable As of December 31, 2022, 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, 2022 and were due November 15, 2022. 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 2022 tax levy follows: General Fund 2022 millage rate - Incorporated 7.81 Unincorporated 7.81 Net property tax levy 5,324,608 $ Property tax receivable 767,183 $ Property Tax collected in 2023 (633,382) Property tax receivable, net allowance 133,801 $ Unearned property tax revenues 133,801 $ 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, 2021, was as follows: ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 40 NOTE 5 – EXCISE TAX (CONTINUED) MCDUFFIE COUNTY BOARD OF COMMISSIONERS ENERGY EXCISE TAX 2022 AND 2021 MONTH COLLECTION CITY OF GEORGIA FERRELL JEFFERSON GAS 2022 RECEIVED MONTH THOMSON POWER GAS ENERGY SOUTH TOTAL TOTALS VARIANCE 1/31/2022 DECEMBER 2,052 $ 13,629 $ 115 $ 3,311 $ 133 $ 19,240 $ 15,360 $ 3,880 $ 2/28/2022 JANUARY 1,934 10,145 130 3,201 106 15,516 16,625 (1,109) 3/31/2022 FEBRUARY 2,348 17,612 3,305 85 23,350 17,575 5,775 4/30/2022 MARCH 2,118 12,930 294 3,208 159 18,709 17,183 1,526 5/31/2022 APRIL 1,914 14,142 169 3,693 97 20,015 16,085 3,930 6/30/2022 MAY 2,739 20,707 146 3,533 116 27,241 18,792 8,449 7/31/2022 JUNE 2,884 23,682 125 2,909 138 29,738 17,931 11,807 8/31/2022 JULY 2,546 34,897 118 3,963 157 41,681 21,574 20,107 9/30/2022 AUGUST 4,413 37,455 119 3,247 45,234 28,403 16,831 10/31/2022 SEPTEMBER 3,695 28,228 115 3,377 96 35,511 24,941 10,570 11/30/2022 OCTOBER 2,902 21,813 107 3,208 1,101 29,131 20,899 8,232 12/31/2022 NOVEMBER 2,416 19,350 104 3,238 - 25,108 23,466 1,642 YTD Totals 31,961 $ 254,589 $ 1,541 $ 40,193 $ 2,188 $ 330,474 $ 238,834 $ 91,641 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 41 NOTE 6 – CAPITAL ASSETS Governmental capital assets activity for the year ended December 31, 2022, was as follows: Balance Transfers/ Transfers/ Balance 1/1/2022 Additions Deletions 12/31/2022 Capital assets not being depreciated Construction in process 5,697,525 $ 6,751,487 $ - $ 12,449,012 $ Land 3,588,475 - - 3,588,475 Total capital assets not being depreciated 9,286,000 6,751,487 - 16,037,487 Capital assets being depreciated Infrastructure 50,417,678 1,074,427 - 51,492,105 Buildings and improvements 39,227,541 149,875 - 39,377,416 Furniture, fixtures, and equipment 9,953,926 619,600 (1,695,077) 8,878,449 Right of use - leased assets - 82,118 - 82,118 Total capital assets being depreciated 99,599,145 1,926,020 (1,695,077) 99,830,088 Less accumulated depreciation: Infrastructure (43,118,047) (1,193,166) - (44,311,213) Buildings and improvements (15,229,587) (969,253) - (16,198,840) Furniture, fixtures, and equipment (7,684,323) (627,600) 1,645,557 (6,666,366) Right of use - leased assets - - - - Less accumulated depreciation (66,031,957) (2,790,019) 1,645,557 (67,176,419) Net capital assets being depreciated 33,567,188 (863,999) (49,520) 32,653,669 Governmental activities capital assets - net 42,853,188 $ 5,887,488 $ (49,520) $ 48,691,156 $ Depreciation expense was charged to functions as follows: General Government 708,699 $ Public Safety 520,076 Highways and Streets 1,410,539 Health and Welfare 40,146 Culture and Recreation 110,559 Totals 2,790,019 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 42 NOTE 6 – CAPITAL ASSETS - Continued Business-type capital assets activity for the year ended December 31, 2022, was as follows: Big Hart & Raysville Campgrounds: Balance Transfers/ Transfers/ Balance Raysville Campground Fund 1/1/2022 Additions Deletions 12/31/2022 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 47,186 23,130 - 70,316 Total capital assets being depreciated 47,186 23,130 - 70,316 Less accumulated depreciation: Buildings and improvements - - - - Furniture, fixtures, and equipment (9,437) (14,063) - (23,500) Less accumulated depreciation (9,437) (14,063) - (23,500) Net capital assets being depreciated 37,749 9,067 - 46,816 Business-type activities capital assets - net 37,749 $ 9,067 $ - $ 46,816 $ 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, 2022 43 NOTE 6 – CAPITAL ASSETS - Continued Solid Waste Fund: Balance Transfers/ Transfers/ Balance Solid Waste fund 1/1/2022 Additions Deletions 12/31/2022 Capital assets not being depreciated Construction in process 298,988 $ 33,563 $ - $ 332,551 $ Land 312,891 - - 312,891 Total capital assets not being depreciated 611,879 33,563 - 645,442 Capital assets being depreciated Buildings and improvements 212,237 - - 212,237 Furniture, fixtures, and equipment 359,406 15,472 (29,624) 345,254 Total capital assets being depreciated 571,643 15,472 (29,624) 557,491 Less accumulated depreciation: Buildings and improvements (146,301) (5,305) - (151,606) Furniture, fixtures, and equipment (315,227) (29,405) 29,624 (315,008) Less accumulated depreciation (461,528) (34,710) 29,624 (466,614) Net capital assets being depreciated 110,115 (19,238) - 90,877 Business-type activities capital assets - net 721,994 $ 14,325 $ - $ 736,319 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 44 NOTE 6 – CAPITAL ASSETS - Continued Balance Transfers/ Transfers/ Balance EMS Fund 1/1/2022 Additions Deletions 12/31/2022 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 - - 2,484,324 Furniture, fixtures, and equipment 3,224,305 853,426 (233,612) 3,844,119 Total capital assets being depreciated 5,708,629 853,426 (233,612) 6,328,443 Less accumulated depreciation: Buildings and improvements (880,903) (48,482) - (929,385) Furniture, fixtures, and equipment (2,715,077) (304,093) 233,612 (2,785,558) Less accumulated depreciation (3,595,980) (352,575) 233,612 (3,714,943) Net capital assets being depreciated 2,112,649 500,851 - 2,613,500 Business-type activities capital assets - net 2,119,407 $ 500,851 $ - $ 2,620,258 $ Depreciation expense on capital assets of the Proprietary Funds was $401,349 for the year ended December 31, 2022. 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, 2022. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 45 NOTE 6 – CAPITAL ASSETS – Continued Capital assets of the Discretely Presented Component Units consist of the following: Balance Transfers/ Transfers/ Balance Development Authority 1/1/2022 Additions Deletions 12/31/2022 Capital assets not being depreciated Land and land improvements 3,957,224 $ 974,852 $ (55,400) $ 4,876,676 $ Property, plant and equipment Buildings and improvements 2,444,760 - (54,755) 2,390,005 Equipment and furniture 57,001 - (38,429) 18,572 Total property, plant and equipment 2,501,761 - (93,184) 2,408,577 Less accumulated depreciation Buildings (740,639) (80,583) 33,104 (788,118) Equipment and furniture (47,485) (854) 38,429 (9,910) Total accumulated depreciation (788,124) (81,437) 71,533 (798,028) Net capital assets being depreciated 1,713,637 (81,437) (21,651) 1,610,549 Component unit capital assets - net 5,670,861 $ 893,415 $ (77,051) $ 6,487,225 $ Depreciation expense on capital assets of the Development Authority was $81,437 for the year ended December 31, 2022. NOTE 7 – NOTES RECEIVABLE At December 31, 2022, 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. 147,031 $ Note receivable bearing interest at 2.50%, due in installments of $5,656, including principal and interest, maturing in 2026. 242,721 Note receivable bearing interest at 2.50%, due in installments of $2,768, including principal and interest, maturing in 2025. 64,728 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. 120,476 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. 370,821 Note receivable bearing interest at 3.00%, due in installments of $1,209, including principal and interest, maturing in 2033. 133,990 1,079,767 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 46 NOTE 8 – LONG TERM DEBT The following is a summary of the long-term liability transactions for the year ended December 31, 2022: Balance Balance Due within 1/1/2022 Additions Deletions 12/31/2022 One Year Governmental Activities Lease Liability - $ 82,118 $ - $ 82,118 $ 25,932 $ Accrued compensated absences 448,667 20,312 - 468,979 - Total debt - governmental activities 448,667 $ 102,430 $ - $ 551,097 $ 25,932 $ Business-type Activities Accrued compensated absences Raysville Campground 1,439 $ 1,295 $ - $ 2,734 $ - $ Accrued compensated absences Solid Waste 14,349 - (1,355) 12,994 - Accrued closure and postclosure costs 148,745 - (22,617) 126,128 - Total debt - business-type activities 164,533 $ 1,295 $ (23,972) $ 141,856 $ - $ The following is a summary of the Discretely Presented Component Units’ long-term debt: Balance Balance Due within Health Department 7/1/2021 Additions Deletions 6/30/2022 One Year Accrued compensated absences 36,141 28,252 (8,111) 56,282 - Total debt 36,141 $ 28,252 $ (8,111) $ 56,282 $ - $ Balance Balance Due within Development Authority 1/1/2022 Additions Deletions 12/31/2022 One Year Note payable 374,108 $ - $ (67,337) $ 306,771 $ 63,149 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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, 2022, (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 69 Terminated Plan participants entitled to, but not yet receiving benefits 76 Active employees participating in the Plan 123 Total number of Plan participants 268 Part-time active employees not participating in the plan 18 Covered compensation for active participants 4,894,203 $ 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, 2022, 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, 2022 48 NOTE 9 – RETIREMENT PLAN- Net Pension Liability -Continued The total pension liability as of December 31, 2022, 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, 2020. 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, 2022 49 NOTE 9 – RETIREMENT PLAN – Continued Change in the Net Pension Liability Pension Liability Fiduciary Net Position Net Pension Liability Balance at December 31, 2021 14,122,144 $ 13,130,674 $ 991,470 $ Changes for the year: Service cost 267,377 - 267,377 Interest 963,803 - 963,803 Liability experience (gain)/loss 19,485 19,485 Assumption change 21,286 21,286 Contribution-employer - 462,400 (462,400) Net investment income - (1,853,271) 1,853,271 Benefit payments (707,048) (707,048) - Administrative expense - (42,548) 42,548 Other changes - (61,757) 61,757 Net changes 564,903 (2,202,224) 2,767,127 Balance at December 31, 2022 14,687,047 $ 10,928,450 $ 3,758,597 $ For the year ended December 31, 2022, the County recognized pension expense of $366,027. The required contribution for the year ended December 31, 2022 was $449,065. 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 5,467,527 $ 3,758,597 $ 2,322,845 $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2022, the County recognized pension expense of $366,027. At December 31, 2022, 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 2,233,931 $ (1,043,224) $ Liability (Gain)/Loss 329,475 - (Gain)/Loss due to Assumption Change 28,535 - Total 2,591,941 $ (1,043,224) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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: 2023 387,179 2024 387,179 2025 387,179 Thereafter 387,180 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, 2022 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, 2022, 16.13%, or 55, of the County’s 341 employees, were participants in the deferred compensation plans. The employees of the County contributed $120,125, respectively, to GEBCorp deferred compensation plan during the year ended December 31, 2022. 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, 2022, the County had recorded no liability for claims. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 52 NOTE 10 – RISK MANAGEMENT, LITIGATION, AND CONTINGENCIES – CONTINUED The change in the balances of the workers’ compensation pool claims during fiscal year 2022 is as follows: Workers compensation 2022 Unpaid claims, beginning of fiscal year 1,125,124 $ Incurred claims 427,214 Claim payments (177,409) Unpaid claims, end of fiscal year 1,374,929 $ 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 2022 is as follows: General, property, and vehicle liabilities 2022 Unpaid claims, beginning of fiscal year 756,194 $ Incurred claims 179,212 Claim payments (131,606) Unpaid claims, end of fiscal year 803,800 $ 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, 2022 were as follows: Non-major General Govt Raysville Solid Receivable Fund Fund Funds CDBG EMS SPLOST VII Campground Waste Total Hotel/Motel 86,384 $ - $ - $ - $ - $ - $ - $ 86,384 $ Non-major Govt Funds 421 26,237 - - - - - 26,658 Solid Waste 58,512 - - - - - - 58,512 General Fund - 26,104 211,155 539,089 - 5,421 - 781,769 Total 145,317 $ 52,341 $ 211,155 $ 539,089 $ - $ 5,421 $ - $ 953,323 $ Payable Fund . ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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 Raysville Waste Total Transfers out Fund Funds VI Debt Service EMS Campground Landfill Transfers Out General Fund - $ 308,664 $ - $ - $ - $ - $ - $ 308,664 $ SPLOST VII - - - - 239,715 - - 239,715 Raysville Campground - 12,048 - - - - - 12,048 EMS - 27,463 - - - - - 27,463 Solid Waste - 80,330 - - - - - 80,330 CDBG - - - - - - - - Non-major Govt Funds 85,234 6,737 - - 592,883 - 33,563 718,417 Total- Transfers In 85,234 $ 435,242 $ - $ - $ 832,598 $ - $ 33,563 $ 1,386,637 $ 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 $229,653 as of June 30, 2022. 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 $126,128* as of December 31, 2022. 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 $22,617. *Estimated to be $414,838 per Georgia EPD in 2022 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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 2022, approximately 60% of receipts were allocated for tourism. Transactions for the year ended December 31, 2022 were as follows: Balance as of December 31, 2021 86,767 $ Tax Collections during 2022 306,152 Reimbursement received during 2022 565 Disbursements for promotion of tourism (221,606) Transfer to General Fund (71,281) Balance as of December 31, 2022 100,597 $ 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, 2022, the County paid $16,730 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, 2022. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2022 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 - $ 366,027 Total 366,027 $ McDuffie recognized pension expense (229,012) $ McDuffie recognized revenue from State of Georgia support (229,012) $ 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, 2021 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 14, 2023. 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, 2022 57 Variance Original Final Over Budget Budget Actual (Under) REVENUES Taxes Property tax 4,680,522 $ 4,680,522 $ 4,620,787 $ (59,735) $ Property tax penalties 40,000 40,000 18,307 (21,693) Prior year property tax 246,343 246,343 247,483 1,140 Local option sales tax 2,800,000 2,800,000 2,914,530 114,530 TAVT 1,150,000 1,198,910 1,088,313 (110,597) TAV - administration 25,000 25,000 27,474 2,474 Alcohol beverage tax 230,000 230,000 236,153 6,153 Excise tax 234,000 234,000 330,474 96,474 Franchise tax 85,000 85,000 88,570 3,570 Motor vehicle tax 62,404 62,404 62,673 269 AAVT tax 16,000 16,000 18,340 2,340 Mobile home tax 56,588 56,588 57,661 1,073 Mobile home tax penalties 11,000 11,000 8,422 (2,578) Timber tax 31,791 40,591 37,991 (2,600) Light district 30,000 30,000 39,550 9,550 Railroad tax 12,000 12,000 10,885 (1,115) Payments in lieu of tax 42,000 42,000 41,944 (56) Commissions 285,000 285,000 271,618 (13,382) FIFA 30,000 30,000 16,935 (13,065) Motor vehicle late fee tax 20,000 20,000 - (20,000) BK lic tax 35,000 35,000 29,677 (5,323) Equipment tax 3,305 3,305 178 (3,127) Penalties and fines 16,000 16,000 12,686 (3,314) Total taxes 10,141,953 10,199,663 10,180,651 (19,012) Licenses and permits Beer and wine licenses 9,450 9,450 15,650 6,200 Alcohol licenses 27,500 27,500 49,425 21,925 Business licenses 80,000 80,000 85,423 5,423 Penalties and fines 19,500 25,500 32,764 7,264 Building permits and licenses 140,000 140,000 136,908 (3,092) Total licenses and permits 276,450 282,450 320,170 37,720 Intergovernmental Reimbursements 1,246,985 1,345,370 1,340,646 (4,724) Government center - City of Thomson 117,100 117,100 113,226 (3,874) Home delivered meals 3,800 3,800 7,131 3,331 Grants 42,570 42,570 32,712 (9,858) Tax assessor 4,500 4,500 4,680 180 Total intergovernmental 1,414,955 1,513,340 1,498,395 (14,945) Charges for services Recreation fees 110,400 110,400 99,951 (10,449) Senior citizens fees 8,000 13,800 6,216 (7,584) Rent 191,017 191,017 144,314 (46,703) Animal shelter 4,500 4,500 7,287 2,787 Sheriff 338,910 343,910 314,284 (29,626) Sheriff administration 201,432 201,432 67,361 (134,071) Public works 10,025 10,025 4,230 (5,795) Vending machine - - 96 96 Fire fees - - - - Total charges for services 864,284 875,084 643,739 (231,345) 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, 2022 58 Variance Original Final Over Budget Budget Actual (Under) REVENUES - Continued Fines and forfeitures Superior court fines and fees 336,000 $ 336,000 $ 343,322 $ 7,322 $ Probate court fines and fees 692,050 692,050 419,367 (272,683) Magistrate court fines and fees 86,000 86,000 56,814 (29,186) Total fines and forfeitures 1,114,050 1,114,050 819,503 (294,547) Other Flood control 2,000 2,000 2,062 62 Interest 24,000 24,000 42,383 18,383 Surplus sales 5,000 5,000 - (5,000) Scrap 5,000 5,000 2,474 (2,526) Election qual 200 200 1,020 820 Airport-GA 1,000 1,000 - (1,000) Bad check 100 100 35 (65) Employee relations 5,000 5,000 7,163 2,163 Miscellaneous 12,069 77,069 131,794 54,725 Total other 54,369 119,369 186,931 67,562 Total revenues 13,866,061 14,103,956 13,649,389 (454,567) EXPENDITURES General government Governing body 275,318 342,818 343,223 405 County manager 348,017 423,181 423,186 5 Elections office 621,112 621,112 458,488 (162,624) Administration 1,026,165 884,663 665,903 (218,760) Government center complex 117,240 141,940 141,793 (147) Finance 344,067 344,067 340,067 (4,000) Technical support 410,031 443,296 419,353 (23,943) Tax commissioner 375,018 379,518 348,094 (31,424) Tax assessor 334,972 334,972 326,729 (8,243) Board of equalization 5,346 8,005 6,682 (1,323) General government buildings 252,028 258,728 254,187 (4,541) Superior court 135,485 135,485 102,384 (33,101) Clerk of superior court 410,206 419,211 376,203 (43,008) District attorney 211,758 217,048 198,378 (18,670) Victim's assistance - 26,068 24,461 (1,607) Child support 4,000 4,500 4,356 (144) Magistrate court 169,660 177,860 177,697 (163) Probate court 239,003 239,003 232,231 (6,772) Juvenile court 134,258 134,258 127,504 (6,754) Public defender 87,135 92,935 92,159 (776) Planning and zoning 405,844 405,844 385,558 (20,286) Total general government 5,906,663 6,034,512 5,448,636 (585,876) 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, 2022 59 Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES - Continued Public safety Sheriff 4,630,700 $ 4,630,700 $ 3,990,813 $ (639,887) $ Sheriff administrative 201,432 201,432 95,397 (106,035) Fire - - - - Emergency management - - - - Inmate workforce - - - - Coroner 38,969 38,969 36,854 (2,115) Total public safety 4,871,101 4,871,101 4,123,064 (748,037) Highways and streets Vehicle and equipment maintenance - - - - Public works 1,216,180 1,216,180 1,205,916 (10,264) Total highways and streets 1,216,180 1,216,180 1,205,916 (10,264) Health and welfare Family and children services 34,500 34,500 29,241 (5,259) Health department 118,950 118,950 117,136 (1,814) Mental health - 5,370 6,186 816 Rural transportation - - - - Senior citizens 101,202 167,010 160,791 (6,219) Soil & waste conservation 500 500 350 (150) Home delivered meals 67,093 76,741 74,302 (2,439) Total health and welfare 322,245 403,071 388,006 (15,065) Culture and recreation Library 93,278 93,278 93,278 - Boys and Girls Club 8,700 12,900 12,889 (11) Rockhouse 3,500 3,500 2,260 (1,240) Recreation 819,738 819,738 814,948 (4,790) Main Street Gym 9,500 9,500 10,837 1,337 Tourism - - - - Development Authority 69,185 69,285 69,273 (12) Total culture and recreation 1,003,901 1,008,201 1,003,485 (4,716) Other Cooperative extension service 128,909 128,909 117,719 (11,190) Airport 77,800 77,800 77,767 (33) Forestry 8,820 8,820 8,820 - Lawn care services - - - - Employee relations 5,000 13,100 13,056 (44) Recycling center 5,000 21,800 21,721 (79) Animal shelter 93,251 93,251 75,120 (18,131) Total other 318,780 343,680 314,203 (29,477) Total Expenditures 13,638,870 13,876,745 12,483,310 (1,393,435) Other financing sources Transfer in (out) (334,110) (334,110) (212,334) 121,776 Net change in fund balance (106,919) $ (106,899) $ 953,745 $ 1,060,644 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities 613,512 FUND BALANCE, BEGINNING OF YEAR 9,565,820 FUND BALANCE, END OF YEAR 11,133,077 $ 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, 2022 60 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Contractually Required Contribution N/A N/A 422,092 $ 439,023 $ 435,778 $ 390,773 $ 296,675 $ 390,358 $ 440,187 $ 449,065 $ Contribution in Relation to the Contractually Required Contribution N/A N/A 422,092 439,023 435,778 390,773 296,675 390,358 440,187 449,065 Contributions Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-Employee Payroll N/A 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 $ Contribution as a Percentage of Covered- Employee Payroll N/A N/A 10.5% 11.1% 11.8% 10.2% 7.6% 9.4% 9.2% 9.2% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS- ACCG PENSION PLAN FOR MCDUFFIE COUNTY EMPLOYEES FOR THE YEAR ENDED DECEMBER 31, 2022 61 For the Year Ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net pension liability N/A N/A 1,111,156 $ 1,679,221 $ 1,808,471 $ 602,704 $ 2,036,823 $ 1,303,872 $ 991,470 $ 3,758,597 $ Covered-employee payroll N/A 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 $ Net pension liability as a percentage of covered-employee payroll N/A N/A 27.70% 44.10% 50.50% 15.80% 52.00% 31.40% 20.80% 76.80% Plan fiduciary net position as a percentage of the total pension liability N/A N/A 87.70% 82.50% 82.40% 94.10% 81.50% 90.00% 93.00% 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, 2022 (JUNE 30, 2022 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 606,919 (43,310) (2,045) (291,343) 40,177 55,629 Total 606,919 (43,310) (2,045) (291,343) 40,177 55,629 McDuffie County's covered-employee payroll 71,865 $ 81,500 $ 1,804,414 $ 76,343 $ 103,804 $ 2,024,146 $ 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 71.60% 109.00% 100.33% 156.08% 95.01% 96.77% ---PAGE BREAK--- 63 COMBINING AND INDIVIDUAL FUND STATEMENTS ---PAGE BREAK--- 64 MCDUFFIE COUNTY MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2022 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, 2022 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, 2022 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. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2022 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 Bond Fund Debt Service Funds Assets Assets Cash 290,694 $ 28,709 $ 47,265 $ 3,437 $ - $ 366,927 $ 51,880 $ - $ 51,545 $ 115,861 $ 159,436 $ 37,690 $ 100 $ 749 $ 57,309 $ 2,740,159 $ - $ - $ 3,951,761 $ Investments - - - - - - - - - - - - - - - - - - - Due from other funds - - - - - - 19,996 86,384 - 6,638 - - - - - - - - 113,018 Other receivables - - - 75,389 - - - 20,021 - - - 80,220 - - - - - - 175,630 Intergovernmental receivables 4,002 - - - 35,855 3,413 42,661 - - 13,700 - - - - - - - - 99,631 Total Assets 294,696 $ 28,709 $ 47,265 $ 78,826 $ 35,855 $ 370,340 $ 114,537 $ 106,405 $ 51,545 $ 136,199 $ 159,436 $ 117,910 $ 100 $ 749 $ 57,309 $ 2,740,159 $ - $ - $ 4,340,040 $ Liabilities and Fund Balances Liabilities Accounts payable 1,038 $ - $ - $ 1,186 $ 16,478 $ 100 $ 11,383 $ 4,956 $ 100 $ 3,918 $ - $ 32,432 $ 100 $ 293 $ 412 $ 351 $ - $ - $ 72,747 $ Accrued liabilities - - - - 4,630 - - 853 - - - 9,667 - - - - - - 15,150 Unearned revenue - - - - - - - - - - - - - - - - - - - Due to other funds - - - 52,341 - - - - - - - - - - - - - - 52,341 Total Liabilities 1,038 - - 53,527 21,108 100 11,383 5,809 100 3,918 - 42,099 100 293 412 351 - - 140,238 Fund balances Capital Projects - - - - - - - - - - - - - 456 56,897 2,739,808 - - 2,797,161 Special Revenues 293,658 28,709 47,265 25,299 14,747 370,240 103,154 100,596 51,445 132,281 159,436 75,811 - - - - - - 1,402,641 Debt service - - - - - - - - - - - - - - - - - - - Total Fund Balances 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 - - 4,199,802 Total Liabilities and Fund Balances 294,696 $ 28,709 $ 47,265 $ 78,826 $ 35,855 $ 370,340 $ 114,537 $ 106,405 $ 51,545 $ 136,199 $ 159,436 $ 117,910 $ 100 $ 749 $ 57,309 $ 2,740,159 $ - $ - $ 4,340,040 $ 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, 2022 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 Bond Fund Debt Service Funds Revenues Fees for services - $ - $ - $ - $ - $ - $ 149,819 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 149,819 $ Fines and forfeitures 56,783 14,390 - - - 27,415 - - - - - - - - - - - - 98,588 Intergovernmental - - - 307,738 292,819 - 2,500 - - - 40,126 492,800 495,244 - - - - - 1,631,227 Interest income - 45 - - - - - - - - 21 - - 15 19 1,065 - - 1,165 Other - - - - - - - 565 - - - 115,039 - - - - - - 115,604 Taxes - - - - - - - 306,152 - - - 355 - - - - - - 306,507 Total Revenues 56,783 14,435 - 307,738 292,819 27,415 152,319 306,717 - - 40,147 608,194 495,244 15 19 1,065 - - 2,302,910 Expenditures Current Intergovernmental - - - - - - - - - - - - - - - - - - - General government - - - - - - - - - - - - - - - - - - - Public safety 28,803 - - - - - 121,963 - - - - 732,684 - - - - - - 883,450 Public works - - - 310,863 378,503 - - - - 10 - - - - - 3,191 - - 692,567 Culture and recreation - - - - - - - - - - - - - - - - - - - Other - - - - - - - - - - - - - 293 312 - - - 605 Health and welfare - - - - - 6,019 - - - - - - - - - - - - 6,019 Economic development - - - - - - - 221,606 - - - - - 110,764 (18,175) - - - 314,195 Judicial - 11,928 - - - - - - - - - - - - - - - - 11,928 Capital outlay - - General government 34,097 - - - - - - - - - 76,921 - - - - - - - 111,018 Public works - - - - - - - - - - 495,244 - - 195,406 - - 690,650 Public safety - - - - - - - - - - - - - - - - - - - Health and welfare - - - - - - - - - - - - - - - - - - - Culture and recreation - - - - - - - - - - - - - - - 34,519 - - 34,519 Economic development - - - - - - - - - - - - - - - - - - - Debt Service: - Principal - - - - - - - - - - - - - - - - - - - Interest - - - - - - - - - - - - - - - - - - - Total Expenditures 62,900 11,928 - 310,863 378,503 6,019 121,963 221,606 - 10 76,921 732,684 495,244 111,057 (17,863) 233,116 - - 2,744,951 Excess (deficiency) of revenues over expenditures (6,117) 2,507 - (3,125) (85,684) 21,396 30,356 85,111 - (10) (36,774) (124,490) - (111,042) 17,882 (232,051) - - (442,041) - Transfers in - - - - 110,300 - - - - 67,979 3,951 - - - - - - - 182,230 Transfers out - - - - (5,614) - (13,953) (71,281) - (33,563) - - - - - (592,883) - - (717,294) Net Change (6,117) 2,507 - (3,125) 19,002 21,396 16,403 13,830 - 34,406 (32,823) (124,490) - (111,042) 17,882 (824,934) - - (977,105) FUND BALANCES, BEGINNING OF YEAR 299,775 26,202 47,265 28,424 (4,255) 348,844 86,751 86,766 51,445 97,875 192,259 200,301 - 111,498 39,015 3,564,742 - - 5,176,907 FUND BALANCES, END 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 $ - $ - $ 4,199,802 $ 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, 2022 69 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 46,200 $ 46,200 $ 56,784 $ 10,584 $ Prior year - 34,100 - (34,100) Total Revenues 46,200 80,300 56,784 (23,516) Expenditures Public safety 46,200 80,300 63,989 (16,311) Capital outlay - - - - Total Expenditures 46,200 80,300 63,989 (16,311) Net Change in Fund Balance - $ - $ (7,205) (7,205) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 1,088 Fund Balance, beginning of year 299,775 Fund Balance, end of year 293,658 $ ---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, 2022 70 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 17,500 $ 17,500 $ 14,391 $ (3,109) $ Interest income 10 10 45 35 Prior year - - - - Total Revenues 17,510 17,510 14,436 (3,074) Expenditures General government 17,510 17,510 13,220 (4,290) Total Expenditures 17,510 17,510 13,220 (4,290) Net Change in Fund Balance - $ - $ 1,216 1,216 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 1,291 Fund Balance, beginning of year 26,202 Fund Balance, end of year 28,709 $ ---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, 2022 71 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 500 $ 500 $ - $ (500) $ Total Revenues 500 500 - (500) Expenditures Public safety 500 500 - (500) Total Expenditures 500 500 - (500) 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 47,265 Fund Balance, end of year 47,265 $ ---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, 2022 72 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 16,000 $ 16,000 $ 27,687 $ 11,687 $ Total Revenues 16,000 16,000 27,687 11,687 Expenditures Capital outlay - - - - Public safety 9,000 9,000 6,019 (2,981) Total Expenditures 9,000 9,000 6,019 (2,981) Other Financing Sources Transfers 7,000 7,000 - (7,000) Net Change in Fund Balance 14,000 $ 14,000 $ 21,668 7,668 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (272) Fund Balance, beginning of year 348,844 Fund Balance, end of year 370,240 $ ---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, 2022 73 Variance Original Final Over Budget Budget Actual (Under) Revenues Taxes 250,000 $ 290,000 $ 303,699 $ 13,699 $ Other 2,000 2,000 565 (1,435) Prior year - - - - Total Revenues 252,000 292,000 304,264 12,264 Expenditures General government 180,719 220,719 320,653 99,934 Total Expenditures 180,719 220,719 320,653 99,934 Other Financing Sources Transfers (71,281) (71,281) (71,281) - Net Change in Fund Balance - $ - $ (87,670) (87,670) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 101,500 Fund Balance, beginning of year 86,766 Fund Balance, end of year 100,596 $ ---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, 2022 74 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 461,250 $ 461,250 $ 454,850 $ (6,400) $ Intergovernmental 451,113 451,113 151,383 (299,730) Total Revenues 912,363 912,363 606,233 (306,130) Expenditures Public safety 28,500 28,500 - (28,500) Total Expenditures 28,500 28,500 - (28,500) Other Financing Sources Transfers from General Fund - - - - Net Change in Fund Balance 883,863 $ 883,863 $ 606,233 (277,630) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (755,089) Fund Balance, beginning of year 200,301 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, 2022 75 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 33,133 $ 33,133 $ 63,677 $ 30,544 $ Prior year - - - - Total Revenues 33,133 33,133 63,677 30,544 Expenditures Other 33,133 33,133 30,468 (2,665) Capital outlay - - - - Total Expenditures 33,133 33,133 30,468 (2,665) Other Financing Sources Transfers - - - - Net Change in Fund Balance - - 33,209 33,209 Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 1,197 Fund Balance, beginning of year 97,875 Fund Balance, end of year 132,281 $ ---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, 2022 76 Variance Original Final Over Budget Budget Actual (Under) Revenues Prior year 28,500 $ 28,500 $ - $ (28,500) $ Total Revenues 28,500 28,500 - (28,500) Expenditures Public Safety 28,500 28,500 - (28,500) Total Expenditures 28,500 28,500 - (28,500) Net Change in Fund Balance - $ - $ - - $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 24,366 Fund Balance, beginning of year 51,445 Fund Balance, end of year 75,811 $ ---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, 2022 77 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal 8,000 $ 8,000 $ 40,126 $ 32,126 $ State 5,000 5,000 3,951 (1,049) Interest 2 2 22 20 Prior year 1,498 64,498 - (64,498) Total Revenues 14,500 77,500 44,099 (33,401) Expenditures Public safety 14,500 77,500 76,921 (579) Total Expenditures 14,500 77,500 76,921 (579) Net Change in Fund Balance - $ - $ (32,822) (32,822) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 192,258 Fund Balance, end of year 159,436 $ ---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, 2022 78 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 450,000 $ 450,000 $ 495,244 $ 45,244 $ Total Revenues 450,000 450,000 495,244 45,244 Expenditures Public works 450,000 450,000 495,244 45,244 Total Expenditures 450,000 450,000 495,244 45,244 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, 2022 79 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 148,455 $ 148,455 $ 139,327 $ (9,128) $ Other - - - - Prior year - - - - Total Revenues 148,455 148,455 139,327 (9,128) Expenditures Capital outlay - - - - Public safety 156,728 156,728 119,706 (37,022) Total Expenditures 156,728 156,728 119,706 (37,022) Other Financing Sources Transfers 8,273 8,273 (13,953) (22,226) Net Change in Fund Balance - $ - $ 5,668 5,668 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 10,735 Fund Balance, beginning of year 86,751 Fund Balance, end of year 103,154 $ ---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, 2022 80 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 21,007 $ 21,007 $ 13,355 $ (7,652) $ Intergovernmental 349,073 355,973 386,715 30,742 Total Revenues 370,080 376,980 400,070 23,090 Expenditures Health and welfare 370,080 376,980 374,524 (2,456) Total Expenditures 370,080 376,980 374,524 (2,456) Other Financing Sources Transfers from General Fund - - - - Net Change in Fund Balance - $ - $ 25,546 25,546 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (6,544) Fund Balance, beginning of year (4,255) Fund Balance, end of year 14,747 $ ---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, 2022 81 Variance Original Final Over Budget Budget Actual (Under) Revenues Grant revenues 48,000 $ 344,553 $ 242,352 $ (102,201) $ Total Revenues 48,000 344,553 242,352 (102,201) Expenditures Capital outlay - - - - Grant expenditures 48,000 344,553 310,984 (33,569) Total Expenditures 48,000 344,553 310,984 (33,569) Net Change in Fund Balance - $ - $ (68,632) (68,632) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 65,507 Fund Balance, beginning of year 28,424 Fund Balance, end of year 25,299 $ ---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, 2022 82 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal 2,069,903 $ 2,069,803 $ 2,069,803 $ - $ Interest - - 59,666 59,666 - - - - Total Revenues 2,069,903 2,069,803 2,129,469 59,666 Expenditures Health and welfare 2,069,903 2,069,803 - (2,069,803) Total Expenditures 2,069,903 2,069,803 - (2,069,803) Net Change in Fund Balance - $ - $ 2,129,469 2,129,469 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 2,069,803 Fund Balance, end of year 4,199,272 $ ---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, 2022 83 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 1,000,000 $ 1,000,000 $ - $ (1,000,000) $ Total Revenues 1,000,000 1,000,000 - (1,000,000) Expenditures Capital outlay 1,000,000 1,000,000 32,432 (967,568) Total Expenditures 1,000,000 1,000,000 32,432 (967,568) Net Change in Fund Balance - $ - $ (32,432) (32,432) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 248,746 Fund Balance, beginning of year (98,910) Fund Balance, end of year 117,404 $ ---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, 2022 85 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Assets Cash 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ Total Assets 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ Restricted for individuals, organizations, other governments Due to General Fund 5,018 $ 26,278 $ 19,173 $ 92,908 $ 4,708 $ 148,085 $ Due to others 420,066 29,367 94,513 429,368 20,274 993,588 Total Liabilities and Net Position 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ 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, 2022 86 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Cash Balance at beginning of year 441,793 $ 66,110 $ 51,424 $ 457,593 $ 20,069 $ 1,036,989 $ Additions 764,850 790,173 347,948 23,919,459 175,460 25,997,890 Deletions 781,559 800,638 285,686 23,854,776 170,547 25,893,206 Balance at end of year 425,084 55,645 113,686 522,276 24,982 1,141,673 Total Assets 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ Restricted for individuals, organizations, other governments Balance at beginning of year 441,793 $ 66,110 $ 51,424 $ 457,593 $ 20,069 $ 1,036,989 $ Additions 764,850 790,173 347,948 23,919,459 175,460 25,997,890 Deletions 781,559 800,638 285,686 23,854,776 170,547 25,893,206 Balance at end of year 425,084 55,645 113,686 522,276 24,982 1,141,673 Total Liabilities and Net Position 425,084 $ 55,645 $ 113,686 $ 522,276 $ 24,982 $ 1,141,673 $ 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, 2022 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 1,380,988 110,764 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 - 1,901 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 $ 18,261,053 $ 110,764 $ 18,371,817 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2009-2014 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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 75,000 130,097 (18,175) 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 - - 1,853 312 2,165 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 $ 18,418,792 $ (17,863) $ 18,400,929 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2015-2020 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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 14,732 2,840 17,572 4% 0% MCDUFFIE COUNTY 0% Airport Airport Infrastructure improvements and grant match 150,000 150,000 48,077 - 48,077 32% Energy Efficiency Imporvement Projects County HVAC, Lighting, Plumbing 204,000 204,000 100,000 - 100,000 49% 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 100,000 100,000 100,000 105,076 205,076 205% County Fire Protection equipment 800,000 800,000 453,731 441,314 895,045 112% Ambulances 250,000 250,000 210,454 3,026 213,480 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 71,912 34,519 106,431 50% Roads/Streets Capital Equipment - County 300,000 300,000 - - - 0% County Road Improvements/Equipment 1,781,960 1,781,960 706,663 195,406 902,069 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 - - 2,111 351 2,462 TOTALS 23,000,151 $ 23,000,151 $ 14,242,010 $ 826,000 $ 15,068,010 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2021-2026 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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 - 32,507 1% 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 26,749 56,000 82,749 24% Economic Development Site Improvements/Expansion 2,501,499 2,501,499 - 1,066,339 1,066,339 43% Information Technology Backup System 70,000 70,000 - 70,000 70,000 100% Phone System 80,000 80,000 58,212 21,915 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 5,800 0% Fire Apparatus 2,125,000 2,125,000 - - - 0% Ambulances 725,000 725,000 - 233,915 233,915 32% Public Works Equipment City & County Shared Equipment 725,000 725,000 - - - 0% City Equipment 215,000 215,000 - - - 0% 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 - 179,986 179,986 12% Government Center Park 1,000,000 1,000,000 - - - 0% Solid Waste Expansion of existing transfer station 1,800,000 1,800,000 - - - 0% Water/Sewer Infrastructure Upgrades 4,000,000 4,000,000 55,025 95,725 150,750 4% Advertising Costs - - 353 273 626 TOTALS 24,443,415 $ 24,443,415 $ 454,741 $ 1,876,424 $ 2,331,165 $ 10% ---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, 2022 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 $ - $ 13,938 $ 13,938 $ 1% Community Development Block Grant 19b-y-094-1-6077 October, 2019 ---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, 2022 94 Project: Public Facilities: Grant Number: Commencement of Project : Estimated Original Percentage Estimated Prior Current of Purpose Cost Years Year Total Completion Improvements 445,506 $ - $ 327,039 $ 327,039 $ 73% Community Development Block Grant Public Facility 16p-y-094-1-5867 October 2016 ---PAGE BREAK--- 95 This page left blank intentionally. ---PAGE BREAK--- 97 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, 2022, 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 14, 2023. 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--- 97 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 14, 2023 ---PAGE BREAK--- 98 COMPLIANCE SECTION ---PAGE BREAK--- MCDUFFIE COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2022 99 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 67,624 $ Transit Operating Assistance 20.509 2086-00-25-8202.0452 90,253 157,877 Transportation Services 20.509 T0066181- FY22 48,146 - 48,146 Total U.S. Department of Transportation 206,023 U.S. Department of the Interior Natural Resources (Passed through Georgia Department of Community Affairs) National Trust for Historic Preservation 15.904 GA-20-10018 15,864 15,864 Total U.S. Department of the Interior Natural Resources 15,864 U.S. Department of Health & Human Services (Passed through Economic Opportunities Authority) Community Block Grant/EOA Nutrition 93.569 FY22 7,514 Community Block Grant/EOA Nutrition 93.569 FY23 6,514 14,028 (Passed through Georgia Department of Community Affairs) Community Home Investment Program 14.239 19b-y-094-1-6077 13,938 (Passed through Georgia Department of Public Heath) Georgia Confinement Facilities 93.323 40500-CVD-19-85 8,660 Total U.S. Department of Health & Human Services 36,626 U.S. Department of Homeland Security (Passed through Georgia Emergency Management) Hazard Mitigation 91.039 F15-S24 16,916 Total U.S. Department of Homeland Security 16,916 Direct Program Federal Asset Forfeiture Program 16 76,921 Total U.S. Department of Justice 76,921 352,350 $ Total Expenditures of Federal Awards ---PAGE BREAK--- 100 MCDUFFIE COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2022 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.