Document Thomson-Mcduffie_doc_8746a2086d

ANNUAL FINANCIAL REPORT MCDUFFIE COUNTY, GEORGIA YEAR ENDED DECEMBER 31, 2021 ---PAGE BREAK--- ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2021 TABLE OF CONTENTS Page INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 5 BASIC FINANCIAL STATEMENTS 19 Statement of Net Position 20 Statement of Activities 21 Balance Sheets – Governmental Funds 22 Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities 23 Statements of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 24 Reconciliation of the Statements of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statements of Net Position – Proprietary Funds 26 Statements of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 27 Statements of Cash Flows – Proprietary Funds 28 Statement of Fiduciary Assets and Liabilities – Fiduciary Funds 29 Notes to Financial Statements 30 REQUIRED SUPPLEMENTARY INFORMATION 56 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – General Fund 57 Schedule of Net Pension Liability – ACCG Pension Plan for McDuffie County Employees 59 Schedule of Contributions – ACCG Pension Plan for McDuffie County Employees 60 Schedule of Proportionate Share of the Net Pension Liability 61 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2021 TABLE OF CONTENTS Page COMBINING AND INDIVIDUAL FUND STATEMENTS 62 Major Governmental Funds 63 Nonmajor Governmental Funds 64 Combining Balance Sheet – Nonmajor Governmental Funds 65 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 66 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Jail Fund 67 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Law Library Fund 68 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Juvenile Probation Fund 69 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Task Force Fund 72 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Hotel/Motel Tax Fund 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Emergency Telephone System Fund 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Landfill Surcharge Fund 75 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Wireless Emergency Telephone System Fund 76 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Forfeiture Fund 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – LMIG Fund 78 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Drug Court 79 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Transportation Fund 80 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Multiple Grant Fund 81 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – American Rescue Fund 82 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2020 TABLE OF CONTENTS Page Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – CDBG Fund 83 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Debt Service Fund 84 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Lawn Care Fund 85 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – Internal Shop Fund 86 Fiduciary Funds 87 Combining Balance Sheet – Fiduciary Funds 88 Combining Statement of Changes in Assets and Liabilities – Fiduciary Funds 89 SUPPLEMENTARY INFORMATION 91 Schedule of Special Purpose Local Option Sales Tax 2004-2008 92 Schedule of Special Purpose Local Option Sales Tax 2009-2014 93 Schedule of Special Purpose Local Option Sales Tax 2015-2020 94 Schedule of Special Purpose Local Option Sales Tax 2021-2026 95 Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants 96 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 98 Schedule of Expenditures of Federal Awards 101 Findings and Questioned Costs 102 ---PAGE BREAK--- (This page is intentionally left blank.) ---PAGE BREAK--- 1 INDEPENDENT AUDITORS’ REPORT Board of Commissioners McDuffie County, Georgia Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of McDuffie County, Georgia, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. We did not audit the financial statements of the McDuffie County Health Department, a discretely presented component unit, whose statements reflect total assets and deferred outflows of $773,754 and total net position of $65,071 as of June 30, 2021, and total revenues of $782,757 for the year then ended. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the McDuffie County Health Department, is based on the report of other auditors. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of McDuffie County, Georgia, as of December 31, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of McDuffie County, Georgia and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about McDuffie County, Georgia 's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. ---PAGE BREAK--- 2 McDuffie County, Georgia Page 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of McDuffie County, Georgia 's internal control Accordingly, no such opinion is expressed, evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about McDuffie County, Georgia 's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (on pages 5 through 18), the Schedule of the Net Pension Liability (on page 60), the Schedule of Contributions (on page 61), the Schedule of Proportionate Share of the Net Pension Liability (on page 62) and budgetary comparison information (on page 69 through 86) be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. ---PAGE BREAK--- 3 McDuffie County, Georgia Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise McDuffie County, Georgia 's basic financial statements. The combining and individual nonmajor fund financial statements, the Schedule of Special Purpose Local Option Sales Taxes 2004-2008, Schedule of Special Purpose Local Option Sales Taxes 2009-2014, Schedule of Special Purpose Local Option Sales Taxes 2015-2020, Schedule of Special Purpose Local Option Sales Taxes 2021-2026 and Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, the Schedule of Special Purpose Local Option Sales Taxes 2004- 2008, Schedule of Special Purpose Local Option Sales Taxes 2009-2014, Schedule of Special Purpose Local Option Sales Taxes 2015-2020, Schedule of Special Purpose Local Option Sales Taxes 2021-2026 and Schedule of Project Expenditures and Source and Application of Funds for Community Development Block Grants are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2022, on our consideration of McDuffie County Georgia's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of McDuffie County, Georgia 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering McDuffie County Georgia's internal control over financial reporting and compliance. The Baird Audit Group, LLC Certified Public Accountants Augusta, Georgia June 14, 2022 ---PAGE BREAK--- 4 (This page is intentionally left blank.) ---PAGE BREAK--- 5 MANAGEMENT’S DISCUSSION AND ANALYSIS ---PAGE BREAK--- 6 MCDUFFIE COUNTY GOVERNMENT MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 As management of McDuffie County, we offer the readers of our financial statements this narrative overview and analysis of the financial activities for the fiscal year ended December 31, 2021. We encourage readers to consider the information presented in this analysis along with the complete financial statements and notes in the 2021 Audit Report to enhance their understanding of McDuffie County’s financial performance. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to McDuffie County Government’s financial statements which include government-wide and fund statements as well as notes to the financial statements. This report also contains other supplementary information in addition to the basic financials that may be of interest to the reader. McDuffie County’s basic financial statements are comprised of three components: The first component is government-wide financial statements, second is fund financial statements and third, notes to the financial statements. The Government-wide financial statements present an overall picture of McDuffie County’s financial position and results of operations. The Fund financial statements present financial information for McDuffie County’s major funds. The Notes to the financial statements provide additional information concerning McDuffie County’s finances that are not disclosed in the Government-wide or Fund financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a similar manner to a private-sector business. The statement of net position presents information on all the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. The purpose of the design of the statement of activities is to show the financial reliance of the County’s distinct activities or functions on revenues provided by the County’s taxpayers. This statement also presents a comparison between direct expense and program revenues for each function of the government. Both statements attempt to distinguish functions of McDuffie County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). In the Statement of Net Position and the Statement of Activities, we divide the County into three kinds of activities:  Governmental activities—Most of the County’s basic services are reported here, including general government, public safety, highway and streets, health and welfare, culture and recreation, judicial system and economic development.  Business-type activities—The County charges a fee to customers to help cover the cost of certain services it provides. The County’s Solid Waste, Emergency Medical Services, Raysville and Big Hart Campground operations are reported here. ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 7  Component units-- The County includes two separate entities in our report, The Development Authority of McDuffie County and the City of Thomson, and the McDuffie County Health Department. The Development Authority serves to promote, pursue and implement economic development in the County. The Health Department is a public health department serving all citizens and non-citizens of McDuffie County needing the available services provided by the Health Department. The government-wide financial statements can be found on pages 20-21 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Like other state and local governments, McDuffie County uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information present for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This will allow readers to better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains 35 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the major funds. McDuffie County reports five major governmental funds – General Fund, SPLOST VI, SPLOST VII, TSPLOST, and Other Governmental Funds. Proprietary Funds The Government has three types of proprietary funds report used to account for activities that operate similar to commercial enterprises found in the private sector. The proprietary funds are the Solid Waste fund, EMS and Big Hart and Raysville campgrounds. This fund charges fees for services provided to outside customers including other local governments and are known as enterprise funds. The proprietary fund statements can be found on pages 26-28 of this report. Fiduciary Funds Fiduciary Funds are used to account for resources held by the government for private organizations, other governments or other departments inside the government. The government is responsible for ensuring that these assets are used only for their intended purposes and are paid to the intended recipients. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County’s operation or programs. However, the accounting used for fiduciary funds is much like that used for proprietary funds. ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 8 The basic fiduciary fund financial statements can be found on pages 87-89 of this report. Government-wide Financial Analysis Net position may serve over time as useful indicators of a Government’s overall financial position to determine if the Government is improving or deteriorating. The Statement of Net Position presents information on all the Government’s assets/deferred outflows and liabilities/deferred inflows, with the difference being reported as net position. Government Assets exceed liabilities by $62 million for December 31, 2021 and $52 million for December 31, 2020. Management has included comparative data which may be useful in comparing the current year and noting possible changes. The largest portion of McDuffie County’s net position, 68% in 2021 and 71% in 2020, reflects its investment in capital assets such as land, buildings, roads and equipment. The balance of unrestricted net position of 12% in 2021, the same as in 2020, may be used to meet the Government’s obligations to citizens and creditors. The following table provides a summary of the County’s governmental and business-type net position for fiscal year 2021 and 2020. ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 9 MCDUFFIE COUNTY NET POSITION DECEMBER 31, 2021 AND 2020 2021 2020 2021 2020 2021 2020 Assets Current and other assets 23,842,857 $ 18,504,402 $ 1,610,746 $ 1,334,544 $ 25,453,603 $ 19,838,946 $ Capital assets, net 42,853,188 39,062,411 2,879,150 6,092,267 45,732,338 $ 45,154,678 $ Total assets 66,696,045 57,566,813 4,489,896 7,426,811 71,185,941 64,993,624 Deferred Outflows of Resources Deferred outflows related to pension 928,473 1,060,716 - - 928,473 1,060,716 Total deferred outflows of resources 928,473 1,060,716 - - 928,473 1,060,716 Total assets and deferred outflows of resources 67,624,518 58,627,529 4,489,896 7,426,811 72,114,414 66,054,340 Liabilities Current and other liabilities 2,006,978 2,859,121 825,704 367,567 2,832,682 3,226,688 Long-term liabilities 1,440,137 1,744,570 164,533 182,021 4,795,740 1,926,591 Total liabilities 3,447,115 4,603,691 990,237 549,588 7,628,422 5,153,279 Deferred Inflows of Resources Deferred inflows related to pension 1,590,899 1,364,050 - - 1,590,899 1,364,050 Total deferred inflows of resources 1,590,899 1,364,050 - - 1,590,899 1,364,050 Total liabilities and deferred inflows of resourc 5,038,014 5,967,741 990,237 549,588 9,219,321 6,517,329 Net Position Invested in capital assets, net related debt 42,853,188 37,242,411 2,879,150 6,092,267 45,732,338 43,334,678 Restricted - Capital Projects 7,306,542 7,504,775 - - 7,306,542 7,504,775 Restricted - Special Revenues 1,362,742 1,343,100 - - 1,362,742 1,343,100 Restricted - Debt Service 3,487,114 12,286 - - 3,487,114 12,286 Unrestricted 7,576,918 6,557,216 620,509 784,956 8,197,427 7,342,172 Total net position 62,586,504 $ 52,659,788 $ 3,499,659 $ 6,877,223 $ 66,086,163 $ 59,537,011 $ Totals Business-Type Activities Governmental Activities ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 10 Changes in Net Position Governmental Activities Governmental activities increased the Government’s net position by $9,926,716. Listed below are some of the key elements of this change: Governmental Revenues: The main source of revenues for governmental activities is property tax collections which represented 42% of the total governmental revenues. Sales tax increased by $1,251,537 from the previous year along with the franchise, excise taxes, hotel taxes, license and permits. Governmental Functional Expenses: As reflected in the changes for net position, the Government increased its spending by $2,165,121, above the previous year. During 2020, expenditures were lower than usual due to the Covid-19 pandemic. In 2021, capital assets were purchased, which had been on back order and delayed projects were completed. Business-type activities: Business-type activities decreased the Government’s net position by $1,504,004. This decrease is due to the transfer of assets between the Emergency Medical Services and the County’s General Fund. This decrease represents a change in the value of the net assets transferred in the prior fiscal year. The change in net position for Emergency Medical Services was a decrease of $1,702,550, a decrease of $15,892 for Solid Waste and an increase of $214,438 for Big Hart and Raysville Campgrounds. ---PAGE BREAK--- MCDUFFIE COUNTY CHANGES IN NET POSITION 11 2021 2020 2021 2020 2021 2020 Revenues Program Revenues: Charges for Services 2,141,346 903,195 - - 2,141,346 903,195 Solid Waste - - 1,637,615 1,624,287 1,637,615 1,624,287 EMS - - 3,632,838 3,678,060 3,632,838 3,678,060 Campgrounds - - 372,802 158,873 372,802 158,873 Operating Grants & Contributions 4,592,228 2,234,631 21,165 4,613,393 2,234,631 Capital Grants & Contributions 9,486,962 7,135,395 - - 9,486,962 7,135,395 Total Program Revenues 16,220,536 10,273,221 5,664,420 5,461,220 21,884,956 15,734,441 General Revenues: Property taxes 4,870,465 4,816,865 - - 4,870,465 4,816,865 Sales taxes 4,825,042 3,573,505 - - 4,825,042 3,573,505 Franchise taxes 87,206 83,195 - - 87,206 83,195 Intangible taxes - - - - Hotel/motel taxes 272,556 195,462 - - 272,556 195,462 Alcoholic beverage taxes 228,042 220,425 - - 228,042 220,425 Financial institution tax - - - - Real estate transfer tax - - - - Energy Excise Tax 234,952 184,636 - - 234,952 184,636 Timber tax 46,923 27,918 - - 46,923 27,918 Insurance premium tax - - 1,107,214 - 1,107,214 - Interest income 11,529 18,463 326 6,776,690 11,855 6,795,153 Payments in lieu of taxes 40,945 40,370 - - 40,945 40,370 Licences and permits 269,344 226,334 1,758 - 271,102 226,334 Motor Vehicle tax 86,926 103,406 - - 86,926 103,406 Miscellaneous taxes 450,383 438,124 - - 450,383 438,124 Total General Revenues 11,424,313 9,928,703 1,109,298 6,776,690 12,533,611 16,705,393 Total Revenue 27,644,849 20,201,924 6,773,718 12,237,910 34,418,567 32,439,834 Expenses: General government 6,161,941 4,196,152 - - 6,161,941 4,196,152 Public Safety 5,044,646 8,664,553 - - 5,044,646 8,664,553 Public Works 3,797,564 3,216,561 - - 3,797,564 3,216,561 Health & welfare 387,263 343,360 - - 387,263 343,360 Solid Waste - - 1,612,793 1,598,030 1,612,793 1,598,030 EMS - - 6,493,162 5,188,001 6,493,162 5,188,001 Campgrounds - - 176,205 73,264 176,205 73,264 Economic Development 225,555 1,589,969 - - 225,555 1,589,969 Culture & recreation 860,949 832,248 - - 860,949 832,248 Judicial 1,235,777 526,359 - - 1,235,777 526,359 Water - - - - - - Total Expenses 17,713,695 19,369,202 8,282,160 6,859,295 25,995,855 26,228,497 Transfers Out (4,438) (623,433) 4,438 623,433 - - Change in Assets 9,926,716 239,289 (1,504,004) 6,002,048 8,422,712 6,211,337 Ending net position 62,586,504 52,659,788 3,499,659 6,877,223 66,086,163 59,537,011 Totals Business-Type Activities Governmental Activities ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 12 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 13 Business-type activities Business-type activities for Raysville and Big Hart Campgrounds reflected higher expenses and revenues for 2021, due to Big Hart Campground being opened for the entire year. Raysville Campground increased rates from $28 to $30 per night which increased revenues. Also, Raysville had an increase in the number of rentals for 2021. The solid waste system incurred a profit of $24,822 for the year. The illustration below compares the revenues and expenses for 2021 and 2020. BUSINESS-TYPE ACTIVITIES 2021 Emergency Medical Services was added in 2020 as a new business-type activity. The total expenses were $6,493,162 and charges for services was $3,632,838. This fund received additional revenues in the amount of $1,130,463 for insurance premium tax, interest income and donations. . $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Revenue Expenses Raysville/Big Hart Campgrounds 2021 2020 $1,570,000 $1,580,000 $1,590,000 $1,600,000 $1,610,000 $1,620,000 $1,630,000 $1,640,000 $1,650,000 Revenue Expenses Solid Waste Operations 2021 2020 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 14 Financial Analysis of McDuffie County’s Funds As noted earlier, McDuffie County employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. In assessing McDuffie County’s financing requirements, unassigned fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year. The governmental fund types include the General Fund, Special Revenue Funds and Capital Projects Fund. The major funds are General Fund, SPLOST VI, SPLOST VII and TSPLOST. As of December 31, 2021, McDuffie County governmental funds, which include the major funds and various other funds, reported combined fund balances of $21,722,218. The General Fund is the chief operating fund of the County. On December 31, 2021, total fund balance was $9,565,820. The fund balance of McDuffie County has increased by $1,148,837 since 2020. Capital Project funds account for the construction of capital improvements with SPLOST VI and SPLOST VII being major funds. The SPLOST Capital Project Fund reflects funds collected from the 1% Special Local Option Sales Tax and expended for capital items that are in agreement with the resolution approved by the voters. Because projects often bridge several years and involve design, land acquisition, and construction phases, expenditures may vary widely from year to year. Costs expended yearly in capital projects funds are added to the County’s construction-in-progress until the project is complete, and then depreciated over the assets’ useful lives. . $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Revenue Expenses Emergency Medical Services 2020 2021 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 15 Transportation SPLOST is another major fund for the Government. This fund reflects revenues collected from the 1% Special Local Option Sales Tax that is designated for road construction and improvements. A Local Maintenance and Improvement Grant was awarded annually by the Georgia Department of Transportation. The Board of Commissioners submits a listing of recommendations along with the estimated costs to the State of Georgia. Once approved by the State, the grant is awarded, and funds are disbursed to the County. Any additional funds needed are funded through SPLOST and T-SPLOST known as the Transportation Special Purpose Local Option Sales Tax. Proprietary Funds Proprietary fund statements provide the same information as in the business-type activities column of the government-wide statements, but in greater detail, and on a fund basis for enterprise funds. Enterprise Funds – At December 31, 2021, total net position amounted to $3,499,659 for enterprise funds compared to $5,003,663 at December 31, 2020. The reason for this dramatic change is delineated below. Net position changes are a result of operations, other non-operating revenues and expenses, capital contributions and donated assets and grants. The solid waste transfer system had a profit of $24,822 for the year. The revenues increased by $13,328 and the expenditures increased by $14,763 for the year. Big Hart and Raysville Campgrounds had a profit $196,597 and Emergency Medical Services had a loss of $1,730,187. Net investment in capital assets decreased for Emergency Medical Services fund in the amount of $1,363,213 contributing to the decrease in net position. This decrease represents a change in the value of the net assets transferred in the prior fiscal year from the General Fund to the Emergency Medical Services fund. Capital Assets and Debt Administration Capital Assets McDuffie County has invested $42,853,188 in capital assets (net of accumulated depreciation). Approximately 99% of this investment is related to governmental activities and includes infrastructure, land, buildings and machinery and equipment. As always McDuffie County continues to increase capital assets each year to provide the best services to the citizens of McDuffie County. Capital assets are discussed in more detail in Note 7 of the financial statements. The Citizens of McDuffie County voted to pass the T-SPLOST and tax collections began in January 2013. These additional revenues were used for the resurfacing and paving of roads in the community along with joint projects with other Counties. In 2015, Georgia Department of Transportation approved the expansion of the western bypass. This award was in the amount of $16,987,900. This expansion will be near the new University Hospital McDuffie facility and connect to the other completed portion of the western bypass. This project will be paid from the T-SPLOST proceeds for joint projects with other Counties. During 2021, the County began receiving collections from SPLOST VII, which is the new six-year SPLOST the voters approved in 2020. These funds will assist with many capital assets needed in the community. Capital assets held by the County at the end of the fiscal year are summarized as follows: ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 16 McDuffie County Capital Assets (net of accumulated depreciation) Governmental Activities Business-Type Activities Totals 2021 2020 2021 2020 2021 2020 Land $3,588,475 $3,588,475 $319,649 $319,649 $3,908,124 $3,908,124 Buildings 39,227,541 38,737,089 2,696,561 2,643,329 41,924,102 41,380,418 Machinery & equipment 9,953,926 9,476,357 3,630,897 3,592,611 13,584,823 13,068,968 Infrastructure 50,417,678 48,826,728 50,417,678 48,826,728 Construction in progress 5,697,525 3,329,650 298,988 293,843 5,996,513 3,623,493 Total Assets 108,885,145 103,958,299 6,946,095 6,849,432 115,831,240 110,807,731 Accumulated Depreciation (66,031,957) (64,895,888) (4,066,945) (2,630,725) (70,098,902) (67,526,613) Net Capital Assets $42,853,188 $39,062,411 $2,879,150 $4,218,707 $45,732,338 $43,281,118 Listed below are some of the significant capital asset transactions which occurred in 2021:  Capital assets purchased during 2021 included five patrol vehicles totaling $188,253, court system and audio upgrades $41,209, time clock system $22,645, golf cart $14,940 and other capital assets totaling $22,308.  Building upgrades were made to the Human Services Building in the amount of $368,078, airport improvements of $55,755, fueling station $44,471 and other site improvements of $22,148.  Raysville and Big Hart Campgrounds had a vehicle purchase in the amount of $26,749, golf cart $13,618 and other equipment totaling $6,819.  Local maintenance and Improvement Grant funded a portion of road resurfacing in the amount of $433,577.  T-SPLOST funded a portion of road resurfacing in the amount of $1,157,372. SPLOST VI and SPLOST VII funded wireless system and network upgrades of $256,274; road equipment $277,861 and a vehicle for $27,839 in the recreation department. ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 17 Debt Service McDuffie County is a very fiscally conservative government. Debt agreements are used for capital outlay items. McDuffie County continues to have an excellent credit rating with Dunn & Bradstreet and should have no conflicts that would affect the financing of any planned facilities or services. The County entered into a general obligation bond in the amount of $17,655,000 during 2008 to build a new government complex building. Interest and principal payments of $1,847,300 were paid from SPLOST VI collections towards the general obligation bond. The final bond payment for this debt was paid in 2021. During 2016, The County entered into a bond agreement for $5,585,000 with bearing interest rates of 2 – 3% to refund $5,280,000 of the County’s bond which was issued during 2008. This refunding will save the County a present value of $236,386. Standard & Poor’s Rating Services has raised its rating on McDuffie County’s general obligation bond to AA- from The State of Georgia has established a limit on the amount of general obligation debt that a unit of government can issue. The law limits the debt to 10% of the total assessed value of taxable property located with the government’s jurisdiction. The legal debt margin for McDuffie County is approximately $65 million. The following table displays all debt owed by McDuffie County for the current and prior years. This entire amount is backed by full faith and credit of the government. This table presents accrued compensated absences which reflect the liability the county owes the employees for vacation time. Also, the table includes postclosure cost for the landfill. This liability represents the cost for routine water monitoring at the facility. The landfill was closed in 1995 and the county must maintain the landfill for thirty years. The net pension liability listed in the chart below represents the amount the County needs to fund future pension payments. This liability was calculated by the actuarial valuation as of December 31, 2021. Note 9 of the financial statements provide a summary of the long term liability transactions for the year ending 2021. McDuffie County Outstanding Debt Fiscal Years 2021 and 2020 Governmental Activities Business-Type Activities Totals Accrued compensated absences $448,667 $ 440,698 $15,788 $15,188 $ 464,455 $ 455,886 Net pension liability 991,470 1,303,872 991,470 1,303,872 Bonds payable 1,820,000 1,820,000 Postclosure costs 148,745 166,833 148,745 166,833 Total Debt $1,440,137 $ 3,564,570 $164,533 $182,021 $1,604,670 $ 3,746,591 ---PAGE BREAK--- MCDUFFIE COUNTY GOVERNMENT 18 Economic Factors and Rates McDuffie County Board of Commissioners continues to aggressively address the current and future needs of the County by focusing on sound financial management, the reserve policy, the use of current resources for capital expenditures and the development of capital improvements plans. With a growing population, the challenge is to continue to improve the quality of life by concentrating on the demands placed on other infrastructure such as providing residents in the County with water, sewer and many other quality services. McDuffie County continues to strive to seek new developers and industries within the community. During 2021, a new MedNow Urgent Care and a Barney Pharmacy was built near I-20. A local developer completed the Bordeaux Event Center, which is a wedding venue. This same developer began the Bordeaux Subdivision and several permits were issued to build townhomes in the rear of the property. Two new manufacturing companies remodeled existing buildings and started producing medical supplies and timber products. The Town of Dearing, which is located within McDuffie County, built a second variety store during 2021. This is a milestone for the Town of Dearing which has around six hundred residents. McDuffie County is making every effort to keep the unemployment rate low; however, the COVID-19 Pandemic has caused unemployment rates to peak. The unemployment rate as of December, 2021 was 5.2% compared to December, 2020 of 5.7%. Budget Highlights for the Fiscal Year Ending December 31, 2021  A decrease in the millage rate was used to balance the County budget for 2021.  Big Hart Campground was opened mid-year. The campground has been a tourist attraction for those wanting to enjoy the lake and outdoors with approximately 6,300 reservations made during 2021.  McDuffie County received American Rescue Plan Act Funds in the amount of $2,069,803. These funds have been allocated for a county-wide broadband project.  McDuffie County was awarded a Broadband Infrastructure Grant in the amount of $3,817,531. Request for Information This financial report is designed to provide a general overview of McDuffie County Government’s finances for anyone interested in our County’s finances. Questions concerning this report or any requests for additional information may be addressed to the McDuffie County Board of Commissioners, 210 Railroad Street, Thomson, GA 30824, and [PHONE REDACTED] or at our Website: www.thomson-mcduffie.gov. ---PAGE BREAK--- 19 BASIC FINANCIAL STATEMENTS ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF NET POSITION DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 20 Governmental Business-type Development Health Activities Activities Total Authority Department Assets Cash and cash equivalents 17,017,078 $ 627,889 $ 17,644,967 $ 1,476,554 $ 598,316 $ Investments 2,592,315 - 2,592,315 - - Receivables Taxes 650,862 - 650,862 - - Accounts 448,129 966,372 1,414,501 1,131,408 9,997 A/R-Dept. of Public Health - - - - 27,813 Intergovernmental 2,145,550 - 2,145,550 - - Due from other funds 825,008 - 825,008 - - Due from external parties 163,915 - 163,915 - - Inventory - 16,485 16,485 - - Capital assets not being depreciated: Construction in progress 5,697,525 298,988 5,996,513 - - Land 3,588,475 319,649 3,908,124 3,957,224 - Capital assets (net of accumulated depreciation) Buildings and improvements 23,997,954 1,669,357 25,667,311 1,704,121 - Furniture, fixtures, and equipment 2,269,603 591,156 2,860,759 9,516 18,786 Infrastructure 7,299,631 - 7,299,631 - - Total assets 66,696,045 4,489,896 71,185,941 8,278,823 654,912 Deferred Outflows of Resources Deferred outflows related to pension 928,473 - 928,473 - 118,842 Total deferred outflows of resources 928,473 - 928,473 - 118,842 Total assets and deferred outflows of resources 67,624,518 4,489,896 72,114,414 8,278,823 773,754 Liabilities Accounts payable 1,547,130 297,420 1,844,550 - 2,955 A/P-DPH - - - - 5,020 Accrued liabilities 111,352 51,772 163,124 - - Due to other funds 348,496 476,512 825,008 - - Noncurrent liabilities Due within one year Bond payable - - - - - Note payable - - - 64,471 - Due in more than one year Note payable - - - 309,637 - Bond payable - - - - - Closure and post closure costs payable - 148,745 148,745 - - Compensated absences payable 448,667 15,788 464,455 - 36,141 Net OPEB liability - - - - 66,735 Net Pension liabilities 991,470 - 991,470 - 471,569 Total liabilities 3,447,115 990,237 4,437,352 374,108 582,420 Deferred Inflows of Resources Deferred inflows related to pension 1,590,899 - 1,590,899 - 126,263 Total deferred inflows of resources 1,590,899 - 1,590,899 - 126,263 Total liabilities and deferred inflows of resources 5,038,014 990,237 6,028,251 374,108 708,683 Net Position Net investment in capital assets 42,853,188 2,879,150 45,732,338 5,361,224 18,786 Restricted for: Capital projects 7,306,542 - 7,306,542 - - Special revenues 1,362,742 - 1,362,742 - - Debt service 3,487,114 - 3,487,114 - - Unrestricted 7,576,918 620,509 8,197,427 2,543,491 46,285 Total net position 62,586,504 $ 3,499,659 $ 66,086,163 $ 7,904,715 $ 65,071 $ Primary Government Component Units ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 21 Operating Capital Charges for Grants and Grants and Governmental Business-type Development Health Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Authority Department Primary government: Governmental activities: General government 6,161,941 $ 797,147 $ 4,592,228 $ 9,486,962 $ 8,714,396 $ - $ 8,714,396 $ - $ - $ Public safety 5,044,646 - - - (5,044,646) - (5,044,646) - - Public works 3,797,564 - - - (3,797,564) - (3,797,564) - - Health and welfare 387,263 - - - (387,263) - (387,263) - - Culture and recreation 860,949 87,624 - - (773,325) - (773,325) - - Economic development 225,555 147,490 - - (78,065) - (78,065) - - Judicial 1,235,777 1,109,085 - - (126,692) - (126,692) - - Total governmental activities 17,713,695 2,141,346 4,592,228 9,486,962 (1,493,159) - (1,493,159) - - Business-type activities: Solid Waste 1,612,793 1,637,615 - - - 24,822 24,822 - - EMS 6,493,162 2,220,019 29,667 - - (4,243,476) (4,243,476) - - Big Hart & Raysville Campgrounds 176,205 372,802 - - - 196,597 196,597 - - Total business-type activities 8,282,160 4,230,436 29,667 - - (4,022,057) (4,022,057) - - Total primary government 25,995,855 $ 6,371,782 $ 4,621,895 $ 9,486,962 $ (1,493,159) (4,022,057) (5,515,216) - - Component units: Development Authority 199,917 $ 326,149 $ 24,614 $ - $ 150,846 - Health Department 522,618 111,134 671,572 - - 260,088 Total component units 722,535 $ 437,283 $ 696,186 $ - $ 150,846 260,088 General revenues: Property taxes 4,870,465 - 4,870,465 - - Sales taxes 4,825,042 - 4,825,042 - - Franchise taxes 87,206 - 87,206 - - Insurance premium tax - 1,669,803 1,669,803 - - Hotel/motel taxes 272,556 - 272,556 - - Motor vehicle tax 86,926 - 86,926 - - Alcoholic beverage taxes 228,042 - 228,042 - - Excise tax 234,952 - 234,952 - - Timber tax 46,923 - 46,923 - - Licences and permits 269,344 1,757 271,101 - - Miscellaneous taxes 450,383 - 450,383 - - Payments in lieu of taxes 40,945 - 40,945 - - Miscellaneous revenue - 841,729 841,729 - - Interest - unrestricted 11,529 326 11,855 1,453 51 Total general revenues 11,424,313 2,513,615 13,937,928 1,453 51 Asset transfers - - Transfers (4,438) 4,438 - - - Change in net position 9,926,716 (1,504,004) 8,422,712 152,299 260,139 Net position, beginning of year 52,659,788 5,003,663 57,663,451 7,752,416 (195,430) *Prior Period Adjustment - - - - 362 Net position, end of year 62,586,504 $ 3,499,659 $ 66,086,163 $ 7,904,715 $ 65,071 $ * Due to a required restatement of beginning net position as a result of new OPEB reporting standards Component Units Primary Government Net Revenue Expense) and Changes in Net Position Program Revenues ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA BALANCE SHEETS GOVERNMENTAL FUNDS DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 22 Other Total Governmental Governmental General SPLOST VI SPLOST VII TSPLOST Funds Funds Cash and cash equivalents 6,316,354 $ 3,571,432 $ 3,241,564 $ 289,863 $ 3,597,865 $ 17,017,078 $ Investments 2,592,315 - - - - 2,592,315 Receivables Property taxes, net allowance 288,901 - - - - 288,901 Sales tax 100 - 361,861 - - 361,961 Other 346,736 - - - 101,393 448,129 Due from other funds 708,518 - - - 116,490 825,008 Intergovernmental receivables - - - 2,057,335 88,215 2,145,550 Due from external parties 163,915 - - - - 163,915 Total assets 10,416,839 $ 3,571,432 $ 3,603,425 $ 2,347,198 $ 3,903,963 $ 23,842,857 $ Liabilities Accounts payable 523,969 $ 6,690 $ 112,157 $ 817,852 $ 86,462 $ 1,547,130 $ Accrued liabilities 96,899 - - - 14,453 111,352 Due to other funds 116,490 - 420 - 231,586 348,496 Total liabilities 737,358 6,690 112,577 817,852 332,501 2,006,978 Deferred inflows of resources Unavailable revenues - property taxes 113,661 - - - - 113,661 Total deferred inflows 113,661 - - - - 113,661 Fund Balances Restricted for: Capital projects - 3,564,742 - 1,529,346 2,212,454 7,306,542 Special revenues - - - - 1,362,742 1,362,742 Debt - - 3,490,848 - (3,734) 3,487,114 Unassigned 9,565,820 - - - - 9,565,820 Total fund balances 9,565,820 3,564,742 3,490,848 1,529,346 3,571,462 21,722,218 Total liabilities, deferred inflows of resources and fund balances 10,416,839 $ 3,571,432 $ 3,603,425 $ 2,347,198 $ 3,903,963 $ 23,842,857 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES ASSETS ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 23 Total fund balances - governmental funds 21,722,218 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. These assets consist of: Construction in process 5,697,525 Land 3,588,475 Infrastructure 50,417,678 Buildings and improvements 39,227,541 Furniture, fixtures, and equipment 9,953,926 Accumulated depreciation (66,031,957) Total capital assets 42,853,188 Some revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds. 113,661 The net pension liability is not due and payable in the current period and, therefore, it and the related deferred outflows of resources and deferred inflows of resources are not reported in the funds. (1,653,896) Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the funds General obligations - Compensated absences (448,667) Total long-term liabilities (448,667) Net position of governmental activities 62,586,504 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS DECEMBER 31, 2021 The notes to the financial statements are an integral part of this financial statement. 24 Other Total Governmental Governmental General SPLOST VI SPLOST VII TSPLOST Funds Funds REVENUES Taxes 9,732,008 $ - $ - $ 1,066,261 $ 272,864 $ 11,071,133 $ Licenses and permits 269,344 - - - - 269,344 Intergovernmental 1,226,152 - 3,944,412 5,542,550 3,366,076 14,079,190 Fines and forfeitures 989,698 - - - 119,387 1,109,085 Charges for services 763,990 - - - 33,157 797,147 Contributions and donations from private sources - - - - - - Rentals 87,624 - - - - 87,624 Telephone commissions 72,307 - - - - 72,307 Commissary - - - - - - Other revenue 54,337 - - - 93,153 147,490 Other financing sources - - - - - - Interest 5,448 3,732 1,177 979 193 11,529 Total revenues 13,200,908 3,732 3,945,589 6,609,790 3,884,830 27,644,849 EXPENDITURES Current expenditures: General government 1,205,180 3,107 171,718 3,848,302 254,645 5,482,952 Public safety 3,788,641 7,839 - - 737,120 4,533,600 Public works 1,241,184 - - 1,157,372 809,037 3,207,593 Health and welfare 292,454 - - 8,600 46,303 347,357 Culture and recreation 725,138 27,839 - - - 752,977 Judicial 1,223,681 - - - 12,096 1,235,777 Housing and development - - - - 225,555 225,555 Intergovernmental - - - - - - Lawn care - - - - - - Other 261,007 - - - 614 261,621 Capital outlay: General government 2,471,473 305,700 256,274 1,590,949 - 4,624,396 Public safety 253,892 - - - - 253,892 Judicial 41,209 - - - - 41,209 Health and welfare 2,945 - - - - 2,945 Culture and recreation 10,085 - - - - 10,085 Public works - - - - - Economic development 368,078 - - - - 368,078 Debt service: Principal - - - - 1,820,000 1,820,000 Interest - - - - 27,300 27,300 Total expenditures 11,884,967 344,485 427,992 6,605,223 3,932,670 23,195,337 Excess (deficiency) of revenues over expenditures 1,315,941 (340,753) 3,517,597 4,567 (47,840) 4,449,512 OTHER FINANCING SOURCES (USES) Transfer in 86,442 - - - 2,172,952 2,259,394 Transfer out (253,546) (1,890,743) (26,749) - (92,794) (2,263,832) Total other financing sources (uses) (167,104) (1,890,743) (26,749) - 2,080,158 (4,438) CHANGE IN FUND BALANCES 1,148,837 (2,231,496) 3,490,848 4,567 2,032,318 4,445,074 FUND BALANCES, BEGINNING OF YEAR 8,416,983 5,796,238 - 1,524,779 1,539,144 17,277,144 FUND BALANCES, END OF YEAR 9,565,820 $ 3,564,742 $ 3,490,848 $ 1,529,346 $ 3,571,462 $ 21,722,218 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA RECONCILIATION OF THE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 25 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - governmental funds 4,445,074 $ Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities, the costs of capital assets are allocated over their estimated useful lives as depreciation expense. For the current year, these amounts were: Capital outlay 5,300,605 Depreciation expense (2,829,680) Net change in capital assets 2,470,925 In the statement of activities, the gain or loss on disposal of capital assets is reported, whereas in the governmental funds, the proceeds from the sale of capital assets increase financial resources. Cost of capital assets (373,759) Accumulated depreciation 1,693,611 Net book value 1,319,852 Because some revenues will not be collected for several months after the County's fiscal year end, they are not considered "available" revenues and are deferred in the governmental funds. (74,476) The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, the repayment of the principal of long- term debt consume the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Net change in debt 1,820,000 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Changes in McDuffie's proportionate share of the net pension liability, deferred outflows of resources, and deferred inflows of resources for the current year are not reported in the governmental funds but are reported in the Statement of Activities (46,690) Compensated absences (7,969) (54,659) Change in net position of governmental activities 9,926,716 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 26 Big Hart & Raysville Solid Waste EMS Campgrounds Fund Total Current assets Cash 23,969 $ 345,535 $ 258,385 $ 627,889 $ Accounts receivable 888,590 - 77,782 966,372 Inventory 16,485 - - 16,485 Total current assets 929,044 345,535 336,167 1,610,746 Noncurrent assets Capital assets not being depreciated: Construction in progress - - 298,988 298,988 Land 6,758 - 312,891 319,649 Capital assets (net of accumulated depreciation) Buildings and improvements 1,603,421 - 65,936 1,669,357 Furniture, fixtures, and equipment 509,228 37,749 44,179 591,156 Total noncurrent assets 2,119,407 37,749 721,994 2,879,150 Total assets 3,048,451 $ 383,284 $ 1,058,161 $ 4,489,896 $ Liabilities Current liabilities Accounts payable 185,487 5,622 106,311 297,420 Due to other funds 458,434 1,967 16,111 476,512 Accrued liabilities 48,603 736 2,433 51,772 Total current liabilities 692,524 8,325 124,855 825,704 Noncurrent liabilities Compensated absences - 1,439 14,349 15,788 Closure and post closure costs payable - - 148,745 148,745 Total noncurrent liabilities - 1,439 163,094 164,533 Total liabilities 692,524 9,764 287,949 990,237 Net Position Net investment in capital assets 2,119,407 37,749 721,994 2,879,150 Restricted - - - - Unrestricted 236,520 335,771 48,218 620,509 Total net position 2,355,927 373,520 770,212 3,499,659 Total liabilties and net position 3,048,451 $ 383,284 $ 1,058,161 $ 4,489,896 $ Business-type Activities - Enterprise Funds ASSETS LIABILITIES AND NET POSITION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 27 Big Hart & Solid Raysville Waste EMS Campgrounds Fund Total OPERATING REVENUES Charges for services 2,220,019 $ 372,802 $ 1,637,615 $ 4,230,436 $ Total operating revenues 2,220,019 372,802 1,637,615 4,230,436 OPERATING EXPENSES Personnel services 3,549,193 46,221 264,526 3,859,940 Operations 1,484,129 120,547 1,329,029 2,933,705 Depreciation 1,459,840 9,437 19,238 1,488,515 Total operating expenses 6,493,162 176,205 1,612,793 8,282,160 Operating income (4,273,143) 196,597 24,822 (4,051,724) NON-OPERATING REVENUES (EXPENSES) Interest income - - 326 326 Insurance premium tax 1,669,803 - - 1,669,803 Grants 18,017 - - 18,017 License fees 1,757 - - 1,757 Ambulance reimbursement 15,482 - - 15,482 Insurance reimbursement 22,112 - - 22,112 Fire fees 804,135 - - 804,135 Contributions and donations from private sources 11,650 - - 11,650 Total non-operating revenues (expenses) 2,542,956 - 326 2,543,282 Income (loss) before capital contributions and transfers (1,730,187) 196,597 25,148 (1,508,442) Capital contributions - - - - Transfers in (out) 27,637 17,841 (41,040) 4,438 Change in net position (1,702,550) 214,438 (15,892) (1,504,004) NET POSITION, BEGINNING OF YEAR 4,058,477 159,082 786,104 5,003,663 NET POSITION, END OF YEAR 2,355,927 $ 373,520 $ 770,212 $ 3,499,659 $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENTS OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 28 Big Hart & Raysville Solid Waste EMS Campgrounds Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,314,944 372,802 1,559,833 3,247,579 Payments to suppliers (291,972) (115,856) (1,205,298) (1,613,126) Payment to employees (3,500,590) (46,221) (328,099) (3,874,910) Net cash provided (used) by operating activities (2,477,618) 210,725 26,436 (2,240,457) CASH INFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash received from property and other taxes 2,570,593 17,841 (40,714) 2,547,720 Net cash provided (used) by provided by noncapital financing activities 2,570,593 17,841 (40,714) 2,547,720 CASH INFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Construction of capital assets - - (5,145) (5,145) Net cash provided (used) by capital and related financing activities - - (5,145) (5,145) CASH OUTFLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (78,642) (47,186) - (125,828) Net cash provided (used) by capital and related financing activities (78,642) (47,186) - (125,828) NET CASH PROVIDED BY INVESTING ACTIVITIES - - - 1,158 Net increase (decrease) in cash 14,333 181,380 (19,423) 176,290 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 9,636 164,155 277,808 451,599 CASH AND CASH EQUIVALENTS, END OF YEAR 23,969 $ 345,535 $ 258,385 $ 627,889 $ Reconciliation of net operating income (loss) to net cash provided (used) by operating activities: Operating income (4,273,143) $ 196,597 $ 24,822 $ (4,051,724) $ Adjustments to reconcile net operating income (loss) to net cash provided by operating activities: Depreciation 1,441,855 9,437 19,238 1,470,530 Change in accounts receivable (162,795) 7,500 44,126 (111,169) Change in accounts payable 500,840 (3,185) 1,824 499,479 Change in accrued postclosure - - (18,088) (18,088) Change in accrued liabilities 4,370 376 (45,486) (40,740) Inventory 11,255 - - 11,255 Change in compensated absences - - - - Total adjustments 1,795,525 14,128 1,614 1,811,267 Net cash provided (used) by operating activities (2,477,618) $ 210,725 $ 26,436 $ (2,240,457) $ Business-type Activities - Enterprise Funds ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS DECEMBER 31, 2021 The notes to the financial statements are an integral part of this statement. 29 Custodial Funds ASSETS Cash and cash equivalents 1,036,974 $ Total assets 1,036,974 $ LIABILITIES Due to others 1,036,974 $ Total liabilities 1,036,974 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Introduction The financial statements of McDuffie County, Georgia (the County) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. As permitted by accounting principles generally accepted in the United States of America, the County has elected to apply only applicable Financial Accounting Standards Board (FASB) Statements and Interpretations issued on or before November 30, 1989, that do not contradict GASB pronouncements in its accounting and reporting practices for its government-wide and proprietary operations. The County’s more significant accounting policies are described in the following: B. The Financial Reporting Entity McDuffie County, Georgia, (the County), is located in the Central Savannah River Area of Georgia, west of Augusta, Georgia. It was created from Columbia and Warren counties in 1872, the one-hundred thirty-second county created in Georgia. The County was named for George McDuffie, who was born in Georgia, served as governor and senator from South Carolina, and was a notable orator throughout the South. The County operates under an elected Commission, appointed manager, form of government. The accompanying summary of the County’s more significant accounting policies is presented to assist the reader in interpreting the financial statements and other data in this report. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. These policies conform to accounting principles generally accepted in the United States of America as applicable to governmental units. A board of five elected County Commissioners (the Board) governs McDuffie County, Georgia. They appoint a County Manager who is the Chief Administrative Officer and is responsible for day to day operations and implementation of the policy decisions made by the Board. As required by generally accepted accounting principles, these financial statements present McDuffie County, Georgia, (the primary government) and its component units. The component units are included in the County’s reporting entity because of the significance of their operational or financial relationships with the County. C. Individual Component Unit Disclosures Development Authority of McDuffie County and the City of Thomson - The Authority was created for the purpose of promoting and developing trade, commerce, industry, and employment opportunities within the County. A Board of Directors appointed by the County Board of Commissioners governs the Authority. The Authority is funded and administered by the County. Separate financial statements have not been prepared for the Development Authority of McDuffie County and the City of Thomson. McDuffie County Health Department – The Health Department receives funding from McDuffie County. The McDuffie County Board of Commissioners appoints Board members. The McDuffie County Board of Health has a June 30, year-end, and the financial statements included herein are as of and for the year ended June 30, 2021. Separate financial statements have been issued, and are available from the McDuffie County Board of Health. The address is: McDuffie County Health Department, 300 Greenway Street, Thomson, GA 30824. Discretely presented component units are presented in separate columns on the government-wide statement of net position and statement of activities to emphasize legal separation from the County. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Certain County elected officials collect and disburse taxes, fees, fines, etc. Separate records of accountability are maintained for such transactions, which are recorded in the agency funds of the County. Receipts transferred from these funds to the County’s General Fund, and Special Revenue Funds are included as revenue in these funds. Operating costs for these officials are included as expenditures in the General Fund. These elected officials are: Tax Commissioner Probate Court Judge Magistrate Court Judge Clerk of Superior Court Sheriff D. Basic Financial Statements The basic financial statements consist of the following: Government-wide financial statements Fund financial statements Notes to the basic financial statements Government-wide statements – The statement of net position and the statement of activities report information on all of the nonfiduciary activities of the primary government and its component units. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the County and for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with the program or function of the County’s governmental activities. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include fees and charges paid by the recipients of goods or services offered by the programs and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund financial statements – The fund financial statements provide information about the County’s funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented, although the latter is excluded from the government-wide financial statements. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. E. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements and the fiduciary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The County considers all revenues available if they are collected within sixty days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Sales taxes collected and held by the state at year end on behalf of the County are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the County and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The accounts of the County are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with financial related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. The County reports the following major governmental funds: General Fund – The General Fund is the general operating fund of the County. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, state grants, and various other taxes and licenses. The primary expenditures are for general administration, public safety, highways and streets, health and welfare, and culture and recreation. TSPLOST Fund- The TSPLOST Fund is used to account for the construction of transportation related projects funded by TSPLOST. SPLOST VI Fund - The SPLOST VI Fund is used to account for proceeds from SPLOST VI. SPLOST VII Fund - The SPLOST VII Fund is used to account for proceeds from SPLOST VII. The County reports the following major enterprise funds: EMS Fund - EMS Fund is used to account for emergency medical services EMS was part of the General Fund in prior years. In fiscal year 2020, McDuffie County has decided to create a separate fund for EMS in order to properly account for its revenues and expenses. Big Hart & Raysville Campgrounds Fund– The Big Hart and Raysville Campgrounds Fund is used to account for the cost of operating and maintaining the campsites. Big Hart Campground is a new acquisition for McDuffie County in fiscal year 2020. Solid Waste Fund – The Solid Waste Fund is used to account for the cost of operating and maintaining the landfill facility. Additionally, the County reports the following fund types: Fiduciary Funds – Fiduciary Funds are custodial in nature and do not involve the measurement of operating results. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. These funds account for assets held by the County in an agency capacity for individuals and other government units. Fiduciary funds include all trust funds which account for assets held by the County as a trustee for individuals or other government units. The accounting used for fiduciary funds is accrual basis, much like that used for proprietary funds. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The County has adopted GASB Statement No. 20, Accounting and Financial Reporting of Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting and has elected to follow GAAP prescribed by GASB and all Financial Accounting Standard Board (FASB) standards issued prior to November 30, 1989. Subsequent to this date, the County accounts for its proprietary funds as presented by GASB. Proprietary funds are accounted for using the accrual basis of accounting and distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues are charges to customers for sales and services. Operating expenses for enterprise funds include costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as they are needed. F. Budgets and Budgetary Accounting Annual appropriated budgets are adopted by the Board of Commissioners for the General, Debt Services and Special Revenue Funds on a total revenues and total expenditures basis. The following are the statutory procedures followed by the Board in establishing a budget: 1. Prior to July 20, the County Manager receives budget requests from County Departments for the fiscal year commencing January 1. 2. Prior to the first Wednesday in August, the County Manager presents the proposed budget to the Board of Commissioners. 3. The Board of Commissioners holds public hearings. 4. Prior to October 20, the Board of Commissioners formally adopts the budget for the fiscal year commencing January 1. 5. The legal level of budgetary control is the departmental level. 6. All appropriations lapse at year end. 7. The operating budgets originally adopted may be revised or amended throughout the year as presented below: a. The County Manager may authorize transfers (revisions) within the departments, except for substantive salary amendments. b. The Board approves transfers (amendments) between departments or between funds. c. Increases or decreases in the total fund appropriation are by authority of the Board. d. Increases or decreases within any department are by authority of the Board. e. Appropriation of fund balances in excess of established reserve requirements are by authority of the Board. The County’s legally adopted budget is on the cash basis. The County adopted fiscal year 2021 budgets for the General Fund, Debt Services and Special Revenue Funds. A reconciliation of cash basis to generally accepted accounting principles (GAAP) is included in the financial statements. A project-length balanced budget was adopted for each capital project fund. G. Encumbrance Accounting Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. At December 31, 2021, the County reported no reserve for encumbrances. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued H. Assets, Liabilities and Fund Equity Cash and Investments The County’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments that mature within three months of the date acquired. The County follows GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Nonparticipating interest-earning investment contracts (investments whose value is not affected by interest rates or other market changes), including savings accounts, certificates of deposit, repurchase agreements, money market investments (short-term, highly liquid debt instruments including commercial paper, banker’s acceptances and U.S. Treasury and agency obligations) and participating interest-bearing investment contracts, that have a remaining maturity, at purchase, of one year or less are reported at cost or amortized cost assuming their fair value has not been impacted by changes in the credit worthiness of the issuer or similar factors. All other investments are reported at fair value (the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale). “Georgia Fund created by OCGA 36-83-8, is a stable net asset value investment pool which follows Standard and Poor’s criteria for AAA rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool’s primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a basis and determines participant’s shares sold and redeemed based on a $1.00 per share. The Office of the State Treasurer is the regulatory oversight agency for Georgia Fund 1. Receivables All receivables are reported at their net realizable value. Inventories Inventories are valued at cost using the first-in/first-out (FIFO) or specific identification methods. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded in the year of purchase in both government-wide and fund financial statements. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as interfund receivables and payables on the balance sheet of the fund financial statements and as “internal balances” on the statement of net position in the government-wide financial statements. New Accounting Pronouncements In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. This statement is effective for fiscal years ending after December 15, 2021. In June 2017, the GASB issued Statement No. 87, Leases. This statement establishes accounting and financial reporting standards focused on certain lease liabilities that currently are not reported. Comparability of financial statements among governments will be enhanced by requiring lessees and lessors to report leases under a single model. Decision-usefulness will also be enhanced by requiring notes to financial statements related to the timing, significance, and purpose of leasing arrangements. This Statement is effective for fiscal years beginning after December 15, 2020. Management is in the process of evaluating the impact of this pronouncement on its financial statements. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets roads, bridges and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial individual cost of more than $2,500 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Infrastructure acquired prior to June 30, 1980 is not reported. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest incurred during the construction phase of proprietary assets is included as part of the capitalized value of the assets constructed. All reported capital assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight-line method over the following useful lives: Years Buildings 25–50 Building improvements 20–25 Infrastructure 20–50 Furniture, fixtures and equipment 5–15 Vehicles 3–5 Specialized use equipment 2–10 Water system additions 15–40 Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County had outflow of resources related to net pension liability. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The County has only one type of item which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and resources related to net pension liability. Compensated Absences It is the County’s policy to permit employees to accumulate earned but unused leave benefits. Employees are allowed to accumulate a maximum of 320 hours’ vacation time; there are no limits on the accumulation of sick time. The County’s government-wide and proprietary funds include an accrual for the estimated compensation costs attributable to employee earned but unused leave benefits. Compensated absences are liquidated through the General Fund. Long-Term Obligations In the government-wide financial statements and proprietary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or proprietary funds statement of net position. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Fund Equity Fund equity at the government fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net position". Fund balance reported in the governmental funds financial statements generally represents the difference between current assets and current liabilities. Fund balance classifications represent a hierarchy based primarily on the extent to which the County is bound to honor constraints on specific purposes for which amounts in those funds can be spent. These classifications may consist of the following: a. Nonspendable - Fund balances are classified as nonspendable when amounts cannot be spent because they are either i) in nonspendable form or ii) they are legally contractually required to be maintained intact. The County includes items that are not expected to be converted to cash such as inventories and prepaid amounts. b. Restricted - Fund balances are reported as restricted when their use is restricted for specific purposes including i) constraints on funds externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or ii) constraints imposed by law through constitutional provisions or enabling legislation. c. Committed - Fund balances are reported as committed if their use is for a specific purpose as approved by formal action by the County Council (resolution). Amounts committed cannot be used for any other purpose unless Council removes or changes the specific use by approving such action through resolution at a Council meeting. Budget resolutions are considered a plan for specific use. d. Assigned - Fund balances are reported as assigned when constrained by the County's intent to use the funds for specific purposes that are neither restricted nor committed. Assigned fund balances include i) all remaining amounts (except negative balances) reported in governmental funds, other than the General fund, that are not classified as nonspendable, restricted or committed, and ii) amounts in the General Fund intended for a specific use identified by either the County Manager or Finance Director, and iii) amounts appropriated to eliminate a projected budget deficit in the subsequent year. e. Unassigned - Fund balances are reported as unassigned when the balances do not meet any of the above four criteria for classification. The County reports positive unassigned fund balance in only the General Fund. Negative unassigned fund balances may be reported in all governmental funds. For purposes of fund balance disbursement, unless otherwise approved by the County Council, the County will expend restricted fund balance when an expenditure is incurred for which both restricted and unrestricted fund balance is available. Next the County will expand committed fund balance when an expenditure is paid for which unrestricted fund balance is available. The County would next disburse fund balance assigned for purposes of the fund before disbursing other assigned fund balance amounts. In the General Fund, the County would disburse unassigned fund balance prior to disbursing fund balance assigned for financial policy reserve levels or amounts assigned to eliminate subsequent year's budget deficit. Net position is classified in three components in the government-wide financial statements. a. Invested in capital assets, net of related debt consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position consists of net position with constraints placed on the use either by external groups such as creditors, grantors, contributions, or laws or regulations of other governments; or law through constitutional provisions or enabling legislation. c. Unrestricted net position consists of all other net position that does not meet the definition of "restricted" or "invested in capital assets". ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued I. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues, expenses and expenditures during the reporting period. Actual results could differ from those estimates. J. Property Taxes Property taxes are an enforceable lien on property as of January 1 of the current tax year. Generally, taxes are levied in September and are due and payable on or before November 15. Since the tax digest, which is prepared by the McDuffie County Tax Appraiser, has to be approved by the Georgia Department of Revenue, the tax levy may be delayed later than September. In such cases, the taxes are due within 60 days after levy. The County bills and collects its property taxes. County property tax revenues are recognized when levied. An allowance is established for delinquent taxes to the extent that their collectability is improbable based on management's estimate of the amount to be collectible. Current year property taxes were levied September 15, 2021 and were due November 30, 2021. K. Local Option Sales Tax The County receives sixty-seven percent (67%) of a one percent local option sales tax on all retail sales within the County. The proceeds of this tax are used to reduce, on a dollar-for-dollar basis, the millage equivalent amount of property taxes to be levied in the subsequent year. Insurance premium taxes collected must also reduce the ensuing property tax levy. The County has established a fiscal policy to designate that portion of the General Fund’s fund balance, if available, for subsequent years’ expenditures. NOTE 2 – MCDUFFIE COUNTY/CITY OF THOMSON, GEORGIA WATER AND SEWER COMMISSION The City of Thomson, Georgia and McDuffie County, Georgia have established the McDuffie County/City of Thomson, Georgia, Water and Sewer Commission to operate, maintain and extend the water and sewerage system for the City/County area. The Commission assumed the ownership and operations of the City of Thomson Water and Sewer Enterprise Fund in 1988, in conjunction with funding for expansion with the one percent Special Purpose Local Option Sales Tax. The Commission has seven members, three each from the City and County, and the seventh appointed by the Commission. The Commission was established for a term of fifty years. The City and County are equally responsible for the ownership of and the future maintenance and improvements to the System. The System is a closed system whereby all funds derived from the operation of the System must be used for the purposes of operating, maintaining, improving, or expanding the System. Based on the standards established by Statement No. 14 of the Governmental Accounting Standards Board, the Commission is a legally separate governmental organization classified as a joint venture. A joint venture is a legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants in a separate and specific activity subject to joint control, in which the participants retain an ongoing financial interest or an ongoing financial responsibility. Generally, the purpose of a joint venture is to pool resources and share the costs, risks, and rewards of providing goods or services to the venture participants directly, or for the benefit of the general public or specific service recipients. 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. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 38 NOTE 2 – MCDUFFIE COUNTY/CITY OF THOMSON, GEORGIA WATER AND SEWER COMMISSION- Continued Each participating government of the Commission has final authority for establishing rules and water and sewer rates, fees, standards and any other policy matters as are appropriate for the efficient delivery of water and sewer services. As such, each participating government has an indirect financial responsibility for the System, as defined by GASB Statement No. 14. The City and County share certain responsibilities with respect to the Commission. The City is responsible for operations, maintenance and customer billing for the System. The County is responsible for administering construction funds obtained through the Special Purpose Local Option Sales Tax. The City and County jointly or individually administer grant and other funds, depending on the terms of such funding. The basic financial statements of the Commission are presented in a manner consistent with primary governments. Operating transfers to the Commission by the participating governments are accounted for as intergovernmental transfers. Federal and state grant funds transferred to the Commission by the participating governments are accounted for as sub-recipient grant funds. Financial information for the year ended December 31, 2021, is summarized as follows: Joint Ventures: Operating revenues 5,887,173 $ Depreciation and amortization expense 1,484,910 Operating income (loss) 727,593 Change in net position 594,578 Capital asset change 226,076 Net working capital 4,238,524 Total assets 40,575,472 Deferred outflows of resources 189,673 Long-term liabilities 8,490,252 Deferred inflows of resources 533,953 Total net position 30,656,674 $ These amounts are unaudited as a result of the Commission receiving a hardship extension under the COVID-19 regulations included in the governor’s executive order. The Commission has issued a separate financial report that may be obtained from: City of Thomson P. O. Box 1017 Thomson, Georgia 30824 NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Compliance with Bonds Payable As of December 31, 2021, the County is in compliance, in all material respects, with requirements under covenants relating to its bonds payable. Credit Risk – State statutes authorize the County to invest in obligations of the State of Georgia or other states; obligations issued by the U.S. government; obligations fully insured or guaranteed by the U.S. government or by a government agency of the United States; obligations of any corporation of the U.S. government; prime banker’s acceptances; the local government investment pool established by state law; repurchase agreements; and obligations of other political subdivisions of the State of Georgia. Custodial Credit Risk – Deposits – Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the County will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 39 NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY- Continued Custodial Credit Risk – Investments – Custodial credit risk for investments is the risk that, in the event of failure of the counterparty, the County will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. State statutes require all investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. NOTE 4 – CASH AND TEMPORARY INVESTMENTS As of December 31, 2021, the County had the following investments: Weighted Avg Credit Investments Maturities Fair Value Rating Primary Government: Various Certificates of Deposit 43 days 2,592,315 $ AAAm Total fair value 2,592,315 $ Interest Rate Risk – The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. NOTE 5 – TAXES RECEIVABLE The County's Tax Commissioner bills and collects property taxes, then remits to the County its respective share of property taxes. Current year property taxes were levied September 15, 2021 and were due November 30, 2021. Property taxes become a lien on the first day of the levy year. Unpaid property taxes received within 60 days of year end are recognized and recorded as revenue (considered measurable and available), and property taxes unpaid 60 days after year end are recorded as unearned revenue. A summary of the 2021 tax levy follows: General Fund 2021 millage rate - Incorporated 7.81 Unincorporated 7.81 Net property tax levy 4,824,873 $ Property tax receivable 4,549,855 $ Property Tax collected in 2021 (4,436,194) Property tax receivable, net allowance 113,661 $ Unearned property tax revenues 113,661 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 40 NOTE 6 – EXCISE TAX In accordance with the provisions of O.C.G.A. § 48-13-110 et seq., there is imposed within the territorial limits of the special district created pursuant to O.C.G.A. § 48-13-111, an excise tax on the sale, use, storage, or consumption of energy when such sale, use, storage, or consumption would have constituted a taxable event for purposes of sales and use tax under O.C.G.A. § 48-8-1 et seq. but for the exemption in O.C.G.A. § 48-8-3.2. Such excise tax shall be levied and collected by the governing authority of McDuffie County pursuant to O.C.G.A. 48-13-112 and 48-13-114 and as provided in this section. Energy tax revenue for the year ended December 31, 2021, was as follows: MCDUFFIE COUNTY BOARD OF COMMISSIONERS ENERGY EXCISE TAX 2021 AND 2020 MONTH COLLECTION CITY OF GEORGIA FERRELL JEFFERSON GAS 2021 RECEIVED MONTH THOMSON POWER GAS ENERGY SOUTH TOTAL TOTALS VARIANCE 1/31/2021 DECEMBER 1,512 $ 10,696 $ 150 $ 3,002 $ - $ 15,360 $ 15,647 $ (287) $ 2/28/2021 JANUARY 1,577 11,783 155 3,109 - 16,625 14,186 2,439 3/31/2021 FEBRUARY 1,607 12,461 165 3,202 140 17,575 15,133 2,442 4/30/2021 MARCH 1,666 11,998 146 3,279 94 17,183 12,820 4,363 5/31/2021 APRIL 1,386 10,745 137 3,726 92 16,085 14,187 1,898 6/30/2021 MAY 1,552 13,461 111 3,598 69 18,792 12,599 6,193 7/31/2021 JUNE 1,210 13,085 125 3,453 57 17,931 12,628 5,303 8/31/2021 JULY 1,569 16,337 129 3,474 64 21,574 15,633 5,941 9/30/2021 AUGUST 1,481 22,997 131 3,717 78 28,403 18,927 9,476 10/31/2021 SEPTEMBER 1,640 19,468 123 3,620 91 24,941 18,999 5,942 11/30/2021 OCTOBER 2,015 15,278 147 3,378 80 20,899 16,900 3,999 12/31/2021 NOVEMBER 2,418 17,263 165 3,496 124 23,466 17,264 6,202 YTD Totals 19,633 $ 175,571 $ 1,683 $ 41,054 $ 889 $ 238,835 $ 184,923 $ 53,912 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 41 NOTE 7 – CAPITAL ASSETS Governmental capital assets activity for the year ended December 31, 2021, was as follows: Balance Transfers/ Transfers/ Balance 1/1/2021 Additions Deletions 12/31/2021 Capital assets not being depreciated Construction in process 3,329,650 $ 2,367,875 $ - $ 5,697,525 $ Land 3,588,475 - - 3,588,475 Total capital assets not being depreciated 6,918,125 2,367,875 - 9,286,000 Capital assets being depreciated Infrastructure 48,826,728 1,590,950 - 50,417,678 Buildings and improvements 38,737,089 490,452 - 39,227,541 Furniture, fixtures, and equipment 9,476,357 851,328 (373,759) 9,953,926 Total capital assets being depreciated 97,040,174 2,932,730 (373,759) 99,599,145 Less accumulated depreciation: Infrastructure (41,811,289) (1,306,758) - (43,118,047) Buildings and improvements (14,271,244) (958,343) - (15,229,587) Furniture, fixtures, and equipment (8,813,355) (564,579) 1,693,611 (7,684,323) Less accumulated depreciation (64,895,888) (2,829,680) 1,693,611 (66,031,957) Net capital assets being depreciated 32,144,286 103,050 1,319,852 33,567,188 Governmental activities capital assets - net 39,062,411 $ 2,470,925 $ 1,319,852 $ 42,853,188 $ Depreciation expense was charged to functions as follows: General Government 678,989 $ Public Safety 511,046 Highways and Streets 1,491,767 Health and Welfare 39,906 Culture and Recreation 107,972 Totals 2,829,680 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 43 NOTE 7 – CAPITAL ASSETS - Continued Business-type capital assets activity for the year ended December 31, 2021, was as follows: Big Hart & Raysville Campgrounds: Balance Transfers/ Transfers/ Balance Big Hart & Raysville Campgrounds Fund 1/1/2021 Additions Deletions 12/31/2021 Capital assets not being depreciated Construction in process - $ - $ - $ - $ Land - - - - Total capital assets not being depreciated - - - - Capital assets being depreciated Buildings and improvements - - - - Furniture, fixtures, and equipment - 47,186 - 47,186 Total capital assets being depreciated - 47,186 - 47,186 Less accumulated depreciation: Buildings and improvements - - - - Furniture, fixtures, and equipment - (9,437) - (9,437) Less accumulated depreciation - (9,437) - (9,437) Net capital assets being depreciated - 37,749 - 37,749 Business-type activities capital assets - net - $ 37,749 $ - $ 37,749 $ Big Hart & Raysville Campgrounds are leased from the corps of engineer and do not have any capital assets. The County is just managing the properties. Said premises are hereby leased for a term of ten years, beginning March 20, 2020 and ending March 19, 2030. Solid Waste Fund: ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 43 Balance Transfers/ Transfers/ Balance Solid Waste fund 1/1/2021 Additions Deletions 12/31/2021 Capital assets not being depreciated Construction in process 293,843 $ 5,145 $ - $ 298,988 $ Land 312,891 - - 312,891 Total capital assets not being depreciated 606,734 5,145 - 611,879 Capital assets being depreciated Buildings and improvements 212,237 - - 212,237 Furniture, fixtures, and equipment 393,716 - (34,310) 359,406 Total capital assets being depreciated 605,953 - (34,310) 571,643 Less accumulated depreciation: Buildings and improvements (140,996) (5,305) - (146,301) Furniture, fixtures, and equipment (335,604) (13,933) 34,310 (315,227) Less accumulated depreciation (476,600) (19,238) 34,310 (461,528) Net capital assets being depreciated 129,353 (19,238) - 110,115 Business-type activities capital assets - net 736,087 $ (14,093) $ - $ 721,994 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 44 Balance Transfers/ Transfers/ Balance EMS Fund 1/1/2021 Additions Deletions 12/31/2020 Capital assets not being depreciated Construction in process - $ - $ - $ - $ Land 6,758 - - 6,758 Total capital assets not being depreciated 6,758 - - 6,758 Capital assets being depreciated Buildings and improvements 2,431,092 53,232 - 2,484,324 Furniture, fixtures, and equipment 3,198,895 43,395 (17,985) 3,224,305 Total capital assets being depreciated 5,629,987 96,627 (17,985) 5,708,629 Less accumulated depreciation: Buildings and improvements (832,421) (48,482) - (880,903) Furniture, fixtures, and equipment (1,321,704) (213,459) (1,179,914) (2,715,077) Less accumulated depreciation (2,154,125) (261,941) (1,179,914) (3,595,980) Net capital assets being depreciated 3,475,862 (165,314) (1,197,899) 2,112,649 Business-type activities capital assets - net 3,482,620 $ (165,314) $ (1,197,899) $ 2,119,407 $ Depreciation expense on capital assets of the Proprietary Funds was $290,616 for the year ended December 31, 2021. Capitalization of Interest Costs requires that interest expenditures incurred during construction of assets be capitalized. Capitalization of Interest Costs in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifts and Grants concludes that constructed assets financed with the proceeds of tax-exempt debt (if those funds are externally restricted to finance the acquisitions of the asset or used to service the related debt) should include capitalized interest only to the extent that interest costs exceed interest earned on related interest-bearing borrowing. There were no construction period interest costs capitalized in the Water and Sewer Fund during the year ended December 31, 2021. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 45 NOTE 7 – CAPITAL ASSETS – Continued Capital assets of the Discretely Presented Component Units consist of the following: Balance Transfers/ Transfers/ Balance Development Authority 1/1/2021 Additions Deletions 12/31/2021 Capital assets not being depreciated Land and land improvements 3,745,599 $ 211,625 $ - $ 3,957,224 $ Property, plant and equipment Buildings and improvements 2,444,760 - - 2,444,760 Equipment and furniture 57,001 - - 57,001 Total property, plant and equipment 2,501,761 - - 2,501,761 Less accumulated depreciation Buildings (657,318) (83,321) - (740,639) Equipment and furniture (46,631) (854) - (47,485) Total accumulated depreciation (703,949) (84,175) - (788,124) Net capital assets being depreciated 1,797,812 (84,175) - 1,713,637 Component unit capital assets - net 5,543,411 $ 127,450 $ - $ 5,670,861 $ Depreciation expense on capital assets of the Development Authority was $84,175 for the year ended December 31, 2021. NOTE 8 – NOTES RECEIVABLE At December 31, 2021, the Development Authority of McDuffie County and the City of Thomson (a discretely presented component unit) had the following notes receivable outstanding. The notes were collateralized by real estate. Note receivable bearing interest at 2.75%, due in installments of $1,697, including principal and interest, maturing in 2024. (Reliant Medical Note) - $ Note receivable bearing interest at 2.50%, due in installments of $5,656, including principal and interest, maturing in 2026. (Augusta Coatings Note) 303,697 Note receivable bearing interest at 2.50%, due in installments of $2,768, including principal and interest, maturing in 2025. (Two State Note) 95,900 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. (Two State Note) 142,988 Note receivable bearing interest at 2.250%, due in installments of $2,125, including principal and interest, maturing in 2027. (Thomson Plastics) 444,518 Note receivable bearing interest at 3.00%, due in installments of $1,209, including principal and interest, maturing in 2033. (Chardan Note) 144,305 1,131,408 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 46 NOTE 9 – LONG TERM DEBT The following is a summary of the long-term liability transactions for the year ended December 31, 2021: Balance Balance Due within 1/1/2021 Additions Deletions 12/31/2021 One Year Governmental Activities 2016 Bonds payable 1,820,000 $ - $ (1,820,000) $ - $ - $ Accrued compensated absences 440,698 7,969 - 448,667 - Total debt - governmental activities 2,260,698 $ 7,969 $ (1,820,000) $ 448,667 $ - $ Business-type Activities Accrued compensated absences Raysville Campground 1,013 $ 426 $ - $ 1,439 $ - $ Accrued compensated absences Solid Waste 14,175 174 - 14,349 - Accrued closure and postclosure costs 166,833 - (18,088) 148,745 - Total debt - business-type activities 182,021 $ 600 $ (18,088) $ 164,533 $ - $ Bonds Payable In August 2018, the County entered into a bond agreement for $5,585,000 bearing interest rates of 2.00% - 3.00% for the purpose to refund $5,280,000 of the County’s General Obligation Bonds, Series 2008 which has been fully paid off as of December 31, 2021. The following is a summary of the Discretely Presented Component Units’ long-term debt: Balance Balance Due within Health Department 7/1/2020 Additions Deletions 6/30/2021 One Year Accrued compensated absences 32,562 23,865 (20,286) 36,141 - Total debt 32,562 $ 23,865 $ (20,286) $ 36,141 $ - $ Balance Balance Due within Development Authority 1/1/2020 Additions Deletions 12/31/2020 One Year Note payable 181,586 $ 250,000 $ (57,478) $ 374,108 $ 64,471 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 47 NOTE 10 – RETIREMENT PLAN Defined Benefit Pension Plan The County sponsors the Association County Commissioners of Georgia Restated Pension Plan for McDuffie County Employees (The Plan), which is a defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries. The Plan, through execution of the adoption agreement, is affiliated with the Association County Commissioners of Georgia Third Restated Defined Benefit Plan (an agent multiple-employer pension plan, administered by GEB Corp. The ACCG, in its role as the Plan Sponsor, has the sole authority to amend the provisions of the ACCG Plan, as provided in Section 19.03 of the ACCG Plan document. The County has the authority to amend the adoption agreement, which defines the specific benefit provisions of The Plan, as provided in Section 19.02 of the ACCG Plan document. The Plan issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by writing Government Employees Benefits Corporation of Georgia, 400 Galleria Parkway, Suite 1250, Atlanta, Georgia 30339. All full-time County employees are eligible to participate in the Plan after completing three years of service with benefits vesting after five years of service. Participants become eligible to retire with unreduced benefits at the earlier of age 65 with 5 years of participation in the Plan, or by age 62 with 35 years of service. Upon eligibility to retire, participants are entitled to a benefit in the amount of 1% of average annual compensation up to $10,000 plus 1.5% of average annual compensation in excess of $10,000, plus $36 for each year of service up to 35 years, payable as a ten-year certain and life annuity. Average annual compensation is calculated based on the highest five-year period during the ten years prior to retirement or termination. The Plan also provides benefits in the event of death or disability. These benefit provisions were established by an adoption agreement executed by the County Board of Commissioners. Participant counts as of December 31, 2020, (the most recent actuarial valuation date) and covered compensation (based on covered earnings for the preceding year) are shown below: Retirees and beneficiaries receiving benefits 64 Terminated Plan participants entitled to, but not yet receiving benefits 78 Active employees participating in the Plan 117 Total number of Plan participants 259 Part-time active employees not participating in the plan 21 Covered compensation for active participants 4,768,705 $ Contributions The County is required to contribute an actuarially determined rate. The contribution amount is determined using actuarial methods and assumptions approved by the ACCG Plan trustees and must satisfy the minimum contribution requirement contained in the State of Georgia Statutes. Section 47-20 of the Georgia Code sets forth the funding standards for state and local governmental pension plans. Net Pension Liability The County’s net pension liability was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. This date was used due to the timing of the actuarial valuation reports. The actuarial valuation reports are available after the subsequent year end. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 48 NOTE 10 – RETIREMENT PLAN- Net Pension Liability -Continued The total pension liability as of December 31, 2021, valuation was determined by an actuarial valuation using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Future Salary Increases 3.00% per year with an age based scale Investment rate of return 7.00% per year Mortality rates were based on the RP-2000 Combined Mortality Table for Males and Females set back two years for males and set back three years for females. The actuarial assumptions used in the 2021 valuation were based on the results of an actuarial experience study for the period January 1, 1988 – January 1, 2020. The long-term expected rate of return on pension plan investments was determined using a lognormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Target Asset Class Allocation Fixed income: 30% 25% - 35% Equities: 70% 65% - 75% Domestic large equities 30% 25% - 35% Domestic mid equities 5% 2.5% - 10% Domestic small equities 5% 2.5% - 10% REIT 5% 2.5% - 10% International 15% 10% - 20% Multi cap 5% 2.5% - 10% Global allocation 5% 2.5% - 10% TOTAL 100% *Rates shown are net of the 3.0% assumed rate of inflation Range The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 49 NOTE 10 – RETIREMENT PLAN – Continued Change in the Net Pension Liability Pension Liability Fiduciary Net Position Net Pension Liability Balance at December 31, 2020 12,989,159 $ 11,685,287 $ 1,303,872 $ Changes for the year: Service cost 250,625 - 250,625 Interest 885,849 - 885,849 Liability experience (gain)/loss 644,418 644,418 Assumption change 20,437 20,437 Contribution-employer - 451,871 (451,871) Net investment income - 1,769,485 (1,769,485) Benefit payments (668,344) (668,344) - Administrative expense - (40,004) 40,004 Other changes - (67,621) 67,621 Net changes 1,132,985 1,445,387 (312,402) Balance at December 31, 2021 14,122,144 $ 13,130,674 $ 991,470 $ For the year ended December 31, 2021, the County recognized pension expense of $498,561. The required contribution for the year ended December 31, 2021 was $440,187. The following presents the County’s net pension liability calculated using the discount rate of 7.00%, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate: 1% Decrease Current Discount 1% Increase 6.00% Rate 7.00% 8.00% County's Pension Liability 2,656,062 $ 991,470 $ (405,368) $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the County recognized pension expense of $498,561. At December 31, 2021, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred outflows/inflows of resources related to pensions: Deferred Outflows of Deferred Inflows of Resources Resources Asset (Gain)/Loss 229,978 $ (1,590,899) $ Liability (Gain)/Loss 602,622 - (Gain)/Loss due to Assumpution Change 95,873 - Total 928,473 $ (1,590,899) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 50 NOTE 10 – RETIREMENT PLAN – Continued Amounts report as deferred outflows of resources and deferred inflows of resources related to pension will be amortized in pension expense as follows: 2022 (132,485) 2023 (132,485) 2024 (132,485) Thereafter (264,971) Deferred Outflows/(Inflows) Recognized in Future Years Other State of Georgia Pension Plans The Sheriff, Clerk of Superior Court, Probate Judge, Tax Commissioner, and various other employees of the County are covered by the State of Georgia retirement plans and are not included as a part of the County’s plan described above. These State Plans are funded, in part, through County fines and forfeiture collections. Information on the Sheriffs Retirement plan may be found at the following: Georgia Sheriffs Association Retirement Fund P.O. Box 1000 Stockbridge, GA 30281 Information on the Clerk of Superior Court Retirement plan may be found at the following: Superior Court Clerk’s Retirement Fund of Georgia 124 N. McDonough St., #3 Jonesboro, GA 30236 Information on the Probate Judge Retirement plan may be found at the following: Probate Retirement Fund of Georgia P.O. Box 56 Griffin, GA 30224 Information on the Tax Commissioners Retirement plan may be found at the following: Employee Retirement System Two Northside 75, Suite 300 Atlanta, GA 30318 Deferred Compensation Plans The County has adopted deferred compensation plans in accordance with Section 457 of the Internal Revenue Code. The plans allow any employee participant to voluntarily defer the lesser of 100% of the participant’s gross compensation or $15,000 per year. All administrative costs of the plans are deducted from the participants’ accounts. Benefit payments are payable upon termination of employment, unforeseeable emergency, retirement or death. The Custodial Account Agreement requires the County set aside assets and income from the plan in trust for the exclusive benefit of the participants and their beneficiaries. The County is in compliance with the agreement. Information about the GEBCorp Deferred Compensation plan may be found at the following: The Charles Schwab Trust 425 Market Street, 7th Floor San Francisco, CA 94105 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 51 NOTE 10 – RETIREMENT PLAN – Continued The County believes that it has no liability for losses under the plans but does have the duty of due care that would be required of an ordinary prudent investor. The investments are managed by the Plan Administrator in one of three investment options or a combination thereof. The available options include fixed annuity, variable annuity and universal life insurance. The participant makes the choice of investment option(s). At December 31, 2021, 19.4%, or 60, of the County’s 309 employees, were participants in the deferred compensation plans. The employees of the County contributed $103,550, respectively, to GEBCorp deferred compensation plan during the year ended December 31, 2021. GASB Statement No. 2, Financial Reporting of Deferred Compensation Plans Adopted under the provisions of Internal Revenue Code Section 457, established reporting requirements for IRC Section 457 plans. Based on the laws in effect at the time of its passage, that Statement required that all amounts deferred by the plan participants be reported as assets of the employer until made available to the participants or their beneficiaries. The laws governing these plans were changed to state that, as of August 20, 1996, new plans will not be considered eligible plans “unless all assets and income of the plan described in subsection are held in trust for the exclusive benefit of the participants and their beneficiaries”. In the case of an existing plan, a trust need not be established before January 1, 1999. Since the County amended its plan to comply with the requirements of subsection of Internal Revenue Code Section 457, it has adopted GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. NOTE 11 – RISK MANAGEMENT, LITIGATION, AND CONTINGENCIES Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the government is a member of a public entity risk pool currently operating as a common risk management and insurance program for member local governments. The County has joined other municipalities in the state as part of the Georgia Inter-Local Risk Management Agency Property and Liability Insurance Fund and the Association County Commissioners of Georgia Group Self-Insurance Workers’ Compensation Fund (ACCG-GSIWCF). As part of these risk pools, the Government is obligated to pay all contributions and assessments as prescribed by the pools, to cooperate with the pool’s agents and attorneys, to follow loss reduction procedures established by the funds, and to report as as possible, and in accordance with any coverage descriptions issued, all incidents which could result in the funds being required to pay any claim of loss. The County is also to allow the pool’s agents and attorneys to represent the County in investigation, settlement discussions and all levels of litigation arising out of any claim made against the County within the scope of loss protection furnished by the funds. The funds are to defend and protect members of the funds against liability or loss as prescribed in the member government contract and in accordance with the worker’s compensation law of Georgia. The funds are to pay all cost taxed against members in any legal proceeding defended by the members, all interest accruing after entry of judgment, and all expenses incurred for investigation, negotiation, or defense. Liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims. Liabilities include amounts that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. The liability for claims and judgments is reported as long-term debt because it is not expected that it will be liquidated from expendable available financial resources. As of December 31, 2021, the County had recorded no liability for claims. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 52 NOTE 11 – RISK MANAGEMENT, LITIGATION, AND CONTINGENCIES – CONTINUED The change in the balances of the workers’ compensation pool claims during fiscal year 2021 is as follows: 2021 Unpaid claims, beginning of fiscal year 764,627 $ Incurred claims 507,968 Claim payments (147,471) Unpaid claims, end of fiscal year 1,125,124 $ General, property, and vehicle liabilities are provided for by commercial insurance coverage. Insurance bonding in amounts proportionate to employee exposure provides surety coverage. The County is liable for the $1,000 deductible. The change in the property and liability claims during the year 2021 is as follows: 2021 Unpaid claims, beginning of fiscal year 652,294 $ Incurred claims 145,127 Claim payments (41,227) Unpaid claims, end of fiscal year 756,194 $ Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the Federal Government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures, which may be disallowed by the grantor, cannot be determined at this time although the County expects such amounts, if any, to be immaterial. The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the County’s management and counsel that resolution of these matters will not have a material effect on the financial condition of the County. NOTE 12 – INTERFUND TRANSACTIONS Due From/To Other Funds Interfund receivables and payables account for loans between funds for cash management purposes. Interfund receivables and payables as of December 31, 2021 were as follows: Non-major General Govt Raysville Solid Receivable Fund Fund Funds CDBG EMS SPLOST VII Campground Waste Total Hotel/Motel 74,054 $ - $ - $ - $ - $ - $ - $ 74,054 $ Non-major Govt Funds 42,436 - - - - - - 42,436 General Fund - 231,586 - 458,434 420 1,967 16,111 708,518 Total 116,490 $ 231,586 $ - $ 458,434 $ 420 $ 1,967 $ 16,111 $ 825,008 $ Payable Fund . ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 53 NOTE 13 – NET POSITION/FUND EQUITY Transfers To/From Other Funds Transfers between the General Fund and other governmental funds were primarily to support the operations of the funds Non-major Solid General Govt SPLOST Raysville Waste Total Transfers out Fund Funds VI Debt Service EMS Campground Landfill Transfers Out General Fund - $ 253,546 $ - $ - $ - $ - $ - $ 253,546 $ SPLOST VI - - - 1,831,711 59,032 - - 1,890,743 SPLOST VII - - - - - 26,749 - 26,749 Raysville Campground - 8,908 - - - - - 8,908 EMS - 31,395 - - - - - 31,395 Solid Waste - 46,185 - - - - - 46,185 CDBG - - - - - - - - Non-major Govt Funds 86,442 1,207 - - - - 5,145 92,794 Total- Transfers In 86,442 $ 341,241 $ - $ 1,831,711 $ 59,032 $ 26,749 $ 5,145 $ 2,350,320 $ Transfers in Reservations of net position/fund equity are created to either satisfy legal covenants that require a portion of the fund balance be segregated or identify the portion of the fund balance that is not appropriated for future expenditures. Specific reservations of the fund balance accounts are summarized as follow: Restricted for encumbrances – This reserve was created to represent encumbrances outstanding at the end of the year based on purchase orders and contracts signed by the County but not completed as of the close of the fiscal year. Restricted for designated purposes – This reserve represents the portion of net position that is legally restricted for specified purposes. Unrestricted – This represents the portion of net position that is not restricted and not designated for other purposes. The McDuffie County Health Department had a deficit in unrestricted net position totaling $46,285 as of June 30, 2021. The deficit will be funded through operations of the Department. NOTE 14 – SOLID WASTE FUND The County maintains a solid waste landfill facility, which was established as an enterprise fund as of January 1, 1993. The current landfill was closed during 1994, to avoid the thirty-year post-closure monitoring for leaks into the ground water and removal and treatment of leachate, as required by regulations issued by the U.S. Environmental Protection Agency. By closing the facility, the County is required to monitor the facility. The licensure process for a new landfill has been completed, and the permit has been extended until completion. The Solid Waste Fund is expected ultimately to be self-supporting. All revenues related to the collection and disposal of solid waste, and the expenses related to the operation are reported in this fund. Government Accounting Standards Board Statement No. 18 (GASB-18) was issued effective June 15, 1993, to establish accounting standards for reporting the liabilities associated with required closure and post-closure costs. The standard states that the total estimated current cost of closure and post-closure monitoring is to be recognized as a liability as the landfill’s usable area is consumed. The estimated total current cost includes: the cost of equipment expected to be installed and facilities expected to be constructed, the cost of the final earth cover to be applied when the landfill is full, and the estimated costs of monitoring and maintaining the landfill in the post closure period. The accrued closure and post-closure costs liability totaled $148,745* as of December 31, 2021. Costs for closure and post-closure care are based on engineering estimates and are subject to change based on various factors some of which include inflation, deflation, changes in technology, and changes in laws and regulations. These costs are to be funded by collection fees and by tonnage costs. Costs incurred during 2021 totaled $18,088. *Estimated to be $398,500 per Georgia EPD in 2021 ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 54 NOTE 15 –BIG HART AND RAYSVILLE CAMPGROUNDS FUND Raysville Campground is located on Georgia's Little River, section of Clarks Hill Lake, the largest U.S. Corps of Engineers lake east of the Mississippi River. The 70,000 acre lake and its 1,000+ miles of shoreline provide excellent boating, water skiing, swimming, fishing, and hiking. The campground is situated in a wooded area on the waterfront and consists of 55 family campsites, all with 50-amp electrical hookups. Amenities include restrooms, showers, a dump station, boat ramp and dock. Big Hart Campground is situated in a wooded area on the waterfront of Clarks Hill Lake. One group campsite and 31 family campsites are available, all with 50-amp electrical hookups. Amenities include flush and vault toilets, showers, drinking water, a dump station, playground, beach, boat ramp and dock. The Big Hart and Raysville Campgrounds Fund is expected ultimately to be self-supporting. All revenues related to the rental and the expenses related to the operation are reported in this fund. NOTE 16 – HOTEL/MOTEL LODGING TAX McDuffie County has levied a 5% lodging tax pursuant to O.C.G.A. 48-13-51. At least 40% of the tax is to be used for tourism related purposes. During 2021, approximately 60% of receipts were allocated for tourism. Transactions for the year ended December 31, 2021 were as follows: Balance as of December 31, 2020 79,901 $ Tax Collections during 2021 272,556 Reimbursement received during 2021 445 Disbursements for promotion of tourism (192,765) Transfer to General Fund (73,370) Balance as of December 31, 2021 86,767 $ NOTE 17 – JOINT VENTURE Under Georgia law, the County in conjunction with other cities and counties in the Central Savannah River Area, is a member of the Central Savannah River Area Regional Commission (RC) and is required to pay annual dues thereto. During its year ended December 31, 2019, the County paid $14,548 in such dues. Membership in the RC is required by the Official Code of Georgia Annotated (OCGA) Section 50-8-34, which provides for the organizational structure of the RC in Georgia. The RC board membership includes the chief elected official of each county and municipality of the area. OCGA 50-8-39.1 provides that the member governments are liable for any debts or obligations of the RC. Separate financial statements may be obtained from: Central Savannah River Area Regional Commission 3023 Riverwatch Parkway, Suite A Augusta, Georgia 30907-2018 NOTE 18 – RELATED PARTY TRANSACTIONS There were no material related party transactions during the year ended December 31, 2021. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 55 NOTE 19- Constitutional Officers and Firefighters Pension Plans The County’s Constitutional Officers and some of their staff and firefighters belong to one of six pension’s plans, listed below, established by the Georgia General Assembly for providing retirement benefits for these participants. These plans are cost sharing multiple employer defined benefit plans. Plan Website Employees Retirement System of Georgia - Tax Commissioner ers.ga.gov Judges of the Probate Courts Retirement Fund of Georgia pjrf.georgia.gov Sheriffs' Retirement Fund of Georgia georgiasheriffs.org Peace Officers' Annuity & Benefit Fund of Georgia poab.georgia.gov Georgia Firefighters' Pension Fund gfpf.org Georgia Judicial Retirement System ers.ga.gov Name of Pension Plan Pension liabilities and pension expense with all plans above combined and summarized as follows: McDuffie County's proportionate share of net pension liability - $ 1,146,444 Total 1,146,444 $ McDuffie recognized pension expense 498,561 $ McDuffie recognized revenue from State of Georgia support 498,561 $ State of Georgia's proportionate share of net pension liability associated with McDuffie County These plans are considered special funding situations; and 100% of the collective net pension liabilities are allocated to the State of Georgia. The County does not contribute to any of these plans. Pension plan descriptions, assumptions and related disclosures may be found in separately issued reports at June 30, 2020 for each of these plans and are available at the websites listed above. NOTE 20 - SUBSEQUENT EVENTS In preparing the financial statements, the County has evaluated events and transactions for potential recognition or disclosure through June 14, 2021. Management has not identified any items requiring recognition or disclosure. On March 11, 2020 the World Health Organization declared the coronavirus (COVID-19) outbreak a pandemic. The COVID-19 outbreak in the United States has resulted in a significant impact on the economy and the financial markets. If this pandemic continues for a sustained period of time, the county may experience significant decreases in its growth-oriented revenues (i.e. business licenses, building permits, hospitality taxes, etc.), charges for services (i.e. utility charges, recreation charges, etc.), and property tax revenues (i.e. business closures/failures, foreclosures, less vehicle purchases/taxes, etc.). ---PAGE BREAK--- 56 REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2021 57 Variance Original Final Over Budget Budget Actual (Under) REVENUES Taxes Property tax 4,412,376 $ 4,412,376 $ 4,483,150 $ 70,774 $ Property tax penalties 40,000 42,671 36,409 (6,262) Prior year property tax 448,685 643,085 626,853 (16,232) Local option sales tax 2,400,000 2,617,800 2,616,543 (1,257) LOST-TAVT - - - - TAVT 950,000 950,000 1,065,028 115,028 TAV - administration 35,000 35,000 24,529 (10,471) SPLOST - TAVT - - - - Alcohol beverage tax 200,000 200,000 228,042 28,042 Insurance premium tax - - - - Excise tax 175,000 175,000 238,832 63,832 Franchise tax 90,000 90,000 87,206 (2,794) Motor vehicle tax 104,925 104,925 72,921 (32,004) AAVT tax 16,000 16,000 15,150 (850) True up tax - - - - Mobile home tax 58,465 58,465 64,472 6,007 Mobile home tax penalties 11,000 11,000 10,820 (180) Timber tax 32,772 41,612 46,923 5,311 Light district 30,100 30,100 33,369 3,269 Railroad tax . 12,000 10,579 (1,421) Payments in lieu of tax 42,000 42,000 40,945 (1,055) Commissions 285,000 285,000 298,939 13,939 FIFA 20,000 20,000 23,407 3,407 Motor vehicle late fee tax 25,000 25,000 - (25,000) BK lic tax 42,000 42,000 34,766 (7,234) Equipment tax - - 117 117 Penalties and fines 25,000 25,000 14,006 (10,994) Total taxes 9,443,323 9,879,034 10,073,006 193,972 Licenses and permits Beer and wine licenses 8,500 8,500 4,525 (3,975) Alcohol licenses 22,000 22,000 10,200 (11,800) Business licenses 80,000 80,000 64,050 (15,950) Penalties and fines 6,500 6,500 39,387 32,887 Building permits and licenses 95,000 95,000 151,384 56,384 Total licenses and permits 212,000 212,000 269,546 57,546 Intergovernmental Reimbursements 1,128,287 1,166,484 1,079,084 (87,400) Government center - City of Thomson 114,400 114,400 114,148 (252) Home delivered meals 8,000 8,000 4,508 (3,492) Grants 43,000 43,000 37,650 (5,350) Tax assessor 4,700 4,700 3,861 (839) Total intergovernmental 1,298,387 1,336,584 1,239,251 (97,333) Charges for services Recreation fees 105,900 105,900 91,023 (14,877) Campground rentals - - - - Senior citizens fees 15,000 15,000 950 (14,050) Rent 146,128 182,318 173,949 (8,369) Animal shelter 6,500 6,500 9,317 2,817 Sheriff 354,550 354,550 346,583 (7,967) Sheriff administration 194,520 194,520 97,101 (97,419) Transportation - 13,640 13,638 Public works 5,050 162,225 162,579 354 EMS - - - - Vending machine - - 58 58 Fire fees - - - - Total charges for services 827,648 1,034,653 895,198 (139,455) Cash Basis ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2021 58 Variance Original Final Over Budget Budget Actual (Under) REVENUES - Continued Fines and forfeitures Superior court fines and fees 232,500 $ 232,500 $ 338,186 $ 105,686 $ Probate court fines and fees 630,000 630,000 573,621 (56,379) Magistrate court fines and fees 86,000 86,000 56,703 (29,297) Total fines and forfeitures 948,500 948,500 968,510 20,010 Other Flood control 1,800 1,800 932 (868) Interest 20,000 20,000 3,029 (16,971) Surplus sales 5,000 19,000 18,400 (600) Scrap 5,000 5,000 - (5,000) Election qual - - 7,412 7,412 Airport-GA 1,000 1,000 18,313 17,313 Bad check 100 100 - (100) Prior year - 290,000 - (290,000) Employee relations 9,000 9,000 4,845 (4,155) Scrap - - - - Miscellaneous 10,000 10,000 4,436 (5,564) Total other 51,900 355,900 57,367 (298,533) Total revenues 12,781,758 13,766,671 13,502,878 (263,793) EXPENDITURES General government Governing body 261,920 323,020 322,450 (570) County manager 296,580 314,528 314,491 (37) Elections office 237,596 260,514 252,114 (8,400) Administration 949,195 951,649 541,167 (410,482) Government center complex 114,400 117,600 117,021 (579) Finance 340,938 341,288 329,685 (11,603) Technical support 343,746 359,096 312,327 (46,769) Tax commissioner 377,431 380,452 344,500 (35,952) Tax assessor 364,178 364,178 296,075 (68,103) Board of equalization 5,321 5,321 3,555 (1,766) General government buildings 227,354 565,854 565,621 (233) Superior court 132,889 165,819 161,823 (3,996) Clerk of superior court 388,903 389,253 366,347 (22,906) District attorney 133,113 153,113 151,728 (1,385) Child support 6,000 6,000 3,912 (2,088) Magistrate court 165,647 165,647 163,832 (1,815) Probate court 222,236 222,586 218,303 (4,283) Juvenile court 134,351 134,351 114,187 (20,164) Public defender 88,596 88,596 83,806 (4,790) Planning and zoning 352,348 352,998 352,932 (66) Total general government 5,142,742 5,661,863 5,015,876 (645,987) ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (BUDGETARY BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2021 59 Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES - Continued Public safety Sheriff 4,519,719 $ 4,546,196 $ 4,051,279 $ (494,917) $ Sheriff administrative 194,520 194,520 129,366 (65,154) Fire - - - - Emergency management - - - - Inmate workforce 53,819 56,119 56,057 (62) Coroner 36,729 42,729 42,658 (71) Total public safety 4,804,787 4,839,564 4,279,360 (560,204) Highways and streets Vehicle and equipment maintenance - - - - Public works 1,240,882 1,398,057 1,196,551 (201,506) Total highways and streets 1,240,882 1,398,057 1,196,551 (201,506) Health and welfare Family and children services 42,010 42,010 32,545 (9,465) Health department 120,599 120,599 119,995 (604) Mental health 5,567 6,567 6,206 (361) Rural transportation - - - - Senior citizens 122,923 122,923 100,978 (21,945) Soil & waste conservation 500 500 350 (150) Home delivered meals 55,538 55,538 39,631 (15,907) Total health and welfare 347,137 348,137 299,705 (48,432) Culture and recreation Library 93,278 93,278 93,278 - Boys and Girls Club 5,500 8,250 8,183 (67) Rockhouse 6,840 10,940 10,895 (45) Recreation 770,439 770,439 634,683 (135,756) Main Street Gym 12,467 12,467 9,504 (2,963) Tourism - - - - Development Authority 68,041 68,041 67,441 (600) Total culture and recreation 956,565 963,415 823,984 (139,431) Other Cooperative extension service 122,239 122,239 122,158 (81) Airport 91,161 91,161 85,184 (5,977) Forestry 8,820 8,820 8,820 - Lawn care services - - - - Employee relations 9,000 9,000 8,289 (711) Recycling center 25,000 25,000 24,285 (715) Animal shelter 127,646 127,646 77,840 (49,806) Total other 383,866 383,866 326,576 (57,290) Total Expenditures 12,875,979 13,594,902 11,942,052 (1,652,850) Other financing sources Transfer in (out) 46,031 (171,769) 22,029 193,798 Net change in fund balance (48,190) $ - $ 1,582,855 $ 1,582,855 $ RECONCILIATION TO GAAP BASIS To record effect of changes in receivables and other assets and payables and other liabilities (434,018) FUND BALANCE, BEGINNING OF YEAR 8,416,983 FUND BALANCE, END OF YEAR 9,565,820 $ Cash Basis ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY- ACCG PENSION PLAN FOR MCDUFFIE COUNTY EMPLOYEES FOR THE YEAR ENDED DECEMBER 31, 2021 60 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Contractually Required Contribution N/A N/A N/A 422,092 $ 439,023 $ 435,778 $ 390,773 $ 296,675 $ 390,358 $ 440,187 $ Contribution in Relation to the Contractually Required Contribution N/A N/A N/A 422,092 439,023 435,778 390,773 296,675 390,358 440,187 Contributions Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-Employee Payroll N/A N/A N/A 4,008,169 $ 3,943,434 $ 3,706,447 $ 3,821,798 $ 3,916,301 $ 4,150,892 $ 4,768,705 $ Contribution as a Percentage of Covered- Employee Payroll N/A N/A N/A 10.5% 11.1% 11.8% 10.2% 7.6% 9.4% 9.2% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS- ACCG PENSION PLAN FOR MCDUFFIE COUNTY EMPLOYEES FOR THE YEAR ENDED DECEMBER 31, 2021 61 For the Year Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net pension liability N/A N/A N/A 1,111,156 $ 1,679,221 $ 1,808,471 $ 602,704 $ 2,036,823 $ 1,303,872 $ 991,470 $ Covered-employee payroll N/A N/A N/A 4,008,169 $ 3,810,081 $ 3,581,137 $ 3,821,798 $ 3,916,301 $ 4,150,892 $ 4,768,705 $ Net pension liability as a percentage of covered-employee payroll N/A N/A N/A 27.70% 44.10% 50.50% 15.80% 52.00% 31.40% 20.80% Plan fiduciary net position as a percentage of the total pension liability N/A N/A N/A 87.70% 82.50% 82.40% 94.10% 81.50% 90.00% 93.00% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FOR THE YEAR ENDED DECEMBER 31, 2021 (JUNE 30, 2021 MEASUREMENT DATE) 62 Employees Retirement System of Georgia - Tax Commissioner Georgia Judicial Retirement System Peace Officers' Annuity & Benefit Fund of Georgia Judges of the Probate Courts Retirement Fund of Georgia Sheriffs' Retirement Fund of Georgia Georgia Firefighters' Pension Fund McDuffie County's proportion of net pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% McDuffie County's proportionate share of net pension liability - $ - $ - $ - $ - $ - $ State of Georgia's proportionate share of net pension liability associated with McDuffie 634,108 (30,274) 5,274 (150,914) 495,121 193,129 Total 634,108 (30,274) 5,274 (150,914) 495,121 193,129 McDuffie County's covered-employee payroll 136,064 $ 81,267 $ 1,851,933 $ 65,713 $ 103,804 $ 1,831,430 $ McDuffie County's proportionate share of net pension liability as percentage of its covered-employee payroll Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Plan fiduciary net position as a percentage of the total pension liability 76.21% 106.64% 98.36% 130.37% 54.61% 80.82% ---PAGE BREAK--- 63 COMBINING AND INDIVIDUAL FUND STATEMENTS ---PAGE BREAK--- 64 MCDUFFIE COUNTY MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 GENERAL FUND The General Fund is used to account for resources traditionally associated with the County that are not required legally, or by sound financial management, to be accounted for in another fund. SPLOST VI SPLOST VI – The SPLOST VI Fund is used to account for proceeds from SPLOST VI. SPLOST VII SPLOST VII – The SPLOST VI Fund is used to account for proceeds from SPLOST VII. TSPLOST FUND TSPLOST Fund – The TSPLOST Fund is used to account for the construction of transportation related projects funded by TPLOST. ---PAGE BREAK--- 65 MCDUFFIE COUNTY NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Jail Fund – to account for fines charged by the County that are to be used for jail improvements. Drug Task Force Fund – to account for add-on fees received from fines to be used to assist with drug enforcement needs. Drug Court Fund – to account for add-on fees received from fines to be used to assist with drug treatment needs. Wireless Emergency Telephone System Fund – to account for collection of wireless 911 phone surcharges used for operation and maintenance of the 911-phone system. Landfill Surcharge Fund – to account for fees received from Solid Waste. Hotel/Motel Fund – to account for tax to be used for tourism-related purposes. Law Library Fund– to account for receipt of fee revenue generated to support the legal library for the McDuffie County court system. Juvenile Probation Fund – to account for fee revenue generated for juvenile probation. Emergency Telephone System Fund – is used to account for the collection of 911 phone surcharges used for operation and maintenance of the 911-telephone system. Drug Forfeiture Fund – to account for funds received as a result of property and cash seizures by the Sheriff’s Department. Transportation Fund – to account for fee revenue generated for transportation. Multiple Grant Fund – to account for funds received as a result of multiple grants. CDBG Fund- to account for the construction related to projects funded by the CDBG grant. Debt Service Fund- to account for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds American Rescue Plan- to account for the activities related projects funded by COVID grants. CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Special Purpose Local Option Sales Tax IV Fund – to account for property acquisition and construction of projects designated to be funded by revenue from local option sales tax collections for the years 2004 – 2008. Special Purpose Local Option Sales Tax V Fund – to account for property acquisition and construction of projects designated to be funded by revenue from local option sales tax collections for the years 2009-2013. Bond Fund – to account for the cost of the acquisition and furnishing of the City of Thomson/McDuffie County government center. ---PAGE BREAK--- 66 MCDUFFIE COUNTY NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 LMIG Fund – to account for the construction of transportation related projects funded by the LMIG grant. INTERNAL SERVICE FUND Lawn Care Services – to account for lawn care services rendered internally instead of outsourcing those services. Internal Shop- to allocate the shop costs to all departments. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2021 67 Wireless Total Hotel/ Emergency Emergency Lawn Nonmajor Law Juvenile Multiple Transportation Drug Task Motel Telephone Landfill Drug Telephone American Care Governmental Jail Library Probation Grant Grant Force Drug Court Tax System Surcharge Forfeiture System LMIG SPLOST IV SPLOST V Rescue Plan CDBG Bond Fund Debt Service Internal Shop Services Funds Assets Assets Cash 297,899 $ 26,202 $ 47,265 $ 4,253 $ - $ 345,258 $ 66,208 $ - $ 51,545 $ 89,290 $ 192,259 $ 158,168 $ 100 $ 111,839 $ 57,563 $ 2,069,903 $ 80,113 $ - $ - $ - $ - $ 3,597,865 $ Investments - - - - - - - - - - - - - - - - - - - - - - Due from other funds - - - 42,384 - - - 74,054 - - - - - - - - - - - 52 - 116,490 Other receivables - - - 5,566 - - - 17,568 - - - 78,259 - - - - - - - - - 101,393 Intergovernmental receivables 4,003 - - - 41,460 3,686 29,669 - - 9,397 - - - - - - - - - - - 88,215 Total Assets 301,902 $ 26,202 $ 47,265 $ 52,203 $ 41,460 $ 348,944 $ 95,877 $ 91,622 $ 51,545 $ 98,687 $ 192,259 $ 236,427 $ 100 $ 111,839 $ 57,563 $ 2,069,903 $ 80,113 $ - $ - $ 52 $ - $ 3,903,963 $ Liabilities and Fund Balances Liabilities Accounts payable 2,127 $ - $ - $ 1,307 $ 11,472 $ 100 $ 9,126 $ 4,040 $ 100 $ 812 $ - $ 29,348 $ 100 $ 341 $ 18,548 $ 100 $ 300 $ - $ - $ 5,590 $ 3,051 $ 86,462 $ Accrued liabilities - - - - 3,852 - - 816 - - - 6,778 - - - - - - - 2,324 683 14,453 Unearned revenue - - - - - - - - - - - - - - - - - - - - - - Due to other funds - - - 22,472 30,391 - - - - - - - - - - - 178,723 - - - - 231,586 Total Liabilities 2,127 - - 23,779 45,715 100 9,126 4,856 100 812 - 36,126 100 341 18,548 100 179,023 - - 7,914 3,734 332,501 Fund balances Capital Projects - - - - - - - - - - - - - 111,498 39,015 2,069,803 - - - (7,862) - 2,212,454 Special Revenues 299,775 26,202 47,265 28,424 (4,255) 348,844 86,751 86,766 51,445 97,875 192,259 200,301 - - - - (98,910) - - - - 1,362,742 Debt Service - - - - - - - - - - - - - - - - - - - - (3,734) (3,734) Total Fund Balances 299,775 26,202 47,265 28,424 (4,255) 348,844 86,751 86,766 51,445 97,875 192,259 200,301 - 111,498 39,015 2,069,803 (98,910) - - (7,862) (3,734) 3,571,462 Total Liabilities and Fund Balances 301,902 $ 26,202 $ 47,265 $ 52,203 $ 41,460 $ 348,944 $ 95,877 $ 91,622 $ 51,545 $ 98,687 $ 192,259 $ 236,427 $ 100 $ 111,839 $ 57,563 $ 2,069,903 $ 80,113 $ - $ - $ 52 $ - $ 3,903,963 $ Special Revenue Funds Capital Projects Funds Internal Service Fund ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 68 Wireless Total Hotel/ Emergency Emergency Lawn Nonmajor Law Juvenile Multiple Transportation Drug Task Motel Telephone Landfill Drug Telephone American Care Governmental Jail Library Probation Grant Grant Force Drug Court Tax System Surcharge Forfeiture System LMIG SPLOST IV SPLOST V Rescue Plan CDBG Bond Fund Debt Service Internal Shop Services Funds Revenues Fees for services - $ - $ 50 $ - $ 14,608 $ - $ 18,499 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 33,157 $ Fines and forfeitures 72,061 20,959 - - - 26,367 - - - - - - - - - - - - - - - 119,387 Intergovernmental - - - 29,691 239,174 - 119,171 - - - 6,288 468,372 433,577 - - 2,069,803 - - - - - 3,366,076 Interest income - 12 - - - - - - - - 10 - - 105 54 - - - 12 - - 193 Other - - - - - - - 445 - - - 92,708 - - - - - - - - - 93,153 Taxes - - - - - - - 272,556 - - - 308 - - - - - - - - - 272,864 Total Revenues 72,061 20,971 50 29,691 253,782 26,367 137,670 273,001 - - 6,298 561,388 433,577 105 54 2,069,803 - - 12 - - 3,884,830 Expenditures Current Intergovernmental - - - - - - - - - - - - - - - - - - - - - - General government - - - - - - - - - - - - - - - - - - - 195,509 59,136 254,645 Public safety 26,733 - - - - - 115,308 - - - - 595,079 - - - - - - - - - 737,120 Public works - - - 29,287 314,767 - - - - - - - 433,577 - - - 31,406 - - - - 809,037 Culture and recreation - - - - - - - - - - - - - - - - - - - - - - Other - - - - - - - - - - - - - 341 273 - - - - - - 614 Health and welfare - - - - - 3,033 - - - - 43,270 - - - - - - - - - - 46,303 Economic development - - - - - - - 192,765 - - - - - 11,484 21,306 - - - - - - 225,555 Judicial - 12,096 - - - - - - - - - - - - - - - - - - - 12,096 Capital outlay - - General government - - - - - - - - - - - - - - - - - - - - - - Public works - - - - - - - - - - - - - - - - - - - - Public safety - - - - - - - - - - - - - - - - - - - - - - Health and welfare - - - - - - - - - - - - - - - - - - - - - - Culture and recreation - - - - - - - - - - - - - - - - - - - - - - Economic development - - - - - - - - - - - - - - - - - - - - - - Debt Service: - Principal - - - - - - - - - - - - - - - - - - 1,820,000 - - 1,820,000 Interest - - - - - - - - - - - - - - - - - - 27,300 - - 27,300 Total Expenditures 26,733 12,096 - 29,287 314,767 3,033 115,308 192,765 - - 43,270 595,079 433,577 11,825 21,579 - 31,406 - 1,847,300 195,509 59,136 3,932,670 Excess (deficiency) of revenues over expenditures 45,328 8,875 50 404 (60,985) 23,334 22,362 80,236 - - (36,972) (33,691) - (11,720) (21,525) 2,069,803 (31,406) - (1,847,288) (195,509) (59,136) (47,840) - Transfers in - - - - 59,785 - - - - 32,903 1,006 - - - - - - - 1,831,711 187,647 59,900 2,172,952 Transfers out - - - - - - (13,072) (73,370) - (5,145) - - - - - - - - - - (1,207) (92,794) Net Change 45,328 8,875 50 404 (1,200) 23,334 9,290 6,866 - 27,758 (35,966) (33,691) - (11,720) (21,525) 2,069,803 (31,406) - (15,577) (7,862) (443) 2,032,318 FUND BALANCES, BEGINNING OF YEAR 254,447 17,327 47,215 28,020 (3,055) 325,510 77,461 79,900 51,445 70,117 228,225 233,992 - 123,218 60,540 - (67,504) - 15,577 - (3,291) 1,539,144 FUND BALANCES, END OF YEAR 299,775 $ 26,202 $ 47,265 $ 28,424 $ (4,255) $ 348,844 $ 86,751 $ 86,766 $ 51,445 $ 97,875 $ 192,259 $ 200,301 $ - $ 111,498 $ 39,015 $ 2,069,803 $ (98,910) $ - $ - $ (7,862) $ (3,734) $ 3,571,462 $ Special Revenue Funds Capital Projects Funds Internal Service Fund ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL JAIL FUND FOR THE YEAR ENDED DECEMBER 31, 2021 69 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 46,400 $ 46,400 $ 7,179 $ (39,221) $ Prior year 6,100 6,100 - (6,100) Total Revenues 52,500 52,500 7,179 (45,321) Expenditures Public safety 47,500 47,500 25,402 (22,098) Capital outlay 5,000 5,000 - (5,000) Total Expenditures 52,500 52,500 25,402 (27,098) Net Change in Fund Balance - $ - $ (18,223) (18,223) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 63,551 Fund Balance, beginning of year 254,447 Fund Balance, end of year 299,775 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LAW LIBRARY FUND FOR THE YEAR ENDED DECEMBER 31, 2021 70 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 11,700 $ 11,700 $ 20,959 $ 9,259 $ Interest income 10 10 11 1 Other - - - - Prior year 3,582 3,582 - (3,582) Total Revenues 15,292 15,292 20,970 5,678 Expenditures General government 15,292 5,292 13,216 7,924 Total Expenditures 15,292 5,292 13,216 7,924 Net Change in Fund Balance - $ 10,000 $ 7,754 (2,246) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 1,121 Fund Balance, beginning of year 17,327 Fund Balance, end of year 26,202 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL JUVENILE PROBATION FUND FOR THE YEAR ENDED DECEMBER 31, 2021 71 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 1,000 $ 1,000 $ 50 $ (950) $ Total Revenues 1,000 1,000 50 (950) Expenditures Public safety 1,000 1,000 - (1,000) Total Expenditures 1,000 1,000 - (1,000) Net Change in Fund Balance - $ - $ 50 50 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 47,215 Fund Balance, end of year 47,265 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG TASK FORCE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 72 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 17,000 $ 17,000 $ 23,131 $ 6,131 $ Total Revenues 17,000 17,000 23,131 6,131 Expenditures Capital outlay - - - - Public safety 17,000 17,000 3,033 (13,967) Total Expenditures 17,000 17,000 3,033 (13,967) Other Financing Sources Transfers - - - - Net Change in Fund Balance - $ - $ 20,098 20,098 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 3,236 Fund Balance, beginning of year 325,510 Fund Balance, end of year 348,844 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL HOTEL/MOTEL TAX FUND FOR THE YEAR ENDED DECEMBER 31, 2021 73 Variance Original Final Over Budget Budget Actual (Under) Revenues Taxes 275,000 $ 275,000 $ 269,120 $ (5,880) $ Other 600 600 445 (155) Prior year 30,504 30,504 - (30,504) Total Revenues 306,104 306,104 269,565 (36,539) Expenditures General government 232,734 232,734 200,780 (31,954) Total Expenditures 232,734 232,734 200,780 (31,954) Other Financing Sources Transfers (73,370) (73,370) (73,370) - Net Change in Fund Balance - $ - $ (4,585) (4,585) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 11,451 Fund Balance, beginning of year 79,900 Fund Balance, end of year 86,766 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL EMERGENCY TELEPHONE SYSTEM FUND FOR THE YEAR ENDED DECEMBER 31, 2021 74 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 422,500 $ 422,500 $ 453,618 $ 31,118 $ Intergovernmental 351,922 351,922 104,357 (247,565) Total Revenues 774,422 774,422 557,975 (216,447) Expenditures Public safety 774,422 774,422 591,085 (183,337) Total Expenditures 774,422 774,422 591,085 (183,337) Other Financing Sources Transfers from General Fund (300,000) (300,000) - 300,000 Net Change in Fund Balance (300,000) $ (300,000) $ (33,110) (33,110) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (581) Fund Balance, beginning of year 233,992 Fund Balance, end of year 200,301 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LANDFILL SURCHARGE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 75 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 32,173 $ 3,273 $ 31,984 $ (189) $ Prior year - - - - Total Revenues 32,173 3,273 31,984 (189) Expenditures Other 16,000 16,000 - (16,000) Capital outlay 16,173 16,173 4,397 (11,776) Total Expenditures 32,173 32,173 4,397 (27,776) Other Financing Sources Transfers 75,000 75,000 26,260 (48,740) Net Change in Fund Balance 75,000 46,100 53,847 (21,153) Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (26,089) Fund Balance, beginning of year 70,117 Fund Balance, end of year 97,875 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL WIRELESS EMERGENCY TELEPHONE SYSTEM FUND FOR THE YEAR ENDED DECEMBER 31, 2021 76 Variance Original Final Over Budget Budget Actual (Under) Revenues Prior year 22,840 $ 22,840 $ - $ (22,840) $ Total Revenues 22,840 22,840 - (22,840) Expenditures Public Safety 22,840 22,840 - (22,840) Total Expenditures 22,840 22,840 - (22,840) Net Change in Fund Balance - $ - $ - - $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 51,445 Fund Balance, end of year 51,445 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG FORFEITURE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 77 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal 5,000 $ 5,000 $ 6,288 $ 1,288 $ State 5,000 5,000 1,006 (3,994) Interest 2 2 10 8 Prior year 32,198 33,298 - (33,298) Total Revenues 42,200 43,300 7,304 (35,996) Expenditures Public safety 42,200 43,300 43,271 (29) Total Expenditures 42,200 43,300 43,271 (29) Net Change in Fund Balance - $ - $ (35,967) (35,967) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year 228,225 Fund Balance, end of year 192,258 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LMIG FUND FOR THE YEAR ENDED DECEMBER 31, 2021 78 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 525,500 $ 525,500 $ 433,577 $ (91,923) $ Total Revenues 525,500 525,500 433,577 (91,923) Expenditures Public works 525,500 525,500 448,347 (77,153) Total Expenditures 525,500 525,500 448,347 (77,153) Net Change in Fund Balance - $ - $ (14,770) (14,770) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities 14,770 Fund Balance, beginning of year - Fund Balance, end of year - $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DRUG COURT FOR THE YEAR ENDED DECEMBER 31, 2021 79 Variance Original Final Over Budget Budget Actual (Under) Revenues Fines and forfeitures 155,274 $ 155,274 $ 170,001 $ 14,727 $ Other - - - - Prior year - - - - Total Revenues 155,274 155,274 170,001 14,727 Expenditures Capital outlay - - - - Public safety 163,193 163,193 115,450 (47,743) Total Expenditures 163,193 163,193 115,450 (47,743) Other Financing Sources Transfers 7,919 7,919 (13,072) (20,991) Net Change in Fund Balance - $ - $ 41,479 41,479 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (32,189) Fund Balance, beginning of year 77,461 Fund Balance, end of year 86,751 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL TRANSPORTATION FUND FOR THE YEAR ENDED DECEMBER 31, 2021 80 Variance Original Final Over Budget Budget Actual (Under) Revenues Fees for services 130,600 $ 130,600 $ 118,034 $ (12,566) $ Intergovernmental 109,775 109,775 125,044 15,269 Total Revenues 240,375 240,375 243,078 2,703 Expenditures Health and welfare 308,842 308,842 302,143 (6,699) Total Expenditures 308,842 308,842 302,143 (6,699) Other Financing Sources Transfers from General Fund 68,467 50,367 59,785 9,418 Net Change in Fund Balance - $ (18,100) $ 720 9,402 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (1,920) Fund Balance, beginning of year (3,055) Fund Balance, end of year (4,255) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL MULTIPLE GRANT FUND FOR THE YEAR ENDED DECEMBER 31, 2021 81 Variance Original Final Over Budget Budget Actual (Under) Revenues Grant revenues 46,950 $ 46,950 $ 25,579 $ (21,371) $ Total Revenues 46,950 46,950 25,579 (21,371) Expenditures Capital outlay - - - - Grant expenditures 46,950 46,950 23,720 (23,230) Total Expenditures 46,950 46,950 23,720 (23,230) Net Change in Fund Balance - $ - $ 1,859 1,859 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (1,455) Fund Balance, beginning of year 28,020 Fund Balance, end of year 28,424 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL AMERICAN RESCUE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 82 Variance Original Final Over Budget Budget Actual (Under) Revenues Federal - $ 2,069,803 $ 2,069,803 $ - $ Interest - - - - - - - - Total Revenues - 2,069,803 2,069,803 - Expenditures Health and welfare - 2,069,803 - (2,069,803) Total Expenditures - 2,069,803 - (2,069,803) Net Change in Fund Balance - $ - $ 2,069,803 2,069,803 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year - Fund Balance, end of year 2,069,803 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL CDBG FUND FOR THE YEAR ENDED DECEMBER 31, 2021 83 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental 1,000,000 $ 1,000,000 $ - $ (1,000,000) $ Total Revenues 1,000,000 1,000,000 - (1,000,000) Expenditures Capital outlay 1,000,000 1,000,000 31,406 (968,594) Total Expenditures 1,000,000 1,000,000 31,406 (968,594) Net Change in Fund Balance - $ - $ (31,406) (31,406) $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities - Fund Balance, beginning of year (67,504) Fund Balance, end of year (98,910) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 84 Variance Original Final Over Budget Budget Actual (Under) Revenues Interest - $ - $ 12 $ 12 $ Prior year - - - - Total Revenues - - 12 12 Expenditures General government 1,847,300 1,847,300 1,847,300 - Total Expenditures 1,847,300 1,847,300 1,847,300 - Other Financing Sources Transfers 1,847,300 1,847,300 1,831,711 (15,589) Net Change in Fund Balance - $ - $ (15,577) (15,577) $ Fund Balance, beginning of year 15,577 Fund Balance, end of year - $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL LAWN CARE FUND FOR THE YEAR ENDED DECEMBER 31, 2021 85 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental - - - - Total Revenues - - - - Expenditures General Government 89,071 89,071 59,900 (29,171) Total Expenditures 89,071 89,071 59,900 (29,171) Other Financing Sources Transfers 89,071 89,071 59,900 (29,171) Net Change in Fund Balance - $ - $ - - $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (3,734) Fund Balance, beginning of year - Fund Balance, end of year (3,734) $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (BUDGETARY BASIS) AND ACTUAL INTERNAL SHOP FUND FOR THE YEAR ENDED DECEMBER 31, 2021 86 Variance Original Final Over Budget Budget Actual (Under) Revenues Intergovernmental - - - - Total Revenues - - - - Expenditures General Government 221,696 221,696 187,595 (34,101) Total Expenditures 221,696 221,696 187,595 (34,101) Other Financing Sources Transfers 221,696 221,696 187,647 (34,049) Net Change in Fund Balance - $ - $ 52 52 $ Reconciliation to GAAP Basis To record effect of changes in receivables and other assets and payables and other liabilities (7,914) Fund Balance, beginning of year - Fund Balance, end of year (7,862) $ ---PAGE BREAK--- 87 FIDUCIARY FUNDS Custodial funds are used to account for assets that are held by the government as the agent for individuals, private organizations, other governments and/or other funds. Clerk of Court – to account for the receipt and disbursement of court ordered fines and fees made on behalf of third parties. Probate Court – to account for the receipt and disbursement of funds held on behalf of others and fees for services provided under State law. Sheriff – to account for the receipt and disbursement of fees and services provided under State law. Tax Commissioner - to account for tax billings, collections, and remittances held by the Tax Commissioner on behalf of other governmental agencies. Magistrate’s Court – to account for the receipt and disbursement of bonds and court ordered fines and fees made on behalf of third parties. ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING BALANCE SHEET FIDUCIARY FUNDS DECEMBER 31, 2021 88 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Assets Cash 441,793 $ 66,110 $ 51,409 $ 457,593 $ 20,069 $ 1,036,974 $ Total Assets 441,793 $ 66,110 $ 51,409 $ 457,593 $ 20,069 $ 1,036,974 $ Liabilities Due to General Fund 39,018 $ 32,457 $ - $ 87,771 $ 4,670 $ 163,916 $ Due to others 402,775 33,653 51,409 369,822 15,399 873,058 Total Liabilities 441,793 $ 66,110 $ 51,409 $ 457,593 $ 20,069 $ 1,036,974 $ Custodial Funds Assets Liabilities ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2021 89 Clerk of Probate Tax Magistrate Court Court Sheriff Commissioner Court Total Cash Balance at beginning of year 398,551 $ 52,536 $ 36,541 $ 317,053 $ 25,480 $ 830,161 $ Additions 806,742 1,052,318 515,758 24,679,636 172,787 27,227,241 Deletions 763,500 1,038,744 500,875 24,539,096 178,198 27,020,413 Balance at end of year 441,793 66,110 51,424 457,593 20,069 1,036,989 Total Assets 441,793 $ 66,110 $ 51,424 $ 457,593 $ 20,069 $ 1,036,989 $ Due to others Balance at beginning of year 398,551 $ 52,536 $ 36,541 $ 317,053 $ 25,480 $ 830,161 $ Additions 806,742 1,052,318 515,758 24,679,636 172,787 27,227,241 Deletions 763,500 1,038,744 500,875 24,539,096 178,198 27,020,413 Balance at end of year 441,793 66,110 51,424 457,593 20,069 1,036,989 Total Liabilities 441,793 $ 66,110 $ 51,424 $ 457,593 $ 20,069 $ 1,036,989 $ Custodial Funds Assets Liabilities ---PAGE BREAK--- 90 This page left blank intentionally. ---PAGE BREAK--- 91 SUPPLEMENTARY INFORMATION ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2004-2008 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 92 Project: SPLOST IV McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Percentage Estimated Revised Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously City of Thomson Ladder truck 517,000 517,000 517,000 - 517,000 100% Breathing appartus 65,000 64,242 64,242 - 64,242 100% T/E Project 260,000 260,000 259,212 259,212 100% Big Creek 2,515,000 3,370,550 3,370,550 3,370,550 100% Scada 175,000 143,273 143,273 143,273 100% Other city water/sewer projects 721,000 130,032 213,469 213,469 164% Development Authority Economic Development 1,900,000 1,710,250 1,369,504 11,484 1,380,988 81% Thomson Company 500,000 689,750 932,966 932,966 135% McDuffie County Boys & Girls Club 117,909 116,894 - 116,894 99% Water and Sewer 2,906,998 768,145 633,380 633,380 82% Airport 8,240 10,443 10,443 127% Road Construction and Improvements 2,721,482 2,795,178 2,748,493 2,748,493 98% Recreation 2,500,000 2,453,644 2,512,123 2,512,123 102% Technology 50,000 - - - Land 25,621 25,709 25,709 100% Public Safety Pumpers 243,992 34,440 - - 0% Fire Station #1 1,044,114 1,086,477 1,179,433 - 1,179,433 109% Fire Station #6 - - - - Brush trucks - 61,340 61,340 - 61,340 100% Rescue Truck 61,340 - - - Information Technology 50,000 - - - Gear 520 47,810 59,938 59,938 125% Government Complex 1,600,000 2,514,038 2,524,871 2,524,871 100% Government Complex 100,000 101,552 97,255 - 97,255 96% Senior Citizens Center Senior Citizens Center 23,397 23,685 23,685 101% Department Family & Children Improvements 3,999 3,999 3,999 100% Advertising Costs 1,560 341 1,901 McDuffie County Hospital Ambulances 270,000 234,630 234,630 234,630 100% Cardiac monitor 41,928 41,928 41,928 100% Hospital Expansion 1,000,000 1,000,000 1,000,000 1,000,000 100% Town of Dearing Fire Station 25,000 25,000 25,000 100% Gym Renovations 78,331 78,331 78,331 100% Totals 19,201,446 $ 18,306,776 $ 18,249,228 $ 11,825 $ 18,261,053 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2009-2014 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 93 Project: SPLOST V McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously City of Thomson City Street Resurfacing 700,000 630,000 624,385 624,385 99% City Fire Engine 300,000 283,997 283,997 283,997 100% City Station #2 improvements 100,000 50,000 - - 0% Skate Park 300,000 198,554 198,554 198,554 100% Walking Track 25,000 23,523 23,523 23,523 100% Water/Sewer Water Line Replacement 120,000 98,918 98,917 98,917 100% Sewer Plant Improvement 1,000,000 1,000,468 1,022,409 1,022,409 102% Usry Pond Improvement 750,000 - - - 0% Augusta Road Plant Project 1,250,000 255,481 224,739 224,739 88% Raising Usry Pond Dam 690,000 - - - 0% Big Creek 34,590 34,590 34,590 100% De-watering Project 988,276 988,278 988,278 100% Development Authority Land Development 250,000 75,000 108,792 21,305 130,097 173% Land Acquisition 250,000 75,000 - - 0% Thomson Company Redevelopment 250,000 150,000 126,430 126,430 84% Infrastructure 150,000 240,000 293,917 293,917 122% Information Technology 50,000 50,000 68,174 68,174 136% Landscaping/Signage 50,000 10,000 - - 0% McDuffie County Government Center Complex Government Center 11,510,428 12,229,377 10,189,507 10,189,507 83% Roads & Streets County Road Resurfacing 1,800,000 1,620,000 1,608,562 1,608,562 99% Airport Runway Overlay 200,000 160,000 169,269 169,269 106% Recreation Restrooms @ Sweetwater Park Football 75,000 71,712 71,712 71,712 100% Bleachers for Gym @ Sweetwater Park 57,000 42,594 42,594 42,594 100% Outdoor Bleachers Cover for Shade 75,000 - 0% Walking Track Improvements @ Sweetwater 60,000 14,709 14,709 14,709 100% Recreation other 690,000 150,673 167,927 167,927 111% Land Acquisition for City Parks 108,000 91,081 91,200 91,200 100% Information Technology New Computer Applications & Improvements 500,000 500,000 500,000 500,000 100% Public Safety EMS, 2 Ambulances 225,000 225,000 225,000 225,000 100% County Fire Engine 300,000 291,621 291,621 291,621 100% County Brush Truck 100,000 105,452 100,673 100,673 95% County Fire Service Truck 150,000 59,809 64,588 64,588 108% County Station #4 150,000 176,622 176,788 176,788 100% Advertising Costs 1,580 273 1,853 Banking fees 50 50 McDuffie County Hospital New Inpatient Unit (Partial for Debt Service) 3,000,000 500,000 500,000 500,000 100% Town of Dearing City Hall Playground Area & 78,816 78,816 78,816 100% Bill Eubanks Improvement 150,000 5,913 5,913 5,913 100% Totals 25,385,428 $ 20,487,186 $ 18,397,214 $ 21,578 $ 18,418,792 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2015-2020 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 94 Project: SPLOST VI McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously CITY OF THOMSON City HVAC, Lighting, Plumbing 96,000 96,000 0% City shop improvements 150,000 150,000 0% City fire protection equipment 400,000 400,000 0% Capital Equipment - City 140,000 140,000 0% Grant Match for storm water improvements 75,000 75,000 0% City Street Improvements/Equipment 715,040 715,040 248,906 - 248,906 35% Fire station facilities improvements 350,000 350,000 3,683 - 3,683 1% Water/Sewer Capital Equipment, Water and Sewer Distribution 80,000 80,000 29,850 21,675 51,525 64% Sewer Main Improvements and Grant Match 250,000 250,000 248,779 248,779 100% Vacuum Truck for clearing 150,000 150,000 125,142 - 125,142 83% Sewer plant improvements - 0% Sludge Dewatering 750,000 750,000 - 0% Headworks Improvements 350,000 350,000 - 0% Generator 75,000 75,000 - 0% DEVELOPMENT AUTHORITY Industrial Capital Improvements 500,000 500,000 0% Rock House Improvements 450,000 450,000 12,032 2,700 14,732 3% 0% MCDUFFIE COUNTY 0% Airport Airport Infrastructure improvements and grant match 150,000 150,000 152,695 (104,618) 48,077 32% Energy Efficiency Imporvement Projects County HVAC, Lighting, Plumbing 204,000 204,000 64,200 35,800 100,000 49% Government Center Complex Government Center Debt 11,556,151 11,556,151 7,461,924 1,831,711 9,293,635 80% Information Technology SCADA Upgrades 75,000 75,000 1,147 73,853 75,000 100% Computer applications and improvements 100,000 100,000 173,853 1,147 175,000 175% County Maintenance Shop County shop improvements 160,000 160,000 0% Public Safety Law enforcement center improvements 1,900,000 1,900,000 1,900,000 1,900,000 100% Fire stations 100,000 100,000 100,000 100,000 100% County Fire Protection equipment 800,000 800,000 386,860 66,871 453,731 57% Ambulances 250,000 250,000 210,454 210,454 84% Animal Shelter 40,000 40,000 0% Air Compressor 45,000 45,000 0% Recreation Recreation Facilities 400,000 400,000 412,660 412,660 103% Recreation Equipment 215,000 215,000 44,073 27,839 71,912 33% Roads/Streets Capital Equipment - County 300,000 300,000 0% County Road Improvements/Equipment 1,781,960 1,781,960 428,802 277,861 706,663 40% Solid Waste Current station replacement 100,000 100,000 0% Inert landfill improvements 200,000 200,000 0% TOWN OF DEARING Dearing fire equipment 15,000 15,000 0% Dearing recreation 77,000 77,000 0% Advertising Costs 1,721 390 2,111 TOTALS 23,000,151 $ 23,000,151 $ 12,006,781 $ 2,235,229 $ 14,242,010 $ ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX 2021-2026 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 95 Project: SPLOST VII McDuffie County/City of Thomson, Georgia Town of Dearing, Georgia Street and Capital Outlay Projects Estimated Original Revised Percentage Estimated Estimated Prior Current of Purpose (in funding sequence) Cost Cost Years Year Total Completion Funded simultaneously Airport Projects Infrastructure Improvement and Grant Match 396,916.00 $ 396,916.00 $ - $ - $ - $ 0% Improvements to Hangar 100,000 100,000 - - - 0% Broadband Broadband Phase I 1,900,000 1,900,000 - 0% Wireless Infrastructure 2,800,000 2,800,000 - 32,507 32,507 1% 0% Community Development 0% Rock House 500,000 500,000 - 0% Archway Initiatives 625,000 625,000 - - - 0% Landscaping 125,000 125,000 - - - 0% RSVP Initiatives 125,000 125,000 - - - 0% Animal Shelter 150,000 150,000 - - - 0% Roof at Chamber Office 30,000 30,000 - 24,887 24,887 83% Campground Improvements 350,000 350,000 - 26,749 26,749 8% Economic Development Site Improvements/Expansion 2,501,499 2,501,499 - - - 0% Information Technology Backup System 70,000 70,000 - - - 0% Phone System 80,000 80,000 - 58,212 58,212 73% Security Appliances 25,000 25,000 - 27,901 27,901 112% Network Upgrades 200,000 200,000 - 199,534 199,534 100% Wireless System Upgrades 30,000 30,000 - 29,573 29,573 99% Public Safety Facility Improvements & Expansion 1,500,000 1,500,000 - 0% Fire Apparatus 2,125,000 2,125,000 - 0% Ambulances 725,000 725,000 - 0% Public Works Equipment City & County Shared Equipment 725,000 725,000 - 0% City Equipment 215,000 215,000 - 0% County Equipment 620,000 620,000 - 0% Recreation Dearing Recreation Facility Improvements 100,000 100,000 - 0% Handicap Playground 125,000 125,000 - 0% Recreation Facilities 1,500,000 1,500,000 - 0% Government Center Park 1,000,000 1,000,000 - 0% Solid Waste Expansion of existing transfer station 1,800,000 1,800,000 - 0% Water/Sewer Infrastructure Upgrades 4,000,000 4,000,000 55,025 55,025 1% Advertising Costs - 353 353 TOTALS 24,443,415 $ 24,443,415 $ - $ 454,741 $ 454,741 $ 2% ---PAGE BREAK--- MCDUFFIE COUNTY, GEORGIA SCHEDULE OF PROJECT EXPENDITURES AND SOURCE AND APPLICATION OF FUNDS FOR COMMUNITY DEVELOPMENT BLOCK GRANTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 96 Project: Public Facilities: Grant Number: Commencement of Project : Estimated Original Percentage Estimated Prior Current of Purpose Cost Years Year Total Completion Improvements 45,000 $ 30,534 $ - $ 30,534 $ 68% Community Development Block Grant Community Housing Investment Program CH16YMCDU-05 September 2008 ---PAGE BREAK--- 97 This page left blank intentionally. ---PAGE BREAK--- 99 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Commissioners McDuffie County, Georgia We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of McDuffie County, Georgia, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise McDuffie County, Georgia ’s basic financial statements and have issued our report thereon dated June 14, 2022. Our report includes a reference to other auditors who audited the financial statements of McDuffie County Health Department, as described in our report on the McDuffie County, Georgia’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. In planning and performing our audit of the financial statements, we considered McDuffie County, Georgia 's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the McDuffie County, Georgia 's internal control. Accordingly, we do not express an opinion on the effectiveness of the McDuffie County, Georgia 's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether McDuffie County, Georgia’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. ---PAGE BREAK--- 99 McDuffie County, Georgia Page 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. The Baird Audit Group, LLC Certified Public Accountants Augusta, Georgia June 14, 2022 ---PAGE BREAK--- 100 COMPLIANCE SECTION ---PAGE BREAK--- MCDUFFIE COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2021 101 Federal Grantor/ Federal Grantor/ Pass Thru Grantor/ CFDA Contract Program Title Number Number Expenditures U.S. Department of Transportation (Passed through Georgia Department of Transportation) Transit Operating Assistance 20.509 2086-00-25-8202.0452 $70,328 Transit Operating Assistance 20.509 2086-00-25-8202.0452 112,704 $183,032 Transportation Services 20.509 T0066181- FY22 $10,451 0 $10,451 Total U.S. Department of Transportation $193,483 U.S. Department of the Interior Natural Resources (Passed through Georgia Department of Community Affairs) National Trust for Historic Preservation 15.904 2021 $4,260 $4,260 Total U.S. Department of the Interior Natural Resources $4,260 U.S. Department of Health & Human Services (Passed through Economic Opportunities Authority) Community Block Grant/EOA Nutrition 93.569 FY21 $12,932 Community Block Grant/EOA Nutrition 93.569 FY22 6,009 $18,941 Total U.S. Department of Health & Human Services $18,941 Direct Program Federal Asset Forfeiture Program 16 $43,271 Total U.S. Department of Justice $43,271 $259,955 Total Expenditures of Federal Awards ---PAGE BREAK--- 102 MCDUFFIE COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2021 I. Summary of Auditors' Results A. The auditors' report expresses an unmodified opinion on the financial statements of McDuffie County, Georgia. B. No significant deficiencies were disclosed during the audit of the financial statements. C. No instances of noncompliance material to the financial statements of McDuffie County, Georgia, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. D. No significant deficiencies in internal controls over financial reporting were disclosed during the audit