Document Thomson-Mcduffie_doc_6005f7cefe

CITY OF THOMSON, GEORGIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2023 ---PAGE BREAK--- ---PAGE BREAK--- CITY OF THOMSON, GEORGIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR’S REPORT 1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS 6-12 BASIC FINANCIAL STATEMENTS Statement of Net Position 14 Statement of Activities 15 Balance Sheet – Governmental Funds 16 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 17 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – General Fund 20 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Employment Incentive Program Loan Fund 21 Statement of Fund Net Position – Proprietary Funds 22 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 23 Statement of Cash Flows – Proprietary Funds 24-25 Statement of Fiduciary Net Position – Custodial Funds 26 Statement of Changes in Fiduciary Net Position – Custodial Funds 27 Notes to Financial Statements 30-59 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in the Net Pension Liability and Related Ratios – Retirement Plan 62 Schedule of Contributions – Retirement Plan 63 Schedule of Changes in the Total OPEB Liability and Related Ratios – Other Postemployment Benefits Plan 64 ---PAGE BREAK--- CITY OF THOMSON, GEORGIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS PAGE INDIVIDUAL AND COMBINING FUND STATEMENTS General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – General Fund by Object 68-70 Nonmajor Governmental Funds Combining Balance Sheet 72 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Housing Development Action Grant Loan Fund 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Urban Development Action Grant Loan Fund 75 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Police Condemnation and Forfeiture Fund 76 OTHER SUPPLEMENTARY INFORMATION Special Revenue Grant Funds Community Development Block Grants Project Cost Schedule (Cash Basis) 78 Community Development Block Grants Source and Application of Funds Schedule (Cash Basis) 79 Special Purpose Local Option Sales Tax Schedule of Special Purpose Local Option Sales Tax 80 COMPLIANCE AND SINGLE AUDIT SECTION Schedule of Expenditures of Federal Awards 82 Notes to Schedule of Expenditures of Federal Awards 83 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 84-85 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 86-88 Schedule of Findings and Questioned Costs 89 Summary Schedule of Prior Audit Findings 90 ---PAGE BREAK--- INDEPENDENT AUDITOR’S REPORT ---PAGE BREAK--- [This page intentionally left blank.] ---PAGE BREAK--- 1 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of City Council City of Thomson Thomson, Georgia Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Thomson, Georgia (the “City”), as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and the Employment Incentive Program Loan Fund 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 the City’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 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than 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 generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risk 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 the City’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 the City’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, schedule of changes in the net pension liability and related ratios – retirement plan, schedule of contributions – retirement plan, and schedule of changes in the total OPEB liability and related ratios – other postemployment benefits plan, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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 inquires, 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 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements, community development block grants schedules, special purpose local option sales tax schedule, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 fund financial statements, community development block grants schedules, special purpose local option sales tax schedule, and the schedule of expenditures of federal awards 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 January 20, 2025 on our consideration of the City’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 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 the City’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 the City’s internal control over financial reporting and compliance. Thomson, Georgia January 20, 2025 ---PAGE BREAK--- 4 [This page intentionally left blank.] ---PAGE BREAK--- 5 MANAGEMENT’S DISCUSSION AND ANALYSIS ---PAGE BREAK--- (Continued) 6 CITY OF THOMSON, GEORGIA MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31, 2023 Within this section of the City of Thomson, Georgia’s (the “City”) annual financial report, the City’s management is pleased to provide this narrative discussion and analysis of the financial activities of the City for the year ended December 31, 2023. Financial Highlights  The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $ 23,286,597 (net position). Of this amount, $ 14,728,600 is invested in capital assets (net of related debt), $ 1,751,888 is restricted for specific purposes, and $ 6,806,109 may be used to meet the City’s ongoing obligations to citizens and creditors.  The City’s total net position decreased by $ 503,496. Total revenues of the City’s governmental and business-type activities totaled $ 15,270,685 and expenses totaled $ 15,774,181.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $ 5,700,554, a decrease of $ 608,186 in comparison with the prior year. Of this total amount, $ 3,656,977 is unassigned, $ 220,569 is assigned by management for specific purposes, $ 63,232 is committed by the Mayor and Council for specific purposes, and $ 1,087,542 is restricted by external agreements to be used for specific purposes. Nonspendable fund balance, representing prepaid items and the long-term portion of notes receivable and leases receivable totaled $ 672,234.  The net position of the City’s enterprise funds (business - type activities) totaled $ 6,377,505. Of this amount, $ 2,375,311 is invested in capital assets (net of related debt) and $ 4,002,194 (unrestricted net position) may be used to meet the City’s obligations to citizens and creditors. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: government-wide financial statements, fund financial statements, and notes to the financial statements. Comparative data is presented when available. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between assets/deferred outflows of resources and liabilities/deferred inflows of resources 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 City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). ---PAGE BREAK--- (Continued) 7 Both of the government-wide financial statements distinguish functions of the City 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). The governmental activities of the City include general government, public safety, public works, housing and development, culture and recreation, community services, and interest on long-term debt. The business-type activities of the City include a gas utility and solid waste disposal operation. The financial transactions of the Downtown Development Authority, a component unit of the City, is also discretely presented on these statements. The government-wide financial statements can be found on pages 14 - 15 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary 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 the 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 may be 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 presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may 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 City maintains sixteen 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 General Fund, Employment Incentive Program (EIP) Loan Fund, American Rescue Plan Act (ARPA) Fund, 2021 CDBG Capital Project Fund, and the Airport Capital Project Fund. Data for the other eleven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 16 - 21 of this report. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its gas utility and solid waste disposal operation. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for maintaining its fleet of vehicles. Because this service predominately benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Gas Fund and Solid Waste Fund, both of which are considered to be major funds of the City. The internal service fund is shown in its own column on the proprietary fund financial statements. The basic proprietary fund financial statements can be found on pages 22 - 25 of this report. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 26 and 27 of this report. ---PAGE BREAK--- (Continued) 8 Notes to the Basic Financial Statements The accompanying notes to the basic financial statements provide information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 30 - 59 of this report. Government-Wide Financial Analysis Net Position Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $ 23,286,597 as of December 31, 2023. A large portion of the City’s net position (63 percent) is comprised of the City’s investment in capital assets land, buildings, site improvements, machinery, equipment, infrastructure, and construction in progress) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Unrestricted net position, totaling $ 6,806,109 at year-end, may be used to meet the government’s ongoing obligations to citizens and creditors. The following table provides a summary of the City’s net position. NET POSITION Governmental Activities Business-type Activities Total 2023 2022 2023 2022 2023 2022 Current and other assets 9,829,376 $ 9,943,271 $ 5,837,940 $ 6,448,871 $ 15,667,316 $ 16,392,142 $ Capital assets, net 12,362,903 12,149,512 2,378,660 2,272,336 14,741,563 14,421,848 Total assets 22,192,279 22,092,783 8,216,600 8,721,207 30,408,879 30,813,990 Deferred outflows of resources 370,540 124,053 204,362 84,192 574,902 208,245 Current liabilities 3,277,363 2,800,603 909,119 1,371,244 4,186,482 4,171,847 Non-current liabilities 1,671,379 952,052 1,105,053 576,370 2,776,432 1,528,422 Total liabilities 4,948,742 3,752,655 2,014,172 1,947,614 6,962,914 5,700,269 Deferred inflows of resources 704,985 1,201,907 29,285 329,966 734,270 1,531,873 Net position Net investment in capital assets 12,353,289 11,970,781 2,375,311 2,263,490 14,728,600 14,234,271 Restricted 1,751,888 2,575,001 - - 1,751,888 2,575,001 Unrestricted 2,803,915 2,716,492 4,002,194 4,264,329 6,806,109 6,980,821 Total net position 16,909,092 $ 17,262,274 $ 6,377,505 $ 6,527,819 $ 23,286,597 $ 23,790,093 $ At the end of the current year, the City is reporting deficits in the net position of the Solid Waste Fund of $ 3,357 and Internal Service Fund of $ 57,147. All other funds are reporting positive balances in all classifications of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. ---PAGE BREAK--- (Continued) 9 The following table provides a summary of the changes in net position: CHANGES IN NET POSITION Governmental Activities Business-type Activities Total 2023 2022 2023 2022 2023 2022 Revenues Program revenues Charges for services 440,149 $ 455,657 $ 8,009,512 $ 13,309,373 $ 8,449,661 $ 13,765,030 $ Operating grants/ contributions 363,850 265,098 - - 363,850 265,098 Capital grants/ contributions 1,602,168 955,779 - - 1,602,168 955,779 General revenues Property taxes 1,155,965 1,045,160 - - 1,155,965 1,045,160 Other taxes 3,245,165 3,102,359 - - 3,245,165 3,102,359 Other 340,340 154,005 113,536 (2,834) 453,876 151,171 Total revenues 7,147,637 5,978,058 8,123,048 13,306,539 15,270,685 19,284,597 Expenses General government 1,055,229 619,076 - - 1,055,229 619,076 Public safety 2,366,758 2,120,824 - - 2,366,758 2,120,824 Public works 1,263,947 1,118,012 - - 1,263,947 1,118,012 Housing and development 1,806,453 585,141 - - 1,806,453 585,141 Culture and recreation 459,146 395,939 - - 459,146 395,939 Community services 277,307 235,925 - - 277,307 235,925 Interest on long-term debt 1,218 3,851 - - 1,218 3,851 Gas utility - - 6,170,675 11,101,531 6,170,675 11,101,531 Solid waste - - 1,830,065 1,628,624 1,830,065 1,628,624 Total expenses 7,230,058 5,078,768 8,000,740 12,730,155 15,230,798 17,808,923 Change in net position before transfers (82,421) 899,290 122,308 576,384 39,887 1,475,674 Transfers other funds 272,622 319,608 (272,622) (319,608) - - Transfers to joint venture (543,383) - - - (543,383) - Change in net position (353,182) 1,218,898 (150,314) 256,776 (503,496) 1,475,674 Net position, beginning of year 17,262,274 16,043,376 6,527,819 6,271,043 23,790,093 22,314,419 Net position, end of year 16,909,092 $ 17,262,274 $ 6,377,505 $ 6,527,819 $ 23,286,597 $ 23,790,093 $ Revenues from governmental activities increased $ 1,169,579 in 2023. This increase is attributable to increases in operating grants/contributions totaling $ 98,752, capital grants/contributions totaling $ 646,389, property taxes totaling $ 110,805, other taxes totaling $ 142,806, and other revenues totaling $ 186,335 whereas revenues from charges for services decreased by $ 15,508. ---PAGE BREAK--- (Continued) 10 Total expenses for governmental activities increased by $ 2,151,290 in 2023, which represents an increase of approximately 42% from 2022. Expenses for general government, public safety, public works, housing and development, culture and recreation, and community services increased by $ 436,153, $ 245,934, $ 145,935, $ 1,221,312, $ 63,207, and $ 41,382, respectively. Expense for interest on long-term debt was $ 2,633 less than 2022 amounts. The significant increase in housing and development expenses is attributable to the transfer of capital assets to the Water and Sewer Commission and noncapital expenditures moved from construction in progress upon completion of the City’s 2020 CDBG capital project, as well as, the repayment of excess cash balances held in the EIP Revolving Loan Fund to the Georgia Department of Community Affairs. Total revenues from business-type activities decreased by $ 5,183,491 and total expenses from business-type activities decreased by $ 4,729,415 in 2023. The decrease in revenues is attributable to a decrease in gas operating revenues of $ 5,494,772 and increases in solid waste operating revenues of $ 194,911 and non-operating revenues of $ 116,370. The decrease in expenses is primarily attributable to decreases in purchases of $ 5,225,861, whereas other operating expenses increased a total of $ 496,446. Financial Analysis of the Government’s Funds The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of December 31, 2023, governmental funds reported combined ending fund balances of $ 5,700,554, a decrease of $ 608,186 in comparison with 2022. Unassigned fund balance at year-end was $ 3,656,977 whereas the remainder of fund balance of $ 2,043,577 is nonspendable, restricted, committed or assigned to indicate that it is not in spendable form or not available for new spending because it has already been dedicated or identified for a specific purpose. General Fund The General Fund is the chief operating fund of the City. At the end of the current year, total fund balance of the General Fund was $ 3,683,771, of which $ 3,656,977 is unassigned and $ 26,794 is nonspendable. As a measure of General Fund liquidity, it may be useful to compare fund balance to total fund expenditures. As of December 31, 2023, fund balance represented approximately 73 percent of total General Fund expenditures. Special Revenue Funds The City maintains five special revenue funds. They are the Employment Incentive Program (EIP) Loan Fund, Housing Development Action Grant (HODAG) Loan Fund, Urban Development Action Grant (UDAG) Loan Fund, the Police Condemnation and Forfeiture Fund, and the American Rescue Plan Act (ARPA) Fund. Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The loan funds are to be used for economic development and low-income housing. The Police Condemnation and Forfeiture Fund is restricted for use in law enforcement and the American Rescue Plan Act (ARPA) Fund is restricted for use in paying eligible expenses stipulated in the American Rescue Plan Act. The EIP Loan Fund and ARPA Fund are considered major funds, whereas the HODAG, UDAG, and Police Condemnation and Forfeiture Funds are considered nonmajor funds. As of December 31, 2023, total major special revenue fund balance was $ 765,064 and total nonmajor special revenue fund balance was $ 752,602. Capital Project Funds The City uses capital project funds to account for the acquisition and construction of major capital facilities that are not financed by proprietary funds. The City maintained ten capital project funds during the current year. They are the Airport Capital Project Fund, 2020, 2021, and 2023 CDBG Capital Projects Fund, 2016 CHIP Grant Capital Project Fund, Monument Capital Project Fund, Renaissance Strategic Visioning and Planning (RSVP) Capital Project Fund, Local Maintenance & Improvement Grant (LMIG) Capital Project Fund, TIA SPLOST Capital Project ---PAGE BREAK--- (Continued) 11 Fund, and the SPLOST Capital Project Fund. The Airport Capital Project Fund and 2021 CDBG Capital Project Fund are reported as major governmental fund whereas all other capital project funds are reported as nonmajor governmental funds. As of December 31, 2023, total major capital project fund balance was $ 192,647 and total fund balance of the nonmajor capital project funds was $ 306,470. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the Gas Fund at the end of the year totaled $ 4,087,378. The Solid Waste Fund is reporting a deficit of $ 85,184 in unrestricted net position as of year-end. General Fund Budgetary Highlights The City’s budget is prepared on the cash basis of accounting. Revenues, other than property taxes and sales taxes, are budgeted in the year receipt is expected, and expenditures are budgeted in the year they are paid. Property taxes reported in the budgetary statements represent collections on prior year taxes. Collections on current year property taxes are carried over to fund the next year’s budget. Budgeted sales tax revenue is comprised of actual transfers from “sales tax reserves” and accumulated interest earned on those reserves. Sales tax revenues collected in the current year is carried over to fund the next year’s budget. A reconciliation from the City’s budgetary basis of accounting to generally accepted accounting principles is included on the face of the budgetary statement. For the year ended December 31, 2023, actual revenues, including insurance claims and gain on sales of surplus property, were less than budgetary estimates by $ 23,620 and actual expenditures were $ 204,278 less than appropriated amounts. Actual expenditures for all departments and governmental activities were under budget for 2023 except that amounts paid for downtown development and to the CSRA Regional Commission were overspent by $ 5,147 and $ 104, respectively. The City funds a portion of its General Fund budget with transfers from the Gas Fund. During the year, budgetary estimates for transfers in exceeded actual transfers by $ 5,374 and actual transfers out were $ 7,291 less than budgetary amounts. Interfund transfers are discretionary and City management elected not to fully fund budgeted transfers during 2023. Revenues and other financing sources exceeded expenditures and other financing uses by $ 182,575. Capital Assets The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2023, totaled $ 14,728,600 (net of accumulated depreciation). This investment in capital assets includes, land, site- improvements, buildings and improvements, machinery and equipment, infrastructure, and construction in progress. Major capital asset additions during the year include street resurfacing and improvements totaling $ 390,453, flood, drainage, and storm water improvements totaling $ 186,527 equipment purchases totaling $ 104,080, relief valve at Wrens take station totaling $ 386,743, and vehicle purchases totaling $ 10,000. As of December 31, 2023, construction in progress totaled $ 1,582,387 which includes $ 567,489 in expenses associated with the 2016 CHIP Grant capital project, $ 1,011,549 related to the 2021 CDBG capital project, and $ 3,349 in costs related to Camellia Park Phase I. Additional information on capital assets can be found in Note 7 to the financial statements. Debt Administration The City entered into an intergovernmental services contract (note payable) with the OneGeorgia Authority to assist in funding the construction of T-hangers at the Thomson-McDuffie Regional Airport. Total funding under the agreement was $ 500,000. This not payable was paid in full as of December 31, 2023. Principal and interest payments on the note payable in 2023 were $ 30,957 and $ 465, respectively. ---PAGE BREAK--- 12 The City entered into a financed purchase agreement with Regions Equipment Finance Corporation during 2021 to fund the purchase of four police interceptors. Total funding under the lease was $ 194,440. Total principal outstanding at December 31, 2023 was $ 7,423. Principal and interest paid on the financed purchase in 2023 were $ 66,122 and $ 984, respectively. Additional information on long-term debt can be found in Note 8 to the financial statements. Economic Factors Major revitalization projects to the downtown area have greatly enhanced the City’s streetscape, by adding additional parking, creating wider pedestrian walkways, improving accessibility, providing better lighting, and allowing for the planting of trees and other foliage. The Chamber of Commerce, local businesses, and other organizations have been pro-active in promoting activities in the revitalized areas. The improvements to the downtown district, promotion of the area, and the availability of City revolving loan funds and façade grants for qualifying businesses have fostered a renewed interest to locate and do business in the downtown area. The City has established the Downtown Renaissance Strategic Visioning and Planning Process (RSVP) which is funded in part by private donations from those who have a stake in the future development of the downtown area. The RSVP is both a downtown master planning process and a downtown planning document that illustrates the community’s vision for the future and provides the steps to get there. Through a robust public input process that seeks the participation of all community members, the RSVP will assist City leaders and community partners in prioritizing top downtown issues and establishing a consensus around what must be achieved to further enhance downtown development and activities. The City continues to seek funding from Federal and State sources to assist in the revitalization and redevelopment of blighted areas within the City. The City has been awarded two Community Development Block Grants (CDBG) totaling $ 2,250,000 and a Community Home Investment Program (CHIP) grant totaling $ 611,184. These funds will be used for street improvements, flood and drainage facilities, replacement of sewer systems, and housing assistance to qualifying homeowners in low-to-moderate income neighborhoods. The Thomson-McDuffie Regional Airport continues to play a vital role in promoting economic development in the region. Federal, State, and local funding have been combined over the years to provide for advanced take-off and landing systems, weather warning systems, runway lighting and pavement, hanger facilities, and a new terminal building. These improvements and easy access to Interstate-20 and surrounding communities have made the airport a destination for many corporate executives. Request for Information This financial report is designed to provide a general overview of the City’s finances for those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to John Waller, City Administrator, City of Thomson, P.O. Box 1017, Thomson, Georgia 30824. ---PAGE BREAK--- 13 BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 14 CITY OF THOMSON, GEORGIA STATEMENT OF NET POSITION DECEMBER 31, 2023 Component Unit Primary Government Downtown Governmental Business-type Development Activities Activities Total Authority Assets Cash and cash equivalents 6,470,586 $ 4,119,750 $ 10,590,336 $ 76,575 $ Investments 856,977 - 856,977 - Receivables: Taxes-net 478,629 - 478,629 - Accounts-net - 1,362,181 1,362,181 - Notes-net 850,439 - 850,439 - Leases 641,808 - 641,808 - Interest 14,941 33,720 48,661 - Intergovernmental 454,252 344 454,596 - Other 6,100 264,145 270,245 - Inventories - 48,768 48,768 - Prepaids 26,794 37,882 64,676 - Internal balances 28,850 (28,850) - - Capital assets, net of accumulated depreciation: Land 1,089,233 128,782 1,218,015 - Site improvements 2,648,918 - 2,648,918 - Buildings and improvements 2,138,491 105,791 2,244,282 - Machinery and equipment 180,891 2,140,738 2,321,629 - Infrastructure 4,726,332 - 4,726,332 - Construction in progress 1,579,038 3,349 1,582,387 - Total assets 22,192,279 8,216,600 30,408,879 76,575 Deferred Outflows of Resources Deferred outflows related to pension plan 370,540 204,362 574,902 - Liabilities Accounts payable 75,674 591,450 667,124 - Accrued liabilities 47,476 89,068 136,544 - Customer deposits - 217,710 217,710 - Intergovernmental payables 706,998 10,891 717,889 - Unearned revenues 2,439,792 - 2,439,792 - Noncurrent liabilities: Due within one year 7,423 - 7,423 - Due in more than one year 43,771 - 43,771 - Net pension liability 1,071,638 513,056 1,584,694 - Total OPEB liability 555,970 591,997 1,147,967 - Total liabilities 4,948,742 2,014,172 6,962,914 - Deferred Inflows of Resources Subsequent year revenues 34,151 - 34,151 - Leases receivable 624,703 - 624,703 - Deferred inflows related to pension plan 46,131 29,285 75,416 - Total deferred inflows of resources 704,985 29,285 734,270 - Net Position Net investment in capital assets 12,353,289 2,375,311 14,728,600 - Restricted for: Public safety 24,732 - 24,732 - Public works 263,613 - 263,613 - Housing and development 1,463,543 - 1,463,543 - Unrestricted 2,803,915 4,002,194 6,806,109 76,575 Total net position 16,909,092 $ 6,377,505 $ 23,286,597 $ 76,575 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 15 CITY OF THOMSON, GEORGIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023 Program Revenues Net Revenue (Expenses) and Changes in Net Position Component Primary Government Unit Operating Capital Downtown Charges for Grants and Grants and Governmental Business-type Development Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Authority Primary government: Governmental activities: General government 1,055,229 $ 37,936 $ 137,666 $ - $ (879,627) $ - $ (879,627) $ Public safety 2,366,758 239,389 12,325 - (2,115,044) - (2,115,044) Public works 1,263,947 - - 238,190 (1,025,757) - (1,025,757) Housing and development 1,806,453 137,384 213,859 1,363,978 (91,232) - (91,232) Culture and recreation 459,146 - - - (459,146) - (459,146) Community services 277,307 25,440 - - (251,867) - (251,867) Interest on long-term debt 1,218 - - - (1,218) - (1,218) Total governmental activities 7,230,058 440,149 363,850 1,602,168 (4,823,891) - (4,823,891) Business-type activities: Gas utility 6,170,675 6,445,877 - - - 275,202 275,202 Solid waste 1,830,065 1,563,635 - - - (266,430) (266,430) Total business-type activities 8,000,740 8,009,512 - - - 8,772 8,772 Total primary government 15,230,798 $ 8,449,661 $ 363,850 $ 1,602,168 $ (4,823,891) 8,772 (4,815,119) Component Unit Downtown Development Authority 6,109 $ - $ - $ - $ (6,109) $ General revenues Property taxes 1,155,965 - 1,155,965 - Motor vehicle taxes 7,487 - 7,487 - Motor vehicle title advalorem taxes 163,838 - 163,838 - Mobile home taxes 2,213 - 2,213 - Payment in lieu of taxes 19,248 - 19,248 - Sales taxes 1,692,182 - 1,692,182 - Franchise taxes 418,163 - 418,163 - Insurance premium taxes 603,972 - 603,972 - Financial institution taxes 36,832 - 36,832 - Alcoholic beverage taxes 128,613 - 128,613 - Occupation taxes 64,577 - 64,577 - Intangible taxes 14,432 - 14,432 - Transfer taxes 9,307 - 9,307 - Railroad equipment taxes 615 - 615 - Excise tax on energy 83,686 - 83,686 - Interest income 232,057 112,771 344,828 - Insurance claims 23,980 - 23,980 - Gain on sale of surplus property 15,165 765 15,930 - Other revenues 69,138 - 69,138 - Transfers from (to) other funds 272,622 (272,622) - - Transfer of assets to water and sewer joint venture (543,383) - (543,383) - Total general revenues, transfers, and special items 4,470,709 (159,086) 4,311,623 - Change in net position (353,182) (150,314) (503,496) (6,109) Net position, beginning of year 17,262,274 6,527,819 23,790,093 82,684 Net position, end of year 16,909,092 $ 6,377,505 $ 23,286,597 $ 76,575 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 16 CITY OF THOMSON, GEORGIA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2023 Employment 2021 Incentive American CDBG Airport Other Total General Program Rescue Plan Capital Project Capital Project Governmental Governmental Fund Loan Fund Act Fund Fund Fund Funds Funds ASSETS Cash and cash equivalents 2,323,021 $ 831,961 $ 2,471,110 $ 80 $ 179,107 $ 662,430 $ 6,467,709 $ Investments 856,977 - - - - - 856,977 Receivables (net of allowance for uncollectibles): Taxes 478,629 - - - - - 478,629 Notes-current - 128,828 - - - 23,060 151,888 Notes-long-term - 348,446 - - - 350,105 698,551 Leases-current - - - - 22,156 58,198 80,354 Leases-long-term - - - - 439,326 122,128 561,454 Interest - 1,784 - - - 1,638 3,422 Other - - - - 6,100 - 6,100 Intergovernmental receivables 278,706 - - - 9,192 36,112 324,010 Interfund receivables 56,524 33,699 - - 4,855 18,498 113,576 Prepaids 26,794 - - - - - 26,794 Total assets 4,020,651 $ 1,344,718 $ 2,471,110 $ 80 $ 660,736 $ 1,272,169 $ 9,769,464 $ LIABILITIES Accounts payable 60,230 $ - $ - $ - $ 8,661 $ 2,191 $ 71,082 $ Accrued liabilities 33,945 - - - - - 33,945 Intergovernmental payables 94,026 612,972 - - - - 706,998 Interfund payables 21,385 - - - 10,044 35,667 67,096 Unearned revenues 2,000 - 2,437,792 - - - 2,439,792 Total liabilities 211,586 612,972 2,437,792 - 18,705 37,858 3,318,913 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes 91,143 - - - - - 91,143 Subsequent year revenues 34,151 - - - - - 34,151 Leases receivable - - - - 449,464 175,239 624,703 Total deferred inflows of resources 125,294 - - - 449,464 175,239 749,997 FUND BALANCES Nonspendable 26,794 348,446 - - - 296,994 672,234 Restricted for: Public safety - - - - - 24,732 24,732 Public works - - 33,318 - - 211,960 245,278 Housing and development - 383,300 - 80 - 434,152 817,532 Committed to: Housing and development - - - - - 63,232 63,232 Assigned to: Housing and development - - - - 192,567 28,002 220,569 Unassigned 3,656,977 - - - - - 3,656,977 Total fund balances 3,683,771 731,746 33,318 80 192,567 1,059,072 5,700,554 Total liabilities, deferred inflows of resources, and fund balances 4,020,651 $ 1,344,718 $ 2,471,110 $ 80 $ 660,736 $ 1,272,169 $ 9,769,464 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 17 CITY OF THOMSON, GEORGIA RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2023 Total fund balances - governmental funds 5,700,554 $ 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: Land 1,089,233 Site improvements 6,374,869 Building and improvements 3,658,150 Machinery and equipment 1,747,341 Infrastructure 7,608,623 Construction in progress 1,579,038 Accumulated depreciation (9,721,744) Total capital assets, net of accumulated depreciation - governmental activities 12,335,510 An internal service fund is used by management to charge the costs of vehicle maintenance to individual funds. The assets and liabilities of the internal service fund is included in governmental activities in the Statement of Net Position. (57,147) 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 unavailable in the funds. These revenues consist of: Intergovernmental receivables 130,242 Interest receivable 11,519 Property taxes 91,143 Total unavailable revenues 232,904 Deferred outflows of resources are not current assets or financial resources and, therefore, are not reported in the funds. Deferred outflows of resources consist of: Deferred outflows related to pension plan 316,946 Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. These liabilities consist of: Accrued interest payable - Accrued compensated absences (43,771) Long-term debt (7,423) Net pension liability (972,327) Total OPEB liability (555,970) Total liabilities (1,579,491) Deferred inflows of resources are not due and payable in the current period and, therefore, are not reported in the funds. Deferred inflows of resources consist of: Deferred inflows related to pension plan (40,184) Net position of governmental activities 16,909,092 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 18 CITY OF THOMSON, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Employment 2021 Incentive American CDBG Airport Other Total General Program Rescue Plan Capital Project Capital Project Governmental Governmental Fund Loan Fund Act Fund Fund Fund Funds Funds REVENUES Taxes 4,140,383 $ - $ - $ - $ - $ 218,028 $ 4,358,411 $ Licenses and permits 48,708 - - - - - 48,708 Intergovernmental 177,121 - - 958,299 169,556 643,869 1,948,845 Charges for services 6,705 - - - - - 6,705 Fines and forfeitures 203,238 - - - - 17,211 220,449 Interest income 97,551 37,856 38,791 - 16,727 29,736 220,661 Lease income 46,841 - - - 27,802 58,413 133,056 Cemetary lot sales 39,650 - - - - - 39,650 Donations from private sources - - - - 14,692 2,481 17,173 Other 69,138 - - - - - 69,138 Total revenues 4,829,335 37,856 38,791 958,299 228,777 969,738 7,062,796 EXPENDITURES Current: General government 889,195 - - - - - 889,195 Public safety 2,307,060 - - - - 10,200 2,317,260 Public works 874,588 - 5,473 - - 7,532 887,593 Community services 235,237 - - - - - 235,237 Culture and recreation 446,995 - - - - - 446,995 Housing and development 194,957 789,428 - - 243,488 16,322 1,244,195 Debt service: Principal 97,079 - - - - - 97,079 Interest 1,450 - - - - - 1,450 Capital outlay: Public works - - - - - 502,941 502,941 Housing and development - - - 958,299 - 402,505 1,360,804 Total expenditures 5,046,561 789,428 5,473 958,299 243,488 939,500 7,982,749 Excess (deficiency) of revenues over (under) expenditures (217,226) (751,572) 33,318 - (14,711) 30,238 (919,953) OTHER FINANCING SOURCES (USES) Insurance claims 7,447 - - - 16,533 - 23,980 Gain on sales of surplus property 15,165 15,165 Transfers in 332,239 - - - 53,103 100 385,442 Transfers out (53,203) - - - - (59,617) (112,820) Total other financing sources (uses) 301,648 - - - 69,636 (59,517) 311,767 NET CHANGE IN FUND BALANCES 84,422 (751,572) 33,318 - 54,925 (29,279) (608,186) FUND BALANCES, BEGINNING OF YEAR 3,599,349 1,483,318 - 80 137,642 1,088,351 6,308,740 FUND BALANCES, END OF YEAR 3,683,771 $ 731,746 $ 33,318 $ 80 $ 192,567 $ 1,059,072 $ 5,700,554 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 19 CITY OF THOMSON, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2023 Net change in fund balances - total governmental funds (608,186) $ Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. For the current year, these amounts were: Capital outlays 1,777,105 Depreciation expense (627,784) Water and sewer joint venture portion of completed CDBG construction project (543,383) Rehabilitation of personal property related to completed CDBG construction project (383,438) Net book value of surplus property sold - Excess of capital outlays over depreciation expense and other adjustments 222,500 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Changes in these amounts are as follows: Intergovernmental receivables increased by this amount in 2023. 9,702 Accrued interest receivable increased by this amount in 2023. 10,932 Unearned property tax revenues increased by this amount in 2023. 33,017 Net change in revenues not providing current financial resources 53,651 The issuance of long-term debt notes payable and financed purchases payable) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Transactions related to long-term debt during the year were as follows: Principal payments on long-term debt 97,079 Net decrease in long-term debt 97,079 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 the governmental funds. Accrued compensated absences decreased by this amount in 2023. 4,697 Accrued interest payable decreased by this amount in 2023. 232 Net pension liability, deferred outflows and inflows related to pension decreased by this amount in 2023. 50,899 Total OPEB liability increased by this amount in 2023. (166,099) Net change in expenses not requiring the use of current financial resources (110,271) An internal service fund is used by management to charge the costs of vehicle maintenance to individual funds. The activities of the internal service fund included within governmental activities are as follows: Internal service fund net income included within governmental activities (7,955) Change in net position of governmental activities (353,182) $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 20 CITY OF THOMSON, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Taxes 3,916,690 $ 3,977,590 $ 3,963,688 $ (13,902) $ Licenses and permits 58,000 47,100 45,942 (1,158) Intergovernmental 138,895 182,095 177,121 (4,974) Charges for services 4,500 6,550 6,705 155 Fines and forfeitures 180,150 203,450 203,238 (212) Use of money and property 115,773 186,900 186,836 (64) Other 71,100 72,515 69,138 (3,377) Total revenues 4,485,108 4,676,200 4,652,668 (23,532) EXPENDITURES Current: General government 850,100 928,384 891,647 (36,737) Public safety 2,366,576 2,413,726 2,346,740 (66,986) Public works 904,672 905,918 879,158 (26,760) Community services 212,763 250,475 239,357 (11,118) Culture and recreation 454,168 454,168 423,486 (30,682) Housing and development 227,342 255,742 223,747 (31,995) Total expenditures 5,015,621 5,208,413 5,004,135 (204,278) Excess (deficiency) of revenues over (under) expenditures (530,513) (532,213) (351,467) (180,746) OTHER FINANCING SOURCES (USES) Insurance claims 6,000 7,500 7,447 (53) Gain on sales of surplus property 5,000 15,200 15,165 (35) Prior year fund balance 232,000 232,000 232,000 - Transfers in 337,613 337,613 332,239 (5,374) Transfers out (50,100) (60,100) (52,809) (7,291) Total other financing sources (uses) 530,513 532,213 534,042 1,829 CHANGE IN FUND BALANCE - $ - $ 182,575 182,575 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities Receivables and other assets (207,679) Payables and other liabilities 341,526 Appropriated prior year fund balance (232,000) Total reconciliation to GAAP basis (98,153) FUND BALANCE, BEGINNING OF YEAR 3,599,349 FUND BALANCE, END OF YEAR 3,683,771 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 21 CITY OF THOMSON, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL EMPLOYMENT INCENTIVE PROGRAM LOAN FUND FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Interest income - $ - $ 41,236 $ 41,236 $ Available for loans 564,676 564,676 565,308 632 Total revenues 564,676 564,676 606,544 41,868 EXPENDITURES Current: Housing and development - - 176,456 176,456 Loans made 564,676 564,676 - (564,676) Total expenditures 564,676 564,676 176,456 (388,220) Excess of revenues over expenditures - - 430,088 430,088 CHANGE IN FUND BALANCE - $ - $ 430,088 430,088 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities Receivables and other assets (568,688) Payables and other liabilities (612,972) Total reconciliation to GAAP basis (1,181,660) FUND BALANCE, BEGINNING OF YEAR 1,483,318 FUND BALANCE, END OF YEAR 731,746 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 22 CITY OF THOMSON, GEORGIA STATEMENT OF FUND NET POSITION - PROPRIETARY FUNDS DECEMBER 31, 2023 Governmental Business-type Activities-Enterprise Funds Activities Gas Solid Waste Internal Fund Fund Total Service Fund ASSETS Current assets: Cash 4,067,648 $ 52,102 $ 4,119,750 $ 2,877 $ Accounts receivable-net 1,097,121 265,060 1,362,181 - Interest receivable 33,720 - 33,720 - Intergovernmental receivables - 344 344 - Other receivables 264,145 - 264,145 - Interfund receivables 10,044 - 10,044 - Inventories 48,768 - 48,768 - Prepaids 20,327 17,555 37,882 - Total current assets 5,541,773 335,061 5,876,834 2,877 Noncurrent assets: Capital assets Land 128,782 - 128,782 - Buildings and improvements 366,992 59,891 426,883 39,806 Machinery and equipment 8,088,004 1,246,238 9,334,242 143,207 Construction in progress 3,349 - 3,349 - Less accumulated depreciation (6,290,294) (1,224,302) (7,514,596) (155,620) Total capital assets, net of accumulated depreciation 2,296,833 81,827 2,378,660 27,393 Total noncurrent assets 2,296,833 81,827 2,378,660 27,393 Total assets 7,838,606 416,888 8,255,494 30,270 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension plan 119,702 84,660 204,362 53,594 Total assets and deferred outflows of resources 7,958,308 501,548 8,459,856 83,864 LIABILITIES Current liabilities: Accounts payable 477,257 114,193 591,450 4,592 Accrued liabilities 77,090 11,978 89,068 13,531 Customer deposits 217,710 - 217,710 - Intergovernmental payables 6,836 4,055 10,891 - Interfund payables 35,075 3,819 38,894 17,630 Total current liabilities 813,968 134,045 948,013 35,753 Noncurrent liabilities: Net pension liability 293,581 219,475 513,056 99,311 Total OPEB liability 453,034 138,963 591,997 - Total noncurrent liabilities 746,615 358,438 1,105,053 99,311 Total liabilities 1,560,583 492,483 2,053,066 135,064 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension plan 16,863 12,422 29,285 5,947 Total liabilities and deferred inflows of resources 1,577,446 504,905 2,082,351 141,011 NET POSITION Net investment in capital assets 2,293,484 81,827 2,375,311 27,393 Unrestricted 4,087,378 (85,184) 4,002,194 (84,540) Total net position 6,380,862 $ (3,357) $ 6,377,505 $ (57,147) $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 23 CITY OF THOMSON, GEORGIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Governmental Business-type Activities-Enterprise Funds Activities Gas Solid Waste Internal Fund Fund Total Service Fund OPERATING REVENUES Charges for services 6,182,020 $ 1,544,837 $ 7,726,857 $ 281,148 $ Refunds from suppliers 254,118 - 254,118 - Other revenues - 14,670 14,670 336 Penalties 9,739 4,128 13,867 - Total operating revenues 6,445,877 1,563,635 8,009,512 281,484 OPERATING EXPENSES Purchases 3,933,257 77,867 4,011,124 - Personnel services and benefits 1,060,735 401,044 1,461,779 235,909 Professional and technical services 171,926 27,293 199,219 2,989 Repairs and maintenance 210,233 70,285 280,518 2,930 Other purchased services 178,534 1,149,715 1,328,249 16,569 Supplies 220,357 56,068 276,425 22,022 Intergovernmental 157,916 - 157,916 - Depreciation 199,010 23,792 222,802 9,109 Bad debts 23,719 22,746 46,465 - Other 14,988 1,255 16,243 375 Total operating expenses 6,170,675 1,830,065 8,000,740 289,903 Operating income (loss) 275,202 (266,430) 8,772 (8,419) NON-OPERATING REVENUES (EXPENSES) Interest income 111,994 777 112,771 464 Gain on sales of surplus property 225 540 765 - Total non-operating revenues (expenses) 112,219 1,317 113,536 464 Income (loss) before transfers 387,421 (265,113) 122,308 (7,955) TRANSFERS IN (OUT) Transfers in 32,417 293,300 325,717 - Transfers out (586,685) (11,654) (598,339) - Net transfers in (out) (554,268) 281,646 (272,622) - CHANGE IN NET POSITION (166,847) 16,533 (150,314) (7,955) NET POSITION, BEGINNING OF YEAR 6,547,709 (19,890) 6,527,819 (49,192) NET POSITION, END OF YEAR 6,380,862 $ (3,357) $ 6,377,505 $ (57,147) $ ---PAGE BREAK--- (Continued) 24 CITY OF THOMSON, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Governmental Business-type Activities-Enterprise Funds Activities Gas Solid Waste Internal Fund Fund Total Service Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 6,816,820 $ 1,488,525 $ 8,305,345 $ 281,484 $ Payments to suppliers and others (5,347,356) (1,355,054) (6,702,410) (44,202) Payments to employees (967,075) (379,110) (1,346,185) (237,801) Net cash provided by (used for) operating activities 502,389 (245,639) 256,750 (519) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 283,000 283,000 - Transfers to other funds (519,578) (11,654) (531,232) - Net cash provided by (used for) noncapital financing activities (519,578) 271,346 (248,232) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of surplus property 225 540 765 - Purchases and construction of capital assets (324,323) (10,300) (334,623) - Transfers from other funds 32,417 10,300 42,717 - Transfers to other funds (67,107) - (67,107) - Net cash provided by (used for) capital and related financing activities (358,788) 540 (358,248) - CASH FLOWS FROM INVESTING ACTIVITIES Interest received 79,718 777 80,495 464 Net cash provided by investing activities 79,718 777 80,495 464 Net increase (decrease) in cash and cash equivalents (296,259) 27,024 (269,235) (55) Cash and cash equivalents, beginning of year 4,363,907 25,078 4,388,985 2,932 Cash and cash equivalents, end of year 4,067,648 $ 52,102 $ 4,119,750 $ 2,877 $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 25 CITY OF THOMSON, GEORGIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Governmental Business-type Activities-Enterprise Funds Activities Gas Solid Waste Internal Fund Fund Total Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss) 275,202 $ (266,430) $ 8,772 $ (8,419) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation 199,010 23,792 222,802 9,109 Other pension related charges (19,917) (17,246) (37,163) (6,327) Other post employment benefits (OPEB) 108,746 36,249 144,995 - (Increase) decrease in current assets Accounts receivable 396,547 (52,360) 344,187 - Intergovernmental receivables - - Other receivables (6,261) - (6,261) - Interfund receivables - 1,966 1,966 - Inventories 17,227 - 17,227 - Prepaids (1,266) (1,093) (2,359) - Increase (decrease) in current liabilities Accounts payable (479,002) 26,733 (452,269) 683 Accrued liabilities (18,615) (2,854) (21,469) 1,124 Customer deposits 12,425 - 12,425 - Intergovernmental payables 2,896 1,789 4,685 - Interfund payables 15,397 3,819 19,216 3,311 Total adjustments 227,187 20,791 247,978 7,900 Net cash provided by (used for) operating activities 502,389 $ (245,639) $ 256,750 $ (519) $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 26 CITY OF THOMSON, GEORGIA STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS DECEMBER 31, 2023 Police Surcharge Fund ASSETS Cash 81 $ Total assets 81 LIABILITIES Intergovernmental payables 81 Total liabilities 81 NET POSITION Restricted for: Other governments - Total net position - $ ---PAGE BREAK--- The notes to the financial statements are an integral part of this statement. 27 CITY OF THOMSON, GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Police Surcharge Fund ADDITIONS Fines and forfeitures collected 146,103 $ Total additions 146,103 DEDUCTIONS Payments to other governments and agencies 114,399 Administrative costs 31,704 Total deductions 146,103 Change in net position - Net position, beginning of year - Net position, end of year - $ ---PAGE BREAK--- 28 [This page intentionally left blank.] ---PAGE BREAK--- 29 NOTES TO FINANCIAL STATEMENTS ---PAGE BREAK--- (Continued) 30 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Introduction The financial statements of the City of Thomson, Georgia (the “City”) 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 standards setting body for establishing governmental accounting and financial reporting principles. The accompanying summary of the City’s more significant accounting policies is presented to assist the reader in interpreting the financial statements and other data in this report. B. The Financial Reporting Entity The City was originally chartered on August 19, 1927 and was rechartered on March 15, 1973. Under the charter, the citizens elect the Mayor at large and five City Council members by districts. The City provides the following services: public safety, streets, culture and recreation, public improvements, natural gas utility, solid waste pickup, and general and administrative services. In addition, the City participates in a water and sewer utility commission for the City and McDuffie County, Georgia. The Mayor and City Council govern the City and appoint a City Administrator who is responsible for the day to day operations and implementation of the policy decisions made by the City Council. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component unit. The component unit is included in the City’s reporting entity because of the significance of its operational or financial relationship with the City. C. Individual Component Unit Disclosures Downtown Development Authority of the City of Thomson - The Downtown Development Authority of the City of Thomson (the “Authority”) is a legally separate entity, its board members are appointed by the City, and the City is able to impose its will on the Authority. The purpose of the Authority is to revitalize and redevelop the central business districts of the municipal corporations of the State of Georgia. Therefore, the Authority’s provision of services is not limited entirely, or almost entirely, to the City nor does it only benefit the City. The Authority is discretely presented in a separate column on the government-wide Statement of Net Position and Statement of Activities. Separate financial statements of the Authority can be obtained from their administrative office at 149 Main Street, Thomson, Georgia 30824. The City was not financially accountable for nor did the City exercise significant influence over any other entities. Accordingly, there are no other component units included in these financial statements. D. Basic Financial Statements The basic financial statements consist of the government-wide financial statements, fund financial statements, and notes to the basic financial statements. Government-wide financial statements - The Statement of Net Position and the Statement of Activities report information on all of the nonfiduciary activities of the primary government and its component unit. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. 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. ---PAGE BREAK--- (Continued) 31 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Statement of Activities presents a comparison between direct expenses and program revenues for the different business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with the program or function of the City’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 City’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 and fiduciary fund financial 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 City considers all revenues, except property taxes, available if they are collected within 30 days after year- end. Property taxes collected within 60 days after year-end are considered available. 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. 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 City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City 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. When restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. The accounts of the City 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. ---PAGE BREAK--- (Continued) 32 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reports the following major governmental funds: General Fund - The General Fund is the general operating fund of the City. 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, fines and forfeitures, and various other taxes and charges. The primary expenditures are for the general administration, public safety, public works, community services, culture and recreation, and housing and development. Employment Incentive Program Loan Fund (EIP) - The EIP Loan Fund is a special revenue fund used to account for the financial activities related to the City’s EIP revolving loan program. The EIP Loan Fund is not being funded with federal or state grant funds. American Rescue Plan Act Fund - The ARPA Fund is a special revenue fund used to account for the financial activities related to proceeds received from the U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds. 2021 Community Development Block Grant Fund - The 2021 CDBG Fund is a capital project fund used to account for the financial activities related to proceeds received from the U.S. Department of Housing and Urban Development for the redevelopment and rehabilitation of low-to-moderate income neighborhoods. Airport Capital Project Fund - The Airport Capital Project Fund is used to account for proceeds from federal and state grant funds, as well as, local funding for capital improvements, operations, and maintenance at the regional airport. The City reports the following major enterprise funds: Gas Fund - The Gas Fund is used to account for the operations of the City’s natural gas utility. Solid Waste Fund - The Solid Waste Fund is used to account for the cost of providing solid waste pick-up, disposal, and recycling services to City residents and businesses. Enterprise funds 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 of the Gas Utility and Solid Waste Funds 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. Additionally, the City reports the following other fund types: Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Capital Project Funds - Capital project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Internal Service Fund - An internal service fund is used to account for the City’s Vehicle Maintenance Fund. The Vehicle Maintenance Fund provides services to other funds, departments, and the McDuffie County/City of Thomson, Georgia Water and Sewer Commission on a cost reimbursement basis. ---PAGE BREAK--- (Continued) 33 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 City in a custodial capacity for individuals and other governmental units. The accounting used for fiduciary funds is much like that used for proprietary funds. F. Budgets and Budgetary Data Annual appropriated budgets are adopted by the Mayor and City Council for the general, enterprise, and some special revenue funds on a total revenues and total expenditures basis. The City‘s Administrator submits an annual budget to the Mayor and Members of City Council in accordance with the City Charter. The City Council adopted the 2023 annual appropriated budgets for the City’s general, enterprise, and special revenue funds on December 8, 2022. Once approved, the City Council may amend the legally adopted budget when unexpected modifications are required in estimated revenues and appropriations. Under Georgia State law, appropriations lapse at year-end. The budgets are prepared essentially on the cash basis, rather than in accordance with generally accepted accounting principles. Revenues, other than property taxes and sales taxes, are budgeted in the year receipt is expected; and expenditures are budgeted in the year that the applicable expenditure is paid. Property taxes and sales tax revenues collected in the current year are set-aside to fund the subsequent year’s budget. Amounts reported in the budgetary statements for property taxes only include amounts collected on prior year tax levies. Sales taxes and accumulated interest income on local option sales tax reserves represent amounts actually transferred from sales tax reserves. These amounts do not represent current year collections of property taxes, sales taxes, and interest earned on local option sales tax reserves. A reconciliation from the budgetary basis to generally accepted accounting principles is presented in the applicable financial statements. Project length budgets are adopted for all capital project funds. Major capital projects are under contract with independent contractors that are exclusively responsible for the progress of the construction projects. Accordingly, budgetary statements are not presented for the City’s capital projects funds. Each fund’s appropriated budget is prepared on a detailed line item basis. Revenues are budgeted by source. Expenditures are budgeted by department and character (personnel services, maintenance and operations, capital outlay, and debt service) which constitutes the legal level of control. Expenditures may not exceed appropriations at this level. All budget revisions at this level are subject to final review by the City Council. Within these control levels, management may transfer appropriations without City Council approval. Revisions to the budget were made throughout the year. G. Encumbrance Accounting The City does not utilize encumbrance accounting, under which purchase orders and contracts are recorded in order to reserve that portion of the applicable appropriation. ---PAGE BREAK--- (Continued) 34 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Assets, Liabilities, and Fund Equity Cash and Investments The City‘s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments purchased with maturities of three months or less. 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 1” is a Standard & Poor’s AAAf/S1 rated investment pool which is managed by the Office of the State Treasurer to maintain principal stability. The pool is not registered with the SEC as an investment company and the State of Georgia does not consider Georgia Fund 1 to be a 2a7-like pool. 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 basis. The Office of the State Treasurer is the regulatory oversight agency for Georgia Fund 1. Receivables All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. The City uses the allowance method for recording bad debt. The allowance for bad debt reserves for amounts owed from customers that have purchased services from the City and is determined by an analysis of the year-end receivable balances for those accounts the City believes will not be collected based on past history. Estimated unbilled revenues from the Gas and Solid Waste Funds are recorded at the end of each fiscal year on a pro rata basis. The estimated amount is based on billings during the month following the close of the fiscal year. Prepaids The City uses the allocation method for accounting for prepaids. When the allocation method is used to account for prepaids, an asset is established at the date of payment and subsequently amortized over the accounting periods that are expected to benefit from the initial payment. Prepaids are reported as assets of the specific governmental fund that will derive future benefits from the expenditure. 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 financials statements. Internal balances are eliminated in the government-wide financial statements. ---PAGE BREAK--- (Continued) 35 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventories Inventories of supplies for all governmental funds are recorded at cost using the purchase method, whereby inventories are recorded as expenditures when purchased; however, material amounts of inventories are reported as assets of the respective fund. No inventories were recorded in the governmental funds as of December 31, 2023. Inventories of the proprietary funds are recorded at the lower of cost or market on a first-in, first-out basis. Capital Assets and Depreciation Capital assets, which include land, site improvements, buildings and improvements, machinery and equipment, infrastructure, and construction-in-progress, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $ 5,000 (amount not rounded) and an estimated useful life in excess of one year. Individual assets that cost less than $ 5,000, but that operate as part of a network system, are capitalized in the aggregate using the group method, if considered material or significant. Capital assets are valued at historical cost or estimated historical cost if historical cost is not available. Donated capital assets are valued at their acquisition value on the date donated. Infrastructure acquired prior to June 30, 1980 is not reported. Major outlay for capital assets and improvements not completed as of year-end are capitalized as construction in progress. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’ lives are not capitalized. Property, plant, and equipment of the primary government are depreciated using the straight-line method over the following estimated useful lives: Site improvements 10-20 years Buildings and improvements 25-40 years Machinery and equipment 5-22 years Infrastructure 40-50 years Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Employees may accumulate up to 20 days of unused vacation leave to be received as compensation upon separation from service. Accumulated sick pay benefits are paid only upon the illness of an employee. Accordingly, there is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts when employees separate from service with the City. The City’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 Long-term debt and other long-term obligations are reported as liabilities in the government-wide Statement of Net Position and the proprietary fund Statement of Fund Net Position. ---PAGE BREAK--- (Continued) 36 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Leases Lessor The City is a lessor for noncancellable leases of real property. The City recognizes a lease receivable asset and a deferred inflow of resources in the government-wide Statement of Net Position and on the governmental funds Balance Sheet. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments related to leases include how the City determines the discount rate it uses to discount the expected lease payments to present value, lease term, and lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease receivable are composed of fixed payments and variable payments that are fixed in substance that the City is reasonably certain to collect. The City monitors changes in circumstances that would require remeasurement of its leases and will remeasure the leases receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the leases receivable. 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(s) and so will not be recognized as an outflow of resources (expense) until then. The City reports employer contributions to its pension plan made subsequent to the pension plan’s measurement date and the net difference between projected and actual earnings on pension plan investments in this category on the government-wide and proprietary fund Statements of Net Position. 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(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City collects occupation taxes and beer and wine licenses that are permitted for use in the subsequent year. The City also has two outstanding lease receivables in which revenues are recognized over the lease terms. These revenues qualify for reporting in this category and are identified as subsequent year revenues and leases receivable on the government-wide Statement of Net Position and on the governmental funds Balance Sheet. The City also reports unavailable revenue-property taxes in this category on the governmental funds Balance Sheet. In addition, the City reports deferred inflows of resources related to its pension plan in this category for the net difference between expected and actual experience on pension plan demographic and economic changes in this category on the government-wide and proprietary fund Statements of Net Position. ---PAGE BREAK--- 37 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net Position (Government-Wide Financial Statements) The City’s net position is classified as follows: Net investment in capital assets: This represents the City’s total investment in capital assets, net of debt and construction payables related to those capital assets. Restricted: This represents the net amount of assets subject to constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through State statute. Unrestricted: This represents the net amount of assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in any other category of net position. Fund Balances (Governmental Funds Financial Statements) The City requires the following actions to be taken for fund balance to be classified as “restricted”, “committed”, or “assigned”: Restricted - amounts that can be spent only for the specific purposes stipulated by external resource providers (i.e. grants, creditors), constitutionally, or through enabling legislation (i.e. legislation that creates a new revenue source and restricts its use). These restrictions may be changed or lifted only with the consent of the resource providers. Committed - amounts that can be used only for the specific purpose determined by a formal action of City Council. Such commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally. The formal action must be taken before year-end, although the amount may not be determined until the subsequent period. Assigned - amounts intended to be used by the City for specific purposes. City Council delegates the authority to classify fund balance as “assigned” to the City Administrator and his/her designee, the Finance Director. In governmental funds other than the General Fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. Nonspendable - amounts that are either not in spendable form items that are not expected to be converted to cash) or legally or contractually required to be maintained intact. Unassigned - amounts not included in the other fund balance categories. The City reports positive unassigned fund balance only in the General Fund. For all other funds, any deficits in fund balance at year-end will be reported as unassigned. The City’s policy for the order of expenditure of funds by fund classification is as follows: Future qualifying expenditures will first reduce restricted fund balance, followed by a reduction of unrestricted fund balance starting first with “committed”, then “assigned”, then “unassigned” as applicable when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could vary from the estimates that were recorded. ---PAGE BREAK--- 38 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY General Fund Actual revenues and other financing sources (budgetary basis) were $ 28,994 less than budgeted amounts whereas actual expenditures and other financing uses (budgetary basis) were $ 211,569 less than appropriated amounts resulting in a net increase in fund balance (budgetary basis) of $ 182,575. Expenditures for downtown development and dues paid to the CSRA Regional Commission exceeded appropriated amounts by $ 5,147 and $ 104, respectively. These overages were absorbed by available fund balance. Expenditures for all other City departments and functions were under appropriated amounts for the year. Employment Incentive Program Loan Fund The Employment Incentive Program loan Fund is reporting a decrease in fund balance totaling $ 751,572. This decrease resulted from the repayment of excess cash balances to the Georgia Department of Community Affairs totaling $ 789,428. Fund balance as of December 31, 2023, after repayment of excess cash balance was $ 731,746. Gas Fund The Gas Fund is reporting a decrease in net position totaling $ 166,847. Noncash expenses, such as depreciation and bad debt expense totaled $ 222,279 for the year. Solid Waste Fund The Solid Waste Fund is reporting a deficit balance in unrestricted net position totaling $ 85,184. The deficit is primarily attributable to noncurrent liabilities related to the fund’s net pension liability and total OPEB liability. Internal Service Fund The Internal Service Fund is reporting a deficit balance in unrestricted net position totaling $ 57,147 and a decrease in net position totaling $ 7,955. Most of the deficit balance consists of noncurrent liabilities and deferred outflows/inflows related to the fund’s net pension liability. The decrease in net position is attributed to depreciation totaling $ 9,109. Nonmajor Governmental Funds The LMIG and TIA SPLOST Capital Project Funds are reporting a decrease in fund balance for December 31, 2023 totaling $ 38,622 and $ 54,170, respectively. These decreases were funded with available fund balance. ---PAGE BREAK--- (Continued) 39 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 3 – CASH DEPOSITS AND TEMPORARY INVESTMENTS Deposits Custodial credit risk for deposits is the risk that in the event of a bank failure, the City’s deposits may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. State statutes require all deposits (other than federal or state government instruments and the Georgia Fund 1) to be collateralized by depository insurance or pledged securities. Amounts that exceed standard depository insurance limits are required to be collateralized either individually by the financial institutions through pledged obligations of the U.S. Government, obligations backed by the full faith and credit of the U.S. Government, obligations of the State of Georgia or other states, or obligations of counties, municipalities, or public authorities of the State of Georgia, participation in the State of Georgia Secure Deposit Program, or participation in the Georgia State Pledging Pool. As of December 31, 2023, the City had deposits with one financial institution collateralized by the State of Georgia Secure Deposit Program, which is administered by the Office of the State Treasurer, and requires participating banks holding deposits of public funds to pledge collateral at varying rates depending on the tier assigned by the State. The City also had deposits with one financial institution collateralized by the Georgia State Pledging Pool, which is administered by the Georgia Bankers Association for the Office of the State Treasurer, and requires participating banks holding deposits of public funds to pledge collateral equal to or greater than 110% of the net public deposits of its public unit depositors that agree to have their deposits protected by the program. Collateral under this program is pledged to the State Treasurer of the State of Georgia. The carrying amount of the City’s deposits with financial institutions was $ 10,590,417 and the bank balance was $ 11,236,417 at December 31, 2023. Deposits of the City were fully collateralized as of year- end. Collateralization of the City’s deposits as of December 31, 2023 is as follows: Amount insured by FDIC 82,758 $ Amount collateralized through State of Georgia Secure Deposit Program 7,903,659 Amount collateralized through Georgia State Pledging Pool 3,250,000 Total bank balance 11,236,417 $ Investments At December 31, 2023, the City had the following investments: Fair Credit Investments Maturities Value Rating Governmental Activities Georgia Fund 1 26 day WAM 856,977 $ AAAf/S1 856,977 $ The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. The City had no recurring fair value measurements as of December 31, 2023. ---PAGE BREAK--- 40 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 3 – CASH DEPOSITS AND TEMPORARY INVESTMENTS (Continued) Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation. State statutes authorize the City to make direct investments 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. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Investments held for longer periods are subject to increased risk of adverse interest rate changes. The “Georgia Fund 1” uses the weighted average maturity (WAM) method for reporting interest rate risk. In general, the longer the WAM, the more susceptible the fund is to rising interest rates. In addition, the City does not invest in certificates of deposit with maturities greater than 365 days from date of purchase. Custodial credit risk for investments is the risk that, in the event of failure of the counterparty, the City will not be able to recover the fair value of its investments or collateral securities 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. Concentration of credit risk is the risk that the City will place no limit on the amount they invest in any one issuer. At December 31, 2023, no single issue investment exceeded 5% of total investments. NOTE 4 - PROPERTY TAXES Property taxes are billed and collected by the McDuffie County, Georgia Tax Commissioner and remitted to the City. Property taxes were levied on September 14, 2023 and were due on December 11, 2023. Property taxes became 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 unavailable revenue. An allowance is established for uncollectible amounts based on management’s estimate. A summary of the 2023 tax levy follows: 2023 millage rate 6.890 Taxable digest Gross tax levy Less sales tax rollback Net property taxes Property taxes receivable Less allowance for uncollectible amounts Net property taxes receivable Unavailable revenue-property tax (4,639) 138,712 $ 91,143 $ 174,456,551 $ 2,632,435 $ (1,420,037) 1,212,398 $ 143,351 $ ---PAGE BREAK--- (Continued) 41 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 5 - NOTES RECEIVABLE Notes receivable December 31, 2023 are as follows: Employment Incentive Program Loan Fund (EIP) 4.00%, payments of $ 1,893 (principal and interest), to 2026, collateralized by equipment and accounts receivable 47,078 $ 2.00%, payments of $ 2,279 (principal and interest), to 2024, collateralized by equipment and personal guarantee by owner 11,336 3.00%, payments of $ 1,082 (principal and interest), to 2024, collateralized by real estate 17,999 5.125%, payments of $ 2,942 (principal and interest), to 2026, collateralized by real estate, furniture, fixtures, and equipment 90,385 3.00%, payments of $ 1,485 (principal and interest), to 2033, collateralized by real estate 151,560 6.75% variable, payments of $ 3,593 (principal and interest), to 2028, collateralized by equipment 158,916 Total 477,274 Housing Development Action Grant Loan Fund (HODAG) 0.00%, payments of $100 (principal only) uncollateralized, represents funding for homeowner portion of CDBG rehabilitation project 800 Total 800 Urban Development Action Grant Loan Fund (UDAG) 5.25%, payments of $1,608 (principal and interest, to 2037, collateralized by personal guarantees of the owners 188,666 6.00%, payments of $2,039 (principal and interest, to 2034, collateralized by real estate 183,699 Total 372,365 Grand total 850,439 $ The City uses the allowance method for recording bad debts attributable to its notes receivable. The allowance for uncollectible accounts is determined by an analysis of the year-end receivable balances for those accounts which the City believes will not be collected based on past history. All loans are currently being serviced and no allowance for uncollectible notes receivable was deemed necessary as of December 31, 2023. ---PAGE BREAK--- (Continued) 42 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 5 - NOTES RECEIVABLE (Continued) Annual collections on notes receivable outstanding as of December 31, 2023 to maturity are as follows: Year Ending December 31, Principal Interest Total 2024 151,888 $ 39,399 $ 191,287 $ 2025 129,483 33,242 162,725 2026 108,391 26,576 134,967 2027 83,325 21,375 104,700 2028 55,164 17,198 72,362 2029 thru 2033 254,615 50,332 304,947 2034 thru 2037 67,573 6,815 74,388 850,439 $ 194,937 $ 1,045,376 $ Note 6 - Leases Receivable General Fund The City leased a hanger to the airport’s fixed based operator (FBO). The City received payments, paid in advance, which included the principal and interest components of the payment. The lease was not renewed at its expiration on July 31, 2023. The City recognized lease income of $ 21,401 and interest income of $ 245 in 2023 related to this lease. Airport Capital Project Fund The City has leased an additional hanger to the airport’s FBO in which the City receives payments, paid in advance, comprising the principal and interest components of the payment. The initial lease term is for 25 years with option to renew for two additional periods of 5 years each. It is reasonably certain both renewal options will be exercised. As the lease does not contain a stated interest rate, the City has used an incremental borrowing rate of 3.2% as the discount rate for the lease. For the year ended December 31, 2023, the annual lease payments received were $ 36,600. The City recognized lease income of $ 27,802 and interest income of $ 15,141 in 2023 related to the lease. In addition, the City has a deferred inflow of resources associated with this lease that will be recognized over the lease term that ends on March 11, 2040. The balance of this deferred inflow of resources was $ 449,464 as of December 31, 2023. Nonmajor Governmental Fund On January 1, 2022, the City entered into an agreement to lease an industrial building to a local industry. The City receives payments, paid in advance, comprising the principal and interest components of the payment. The initial lease term is for 5 years. As the lease does not contain a stated interest rate, the City has used an incremental borrowing rate of 3.2% as the discount rate for the lease. For the year ended December 31, 2023, the annual lease payment received were $ 63,120. The City recognized lease income of $ 58,413 and interest income of $ 6,752 in 2023 related to the lease. In addition, the City has a deferred inflow of resources associated with this lease that will be recognized over the lease term that ends December 31, 2026. The balance of this deferred inflow of resources was $ 175,239 as of December 31, 2023. ---PAGE BREAK--- (Continued) 43 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 Note 6 - Leases Receivable (Continued) Activity for leases receivable for the year ended December 31, 2023 was as follows: Amount Balance Balance Due Within 12/31/2022 Additions Deletions 12/31/2023 One Year Governmental Activities Hanger lease-General Fund 25,317 $ - $ (25,317) $ - $ - $ Hanger lease-Airport Capital Project Fund 482,941 - (21,459) 461,482 22,156 Building lease-Nonmajor Governmental Fund 236,694 - (56,368) 180,326 58,198 Governmental activities leases receivable 744,952 $ - $ (103,144) $ 641,808 $ 80,354 $ NOTE 7 - CAPITAL ASSETS Governmental capital asset activity for the year ended December 31, 2023, was as follows: Balance Deletions/ Balance 12/31/2022 Additions Transfers 12/31/2023 Governmental Activities Capital assets not being depreciated Land 1,089,233 $ - $ - $ 1,089,233 $ Construction in progress 1,315,734 1,360,804 (1,097,500) 1,579,038 Total capital assets not being depreciated 2,404,967 1,360,804 (1,097,500) 2,668,271 Capital assets being depreciated Site improvements 6,374,869 - - 6,374,869 Buildings and improvements 3,697,956 - - 3,697,956 Machinery and equipment 2,011,868 10,000 (131,320) 1,890,548 Infrastructure 7,031,643 406,301 170,679 7,608,623 Total capital assets being depreciated 19,116,336 416,301 39,359 19,571,996 Less accumulated depreciation Site improvements (3,554,554) (171,397) - (3,725,951) Buildings and improvements (1,469,787) (89,678) - (1,559,465) Machinery and equipment (1,744,476) (96,501) 131,320 (1,709,657) Infrastructure (2,602,974) (279,317) - (2,882,291) Total accumulated depreciation (9,371,791) (636,893) 131,320 (9,877,364) Net capital assets being depreciated 9,744,545 (220,592) 170,679 9,694,632 Governmental activities capital assets-net 12,149,512 $ 1,140,212 $ (926,821) $ 12,362,903 $ The City records all expenditures related to capital projects as construction in progress until the project is completed. Various projects include expenditures that are non-capital in nature and/or are transferred to other local governments upon completion. These amounts are not capitalized by the City. During 2023, $ 170,679 in construction in progress was transferred to infrastructure, $ 543,383 was transferred to the Water and Sewer Commission, and $ 383,438 was non-capital in nature as it related to rehab of personal property. These transfers were the result of the City completing its 2020 CDBG capital project. ---PAGE BREAK--- 44 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 7 - CAPITAL ASSETS (Continued) Depreciation expense was charged to governmental functions as follows: General government 6,866 $ Public safety 87,112 Public works 300,573 Housing and development 179,012 Culture and recreation 12,151 Community services 42,070 Internal service fund 9,109 Current year depreciation expense 636,893 $ Business-type capital asset activity for the year ended December 31, 2023, was as follows: Balance Deletions/ Balance 12/31/2022 Additions Transfers 12/31/2023 Business-type Activities Capital assets not being depreciated Land 128,782 $ - $ - $ 128,782 $ Construction in progress 165,046 225,046 (386,743) 3,349 Total capital assets not being depreciated 293,828 225,046 (386,743) 132,131 Capital assets being depreciated Buildings and improvements 426,883 - - 426,883 Machinery and equipment 8,850,919 104,080 379,243 9,334,242 Total capital assets being depreciated 9,277,802 104,080 379,243 9,761,125 Less accumulated depreciation Buildings and improvements (313,818) (7,274) - (321,092) Machinery and equipment (6,985,476) (215,528) 7,500 (7,193,504) Total accumulated depreciation (7,299,294) (222,802) 7,500 (7,514,596) Net capital assets being depreciated 1,978,508 (118,722) 386,743 2,246,529 Business-type activities capital assets-net 2,272,336 $ 106,324 $ - $ 2,378,660 $ Depreciation expense on capital assets of the business-type activities was $ 222,802 for the year ended December 31, 2023. During 2023, $ 386,743 in construction in progress was transferred to machinery and equipment. Depreciation expense was charged to business-type activities as follows: Gas Fund 199,010 $ Solid Waste Fund 23,792 Current year depreciation expense 222,802 $ ---PAGE BREAK--- (Continued) 45 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 8 - LONG-TERM LIABILITIES The following is a summary of the long-term liability transactions for the year ended December 31, 2023. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the totals for governmental activities. Amount Balance Balance Due Within 12/31/2022 Additions Deletions 12/31/2023 One Year Governmental Activities Direct borrowings or placements Note payable 30,957 $ - $ (30,957) $ - $ - $ Financed purchases 73,545 - (66,122) 7,423 7,423 Direct borrowings or placements 104,502 - (97,079) 7,423 7,423 Other long-term liabilities Accrued compensated absences 48,468 - (4,697) 43,771 - Net pension liability 506,290 565,348 - 1,071,638 - Total OPEB liability 389,871 166,099 - 555,970 - Other long-term liabilities 944,629 731,447 (4,697) 1,671,379 - Governmental activities long-term liabilities 1,049,131 $ 731,447 $ (101,776) $ 1,678,802 $ 7,423 $ Business-type Activities Other long-term liabilities Net pension liability 129,368 383,688 - 513,056 - Total OPEB liability 447,002 144,995 - 591,997 - Other long-term liabilities 576,370 528,683 - 1,105,053 - Business-type activities long-term liabilities 576,370 $ 528,683 $ - $ 1,105,053 $ - $ There was no short-term borrowing during the year ended December 31, 2023. The following summarizes long-term debt outstanding at December 31, 2023: Amount Original Interest Final Outstanding Due Within Principal Rate Maturity Balance One Year Governmental Activities Direct borrowings or placements Financed purchases 194,440 $ 2.27% 2024 7,423 $ 7,423 $ Total-governmental activities 194,440 $ 7,423 $ 7,423 $ ---PAGE BREAK--- (Continued) 46 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 8 - LONG-TERM LIABILITIES (Continued) Financed Purchases On March 8, 2021, the City entered into a financed purchase agreement with Regions Equipment Finance Corporation to purchase four new police interceptors. Terms of the lease require 36 payments, including principal and interest at 2.27% beginning April 8, 2021 with final payment being due February 8, 2024. Annual requirements to amortize the financed purchases outstanding as of December 31, 2023 to maturity are as follows: Year Ending December 31, Principal Interest Total 2024 7,423 $ 18 $ 7,441 $ 7,423 $ 18 $ 7,441 $ NOTE 9 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The composition of interfund balances as of December 31, 2023, is as follows: Due from/to other funds Receivable Fund Payable Fund Amount General Fund Gas Fund 35,075 $ General Fund Solid Waste Fund 3,819 General Fund Internal Service Fund 17,630 EIP Loan Fund UDAG Loan Fund 33,699 HODAG Loan Fund General Fund 5,191 UDAG Loan Fund General Fund 11,339 UDAG Loan Fund HODAG Loan Fund 1,968 Airport Capital Projects Fund General Fund 4,855 Gas Fund Airport Capital Projects Fund 10,044 123,620 $ Amounts due to the General Fund totaling $ 56,524 represent unapplied employee insurance withholdings, from the Gas, Solid Waste, and Internal Service Funds. Amounts due to the EIP Revolving Loan Fund totaling $ 33,699 represent principal payments on a note receivable refinanced through the UDAG Revolving Loan Fund that were not remitted to the EIP Revolving Loan Fund as of December 31, 2023. Amounts due to the HODAG and UDAG Revolving Loan Funds totaling $ 18,498 represent prior year payments on notes receivable that were deposited in the General Fund and HODAG Revolving Loan Fund. Amounts due to the Airport Capital Projects Fund totaling $ 4,855 represent the City’s portion of operating expenses for December 2023. Amounts due to the Gas Fund totaling $ 10,044 represent funding for engineering and construction expenses on various airport capital projects. The Gas Fund will be reimbursed as funds become available. ---PAGE BREAK--- 47 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 9 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Continued) Interfund transfers Transfer In Airport General Capital Project Gas Solid Waste Nonmajor Total Transfer Out Fund Fund Fund Fund Funds Transfers Out General fund - $ 53,103 $ - $ - $ 100 $ 53,203 $ Gas fund 303,685 - - 283,000 - 586,685 Solid waste fund 11,654 - - - - 11,654 Nonmajor funds 16,900 32,417 10,300 59,617 332,239 $ 53,103 $ 32,417 $ 293,300 $ 100 $ 711,159 $ The City funds its General Fund capital budget with transfers from the Gas Fund. Capital assets funded with transfers from the Gas Fund during 2023 totaled $ 67,107. The Gas Fund also funds a portion of administrative salaries, related employment benefits, and other operating costs. Transfers from the Gas Fund to fund these costs totaled $ 153,337. In addition, the Gas and Solid Waste funds reimburse the General Fund for a portion of the City’s occupancy costs of the joint government complex. Reimbursements for occupancy costs from the Gas Fund and Solid Waste funds totaled $ 83,241 and $ 11,654, respectively. The City transferred $ 16,900 from the UDAG Revolving Loan Fund to the General Fund related to its lease of an industrial building. The City funds one-half of the operations, maintenance, and capital costs of the regional airport. Transfers to the Airport Capital Project Fund totaled $ 53,103. The City funds a portion of its Solid Waste operating costs with transfers from the Gas Fund. Operating transfers from the Gas Fund during 2023 totaled $ 283,000. The City funds some capital asset purchases with special purpose local option sales tax. During 2023, the City transferred funds from the SPLOST Capital Project Fund to the Gas and Solid Waste Funds to purchase capital assets totaling $ 32,417 and $ 10,300, respectively. The General Fund transferred $ 100 to the 2023 CDBG Capital Project Fund to establish a bank account for that fund. ---PAGE BREAK--- (Continued) 48 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 10 - NET POSITION Net position of the government-wide and proprietary fund financial statements represents the difference in assets and deferred outflows of resources less liabilities and deferred inflows of resources. Amounts reported for net investment in capital assets and restricted net position at December 31, 2023 are as follows: Governmental Business-type Activities Activities Net Investment in Capital Assets Primary government 12,335,510 $ 2,378,660 $ Internal service fund 27,393 - Less note payable and financed purchases (7,423) - Less construction and retainage payables (2,191) (3,349) Total net investment in capital assets 12,353,289 $ 2,375,311 $ Restricted For Public Safety Police Condemnation and Forfeiture Fund 24,732 $ Total Public Safety 24,732 $ Public Works ARPA Fund 33,318 $ TIA SPLOST Capital Project Fund 230,195 LMIG Capital Project Fund 100 Total Public Works 263,613 $ Housing and Development EIP Revolving Loan Fund 732,151 $ HODAG Revolving Loan Fund 237,127 UDAG Revolving Loan Fund 490,743 2020 CDBG Capital Project Fund 34 2021 CDBG Capital Project Fund 80 2023 CDBG Capital Project Fund 16 2016 CHIP Grant Capital Project Fund 3,392 Total Housing and Development 1,463,543 $ NOTE 11 - JOINT VENTURES AND RELATED ORGANIZATIONS McDuffie County/City of Thomson Water and Sewer Commission The City is a one-half joint venture partner with McDuffie County, Georgia (the “County”) in the McDuffie County/City of Thomson Water and Sewer Commission (the “Commission”), the purpose of which is to provide water and sewer utilities to County and City residents. The Commission assumed the ownership and operations of the City’s Water and Sewer Enterprise Fund in 1988, in conjunction with funding for expansion with a one percent Special Purpose Local Option Sales Tax imposed by the County. The seven member board is comprised of three members from the City and County and one member appointed by the board. 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. Neither the County nor the City exercise direct control over the Commission, which is administered by the board. ---PAGE BREAK--- (Continued) 49 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 11 - JOINT VENTURES AND RELATED ORGANIZATIONS (Continued) GASB Statement No. 14, The Financial Reporting Entity, defines a joint venture as a legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as 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. 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 policies, water and sewer rates, fees, standards and any other matters as 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 administers the operating funds of the Commission, and is responsible for operations, maintenance, and customer billings for the System. The County is responsible for administering construction funds obtained through Special Purpose Local Option Sales Tax revenues. Grant funds obtained for construction purposes are administered by the City and/or the County, dependent upon the terms of such funding. The basic financial statements of the Commission are presented in a manner consistent with primary governments. Transfers to and from the Commission by the participating governments are accounted for as intergovernmental revenues and expenses. Federal and state grant funds transferred to the Commission by the participating governments are accounted for as sub-recipient grant funds. Financial information regarding the Commission’s financial statements as of and for the year ended December 31, 2023 is summarized as follows: Operating revenues 6,365,796 $ Depreciation and amortization expense 1,663,222 $ Operating income (loss) (91,637) $ Capital contributions 543,383 $ Change in net position 855,211 $ Capital asset additions 2,264,928 $ Capital asset deletions 40,866 $ Net working capital 6,061,181 $ Total assets 44,136,067 $ Deferred outflows of resources 297,182 $ Long-term liabilities 10,043,976 $ Deferred inflows of resources 295,589 $ Total net position 32,091,672 $ The Commission has issued a separate financial report that may be obtained from: McDuffie County/City of Thomson Water and Sewer Commission P. O. Box 1017 Thomson, Georgia 30824 ---PAGE BREAK--- 50 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 11 - JOINT VENTURES AND RELATED ORGANIZATIONS (Continued) CSRA Regional Commission Under Georgia State law, the City, 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 the year ended December 31, 2023, the City paid $ 7,904 in such dues. Membership in a RC is required by OCGA Section 50-8-34 that provides for the organizational structure of the RC in the State of 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: CSRA Regional Commission 3626 Walton Way Ext, #300 Augusta, GA 30909 Housing Authority The Housing Authority of the City of Thomson, Georgia is considered a related organization based upon the criteria in GASB Statement No. 14. The Housing Authority is a legally separate entity having a board composed of members appointed originally by the City Council. The City is not able to impose its will upon the Housing Authority and a financial benefit/burden relationship does not exist between them. Therefore, based upon the criteria, the Housing Authority of the City of Thomson, Georgia is a related organization and not a component unit. Thomson-McDuffie Land Bank Authority The City and County entered into an intergovernmental agreement to form the Thomson-McDuffie Land Bank Authority in accordance with OCGA Section 48-4-60. The Land Bank Authority is a legally separate entity having a board originally appointed by the City and County. The City is not able to impose its will upon the Land Bank Authority and a financial benefit/burden relationship does not exist between them. Accordingly, based upon the criteria in GASB Statement No. 14, the Land Bank Authority is a related organization and not a component unit of the City. NOTE 12 - CONTINGENT LIABILITIES Federal Grants In the normal course of operations, the City receives grant funds from various Federal agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement which may arise as a result of these audits is not believed to be material. Litigation As of December 31, 2023, the City was not involved in any pending or threatened litigation. ---PAGE BREAK--- (Continued) 51 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 13 - RISK MANAGEMENT The City 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. In order to minimize the risk of loss, the City has joined with other municipalities in the State of Georgia as a member of the Georgia Interlocal Risk Management Agency Fund (GIRMA), and the Georgia Municipal Association (GMA) Self-Insured Workmen’s Compensation Fund. The City pays an annual premium to these Funds through the GIRMA and GMA. The City retains the first $ 1,000 of each risk of loss in the form of a deductible. All claims are filed with GIRMA and GMA who bills the City for any risk of loss up to the deductible amount. As part of their agreement, the City must assist and cooperate in the defense and settlement of claims against the City. The City must furnish full cooperation to GIRMA’s and GMA’s attorneys, claims adjusters, and any agent or independent contractor of GIRMA and GMA. In addition, the City must report as as possible, and in accordance with any coverage descriptions issued, all incidents which could result in GIRMA and GMA or any Fund established by GIRMA and GMA being required to pay claim for loss or injuries to municipal property or injuries to persons or property when such loss or injury is within the scope of the protection of a Fund or Funds in which the City participates. The City is required to use due diligence to avoid or diminish any loss covered under the agreement. As a condition of coverage, GIRMA and GMA can request that the City assist in effecting settlements, securing and giving evidence, obtaining witnesses in the conduct of suits, and providing of written statements for the purposes of investigation, defense, and mitigation of claims. GIRMA and GMA are responsible for payment of all claims covered under the agreement. The maximum liability for any one occurrence or claim is the maximum liability as specified in the policies less the amount of stated deductibles. For those risks covered by insurance, claims did not exceed coverage during the past three years. NOTE 14 - RETIREMENT PLAN Plan Description The City of Thomson Retirement Plan (the “Plan”), is a defined benefit pension plan affiliated with the Georgia Municipal Employees Benefit System (GMEBS), an agent multiple-employer pension plan administered by the Georgia Municipal Association (GMA). Contributions made by the City are pooled with contributions made by other members of GMEBS for investment purposes; the City does not own any securities on its own. There are no employer or related party securities or loans included in plan assets. The GMA issues a publicly available financial report that includes financial statements and required supplementary information for GMEBS. That report may be obtained by writing to Georgia Municipal Association, The Burgess Building, 201 Pryor Street, SW, Atlanta, GA 30303, or by calling (404) 688-0472. The City established the Plan January 1, 1972 through an agreement adopting the GMEBS Master Plan and Joint Trust Agreement (the “Adoption Agreement”). The Adoption Agreement establishes the types of benefits available under the Plan and the City’s obligation to contribute to the Plan. The City has the right to amend any or all elections in the Adoption Agreement. The amendment must be approved by GMEBS, cannot reduce any previously accrued benefits of the participants or beneficiaries, cannot authorize or permit any part of the Trust Fund to be diverted to any purpose other than for the exclusive benefit of participants and their beneficiaries, and cannot deprive any participant or beneficiary of any rights or benefits irrevocably vested under the Plan. GMEBS can amend the Master Plan or the elective provisions of the Adoption Agreement in its sole discretion as Trustee of the Plan. Any amendment by GMEBS must be approved by the City as the adopting employer. The City cannot amend the Master Plan or the Joint Trust Agreement. ---PAGE BREAK--- (Continued) 52 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 14 - RETIREMENT PLAN (Continued) Benefits Provided As provided by Georgia State law, benefit provisions for participants in GMEBS are established by the respective employers. As authorized by City Council, the Plan provides pension benefits and death and disability benefits for plan members and beneficiaries. All full-time employees of the City and the McDuffie County/City of Thomson Water and Sewer Commission working at least twenty hours per week, are eligible to participate immediately. Elected officials became eligible to participate immediately as of January 1, 2019. Benefits are fully vested after ten years of service. Normal retirement age is sixty-five (65) with a minimum of five years of service, and early retirement is age fifty-five (55) with a minimum of ten years of total credited service. benefits are based on the average annual earnings paid to a participant during any consecutive five-year period preceding the actual date of retirement in which the earnings were highest and the total years of service. Elected officials benefit is $ 26 for each year of service. As of July 1, 2023, the last valuation date, there were 229 participants consisting of the following: Retired participants and beneficiaries currently receiving benefits 77 Terminated vested participants entitled to but not yet receiving benefits 77 Active participants-vested 43 Active participants-not vested 32 Total number of participants 229 Contributions The Plan is subject to minimum funding standards of the Public Retirement Systems Standards Law (Georgia Code Section 47-20-10). GMEBS has adopted an actuarial funding policy that requires a different funding level than the estimated minimum annual contribution to minimize fluctuations in annual contribution amounts and to accumulate sufficient funds to secure benefits under the Plan. If the City contributes the recommended contribution developed under the actuarial funding policy each year, the Plan will meet applicable State funding standards. Employees do not contribute to the Plan. For 2023, the City’s contribution to the Plan totaled $ 237,723, or 11.32% of covered-employee payroll. This contribution was equal to the recommended annual contribution determined as part of the July 1, 2022 actuarial valuation. Net Pension Liability The City’s net pension liability was measured as of March 31, 2023. Actuarial Assumptions. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023 using the following actuarial assumptions, applied to all periods included in the measurement: Net investment rate of return 7.375%, on going basis, based on long-term expected rate of return on pension plan investments Projected salary increases 2.25%, plus service based merit increases Inflation 2.25% Social security wage base increase 2.25% Cost of living adjustments 0.00% ---PAGE BREAK--- (Continued) 53 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 14 - RETIREMENT PLAN (Continued) The methods and assumptions used in the July 1, 2023 valuation were based on the results of an actuarial experience study for the period January 1, 2015 through June 30, 2019. Mortality rates for the July 1, 2023 valuation were based on the following: Healthy Retirees and Beneficiaries-Sex-distinct Pri-2012 head-count weighted Healthy Retiree Mortality Table with rates multiplied by 1.25. Disabled Participants-Sex-distinct Pri-2012 head-count weighted Disable Retiree Mortality Table with rates multiplied by1.25. Active Participants, Terminated Vested Participants, and Deferred Beneficiaries-Sex-distinct Pri-2012 head-count weighted Employee Mortality Table. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Plan’s target asset allocation as of March 31, 2022 are summarized in the following table: Long-Term Target Expected Real Asset Class Allocation Rate of Return* Domestic equity 45.00% 6.40% International equity 20.00% 6.80% Domestic fixed income 20.00% 0.40% Real estate 10.00% 3.90% Global fixed income 5.00% 0.46% Cash 0.00% 0.00% Total 100.00% * Rates shown are net of the 2.25% assumed rate of inflation Discount Rate. The discount rate used to measure the total pension liability was 7.375%. The projection of cash flows used to determine the discount rate assumed that the City’s contributions will be made at rates equal to the actuarially determined contribution rates and the member rate. Based on these assumptions, the 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 of the projected benefit payments to determine the total pension liability. ---PAGE BREAK--- (Continued) 54 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 14 - RETIREMENT PLAN (Continued) Changes in the Net Pension Liability of the City. The changes in the components of the net pension liability of the City for the year ended December 31, 2023 were as follows: Total Pension Fiduciary Net Net Pension Liability Position Liability (TPL) (FNP) (NPL) - Balances at March 31, 2022 7,273,929 $ 6,638,271 $ 635,658 $ Changes for the year: Service cost 84,776 - 84,776 Interest 496,105 - 496,105 Differences between expected and actual experience 129,467 - 129,467 Contributions-employer - 208,245 (208,245) Contributions-employee - - - Net investment income - (431,392) 431,392 Benefit payments, including refunds of employee contributions (449,644) (449,644) - Administrative expense - (15,541) 15,541 Other - - - Net changes 260,704 (688,332) 949,036 Balances at March 31, 2023 7,534,633 $ 5,949,939 $ 1,584,694 $ The required schedule of changes in the City’s net pension liability and related ratios immediately following the notes to the financial statements presents multiyear trend information about whether the value of plan assets is increasing or decreasing over time relative to the total liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following table presents the net pension liability of the City, calculated using the discount rate of 7.375 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percent lower (6.375 percent) or 1 percent higher (8.375 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.375%) (7.375%) (8.375%) City's Net Pension Liability 2,438,545 $ 1,584,694 $ 862,392 $ Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as of March 31, 2023 and the current sharing pattern of costs between employer and employee. Plan Fiduciary Net Position. Detailed information about the Plan’s fiduciary net position is available in the separately issued GMEBS financial report. ---PAGE BREAK--- (Continued) 55 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 14 - RETIREMENT PLAN (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. For the year ended December 31, 2023, the City recognized pension expense of $ 143,335. The City reported the following deferred outflows of resources and deferred inflows of resources related to the Plan as of December 31, 2023: Deferred Deferred Outflows of Inflows of Resources Resources Contributions made subsequent to the measurement date 237,723 $ - $ Difference between expected and actual experience 86,312 75,416 Net difference between projected and actual earnings on pension plan investments 250,867 - Total 574,902 $ 75,416 $ Contributions made subsequent to the measurement date totaling $ 237,723 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending December 31, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to the Plan will be recognized in pension expense as follows: Year Ending December 31, 2024 2025 2026 2027 Total Fiscal Year Outflows Demographic 43,156 $ 43,156 $ - $ - $ 86,312 $ Investment 4,194 (138,280) 199,859 185,094 250,867 Total 47,350 $ (95,124) $ 199,859 $ 185,094 $ 337,179 $ Fiscal Year Inflows Demographic 75,416 $ - $ - $ - $ 75,416 $ Total 75,416 $ - $ - $ - $ 75,416 $ Changes in Methods and Assumptions There were no changes in methods or assumptions from the prior valuation. Benefit Changes There have been no changes in plan benefits since the last valuation. NOTE 15 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) Plan Description, Contribution Information and Funding Policies In addition to providing pension benefits, the City administers a single-employer defined benefit healthcare plan (the “Retiree Health Plan”). The Retiree Health Plan provides healthcare benefits for certain retired employees as per a personnel policy adopted December 7, 1992 and affirmed by resolution of the Mayor and City Council on November 8, 2012. Substantially all of the City’s employees may become eligible for those benefits if they reach normal retirement age while working for the City. Benefit provisions are established and amended solely at the discretion of the elected City Council. The Retiree Health Plan does not issue a publicly available report. ---PAGE BREAK--- (Continued) 56 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 15 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued) Benefits are available to all employees who have attained the age of sixty-two (62) while working for the City, and have a minimum of twenty-five (25) years of full time service upon retirement. Benefits were also offered to eligible employees through a one-time Early Retirement Incentive Program (ERIP). To be eligible for benefits under the ERIP, employees had to have attained the age of fifty-five (55) as of January 1, 2016 with a minimum of twenty-eight (28) years of full time service. Qualification for benefits under the ERIP closed March 31, 2016. Benefits continue in effect until the retirees reach the age of sixty- five (65) at which time the retiree can convert to Medicare or any other plan as desired. The City funds 100% of the retirees’ premium and the benefits are underwritten by the City’s regular health care provider. The cost of these benefits is recognized as an expenditure on a pay-as-you-go basis. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. As of December 31, 2023, the last measurement date, there were 48 participants in the Retiree Health Plan consisting of the following: Retired participants currently receiving benefits 2 Active participants 46 Total number of participants 48 There were two retired City employees that received benefits during 2023. Benefits paid on behalf of those participants totaled $ 15,141 for the year ended December 31, 2023. Total OPEB Liability The City’s proportionate share of its total OPEB liability is based on the City’s proportionate share of eligible employees to total eligible employees of the City and Commission. For the year ended December 31, 2023, the City’s proportionate share was seventy-five percent (rounded). The City’s total OPEB liability of $ 1,147,967 was measured as of December 31, 2023, and was determined by using the alternative measurement method for employers in plans with fewer than one hundred total plan members, as provided for in GASB Statement No. 75. Actuarial Assumptions and Other Inputs. The total OPEB liability as of the December 31, 2023 measurement date was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Projected salary increases 3.70% Discount rate 3.26% Heathcare cost trend rate 4.70% for 2023, 4.80% for 2024, 4.70% for 2025, 4.60% for 2026, 4.50% for 2027, 4.40% for 2028, 4.30% for 2029, and 4.20% for later years Retiree's share of benefit-related costs 0.00% of projected health insurance premiums for retirees Projected salary increases were based on the Consumer Price Index-Urban Wage Earners and Clerical Workers CPI-W. The discount rate was based on the 20-Bond GO Index as of December 31, 2023. Mortality rates were based on the Pub-2010 Public Retirement Plans Mortality Tables, with mortality improvement projected for 10 years. Employee turnover was derived from data maintained by the U.S. Office of Personnel Management regarding the most recent experience of the employee group covered by the Federal Employees Retirement System. ---PAGE BREAK--- 57 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 15 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued) Changes in the Total OPEB Liability of the City. The changes in the components of the total OPEB liability of the City for the year ended December 31, 2023 were as follows: Governmental Activities Business-type Activities General Gas Solid Waste Fund Fund Fund Total Balance at December 31, 2022 389,871 $ 344,288 $ 102,714 $ 836,873 $ Changes for the year: Service cost 21,609 12,966 4,322 38,897 Interest 18,478 11,087 3,696 33,261 Differences between expected and actual experience 107,030 64,219 21,406 192,655 Effect of assumption changes or inputs 34,123 20,474 6,825 61,422 Contributions-employer (15,141) - - (15,141) Net changes 166,099 108,746 36,249 311,094 Balance at December 31, 2023 555,970 $ 453,034 $ 138,963 $ 1,147,967 $ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following table presents the total OPEB liability of the City, calculated using the discount rate of 3.26 percent, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percent lower (2.26 percent) or 1 percent higher (4.26 percent) than the current discount rate: Current 1% Decrease Discount Rate 1% Increase (2.26%) (3.26%) (4.26%) City's Total OPEB Liability 1,297,242 $ 1,147,967 $ 1,023,538 $ Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates. The following table presents the total OPEB liability of the City, calculated using a healthcare cost trend rate of 4.70 percent, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percent lower (3.70 percent) or 1 percent higher (5.70 percent) than the current healthcare cost trend rate: Current 1% Decrease Healthcare Rate 1% Increase (3.70%) (4.70%) (5.70%) City's Total OPEB Liability 994,932 $ 1,147,967 $ 1,334,133 $ OPEB Expense The City recognized $ 311,094 in OPEB expense for the year ended December 31, 2023. ---PAGE BREAK--- (Continued) 58 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 16 – COMMITMENTS AND SUBSEQUENT EVENTS Commitments The City was awarded a Community Home Investment Program (CHIP) grant totaling $ 611,184. Proceeds from this grant will be used to fund rehabilitation and new construction assistance to qualifying homeowners. The City has completed several rehabilitation projects and is continuing to accept grant applications for this program. On October 21, 2021, the City was awarded a Community Development Block Grant (CDBG) for multi- activities totaling $ 1,000,000. Proceeds of this grant will be combined with local funds and used to revitalize blighted neighborhoods within the City. The estimated total cost of this project is $ 1,168,000. Construction on this project is expected to be completed in 2024. On October 25, 2023, the City was awarded a Community Development Block Grant (CDBG) for multi- activities totaling $ 1,250,000. Proceeds of this grant will be combined with local funds and used to revitalize blighted neighborhoods within the City. The estimated total cost of this project is $ 1,524,500. Preliminary engineering and design is being finalized on this project. The City has received $ 2,437,792 from the State of Georgia Governor’s Office of Planning and Budget and has earned interest on these funds totaling $ 33,318. These funds represent the City’s distributive share of Coronavirus Local Fiscal Recovery Funds (LFRF) awarded to States by the U.S. Department of Treasury as part of the American Rescue Plan Act (ARPA). The four broad categories in which these funds can be used are as follows:  To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel and hospitality.  To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.  For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.  To make necessary investments in water, sewer, or broadband infrastructure. As of December 31, 2023, the City had not spent any of these funds; accordingly, these funds are deemed to be unearned revenues and are reported as such in the financial statements. The award funds can be used to cover eligible costs incurred during the period that begins on March 3, 2021, and ends on December 31, 2024. Management is in the process of determining how best to utilize these funds. ---PAGE BREAK--- 59 CITY OF THOMSON, GEORGIA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 16 – COMMITMENTS AND SUBSEQUENT EVENTS (Continued) As of December 31, 2023, amounts spent to date and the estimated remaining commitments on these projects are as follows: Spent Remaining Project Description To Date Commitment 2016 CHIP grant 567,489 $ 43,695 $ 2021 CDBG multi-activities grant 1,011,549 156,451 2023 CDBG multi-activities grant - 1,524,500 ARPA Funds - 2,471,110 1,579,038 $ 4,195,756 $ Subsequent Events In preparing these financial statements, the City’s management has evaluated events and transactions for potential recognition or disclosure through January 20, 2025 the date the financial statements were available for issuance. ---PAGE BREAK--- 60 [This page intentionally left blank.] ---PAGE BREAK--- 61 REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- 62 CITY OF THOMSON, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS RETIREMENT PLAN 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service cost 84,776 $ 79,283 $ 90,188 $ 104,526 $ 93,919 $ 100,576 $ 100,271 $ 111,210 $ 103,502 $ Interest 496,105 505,016 482,507 499,072 480,328 474,529 453,408 434,865 420,728 Differences between expected and actual experience 129,467 (223,017) 181,433 (22,255) 58,045 (38,201) 106,476 (61,962) (55,422) Changes of assumptions - - - - - - - 53,372 (31,175) Benefit payments, including refunds of employee contributions (449,644) (451,749) (440,878) (413,045) (400,441) (403,329) (387,984) (315,022) (299,574) Other - (7,337) - 62,603 150,187 100,742 - - - Net change in total pension liability 260,704 (97,804) 313,250 230,901 382,038 234,317 272,171 222,463 138,059 Total pension liability, beginning 7,273,929 7,371,733 7,058,483 6,827,582 6,445,544 6,211,227 5,939,056 5,716,593 5,578,534 Total pension liability, ending 7,534,633 7,273,929 7,371,733 7,058,483 6,827,582 6,445,544 6,211,227 5,939,056 5,716,593 Plan Fiduciary Net Position Contributions-employer 208,245 290,996 217,663 235,852 230,848 218,992 221,170 234,918 256,230 Net investment income (431,392) 377,804 1,977,855 (339,540) 186,847 602,227 559,398 12,857 403,968 Benefit payments, including refunds of employee contributions (449,644) (451,749) (440,878) (413,045) (400,441) (403,329) (387,984) (315,022) (299,574) Administrative expenses (15,541) (14,771) (15,723) (16,344) (15,610) (15,539) (15,891) (11,223) (10,258) Net change in fiduciary net position (688,332) 202,280 1,738,917 (533,077) 1,644 402,351 376,693 (78,470) 350,366 Plan fiduciary net position, beginning 6,638,271 6,435,991 4,697,074 5,230,151 5,228,507 4,826,156 4,449,463 4,527,933 4,177,567 Plan fiduciary net position, ending 5,949,939 6,638,271 6,435,991 4,697,074 5,230,151 5,228,507 4,826,156 4,449,463 4,527,933 Net pension liability, ending 1,584,694 $ 635,658 $ 935,742 $ 2,361,409 $ 1,597,431 $ 1,217,037 $ 1,385,071 $ 1,489,593 $ 1,188,660 $ Plan's fiduciary net position as a percentage of the total pension liability 78.97% 91.26% 87.31% 66.55% 76.60% 81.12% 77.70% 74.92% 79.21% Covered employee payroll during the measurement date 2,100,852 $ 1,953,951 $ 1,773,222 $ 1,998,665 $ 2,247,522 $ 2,041,493 $ 2,009,032 $ 2,158,604 $ 2,176,111 $ Net pension liability as a percentage of covered payroll 75.43% 32.53% 52.77% 118.15% 71.08% 59.62% 68.94% 69.01% 54.62% Notes to the Schedule: Historical information prior to the implementation of GASB Statement Nos. 67/68 is not required. The schedule will present 10 years of information as it is accumulated. ---PAGE BREAK--- 63 CITY OF THOMSON, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS RETIREMENT PLAN 2023 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 237,723 $ 277,661 $ 264,555 $ 231,427 $ 237,328 $ 228,688 $ 215,760 $ 222,973 $ 238,900 $ Contributions in relation to the actuarially determined contribution 237,723 277,661 264,555 231,427 237,328 228,688 215,760 222,973 238,900 Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered employee payroll during the measurement period 2,100,852 $ 1,953,951 $ 1,773,222 $ 1,998,665 $ 2,247,522 $ 2,041,493 $ 2,009,032 $ 2,158,604 $ 2,176,111 $ Contributions as a percentage of covered employee payroll 11.32% 14.21% 14.92% 11.58% 10.56% 11.20% 10.74% 10.33% 10.98% Notes to the Schedule: Actuarial Assumptions: Valuation Date July 1, 2023 Cost Method Projected Unit Credit Asset Valuation Method Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10% of the amount that the value exceeds or is less than the market value at the end of the year. The actuarial value is adjusted if necessary, to be within 20% of market value. Assumed Rate of Return 7.375% Projected Salary Increases 2.25% Cost of Living Adjustments 0.00% Amortization Method Closed level dollar for remaining unfunded liability Remaining Amortization Period Varies, with a net effective amortization period of 11 years Historical information prior to the implementation of GASB Statement Nos. 67/68 is not required. The schedule will present 10 years of information as it is accumulated. ---PAGE BREAK--- 64 CITY OF THOMSON, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POSTEMPLOYMENT BENEFITS PLAN 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service cost 38,897 $ 58,067 $ 61,005 $ 45,134 $ 46,947 $ 51,122 $ Interest 33,261 26,326 22,970 29,239 40,869 40,155 Differences between expected and actual experience 192,655 (178,943) (157,318) 117,536 (309,572) (63,892) Changes of assumptions 61,422 (155,715) (36,208) 164,486 35,634 (64,019) Benefit payments (15,141) (20,207) (19,214) (25,432) (19,313) (21,348) Net change in total OPEB liability 311,094 (270,472) (128,765) 330,963 (205,435) (57,982) Total OPEB liability, beginning 836,873 1,107,345 1,236,110 905,147 1,110,582 1,168,564 Total OPEB liability, ending 1,147,967 $ 836,873 $ 1,107,345 $ 1,236,110 $ 905,147 $ 1,110,582 $ Covered employee payroll during the the measurement period 2,432,848 $ 2,420,557 $ 2,103,672 $ 2,162,693 $ 2,602,897 $ 2,402,173 $ Total OPEB liability as a percentage of covered payroll 47.19% 34.57% 52.64% 57.16% 34.77% 46.23% Notes to the Schedule: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. See the notes to the financial statements for the actuarial methods and significant assumptions used to determine the total OPEB liability. Historical information prior to the implementation of GASB Statement No. 75 is not required. The schedule will present 10 years of information as it is accumulated. ---PAGE BREAK--- 65 INDIVIDUAL AND COMBINING FUND STATEMENTS ---PAGE BREAK--- 66 [This page intentionally left blank.] ---PAGE BREAK--- 67 GENERAL FUND The General Fund is used to account for resources traditionally associated with the City that are not required legally, or by sound financial management, to be accounted for in another fund. ---PAGE BREAK--- (Continued) 68 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND BY OBJECT FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Taxes Property tax 1,265,590 $ 1,243,190 $ 1,229,808 $ (13,382) $ Intangible tax 24,000 15,000 14,771 (229) Railroad equipment tax 600 600 615 15 Real estate transfer tax 11,000 9,500 9,155 (345) Franchise tax 382,500 392,900 392,691 (209) Local option sales tax 1,375,000 1,375,000 1,375,000 - Alcoholic beverage tax 105,000 129,000 128,613 (387) Energy excise tax 80,000 85,500 85,147 (353) Occupation tax 64,000 64,000 64,577 577 Insurance premium tax 562,000 604,000 603,972 (28) Financial institution tax 25,000 36,900 36,832 (68) Penalties and interest 3,000 3,000 3,259 259 Payment in lieu of taxes 19,000 19,000 19,248 248 Total taxes 3,916,690 3,977,590 3,963,688 (13,902) Licenses and Permits Alcoholic beverage licenses 17,000 19,000 18,700 (300) Fireworks licenses 500 500 - (500) Golf cart permits 500 500 240 (260) Building permits 40,000 27,100 27,002 (98) Total licenses and permits 58,000 47,100 45,942 (1,158) Intergovernmental Public safety grant - 12,500 12,325 (175) Shared revenues-SPLOST - 3,300 - (3,300) Façade grants - 27,400 27,130 (270) Water and sewer joint venture 138,895 138,895 137,666 (1,229) Total intergovernmental 138,895 182,095 177,121 (4,974) Charges for Services Election qualifying fees 1,500 2,400 2,400 - Street lights - 1,150 1,140 (10) Occupation of public rights of way fees 3,000 3,000 3,165 165 Total charges for services 4,500 6,550 6,705 155 Fines and Forfeitures Police court fines 180,150 203,450 203,238 (212) Total fines and forfeitures 180,150 203,450 203,238 (212) Use of Money and Property Interest income 6,350 97,400 97,306 (94) Rents 54,423 50,500 49,880 (620) Cemetary lot sales 55,000 39,000 39,650 650 Total use of money and property 115,773 186,900 186,836 (64) Other Miscellaneous 71,100 72,515 69,138 (3,377) Total other 71,100 72,515 69,138 (3,377) Total revenues 4,485,108 4,676,200 4,652,668 (23,532) ---PAGE BREAK--- (Continued) 69 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND BY OBJECT FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) EXPENDITURES General government Mayor and Council 72,425 79,925 75,413 (4,512) Voter registration 20,345 48,045 47,978 (67) General administration 738,063 781,147 748,989 (32,158) Tax commissioner 17,157 17,157 17,157 - Tax assessor 2,110 2,110 2,110 - Total general government 850,100 928,384 891,647 (36,737) Public safety Police 1,743,157 1,754,117 1,693,541 (60,576) Fire 584,160 620,350 620,316 (34) Animal shelter 39,259 39,259 32,883 (6,376) Total public safety 2,366,576 2,413,726 2,346,740 (66,986) Public works Street department 904,672 905,918 879,158 (26,760) Total public works 904,672 905,918 879,158 (26,760) Community services Senior citizen center 98,375 98,375 88,115 (10,260) Community centers 35,400 51,900 51,111 (789) Transportation services 78,988 100,200 100,131 (69) Total community services 212,763 250,475 239,357 (11,118) Culture and recreation Recreation 357,118 357,118 326,436 (30,682) Library 97,050 97,050 97,050 - Total culture and recreation 454,168 454,168 423,486 (30,682) Housing and development Urban redevelopment 10,000 10,000 2,400 (7,600) Downtown development - 27,400 32,547 5,147 Planning and zoning 107,655 107,655 87,940 (19,715) Code enforcement 70,464 71,464 61,533 (9,931) Economic development 31,423 31,423 31,423 - CSRA Regional Commission 7,800 7,800 7,904 104 Total housing and development 227,342 255,742 223,747 (31,995) Total expenditures 5,015,621 5,208,413 5,004,135 (204,278) ---PAGE BREAK--- 70 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND BY OBJECT FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) Excess (deficiency) of revenues over (under) expenditures (530,513) (532,213) (351,467) (180,746) OTHER FINANCING SOURCES (USES) Insurance claims 6,000 7,500 7,447 (53) Gain on sales of surplus property 5,000 15,200 15,165 (35) Prior year fund balance 232,000 232,000 232,000 - Transfers in 337,613 337,613 332,239 (5,374) Transfers out (50,100) (60,100) (52,809) (7,291) Total other financing sources (uses) 530,513 532,213 534,042 1,829 CHANGE IN FUND BALANCE - $ - $ 182,575 $ 182,575 $ ---PAGE BREAK--- 71 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Housing Development Action Grant Loan Fund - This fund was established to account for the activities of the City’s HODAG revolving loan fund for urban redevelopment and housing. The HODAG Loan Fund is not being funded with federal or state grant funds. Urban Development Action Grant Loan Fund - This fund was established to account for the activities of the City’s UDAG revolving loan fund for urban redevelopment and housing. The UDAG Loan Fund is not being funded with federal or state grant funds. Police Condemnation and Forfeiture Fund - This fund was established to account for revenues received from condemnations and forfeitures that are to be used for law enforcement purposes. 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. 2020, and 2023 CDBG Capital Project Funds - These funds were established to account for Community Development Block Grant funds (awarded in the City’s name) that are used for redevelopment of local neighborhoods. 2016 CHIP Grant Capital Project Fund - This fund was established to account for proceeds received from a Community Home Investment Program that are used to fund rehabilitation and new construction assistance to qualifying homeowners. Monument Capital Project Fund - This fund was established to account for proceeds accumulated from various sources to commission and construct a statue in honor of a local musician. RSVP Capital Project Fund - This fund was established to account for proceeds donated from private sources to be used in implementing the Downtown Renaissance Strategic Visioning and Planning Process (RSVP) to prioritize downtown redevelopment issues and establish a consensus around what must be achieved in the short and long term. LMIG Capital Project Fund - This fund was established to account for proceeds from the Georgia Department of Transportation Local Maintenance and Improvement Grant Program to fund street maintenance and improvements. TIA SPLOST Capital Project Fund - This fund was established to account for proceeds from the Transportation Investment Act Special Purpose Local Option Sales Tax to provide funding for road and street maintenance, paving, and other related costs. SPLOST Capital Project Fund - This fund was established to account for proceeds from the Special Purpose Local Option Sales Tax used to provide grant matching funds for other capital projects and other capital expenditures funded with SPLOST proceeds. ---PAGE BREAK--- 72 CITY OF THOMSON, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2023 Special Revenue Capital Projects Housing Urban Police 2020 2023 2016 Total Development Development Condemnation CDBG CDBG CHIP Grant Monument RSVP LMIG TIA SPLOST SPLOST Nonmajor Action Grant Action Grant and Forfeiture Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Governmental Loan Fund Loan Fund Fund Fund Fund Fund Fund Fud Fund Fund Fund Funds ASSETS Cash and cash equivalents 233,104 $ 132,045 $ 24,732 $ 34 $ 16 $ 3,392 $ 63,232 $ 28,002 $ 100 $ 177,773 $ - $ 662,430 $ Receivables (net of allowance for uncollectibles): Notes-current 800 22,260 - - - - - - - - - 23,060 Notes-long-term - 350,105 - - - - - - - - - 350,105 Lease-current - 58,198 - - - - - - - - - 58,198 Lease-long-term - 122,128 - - - - - - - - - 122,128 Interest - 1,638 - - - - - - - - - 1,638 Intergovernmental receivables - - - - - - - - - 36,112 - 36,112 Interfund receivables 5,191 13,307 - - - - - - - - - 18,498 Total assets 239,095 $ 699,681 $ 24,732 $ 34 $ 16 $ 3,392 $ 63,232 $ 28,002 $ 100 $ 213,885 $ - $ 1,272,169 $ LIABILITIES Accounts payable - $ - $ - $ - $ - $ 166 $ - $ - $ - $ 2,025 $ - $ 2,191 $ Interfund payables 1,968 33,699 - - - - - - - - - 35,667 Total liabilities 1,968 33,699 - - - 166 - - - 2,025 - 37,858 DEFERRED INFLOWS OF RESOURCES Leases receivable - 175,239 - - - - - - - - - 175,239 Total deferred inflows of resources - 175,239 - - - - - - - - - 175,239 FUND BALANCES Nonspendable - 296,994 - - - - - - - - - 296,994 Restricted for: Public safety - - 24,732 - - - - - - - - 24,732 Public works - - - - - - - - 100 211,860 - 211,960 Housing and development 237,127 193,749 - 34 16 3,226 - - - - - 434,152 Committed to: Housing and development - - - - - - 63,232 - - - - 63,232 Assigned to: Housing and development - - - - - - - 28,002 - - - 28,002 Total fund balances 237,127 490,743 24,732 34 16 3,226 63,232 28,002 100 211,860 - 1,059,072 Total liabilities, deferred inflows of resources, and fund balances 239,095 $ 699,681 $ 24,732 $ 34 $ 16 $ 3,392 $ 63,232 $ 28,002 $ 100 $ 213,885 $ - $ 1,272,169 $ ---PAGE BREAK--- 73 CITY OF THOMSON, GEORGIA COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2023 Special Revenue Capital Projects Housing Urban Police 2020 2023 2016 Total Development Development Condemnation CDBG CDBG CHIP Grant Monument RSVP LMIG TIA SPLOST SPLOST Nonmajor Action Grant Action Grant and Forfeiture Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Capital Project Governmental Loan Fund Loan Fund Fund Fund Fund Fund Fund Fud Fund Fund Fund Funds REVENUES Taxes - $ - $ - $ - $ - $ - $ - $ - $ - $ 218,028 $ - $ 218,028 $ Intergovernmental - - - 102,585 - 303,094 - - 93,649 5,184 139,357 643,869 Fines and forfeitures - - 17,211 - - - - - - - - 17,211 Interest income 3,533 21,066 - - - - 957 - - 4,180 - 29,736 Lease income - 58,413 - - - - - - - - - 58,413 Donations from private sources - - - - - - 2,481 - - - - 2,481 Total revenues 3,533 79,479 17,211 102,585 - 303,094 3,438 - 93,649 227,392 139,357 969,738 EXPENDITURES Current: Public safety - - 10,200 - - - - - - - - 10,200 Public works - - - - - - - - - 7,532 - 7,532 Housing and development 496 15,608 - - 84 - 134 - - - - 16,322 Capital outlay: Public works - - - - - - - - 132,271 274,030 96,640 502,941 Housing and development - - - 102,585 - 299,920 - - - - - 402,505 Total expenditures 496 15,608 10,200 102,585 84 299,920 134 - 132,271 281,562 96,640 939,500 Excess (deficiency) of revenues over (under) expenditures 3,037 63,871 7,011 - (84) 3,174 3,304 - (38,622) (54,170) 42,717 30,238 OTHER FINANCING SOURCES (USES) Transfers in - - - - 100 - - - - - - 100 Transfers out - (16,900) - - - - - - - - (42,717) (59,617) Total other financing sources (uses) - (16,900) - - 100 - - - - - (42,717) (59,517) Net change in fund balances 3,037 46,971 7,011 - 16 3,174 3,304 - (38,622) (54,170) - (29,279) Fund balances, beginning of year 234,090 443,772 17,721 34 - 52 59,928 28,002 38,722 266,030 - 1,088,351 Fund balances, end of year 237,127 $ 490,743 $ 24,732 $ 34 $ 16 $ 3,226 $ 63,232 $ 28,002 $ 100 $ 211,860 $ - $ 1,059,072 $ ---PAGE BREAK--- 74 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL HOUSING DEVELOPMENT ACTION GRANT LOAN FUND FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Interest income - $ - $ 3,533 $ 3,533 $ Available for loans 217,114 217,114 217,364 250 Total revenues 217,114 217,114 220,897 3,783 EXPENDITURES Loans made 217,114 217,114 1,000 (216,114) Housing and development - - 496 496 Total expenditures 217,114 217,114 1,496 (215,618) Excess of revenues over expenditures - - 219,401 219,401 CHANGE IN FUND BALANCE - $ - $ 219,401 $ 219,401 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities Receivables and other assets (216,364) Total reconciliation to GAAP basis (216,364) FUND BALANCE, BEGINNING OF YEAR 234,090 FUND BALANCE, END OF YEAR 237,127 $ ---PAGE BREAK--- 75 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL URBAN DEVELOPMENT ACTION GRANT LOAN FUND FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Interest income - $ - $ 14,172 $ 14,172 $ Rents - - 63,120 63,120 Available for loans 212,411 212,411 228,135 15,724 Total revenues 212,411 212,411 305,427 93,016 EXPENDITURES Loans made 212,411 212,411 183,699 (28,712) Housing and development - - 15,608 15,608 Total expenditures 212,411 212,411 199,307 (13,104) Excess of revenues over expenditures - - 106,120 106,120 OTHER FINANCING SOURCES (USES) Transfers out - - (16,900) (16,900) Total other financing sources (uses) - - (16,900) (16,900) CHANGE IN FUND BALANCE - $ - $ 89,220 89,220 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities Receivables and other assets (42,249) Total reconciliation to GAAP basis (42,249) FUND BALANCE, BEGINNING OF YEAR 443,772 FUND BALANCE, END OF YEAR 490,743 $ ---PAGE BREAK--- 76 CITY OF THOMSON, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL POLICE CONDEMNATION AND FORFEITURE FUND FOR THE YEAR ENDED DECEMBER 31, 2023 Budgetary Basis Variance With Original Amended and Final Budget Budget Final Budget Actual Over (Under) REVENUES Fines and forfeitures 5,000 $ 5,000 $ 17,211 $ 12,211 $ Total revenues 5,000 5,000 17,211 12,211 EXPENDITURES Public safety 5,000 5,000 10,200 5,200 Total expenditures 5,000 5,000 10,200 5,200 Excess of revenues over expenditures - - 7,011 7,011 CHANGE IN FUND BALANCE - $ - $ 7,011 7,011 $ FUND BALANCE, BEGINNING OF YEAR 17,721 FUND BALANCE, END OF YEAR 24,732 $ ---PAGE BREAK--- 77 OTHER SUPPLEMENTARY INFORMATION ---PAGE BREAK--- 78 CITY OF THOMSON, GEORGIA COMMUNITY DEVELOPMENT BLOCK GRANTS PROJECT COST SCHEDULE (CASH BASIS) FOR THE YEAR ENDED DECEMBER 31, 2023 Latest Accumulated Accumulated Approved Expenditures Expenditures Grand Total Questioned Program Activity Budget To Date To Date Expenditures Costs Activity Number CDBG Funds CDBG Funds Other Funds To Date (Explain) Grant Number 20b-x-094-2-6163 Water Facility P-03J-01 153,550 $ 165,765 $ - $ 165,765 $ none Sewer Facility P-03J-02 352,825 277,617 - 277,617 none Flood/Drainage P-03K-02 101,665 139,269 - 139,269 none Rehabilitation of private property H-14A-01 331,960 362,349 - 362,349 none Administration A-21A-00 60,000 55,000 - 55,000 none Preliminary Engineering - - 97,500 97,500 none 1,000,000 $ 1,000,000 $ 97,500 $ 1,097,500 $ none Source of Other Funds: Local Match Grant Number 21b-x-094-2-6189 Sewer Facility P-03J-02 310,950 166,743 50,677 217,420 none Street improvements P-03K-01 105,600 112,197 17,902 130,099 none Flood/Drainage P-03K-02 188,850 314,460 13,418 327,878 none Rehabilitation of private property H-14A-01 331,412 211,964 - 211,964 none Administration A-21A-00 63,188 53,188 - 53,188 none Preliminary Engineering - - 71,000 71,000 none 1,000,000 $ 858,552 $ 152,997 $ 1,011,549 $ none Source of Other Funds: Local Match Grant Number 23b-x-094-2-6333 Sewer Facility P-03J-02 230,300 - - - none Street improvements P-03K-01 234,100 - - - none Flood/Drainage P-03K-02 174,000 - - - none Rehabilitation of private property H-14A-01 538,900 - - - none Administration A-21A-00 72,700 - - - none Preliminary Engineering - - - - none 1,250,000 $ - $ - $ - $ none Source of Other Funds: Local Match ---PAGE BREAK--- 79 CITY OF THOMSON, GEORGIA COMMUNITY DEVELOPMENT BLOCK GRANTS SOURCE AND APPLICATION OF FUNDS SCHEDULE (CASH BASIS) FOR THE YEAR ENDED DECEMBER 31, 2023 Grant Number 20b-x-094-2-6163 Total Program Year 2020 Funds Allocated to Recipient 1,000,000 $ Less: Total Program Year 2020 Funds Drawn by Recipient 1,000,000 Funds Still Available from Program Year 2020 Resources - $ Total Program Year 2020 Funds Drawn and Received by Recipient 1,000,000 $ Less: Funds Applied and Expended to Program Year 2020 Costs 1,000,000 Total Program Year 2020 Funds Held by Recipient - $ Grant Number 21b-x-094-2-6189 Total Program Year 2021 Funds Allocated to Recipient 1,000,000 $ Less: Total Program Year 2021 Funds Drawn by Recipient 858,552 Funds Still Available from Program Year 2021 Resources 141,448 $ Total Program Year 2021 Funds Drawn and Received by Recipient 858,552 $ Less: Funds Applied and Expended to Program Year 2021 Costs 858,552 Total Program Year 2021 Funds Held by Recipient - $ Grant Number 23b-x-094-2-6333 Total Program Year 2023 Funds Allocated to Recipient 1,250,000 $ Less: Total Program Year 2023 Funds Drawn by Recipient - Funds Still Available from Program Year 2023 Resources 1,250,000 $ Total Program Year 2023 Funds Drawn and Received by Recipient - $ Less: Funds Applied and Expended to Program Year 2023 Costs - Total Program Year 2023 Funds Held by Recipient - $ ---PAGE BREAK--- 80 CITY OF THOMSON, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FOR THE YEAR ENDED DECEMBER 31, 2023 Original Revised Estimated Estimated Estimated Prior Current Percentage of Project Cost Cost Years Year Total Completion SPLOST VI 2015 - 2020 Building Improvements 246,000 $ 246,000 $ - $ - $ - $ 0% Public Safety 750,000 750,000 - - - 0% Roads/Transportation 930,040 930,040 182,081 - 182,081 20% Totals 1,926,040 $ 1,926,040 $ 182,081 $ - $ 182,081 $ SPLOST VII 2021 - 2026 Public Works Equipment 215,000 $ 215,000 $ - $ 139,357 $ 139,357 $ 65% RSVP Initiatives 125,000 125,000 - - - 0% Chamber Office Roof 30,000 30,000 - - - 0% Totals 370,000 $ 370,000 $ - $ 139,357 $ 139,357 $ ---PAGE BREAK--- 81 COMPLIANCE AND SINGLE AUDIT SECTION ---PAGE BREAK--- 82 CITY OF THOMSON, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2023 Federal Agency or Pass-Through CFDA Entity Identifying Federal Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S. Department of Housing and Urban Development Pass-through programs from: State of Georgia Department of Community Affairs Community Development Block Grants/State's Program 14.228 20b-x-094-2-6163 102,585 $ State of Georgia Department of Community Affairs Community Development Block Grants/State's Program 14.228 21b-x-094-2-6189 858,552 Total Community Development Block Grants/State's Program 961,137 Community Home Investment Program 14.239 2016-114 299,920 Total Community Home Investment Program 299,920 Total U.S. Department of Housing and Urban Development 1,261,057 U.S Department of Justice Bureau of Justice Assistance Body Worn Camera Policy Implementation Program 16.835 15PBJA-22-GG-03309-BWCX 9,825 Total U.S. Department of Justice 9,825 U.S. Department of Transportation Federal Aviation Administration Pass-through programs from: State of Georgia Department of Transportation COVID-19 Airport Coronavirus Relief Grant Program 20.106 APO23-9052-25(189) 111,589 Total Airport Coronavirus Relief Grant Program 111,589 Total U.S. Department of Transportation Federal Aviation Administration 111,589 U.S. Environmental Protection Agency Pass-through programs from: State of Georgia Environmental Finance Authority Capitalization Grants for Drinking Water State Revolving Funds 66.468 DW2017007 53,912 Total Capitalization Grants for Drinking Water State Revolving Funds 53,912 Capitalization Grants for Clean Water State Revolving Funds 66.458 CW2020015 977,429 Total Capitalization Grants for Clean Water State Revolving Funds 977,429 Total U.S. Environmental Protection Agency 1,031,341 Total expenditures of federal awards 2,413,812 $ See accompanying notes to schedule of expenditures of federal awards. ---PAGE BREAK--- 83 CITY OF THOMSON, GEORGIA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2023 NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Thomson, Georgia and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2 - NONCASH AWARDS The City of Thomson, Georgia did not receive any noncash federal awards during the year ended December 31, 2023. NOTE 3 - INDIRECT COST RATE The City of Thomson, Georgia has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - DONATED PERSONAL PROTECTIVE EQUIPMENT (PPE) The City of Thomson, Georgia did not receive any donated personal protective equipment (PPE) from federal sources during the year ended December 31, 2023. ---PAGE BREAK--- 84 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of City Council City of Thomson Thomson, 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 unit, each major fund, and the aggregate remaining fund information of the City of Thomson, Georgia (the “City”), as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 20, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 may exist that have not been identified. ---PAGE BREAK--- 85 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 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 City’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. Thomson, Georgia January 20, 2025 ---PAGE BREAK--- 86 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of Thomson Thomson, Georgia Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Thomson, Georgia’s (the “City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2023. The City’s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. ---PAGE BREAK--- 87 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. ---PAGE BREAK--- 88 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Thomson, Georgia January 20, 2025 ---PAGE BREAK--- 89 CITY OF THOMSON, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2023 SECTION I. SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting:  Material weakness(es) identified? Yes X No  Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major federal programs:  Material weakness(es) identified? Yes X No  Significant deficiency(ies) identified? Yes X None reported Type of auditor's report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2CFR 200.516(a)? Yes X No Identification of major federal programs: CFDA # Program / Cluster Name 66.458 Capitalization Grants for Clean Water State Revolving Funds Dollar threshold used to distinguish between Type A and Type B programs $ 750,000 Auditee qualified as low-risk auditee? X Yes No SECTION II. FINANCIAL STATEMENT FINDINGS None reported SECTION III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported ---PAGE BREAK--- 90 CITY OF THOMSON, GEORGIA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2023 None reported