HomeMy WebLinkAboutANNUAL FINANCIAL STATEMENTS 1997
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Annual Financial Statements
December 31, 1997
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Table of Contents
I
Report of Independent Certified Public Accountants
I
General-Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups
I
I
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP
Basis) and Actual- General, Special Revenue, Debt Service and Capital Projects Fund Types
I
Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances -
All Proprietary Fund Types and Similar Trust Funds
I
Combined Statement of Cash Flows - All Proprietary Fund Types and Nonexpendable Trust Funds
Notes to Financial Statements
I
Required Supplementary Information
Combining and Individual Fund Financial Statements:
I
General Fund
Combining Balance Sheet
I
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
I
General Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
Canal Authority Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
State Grants Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP
Basis) and Actual
I
Port Authority Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
Local Law Enforcement Block Grants Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP
Basis) and Actual
I
Special Revenue Funds
I
Combining Balance Sheet
I
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Page
3
7
9
II
12
14
39
49
50
51
52
53
54
55
57
59
I
I
Urban Debt Service Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
Capital Proiects Funds
I
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
I
I
Community Development Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP
Basis) and Actual
Special Sales Tax Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
General Capital Projects:
Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP
Basis) and Actual
I
Quasi Capital Projects Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
I
Special Sales Tax Phase II Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
Special Sales Tax Phase III Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis)
and Actual
I
Enterprise Funds
Combining Balance Sheet
I
Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits)
I
Combining Statement of Cash Flows
Internal Service Funds
I
Combining Balance Sheet
Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits)
I
Combining Statement of Cash Flows
Trust and Agency Funds
I
Combining Balance Sheet
I
Agency Funds
Combining Statement of Changes in Assets and Liabilities
I
Page
78
81
83
85
86
87
88
89
90
93
97
99
103
104
105
109
111
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Commissioners
Augusta-Richmond County
Augusta-Richmond County, Georgia
We have audited the accompanying general-purpose financial statements of Augusta-Richmond County, Georgia as of
and for the year ended December 31, 1997, as listed in the table of contents. These general-purpose financial statements
are the responsibility ofthe County's management. Ourresponsibility is to express an opinion on these general-purpose
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose
financial statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall general-purpose fmancial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose fmancial statements referred to above present fairly, in all material respects, the
fmancial position of Augusta-Richmond County, Georgia as of December 31, 1997, and the results of its operations and
cash flows of its proprietary and fiduciary fund types for the year then ended in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated June 12, 1998 on our
consideration of Augusta-Richmond County's internal control structure and a report dated June 12, 1998 on its
compliance with laws and regulations.
Our audit was conducted for the purpose of forming an opinion on the general-purpose financial statements taken as
a whole. The combining and individual fund financial statements listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the general-purpose financial statements of Augusta-
Richmond County, Georgia. Such information has been subjected to the auditing procedures applied in the audit of the
general-purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the
general-purpose fmancial statements taken as a whole.
Ck;,~
~ 7~ L.L.P.
r
Augusta, Georgia
June 12, 1998
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
General-Purpose Financial Statements
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
4
I
I
I
I
Proprietary Fiduciary Totals
I Fund Types Fund Type Account Groups (Memorandum Only)
General General
Internal Trust and Fixed Long-term
Enterprise Service Agency Assets Debt 1997 1996
I
$ 1,635,546 $1,356,568 $ 4,758 $ $ $ 6,903,189 $ 10,156,588
1,576,073 1,793,726 325,229
I 2,735,863 2,735,863 3,064,407
5,094,945 17,072 1,714,732 17,693,454 21,652,062
938,427 28,821 2,275,868 6,625,283 4,697,272
I 143,244 65,250
1,681,740 1,681,740 798,294
31,938 31,938 44,60 I
I 6,967 6,967 319,245
6,166,936 6,166,936 7,205,001
47,300 47,300 40,700
I 8,895,001 8,895,00 I 7,075,227
9,128,143 9,242,599
5,179,085 5,179,085 4,455,084
5,875,000 5,875,000 7,565,000
I 62,735,803 14,500,628 77,236,431 79,675,384
18,966,753 2,755,797 21,722,550 25,113,077
4,605,354 4,605,354 5,867,916
I 4,954,982 4,954,982 4,769,350
4.797,529 4,797.529 3.615.879
103.679,957 1.402.461 18.529.439 34.967.629 186.223.715 195.748.165
I 63,895,209 63,895,209 62,685,633
143,273,920 143,273,920 124,116,077
I 20,099 20,099 20,099
76,179,799 436,003 76,615,802 62,644,280
I 51,689,088 60,818,155
862,966 2,658,622 1,302,620
217,082 178,123
66,391,882 66,391,882 70,378,891
I 3,252,807 1,739,508
244,053 447,419
4,955,061 4,955,061
I 21.947,551 50.774.174 32,919.287
140,095.1 07 436.003 89.202.399 143,273.920 463.987.799 422.205.153
$243,775.064 $1.838.464 $107.731.838 $143.273.920 $34.967.629 $650.211.514 $617.953.318
I
I 6
I
I
I
Fiduciary Totals
I Fund Type (Memorandum Only)
Expendable
Trust 1997 1996
I $ $104,500,175 $ 98,740,666
3,513,016 3,419,548
I 25,173 4,980,594 4,417,532
6,028,268 5,632,262
7,228,185 5,856,652
3,904,950 3,740,024
I 3,798,260 2,903,664
870 1.153.892 562.014
26,043 135.1 07 .340 125.272.362
I 8,296,819 9,211,242
5,804,365 6,084,841
I 5,178,295 4,713,993
7,371,118 7,150,830
43,038,420 41,003,153
I 12,519,988 10,576,760
5,833,040 5,639,753
7,605,078 8,559,535
I 11,463 212,404 595,694
6,345,443 6,848,214
37 .590.485 24.049.600
11.463 139.795.455 124.433.615
I 14,580 ( 4,688,115) 838,747
1,102,173 3,879,886
I 34,948 14,473,018 16,361,791
(15.005.470) ( 9.689.140)
49.528 ( 4.118.394) 11.391.284
I 455,120 100,159,866 93,725,797
14.518 ( 4.541.936) ( 4,642.315)
469,638 95,617,930 89,083,482
I ( 314.900)
$519.166 $ 91.499,536 $100.159.866
I
I
I
I 8
I
I
I
I Debt Service Capital Proiects
Variance Variance
I Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable )
I $1,324,200 $1,402,526 $ 78,326 $ 29,156,572 $24,504,512 $(4,652,060)
40,000 52,628 12,628 2,590,400 2,857,405 267,005
I 43,767 329,605 285,838
2,776,039 1,616,326 (1,159,713)
I 62,600 (62,600) 23,000 111.073 88,073
1.426,800 1.455.154 28,354 34.589,778 29.418,921 (5.170.857)
I
I
I 1,426,800 1,320,131 106,669
I 54,437,486 37,156,105 17,281,381
38.496.480 38.496.480
1.426.800 1.320.131 106.669 92.933.966 37.156.105 55.777.861
I 135,023 135,023 (58,344,188) (7,737,184) 50,607,004
I 6,000 ( 6,000)
( 940.600) (1.016.973) ( 76,373)
I $ 135.023 $135.023 $(59.278,788) (8,754.157)$50.524,631
I 1,739,508 61,265,574
800,000
I 1,739,508 62,065,574
1.378.276 (1,378,276)
$3,252.807 $51.933.141
I
I 10
I
12
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Combined Statement of Cash Flows -
All Proprietary Fund Types and Nonexpendable Trust Funds
I
Year Ended December 31,1997
Fiduciary Totals
Proprietary Fund Types Fund Type (Memorandum Only)
Internal Nonexpendable
Enterprise Service Trust 1997 1996
Cash flows from operating activities
Operating income (loss) $ 9,900,942 $(5.618.186) $ 35.123 $ 4,317.879 $ 7.844.843
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities
Depreciation 7,252,408 54,617 7,307.025 6.775.960
Amortization 61,689
Bad debts 50,000
Net change in assets and liabilities:
Accounts receivable 131,748 196.796 328,544 1,001,185
Intergovernmental receivable 537,044) 537.044) 82,179
Other receivable 2,337) 2,337) 5,707)
Prepaid expenses 4,435) 232,796 228,361 76,659)
Inventory ( 102,282) 102,282) 145,286
Due from other funds 332,997 1,510,237 1,843,234 873,137)
Accounts payable 227,504) ( 250,972) 478,476) 239,319
Accrued salaries and vacation 175,328 ( 74,394) 100,934 465,359
Due to other funds ( 3,196,322) (l,2 13,654) ( 4,409,976) ( 2,793,853)
Customer deposits 6,600 6,600 ( 700)
Closure/postclosure accrual 850.374 - 850.374 431.376
-
Net cash provided (used) by operating activities 14.682.755 (5.265.042) 35.123 9,452.836 13.347.140
Cash flows from noncapital financing activities
Other revenue 2,476,025 1,750 2,477,775 348,791
Intergovernmental revenue 9,818,007 9,818,007 1,713,739
Operating transfers (net) ( 4.359.464) 4.264.034 (34.948) 130.378) ( 6.633.852)
Net cash provided (used) by noncapital
financing activities 7.934.568 4.265.784 (34.948) 12.165.404 ( 4.571.322)
Cash flows from capital and related financing activities
Acquisition and construction of capital assets (11,122,201) 28,455) (11,150.656) (21.823,368)
Principal paid on revenue bonds ( 1,080,000) ( 1,080,000) ( 2,320,000)
Principal paid on capital leases ( 250,898) ( 250,898) ( 506,967)
Principal paid on notes payable ( 318,964) ( 318,964) ( 356,715)
Proceeds from revenue bonds 5,779,147 5,779,147 64.980.940
Bond issuance costs ( 114,449) ( 114,449) ( 1,038,308)
Payments to refund debt escrow ( 6,760,198) ( 6,760,198) (24,272,017)
Proceeds from notes payable 5.432,033
Interest pai d ( 3,132,519) 68,277) ( 3,200,796) ( 2,815,808)
Contributed capital 1.209.576 - 1.209.576 2.154.008
-
Net cash provided (used) by capital and related
activities (15.790.506) 96.732) ( 15.887.238) 19.433.798
Cash flows from investing activities
Interest received 342,096 342,096 1,010,357
Purchase of investment 73.104) 73.104) 1.076.856)
Net cash provided (used) by investing activities 268.992 - 268.992 ( 66.499)
-
Net increase (decrease) in cash and cash equivalents 7,095,809 (1,095,990) 175 5,999,994 28,143,117
Cash and cash equivalents, beginning of year 53.369.821 2.760.156 343.625 56.4 73.602 28.330.485
Cash and cash equivalents, end of year $ 60.465.630 $ 1.664.166 $343.800 $ 62.473.596 $ 56.473.602
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
See notes to fmancial statements.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
)-
Notes to Financial Statements
14
I
16
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
Note 1 - Summary of significant accounting policies (Continued)
I
City of Augusta voted to consolidate into one government named Augusta-Richmond County, Georgia. The officials for
the new government were elected and, based on the charter, took office on January I, 1996. The unified government
combined all functions and began financial operations January I, 1996.
I
Augusta-Richmond County is governed by a full-time Mayor, with an initial term of three years, and four years thereafter,
and a ten member Commission, who serve on a part-time basis and are elected to staggered terms of two years initially,
and four years thereafter. The Mayor and Commission appoint an Administrator who serves as a full-time administrative
officer and is responsible for the daily operations of the County.
I
I
For financial reporting purposes, the County includes all funds, account groups, agencies, board, commissions, and
authorities that are controlled by or financially dependent upon the County. Control or financial dependence is determined
on the basis of the County's obligation for fmance of deficits, guarantee of debts, selection of governing authority, approval
of budget, authority to make a public levy, ownership of assets, scope of public service and special financing relationships
where there is only partial or no oversight responsibility.
I
I
Utilizing the above criteria, the following agencies and commissions were included using the blending method in the
financial statements: Augusta Port Authority, Augusta Canal Authority, Downtown Development Authority, Richmond
County Public Facilities, Inc. (see Note 4E), Augusta Public Transit, and the Aviation commissions of Bush and Daniel
Fields.
I
Complete fmancial statements for the individual component units may be obtained at the following address:
I
Augusta-Richmond County, Georgia
Finance Department
501 Greene Street
Augusta, Georgia 30901
I
The following organization was excluded from the reporting entity because the County's accountability does not extend
beyond appointing a voting majority of the organization's board members. Financial statements are available from the
organization.
I
Augusta-Richmond County Coliseum Authority - an authority created to maintain a multiple-use coliseum.
I
C. Basis of accounting
I
Governmental fund types, agency funds and the expendable trust fund use a modified accrual basis of accounting.
Revenues are recognized when available and measurable. Revenues that are accrued include federal and state grants and
subventions, property taxes, transient occupancy taxes, sales taxes collected by the State on behalf of the County prior to
year-end, interest, and certain charges for current services. Revenues that are not considered susceptible to accrual include
certain licenses, permits, fmes, forfeitures, penalties, and other taxes. Expenditures, other than interest on long-term debt,
are recorded when the liability is incurred.
I
Proprietary fund types and the nonexpendable trust fund and pension trust funds are accounted for on the accrual basis.
The accrual basis of accounting recognizes revenues when earned. Expenses are recorded when incurred.
I
D. Fixed assets and long-term liabilities
I
The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are
determined by its measurement focus. Fixed assets used in a governmental fund type operation (general fixed assets) are
I
18
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31, 1997
Note 1 - Summary of significant accounting policies (Continued)
I
3. The permanent budget is legally adopted by the County Commission on or before the second regular called meeting
in February.
4. All budget revisions or changes must be approved as required by Georgia law and administrative policy. Transfer of
budgeted amounts between object categories within departments requires the approval of the County Administrator.
The Board of Commissioners must approve revisions that alter the total expenditures of any department or fund. All
appropriations except for items encumbered at year-end lapse. Encumbrances for items not lapsing at year-end are
reappropriated in the ensuing year's budget.
5. Formal budgetary integration is employed as a management control device during the year for the General, Special
Revenue, Debt Service and Capital Projects Funds.
6. Budgets for these funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).
I
I
I
Budget information for expenditures represent the operating budget (as amended) as approyed by the Augusta-Richmond
County Board of Commissioners.
I
F. Encumbrances
I
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 for the General Fund, Special Revenue Funds, Debt Service and Capital Projects Funds.
Encumbrances are recorded when purchase orders are issued but are not considered expenditures until liabilities for
payments are incurred. Encumbrances lapse at year-end and must be resubmitted in the budget for the new year to be paid
with current revenues. Therefore, they are not reported as reservations of fund balance.
I
I
G. Cash and cash equivalents
I
The County maintains a cash and investment pool in which the General Fund and all funds share. Each fund's portion of
the pool is displayed on its respective balance sheet as cash and cash equivalents and includes non-pooled cash and
investments separately held. Funds which have an excess of outstanding checks over bank balance have had these balances
reclassified as a due to the General Fund for purposes offmancial statement presentation. Interest income is allocated to
each fund monthly based on its average monthly balance.
I
I
For the purposes of financial statement presentation, the County considers all highly liquid investments with an original
maturity of three months or less, or with insignificant early withdrawal penalties, to be cash equivalents. Exceptions
include the County's pension plans which classify only cash as cash equivalents in order to appropriately report investment
activity. Cash equivalents include amounts in certificates of deposit, repurchase agreements, and U.S. Treasury bills, and
are stated at cost which approximates market. All deposits are stated at cost plus accrued interest, which reasonably
estimates fair value.
I
I
The State statutes authorize the County to invest in obligations of the United States government and agencies thereof,
general obligations of the State of Georgia or any of its political subdivisions, or banks and savings and loan associations
to the extent that they are secured by the Federal Deposit Insurance Corporation.
H. Investments
I
Investments are reported at cost, except for the investments in the County's pension plans and deferred compensation plan
which are reported at fair value. For these investments, fair value is determined as follows: short-term investments are
reported at cost, which approximates fair value; securities traded on national exchanges are yalued at current prices or
current prices of similar securities; securities for which an established market does not exist are reported at estimated fair
value using selling prices for similar investments for which there is an active market; fair value of real estate is based on
cost.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Notes to Financial Statements - Continued
December 31, 1997
Note 2 - Stewardship, compliance and accountability
A. Excess of expenditures over appropriations
Expenditures
Budget Actual (Excess )
General $72,869,975 $68,460,985 $ 4,408,990
Canal Authority 795,700 90,932 704,768
State Grants 406,123 333,6] 4 72,509
Port Authority 318,088 251,]64 66,924
Local Law Enforcement Block Grants 213.355 219,505 ( 6.150)
Total General Funds $74.603,241 $69.356.200 $ 5.247.041
Urban Services District $ 6,] 06,389 $ 5,305,137 $ 80 I ,252
Emergency Telephone System 2,039,7]9 1,828,140 211,579
Capital Outlay 5,538,108 4,189,667 1,348,441
Law Enforcement 192,174 145,774 46,400
Fire Protection 12,746,977 11,879,]7] 867,806
Occupational Tax
Special Assessment 1,071,600 1, I 08,057 36,457)
PromotionITourism 2,997,000 3,137,725 ( 140,725)
Housing and Neighborhood Development 2,449,034 (2,449,034)
Urban Development Action Grant 43,847 ( 43,847)
Downtown Development Authority 2,037,174 ] ,865,004 172,170
State Capital Grants
Total Special Revenue Funds $32.729.141 $31.951.556 $ 777.585
Debt Service $ 895,200 $ 891,200 $ 4,000
Urban Debt Service 531,600 428.931 102.669
Total Debt Service Funds $ 1.426,800 $ 1.320.131 $ 106.669
Community Development $ 30,216 $ 30,216 $
Special Sales Tax 3,543,084 122,300 3,420,784
General Capital Projects
Quasi Capital Projects
Special Sales Tax Phase II 38,496,480 17,4 73,444 2] ,023,036
Special Sales Tax Phase III 50.864.] 86 19.530.145 31.334.041
Total Capital Projects Funds $92.933,966 $37.156.105 $55.777.861
Waste Management $ 5,018,492 $ 4,132,973 $ 885,519
Water and Sewerage 66,997,289 19,249,854 47,747,435
Bush Field Airport 12,945,679 6,294,425 6,65] ,254
Municipal Golf Course 458,619 301,941 156,678
Transit 5,402,338 2,929,440 2,472,898
Daniel Field Airport 315,085 128,862 186,223
Old Government House 79,950 65,572 14,378
Newman Tennis Center 125.700 116.195 9.505
Total Enterprise Funds $91.343.152 $33.219.262 $58.123.890
20
21,994,138
24.183.647
$ 51.933.141
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
I
Note 2 - Stewardship, compliance and accountability (Continued)
Fund Balance/Equity
I
I
Debt Service
Urban Debt Service
Total Debt Service Funds
$ 3,105,847
146.960
$ 3.252.807
I
Community Development
Special Sales Tax
General Capital Projects
Quasi Capital Projects
Special Sales Tax Phase II
Special Sales Tax Phase III
Total Capital Projects Funds
$ 244,053
5,511,303
I
Waste Management
Water and Sewerage
Bush Field Airport
Municipal Golf Course
Transit
Daniel Field Airport
Old Government House
Newman Tennis Center
Total Enterprise Funds
$ 1,542,953
106,315,092
27,974,658
224,281
3,626,355
231,192
181,725
( 1.149)
$140.095.107
I
I
I
Risk management
Fleet Operations
Central Services
Total Internal Service Funds
$ 503,018
( 67,008)
( 7)
$ 436.003
I
I
1945 Pension Fund
1977 Pension Fund
General Retirement
Expendable Trust Fund - Joseph Lamar
Expendable Trust Fund - Perpetual Care
Non-expendable Trust Fund - Joseph Lamar
Non-expendable Trust Fund - Perpetual Care
Total Trust Funds
$ 13,711,309
8,236,242
66,391,882
( 175)
519,341
5,175
338,625
$ 89.202.399
I
I The County plans to fund the preceding deficits through the general operations of the County.
Note 3 - Detailed notes on all funds and account groups
I
A. Deposits and investments
I
At December 31, 1997, the County's cash and cash equivalents balance on the combined balance sheet included demand
deposits, certificates of deposit, repurchase agreements, and local government investment pools. The cash balance was
secured by Federal Depository Insurance Corporation (FDIC) or Savings Association Insurance Fund (SAIF) or by
collateral held by the agent in the County's name.
I
I
22
I
"
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31, 1997
I
Note 3 - Detailed notes on all funds and account groups (Continued)
The County's investments are shown by type, carrying amount, market value and level of risk assumed in the holding of
the various securities.
I
The levels of risk assumed in the various investments are categorized as follows:
I
Category I: includes the investments that are insured or registered or for which the securities are held by the County of
its agent in the County's name.
I
Category 2: includes uninsured and unregistered investments for which the securities are held by the bank's or dealer's
trust department or agent in the County's name.
I
Category 3: includes uninsured and unregistered investments for which the securities are held by the bank or dealer, or
by its trust department or agent but not in the County's name.
B. Receivables
I
Property taxes are administered on a calendar year basis subject to the following dates:
I
Lien date
Levy date
Collection period
Due date
January 1
August 15
September 15 - November 15
November 15
I
Receivables at December 31, 1997, including the applicable allowances for uncollectible accounts, consist ofthe following:
Special Debt Capital Internal Trust and
General Revenue Service Proiects Enterprise Service Agencv Total
Receivables:
Taxes $1,285,925 $ 1,194,461 $149,775 $ $ $ $8,895,001 $11.525,162
Accounts 2,874,391 399,120 855 3,986,254 1,296 7,261.916
Loans 4,543,873 4,543.873
Interest 54,990 36,374 8,327 99.691
Note 700,000 700.000
Intergovernmental 1,872,972 680,773 50,456 885,018 3,489,219
Other - 80.130 127.304 - 6.678 214.112
-
Gross receivables 6,733,288 6,873,217 150,630 \30,586 5,034,950 1,296 8,910.006 27,833.973
Less: allowance for
uncollectibles 574.811 336.010 \3.841 - 189.440 - 1.114.102
- -
Net total receivables $6.158.4 77 $ 6.537.207 $\36.789 $130.586 $4.845.510 $1.296 $8.910.006 $26.719.871
I
I
I
I
I
In addition to the above loans receivable, a bank maintains records for certain notes receivable that are not recorded in
the accounts of the County. These loans represent funds received through HUD's Housing Rehabilitation Prograrn. The
Housing Rehabilitation Program is designed to fund improvements to homes owned and occupied by persons in low to
moderate income ranges. In 1993, loans were also made to owners ofrental units under a deferred loan arrangement as
part of the Housing Rehabilitation Program. Loans made for these projects vary as to amounts and interest rates based
on the level of income of the owner/occupiers. Repayments of these loans are recorded as other revenue in the Housing
and Neighborhood Development Fund.
I
I
In a prior year, the former City of Augusta entered into an agreement with the Georgia Housing and Finance Authority
(GHF A) to aid in the administration of Federal funds granted through the State for HUD's Rental Rehabilitation Program.
The County acts only in an administrative capacity and does not directly receive or disburse any funds related to this
project. Therefore, the receipts, disbursements and related notes receivable for the GRF A program have not been included
in the fmancial statements. 24
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
I
Note 3 - Detailed notes on all funds and account groups (Continued)
I
I
5 years. The estimated total current cost of the landfill closure and postclosure care ($10,014,337) is based on the amount
that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were
acquired as of December 31, 1997. However, the actual cost of closure and postclosure care may be higher due to
inflation, changes in technology, or changes in landfill laws and regulations.
The County expects to finance the costs for the estimated landfill closure and postclosure care costs as they become due
during the coming thirty years through the regular operations of the County.
I
E. Long-term debt
1. General long-term debt
I
Changes in general long-term liabilities
During the year ended December 31, 1997, the following changes occurred in liabilities reported in the General Long-term
Debt account group (in thousands):
Unfunded
General Certificates Pension
Obligation of Notes Revenue Accrued Capital Benefit
Bonds Participation ~ Bonds Vacation Leases ObliQation Total
Balance, 12-31-96 $ 6,840 $ 7,565 $ 3,344 $ 9,207 $ 1,208 $ 5,630 $ 4,769 $38,563
Additions 1,227 892 186 2,305
Retirements UW ( 1.690) OM) L22.Q) Ll22) (1.917) - (5.900)
-
Balance, 12-31-97 $ 5.990 $ 5.875 $ 2.756 $ 8.511 $ 2.276 $ 4.605 $ 4.955 $34.968
I
I
I
I
General Obligation Bonds
$8,000,000 1981 Public Building Bonds - due in annual installments of$550,000 to $990,000,
plus interest at 6.5% to 9.6%, through January 2002.
$3,990,000
I
$7,020,000 1973 Public Improvement Bonds - due in annual installments of $325,000 to
$350,000, plus interest at 4.75% to 5.5% through November 2003.
2.000.000
Total
$5.990.000
I
Certificates of Participation
$33,650,000 Certificates of Participation (Series 1993) issued by Richmond County Public
Facilities, Inc. (see N9te 4E) - due in annual installments of$I,325,000 to $1,745,000, plus
interest at 3.9% to 4.2% through October 2001.
$5.875.000
I
I
In a prior year, a portion of the Certificates of Participation (Series 1993) was defeased by the creation of an irrevocable
trust fund. Original proceeds remaining from the issue were used to purchase U.S. Goyernment securities that were
placed in a trust fund. The investments and fixed earnings from the investment are sufficient to fully service the
defeased debt until the debt matures. For financial reporting purposes, the debt is considered defeased and, therefore,
not included as a liability in the General Long-term Del;>t account group. As of December 31, 1997, the amount of
defeased debt outstanding but removed from the General Long-term Debt account group is $7,095,000.
I
I
I
26
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
I
Note 3 - Detailed notes on all funds and account groups (Continued)
I
Notes payable
Water and Sewer Fund:
State revolving loan - due in quarterly principal and interest installments of $94,668,
plus interest at 4%, through May 2016.
$ 4,933,420
I
State revolving loan - due in quarterly principal and interest installments of $305,904,
plus interest at 5.5%, through June 2011.
11,346,759
I
State revolving loan - principal and interest at 4% due in quarterly installments beginning
90 days after completion of project. $1,781,686 remaining loan available at
December 31, 1997.
4.368.314
I
Total
$20.648.493
I
During 1996, the County issued $66.6 million in Series 1996 Water and Sewer revenue bonds. A portion of the
proceeds from the sale of these bonds was used to adyance refund all of the former City of Augusta's Series 1972 and
199] Water and Sewer revenue bonds and the former Richmond County's Series 1987 and 1991 Water and Sewer
revenue bonds. Proceeds of $19.4 million plus an additional $4.9 million of sinking fund monies from the defeased
issues were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust fund
with an escrow agent to provide for all future debt service payments on the above-mentioned bonds. As a result, the
bonds are considered to be defeased and the liabilities for those bonds have been removed from the Water and Sewer
Fund. As of December 31,1997, the amount of these defeased debts outstanding but remoyed from the Water and
Sewer Fund is $22,696,476.
I
I
I
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of approximately $2.5 million. This difference, reported in the accompanying fmancial statements as a deduction
from bonds payable, is being charged to operations through the year 2028 using the effective-interest method. The
refunding increased the total debt service payments over the next 30 years by approximately $8.6 million and produced
an economic gain of a.pproximately $260,000.
I
In a prior year, the former Richmond County Water and Sewer 1984 revenue bond issue was defeased by the creation
of an irrevocable trust fund. New debt was issued and the proceeds were used to purchase U.S. Government securities
that were placed in a trust fund. The investments and fixed earnings from the investments are sufficient to fully service
the defeased debt until it is called or matures. For financial reporting purposes, the debt is considered defeased and,
therefore, not included as a liability in the Water and Sewer Fund. As of December 31, 1997, the amount of this
defeased debt outstanding but removed from the Water and Sewer Fund is $300,000.
I
I
In 1997, the County issued $5.9 million in Series 1997 Water and Sewer Revenue Bonds. A portion of the proceeds
from the sale of these bonds was used to advance refund all of the former Richmond County's Series 1986 Water and
Sewer Revenue Bond. Proceeds of approximately $5.6 million plus an additional $.9 million of sinking fund monies
from the defeased issues were used to purchase U.S. government securities. Those securities were deposited in an
irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above-mentioned
bonds. As a result, the bonds are considered defeased and the liability for those bonds will be removed from the Water
and Sewer Fund in subsequent fmancial statements. The defeased debt outstanding that will be removed from the Water
and Sewer Fund is $6.2 million.
I
I
I
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of approximately $540,000. This difference, reported in the accompanying financial statements as a deduction from
I
28
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Notes to Financial Statements - Continued
December 31,1997
Note 3 - Detailed notes on all funds and account groups (Continued)
The County is lessor of terminal space, land and buildings at Bush Field and Daniel Field under various operating leases,
Revenues and related expenses for Bush Field are recorded in the Bush Field Airport Fund while the revenue and related
expenses for Daniel Field are recorded in the Daniel Field Airport Fund. Some of the leases proyjde for additional
payments based on usage activity in additio,n to non-cancelable amounts of fixed rates.
Future minimum lease rentals to the County at December 31, 1997 are as follows:
Bush Field Daniel Field
1998 $ 192,278 $ 83,500
1999 198,176 83,500
2000 204,369 83,500
2001 210,872 83,500
2002 217,000 83,500
Thereafter 1.174.186 445.500
Total $2.196,881 $ 863.000
During 1997, rental income totaled approximately $2.5 million and $87,000 in the Bush Field and Daniel Field Airport
Funds, respectively.
The assets acquired through capital leases as of December 31, 1997 are as follows:
General
Fixed Assets
Enterprise
Funds
Vehic1es
Machinery and equipment
$5,689,543
2,731.641
8,421,184
$ 459,841
696.873
1,156,714
( 388.983)
Less: accumulated depreciation
Carrying value
$8.421,184
$ 767.731
30
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
Note 3 - Detailed notes on all funds and account groups (Continued)
I
H.
Contributed capital
I
I
During 1997, contributed capital in proprietary funds changed as follows:
I
I
I
I
The County is exposed to various risks ofloss related to torts; theft of, damage to and destruction of assets; errors and
omissions; and natural disasters for which the County is self-insured. The Risk Management Fund (an internal service
fund) is utilized by the County to account for and finance its self-insured risks ofloss. Future claims can be paid from
designated funds established in 1987 from previously unrestricted-unreserved funds. Balances as of December 31,
1997, include the following:
I
I
General Fund
Fire Protection Fund
Risk Management Fund
$ 4,705,061
250,000
503.018
I
Total reserve
$ 5.458,079
I
Related liabilities are reported when it is probable that a loss has occurred and the amount ofthe loss can be reasonably
estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). 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.
I
During 1997, changes in the balance of claim liabilities are as follows:
I
Unpaid claims, December 3 I, 1996
Incurred claims (including IBNRs)
Claim payments
$ 1,080,000
840,930
(1,795,290)
I
Unpaid claims, December 31, 1997
$ 125.640
I
I
32
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
I
Note 4 - Other information (Continued)
I
Collection of solid waste. yard waste. and bulk waste
The County has various contracts related to the privatization of its sanitation operations. The tenns of the contracts
are summarized as follows:
I
1998
1999
$2,377,000
197.299
$2.574.299
I
E. Richmond County Public Facilities, Inc.
I
The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code.
Section 501(c)(3). The purpose of this nonprofit organization is to construct and maintain buildings and equipment
to be leased by Augusta-Richmond County, the Department of Family and Children Services, and the Richmond
County Board of Education. The Richmond County Public Facilities, Inc. is part of the reporting entity of Augusta-
Richmond County, Georgia, due to the degree of control the County has over the Board of Directors of Richmond
County Public Facilities, Inc.
I
I
Richmond County Public Facilities, Inc. issued Certificates of Participation to provide funds for the County to refund
the 1990 Certificates of Participation issue and for certain capital projects. The related assets are included in the
financial statements of the County in the General Fixed Asset account group and the Quasi Capital Projects Fund (a
capital projects fund). The liability is included in the General Long-term Debt account group.
I
In addition, the Richmond County Public Facilities, Inc. issued Certificates of Participation of $13,240,000 for the
Richmond County Board of Education in a prior year. These Certificates of Participation are the sole responsibility
of the Richmond County Board of Education and the related assets and liabilities have not been included in the
fmancial statements of Augusta-Richmond County.
I
Note 5 - Pension plans
I
A. Plan descriptions, contribution information and funding policies
I
The County has eight single-employer pension plans currently in existence. These plans are defined benefit plans. The
following is a summary of funding policies, contribution methods, and benefit provisions for each plan.
I
1945 Plan
The 1945 Plan was available to all former Richmond County employees hired prior to October 1, 1975 that met the
Plan's age and length of service requirements. Participants in the Plan who retired at or after age 60 are entitled to a
monthly benefit equal to 2% of average earnings multiplied by years of service. Also, the benefit is not to exceed 60%
of the average earnings. The Plan provides death and disability benefits. These benefit provisions and all other
requirements including amendments are established by County ordinance. The Plan also provides for reduced benefits
if the participant elects to retire after attaining age 50 and completing 15 years of service. Employees are required to
make contributions to the Plan equal to 5% of earnings. The County is required to contribute the remaining amounts
necessary to fund the Plan. If a participant terminates employment prior to completion often years of credited service,
the participant receives a lump-sum amount equal to his total contributions to the Plan, with 5% interest computed from
January 1, 1997. After completion of at least ten years of credited service, the participant receives a monthly benefit
deferred to his normal retirement date, equal to the benefit computed as for normal retirement multiplied by the
percentage based on completed years of credited service, as follows: 50% after 10 years, increasing 10% each year
to 100% after 15 years of credited service.
I
I
I
I
34
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31,1997
Note 5 - Pension plans (Continued)
I
participant is not classified as public safety personnel; participating public safety personnel may retire at age 65 or age
55 with 25 years of total credited service, whichever is earlier. Early retirement may be taken at age 55 with 10 years
of credited service. Benefits vest after 10 years of service. Employees who retire at or after age 55 with 10 or more
years of service are entitled to pension payments for the remainder of their lives equal to I 1/4% of their final five-year
average salary times the number of years of which they were employed as a participant in the GMEBS. The final five-
year average salary is the average salary of the employee during the final five years offull-time employment. Pension
provisions include deferred allowances, whereby an employee may terminate his or her employment with the County
after accumulating 10 years of service but before reaching the age of 55. If the employee does hot withdraw his or her
accumulated contributions, the employee is entitled to all pension benefits upon reaching the age of 55. Employees
must contribute 3.5% of their gross earnings to the Plan. In addition, the County must provide annual contributions
sufficient to satisfy the actuarially determined contribution requirements as amended by GMEBS.
I
I
I
I
Periodic employer contributions to the pension plan are determined on an actuarial basis using the entry age normal
actuarial cost method. Normal cost is funded on a current basis. The Plan is subject to the minimum funding standards
of the Public Retirement Systems Standards Law. Since the County's policy is to contribute the pension expense in
each year, the funding strategy should provide sufficient resources to pay employee pension benefits on a timely basis.
The significant actuarial assumptions used to compute pension contribution requirements are the same as those used
to determine the standardized measure of the pension obligation.
I
I
Membership of the plans are as follows:
I
Retirees and beneficiaries
receiving benefits
Terminated plan members
entitled to but not yet
receiving benefits
Active
Plan
members
I
1945 Plan
1977 Plan
General Pension Plan
Policemen's Pension Plan
Firemen's Pension Plan
City Employees' Pension Plan
General Retirement Plan
GMEBS
43
12
6
3
12
23
169
...ll
1
2
14
386
I
1
...l
187
383
I
Total
339
7
970
The cost of administering the plans are financed through investment earnings.
I
Actuarial assumptions and other information used to determine the annual required contributions are located in the
Supplementary Information section of this report.
I
B. Summary of significant account policies
I
Pension trust funds are accounted for on the accrual basis. The accrual basis of accounting recognizes revenues when
earned. Expenses are recorded when incurred. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions are recognized when due and the County has made a formal commitment
to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms
of the plan. For information relating to reported investment values, see Note 1 H.
I
I
36
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Notes to Financial Statements - Continued
I
December 31, 1997
Note 7 - Prior period adjustments (Continued)
I
Enterprise Funds
In the financial statements for the year ended December 31, 1996, an error was made in accounting for the closure and
postclosure accrual in the Waste Management Fund, resulting in an overstatement of net income of$148,478. The error
has been corrected and has had the following effect on the beginning retained earnings:
I
I
Beginning retained earnings/(deficit), as previously reported
Adjustment of closure and postclosure accrual
$62,664,379
( 331.276)
Beginning retained earnings(deficit), as restated
$62.333.103
I
Expendable Trust Funds
In the financial statements for the year ended December 31, 1996, an error was made in accounting for investments in the
Perpetual Care Fund, resulting in an overstatement of net income of $1 0,575. The error has been corrected and has had
the following effect on the beginning fund balance:
I
I
Beginning fund balance, as previously reported
Adjustment of investments
$ 455,120
14.518
Beginning fund balance, as restated
$ 469.638
I
Pension Trust Funds
In the fmancial statements for the year ended December 31, 1996, an error was made in accounting for investments in the
General Retirement Fund, resulting in an understatement of net income of$5,394,244. The error has been corrected and
has had the following effect on the beginning retained earnings:
I
I
Beginning fund balance, as previously reported
Adjustment of investments
$70,378,891
7,889.949
Beginning fund balance, as restated
$78.268.840
I
Note 8 - Subsequent events
I
The Urban Development Action Grant (UDAG) fund, a special revenue fund, has a non-interest bearing loan receivable
with a net present value of approximately $2.2 million, assuming an interest rate of 8.5%. In June 1998, the Augusta-
Richmond County Commission approved acceptance of$3.25 million in full payment of the outstanding loan. The County
Commission must place the $3.25 million in an escrow account to fund the expansion of the County's Convention Center.
All actions are subject to the approval of U.S. Department of Housing and Urban Development.
I
I
I
I
I
38
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Defined Benefit Pension Trusts - Required Supplementary Information
December 31,1997
A. Schedules of funding progress (Continued)
Firemen's Pension Plan
Actuarial (Funded) (FAAL)
Accrued Unfunded UAAL as
Actuarial Actuarial Liability AAL a %of
Valuation . Value of AAL (FAAL) Funded Covered Covered
Date Assets Entry A ge UAAL Ratio Payroll Payroll
12/31/92 $ $ 1,678,386 $ 1,678,386 - % $ -%
12/31/93 1,475,590 1,475,590
12/31/94 1,342,821 1,342.821
12/31/95 1,296,843 1,296,843
12/31/96 1,202,831 1,202,831
12/31/97 1,507,501 1,507,501
City Employees' Pension Plan
12/31/92 $ $ 3,149,994 $ 3,149,994 -% $ - %
12/31/93 - 2,960,183 2,960,183
12/31/94 2,704,129 2,704,129
12/31/95 2,598,066 2,598,066
12/31/96 2,584,786 2,584,786
12/31/97 2,418,723 2,418,723
General Retirement Plan
01/01/92 $44,538,174 $32,563,498 $(11,974,676) 137% $ 7,604,624 (158)%
01/01/93 47,314,256 38,551,529 ( 8,762,727) 123 7,397,577 (119)
01/01/94 49,875,350 36,456,408 (13,418,942) 137 7,243,580 (185)
01/01/95 47,710,074 39,699,516 ( 8,010,558) 120 7,053,091 (J 14)
o 1/0 1/96 56,004,033 41,587,715 (14,416,318) 135 6,345,073 (227)
01/01/97 59,413,476 42,712,240 (16,701,236) 139 5,165,172 (323)
GMEBS
03/01/93 $ 2,107,098 $ 2,345,501 $ 238,403 90% $ 8,864,510 3.0%
03/01/94 2,754,918 2,903,208 148,290 95 10,375,830 1.0
03/01/95 3,351,907 3,315,936 ( 35,971) 101 10,657,439 ( .3)
03/01/96 3,731,118 3,568,982 ( 162,136) 105 9,369,684 ( 2.0)
03/01/97 4,144,704 5,312,277 1,167,573 78 8,082,062 14.0
03/01/98 4,609,848 5,756,304 1,146,456 80 8,913,934 13.0
40
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Defined Benefit Pension Trusts - Required Supplementary Information
December 31,1997
B. Schedules of employer contributions (Continued)
City Employees' Pension Plan
Annual
Required
Contribution
Fiscal
Year
Percentage
Contributed
1992
1993
1994
1995
1996
1997
$466,306
442,423
415,480
408,999
369,477
409,881
100%
100
100
100
100
100
General Retirement Plan
1992
1993
1994
1995
1996
1997
$
$
GMEBS
1992
1993
1994
1995
1996
1997
$206,321
216,604
232,298
106,440
187,548
197,167
100%
100
100
100
100
100
C. Notes to required supplementary information
1945 Plan
1977 Plan
Valuation date
Actuarial cost method
Amortization method
Amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
1/1/96
Attained age aggregate
Level percentage of payroll
Average future working lifetime
Market value
1/1/96
Attained age aggregate
Level percentage of payroll
A verage future working lifetime
Market value
8%
5%
None
5%
8%
5%
None
5%
42
I
GMEBS
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Defined Benefit Pension Trusts - Required Supplementary I~formation
I
December 31'j1997
C. Notes to required supplementary information (Continued)
I
I
Valuation date
Actuarial cost method
Amortization method
Amortization period
I
I
Actuarial asset valuation method
I
I
I
Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
I
I
I
I
I
I
I
I
I
General Retirement
Pension Plan
1/1/97
Frozen entry age
Level percentage of payroll
Various periods to comply with
state law
The sum of the actuarial value of
assets on the preceding valuation
date, net contributions and
disbursements during the preceding
year, interest on the items calculated
using the valuation investment
return assumption, and 20% of the
difference between the market value
of assets on the current valuation
date and the sum of the first three
items.
8.0%
5.5%
4.0%
4.0%
44
3/1 /98
Projected unit credit
Level dollar
30 years open
Roll forward prior year's actuarial
value with contributions,
disbursements, and expected return
of investments, plus 10% of
investment gains (losses) during 10
. prior years.
8%
6%
None
None
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Combining and Individual Fund
Financial Statements
46
I
48
I
General Fund
I
The General Fund is used to account for all of the County's financial resources except those resources that must be
accounted for in a special purpose fund. Current inflows are typically from revenue sources such as property taxes,
fmes, and penalties. Current outflows are generally related to the proYision of various governmental services such as
health and welfare, public safety, and general governmental administration.
I
General Fund - This fund is the general operating fund ofthe County. It is used for all financial resources except those
required to be accounted for in another fund.
I
Canal Authority Fund - This fund is a sub-fund of the General Fund. It is used to account for revenues, other financing
sources, and expenditures of the Augusta Canal Authority.
I
State Grants Fund - This fund is a sub-fund of the General Fund. It accounts for expenditures and receipts of general
state grants.
I
Port Authority Fund - This fund is a sub-fund of the General Fund. It accounts for revenues, other financing sources,
and expenditures of the Augusta Port Authority.
I
Local Law Enforcement Block Grants Fund - This fund is a sub-fund of the General Fund. It accounts for receipts and
expenditures of a two year grant to fund five deputies and one purchasing clerk.
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
General Fund
I
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficits)
Year Ended December 31,1997
Local Law
Canal State Port Enforcement Totals
General Authority Grants Authority Block Grants 1997 1996
REVENUES
Taxes $51,325,256 $ - $ - $ - $ $51,325.256 $43.088.753
Licenses and permits 1,737,089 1,737.089 1.548.976
Use of money and property 1,350,234 21,557 12,191 1.383.982 972.559
Charges for services 3,629,620 602,776 78,624 4.3 11.020 4,153.124
Fines and fees 7,228,054 131 7,228.185 5,856.652
Intergovernmental 1,453,955 4,606 1,458.561 1,222.101
Cost reimbursements 2,181,934 2,181,934 1.659.523
Other 274.870 1.494 3.498 279.862 261. 152
Total revenues 69.181.012 625.827 4.606 82.122 12.322 69.905.889 58.762.840
EXPENDITURES
Administration 6,840,372 87,173 101,279 155,105 7,183,929 8,557,722
Economic, community and environmental 640,761 640,761 1,250.222
Finance and tax administration 4,961, I 06 4,961,106 4.673.779
Judicial 7,207,635 7,207,635 6,735.494
Public safety 26,916,661 26,916,661 23,156.724
Public works 6,914,503 6,914,503 6.052.745
Health and welfare 5,833,040 5,833.040 5.639.753
Culture and recreation 7,541,909 7.541. 909 8,209.034
Debt service 1,494,442 117,278 1,611.720 1.631.709
Capital outlay 3,759 333,614 32,607 64,400 434.380
Other 110.556 110.556 448.208
Total expenditures 68.460.985 90.932 333.6 I 4 251. I 64 219.505 69.356.200 66.355.390
Excess of revenues over (under)
expenditures 720,027 534,895 (329,008) (169,042) (207,183 ) 549.689 (7.592.550)
OTHER FINANCING SOURCES (USES)
Operating transfers in 7,198,684 260,699 7,459,383 9.368,220
Operating transfers out (4.228.124) ( 299) ( 10.864) ( 4.239.287) ( 115.315)
Excess of revenues over (under)
expenditures and other
financing sources (uses) 3.690.587 534.596 (329.008) 80.793 (207.183) 3.769.785 1.660.355
Fund balances (deficits), beginning of year,
as previously reported 20,171,560 490,042 ( 36,268) 8,409 746 20,634,489 23,536,799
Prior period adjustments ( 4.642.315)
Fund balances (deficits), beginning of year,
restated 20,171,560 490,042 ( 36,268) 8,409 746 20,634,489 18,894.484
Residual equity transfers 79.650
Fund balances (deficits), end of year $23.862.147 $1.024.638 $(365.276) $ 89.202 $(206.437) $24.404.274 $20.634.489
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
See notes to financial statements.
I
50
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Canal Authority Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
REVENUES
Use of money and property $ $ 21,557 $ 21,557 $ 1,314
Charges for services 475,000 602,776 127,776 479,004
Intergovernmental 320,700 (320,700) 780
Other 1.494 1.494 3.881
Total revenues 795.700 625.827 (169.873) 484.979
EXPENDITURES
Administration 104,275 87,173 17,102 62,211
Capital outlay 691.425 3,759 687 ,666
Total expenditures 795.700 90.932 704.768 62.211
Excess of revenues over expenditures 534,895 534,895 422,768
OTHER FINANCING SOURCES (USES)
Operating transfers in 16,200
Operating transfers out ( 299) 299)
Excess of revenues over expenditures and
other financing sources (uses) $ 534,596 $ 534.596 438,968
Fund balances, beginning of year 490.042 51.074
Fund balances, end of year $1,024,638 $490.042
See notes to financial statements.
52
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Port Authority Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
REVENUES
Charges for services $ 104,300 $ 78,624 $(25,676) $ 79,641
Other 5,700 3.498 ( 2,202) 500
Total revenues 110.000 82.122 (27.878) 80.141
EXPENDITURES
Administration 156,109 101,279 54,830 98,235
Debt services 122,279 117,278 5,001 117,278
Capital outlay 39.700 32.607 7.093
Total expenditures 318.088 251.164 66.924 215,513
Excess of revenues under expenditures (208,088) (169,042) 39,046 (135,472)
OTHER FINANCING SOURCES (USES)
Operating transfers in 261,074 260,699 ( 375) 129,973
Operating transfers out ( 52.986) ( 10.864) 42,122
Excess of revenues over (under) expenditures
and other financing sources (uses) $ 80,793 $ 80.793 5,399)
Fund balances, beginning of year 8.409 13.808
Fund balances, end of year $ 89.202 $ 8.409
See notes to fmancial statements.
54
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds from specific revenue sources which are legally restricted
to expenditures for specified purposes.
Urban Services District Fund - This fund accounts for revenue primarily from ad valorem taxes from areas within the
former city limits and expenditures related to governmental services such as "Main Street", "Urban Street Lights", and
"Sanitation" .
Emergencv Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the emergency
telephone response system.
Capital Outlay Fund - This fund accounts for the disbursement of revenues for all capital expenditures in General Fund
departments. Capital expenditures are defined as any non-disposable item over $500 which includes vehicles, office
and computer equipment, communications equipment, building renovations and office furniture.
Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriff's Department and Jail.
Fire Protection Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire protection
services in the unincorporated area only.
Occupational Tax Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire
protection services in the unincorporated area only.
Special Assessment Fund - This fund accounts for the receipt and disbursement of street light assessment taxes for the
installation of street lights in the County.
Promotion/Tourism Fund - This fund accounts for the receipt and disbursement of hotel/motel and beer/wine tax
revenues to the Augusta-Richmond County Convention & Visitors Bureau and the Augusta-Richmond County Coliseum
Authority.
Housing and Neighborhood Development Fund - This fund accounts for the financing and construction of yarious
community development projects from grants received from the U.S. Department of Housing and Urban Development.
Urban Development Action Grant (UDAG) Fund - This fund accounts for loan transactions in relation to urban
development action grants. Repayments of initial grant revenue loaned to qualified recipients are restricted to additional
financing to qualified applicants.
Downtown Development Authority Fund - This fund accounts for funding it receives from the County and from special
tax on downtown merchants.
State Capital Grants Fund - This fund accounts forreceipt and expenditure of the State Capital Grant, which is restricted
for capital expenditures only.
56
I
I
I
I Urban
Housing and Development Downtown State
Special Promotion! Neighborhood Action Grant Development Capital Totals
I Assessment Tourism Development (UDAG) Authority Grants 1997 1996
I $208,821 $60,423 $322,428 $ 378,072 $641,096 $ $17,731,766 $18,567,411
106,487 43,355 921,313 1,31 1,323
I 1,086 87,331 384,272 162,885
4,466,824 7,901 4,495,859 ] 0,003,026
52,057 69 54,990 43,936
I 62,332 680,773 27,089
203,343 204,843
- 47,866 - 821.338 3,972,855
- -
I $315,308 $61,509 $472.091 $ 4,896,953 $935,660 $7.970 $25.295.154 $34.088.525
I
I $ 71,775 $61,509 $ 56,352 $ $ 41,258 $ $ 788,269 $ 459,309
217,653 217,653 239,726
167,167 3,088 7,151 4,820,752 9,223,654
16,779 716,125 588,678
I 55,921 - - 7,362.207 7.51 1,983
- -
127,696 61.509 240.298 3.088 258.911 7.151 13.905.006 18.023.350
I 250,000 250,000
187,612 - 23 1, 793 4,893,865 676.749 .....ill I 1,]40.148 15.815.175
I -
187.612 - 23 1,793 4,893,865 676.749 .....ill 11.390,148 16.065,175
-
I $315,308 $61.509 $472.091 $ 4.896,953 $935.660 $7.970 $25.295.154 $34,088.525
I
I
I
I 58
I
I
I
I Urban
Housing and Development Downtown State
I Special Promotion/ Neighborhood Action Grant Development Capital Totals
Assessment Tourism Development (UDAG) Authority Grants 1997 1996
I $1,095,647 $3,137,725 $ - $ $ 180,587 $ - $27 ,267 ,881 $26,602,080
1,775,927 1,870,572
159,342 10,209 661,406 357,504
I 1,717,248 1,479,138
2,116,784 2,116,784 2,200,350
248.835 - 762.087 173.254
-
1.095.647 3.137.725 2,365,619 159.342 190.796 - 34.301.333 32.682.898
-
I
306,369 1,112,890 653,520
I 3,137,725 1,970,461 5,163,604 4,834,619
217,189 40,214
163,483 415,336
I 16,121,759 17,846,429
1,108,057 5,605,485 4,524,015
63,169 350,501
I 172,204 1,865,004 3,413,592 4,348,905
43.847 - 90.385 85.574
-
1.] 08.057 3.137.725 2.449.034 43.847 1.865.004 - 31.951.556 33.099.113
-
I ( 12,410) ( 83,415) 115,495 (1,674,208) 2,349,777 ( 4] 6,215)
I 1,102,173 3,879,886
70,511 1,916,874 6,978,687 6,965,868
I ( 100.000) 8.1 0 1) - (9.749.210) (8.847.245)
-
I ( 112,410) ( 21,005) 115,495 242,666 681,427 1,582,294
I 300,022 252,798 10,134,824 434,083 819 16,065,175 14,877,431
(5,356.454) - (5.356.454)
-
300,022 252,798 4,778,370 434,083 819 10,708,721 14,877,431
I - ( 394.550)
-
$ 187.612 $ $ 231.793 $ 4.893.865 $ 676.749 $819 $11.390.148 $16.065.175
I
I 60
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Emergency Telephone System Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
REVENUES
Charges for services $1.581.000 $1.511.412 $(69.588) $1.282.342
EXPENDITURES
Public safety 2.039.719 1.828.140 211.579 2.027.010
Excess of revenues under expenditures ( 458,719) ( 316,728) 141,991 ( 744,668)
OTHER FINANCING SOURCES (USES)
Capital leases 259,023 209,698 (49,325) 248,006
Operating transfers out ( 14.514) ( 42.580) (28.066) ( 14.514)
Excess of revenues under expenditures
and other financing sources (uses) $( 214.210) ( 149,610) $ 64.600 (511,176)
Fund balances (deficits), beginning of year ( 734.774) ( 223.598)
Fund balances (deficits), end of year $( 884.384) $( 734.774)
See notes to financial statements.
62
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Law Enforcement Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
192.174 145.774 46.400
8,826 67,512 58,686
41,395 (41,395)
(50.221) (50.221 )
17,291 $ 17.291
122,629
$139.920
Budget
REVENUES
Use of money and property
Charges for services
Total revenues
$ 3,000
] 98.000
20 I ,000
EXPENDITURES
Public safety
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Excess of revenues over expenditures and other
financing sources (uses) $
Fund balances, beginning of year
Residual equity transfers
Fund balances, end of year
See notes to fmancial statements.
64
Variance
Favorable
Actual (Unfavorable)
$ 9,025
204.261
213.286
$ 6,025
6.261
12,286
1996
Actual
$ 5,098
120.000
125.098
53.294
71,804
(16.388)
55,416
67.213
$122.629
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RIcHMOND COUN'ry, GEORGIA
Occupational Tax Fund
Statement of Revenues, ExpeIljditures and
Changes in Fund Balance - Budget (GA14..P Basis) and Actual
Year Ended December 3t 1997
(With Comparative Totals for the Year Endjd December 31,1996)
REVENUES
Licenses and permits
Use of money and property
Total revenues
OTHER FINANCING USES
Operating transfers out
Fund balance (deficit), beginning of year
Excess of revenues over financing uses
Fund balances, end of year
See notes to financial statements.
Budget
I
$ 2,352,253 $
I
20.000
2.372,253
(2.372.J31
1
$
66
Variance
Fayorable 1996
Actual (Unfavorable ) Actual
1,775,927 $(576,326) $ 1,870,572
22.307 2.307 36,033
1.798.234 (574.019) 1.906,605
(1.798.234)
574,0 I 9
$
$
( 1.885.491)
21,114
2L114)
$
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Promotionrrourism Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
Actual
Variance
Favorable
(Unfavorable)
Budget
REVENUES
Taxes
$ 2.997.000 $ 3.137.725 $ 140.725
EXPENDITURES
Economic, community and environmental
2.997,000 3.137.725 (140.725)
$
$
Excess of revenues over expenditures
Fund balances, beginning of year
$
Fund balances, end of year
See notes to fmancial statements.
68
1996
Actual
$ 2.975,185
2.975.] 85
$
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Urban Development Action Grant Fund (UDAG)
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
REVENUES
Use of money and property
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
$ - $ 159.342 $159.342 $ 58.956
43.847 (43,847) 49.174
$ 115,495 $115.495 9,782
10,134,824 10,125,042
(5.356.454)
4.778.370 10.125.042
$ 4.893,865 $10.134.824
EXPENDITURES
Other
Excess of revenues over expenditures
Fund balances, beginning of year, as previously reported
Prior period adjustment
Fund balances, beginning of year, as restated
Fund balances, end of year
See notes to fmancial statements.
70
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
State Capital Grants Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
REVENUES
Use of money and property
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
$ $ $ $ ..!l2
~ -
-
$ 819 $ 819
Fund balances, beginning of year
Fund balances, end of year
See notes to financial statements.
72
I
I
I
I
Debt Service Funds
I
The Debt Service Funds are used to account for resources that will be used to service general long-term debt that is
recorded in the General Long-Term Debt Account Group. In general, Debt Service Funds are established only iflegally
required or when resources are being accumulated to meet principal and interest payments that will be made in future
periods.
I
I
Debt Service Fund - This fund accounts for general obligation bonds and notes payable and any other debts not recorded
in the Enterprise Funds.
Urban Debt Service Fund - This fund accounts for general obligation bonds related to the former City of Augusta.
I
I
I
I
I
I
I
I
I
I
I
I
74
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Debt Service Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31,1997
Urban
Debt Debt Totals
Service Service 1997 1996
REVENUES
Taxes $ 826,635 $575,891 $1,402,526 $ 789,892
Use of money and property 52,628 52.628 53.386
Total revenues 879.263 575,891 1.455,154 843.278
EXPENDITURES
Debt service 891.200 428.931 1.320.131 867 ,600
Excess of revenues over (under) expenditures ( 11,937) 146,960 135,023 ( 24,322)
Fund balances, beginning of year 1,739,508 1,739,508 1,763,830
Residual equity transfer l.378.276 1.378,276
Fund balances, end of year $3.105,847 $]46.960 $3.252.807 $1.739.508
See notes to fmancial statements.
76
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Urban Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
REVENUES
Taxes
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
$531.600 $575.89] $ 44.291 $
531 ,600 428.931 102,669
$ 146.960 $146.960
EXPENDITURES
Debt service
Excess of revenues over expenditures
Fund balances, beginning of year
Residual equity transfer
Fund balances, end of year
$146.960
$
,
See notes to fmancial statements.
78
I
I
I
I
Capital Projects Funds
I
The acquisition or construction of capital projects, other than those financed by Enterprise Funds, Internal Service
Funds, or Trust Funds, may be accounted for in a Capital Projects Fund. Usually a Capital Projects Fund is used to
account for major capital expenditures such as the construction of civic centers, libraries, and general administrative
service buildings. The acquisition of other capital assets, such as machinery, furniture, and vehicles, is usually
accounted for in the fund that is responsible for the financing of the expenditure.
I
I
Community Development Fund - This fund accounts for the financing and construction of various community
development projects. Financing is provided by grants received from the U.S. Department ofHUD.
I
Special Sales Tax Fund - This fund accounts for financing and construction of various road improvement projects.
Financing is provided by receipts from a 1987 special one percent local option sales tax referendum.
I
General Capital Proiects Fund - This fund accounts for financing and construction of the Department of Family and
Children Services facility and other future projects.
I
Ouasi Capital Proiects Fund - This fund accounts for the County's portion of fmancing activities of the Richmond
County Public Facilities, Inc., a nonprofit corporation.
I
80
I
Special Sales Tax Phase II Fund - This fund accounts for fmancing and construction of various construction and road
improyements, drainage, jail improvements and museums. Financing is to be provided by receipts from a 1991 special
one percent local option sales tax referendum.
I
Special Sales Tax Phase III Fund - This fund was established to account for expenditures specifically budgeted from
revenues from the one cent sales tax (Phase III) collected from the years 1996 - 2000 to be used primarily for public
works, recreation and outside agency projects.
I
I
I
I
I
I
I
I
I
I General Quasi Special Special
Capital Capital Sales Tax Sales Tax Totals
Proiects Proiects Phase II Phase III 1997 1996
I $ $ $23,262,027 $26,541,973 $55,788,931 $60,564,986
I 2,716,995
49,618 50,456 40,106
80,130 80,130
I 134,269 134,269 1,599,573
1,163,877 1,163,877 1,121,019
- 10.000 10.000 1.427.837
-
I $ - $1.378,276 $23,321.645 $26.541.973 $57 ,227 ,663 $67,470.516
-
I
$ $ $ 392,121 $ 125,955 $ 518,076 $ 3,560,514
I 1,378,276 935,386 2,176,008 4,720,083 1,809,671
56,363 56,363 34,757
- 800.000
-
I - 1.378.276 1.327,507 2,358.326 5.294.522 6,204.942
-
21,994,138 24,183,647 51,689,088 60,818,155
I - 244.053 447,419
-
- 21,994.138 24,183.647 51.933.141 61.265.574
-
I $ - $1.378,276 $23,321,645 $26,541,973 $57.227.663 $67.4 70.516
-
I
I
I
I
I
I 82
I
I
I
I General Quasi Special Special
I Capital Capital Sales Tax Sales Tax Totals
Pro i ects Proiects Phase II Phase III 1997 1996
$ $ $ 864 $24,503,648 $24,504,512 $28,259,941
I 1,491,397 1,089,724 2,857,405 3,012,489
329,605 317,573
1,354,307 1,616,326 1,244,141
I 75.52] 23.000 12.552 111,073 121,658
75,521 2.869.568 25,605.924 29.4] 8.921 32.955,802
I 17,473,444 19,530,145 37,156,105 24,049,600
28.146
I 17.473.444 19,530.145 37,156.105 24.077.746
75,521 (14,603,876) 6,075,779 (7,737,184) 8,878,056
I 4,500
( 968.863) (1,0]6,973) 726.580)
I 75.52] (]4,603.876) 5.1 06.9] 6 (8.754.157 ) 8.155.976
I (800,000) 1,302,755 36,598,014 19,076,731 61,265,574 53,109,598
800,000 800.000
I 1,302,755 36,598,014 19,076,731 62,065,574 53,109,598
(1.378.276) ( 1.378.276)
I $ $ $ 21.994.138 $24.183.647 $51.933.14] $61.265.574
I
I
I
I
I 84
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Special Sales Tax Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31, 1996)
REVENUES
Use of money and property
Cost reimbursements
Total revenues
Variance
Favorable 1996
Budget Actual (Unfavorable) Actual
$ 195,000 $ 276,284 $ 81,284 $ 285,770
204,673 262.019 57.346 361.544
399.673 538.303 138,630 647.314
EXPENDITURES
Capital outlay 3.543,084
989.908
122.300 3.420.784
Excess of revenues over (under) expenditures (3,143,411)
416,003 3,559,414
( 342,594)
OTHER FINANCING USES
Operating transfers out
(48.110) (48.110)
Excess of revenues over (under) expenditures
and other financing uses $(3,143.411)
367,893 $3.511.304
( 342,594)
Fund balances, beginning of year
5,143.410
5.486.004
Fund balances, end of year
$5.5] 1.303
$5.]43.410
See notes to fmancial statements.
86
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA.
Quasi Capital Projects Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
REVENUES
Other $ - $ 75,521 $75.521 $ 133,74]
EXPENDITURES
Capital outlay 144,986
Other - 9.770
-
Total expenditures - 154.756
-
Excess of revenues over (under) expenditures $ 75,521 $75.521 21,015)
Fund balances, beginning of year, as previously reported 1,302,755 2,920,230
Prior period adjustment ( 1.596.460)
Fund balances, beginning of year, as restated 1.302.755 1.323.770
Residual equity transfer (1.378.276)
Fund balances, end of year $ $ 1.302.755
See notes to fmancial statements.
88
Excess of revenues over (under)
expenditures
Variance
Favorable 1996
Budget Actual (Unfavorable ) Actual
$ 29,154,572 $24,503,648 $(4,650,924) $26,051,757
1,095,400 1,089,724 ( 5,676) 323,994
13.551 12,552 ( 999) 229
30.263.523 25.605.924 (4.657 .599) 26.375.980
50.864,186 19.530.145 31.334.041 6.716.715
(20,600,663) 6,075,779 26,676,442 19,659.265
I.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Special Sales Tax Phase III Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Year Ended December 31,1997
(With Comparative Totals for the Year Ended December 31,1996)
REVENUES
Taxes
Use of money and property
Other
Total revenues
EXPENDITURES
Capital outlay
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
6,000 (
( 940.600) ( 968.863) (
6,000)
28.263)
( 582.534)
Excess of revenues over (under)
expenditures and other financing
sources (uses)
$(2L535,263) 5,106,916 $26.642.179
19,076,731
Fund balances, beginning of year
19.076.731
Fund balances, end of year
$24.183.647
$19.076.731
See notes to financial statements.
90
I
Enterprise Funds
I
I
I
I
Enterprise Funds are generally established if the intent of the governing body is that the cost of providing goods or
services is financed or recovered primarily through user charges or if the governing body has decided that periodic
determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public
policy, accountability, or other purposes.
I
Waste Management Fund - This fund accounts for the provision of landfill services to residents and industries of the
County. All activities necessary to provide such services are accounted for in this fund including, but not limited to,
administration, operations, billing and collection.
I
I
Water and Sewer Fund - This fund accounts for the provision of water and sewer services to residents of the County.
All activities necessary to provide such services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt service and billing and collection.
I
Bush Field Airport Fund - This fund accounts for the operations of Bush Field Airport, the only airport within the
County from which service from the major airlines is available.
I
Municipal Golf Course Fund - This fund accounts for the operation of the Municipal Golf Course, an 18-hole golf
course located within the city limits.
I
Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus service
within Richmond and Columbia counties.
Daniel Field Airport Fund - This fund accounts for revenue and expenditures related to Daniel Field Airport.
I
Old Government House Fund - This fund accounts for the operations of the Old Government House, a historic building
within the city limits. The house is available for short-term rentals.
I
Newman Tennis Center Fund - This fund accounts for receipt and expenditures related to the operations at Newman
Tennis Center.
I
I
I
I
I
I
92
I
I
I
I
I Old Newman
Municipal Daniel Field Government Tennis Totals
Golf Course Transit Airport House Center 1997 1996
I $128,236 $ 1,150 $333,633 $ $7,633 $ 14,499,831 $ 7,935,567
I,] 49,960 1,076,856
I 1,223 7,416 3,796,814 3,928,562
683 36,374 44,994
543,910 885,018 347,974
I 17,829 109,475 127,304 116,347
500 4,435 4,935 500
13,726 120,300 1,330,529 1,330,529
34.238 18.551 - 2.181.260 2.514,257
-
I 195,752 691,327 338.751 109.475 7.633 24.012.025 17.295.586
I 42,149,835 40,041,041
2,324,792 5,003,918
88,451 256,009
I 1,355,421 92,586
- 47,300 40.700
-
- 45.965.799 45.434.254
-
I 56,668 3.865.786 79.886 171,792 170.641.811 166.772.018
-
-
I 1,365,516 1,251,067
- 1.789.913 1.659.060
-
I - 3.155.429 2.910.127
-
$252.420 $4.557.113 $418.637 $281.267 $7.633 $243.775.064 $232.411.985
I
I
I
I
I 94
I
I
I
I Old Newman
Municipal Daniel Field Government Tennis Totals
I Golf Course Transit Airport House Center 1997 1996
$417,602 $ 707.041 $ 87.334 $ 48,744 $ 71.740 $43.120.204 $40.955.743
I 119,683 1,906,375 28,757 36,669 36,158 ]0,053,766 10,323,403
9,434 45,568 5,977 7,593 9,510 2,658,231 2,525,505
I 31,804 120,748 11,529 ] ,515 1,229 3,051,45] 3,291,317
21,929 184,342 1,085 6,715 43,439 3,977,2]9 2,0] 0,280
9,854 8,028 2,490 22,159 ],94],812 1,037,132
86,997 19,063 40] 110,396 87,907
I 50,000
31,376 48,378 73,486 3,299 3,323,605 3,569,0]9
718 595,112 10,590 7,252,408 6,719,800
I 710,051
850.374 585.527
301.94] 2.929.440 128.862 65.572 ] ]6.195 33.219.262 30.909,941
115.661 (2,222.399) (41.528) (16.828) (44.455) 9.900,942 10.045.802
I
7,595 9,563 342,096 885.461
I 9,525 22,391 2,476,025 348,791
(4,310,811) (1,994,744)
( 35,262)
I 97.263 9,818.007 I. 710.245
17.120 97 .263 9.563 22.391 8.325.317 914.491
132,781 (2,125,136) (31,965) (16,828) (22,064) 18,226,259 10,960,293
I 1,321,551 16,135 22,084 5,142,304 1,612,244
(13.360) ( 74.677) ( 177) ( 1.169) (9.501.768) (9.436.645)
I 119,421 ( 878,262) (31,965) ( 870) ( 1,149) 13,866,795 3,135,892
104,860 (4,429,010) (51,743) 154,396 62,664,379 59,530,463
I ( 33] .276) 1.976)
I ] 04.860 (4.429.010) (51.743) 154.396 62.333.] 03 59.528.487
$224.281 $(5.307.272) $(83,708) $153.526 $( 1.149) $76.199.898 $62.664.379
I
I
I 98
I
I
I
I Old Newman
Municipal Daniel Field Government Tennis Totals
Golf Course Transit Airport House Center 1997 1996
I $115,661 $(2,222,399) $(41,528) $( 16,828) $(44,455) $ 9,900,942 $ 10,045,802
I 718 595,112 10,590 7,252,408 6,719,800
61,689
50,000
I ( 1,223) ( 7,416) 131,748 272,560
( 217,062) ( 537,044) 82,179
(17,829) 3,729 (109,475) ( 2,337) 5,707)
I ( 4,435) ( 4,435) 500)
145,286
332,997 637,100
I ( 64) ( 27,432) 185,205 ( 2,327) 4,124 227,504) 697,164)
5,212 49,485 (11,011) ( 3,422) 4,658 175,328 415,318
(10,258) 511,282 96,230 ( 3,196,322) ( 3,454,957)
6,600 ( 700)
I 850.374 431.376
92,217 (1.318.430) 131.960 ( 25.232) (35.673) 14.682.755 14.702.082
I 9,525 22,391 2,476,025 348,791
97,263 9,818,007 1,713,739
I (13.360) 1.246.874 15,958 20,915 ( 4.359.464) ( 7,824.401)
( 3,835) 1.344.137 15,958 43.306 7,934.568 ( 5.761.871)
I (14,280) ( 229,989) (79,886) ( 4,652) (11,122,201) (21,769,814)
( 1,080,000) ( 2,320,000)
( 250,898) ( 506,967)
I ( 318,964) ( 356,715)
5,779,147 64,980,940
( 114,449) ( 1,038,308)
( 6,760,198) (24,272,017)
I 5,432,033
( 3,132,519) ( 2,766,708)
205.432 1.209.576 2.154.008
I (] 4.280) ( 24.557) (79,886) 4.652) (]5,790.506) 19.536.452
I 7,595 9,563 342,096 888,689
73.104) 1.076.856)
7.595 9.563 268.992 ( 188.167)
I 81,697 1,150 61,637 ( 13,926) 7,633 7,095,809 28,288,496
46.539 271.996 13.926 53.369.821 25.081.325
$128.236 $ 1.150 $333.633 $ $ 7.633 $ 60.465.630 $ 53.369.821
I 100
I
Internal Service Funds
I
I
I
I
Internal service funds are used to account for goods or services provided by a central service department or agency to
other departments, agencies, or component units of the governmental unit, or to other unrelated governmental units,
usually on a cost reimbursement basis.
I
Risk Mana!.!:ement Fund - This fund accounts for the receipt and disbursement of worker's compensation claims,
settlement exposure and damage expense claims, unemployment benefits, commercial insurance premiums, bond on
certain employees and elected officials and employee insurance benefits for health and dental claims.
I
Fleet Operations Fund - This fund accounts for the operation and maintenance of County vehicles. The Fund bills other
County funds at amounts that will approximately recover all the cost of the services provided.
I
Central Services Fund - This fund accounts for maintenance and printing services provided to other County funds. The
Fund bills other County funds at amounts that will approximately recover all the cost of the services provided.
I
I
I
I
I
I
I
I
I
I
I
102
104
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Internal Service Funds
Combining Statement of Reyenues, Expenses and
Changes in Retained Earnings (Deficits)
Year Ended December 31,1997
Risk Fleet Central Totals
Management Operations Services 1997 1996
OPERA TING REVENUES
Charges and fees $ 7,296,985 $3,664,351 $ $10,961,336 $ 9.873,854
Other revenue ] 53.869
Total operating revenues 7.296.985 3.664.351 10.961.336 10.027.723
OPERATING EXPENSES
Personal services 201,843 201,843 1,466,263
Utilities and telephone 3,201 1 02,272 105,473
Maintenance and repairs 3,010 9,090 12,100
Materials and supplies 4,627 43 4,670 4,060,883
Professional services 137,781 3,661,151 3,798,932
Other 202,456 222 7 202,685 1,139,034
Depreciation 5,293 15,979 33,345 54,617 56,160
Risk benefit charges 12,199.202 12.199,202 5.529.560
Total operating expenses 12.757.413 3.788.757 33,352 16.579.522 12.251.900
Operating income (loss) (5,460,428) ( 124,406) ( 33,352) (5,618,186) (2,224,177)
NONOPERA TING REVENUES (EXPENSES)
Interest revenue 121,668
Other revenue 1,750 1,750
Interest expense ( ]7.] 11) 51.166) 68.277) ( 49,1 00)
Income (loss) before operating
transfers (5,477,539) ( 173,822) ( 33,352) (5,684,713) (2,151,609)
Operating transfers in 4,343,253 4,343,253 1,3]1,553
Operating transfers out ( 2.264 ) ( 76.955) ( 79.219) ( 97.801)
Net income (loss) (1,134,286) ( 176,086) (I ] 0,307) (1,420,679) ( 937,857)
Retained earnings, beginning of year 1,637,304 109,078 110,300 1,856,682 2,889,463
Residual equity transfer 94.924)
Retained earnings (deficits), end of year $ 503.0]8 $( 67.008) $( 7) $ 436.003 $ 1.856.682
See notes to financial statements.
I
106
I
I
I
I
Trust and Agency Funds
I
Fiduciary funds are used to account for assets when a governmental unit is functioning either as a trustee or as an agent
for another party. Because the County is functioning in a fiduciary capacity, the authority to employ, dispose of, or
otherwise use the assets is not determined by a legislative body or oversight board, but by the public laws and private
agreements that created the trustee or agency relationship.
I
I
Agency Funds - An agency fund is created to act as custodian for other funds, governmental units, or private entities.
Assets are recorded by the agency fund, held for a period of time as determined by legal contract or circumstances, and
then returned to their owners. The County utilizes agency funds to account for the following:
I
Tax Commissioner - This fund accounts for tax billings, collections and remittances made by the Tax Commissioner
on behalf of the County and other governmental agencies.
I
Probate Judge -This fund accounts for the receipt and disbursement of licenses and other fees collected by the Probate
Judge.
I
Sheriffs Department - This fund accounts for the receipt and disbursement of funds collected by the department from
individuals posting bond.
I
Civil Court - This fund accounts for the receipt and disbursement of court-ordered fmes, fees and garnishments made
on behalf of third parties and traffic violation fmes.
Clerk of Court - This fund accounts for the receipt and disbursement of court-ordered fines and fees made on behalf
of third parties.
I
Municipal Court - This fund accounts for receipt and disbursement of funds collected by the Municipal Court.
I
Deferred Compensation - This fund accounts for monies voluntarily deducted from employee's pay checks which is then
invested for the employee's future use.
I
Expendable Trust Funds - Those trust funds whose principal and income may be expended in the course of their
designated operations so that they are depleted by the end of their designated life. An expendable trust fund is
accounted for in the same manner as governmental funds.
I
Joseph R. Lamar Fund - This fund accounts for the receipt of investment earnings from the Joseph R. Lamar Principal
Fund and payment of the annual award.
I
Perpetual Care Fund - This fund accounts for monies collected from sale of perpetual care contracts at County-owned
cemeteries after October 1, 1970, as well as receipt of investment earnings on all perpetual care investments and
payment of cemetery maintenance expenditures.
I
Nonexpendable Trust Funds - Trust funds that allow the earnings to be used to achieve the objectives of the fund, but
require that the principal be preserved intact. A nonexpendable trust fund is accounted for in essentially the same
manner as a proprietary fund.
I
Joseph R. Lamar Fund - This fund accounts for monies provided by a private donor to finance awards for children
attending Joseph R. Lamar School. The principal amount ofthe gift is to be maintained intact and invested. Investment
earnings are used for the awards.
I
108
I
I
Perpetual Care Fund - This fund accounts for monies collected from the sale of perpetual care contracts at County-
owned cemeteries before October I, 1970. The principal must be maintained intact and invested. Investment earnings
are used for cemetery maintenance.
I
Pension Trust Funds - Pension trust funds account for the assets of the County's employees' retirement plans.
I
1945 Pension Trust Fund - This fund accounts for the accumulation of resources to be used for retirement annuity
payments to participants of the 1945 Plan at appropriate amounts and times in the future. Resources are contributed
by the County at amounts determined using actuarial assumptions and calculations. Resources contributed by employees
are based on a percentage of an individual's gross salary.
I
1977 Pension Trust Fund - This fund accounts for the accumulation of resources to be used for retirement annuity
payments to participants of the 1977 Plan at appropriate amounts and times in the future. Resources are contributed
by the County at amounts determined using actuarial assumptions and calculations. Resources contributed by employees
are based on a percentage of an indiyidual's gross salary.
I
I
General Retirement Fund - This fund accounts for contributions to the County's pension plan that are to be used for
retirement payments at appropriate amounts and times in the future.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Expendable Trust Funds Nonexpendable Trust Funds Pension Trust Funds
Joseph R. Perpetual Joseph R. Perpetual 1945 1977 General Totals
Lamar Care Lamar Care Plan Plan Retirement 1997 1996
$ $511,334 $5,175 $338,625 $ 586,336 $2,030,404 $ 2,395.878 $ 8,982.206 $ 7.794.261
12,603,665 6,202,242 63,764,178 82,570.085 64.764.143
8,895,00 I 7.075,227
8,327 8,327 128.696
800,000
3,082 3,596 6,678
5,179,085 4.455,084
975,095 975,095 975,095
- - 700.000 1.115.361 287.127
- -
$ $519.661 $5,175 $338.625 $13.893.083 $8.236.242 $67.135.151 $107.731.838 $86.279.633
I
I
$ $ 320 $ $ $ $ $ 4,438 $ 4,758 $ 7.086
2,735,863 3,064,407
175 181,774 738,831 1,714,732 500,193
8,895,00 I 7.075,227
- - - 5.179.085 4.455.084
- - -
175 320 - - 181.774 743.269 18.529.439 15.101.997
- -
175) 519,341 5,175 338,625 862.966 798.745
66,391,882 66,391,882 70.378,891
- - 13.711.309 8.236.242 21.947.551
- -
175) 519.341 5.175 338.625.. 13.711.309 8.236.242 66.391.882 89.202.399 71.177.636
$ $519.661 $5.175 $338.625 $13.893.083 $8.236.242 $67.135.151 $107.731.838 $86.279.633
I
I
I
I
I
I
I
I
I
110
112
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Agency Funds
Combining Statement of Changes in Assets and Liabilities - Continued
Year Ended December 31,1997
See notes to fmancial statements.
I
I
I
I
I
I
I
I
I
I-
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Expendable Trust Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit)
Year Ended December 31,1997
Joseph R. Perpetual Totals
Lamar Care 1997 1996
REVENUES
Interest $ $ 25,173 $ 25.173 $ 21.594
Other 870 870 5.950
Total revenues 26.043 26.043 27.544
EXPENDITURES
Operating supplies and materials 11,288 11,288 33,168
Other 175 175 598
Total expenditures 175 11.288 11.463 33.766
Excess of revenues over (under)
expenditures ( 175) 14,755 14,580 ( 6,222)
OTHER FINANCING SOURCES
Operating transfers in 34.948 34.948 23.203
Excess of revenues over (under)
expenditures and other financing sources 175) 49,703 49,528 16,981
Fund balances, beginning of year, as previously
reported 455,120 455,120 438,139
Prior period adjustment 14.518 14.518
Fund balances, beginning of year, restated 469.638 469.638 438.139
Fund balances (deficit), end of year $( 175) $519,341 $519.166 $455.120
See notes to fmancial statements.
114
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
Pension Trust Funds
Combining Statement of Revenues, Expenses and
Changes in Fund Balances
Year Ended December 31,1997
1945 1977 General Totals
Plan Plan Retirement 1997 1996
OPERA TING REVENUES
Contributions $ 6,954 $1,549,642 $ 330,992 $ 1,887,588 $ 1,138,426
Interest 2,147,736 955,444 10,068,362 13,171,542 7,361,278
Other 9.819
Total revenues 2.154.690 2.505.086 10.399.354 15.059.130 8.509.523
OPERATING EXPENSES
Administration 171,704 77,358 480,101 729,163 612,653
Benefit payments 824,672 279,593 3,681,248 4,785,513 2,662,294
Refunds 1.383 102.723 32.585 136.691 198.258
Total operating expenses 997.759 459.674 4.193 .934 5.651.367 3.473.205
Operating income 1,156,931 2,045,412 6,205,420 9,407,763 5,036,318
Operating transfers in 947,525 947,525
Operating. transfers out ] 40.928) 60.147) ( 83.620) 284.695) 38.799)
Net income 1.0] 6.003 1.985.265 7.069.325 ] 0,070.593 4.997.519
Fund balances, beginning of year,
as previously reported 12,695,306 6,250,977 51,432,608 70,378,891 65,381,372
- --Prior period adjustment 7 .889.949 7.889.949
Fund balances, beginning of year, restated 12.695,306 6.250.977 59,322.557 78.268.840 65.381.372
Fund balances, end of year $13.711.309 $8.236.242 $66.391.882 $88.339.433 $70.378.891
See notes to fmancial statements.
116
118
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Compliance Section
I
120
I
I
I
I
INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
I
I
To the Board of Commissioners
Augusta-Richmond County
Augusta-Richmond County, Georgia
I
We have audited the general-purpose financial statements of Augusta-Richmond County, Georgia, as of and for the year
ended December 31, 1997, and have issued our report thereon dated June 12, 1998. These general-purpose financial
statements are the responsibility ofthe Augusta-Richmond County's management. Our responsibility is to express an
opinion on these general-purpose fmancial statements based on our audit.
I
I
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures used and significant estimates made by management, as well as evaluating the oyerall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
I
I
In our opinion, the general-purpose fmancial statements referred to above present fairly, in all material respects, the
fmancial position of Augusta-Richmond County, Georgia, as of December 31, 1997, and the results of its operations
and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity
with generally accepted accounting principles.
I
In accordance with Government Auditing Standards, we have also issued our report dated June 12, 1998 on our
consideration of Augusta-Richmond County's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grants.
I
Our audit was conducted for the purpose offorming an opinion on the general-purpose financial statements of Augusta-
Richmond County, Georgia taken as a whole. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133,
Audits of States. Local Governments. and Non-Profit Organizations, and is not a required part of the general-purpose
financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-
purpose fmancial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general-
purpose fmancial statements taken as a whole.
I
I
I
~ ,~.J-7~, l.l.P.
I
Augusta, Georgia
June 12, 1998
I
I
122
I
AUGUSTA-RICHMOND COUNTY, GEORGIA
I
Summary Schedule of Prior Audit Findings
I
Year Ended December 31,1997
U. S. Department of Housing and Urban Development
I
Condition: During 1996, the U. S. Department of Housing and Urban Development issued a rnonitoring report with
several fmdings.
I
Current Status: Corrective action on the above findings was taken.
I
U. S. Department of Transportation Federal Aviation Administration
(Findings related to audit-performed by the Office of the Inspector General)
FINDING A:
Need to Restrict the Use of Airport-Generated Revenue to Airport Related Purposes
I
Condition.' During 1996, the Office of the Inspector General (the "OIG") audited the County due to a prior year
diversion of airport funds by the former City of Augusta. As a result of the audit, a general fund payable and its
corresponding airport receivable was recorded in the current consolidated general fund of Augusta-Richmond County
(the "County").
I
I
Recommendations:
la. The auditor recommended the County reimburse the airport fund for $1,868,660 for expenditures prohibited
for non-airport use.
1 b. The auditor recommended the County reimburse the airport bond sinking fund $274,881 plus interest for
transfers made from the bond sinking fund in violation of Federal guidelines and bond restrictions.
1 c. The auditor recommended the County remoye outstanding charges in the amount of $619,702 charged to the
airport fund for items related to acquisition of land for non-airport related purposes.
2. The auditor recommended the County provide airport management with an invoice for all remaining
outstanding unreimbursed charges that can be supported with documentation and to schedule regular meetings
between the County and the airport fmance divisions to prevent future financial disputes.
3. The auditor recommended the County monitor transactions between the County and the Airport by reviewing
airport fmancial reports required to be submitted annually to the Federal Aviation Administration (the "FAA ").
4. The auditor recommended the County develop an indirect cost allocation plan consistent with FAA policy
(OMB A-87) and assure that cost for duplicative functions are excluded.
I
I
I
I
Current Status:
I a. Corrective action was taken.
1 b. Corrective action was taken.
I c. Corrective action was taken.
2. As recommended, the County has billed the Airport for all outstanding unreimbursed charges through 1996
and was subsequently paid by the Airport. However, the County has failed to comply with the recommendation
of scheduling regular meetings to reconcile charges to the Airport. There have been several "irregular"
meetings in an attempt to reconcile costs. It has also been noted that certain 1995 charges which were
disallowed by the OIG remain payable to the County. Also, during 1997, certain amounts have been charged
to the Airport which represent ineligible charges based on their nature. The amount of charges from 1995 to
1997 which are ineligible is $167,073. In addition to this amount, other amounts have been charged to the
Airport of which an amount cannot be determined as ineligible at this time.
3. Corrective action was taken.
4. The County has implemented an indirect cost allocation plan consistent with FAA policy, however, certain
costs being charged to the Airport have not been included in the cost allocation plan. This resulted in ineligible
charges as indicated in item 2.
I
I
I
I
I
124
I
RT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNT ANTS ON
COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
I
I
I
I
I
To the Board of Commissioners
Augusta-Richmond County
Augusta-Richmond County, Georgia
I
We have audited the financial statements of Augusta-Richmond County as of and for the year ended December 31,
1997, and have issued our report thereon dated June 12, 1998. We conducted our audit in accordance with generally
accepted auditing standards and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
I
Compliance
As part of obtaining reasonable assurance about whether Augusta-Richmond County's financial statements are free of
material misstatement, we performed tests of its compliance with certain proyisions oflaws, regulations, contracts and
grants, noncompliance with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that
are required to be reported under Government Auditing Standards.
I
I
I
Internal Control over Financial Reporting
In planning and performing our audit, we considered Augusta-Richmond County's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial
statements and not to provide assurance on the internal control over financial reporting. Our consideration of the
internal control over fmancial reporting would not necessarily disclose all matters in the internal control over fmancial
reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of
one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the financial statements being audited may occur and not be detected within
a timely period by employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over financial reporting and its operation we consider to be material weaknesses.
I
I
I
This report is intended for the information of the audit committee, management and federal awarding agencies and pass-
through entities. However, this report is a matter of public record and its distribution is not limited.
I
C/u; I~.J- 7~/L.L.P.
I
Augusta, Georgia
June 12, 1998
I
I
I
I
126
I
I
This report is intended for the information ofthe audit committee, management and federal awarding agencies and pass-
through entities. However, this report is a matter of public record and its distribution is not limited.
I
~ I ~ "j 7~1 L.L.I'.
I
Augusta, Georgia
June 12, 1998
I
I
I
I
I
I
I
I
I
I
I
I
I
I