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HomeMy WebLinkAboutFINANCIAL STATEMENT FOR YEAR ENDING DECEMBER 2003 I I -I I I I AUGUSTA-RICHMOND COUNTY, GEORGIA Annual Financial Report- Year Ended December 31,2003 Table of Contents INTRODUCTORY SECTION TRANSMITTAL LETTER LISTING OF ELECTED AND APPOINTED OFFICIAL FINANCIAL SECTION I I I- I REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: I I I I I I Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Fire Protection Fund Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds I I I Statement of Fiduciary Net Assets - Fiduciary Funds Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements Page i-vii viii - ix 1-2 4 - 16 21 22-23 26-27 29 30-31 33 34 35 36 37 38 - 39 40 41 45 - 77 AUGUSTA-RICHMOND COUNTY, GEORGIA Annual Financial Report Year Ended December 31, 2003 Table of Contents (continued) REQUIRED SUPPLEMENTARY INFORMATION Pension Plans- Required Supplementary Information - Schedules of Funding Progress Pension Plans - Required Supplementary Information - Schedules of Employer Contributions and Notes to Required Schedules COMBINING AND INDIVIDUAL FUND STATEMENTS NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual- Nonmajor Special Revenue Funds Urban Services District Fund EmergencyTelephone System Fund Capital Outlay Fund Law Enforcement Fund Occupation Tax Fund Special Assessment Fund PromotionITourism Fund Housing and Neighborhood Development Fund Urban Development Action Grant Fund Federal Drug Fund State Drug Fund Downtown Development Authority Fund Law Library Fund 5% Victim's Crime Assistance Fund Supplemental Juvenile Service Fund Weed and Seed Federal Grant Fund Wireless Phase Fund Community Greenspace Fund Perpetual Care - I Fund Landbank Authority Fund Combining Balance Sheet - Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds Page lJ 1--: (1 I-j Ij Il 1-; 1-] 11 Ij 79 - 80 81 - 83 88 - 89 90 - 91 92 - 95 96 - 99 100 101 102 103 104 105 106 107 108 109 IIO III II2 II3 II4 II5 II6 II7 II8 II9 I) 120 IJ I; I: I: I~ I: I' I 121 ,I -, ,I :1 ,I ,I ;1 AUGUSTA-RICHMOND COUNTY, GEORGIA Annual Financial Report Year Ended December 31,2003 Table of Contents (continued) Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual- Nonmajor Debt Service Fund,s Debt Service Fund Urban Debt Service Combining Balance Sheet - Nonmajor Capital Project Funds Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Capital Project Funds ,I ,I ,I :1 , 11 , ,I II ;1 :1 ,I NONMAJORENTERPRISEFUNDS Combining Statement of Net Assets - Nonmajor Enterprise Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets- Nonmajor Enterprise Funds Combining Statement of Cash Flows - Nonmajor Enterprise Funds <, INTERNAL SERVICE FUNDS Combining Statement of Net Assets - Internal Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets- Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds FIDUCIARY FUNDS Combining Statement of Fiduciary Net Assets - Pension Trust Funds _ Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds COMPLIANCE SECTION Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards _ Summary Schedule of Prior Audit Findings I I I Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-B3 Schedule of Findings and Questioned Costs Page 122 123 124 125 128 - 129 130 - 131 132 - 135 138 - 139 140 - 141 142 - 145 150 151 154 - 155 158 - 159 160 161- 162 163 164 - 165 166 - 168 I I I I I I I I I ,I 1 I 1 I I I I I I FINANCE DEPARTMENT DAVID PERSAUD, MPA; CGFM, CPE, FINANCE DIRECTOR Room 207 - Municipal Building 530 Greene Street - AUGUSTA, GA 30911 (706) 821-2429 - FAX (706) 821-2520 www.augustaga.gov June 1, 2004 The Honorable Mayor Bob Young Members ofthe Augusta-Richmond County Commission Augusta, Georgia 30911 State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, is hereby submitted the annual financial report of Augusta, Georgia for the fiscal year ended December 31,2003. This report consists of management's representations concerning the finances of Augusta, Georgia., Consequently, management assumes full responsibility for th~ completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of Augusta, Georgia has established a .comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of Augusta, Georgia financial statement in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Augusta, Georgia comprehensive framework' of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, I assert that, to the best of my knowledge and belief, this financial report is complete and reliable in all material respects. Augusta, Georgia financial statements have been audited by Cherry Bekaert & Holland, L.L.P., a firm oflicensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of Augusta, Georgia for the fiscal year ended December 31, 2003 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering unqualified opinions that Augusta, Georgia's financial statements for the fiscal year ended December 31, 2003, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. The independent audit of the financial statements of Augusta, Georgia was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are included in Augusta, Georgia's Single Audit section of this report. II IJ Ii I~ I) Ij I] I) GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Augusta, Georgia MD&A can be found immediately following the report of the independent auditors. Profile of the Government Augusta is located in the east central section of the state on the south bank of the Savannah River, which serves as the boundary between Georgia and South Carolina. Augusta is on the fall line and has landscape dotted with. foothills which descend to the coastal plain. Augusta is the head of the navigation on the Savannah River and is 135 miles east of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles southwest of Columbia, South Carolina. Augusta is the trade center for 13 counties in Georgia and five in South Carolina, a section known as the Central Savannah River Area. 11 Ij The Government was created by legislative act in the Sate of Georgia in 1995 from the unification of the two governments, the City of Augusta, Georgia and Richmond County, Georgia. On June 20, 1995, the citizens of Richmond County and the City of Augusta voted to consolidate into one government named Augusta, Georgia. The officials for the new government were elected and, based on the charter, took office on January 1, 1996. The unified government combined all functions and began financial operations January 1, 1996. r--~l IJ 11 , I Ij I; IJ I; I; I: I; I The Government is governed by a full-time Mayor, with a term of four years, and a ten member Commission, who serve on a part-time basis and are elected to staggered terms of four years. The Mayor and Commission appoint an Administrator who serves as a full-time administrative officer and is responsible for the daily operations of ~e Government. Augusta provides a full range of services, including public safety and fire protection; the construction and maintenance of highways, streets, and other infrastructure; recreational activities and cultural events. Sanitation services, water and sewer services, transportation services and other administrative and governmental services are also provided by the Consolidated Government. Augusta also is financially accountable for the legally separate Richmond County Department of Health which is reported separately within I 1 I I I 1 I 1 1 I I I I 1 I 1 I I 1 Augusta's financial statements. Additional information on this legally separate entity can be found in Note lB. in the notes to the financial statements. The annual budget serves as the foundation for Augusta's financial planning and control. All agencies of Augusta are required to submit requests for appropriation to the government's administration before the month of July each year. The government's Administrator uses these requests as the starting point for developing a proposed budget. The government's Administrator then presents this proposed budget to the Commission for review prior to October 31. The Commission is required to hold public hearings on the proposed budget and to adopt a final budget by no later than December 31, the close of Augusta's fiscal year. The appropriated budget is prepared by fund, function (e.g. Public Safety), and department (Sheriff Road Patrol). Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the governing commission. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report. Also included in the governmental fund subsection are project- length budget-to-actual comparisons for each governmental fund for which a project- length budget has been adopted. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which Augusta operates. Local economy. Augusta, located in the heart of the Southeast, is Georgia's second largest and second oldest city. The According to the magazine "Where to Retire", Augusta is ranked number four among the nation's low-cost cities for retirement. This is partially based on a variety of factors including cost of living, transportation, higher education, job outlook, health care, the arts, recreation and climate. Bolstered by nearly half a million residents, the area's economy as a whole is much like that of its health care sector: clean, high tech and well supplied with skilled workers. In addition to a strong sense of history and related attractions, the city offers a rich variety of sophisticated amenities including a vibrant arts community and a wealth of fine restaurants. The Augusta's Southern hospitality is evident from the temperate climate to the year- round greenery that reminds residents and visitors alike of Augusta's designation as the Garden City. III The MSA has a strong, stable economy, composed of (1) an extensive base of manufacturers; (2) a core of technology-based employers; and (3) an expanding service sector. (I 11 11 The diverse industrial base includes production of medical products, phannaceuticals, golf carts, chemicals, industrial tools, textiles among others. Ij 11 I; 11 I] 11 Health care, a technology-based employer in the region, employs more than 25,000 medical professionals. The Medical College of Georgia (MCG) is ranked as one of the top 20 medical schools in the nation and is Georgia's Health Sciences University. MCG has schools of Dentistry, Allied Health Sciences, Nursing and Graduate studies, as well as Medicine. A pioneer in telemedicine, MCG has received national recognition for its efforts in this field. MCG serves patients from all over the southeast, with over 80 clinics centrally located within one building. More than a dozen other major medical facilities are located in the region. The U.S. Army Signal Center and Fort Gordon, the largest communications electronics training center in the world, rounds out Augusta's technology-based economy. The center has advanced communications technology, adapting the telephone to military usage by incorporating satellite communications and computer technology. In addition, Fort Gordon is home to the Army's Computer Science School and home to a joint services intelligence organization that supports the Department of Defense. The teaching facilities at Eisenhower Army Medical Center (EAMC) serve as a regional tri- service medical center serving 5 southeastern states and Puerto Rico. 11 IV 11 I) 11 I' I: I, I,: 1 1 At the center of the technology-based employers is the Savannah River Site (SRS), a U.S. Department of Energy (DOE) facility, which comprises a majority of the MSA's economy with over 13,000 employees. The Site's mission is to reduce nuclear danger by transferring applied environmental technology to government and non-government entities cleaning up the site, managing the waste and forming economic and industrial alliances. SRS has a significant economic impact across the two states, affecting more than a dozen counties. The current annual budget of SRS is $1.6 billion, including a payroll of approximately $900 million. Westinghouse Savannah River Company (WSRC) is responsible for the day-to-day operations of the nuclear facility. Other major contractors on the site include Bechtel Savannah River Inc., Babcock & Wilcox Group (B & W Savannah River Company) and British Nuclear Fuels Limited (BNFL Savannah River Company). The economic outlook is sound, with moderate employment gains expected over the short term. The Augusta economy is expected to continue to benefit from a diverse economic base and strategic location in the southeast region. :1 I ,I ,I 1 ,I ,I ,I ,I I ;1 ,I ,I I .1 .1 ..1 ~I I ) Long-term financial planning. The governing commission approved the fiscal year 2004 budget totaling $582 million with emphasis on controlling the cost of government services. The budget will provide the level of services in fiscal year 2004 consistent with fiscal year 2003. More emphasis will be placed on managing for results by utilizing a program performance basis of budgeting in fiscal year 2004. This is a departure from the previous years line-item budgeting approach. The concept of program-performance budgeting will provide department managers with an opportunity to establish program goals and objectives and develop relative performance measures to measure program performance and results. During fiscal year 2003 the Finance Department revised the comprehensive five year 2004-2008 capital improvements program budget totaling over $300 million. This long- term fiscal plan is a strategic planning document consisting of an evaluation of all the capital and infrastructure needs and capital improvements necessary to allow the government to plan for capital assets acquisition and replacement for the next five years. The Special Purpose Local Option Sales Tax (SPLOST) for the current period 2001-2005 will generate an estimated $160 million for capital projects. This dedicated one cent sales tax provides the government with a method of funding essential on-going capital projects and provide funds for major capital needs. Discussions are in place to extend the SPLOST over the next ten years period 2006-2015 for $320 million. The government is planning a $160 million issuance of water and sewerage revenue bonds in the summer of 2004. The proceeds of the bonds will be used to fund the costs of making additions, extensions and improvements to the consolidated government's water and sewer system. The Augusta Utilities Department owns and operates the water treatment distribution facilities as well as the waste water conveyance and treatment facilities. The current water system serves over 59,210 residential customers and 6653 commercial and industrial customers. The service area encompasses approximately 210 square miles serving an estimated population in excess of 180,000. Water is supplied by the Savannah River and supplemented by ground water wells through out the county. The current waste water system serves approximately 44,801 residential and 5074 commercial and industrial customers. The service area encompasses 106 square miles with an estimated population of 150,683. Cash management policies and practices. Cash temporarily idle during the year was invested in certificates of deposit and the State Treasurer's investment pool. The maturities of the investments range form 30 days to 2 years, with an average maturity of 12 months. The average yield on investments was 1.12 percent for the government and an average yield of 12.9 percent for the pension trust fund defined benefit plans. The rate of return for the pension trust fund is attributable to the long-term character of most of its investment holdings and the dismal year for the U.S. equity investors. Investment v VI --) Il Ii I: Ij I; --: I-j I] IJ IJ Ii 1.1 I; I: I, I~ I~ I, income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. Risk management. In 2003, the Risk Management program was transferred from the Human Resources Department to the Finance Department. During 2003, Risk Management continued to provide annual training to the employees of Augusta Government in the areas of safety, substance abuse awareness, substance abuse policy changes, emergency evacuation procedures and new hire orientation. In additional to these established training areas, driver training education was introduced in 2003. In addition, various control techniques; including employee accident prevention training have been implemented during the year to minimize accident-related losses. Other areas where Risk Management has implemented successful training proposals during 2003 are monthly safety training, 12 sessions was held by Risk Management for department safety officers on policies, procedures and general safety. Substance abuse training was provided for an estimated 2600 employees. Inspections by risk Management included 201 vehicle inspections, 98 playground inspections, 52 worksite inspections, 2 ergonomic assessments and 162 safety interviews with injured employees. In the claims administration area, Risk Management handled 40 general liability claims, 275 auto accidents (142 liability claims), 460 workers compensation claims (295 medical only and 37 lost time), 138 complaints (42 from Augusta Cares). In addition to the training programs, other loss control initiatives included the continuation of the purchase and installation of video cameras in the Sheriffs Office patrol vehicle which is going since 1995. Fleet Management: The Fleet maintenance services are accounted for in an Internal Service Fund with monthly allocations to all user departments. Contract maintenance represented 56% of all costs, non-contract maintenance represented 11 %, fuel represented 27% and fleet operating costs represented 6% of the total expenses. Maintenance service was provided by First Vehicle Services. In 2003, 12,105 work orders were completed at a cost of each work order at $313. In 2002 the average cost per work order was $300. This is an increase per work order of $13. The lease payments to the Georgia Municipal Association for vehicles and equipment of all funds remain relatively constant from year to year. Fleet Management's goals for 2004 are to continue to provide quality repairs at the lowest cost. Specific Goals include: (1) Improve maintenance facilities, (2) Implement audit and inspection processes to ensure accountability of parts and parts costs, proper invoicing for all non-contract cost repairs and (3) provide more accurate budget data to user departments for budget preparation. I I I I I I I I I I I I I I I I I I -I Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. I would like to express my appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and the governing commission for their unfailing support for maintaining the highest standards of professionalism in the management of Augusta's finances. Respectfully submitted, Qdiers Finance lrector Vll Bobby Hankerson - District Five 3312 Balkcom Drive Augusta, Georgia 30906 (706) 790-9199 (Home/Bus) (706) 821-1838 (Fax) Andy Cheek - District Six 2129 Howard Road Augusta, Georgia 30906 (706) 796-0078 (Home) (706) 796-8970 (Fax) (J 11 11 I-j Il 11 1~1 I-j 11 11 I~] IJ I] Elected Officials - December 31st, 2003 Mayor Bob Young One Seventh St., Suite 1801 Augusta, Georgia 30909 738-5575 (Home) 821-1831 (Office) Lee Beard - District One One-Seventh St., Ste.1703 River Place Condos Augusta, Georgia 30901 (706) 724-0916 (Home) (706) 832-8331 (Message Ctr) Marion Williams - District Two 1941 Kratha Drive Augusta, Georgia 30906 (706) 733-2128 (Home) (706) 821-1838 (Fax) Steve Shepard - District Three 701 Greene Street Augusta, Georgia 30901 (706) 736-8884 (Home) (706) 722-4817 (Fax) Richard Colclough - District Four Mayor Pro-Tempore 3508 Monte Carlo Dr. Augusta, Georgia 30906 (706) 821-1823 (Bus) (706) 821-1838 (Fax) Tommy Boyles - District Seven 2711 Boar's Head Drive Augusta, Georgia 30907 (706) 863-5249 (Home) (706) 821-1838 (Fax) Ulmer Bridges - District Eight P.O. Box 684 Hephzibah, Georgia 30815 (706) 592-5535 (Home) (706) 821-1838 (Fax) William Mays, 111- District Nine 1221 James Brown Blvd. Augusta, Georgia 30903 (706) 722-6401 (Bus) (706) 722-7018 (Fax) Bill Kuhlke - District Ten 10 Indian Creek Road Augusta, Georgia 30909 (706) 733-8863 (Home) (706) 228-5526 (Fax) 11 AUGUSTA, GEORGIA - 2004 BUDGET I~ IJ I: I, I: - ,I ,I I ,I I ;1 ,I :1 :1 'I ,I :1 ,I ;1 :1 I I ~:I --I -r-~ Appointed Officials - December 31st, 2003 George R. Kolb Administrator 530 Greene Street - Rm 801 Augusta, Georgia 30911 (706) 821-2400 (706) 821-2819 (Fax) Frederick L.Russell Deputy Administrator 530 Greene Street - Rm 801 Augusta, Georgia 30911 (706) 821-2400 (706) 821-2819 (Fax) Walter S. Hornsby, III Deputy Administrator 530 Greene Street - Rm 801 Augusta, Georgia 30911 (706) 821-2400 (706) 821-2819 (Fax) Lena Bonner Clerk of Commission 530 Greene Street - Rm 806 Augusta, Georgia 30911 (706) 821-1820 (706) 821-1838 (Fax) David Persaud Finance Director 530 Greene Street - Rm 207 Augusta, Georgia 30911 (706) 821-2429 (706) 821-2502 (Fax) Jim Wall County Attorney 454 Greene Street Augusta, Georgia 30903 (706) 722-2488 (706) 722-5984 (Fax) AUGUSTA, GEORGIA - 2004 BUDGET - ,I ,I ,I :1 il 'I I ,I 1 ,I ;1 JI 1 ,I ;1 ,I ,I ~I --I AUGUSTA, GEORGIA ANNUAL FINANCIAL REPORT _ For the Fiscal Year ended December 31,2003 ,I ,I ,I ,I I ,I ,I ,I ,I ,I 1 I ,I cl ,I ,I I ~I -I -. . . ~ . . . CERTIFIED PUBLIC ACCOUNTAt\TS & CONSULTANTS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Augusta-Richmond County Commissioners Augusta, Georgia We have audited the accompanying fmancial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Augusta, Georgia as of December 31, 2003 and for the year then ended, which collectively comprise Augusta's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Augusta, Georgia management. Our responsibility is to express opinions on these basic fmancial statements based on our audit. We did not audit the fmancial statements of the Augusta-Richmond County Department of Health. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates' to the amounts included for the Department of Health, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial 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 basic fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinions. In our opinion, based upon our audit and the report of other auditors, the basic financial statements referred to above present fairly, in all material respects, the respective fmancial position of the governmental activities, the business- type activities, each major fund and the aggregate remaining fund information of Augusta, Georgia, as of December 31, 2003, and the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparison for the general fund and fire protection fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Management's Discussion and Analysis and the schedules of funding progress and employer contributions are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit this information and express no opinion thereon. In accordance with Government Auditing Standards, we have also issued our report dated May 21, 2004 on our consideration of Augusta-Richmond County's internal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming opinions on the basic financial statements of Augusta, Georgia, taken as a whole. The combining and individual fund statements and the accompanying schedule of expenditures of Federal awards as required by u.s. Office of Management and Budget Circular A-I33, Audits of States, Local Governments and Non-Profit Organizations for the year ended December 31, 2003, are presented for purposes of additional analysis and are not a required part of the basic fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. ~,~.,.. 7~l."1' Augusta, Georgia May 21, 2004 2 r 1- r I-~' 1'- I I 1- 1-' I: I~ I'," 10 I, I; I~ I~ I I' Financial Highlights I) II 1111 I r-l IJ 11 I] Management's Discussion & Analysis The Management's Discussion and Analysis of the Comprehensive Annual Financial Report (CAFR) of Augusta-Richmond County, Georgia (the "Government") provides an overall narrative and analysis of the Government's [mandai statements for the fiscal year ended December 31, 2003. This discussion and analysis is designed to look at the Government's financial performance as a whole. Readers should also review the additional information provided in the transmittal letter, which can be found preceding this narrative, and the complete financial statements, with notes, which follow this narrative, to enhance their understanding of the Government's [mancial performance. Key financial highlights for the year ended December 31, 2003 are as follows: . The Government's combined net assets totaled $358 million. Ii 1'1 . The Government's total net assets increased by $25 million, primarily due to capital spending funded by the Special Purpose Local Option Sales Tax revenues and other tax revenues. . Combined Revenue totaled $255 million, of which governmental activities totaled $175 million and business-type activities totaled $80 million. Current year revenues increased less than 2% from those ofthe prior year. I] Ii 11 11 II . As of the close of the current fiscal year, the Govenunent's governmental funds reported combined ending fund balances of $176 million, an increase of $11 million from the prior year. Approximately 60% of this total amount, or $106 million, is available for spending at the government's discretion (unreservedfund balance). . At the end of the current fiscal year, unreserved fund balance for the General Fund was $31 million, or 32% of total General Fund expenditures for the fiscal year. Of this amount, $5 million has been designated for other purposes, leaving $27 million, or 28% of total General Fund expenditures, as undesignated. . Overall expenses totaled $230 million of which governmental activities totaled $147 million and business-type activities totaled $83 million. Current year expenses increased approximately 7% over those of the prior year. 11 4 I: I: I: I 1 . Expenses of govenunental activities exceeded program revenue, resulting in the use of $132 million in general revenues (mostly taxes). . Total Outstanding Long-Term Debt, excluding compensated absences, decreas~d approximately $2 million due to the continuing reduction in outstanding principal on existing debt ,I ,I Overview of the Financial Statements ,I ,I , ,I This discussion and analysis is intended to serve as an introduction to the Government's basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the fmancial statements. The basic financial statements present two different views of the Government through the use of government-wide statements and fund fInancial statements. In addition to the basic fmancial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial condition of the Government. :1 Required Components of Annual Financial Report Figure 1 ,I 1 I Management's Discussion and Analysis Basic Financial Statements I I ;1 Government- Wide Financial Statements Fund Financial Statements Notes to the Financial Statements I il Summary ~ Detail ,I Basic Financial Statements , ,I The frrst two statements in the basic fmancial statements are the Government-wide Financial Statements. They provide both short and long-term information about the Government's fmancial status. ,I The next statements are Fund Financial Statements. These statements focus on the activities of the individual parts of Augusta-Richmond County, Georgia's government. These statements provide more detail than the government-wide statements. There are four parts to the Fund Financial Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; 3) the proprietary fund statements; and 4) the fiduciary fund statements. :1 ,I The next section of the basic fmancial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Government's non-major governmental funds and internal service funds, all of which are added together in one column on the appropriate b,asic financial statements. -,I ~I 5 ~I Government-wide Financial Statements f1 1'1 IJ Il 11 The Government-wide financial statements provide a broad view of the Government's operations in a manner similar to a private-sector business. The statements provide both short-term and long-term information about the Government's financial position, which assists in assessing the economic condition at the end of the fiscal year. These statements are prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This means. the statements take into account all revenues and expenses connected with the fIscal year even if cash involved has not been received or paid. The government-wide financial statements include the following two statements: fl IJ The Statement of Net Assets presents information on all of the Government's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the fmancial position of the Government is improving or deteriorating. IJ I~] The Statement of Activities presents information showing how the Government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). This statement also presents a comparison between direct expense and program revenues for each function of the Government. 1"1 I) The government-wide statements are divided into three categories: 1) governmental activities, 2) business- type activities and 3) component units. The governmental activities include most of the Government's basic services such as general administration, judicial services, public safety, public works, health and welfare, culture and recreation, and housing and development. Property taxes and state and federal grant funds fmance most of these activities. The business-type activities are those services that the Government charges a fee to customers in order to provide. These include Water and Sewer, Augusta Regional Airport, Waste Management, Municipal Golf Course, Transit, Daniel Field Airport, Newman Tennis Center, Garbage Collection, and the Riverwalk. The final category is component units. The Augusta-Richmond County Board of Health is a public health department. Although legally separate from the Government, the Government appoints a voting majority of the board. ['-I I] I) 11 I] r 1 Ii Fund Financial Statements .6 f .~ Ij I; I~ I: I I A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Government, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. The fund fmancial statements focus on individual parts of the Government, reporting the Government's operations in more detail than the government-wide statements. All of the funds of the Government can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. These fund categories use different accounting approaches and should be interpreted differently. I I Governmental Funds I Most of the basic services provided by the Government are fInanced through governmental funds. Governmental funds are used to account for essentially the same functions reported as government activities in the government-wide fInancial statements. However, unlike the government-wide statements, these funds focus on how assets can readily be converted into cash and the amount of funds left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting, which focuses on current financial resources. Such information may be useful in evaluating the government's short-term fmancing requirements. These statements provide a detailed short-term view of the Government's finances that assists in determining whether there will be adequate fmancial resources available to meet the Government's current needs. The relationship between government activities in the government-wide fInancial statements and the governmental funds fInancial statements is described in a reconciliation that is a part of the fund financial statements. I I I I The Government has fIve governmental fund types: the General Fund, Special Revenue Funds, Debt Service Funds, the Capital Projects Funds, and the Permanent Fund. Only four individual funds are being considered major funds - the General Fund, Fire Protection, Special Purposes Local Option Sales Tax Fund (SPLOST) Phase III and Special Purposes Local Option Sales Tax Fund (SPLOST) Phase IV. I Proprietary Funds I The Government has two types of proprietary funds used to account for activities that operate similar to commercial enterprises found in the private sector. Funds that charge fees for services provided to outside customers including other local governments are known as Enterprise Funds. These funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Funds that charge fees for services provided to departments within the reporting government are known as Internal Service Funds. Proprietary funds use the accrual basis of accounting, thus there is no reconciliation needed between the government-wide fInancial statements for business-type activities and the proprietary fund fInancial statements. I 1 I The Government has nine enterprise funds: Water and Sewer, Augusta Regional Airport, Waste Management, Municipal Golf Course, Transit, Daniel Field Airport, Newman Tennis Center, Garbage Collection, and the Riverwalk. The Government has seven internal service funds: Risk Management, Fleet Operations, Workers Compensation, Employee Health Benefits, Unemployment, Long-Term Disability Insurance and GMA Leases. The Water and Sewerage Fund and Augusta Regional Airport are the only funds being considered major funds for presentation purposes. I I I Fiduciary Funds I The Fiduciary Funds are used to account for assets held by the Government as an agent for individuals, private organizations, other governments and other Augusta-Richmond County departments. The Government is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and only by those to whom the assets belong. These funds are not reflected in the government-wide financial statements because the resources are not available to support the Government's operations or programs. I I I 7 Government-wide Financial Analysis Comparative data for the entity-wide governmental activities and the business-type activities is provided below. The Government's Net Assets December 31,2003 and 2002 Figure 2 Governmental, Business-type Governmental Business-type Activities Activities. Total Activities Activities Total , 2003 2003 2003 2002 2002 2002 Current and other assets $ 221,272,018 $ 217,765,947 $ 439,037,965 S 211,223,500 S 267,410,293 $ 478,633,793 Capital assets 218,091,918 30.5,509,501 523,601,419 205,796,966 252,479,150 458,276,116 Total assets 439,363,936 523,275,448 962,639,384 417,020,466 519,889,443 936,909,909 Long-term liabilities 21,876,904 321,369,475 343,246,379 30,054,792 326,938,096 356,992,888 Other liabilities 27,226,754 16,552,039 43,778,793 20,559,536 11,256,800 31,816,336 Totalliabilites 49,103,658 337,921,514 387,025,172 50,614,328 338,194,896 388,809,224 Net assets: Invested in capital assets, net of related debt 2 to, 177, L83 147,635,885 357,813,068 195,964,885 133,280,493 329,245,378 Restricted 67,963,626 7,755,294 75,718,920 122,169,587 12,967,555 135,137,142 Unrestricted lL2,119,469 29,962,755 142,082,224 48,271,666 35,446,499 83,718,165 Total net 390,260,278 185,353,934 575,614,212 366,406,138 181,694,547 548,100,685 8 r Il Il I~ I; Il 1-] Il I] 11 'I I] 11 IJ I. I ) I] Ij IJ I; I I I Net Assets Net assets may serve over time as one useful indicator of a government's financial condition. The assets of the Government exceeded liabilities by $575.6 million as of December 31,2003. I The largest portion of the Government's net assets, $357.8 million or 62%, reflects its investment in capital assets such as land, buildings, equipment and infrastructure (road, bridges, sidewalks, water lines and sewer lines) less any related debt used to acquire those assets that is still outstanding. The Government uses these capital assets to provide services to its citizens; therefore, these assets are not available for future spending. Although the Government's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. I I I I An additional portion of the Government's net assets, $76 million or 13%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $142 million or 25%, may be used to meet the Government's ongoing obligations to citizens and creditors. I Several particular aspects of the Government's fmancial operations positively influenced the total unrestricted governmental net assets: I · Continued diligence in the collection of property taxes by maintaining a collection percentage of99% for real and personal property. · Continued low cost of debt due to the County's high bond rating. · Continued diligence in the maintenance of a 75 - 90 day unreserved fund balance designated for operations in the General Fund. I I I I I I I I -I 9 I (] The Government's Changes in Net Assets For the Years Ended December 31,2003 and 2002 Figure 3 II (] IJ Ij Il Ii 11 II 11 11 11 I; 11 I~ I, I: I to I I I I Government-Wide Expenses I . Water and Sewer 22% o General Government 13% I . Other 1% I I I I II Health and Welfare 1% I . Waste Management m Garbage Collection 5% . Airports . Public Works I Government-Wide Revenues I II Grants and contributions not restricted to specific programs 0% . Unrestricted investment earnings 4% I!!l Gain on sale of assets 0% I . Charges for servi 40% I I I -I o Property Taxes 15% o Capital grants and contributions 2% . Operating grants and contributions 1% I . Other Taxes 37% 11 -I I Changes in Net Assets Governmental activities. Governmental activities increased the Government's net assets by $23 million, and thereby accounting for 92% of the total growth in the net assets of the Government. Key elements of this increase are as follows: I' I' Governmental Revenues. Property and tax other taxes continue as the main source of a revenue of the Government amounting to 88% in 2003, compared to 76% in 2002. Sales tax revenues contributed approximately $30 million to the increase in net assets. I Governmental Functional Expenses: As reflected in the summary of changes in Net Assets, the Government expended 53% of the appropriations for judicial and public safety expenditures. The Government continues to commit substantial fmancial resources for the safety of its citizens. Other expenditures accounted for the remaining 47%. I I, Business-type activities: Business-type activities increased the Government's net assets by approximately $2 million accounting for 8% of the total growth in the government's net assets. Key elements of this increase are as follows: I . The Waste Management Fund reported an increase in net assets of $353,000. This increase was due to increase in user fees for services. . The Water and Sewer Fund reported an increase in net assets of $1.8 million. This increase was largely due to an increase in user charges due to the rate increase for new debts in 2002. . The Augusta Regional Airport Fund reported an increase in net assets $1.7 million. This increase was largely due to intergovernmental revenue received. . Transit Authority net assets decrease of $783,000, primarily due to operating costs exceeding user charges and grants. I, I' Ii Financial Analysis of the Government's Individual Funds I Augusta-Richmond County uses fund accounting to demonstrate compliance with fmance-related legal requirements. Governmental Funds The focus of the Government's governmental funds is to provide information on near-term inflows, outflows and balances of usable resources. Such information is useful in assessing the Government's financial requirements. In particular, the unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The combined fund balance of all the governmental funds is $176.2 million, of which $101.3 million, or 57.4%, is unreserved and undesignated. I. I, I General Fund The General Fund is the primary operating fund of the Government. At the end of the current fiscal year, total fund balance of the General Fund was $32.2 million, of which $31.2 million, or 97%, was unreserved. A portion of the unreserved fund balance in the General Fund is designated for risk benefit, in the amount of $4.7 million. As a measure of the General Fund's liquidity, it may be useful to compare both undesignated and designated fund balance to total fund expenditures. As of December 31, 2003, total unreserved fund balance, both undesignated and designated, represents 32% of total general fund expenditures. I, I, I. I: 12 I I J I The fund balance of the General Fund increased $929,000 (3%) as the Board of Commissioners makes a collaborative effort to improve the reserve of the Government. A key factor to this increase was that actual expenditures were under budget for 2003 in several areas. ' I General Fund Budgetary Highlights I During the year, the Government revised the budget on several occasions. Generally, budget amendments fall into one of five categories: 1) amendments to appropriate fund balance for encumbrances from the prior year; 2) amendments made to adjust the estimates that are used to prepare the original budget resolution once exact information is available; 3) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; 4) increases in appropriations that become necessary to maintain services; and 5) amendments to transfer appropriations between departments. The fifth category has no effect on the final budget and, therefore, is not addressed in this narrative. For example, included in the original budget for the general government function was a contingency in the amount of approximately $1 million. During the year, the Government transferred these funds to other functions as needed. Total amendments to the General Fund increased expenditures and revenues/other financing sources by only $155,000 or <0.5%, an immaterial amount. I I I I The actual operating revenues for the General Fund were more than the budgeted amount by $318,482, or less than 1 %. The individual sources within the revenues fluctuated both positively and negatively. No individual source materially varied from the final budget, except for other revenues. In order to balance revenues with expenditures, the Government budgeted as a revenue $1.25 million of fund balance to be used for capital expenditures. ,I I As a result of superior budget management by all departments of the Government, actual operating expenditures were less than the budgeted amount by $1.7 million. For the year, actual revenue and other financing sources exceeded actual expenditures and other financing uses by $1.9 million. I Capital Projects Funds The Government uses Capital Projects Funds to account for the acquisition and construction of major capital facilities that are not fmanced by Proprietary Funds. A major fund included in the fund financial statements is the 2001-2005 SPLOST Fund. The proceeds of the special purpose 1% sales tax are accounted for in this Capital Projects Fund until improvement projects are completed. The SPLOST Fund's fund balance is $15.5 million, all of which is held for specific construction and improvement projects and capital acquisitions. The increase in fund balance is due to the timing of the collection of revenues as compared to project expenditures. I I I Proprietary Funds The activities of the Government that render services to the general public on a user charge basis, or that require periodic determination of revenues for public policy are accounted for as Enterprise Funds. The Government's proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net assets at the end of the year were as follows: Water and Sewer System Fund, $21.5 million; Augusta Regional Airport, $11.7 million; Nonmajor Enterprise funds, ($3.1) million. The total growth (reduction) in net assets for previously mentioned funds were $1.8 million, $248,000 and ($500,000), respectively. Other factors concerning the fmances of these funds have already been addressed in the discussion of the Government's business-type activities. I I I I I 13 Capital Assets and Debt Administration 11 (1 II Ii I 11 IJ 11 11 I] 11 IJ Capital Assets The Government's investment in capital assets for its governmental and business-type activities as of December 31, 2003 amounts to $521.5 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the Government, such as roads, bridges, streets and sidewalks, drainage systems and other similar items. Major capital asset transactions during the year include: · Site improvements at Hyde Park for $1.1 million · Construction of multi-use hanger for $1.5 million · Construction of Eisenhower Park Gym for $1.5 million · Acquisition of land for water and sewer of $4.1 million Additional information on the Government's capital assets can be found in Note 3 of the notes to the financial statements of this report. The Government's Capital Assets (net of depreciation) December 31,2003 Figure 4 Govenurental Business-type Activities Activities Total Land $ 16,651,955 $ 14,327,576 $ 30,979,531 Building; 53,453,727 24,904,721 78,358,448 I~verrents other than building; 6,215,655 2,340,643 8,556,298 Water and se\\el'age systems 160,406,857 160,406,857 Infrastructure 36,004,586 11,217,249 47,221,835 Vehicles, I1lIChinery and equiptrent 14,112,064 9,036, 127 23,148,191 Richnnnd County Public Facilities 2,109,247 Construction in progress 89,544,684 83,276,326 172,821,010 Total $ 218,091,918 $ 305,509,499 $ 521,492, 170 ! 1 IJ Ii Ii I: 11 I I" 14 I I I Long-Term Debt I As of December 31,2003, the Government had a total of$336.7 million in outstanding long-term debt. Of this amount, $307.3 million consists of revenue bonds backed by the revenues of the water and sewer system. I I The Government's Outstanding Debt General Obligation and Revenue Bonds December 31, 2003 and 2002 Figure 5 I GovernrrentaI Activities I3l.Nress-t)pe Activities Total 2003 2002 2003 2002 2003 2002 I I $ 4,492,440 19,411,988 23,'Xl4,428 $ 302,759,183 10,040,712 $ 312,799,895 $ - $ 304,654,619 10,694,249 $ 315,348,868 - $ 350,000 309,251,677 31,524,050 341,125,727 Genera1 oblil?fllion bonds Revenue bonds orer delt Total delt $ $ 350,000 $ 4,597,058 20,829,801 25,776,859 307,251,623 29,452,700 $ 336,704,323 $ I I 350 300 250 200 150 100 50 I I G.O. Bonds Revenue Bonds Other Debt I The Government has maintained a bond rating of A+ from Standard & Poor's Rating Group and an A2 rating from Moody's Investor Service. These bond ratings are clear indications of the sound financial condition of the Government. These high ratings are a primary factor in keeping interest costs low on the Government's outstanding debt. I I The State of Georgia limits the amount of general obligation debt that a unit of government can issue to 10 percent of the total assessed value of taxable property located within that government's boundaries. The legal debt margin for the Government is $355 million. Additional information regarding the Government's long-term debt can be found in Note 3 of the notes to the financial statements of this report. I -I 15 I I I Economic Factors and Next Year's Budget and Rates I: The following key economic indicators reflect the growth and prosperity of the Government. . The Government has an unemployment rate of 5.5%, slightly higher than the state average of 4.6%. · The ad valorem tax rate increased from $6.859 per $1000 to $7.4892 per $1000 of valuation. I Budget Highlights for the Fiscal Year Ending December 31, 2004 I' Governmental Activities: The Ad Valorem Taxes are projected to remain at the 2003 level. The 2004 tax digest has shown a slight increase of less than 1 % primarily due to account corrections. Other taxes are expected to increase between 1% to 3% with no significant increase in sales tax revenues. The FY 2004 budget for the general fund is expected to be slightly above the 2003 level due to increase in the property tax revenues and some modest reductions in expenditures. The general econornic climate for the city government of 2004 is expected to be stable with an estimated 5% of fund balance appropriated for budgeted expenditures. The undesignated fund balance should remain at 25% in reserves. I, I Business - type Activities: Overall Water and Sewer reve~ue is projected to increase 11 % due to the $149 million new debt issued in 2002 and the required rate increase to retire this debt. Airport revenue is projected to increase based on the 2004 landing fees increase. I: I' Requests for Information This report is designed to provide an overview of the Government's finances for those with an interest in this area. Questions concerning any of the information found in this report, or requests for additional information should be directed to the Finance Director, Augusta-Richmond County, Georgia, 501 Greene Street, Augusta, Georgia 30901. Questions concerning any of the information found in this report relating to the Richmond County Board of Health should be directed to the Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901. I I; I I I I I I I 16 I Augusta, Georgia Statement of Activities Year Ended December 31, 2003 Program Revenues Operating Capital Charges for Grants aud Grants and FunctionslPro2rams Expenses Services Contributions Contributions Primary government: GovenunentaJ activities: General government $ 29,460,733 $ 13,951,515 $ 955,771 $ Judicial 12,450,759 8,776,700 389,900 Public safety 64,567,666 7,420,636 218,556 25,955 Public works 13,249,489 515,602 111,078 220,858 Health and welfare 2,619,851 137,877 13,052 Culture and recreation 16,920,689 800,545 926,208 Housing and development 7,182,503 3,792,942 Interest on long-term debt 433,690 Total governmental activities 146,885,380 31,602,875 2,614,565 4,039,755 Business-type activities: Waste management 4,796,691 4,943,777 35,256 Water and sewer 50,260,882 44,799,544 Airports 11,745,792 10,857,560 131,903 1,489,857 Municipal golf course 649,170 645,525 Transit 4,020,263 722,803 898,972 260,216 Newman Tennis Center 304,677 218,386 7,136 Garbage Collection 11,030,722 6,644,314 RiverwaIk 250,849 58,830 Total business-type activities 83,059,046 68,890,739 1,073,267 1,750,073 Total primary government $ 229,944,426 $ 100,493,614 $ 3,687,832 $ 5,789,828 Component unit: Richmond County Department of Health $ 14,205,297 $ 2,620,122 $ 10,084,022 $ I: f Il --j IJ r-l IJ 11 Ij '-') I] 11 General revenues: Property taxes Sales taxes Franchise taxes Other taxes Unrestricted governmental revenues Revenues from use of money and property Gain on sale of assets Miscellaneous Transfers Total general revenues and transfers I] I] Change in net assets I~ IJ Net assets - beginning Prior period adjustments Net assets - beginning, as restated Net assets - ending The notes to the fmanciaI statements are an integral part of this statement. I) I; I; I 22 I, I I Net (Expense) Revenue and Changes in Net Assets I Primary Government Department Governmental Business-type of Activities Activities Total Health I $ (14,553,447) $ $ (14,553,447) $ (3,284,159) (3,284,159) (56,902,519) (56,902,519) I (12,401,951) (12,401,951) (2,468,922) (2,468,922) (15,193,936) (15,193,936) (3,389,561) (3,389,561) I (433,690) (433,690) (108,628,185) (108,628,185) 182,342 182,342 I (5,461,338) (5,461,338) 733,528 733,528 (3,645) (3,645) (2,138,272) (2,138,272) I (79,155) (79,155) (4,386,408) (4,386,408) (192,019) (192,019) (11,344,967) (11,344,967) I (108,628,185) ., (11,344,967) (119,973,152) I (1,501,153) 39,368,805 39,368,805 I 62,439,388 62,439,388 14,299,247 14,299,247 15,056,475 15,056,475 981,463 981,463 1,337,514 I 3,919,337 7,050,734 10,970,071 8,794 94,904 94,904 695,944 1,358,408 2,054,352 (4,878,890) 4,878,890 I 131,881,769 13,382,936 145,264,705 1,346,308 23,253,584 2,037,969 25,291,553 (154,845) I 366,406,138 181,694,547 548,100,685 7,611,878 600,556 1,621,418 2,221,974 3,753 367,006,694 183,315,965 550,322,659 7,615,631 $ 390,260,278 $ 185,353,934 $ 575,614,212 $ 7,460,786 I I I I I 23 ,1 II Augusta, Georgia r-, Balance Sheet II Governmental Funds 'December 31, 2003 11 Fire Special Sales 11 General Protection Tax Phase III Assets Cash and temporary investments $ 19,436,883 $ 10,663,351 $ 49,475,918 Il Receivables (net of allowance for doubtful accounts) Taxes 3,801,985 522,859 Accounts 4,852,681 133,298 Il Interest 26,719 Note 100,000 Intergovernmental 57,227 Prepaid items 57,997 75,000 11 Inventory 130,925 Restricted assets Reserve account Il Sinking fund account Perpetual care Due from other funds 13,928,207 53,531 Total assets $ 42,365,905 $ 11,239,741 $ 49,710,935 r_~1 Liabilities and fund balances II Liabilities: r--l Accounts payable $ 1,728,499 $ 78,613 $ 474,258 Ii Due to other funds 100,000 Accrued salaries and vacation 2,469,406 620,241 Other accrued liabilities 1,412,755 '1 Deferred revenue 4,494,451 8,810,116 Total liabilities 10,205,111 9,508,970 474,258 Fund balances: 11 Reserved for: Encumbrances 650,679 68,380 7,324,916 I] Project Maintenance Debt Special purposes 106,44 7 32,764,282 Inventory/prepaid items 188,922 75,000 II Designated for: Risk benefit 4,705,061 250,000 Unreserved - undesignated 26,509,685 1,412,391 9,072,479 Ij Unreserved, reported in nonmajor: Special revenue Debt service 1'--\ Capital projects I] Permanent Total fund balances 32,160,794 1,730,771 49,236,677 Total liabilities and fund balances $ 42,365,905 $ II,239,741 $ 49,710,935 Ii The notes to the financial statements are an integral part of this statement. I 26 Ii I I I Other Total I Special Sales Governmental Governmental Tax Phase IV Funds Funds $ 58,757,602 $ 31,359,963 $ 169,693,717 I 2,863,614 7,188,458 2,397,570 882,832 8,266,381 I 86,667 II3,386 336,835 436,835 217,306 274,533 I 132,997 130,925 1,571,208 1,571,208 I 204,539 204,539 338,625 338,625 162,357 14,144,095 I $ 61,155,172 $ 38,023,946 $ 202,495,699 I $ 907,402 $ 1,066,686 $ 4,255,458 1,141,568 1,241,568 61,242 155,952 3,306,841 I 77,939 1,490,694 2,666,984 15,971,551 968,644 5,109,129 26,266,112 I 5,094,840 3,673,205 16,812,020 I 5,596,460 5,596,460 2,986,302 2,986,302 (5,094,840) 16,550,138 44,326,027 I 263,922 4,955,061 I 60,186,528 97,181,083 9,690,487 9,690,487 (474,252) (474,252) I (5,388,479) (5,388,479) 280,956 280,956 60,186,528 32,914,817 176,229,587 I $ 61,155,172 $ 38,023,946 $ 202,495,699 I I 27 I ., ,I ~I ;1 Augusta, Georgia Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets December 31, 2003 Amounts reported for governmental activities in the statement of net assets are different because: , ,I Ending fund balance - governmental funds $ Capital assets used in governmental activities are not fmancial resources and, therefore, are not reported in the funds. ; ;1 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. Adjustment of deferred revenue Long-term notes receivable Annual pension asset (liability) ,I ; ,I ;1 Internal service funds are used by management to charge the costs of risk management, fleet operations, employee benefits, and GMA lease activity to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. ,I Long-term liabilities, including bonds payable and accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities Bond issue costs capitalized Accrued interest )1 'I Net assets of governmental activities ~I I ,I ,I ,I ~I The notes to the financial statements are an integral part of this statement. 29 I 176,229,587 217,851,576 5,870,794 2,794,169 179,218 8,844,181 256,608 (13,000,341) 173,767 (95,100) (12,921,674) $ 390,260,278 r-> Augusta, Georgia 11 Statement of Revenues, Expenditures and Changes in Fund Balances ") Governmental Funds Year Ended December 31,2003 Ii Fire Special Sales General Protection Tax Phase III IJ Revenues Taxes - property $ 25,264,680 $ 3,383,760 $ Taxes - other than property 41,485,449 7,779,134 11 Licenses and permits 1,344,602 Use of money and property 1,921,751 85,495 621,513 Charges for current services 16,01l,173 15,050 2,737 Fines and forfeitures 6,624,414 11 Intergovernmental 2,II4,173 1,053,221 Contributions and donations 8,487 Other 78, II 0 19,615 Ii Total revenues 94,852,839 11,283,054 1,677,471 Expenditures Current: I] General government 21,701,088 961,131 200,230 Judicial 10,525,575 Public safety 41,986,133 16,203,602 ,ul Public works 5,859,635 1,520,392 II Health and welfare 2,049,197 Culture and recreation 10,796,229 650,444 , Housing and development r'"-, 1,501,551 IJ Capital outlay 3,103,889 4,984,356 Debt service 117,392 Total expenditures 97,640,689 17,164,733 7,355,422 ('--, Excess (deficiency) of revenues I] over (under) expenditures (2,787,850) (5,881,679) (5,677,951) Other financing sources (uses) 11 Transfers in 1,805,740 6,012,000 Transfers (out) (406,831) Capital lease proceeds 2,317,703 I; Proceeds of refunding bond Payment ofrefunded debt Total other fmancing sources (uses) 3,716,612 6,012,000 I') Net change in fund balances 928,762 130,321 (5,677,951) Fund balance - beginning 31,232,032 1,600,450 54,914,628 I~ Fund balance - ending $ 32,160,794 $ 1,730,771 $ 49,236,677 I~ The notes to the financial statements are an integral part of this statement. I: I 30 I , I I ,I Other Total Special Sales Governmental Governmental , Tax Phase IV Funds Funds ,I $ $ 11,369,821 $ 40,018,261 , 31,II5,877 II ,451 ,406 91,831,866 ,I 2,961,828 4,306,430 620,572 661,477 3,910,808 5,435 3,151,597 19,185,992 il 1,486,039 8,110,453 4,190,164 7,357,558 269,738 278,225 , 585,686 683,411 ,I 31,741,884 36,127,756 175,683,004 ,I 593,006 1,256,026 24,711,481 467,908 10,993,483 206,880 2,780,402 61,177,017 il 1,878,579 3,813,432 13,072,038 476,547 , 2,525,744 592,694 3,650,391 15,689,758 I 5,872,764 7,374,315 11,493,226 1,519,013 21,100,484 794,171 3,499,882 4,4II,445 I 16,035,103 22,859,818 161,055,765 15,706,781 13,267,938 14,627,239 ,I 825,571 8,643,311 (18,370) ( 14,402,030) (14,827,231) 2,317,703 ,I 4,035,000 4,035,000 (3,863,767) (3,863,767) (18,370) (13,405,226) (3,694,984) ,I 15,688,411 (137,288) 10,932,255 44,498,117 33,052,105 165,297,332 I $ 60,186,528 $ 32,914,817 $ 176,229,587 ,I "I ~I 31 I I I Augusta, Georgia Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31,2003 I I Amounts reported for governmental activities in the statement of activities are different because: I Net change in fund balances - total governmental funds I Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. I Revenues in the statement of activities that do not provide current fmancial resources are not reported as revenues in the funds. I Governmental funds report collections of long-term receivables as revenues. However, in the statement of net assets the receivables are recorded, and collection of those receivables reduce the principal amount recorded. This is the amount of current year collections of notes receivable. I The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal oflong-term debt consumes the current fmancial resources of governmental funds. Neither transaction, however has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related accounts. Long-term liabilities Bond issue costs capitalized Accrued interest I I I I The net revenue of certain activities of the internal service fund is reported with governmental activities. I Change in net assets of governmental activities 'I I I -I The notes to the [mancial statements are an integral part of the is statement. 33 I $ 10,932,255 II,791,01l (506,994) 76,472 1,109,673 173,767 114,001 1,397,441 (436,601) $ 23,253,584 11 Augusta, Georgia rl General Fund I) Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31,2003 I Variance with Budgeted Amounts Final Budget - Actual Positive 2002 n IJ Revenues Original Final Amounts (Negative) Actual Taxes - property $ 25,570,130 $ 24,728,570 $ 25,264,680 $ 536,110 $ 23,452,043 11 Taxes - other than property 41,729,810 41,729,810 41,485,449 (244,361 ) 40,951,853 Licenses and permits 1,322,660 1,322,660 1,344,602 21,942 2,172,307 Use of money and property 2,214,000 2,214,000 1,921,751 (292,249) 1,744,293 IJ Charges for current services 14,631,260 14,681,760 16,01l,173 1,329,413 14,315,448 Fines and forfeitures 7,404,640 7,433,885 6,624,414 (809,471) 7,648,604 Intergovernmental 1,966,620 2,689,182 2,114,173 (575,009) 1,519,910 Contributions and donations 8,487 8,487 87 .1 Other 64,100 64,100 78,110 14,010 138,723 Total revenues 94,903,220 94,863,967 94,852,839 (11,128) 91,943,268 Expenditures Il Current: General government 22,665,210 21,508,093 21,701,088 (192,995) 20,519,887 Judicial 10,037,530 10,554,458 10,525,575 28,883 9,541,324 I] Public safety 42,988,350 43,072,583 41,986,133 1,086,450 41,648,362 Public works 6,880,480 7,303,070 5,859,635 1,443,435 5,784,919 Health and welfare 2,049,920 2,263,187 2,049,197 213,990 2,041,700 IJ Culture and recreation 11,213,690 11,132,344 10,796,229 336,115 10,467,424 Housing and development 1,471,530 1,720,890 1,501,551 219,339 1,969,401 Capital outlay 548,930 1,107,168 3,103,889 (1,996,721) 1,890,752 Debt service 147,290 147,290 117,392 ( 29,898 124,833 j] Total expenditures 98,002,930 98,809,083 97,640,689 1,168,394 93,988,602 Excess (deficiency) of revenues over (under) expenditures (3,099,710) (3,945,116) (2,787,850) 1,157,266 (2,045,334) r--l Other financing sources (uses) Ii Transfers in 3,176,910 4,036,312 1,805,740 (2,230,572) 3,120,299 Transfers (out) (77,200) (91,196) (406,831) (315,635) (537,428) [1 Capital lease proceeds 2,317,703 2,317,703 1,278,319 IJ Total other financing sources (uses) 3,099,710 3,945,116 3,716,612 (228,504) 3,861,190 11 Net change in fund balances $ $ 928,762 $ 928,762 1,815,856 i 1 Fund balance - beginning 31,232,032 29,416,176 I] Fund balance - ending $ 32,160,794 $ 31,232,032 11 II f 1 I. , I 34 I ., I ., I "1 I ., ,I Augusta, Georgia Fire Protection Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2003 Variance with Budgeted Amounts Final Budget - Actual Positive 2002 Original Final Amounts (Negative) Actual $ 3,523,850 $ 3,399,030 $ 3,383,760 $ (15,270) $ 2,941,810 7,770,000 7,770,000 7,779,134 9,134 7,089,803 232,000 232,000 85,495 (146,505) 104,676 6,000 6,000 15,050 9,050 11,450 64,859 (64,859) 19,615 19,615 24,560 11,531,850 11,471,889 11,283,054 (188,835) 10,172,299 "Ievenues j Taxes - property 1 Taxes - other than property luse of money and property , Charges for current services " Intergovernmental IOther Total revenues "IXpenditUreS Current: , General government Public safety IcaPital outlay , Debt service Total expenditures ',~CesS (deficiency) of revenues :Iover (under) expenditures 658,970 620,970 961,131 (340,161) 1,133,756 16,992,880 17,245,575 16,203,602 1,041,973 15,928,544 17,000 54,855 54,855 8,482 125,000 125,000 17,668,850 18,046,400 17,164,733 881,667 17,070,782 (6,137,000) (6,574,511) (5,881,679) 692,832 (6,898,483) 6,137,000 6,574,511 6,012,000 (562,511) 6,512,306 6,137,000 6,574,511 6,012,000 (562,511 ) 6,512,306 $ $ 130,321 $ 130,321 (386,177) 1,600,450 1,986,627 $ 1,730,771 $ 1,600,450 , Other financing sources (uses) rransfers in , Total other financing sources (uses) :, Net change in fund balances und balance - beginning ,Ind balance - ending ,I ,I ,I I :1 I 35 11 Augusta, Georgia IJ Statement of Net Assets Proprietary Funds 11 December 31, 2003 Enterprise Funds Il Water Augusta Other Internal and Sewer Regional Enterprise Service System Airport Funds Total Funds Assets 'il Current assets I) Cash and temporary investments $ 26,092,976 $ 13,026,708 $ 11,118,635 $ 50,238,319 $ 960,466 Receivables (net of allowance for doubtful 11 accounts) Taxes 632,531 632,531 Accounts 5,936,762 672,198 454,049 7,063,009 3,068,652 Interest 913,235 1,312 914,547 IJ Intergovernmental 353,207 881,359 1,234,566 Inventory 1,435,013 181,388 238,448 1,854,849 Due from other funds 72,710 72,710 1-1 Total current assets 34,377,986 14,233,501 13,399,044 62,010,531 4,029,118 Noncurrent assets Restricted cash and investments 162,681,573 162,681,573 13,098,945 Deferred bond issuance costs 4,154,589 4,154,589 r'l Capital assets, net 270,365,483 25,435,367 9,708,651 305,509,501 240,342, IJ Total noncurrent assets 437,201,645 25,435,367 9,708,651 472,345,663 13,339,287 Total assets $ 471,579,631 $ 39,668,868 $ 23,107,695 $ 534,356,194 $ 17,368,405 Liabilities 11 Current liabilities Accounts payable $ 6,666,104 $ 636,191 $ 741,763 $ 8,044,058 $ 828,474 IJ Accrued interest 3,948,582 3,948,582 Due to others 39,000 39,000 Due to other funds 5,702,212 1,663,879 3,538,534 10,904,625 433,451 Accrued salaries and vacation 633,225 186,943 305,548 1,125,716 36,300 11 Other accrued liabilities 162,907 162,907 Deferred revenue 650 650 Current portion of notes payable 428,936 428,936 f--.--..' Current portion of leases payable 498,133 49,057 547,190 II Current portion of revenue bonds payable 2,255,000 2,255,000 Total current liabilities 20,132,192 2,526,013 4,798,459 27,456,664 1,298,225 Noncurrent liabilities IJ Closure/postclosure accrual 11,800,706 11,800,706 Revenue bonds payable 300,504,183 300,504,183 15,989,693 Notes payable 8,778,445 8,778,445 IJ Capital leases 237,084 49,057 286,141 Total noncurrent liabilities 309,519,712 11,849,763 321,369,475 15,989,693 Total liabilities 329,651,904 2,526,013 16,648,222 348,826,139 17,287,918 (" 1 Net assets I; Invested in capital assets, net of related debt 112,589,981 25,435,367 9,610,537 147,635,885 240,342 Restricted 7,755,294 7,755,294 Unrestricted 21,582,452 11,707,488 (3,151,064) 30,138,876 (159,855) IJ Total net assets $141,927,727 $37,142,855 $6,459,473 $185,530,055 $80,487 Some amounts reported for business-type activities in the statement of net assets are different . , because of the following: I, Certain intemal fund assets and liabilities are included with business-type activities. $ (176,121) Total net assets for business-type activities $ 185,353,934 The notes to the financial statements are an integral part of this statement. I , , 36 I; I Augusta, Georgia I Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds Year Ended December 31, 2003 I Enterprise Funds I Water Augusta Other Internal and Sewer Regional Enterprise Service System Airport Funds Total Funds Operating revenues ICharges and fees $ 45,135,821 $ 10,880,553 $ 13,323,385 $ 69,339,759 $ 24,365,459 Total operating revenues 45,135,821 10,880,553 13,323,385 69,339,759 24,365,459 Iperating expenses Personal services and employee benefits 7,945,976 2,435,033 4,136,156 14,517,165 391,723 Purchased/contracted services 7,797,023 1,541,685 11,289,047 20,627,755 415,724 IsuPPlies 3,710,838 4,947,693 1,037,507 9,696,038 332,381 Repairs and maintenance 2,629,780 328,599 413,087 3,371,466 3,685,194 Interfund/interdepartmentalcharges 1,581,260 274,733 873,520 2,729,513 379 Other costs 25,000 108,310 774,212 907,522 98,787 IDepreciation 10,019,815 1,555,972 1,704,145 13,279,932 96,615 Closure/postclosure accrual 817,227 817,227 Lease expense 3,275,020 IRisk benefit charges 942,285 Insurance 15,896,194 Total operating expenses 33,709,692 11,192,025 21,044,901 65,946,618 25,134,302 terating income (loss) II,426,129 (3II,472) (7,721,516) 3,393,141 (768,843) Nonoperating revenue (expense) Interest revenue 6,760,818 173,169 116,749 7,050,736 350,598 Sale of property 90,854 4,050 94,904 300 Other revenue 597,492 30,705 628,197 147,292 Intergovernmental 1,236,414 1,474,183 2,710,597 nterest expense (16,442,576) (23,287) (76,512) (16,542,375) (342,069) Total nonoperating revenue (expense) (9,590,904) 1,983,788 1,549,175 (6,057,941) 156,121 I;ome (loss) before transfers 1,835,225 1,672,316 (6,172,341) (2,664,800) (612,722) ransfers in 100,000 4,828,890 4,928,890 182,288 Transfers out (50,000) (50,000) (182,288) , lange in net assets 1,835,225 1,722,316 (1,343,451) 2,214,090 (612,722) Total net assets - beginning 137,659,482 35,420,539 8,614,526 181,694,547 429,886 lior period adjustment 2,433,020 (811,602) 1,621,418 263,323 Total net assets - beginning, as restated 140,092,502 35,420,539 7,802,924 183,315,965 693,209 Ital net assets - ending $ 141,927,727 $ 37,142,855 $ 6,459,473 $ 185,530,055 $ 80,487 Ime amounts reported for business-type activities in the statement of net assets are different cause of the following: Certain internal fund assets and liabilities are included with business-type activities. (176,121) fotal net assets for business-type activities $ 185,353,934 The notes to the financial statements are an integral part of this statement. I 37 Augusta, Georgia 11 Statement of Cash Flows 11 Proprietary Funds Year Ended December 31, 2003 Enterprise Funds 11 Water Augusta Other Internal 11 & Sewer Regional Enterprise Service System Airport Funds Total Funds Operating activities 'I Cash received from customers $ 44,460,305 $ 11,539,987 $ 14,434,805 $ 70,435,097 $ 22,218,64; IJ Cash received from contributions Cash paid to suppliers (10,263,618) (10,211,208) (13,030,454) (33,505,280) (21,476,366) Cash paid to employees (7,914,113) (4,086,856) (12,000,969) (387,075) r'-l Cash paid for interfund services used 1,986,866 339,087 2,325,953 (379) II Net cash provided by (used in) operating activities 28,269,440 1,328,779 (2,343,418) 27,254,801 354,827 r-1 Noncapital financing activities I] Transfers in 100,000 4,828,890 4,928,890 3,268,818 Transfers out (50,000) (50,000) - r;;-] Operating grants 97,719 97,719 (1O,51~) IJ Interest expense on operating capital (50,612) (50,612) Other revenue 580,528 580,528 147,292 Net cash provided by non capital 11 financing activities 630,528 4,875,997 5,506,525 3,405,596 Capital and related financing activities Proceeds from grants 1,055,171 586,771 1,641,942 '~-I Proceeds from sale of property 90,854 4,050 94,904 29~ Ii Proceeds from capital leases 711,253 711,253 Interest on bond funds 6,456,569 6,456,569 Other miscellaneous income 30,705 30,705 -11 Purchase of capital assets (60,797,745) (3,030,226) (762,779) (64,590,750) (3,555,46~) J Interest paid on capital debt (16,064,318) (25,900) (16,090,218) Principal paid on capital debt (1,462,904) (24,230) (1,487,134) -11 Principal paid on revenue bonds (2,175,000) (2,175,000) Net cash provided (used) by capital and related financing activities (73,241,291) (1,999,285) (167,153) (75,407,729) (3,555,160) J I I Investing activities IJ Interest received 756,493 173,169 117,085 1,046,747 350,598 Net cash provided by investing activities 756,493 173,169 117,085 1,046,747 350,598 Net increase in cash and cash IJ equ ivalents/investments (44,215,358) 133,191 2,482,511 (41,599,656) 555,861 Cash and cash equivalents/investments Beginning of year 232,989,907 12,893,517 8,636,124 254,519,548 13,503,550 r ') 11 End of year $ 188,774,549 $ 13,026,708 $ 1l,1l8,635 $ 212,919,892 $ 14,059,411 Ii The notes to the financial statements are an integral part of this statement Ii! I 38 I, ,I Augusta, Georgia Statement of Cash Flows Proprietary Funds Year Ended December 31,2003 Enterprise Funds Water Augusta Other Internal & Sewer Regional Enterprise Service System Airport Funds Total Funds Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) $ 1l,426,129 $ (311,472) $ (7,721,516) $ 3,393,141 $ (227,349) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 10,019,815 1,555,972 1,704,145 13,279,932 22,519 Closure/post closure costs 817,227 817,227 Change in assets and liabilities Accounts receivable (675,515) 590,607 2,303,636 2,218,728 2,660,648 Due from other funds 160,211 160,211 1,031,374 Inventory 16,749 (7,417) (34,013) (24,681) Taxes receivable (632,531) (632,531) Accounts payable 1,782,318 (498,911) (87,261) 1,196,146 (463,653) Accrued salaries and vacation 60,135 49,300 109,435 7,365 Other accrued liabilites (41,885) (41,885) 3,010 Due to other funds 5,592,976 1,138,619 6,731,595 (664,277) Unearned revenue 650 650 Claims payable 46,833 46,833 Total adjustments 16,843,311 1,640,251 5,378,098 23,861,660 2,596,986 Net cash provided by (used in) operating activities $ 28,269,440 $ 1,328,779 $ (2,343,418) $ 27,254,801 $ 2,369,637 :1 ,I 11 ,I ;1 ,I ;,1 ,I 11 I :1 JI "I ,I I I -,1 The notes to the financial statements are an integral part of this statement I 39 Augusta, Georgia Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2003 Private-purpose Pension Trust Fund Agency Trust Funds Joseph R. Lamar Funds Assets Cash and cash equivalents $ 4,363,721 $ 190 $ 7,639,528 Investments U.S. Government securities 20,524,886 Corporate bonds 17,038,735 Equity securities 47,391,791 Real estate 1,700,000 Receivables (net of allowance for doubtful accounts) Taxes 24,807,936 Interest 651,053 Restricted assets Perpetual care 5,000 Due from other funds 100,000 Total assets $ 91,770,186 $ 5,190 $ 32,447,464 Liabilities Accounts payable $ 9,167 $ $ Due to others 6,272,892 Due to other funds 370,525 1,366,636 Uncollected taxes 24,807,936 Total liabilities 379,692 $ 32,447,464 Net assets Held in trust for pension benefits and other purposes $ 91,390,494 $ 5,190 The notes to the fmancial statements are an integral part of this statement. 40 jl 1'1 f:1 11 I n IJ IJ I) r-' IJ i1 11 IJ 11 I, Ii I: Ii I: I I, I I I I I I I I I I I I I I I I I -I I Augusta, Georgia Statement of Changes in Fiduciary Net Assets Fiduciary Funds Year Ended December 31,2003 Private-purpose Pension Trust Fund Trust Funds Joseph R. Lamar Additions Contributions $ 2,102,484 $ Net investment income 11,148,628 307 Transfers in 1,305,030 Total additions 14,556,142 307 Deductions Other 175 Administration 590,585 Benefit payments 5,848,372 Refunds 225,313 Total deductions 6,664,270 175 Change in net assets 7,891,872 132 Total net assets - beginning 83,498,622 5,058 Total net assets - ending $ 91,390,494 $ 5,190 The notes to the financial statements are an integral part of this statement. 41 I I I ,I -- ,I ,I I I ;1 ,I :1 .1 , :1 ",I ,I ,I ,I ~I I AUGUSTA, GEORGIA Notes to Financial Statements Year Ended December 31,2003 Note 1 - Summary of significant accounting policies Augusta, Georgia (''the Government") accounts for its financial position and results of operations in accordance with accounting principles generally accepted in the United States of America (GAAP) applicable to governmental units. The Government's reporting entity applies all relevant Government Accounting Standards Board (GASB) pronouncements. In the government-wide fmancial statements and in the proprietary fund financial statements, the Government applies Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Accordingly, the Government has adopted accounting policies, as described below. A. Reporting entity Augusta is located in the east central section of the state on the south bank of the Savannah River, which serves as the boundary between Georgia and South Carolina. Augusta is on the fall line and has a landscape dotted with foothills which descend to the coastal plain. Augusta is the head of the navigation on the Savannah River and is 135 miles east of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles southwest of Columbia, South Carolina. Augusta is the trade center for 13 counties in Georgia and five in South Carolina, a section known as the Central Savannah River Area. The Government was created by legislative act in the State of Georgia in 1995 from the unification of the two governments, the City of Augusta,. Georgia and Richmond County, Georgia. On June 20, 1995, the citizens of Richmond County and the City of Augusta voted to consolidate into one government named Augusta, Georgia. The officials for the new government were elected and, based on the charter, took office on January 1, 1996. The unified government combined all functions and began financial operations January 1, 1996. The Government is governed by a full-time Mayor, with a term of four years, and a ten member Commission, who serve on a part-time basis and are elected to staggered terms of four years. The Mayor and Commission appoint an Administrator who serves as a full-time administrative officer and is responsible for the daily operations of the Government. The Government's fmancial statements include the accounts of all Augusta and Richmond County operations. The criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100 ofGASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether: · the organization is legally separate (can sue and be sued in their own name) · the Government holds the corporate powers of the organization · the Government appoints a voting majority of the organization's board · the Government is able to impose its will on the organization · the organization has the potential to impose a financial benefit/burden on the County · there is fiscal dependency by the organization on the Government Utilizing the above criteria, the following agencies and commissions were included using the blending method in the financial statements: Augusta Port Authority, Downtown Development Authority, and Richmond County Public Facilities, Inc. (see Note 4D). Complete fmancial statements for the individual component units may be obtained at the following address: Augusta, Georgia, Finance Department, 501 Greene Street, Augusta, Georgia 30901 The Government's other component unit, the Department of Health, is included in a separate column in the accompanying government-wide financial statements. This unit is reported in a separate column to emphasize that it is legally separate from the Government. Separate financial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901 Richmond County Department of Health - A voting majority of the board is appointed by the Government. 45 AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 1 - Summary of significant accounting policies (Continued) B. Basis of Presentation Government-wide statements: The statement of net assets and the statement of activities display information about the primary government. These statements include the fmancial activities of the overall government. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the Government. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are fmanced in whole or in part by fees charged to external parties. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is fmancially accountable. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Government and for each function of the Government's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Separate fmancial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide fmancial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund financial statements: The fund fmancial statements provide information about the Government's funds. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund fmancial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operation revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. The Government reports the following major governmental funds: General Fund - The General Fund is the general operating fund of the Government. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, state grants, and various other taxes and licenses. The primary expenditures are for public safety, recreation, street maintenance and improvements, and sanitation services. Fire Protection Fund - The Fire Protection Fund is a special revenue fund that accounts for the receipts and disbursements of tax revenues restricted for fire protection services in the unincorporated area only. The primary revenue source is ad valorem taxes, and the primary expenditures are for public safety. Special Sales Tax Phase III Fund - The Special Sales Tax Phase III Fund is a capital projects fund that accounts for the receipts and disbursements of one percent (l %) sales tax currently collected from 1996 through 2000. The primary revenue sources are sales taxes, and the primary expenditures are capital outlay projects, primarily for public works, recreation and outside agency projects. Special Sales Tax Phase IV Fund - This fund was established for expenditures specifically budgeted from revenues from the one cent sales tax (Phase IV) collected from the years 2001 - 2005 to be used primarily for public works, recreation and outside agency projects. 46 r-I II 11 ill 11 11 CI IJ 11 "'-1 Ii r''-'l I) I] I IJ I] 11 IJ Ij I~ I: I I: I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2003 I Note 1 - Summary of significant accounting policies (Continued) The Government reports the following nonmajor governmental funds: I Special Revenue Funds 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". I Emergency Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the emergency telephone response system. I Capital Outlay Fund - This fund accounts for the disbursement of revenues for all capital expenditures in General Fund departments. Capital expenditures are defmed as any non-disposable item over $500 which includes vehicles, office and computer equipment, cornmunications equipment, building renovations and office furniture. I Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriffs Department and Jail. I Occupational Tax Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire protection services in the unincorporated area only. I Special Assessment Fund - This fund accounts for the receipt and disbursement of street light assessment taxes for the installation of street lights in the Government. I Promotionffourism 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. 1 Housing and Neighborhood Development Fund - This fund accounts for the financing and construction of various community development projects from grants received from the U.S. Department of Housing and Urban Development. I 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. I Downtown Development Authority Fund - This fund accounts for funding it receives from the County and from special tax on downtown merchants. I State Capital Grants Fund ~ This fund accounts for receipt and expenditure of the State Capital Grant, which is restricted for capital expenditures only. I Law Library Fund - This fund accounts for revenue and expenditures of the Law Library. I 5% Crime Victim's Assistance Fund - This fund accounts for the 5% surcharge on certain fmes with the proceeds used for a victim's assistance program. Supplemental Juvenile Service Fund - This fund accounts for supervisory fees collected on juvenile cases. I Building Inspection Fund - This fund accounts for building inspection revenues and expenditures. -I Weed and Seed Federal Grant Fund - This fund accounts for a grant designed to target high risk areas for teens and weed out the bad influences and sow the seed for a better life. I 47 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 1 - Summary of significant accounting policies (Continued) Wireless Phase Fund - This fund accounts for activities associated with 911 charges for wireless service. Community Greenspace Fund - This fund is used to acquire real property for the preservation of greenspace, pursuant to the Georgia Greenspace Program as established in OCGA 36-22 et seq. Perpetual Care I Fund - This' fund accounts for monies collected from sale of perpetual care contracts at Government-owned cemeteries after October 1, 1970, as well as receipt of investment earnings on all perpetual care investments and payment of cemetery maintenance expenditures. Landbank Authority - This fund accounts for property owned by the County for the future progress of Augusta, GA. Federal Drug Fund - This fund accounts for activities associated with drug education and enforcement. State Drug Fund - This fund accounts for activities associated with drug education and enforcement. Debt Service Funds 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. Capital Proiects Funds 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 of Housing and Urban Development. Special Sales Tax Phase I Fund - This fund accounts.for fmancing and construction of various road improvement projects. Financing is provided by receipts from a 1987 special one percent local option sales tax referendum. Special Sales Tax Phase II Fund - This fund accounts for fmancing and construction of various construction and road improvements, drainage, jail improvements, and museums. Financing is to be provided by receipts from a 1991 special one percent local option sales tax referendum. Permanent Fund Perpetual care II Fund - This fund accounts for the principal originally donated for the sale of perpetual care contracts at government-owned cemeteries after October 1, .1970. The principal must be maintained intact and invested. The Government reports the following major enterprise funds: Water and Sewer System Fund - This fund is used to account for the activity of providing water and sewer services to the residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, operations, maintenance, fmancing and related debt service, and billing and collection. Augusta Regional Airport at Bush Field Fund - This fund accounts for the operations of Augusta Regional Airport at Bush Field, the only airport within the County from which service from the major airlines is available. 48 f t 'i I) 11 IJ IJ (1 r':l IJ '1 I; -\ IJ I] I] ! PI I; ( I IJ I; I) 11 r I: :1 -,I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 ,I Note 1 - Summary of significant accounting policies (Continued) The Government reports the following nonmajor enterprise funds: ~ ,I ~ ,I Waste Management Fund - This fund accounts for the provision oflandfill 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. 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. , :1 '1 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 expenses related to Daniel Field Airport. ,I Newman Tennis Center Fund - This fund accounts for receipt and expenses related to the operations at Newman Tennis Center. Garbage Collection Fund - This fund accounts for receipt and expenses related to the Government's garbage collection contract. JI Riverwalk Fund - This fund accounts for receipt and expenses related to the Government's Riverwalk. ,I- Additionally, the Government reports the following fund types: 11 Pension Trust Fund - The Government has pension trust funds that account for the Government's employees' pension plans. The Government maintains the following pension trust funds: 1945 Pension Trust Fund, 1977 Pension Trust Fund, and the General Retirement Fund. I Private Purpose Trust Fund - The Government has a private-purpose trust fund that accounts for resources legally held in trust 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. The Government maintains the following private-purpose trust fund: Joseph R. Lamar Fund. I Agency Funds - Agency funds are custodial in nature and do not involve the measurement of operating results. Agency funds are used to account for assets the Government holds on behalf of others. The Government maintains the following agency funds: Tax Commissioner, which accounts for tax billings, collections and remittances made by the Tax Commissioner on behalf of the County and other governmental agencies; Probate judge, which accounts for the receipt and disbursement of licenses and other fees collected by the Probate Judge; .Sheriff's Department, which accounts for the receipt and disbursement of funds collected by the department from individuals posting bond; Civil Court, which accounts for the receipt and disbursement of court-ordered fmes, fees and garnishments made on behalf of third parties; and Clerk of Court, which accounts for the receipt and disbursement of court-ordered fmes and fees made on behalf of third parties and traffic violation fmes. "I I ,I I -:1 .1 49 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 1 - Summary of significant accounting policies (Continued) C. Measurement Focus and Basis of Accounting Government-wide. Proprietary and Fiduciary Fund Financial Statements - The government-wide, proprietary fund and fiduciary fmancial statements are reported using the economic resources measurement focus, except for agency funds which have no measurement focus. The government-wide, proprietary fund and fiduciary financial statements are reported using the accrual basis on accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Government gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have be,en satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges, provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Government enterprise funds are charges to customers for sales and services. The Government also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this defmition are reported as nonoperating revenues and expenses. Governmental Fund Financial Statements - Governmental funds are reported using the current fmancial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period. The Government considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, expect for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other fmancing sources. Those revenues susceptible to accrual are property taxes, licenses, interest revenues and charges for services. State- shared revenues collected and held by the state at year-end on behalf of the Government also are recognized as revenue. Fines, fees and permits are not susceptible to accrual because generally they are not measurable until received in cash. Grant revenues which are unearned at year-end are recorded as unearned revenues. Under the terms of grant agreements, the Government funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to fmance the program. It is the Government's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. 50 11 11 ~l I] Ill. _I fJ ~, IJ 11 I] 11 11 '~"1 IJ IJ Ii I: I; I. I; I~ I I I I I I I I I I I I I I I I I I I I AUljU~TA, liEUKlWIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 1 - Summary of significant accounting policies (Continued) D. Budgets and budgetary accounting The Government generally follows these procedures in establishing the budgetary data reflected in the [mancial statements: 1. Budgetary hearings are held in October to discuss departmental budgets. 2. The Finance Committee presents the tentative budget to the Commission in November. 3. The permanent budget is legally adopted by the Commission prior to the start of the next fiscal year. 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 Government's Administrator. The Augusta-Richmond County Commission must approve revisions that alter the total expenditures of any department or fund. Budgets for capital items are reappropriated in the ensuing year's budget. Departments may request for other budget items to be reappropriated in the form of a budget adjustment, contingent of the Commission's approvaL 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 accounting principles generally accepted in the United States of America (GAAP). Budget information for expenditures represents the operating budget (as amended) as approved by the Augusta- Richmond County Commission. E. Encumbrances 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 for outstanding purchase orders do not lapse at year end. Therefore, they are reported as reservations of fund balance. F. Cash and cash equivalents The Government 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 of [mancial statement presentation. Interest income is allocated to each fund monthly based on its average monthly balance. For the purposes of financial statement presentation, the Government considers all highly liquid investments with an original maturity of one year or less, or with insignificant early withdrawal penalties, to be cash equivalents. Exceptions include the Government'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. The State statutes authorize the Government 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. 51 .tt..'-'U'-'", J..tt.., 'U~Vn.UJ..tt.. Notes to Financial Statements - Continued Year Ended December 31,2003 Note 1 - Summary of significant accounting policies (Continued) G. Investments Investments are reported at fair value. Fair value is determined as follows: short-term investments are reported at cost, which approximates fair value; securities traded on national exchanges are valued 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 appraised values. H. Inventories and prepaid expenses Inventories in the governmental funds are valued at cost using the first-in, first-out method. Inventories in the proprietary funds are valued at the lower of cost (fIrst-in, first-out) or market. The costs of governmental fund-type inventories and prepaid expenses are recorded as expenditures when consumed rather than when purchased. Reported inventories and prepaid expenses are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources". I. Interfund receivables/payable and Internal Balances During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet of the fund fmancial statements and as "internal balances" on the statement of net assets in the government-wide fmancial statements. J. Bond discounts and issuance costs Bond discounts and issuance costs for proprietary funds are deferred and amortized over the term of the bonds using the effective-interest method. Bond discounts are presented as a reduction of the face amount of bonds payable, whereas issuance costs are recorded as deferred charges. K. Restricted assets Certain assets of the Debt Service Fund and Enterprise Funds are classified as restricted assets on the balance sheet because their use is limited by applicable debt covenants. L. Capital assets Capital assets are defined by the government as assets with an initial, individual cost of more than a certain cost and an estimated useful life in excess of one year. Minimum capitalization costs are $5,000 for all categories of capital assets. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. General infrastructure assets acquired prior to January 1, 2001, consist of the streets network that were acquired or that received substantial improvements subsequent to January 1, 1980. The streets network is reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Depreciation is computed using the straight-line method. A summary of the estimated useful lives is as follows: Vehicles Furniture and fIxtures Machinery and equipment Buildings and improvements Water and Sewer systems Infrastructure 5 years 7 years 10 years 20 years 30 years 30 years 52 II I~ r=j IJ Il 11 f] I~l (1 IJ '--1 I! I] 11 I! Ii I: I: I, I I) I I I I I ,I I I I I I I I I I I I -I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 1 - Summary of significant accounting policies (Continued) M. Compensated absences The vacation policy of the City provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Government's government-wide fmancial statements and proprietary fund fmancial statements, an expense and a liability for compensated absences and the salary-related payments are recorded as leave is earned. The Government has assumed a frrst-in, first-out method of using accumulated compensated time. The portion of that time that is estimated to be used in the next fiscal year has been designated as a current liability in the government-wide financial statements. No accrual has been established for accumulated sick leave of employees since it is the Government's policy to record the cost of sick leave only when it is used. N. Use of estimates The preparation of fmancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Note 2 - Stewardship, compliance and accountability A. Excess of expenditures over appropriations Nonmajor Governmental Funds Law Library Special Assessment Downtown Development Authority 5% Crime Assistance Expenditures Budget Actual Variance Positive (Negative) $ - $ 1,257,020 426,320 383,000 $ 15 1,525,129 672,780 397,654 (15) (268,109) (246,460) (14,654) B. Fund Balance or Net Assets Following is a detail of funds with deficit fund balances or net assets. The Government plans to fund the deficits through the general operations of the Government. Nonmajor Governmental Funds Emergency Telephone System Special Assessment Downtown Development Authority Law Library $ (133,726) (16,177) (86,794) (22,576) $ (201,647) (608,281) Nonmajor Enterprise Funds Newman Tennis Center Garbage Collection Note 3 - Detailed notes on all funds A. Deposits and investments At December 31, 2003, the Government's cash and temporary investments balance on the 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 Government's name. 53 AUliUSTA, liJi;URGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) The local government investment pool "Georgia Fund I", created by O.C.G.A. ~36-83-8, is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-71ike pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. At December 31, 2003, the carrying amount of the Government's deposits with financial institutions was $81,225,297 and the bank balance was $82,715,798. Amount insured by the FDIC Amount collateralized with securities held by pledging institutions in the Government's name $ 700,000 82,015,798 Total bank balance of deposits $ 82,715,798 The Government's investments are shown by type, carrying amount, market value and level of risk assumed in the holding of the various securities. At December 31, 2003 the County's cash and investment balances were as follows: Category Carrying Market 2 3 Amount Value Repurchase agreements $ 137,875,140 $ - $ - $ 137,875,140 $ 137,875,140 U.S. Government securities 22,446,692 41,147,399 63,594,091 63,594,091 Corporate securities 17,038,735 219,360 17,258,095 17,258,095 Equity securities 47,391,791 47,391,791 47,391,791 Local government investment pool 139,394,383 139,394,383 Carrying amount of deposits with financial institutions 81,225,297 81,225,297 Deposits with investment houses 4,314,440 4,314,440 Certificates of deposits held by investment houses 4,672,252 4,672,252 Cash on hand 25,754 25,754 $ 495,751,243 $ 495,751,243 The investments that are represented by specific identifiable investment securities are classified as to credit risk. 54 Il I 11 Il Il ,-, IJ (1 "-1 IJ 11 r-'1 IJ 'j IJ I) 11 I] I~ I) I; I I, ; 1 Receivables: Taxes $ Accounts ,I ~~~t Intergovernmental Gross receivables Less: allowance for I uncollectibles , Net total receivables $ I , ;1 :1 ;1 ;1 , :1 ,I ,I 'I , ,I ,I I I ,I -I I AU(;USTA, GEURGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) The levels of risk assumed in the various investments are categorized as follows: Category 1: includes the investments that are insured or registered or for which the securities are held by the Government or its agent in the Government's name. 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 Government's name. 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 Government's name. In addition on June 30, 2003, the carrying amount of the Department of Health's deposits was $1,667,735 and the bank balance was $2,163,371. Of the bank balance, $400,000 was covered by federal depository insurance; the remaining balance of $1,763,371 was covered by collateral held by the financial institution's agent in the Department's name. The Department's deposits were composed of the following amounts: Governmental activities Fiduciary activities - agency funds $ 1,200,480 467,255 $ 1,667,735 B. Receivables Property taxes are administered on a calendar year basis subject to the following dates: Lien date Levy date Collection period Due date January I August 15 September 15 - November 15 November 15 Receivables at December 31, 2003, including the applicable allowances for uncollectible accounts, consist of the following: General Special Special Fire Sales Tax Sales Tax Water and Bush Protection Phase ill Phase IV Sewer Field $ 543,950 $ $ $ $ $ 133,298 2,397,570 6,207,262 772,198 26,719 913,235 Nonmajor Nonmajor Governmental Enterprise Funds Funds Total 2,978,043 $ 1,296,602 $ 9,095,853 882,832 654,049 16,198,929 86,667 1,312 1,027,933 661,656 761,656 217,306 881,359 1,509,099 4,826,504 2,833,322 28,593,470 (439,250) (864,071) (2,469,224) 4,387,254 $ 1,969,251 $ 26,124,246 4,277,258 5,151,720 100,000 57,227 9,586,205 353,207 1,125,405 543,950 160,017 2,397,570 7,120,497 (774,312) 8,811,893 $ (21,091) 522,859 $ (270,500) 6,849,997 $ (100,000) 1,025,405 $ 160,017 $ 2,397,570 $ Total Adjustments to Full Accrual Total Taxes Accounts Interest Note Intergovernmental $ 9,095,853 16,198,929 1,027,933 761,656 1,509,099 $ $ 9,095,853 19,267,581 1,027,933 3,555,825 1,509,099 3,068,652 2,794,169 Allowance (2,469,224) (2,469,224) Net total receivables $ 26,124,246 $ 5,862,821 $ 31,987,067 55 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) Adjustments to full accrual relate to long-term notes receivable and internal service funds. Internal service funds predominately serve the governmental funds. Accordingly, the internal service funds receivables balances are included in goveinmental activities on the accompanying government-wide financial statement. For the above-mentioned long-term notes receivable, the bank maintains records that are not recorded in the governmental fund [mancial statements. These loans represent funds received through HUD's Housing Rehabilitation Program. 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 of rental 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. In the governmental fund financial statements, repayments of these loans are recorded as other revenue in the Housing and Neighborhood Development Fund, a nonmajor special revenue fund. Finally, the Fiduciary fund fmancial statements include $24,807,936 in taxes receivable recorded in agency funds. This amount is excluded from the foregoing schedule and represents the amount of receivables billed on behalf of other governments in an agency relationship. Also, included in the Fiduciary fund fmancial statements and excluded from the foregoing schedule are interest receivable totaling $586,485in the pension trust fund. 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 Government 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 ftnancial statements. 56 I~ I~ IJ I~ I] I~ ~'l II 1-] IJ I~ 1-1 IJ I] IJ I~ I' , ; I: I I: I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2003 Note 3 - Detailed notes on all funds (Continued) I c. Capital assets A summary of changes in capital assets is as follows: I Governmental Activities January I, December 31, 2003 Additions Disposals 2003 I Capital assets, not being depreciated Land $ 15,784,481 $ 867,474 $ - $ 16,651,955 Construction in process 78,716,156 15,051,719 (4,223,191) 89,544,684 Total capital assets not being depreciated 94,500,637 15,919,193 (4,223,191) 106, 196,639 I Other capital assets: Land and Site Improvements 9,314,207 1,463,085 10,777,292 Buildings 67,250,535 2,287,956 69,538,491 I Building improvements 6,631,102 83,068 6,714,170 Vehic1es 23,297,902 3,581,976 (912,162) 25,967,716 Machinery and equipment 7,318,138 370,098 7,688,236 I T - hardware 2,011,277 327,912 2,339,189 I IT - software 1,170,009 472,141 1,642,150 Fumiture and fixtures 1,087,487 1,087,487 Infrastructure 41,516,495 569,503 42,085,998 Richmond County Public Facilities 12,655,483 12,655,483 I Total other capital assets 172,252,635 9,155,739 (912,162) 180,496,212 Less accumulated depreciation for: I Land and site improvements (4,132,789) (428,848) (4,561,637) Buildings (18,819,592) (2,073,161 ) (20,892,753) Building improvements (1,578,576) (327,605) (1,906,181) Vehic1es (13,476,034) (3,586,761) 912,162 (16,150,633) I Machinery and equipment (4,087,414) (596,398) (4,683,812) I T - hardware (1,370,204) (341,756) (1,711,960) IT - software (797,766) (201,313) (999,079) I Furniture and fixtures (1,054,565) (7,049) (1,061,614) Infrastructure (4,755,897) (1,325,515) (6,081,412) Richmond County Public Facilities (10,546,236) (10,546,236) Leasehold Improvements (5,616) (5,616) I Total accumulated depreciation (60,619,073) (8,894,022) 912,162 (68,600,933) Other capital assets, net 111,633,562 261,717 111,895,279 I Governmental activities capital assets, net $ 206,134,199 $ 16,180,910 $ (4,223,191) $ 218,091,918 Depreciation expense was charge to functions as follows: Governmental activities I Generalgovemment $ 3,301,308 Judicial 1,407,371 Public safety 2,859,656 I Health and welfare 94,105 Culture and recreation 1,129,837 Housing and development 5,130 Fleet 76,917 I Risk Management 19,698 $ 8,894,022 -I I 57 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) Business- Tvpe Activities: Balance Balance December 31, December 31, 2002 Additions Disposals 2003 Water and Sewer Capital assets, not being depreciated: Land $ 4,292,942 $ 2,734,017 $ - $ 7,026,959 Construction in progress 32,134,462 56,332,927 (6,884,606) * 81,582,783 Total capital assets not being depreciated 36,427,404 59,066,944 (6,884,606) 88,609,742 Other capital assets: Buildings 38,959,592 66,565 39,026,157 Vehicles 4,695,678 929,649 (417,667) 5,207,660 Machinery and equipment 5,641,631 503,697 (150,106) 5,995,222 Furniture and fixtures 421,374 421,374 Other capital 2,057,262 32,814 2,090,076 Water and sewerage systems 233,782,225 7,083,076 240,865,301 Contributed water and sewerage systems 10,563,423 10,563,423 Total capital assets being depreciated 296,121,185 8,615,801 (567,773) 304,169,213 Less accumulated depreciation for: Buildings (19,500,163) (1,204,305) (20,704,468) Vehicles (2,800,446) (1,118,153) 417,667 (3,500,932) Machinery and equipment (4,582,292) (359,155) 149,713 (4,791,734) Furniture and fixtures (410,891) (10,482) (421,373) Other capital (1,866,086) (107,405) (1,973,491) Water and sewerage systems (78,436,338) (6,711,900) (85,148,238) Contributed water and sewerage systems (5,364,821) (508,415) (5,873,236) Total accumulated depreciation (112,961,037) (10,019,815) 567,380 (122,413,472) Other capital assets being depreciated, net 183,160,148 (1,404,014) (393) 181,755,741 Water and sewer capital assets, net $ 219,587,552 $ 57,662,930 $ (6,884,999) $ 270,365,483 * Disposals in Construction in progress are shown as additions to Capital assets being depreciated. 58 ~1 II I Il Ii Il 11 11 11 11 11 11 11 I; I) I: I' Ii I I' I ~I JI ':1 ~I ;1 ,I ,I ;1 ,I ,I ;1 ,I ,I ,I "I ,I -.1 ,I 59 AUuUSTA, uJ!:UKuIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on aU funds (Continued) Balance Balance December 31, December 31, 2002 Additions Disposals 2003 Nonmaior entemrise funds Capital assets, not being depreciated Land $ 2,616,361 $ - $ - $ 2,616,361 Construction in process 277,310 299,001 576,311 Total capital assets not being depreciated 2,893,671 299,001 3,192,672 Other capital assets: Site and building improvements 1,729,712 152,415 1,882,127 Landfill Cell IIC 9,399,876 9,399,876 Buildings 3,212,244 3,212,244 Vehicles 4,608,272 198,759 (33,931) 4,773,100 MachineI)' and equipment 2,446,658 48,869 (169,797) 2,325,730 Furniture and fixtures 11,385 1l,385 Total capital assets being depreciated 21,396,762 411,428 (203,728) 21,604,462 Less accumulated depreciation for: Site and building improvements (1,041,843) (67,371) (1,109,214) Landfill Cell IIC (7,519,901) (935,747) 12,472 (8,443,176) Buildings (1,017,378) (102,535) (1,1l9,913) Vehicles (2,510,928) (493,417) 33,931 (2,970,414) MachineI)' and equipment (1,447,816) (104,316) 107,125 (1,445,007) Furniture and fixtures (759) (759) Total accumulated depreciation (13,537,866) (1,704,145) 153,528 (15,088,483) Other capital assets, net 7,858,896 (1,292,717) (50,200) 6,515,979 Nonmajor enterprise funds, net 10,752,567 (993,716) (50,200) 9,708,651 Business-type activities capital assets, net $ 254,301,233 $ 60,256,190 $ (9,047,922) $ 305,509,501 Depreciation expense was charged to business-type activities as follows: Waste management Water and sewer Augusta regional airport Municipal golf course Daniel Field airport Transit $ 1,068,939 10,019,815 1,555,972 44,831 66,606 523,769 $ 13,279,932 60 '-'1 II il t Il 11 IJ r-l IJ 11 '-1 IJ '-1 IJ r') Ii '-, I] '] IJ -j I] I' "~ " I; I~ I I~ AUliU~TA, liEUKlilA 1 Notes to Financial Statements - Continued I Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) I Capital asset activity for the Department of Health for the year ended June 30, 2003 was as follows: I July 1, June 30, 2002 Additions Disposals 2003 Capital assets, not being depreciated Land $ 1,287,797 $ 150,000 $ $ 1,437,797 Other capital assets: Buildings 5,324,398 654,087 5,978,485 Improvements 595,153 595,153 Equipment 82,129 17,700 99,829 Vehicles 134,215 32,586 (34,335) 132,466 6,135,895 704,373 (34,335) 6,805,933 Less accumulated depreciation (648,008) (190,980) 31,586 (807,402) Other capital assets, net 5,487,887 513,393 (2,749) 5,998,531 Governmental activities capital assets, net $ 6,775,684 $ 663,393 $ (2,749) $ 7,436,328 D. Accounts payable and accrued liabilities I I I I I Payables for the Government at December 31, 2003 were as follows: I Fund Financial Statements Special Special Augusta Nonmajor Nonrnajor Fire Sales Tax Sales Tax Water and Regional Governmental Proprietary General Protection Phase ill Phase IV Sewer Airport Funds Funds Total I Payables: Accounts , payable $ 1,728,499 $ 78,613 $ 474,258 $ 907,402 $ 6,666,104 $ 636,191 $ 1,066,686 $ 741,763 $ 12,299,516 Accrued interest 3,948,582 3,948,582 Accrued salaries I and vacation 2,469,406 620,241 61,242 633,225 186,943 155,952 305,548 4,432,557 Other accrued liabilities 1,412,755 77,939 162,907 1,653,601 T ota! accounts I payable and accrued liabilities $ 5,610,660 $ 698,854 $ 474,258 $ 968,644 $ 11,247,911 $ 823,134 $ 1,300,577 $ 1,210,218 $ 22,334,256 I Payables: Accounts payable Accrued interest Accrued salaries and vacation Other accrued liabilities Government-wide Financial Statements Adjustments to Total Full-Accrual Total 12,299,516 $ 3,948,582 I 4,432,557 1,653,601 828,474 $ 13,127,990 95,100 4,043,682 (556,928) 3,875,629 1,653,601 366,646 $ 22,700,902 Total accounts payable and accrued liabilities $ 22,334,256 $ I Adjustments to full-accrual basis include $95,100 related to accrued interest on governmental long-term debt, $(556,628) relating to the reclassification of accrued vacation from accrued liabilities to liabilities due within one year, and the remaining balance of $828,474 related to internal service funds. Internal service funds predominately serve the governmental funds. Accordingly, the accounts payable and accrued liability balances for the internal service funds are included in the governmental activities on the accompanying government-wide financial statement. I -I I 61 AUljU~lA, hEUKt:ilA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) Also, the fiduciary fund fmancial statements include $9,167 in other liabilities recorded in pension trust funds. This amount is excluded from the foregoing schedule and represents amounts due to various other agencies, individuals or governments. E. DeferredlUnearned Revenues The balance of deferred revenues in the fund fmancial statements (includes both the deferred and unearned amounts disclosed below) and unearned revenues in the government-wide financial statements at year end is composed of the following elements: Taxes receivable net of allowance - General Fund Taxes receivable net of allowance - Fire Protection Fund Taxes receivable net of allowance - Nonmajor governmental funds Grant income received in advance of being earned - General Fund Grant income received in advance of being earned - Nonmajor governmental funds Business license income received in advance of being earned - General Fund Insurance premium income received in advance of being earned - Fire Protection Fund Deferred Unearned Revenue Revenue $ 3,254,351 $ 426,048 2,190,395 432,410 477,239 807,690 8,384,068 $ 5,870,794 $ 10,101,407 F. Landfill closure and postclosure costs State and Federal laws and regulations require the Government to place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $11,800,706 as of December 31, 2003, which is based on 84.70% usage (filled) of Cell II C which is operating currently, and 100% usage (filled) of Cells II A and II B. This liability is recorded in the Waste Management Enterprise Fund. It is estimated that an additional $1,307,661 will be recognized as closure and postclosure care expenses between the date of the statement of net assets and the date the landfill is expected to be filled to capacity, which is in the next 2.05 years. The estimated total current cost of the landfill closure and postclosure care, $13,108,366, 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, 2003. 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 Government 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 Government. G. Long-term debt 1. Governmental activities General Obligation Bonds $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. $ 62 f] 11 11 Il 11 IJ 11 11 IJ 11 IJ I] 11 11 Ii I, IJ I) I, , ,I ~I ~I 11 ,I :1 ,I :1 11 ,I II ;1 ,I ,I ,I I I ~I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) 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. Government 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 government-wide financial statements Funds. As of December 31,2003, the amount of defeased debt outstanding but removed from the governmental debt is $1,355,000. Notes pavable Housing and Neighborhood Development: Section 108 loan - due in annual installments of $65,000 to $1,010,000, plus interest at 9%, through August 2005. $ 1,080,000 Revenue bonds Downtown Development Authority: $2,600,000 1989 Downtown Development Authority Bonds - due in annual installments of $125,000 to $270,000, plus interest at 7.4% through January 2010. $ $3,816,000 1990 Downtown Development Authority Bonds - due in annual installments of $170,000 to $375,000, plus interest at 7.55%, through January 2010. $4,035,0002003 Downtown Development Authority Bonds - due in annual installments of $535,000 to $615,000, plus interest at 2.56%, through January 2010. 4,035,000 Augusta Port Authority: $1,200,0001993 Augusta Port Authority Bonds - due in monthly principal and interest installments of $9,773 through April 2008. 457,440 Total $ 4,492,440 Certificates of Participation GMA Leases Fund: $16,888,000 Certificates of Participation - principal due in a lump sum payment on June 1,2028. Interest only payments are due annually at a rate of 4.75%, through June 1,2028. Original issue amount $ 16,888,000 Original issue discount (898,307) Total $ 15,989,693 Notes Payable Revenue Bonds Certificates of Participation Total Year ending December 31 Principal Interest Principal Interest Principal Interest Principal Interest 2004 $ 70,000 $ 125,064 $ 675,704 $ 118,206 $ - $ 802,180 $ 745,704 $ 1,045,450 2005 1,010,000 123,016 635,317 98,689 802,180 1,645,317 1,023,385 2006 655,923 79,195 802,180 655,923 881,375 2007 686,843 58,876 802,180 686,843 861,056 2008 623,653 39,032 802,180 623,653 841,212 2009-2013 1,215,000 31,296 4,010,900 1,215,000 4,042,196 2014-2018 4,010,900 4,010,900 2019-2023 4,010,900 4,010,900 2024 - 2028 16,888,000 3,542,962 16,888,000 3,542,962 $ 1,080,000 $ 248,080 $ 4,492,440 $ 425,294 $ 16,888,000 $ 19,586,562 $ 22,460,440 $ 20,259,936 63 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds and account groups (Continued) On April 15, 2003, the County issued Downtown Development Authority of the City of Augusta Refunding Revenue Bonds, Series 2003, in the aggregate principal amount of $4,035,000, with interest rate of 2.56%, to current refund $3,690,000 of outstanding Downtown Development Authority of the City of Augusta Revenue Bonds, Series 1989, with interest of 7.4% and Downtown Development Authority of the City of Augusta, Georgia Parking Revenue Bonds, Series 1990, with interest of 7.55%. The net proceeds of $3,961,834 (after payment of $68,600 of issuance costs and $4;566 of additional proceeds) were used to repay the Series 1989 and Series 1990 Downtown Development Authority Revenue Bonds. The County completed the current refunding to reduce its total debt service payments over the next 7 years by $448,624 and .to obtain an economic gain (difference between the present values of the old and new debt service payments) of approximately $400,000. Certificates ofParticioation In June 1998, the Government entered into a lease pool agreement with the Georgia Municipal Association. (the "Association"). The funding of the lease pool was provided by the issuance of $150,126,000 Certificates of Participation by the Association. The Association passed the net proceeds through to the participating municipalities with the Government's participation totaling $16,888,000, shown net of original issue discount of 898,307 at $15,989,693. The lease pool agreement with the Association provides that the Government owns their portion of the assets invested by the pool and is responsible for the payment of their portion of the principal and interest of the Certificates of Participation. The principal of $16,888,000 is due in a lump sum payment on June I, 2028. Interest is payable at a rate of 4.75% each year. The Government draws from the investment to lease equipment from the Association. The lease pool agreement requires the Government to make lease payments back into its investment account to fund the principal and interest requirements of the 1998 GMA Certificates of Participation. Equipment in the amount of$3,176,124 was leased during 2003. 2. Business-we activities Revenue bonds Water and Sewer: $149,400,0002002 Water and Sewer Bonds - due in annual installments of $235,000 to $20,610,000 starting October 2002 thru October 2032, plus interest varying from 2/5-% to 5.75% on $57,840,000 serial bonds, with interest of5.0% on $91,560,000 term bonds. $ 148,260,000 $97,080,0002000 Water and Sewer Bonds - due in annual installments of $355,000 to $11,105,000, plus interest at 4.4% to 5.25% through October 2030. 97,080,000 $66,640,0001996 Water and Sewer Bonds - due in annual installments of$920,000 to $4,445,000, plus interest at 3.6% to 6.25% through October 2028 (this liability is reflected in the Water and Sewer Fund net of deferred refunding amount of $2,020,740). 59,620,000 $5,910,0001997 Water and Sewer Bond - due in annual installments of$100,000 to $400,000, plus interest at 3.6% to 5.25%, through October 2021. (This liability is reflected in the Water and Sewer Fund net of deferred refunding amount of $41 0,549). 4,890,000 Total Less: Deferred refunding amounts Less: Bond issue discounts 309,850,000 (2,331,961) (4,758,856) Total $ 302,759,183 64 11 Il Il Il Ii 11 11 11 r'-'"l II 11 I] I] 11 I) I] I; I; I I I I I I I I I I I I I I I I I I I -I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) 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. $ 3,710,613 State revolving loan - principal and interest due in quarterly installments of $119,392, plus interest at 4%, through July 2019. 5,496,768 Total $ 9,207,381 Business-type Activities Year ending Notes Payable Revenue Bonds Total December 3 1 Principal Interest Principal Interest Principal Interest 2004 $ 428,936 $ 307,911 $ 2,255,000 $ 15,610,614 $ 2,683,936 $ 15,918,525 2005 512,729 343,511 2,340,000 15,513,920 2,852,729 15,857,431 2006 533,548 322,692 2,785,000 15,421,480 3,318,548 15,744,172 2007 555,212 301,028 3,950,000 15,307,550 4,505,212 15,608,578 2008 577,756 278,484 4,825,000 15,122,208 5,402,756 15,400,692 2009-2013 3,260,308 1,020,890 34,800,000 71,676,925 38,060,308 72,697,815 2014-2018 2,987,762 346,759 46,240,000 61,971,719 49,227,762 62,318,478 2019-2023 351,130 7,046 59,435,000 48,773,725 59,786,130 48,780,771 2024-2028 76,555,000 31,655,862 76,555,000 31,655,862 2029-2033 76,665,000 9,903,163 76,665,000 9,903,163 $ 9,207,381 $ 2,928,321 $ 309,850,000 $ 300,957,166 $ 319,057,381 $ 303,885,487 During 2002, the Government issued $149.4 million in Series 2002 Water and Sewerage Revenue bonds. A portion of the proceeds from the sale of these bonds was used to pay the outstanding balance of the Georgia Environmental Facilities Authority revolving loan in the amount of $8,815,000 with an interest rate of 5.5%. The remaining portion of the bond proceeds $140,585,000 was issued for the purpose of financing the costs of making additions, extensions and improvements to the Utility's water and sewer system. A portion of the net proceeds of $8,692,368 (after payment of $153,574 of underwriting fees and other issuance costs) was used to repay the Georgia Environmental Facilities Authority revolving loan. The remaining portion of the proceeds of $125,691,320 (after payment of $2,748,066 of underwriting fees and other issuance costs) plus an additional $11,753,672 of funds from a capitalized interest fund is to be used for improvements to the Utility's water and sewer system. No difference resulted in the current refunding between the reacquisition price and the net carrying amount of the old debt. The Government completed the refunding to obtain an economic gain (difference between present values of the old and new debt service payments) of approximately $792,000. During 2000, the Government issued $97.08 million in Series 2000 Water and Sewer Revenue bonds for the purpose of financing the costs of making additions, extensions and improvements to the Utility's water and sewer system. During 1996, the Government 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 advance refund all of the former City of Augusta's Series 1972 and 1991 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. 65 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 3 - Detailed notes on all funds (Continued) In 1997, the Government 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 have been removed from the Water and Sewer Fund. As of December 31, 2003, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund is $2,595,281. The advance refunding during 1996 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 financial 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 approximately $260,000. The advance refunding during 1997 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 bonds payable, is being charged to operations through the year 2021 using the effective-interest method. The refunding will increase total debt service payments over the next 24 years by approximately $2.1 million and will produce an economic gain of approximately $110,000. The Department of Health's long-term liabilities represent compensated absences. The debt for compensated absences was $563,942 at June 30, 2003. H. Leases The Government has entered into several long-term lease agreements for various vehicles and machinery and equipment. Although the leases contain clauses which provide that the leases are cancelable if funds are not appropriated for the periodic payments for any future fiscal periods, the leases meet the criteria of a capital lease as defmedby Statement of Financial Accounting Standards No. 13 Accounting for Leases and the National Council on Governmental Accounting Statement No. 5 Accounting and Financial Reporting Principles for Lease Agreements of State and Local Governments. The Government's lease agreements are through the Georgia Municipal Association and are accounted for in an internal service fund. Interest amounts are not material to the fmancial statements. Future minimum lease payments under the leases and the net present value of the minimum lease payments as of December 31,2003 are as follows: Governmental Business-type Activities Activities 2004 $ 1,326,735 $ 547,190 2005 901,195 286,141 2006 90,302 2007 24,063 Present value of lease payments $ 2,342,295 $ 833,331 66 11 tl 11 '-1 IJ 11 ~-1 II (J I~J Ij (1 I'] I] Ij I~ I: I' 1-, I~ Ii I I I I I I I I I I ,I I I I I I I -I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) The Government is lessor of terminal space, land and buildings at Augusta Regional Airport at Bush Field and Daniel Field under various operating leases. Revenues and related expenses for Augusta Regional Airport at Bush Field are recorded in the Augusta Regional Airport at Bush Field Fund while the revenue and related expenses for Daniel Field are recorded in the Daniel Field Airport Fund. Some of the leases provide for additional payments based on usage activity in addition to non-cancelable amounts of fixed rates. During 2003, rental income totaled approximately $2.lmillion and $91,000 in the Augusta Regional Airport at Bush' Field and Daniel Field Airport Funds, respectively. The assets acquired through capital leases as of December 31, 2003 are as follows: Governmental Business-type Activities Activities Vehicles $ 13,061,844 $ 2,503,270 Machinery and equipment 2,495,395 1,747,129 Less: accumulated depreciation (8,349,522) (1,104,169) Carrying value $ 7,207,717 $ 3,146,230 I. Changes in long-term liabilities The following is a summary of long-term debt transactions of the year ended December 31, 2003: Beginning Ending Current Balances Additions Reductions Balances Portion Governmental activities: Bonds and notes payable: General obligation bonds payable $ 350,000 $ - $ 350,000 $ - $ Notes payable 1,145,000 65,000 1,080,000 70,000 Revenue bonds payable 4,597,058 4,035,000 4,139,618 4,492,440 675,704 Total bonds and notes payable 6,092,058 4,035,000 4,554,618 5,572,440 745,704 Certificates of participation 16,888,000 16,888,000 Less: original issue discount (943,222) (44,915) (898,307) (44,915) Total certificates of participation 15,944,778 (44,915) 15,989,693 (44,915) Other liabilities: Compensated absences 3,213,298 3,569,693 3,122,569 3,660,422 3,660,422 Capital leases 3,740,023 2,3 17,703 3,715,431 2,342,295 1,326,735 Claims and judgments 1,064,635 1,671,958 1,311,409 1,425,184 1,425,184 Total other liabilities 8,017,956 7,559,354 8,149,409 7,427,901 6,412,341 Governmental activities long-term liabilities $ 30,054,792 $ 11,594,354 $ 12,659,112 $ 28,990,034 $ 7,113,130 67 AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 3 - Detailed notes on all funds (Continued) Beginning Ending Current Balances Additions Reductions Balances Portion Business-type activities: Revenue debt: Revenue bonds payable $ 312,025,000 $ $ 2,175,000 $ 309,850,000 $ 2,255,000 Less: deferred refunding amounts (2,431,289) ( 99,328) ( 2,331,961) Less: bond issue discounts (4,939,092) (l80,236) ( 4,758,856) Total revenue debt 304,654,619 1,895,436 302,759,183 2,255,000 Other liabilities: Compensated absences 566,728 584,830 558,331 593,227 593,227 Notes payable 9,683,367 475,986 9,207,381 428,936 Capital leases 1,010,882 858,421 1,035,972 833,331 547,190 Closure/postc\osure accrual 11,022,500 817,227 39,021 1l,800,706 Total other liabilities 22,283,477 2,260,478 2,109,310 22,434,645 1,569,353 Business-type activities long-term liabilities $ 326,938,096 $ 2,260,478 $ 4,004,746 $ 325,193,828 $ 3,824,353 J. Interfund balances and activities Due Fromffo Other Funds The composition of interfund balances as of December 31, 2003 are as follows: Due to other funds Water and Due from General Sewer Bush Nonmajor Nonmajor Internal Trust and other funds Fund Fund Field Governmental Enterprise Service Agency Total General Fund $ $ 5,702,212 $ 1,663,879 $ 1,141,568 $ 3,538,534 $ 433,451 $ 1,448,563 $ 13,928,207 Fire Protection Fund 53,531 53,531 Nonmajor Governmental Funds 162,357 162,357 Nonmajor enterprise funds 72,710 72,710 Trust and agency funds 100,000 100,000 Total interfunds balances $ 100,000 $ 5,702,212 $ 1,663,879 $ 1,141,568 $ 3,538,534 $ 433,451 $ 1,737,161 $ 14,316,805 Amounts were due to other funds primarily for timing of payments from agency funds. Transfers TolFrom Other Funds Transfers in (out) for the year ended December 31, 2003 are summarized below: Fire General Protection Bush Nonmajor Nonmajor Trust Transfers out Fund Fund Field Governmental Enterprise & Agency Total General Fund $ - $ $ $ 406,831 $ $ $ 406,831 Special Sales Tax Phase IV 18,370 18,370 Bush Field 50,000 50,000 Nonmajor governmental 1,805,740 6,012,000 100,000 418,740 4,760,520 1,305,030 14,402,030 $ $ Total transfers $ 1,805,740 6,012,000 $ 100,000 $ 825,571 4,828,890 $ 1,305,030 $ 14,877,231 68 11 Il 11 11 Il 1'"01 j 11 "'1 IJ I] '-~ II '1 I] I) I: I: I: I: I' I I 'I ,I I 'I I ,I .1 ,I )1 :1 jl ;1 ,I ,I .1 :1 ,I -I I AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 3 - Detailed notes on all funds (Continued) Transfers between the nonmajor governmental funds, the General fund and other nonmajor governmental funds were primarily to support the operation of the funds. Note 4 - Other information A. Risk management The Government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Government is self-insured. The Risk Management Funds (an internal service fund) are utilized by the Government to account for and fmance its self-insured risks of loss. The Risk Management Funds are maintained to provide general liability insurance, workers' compensation coverage, and unemployment coverage. The Government is self-insured for workers' compensation coverage through a self- insurance program that is administered under contracts with a third party administrator. Future claims can be paid from designated funds established in 1987 from previously unrestricted-unreserved funds. Balances as of December 31, 2003, include the following: General Fund Fire Protection Fund Internal Service Fund $ 4,705,061 250,000 564,243 Total reserve $ 5,519,304 Related liabilities are reported when it is probable that a loss has occurred and the amount of the 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. The following represents the changes in the balance of claim liabilities for the Government from January 1, 2002 to December 31, 2003: Unpaid claims, January 1,2002 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31,2002 Incurred claims (including IBNRs) Claim payments $ 450,000 1,661,912 (1,047,277) 1,064,635 1,671,958 (1,311,409) Unpaid claims, December 31,2003 $ 1,425,184 B. Contingent liabilities Litigation The Government is party to various legal proceedings which normally occur in governmental operations. The Government follows the practice of recording liabilities resulting from claims and legal actions only when they become probable and measurable. The Government has accrued a liability in the Risk Management Fund (an internal service fund) for all claims for which a loss is probable and measurable. Possible unasserted claims The Government participates in a number of Federal and state assisted grant programs, which are subject to program compliance audits under the Single Audit Act Amendments of 1996. An audit of these programs has been performed for the year ended December 31, 2003, in compliance with the Single Audit Act Amendments of 1996 and OMB Circular A-133. However, the audit is pending final acceptance by the various grantor agencies. The amount, ifany, of expenditures, which may be disallowed by the granting agencies, is expected to be immateriaL 69 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 4 - Other information (Continued) C. Contracts and commitments Augusta-Richmond County Coliseum Authoritv The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt to the extent of the 50% Hotel-Motel Excise Tax and 30% of the Beer Tax collected. D. Richmond County Public Facilities, Inc. The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Intemal Revenue Code Section 501(c)(3). The purpose of this nonprofit organization is to construct and maintain buildings and equipment to be leased by the Government, 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, Georgia, due to the degree of control the Government has over the Board of Directors of Richmond County Public Facilities, Inc. Richmond County Public Facilities, Inc. issued Certificates of Participation to provide funds for the Government to refund the 1990 Certificates of Participation issue and for certain capital projects. The related assets are included in the financial statements of the Government in the General Fixed Asset Account Group. The Certificates of Participation were retired during 200 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 financial statements of the Government. Note 5 - Pension plans A. Plan descriptions, contribution information and funding policies The Government has seven single-employer pension plans and one agent multiple-employer pension plan currently in existence. These plans are defmed benefit plans. The Government also has a single-employer, defmed contribution plan. The following is a summary of funding policies, contribution methods, and benefit provisions for each plan. 70 r f I~ f~ r"l II I~~ IJ IJ C"'l I] I~] (.J _J IJ I~ I~ 1-, I~ I I I I I I I I 1 I I I ,I I I I I I I -I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 5 - Pension plans (Continued) Single-emplover pension plans 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 Government 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 Government is required to contribute the remaining amounts necessary to fund the Plan. If a participant terminates employment prior to completion of ten 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. This is a closed retirement plan (new employees may not participate in the Plan). The 1945 Plan does not issue a stand-alone financial statement report. 1977 Plan The 1977 Plan was available to all former Richmond County full-time employees who were not participants in the 1945 Plan provided that they were not hired after reaching age 60. Normal retirement for the Plan is age 65 or the date when age 62 is attained and an employee completes 25 years of credited service. At that time, the employee is entitled to a monthly benefit equal to 1 % of average earnings multiplied by years of credited service. The Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government 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 4% of earnings. The Government is required to contribute the remaining amounts necessary to fund the Plan. If a participant terminates employment prior to completion of five years of credited service, the participant receives a lump-sum amount equal to his total contributions to the Plan, with interest. After completing at least five 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. This is a closed retirement plan (new employees may not participate in the Plan). The 1977 Plan does not issue a stand-alone financial statement report. The funding policies for the 1945 and 1977 Plans provide for actuarially determined periodic contributions at rates that, for individual employees, remain stable over time so that sufficient assets will be available to pay benefits when due. The attained age aggregate cost method has been used to compute the normal cost for the plan. Any unfunded plan costs are spread over the average future working lifetime of the participants as a level percentage of payrolL The significant actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standard measure of the pension obligation. General Pension Plan, Policemen's Pension Plan. Firemen's Pension Plan and the City Emplovees' Pension Plan These Plans covered former City of Augusta employees. Policemen and firemen hired before 1945 are covered under the General Pension Plan. Policemen hired between 1945 and 1949 are covered under the Policemen's Pension Plan. Firemen hired between 1945 and 1949 are covered under the Firemen's Pension Plan. Other former City of Augusta employees hired between 1945 and 1949 are covered by the City Employees' Pension Plan. Pension benefits are being paid under these Plans to retired employees and beneficiaries. These are closed retirement plans (new employees may not participate in the plans). These plans do not issue stand-alone financial statement reports. 71 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 5 - Pension plans (Continued) General Retirement Plan Employees hired after March 1, 1949 and before March 1, 1987, whose age did not exceed thirty-five years at the time of their employment and are not participants of the 1977 Plan are covered under the General Retirement Plan. Pension benefits vest after an employee is 45 years of age and has 15 years of full-time employment. An employee may retire at age 60 with 25 years of service and receive annual pension benefits equal to 2% of the employee's average salary earned during the last three years of employment, multiplied by the number of full-time years of employment. The Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. All full-time employees hired before July 1, 1980, must contribute 8% of gross earnings to the Plan, with the Government contributing remaining amounts sufficient to provide future pensions. This is a closed retirement plan (new employees may not participate in the Plan). The General Retirement Plan does not issue a stand-alone fmancial statement report. Periodic employer contributions to the pension plan are determined on an actuarial basis using the frozen entry age cost method. The unfunded accrued liability is composed of pieces that are amortized over various periods to comply with Georgia law. When the actuarial value of assets exceeds 150% of the present value of accrued benefits, the Official Code of Georgia Annotated states that there is no minimum required contribution. The significant actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standard measure of the pension obligation. Agent multiple-employer pension plan Georgia Municipal Employees Benefit System (GMEBS) Employees hired after March 1, 1987 and before consolidation on December 31, 1995, and who were not participants in any other employer-sponsored retirement plan are covered under the Georgia Municipal Employees Benefit System. The Plan provides pension benefits, deferred allowances, and death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. A participant may retire after reaching the age of 65 if the 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 1 1/4% of their fmal 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 of full-time employment. Pension provisions include deferred allowances, whereby an employee may terminate his or her employment with the Government after accumulating 10 years of service but before reaching the age of 55. If the employee does not 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 Government must provide annual contributions' sufficient to satisfy the actuarially determined contribution requirements as amended by GMEBS. The GMEBS Retirement Fund issues a publicly available financial report that includes fmancial statements and required supplementary information. That report may be obtained by writing to Georgia Municipal Employees Benefit System, 201 Pryor Street, SW, Atlanta, Georgia 30303. 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 Government'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 those2used to determine the standardized measure of the pension obligation. 72 Il 11 Il Il Il (] 11 I-J IJ 11 '-'1 IJ I) I; I; I; I: I: I I' I ~I -'I :1 "I 11 ,I :1 'I :1 ,I :1 ,I ,I :1 ,I ,I ~I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2003 Note 5 - Pension plans (Continued) Membership of the defmed benefit plans are as follows: Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not yet receiving benefits Active Plan members 1945 Plan 1977 Plan General Pension Plan Policemen's Pension Plan Firemen's Pension Plan City Employees' Pension Plan General Retirement Plan (City 1949) GMEBS 37 72 1 3 9 15 151 77 170 4 626 11 5 152 226 Total 365 186 1,008 The cost of administering the plans are financed through investment earnings. Actuarial assumptions and other information used to determine the annual required contributions are located in the Supplementary Information section of this report. Defined contribution plan Augusta-Richmond County Board ofConUnissioners Retirement Savings Plan (the "1998 Plan") All full-time employees with more than one month of service are eligible to participate in the Retirement Savings Plan. The Plan is a defmed contribution plan under Section 401(a) of the Intemal Revenue Code, and is administered by Nationwide Life Insurance, PPA support. The Plan was organized and may be amended by a majority' vote of the full- body of the governing board, the Augusta-Richmond County Commission. Employees contribute four percent (4%) of their salary, and the Government contributes two percent (2%) of the employee's salary. At December 31, 2003, there were approximately $1,297 plan participants. Participants are considered fully vested in the Government's contributions after completing five (5) years of service. For the year ended December 31, 2003, the employees' contributions were approximately $1,403,334, and the Government's contributions were approximately $701,667. Richmond County Department of Health - General Retirement Plan All current full-time employees of the Department of Health participate in the Employees' Retirement System of Georgia (ERS), which is a cost-sharing multi-employer, defined benefit, public employee retirement system. The Department contributes at a specified percentage of active members payroll determined by actuarial valuation. The contribution requirements of plan members and the Department are established and may be amended by the ERS Board of Trustees. Retirement contributions made on behalf of eligible participants for the year ended June 30, 2003 were $173,481. Members become fully vested after ten years of service. B. Summary of significant accounting policies 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 Government 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 G. 73 AUGUST A, GEORGIA, Notes to Financial Statements - Continued Year Ended December 31, 2003 Note 5 - Pension plans(Continued) C. Concentrations and reserves There are no assets legally reserved for purposes other than the payment of plan member benefits for any plans. The plans held no individual investments whose market value exceeds five percent or more of net assets available for benefits. There are no long-term contracts for contributions. D. Annual pension cost and net pension obligation The Government's annual pension cost is determined using the calculation methodology defmed in GASB Statement No. 27. The annual pension cost equals the Government's annual required contribution, plus any adjustments required to reflect defined minimum and maximum amortization periods and any prior period differences between the actual contribution paid into the plans and the annual pension cost. E. Trend information Fiscal Annual Actual Percentage of Net Pension Year Pension County APC (Asset) Beginning Cost Contribution Contributed Obligation 2001 1945 Plan o I/O I/200 1 $ $ 100% $ 1977 Plan 01/01/2001 979,131 998,983 102% General Pension Plan 01/01/2001 89,008 89,008 100% Policemen's Pension Plan 01/01/2001 64,863 64,863 100% Firemen's Pension Plan o I/O 1/200 1 214,272 214,272 100% City Employees' Pension Plan 01/01/2001 263,080 263,080 100% General Retirement Plan (City 1949) o I/O I/200 I 100% GMEBS 01/01/2001 192,622 192,622 100% Fiscal Annual Actual Percentage of Net Pension Year Pension County APC (Asset) Beginning Cost Contribution Contributed Obligation 2002 1945 Plan 01/01/2002 $ $ 100% $ 1977 Plan o I/O 1/2002 916,427 925,071 101% (54,035) General Pension Plan 01/01/2002 23,348 23,348 100% Policemen's Pension Plan o I/O 1/2002 66,888 66,888 100% Firemen's Pension Plan 01/01/2002 206,334 206,334 100% City Employees' Pension Plan 01/01/2002 299,512 299,512 100% General Retirement Plan (City 1949) 01/01/2002 100% GMEBS 01/0 1/2002 168,316 168,316 100% 74 11 11 II 11 Il IJ 11 11 I) I] 11 In] J I] 11 I) Ij I; I I I I I I I I I I I I I I I I I I I -I I AUGUSTA, GEORGIA Notes to Financial Statements - Concluded Year Ended December 31, 2003 Note 5 - Pension plans(Continued) Fiscal Annual Year Pension Beginning Cost 2003 1945 Plan 01/01/2003 $ $ 1977 Plan 01/01/2003 620,596 General Pension Plan 01/01/2003 24,290 Policemen's Pension Plan 01/01/2003 70,546 Firemen's Pension Plan 01/01/2003 182,862 City Employees' Pension Plan 01/01/2003 285,177 General Retirement Plan (City 1949) 01/01/2003 GMEBS 01/01/2003 181,834 Actual County Contribution Percentage of APC Contributed Net Pension (Asset) Obligation 100% 106% 100% 100% 100% $ 655,871 24,290 70,546 182,862 (179,218) 285,177 100% 181,834 100% 100% Note 6 - Joint venture and related organization Joint venture Under Georgia law, the Government, in conjunction with the sixteen counties and fifty-four cities in east Georgia known as the Central Savannah River Area (CSRA), is a member of the CSRA Regional Development Center (CSRA RDC). The CSRA RDC is a public organization that assists local governments in planning for common needs, cooperating for mutual benefit, and coordinating for sound regional development The operations are mainly financed by membership dues and financial assistance provided by the State of Georgia. Membership in the CSRA RDC is required by the Official Code of Georgia Annotated (O.C.G.A.) 958-8-34 with annual dues based on a per capita amount During the year ended December 31, 2003, the Government paid $107,350 in such dues, which was based on a per capita amount of $.55. The CSRA RDC Board membership is composed of one city official, one county official, and one private sector individual from each county. O.C.G.A. 958-8-39.1 provides that the Government is liable for any debts or obligations of the CSRA RDC. The Comprehensive Annual Financial Report of the CSRA RDC may be obtained from: CSRA Regional Development Center 3023 River Watch Pkwy Augusta, Georgia 30907 Related organization The Government officials are responsible for appointing the members of the boards of another organization, but the Government's accountability for these organizations does not extend beyond making the appointments. The Government commission appoints the voting majority of the members of the Augusta-Richmond County Coliseum Authority. Note 7 - Hotellmotellodging tax The Government has levied a 6% lodging tax. A summary of the transactions for the year ended December 31, 2003 follows: Lodging tax receipts $ 2,776,377 Disbursements to the Augusta-Richmond County Coliseum Authority, Augusta Convention and Visitors Bureau, and the Augusta Museum for promotion of tourism (2,776,377) Balance of lodging tax funds on hand at end of year $ 75 AUGUSTA., GEORGIA Notes to Financial Statements - Concluded Year Ended December 31, 2003 Note 7 - Hotel/motel lodging tax (Continued) The Government has received audit reports from the Augusta-Richmond County Coliseum Authority, Augusta Convention and Visitors Bureau, and the Augusta Museum covering the lodging tax monies. The subcontractor's expenditures were for promotion of tourism as required by O.C.G.A. ~48-13-51. Note 8 - Significant contingencies Federal and State assisted programs The Government has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be iminaterial. No provision has been made in the accompanying financial statements for the refund of grant monies. Claims and judgments The Government is a defendant in various lawsuits. In the opinion of the Government's management and the Government attorney, the ultimate effect of these matters will not have a material adverse effect on the fmancial condition of the Government. Arbitrage The City's bond issues are subject to federal arbitrage regulations, and the Government has elected to review its potential arbitrage liability annually on the bond issue dates. The arbitrage rebate payments are payable on the fifth anniversary of the bond issue date and every fifth year subsequent to the date. Although the actual amount to be paid is not presently determinable, the Government believes that arbitrage payables have been adequately provided for in the accompanying financial statements. Note 9 - Conduit debt obligations Conduit debt obligations are limited obligation revenue bonds, certificates of participation, or similar debt instruments issued for the purpose of providing capital financing for a specific third party that is not a part of the Government's fmancial reporting entity. The Government has no obligation for the debt beyond the resources provided by a lease or loan with the third party on whose behalf the debt was issued. On December 14,2000, the Government issued Special Facility Airport Revenue Bonds in the amount of$3,11O,000 which qualifies as a conduit debt obligation. The bonds are payable solely from revenues pledged under a lease agreement As of December 31,2003, the amount outstanding on the Special Facility Airport Revenue Bonds is $3,110,000. A - Debt service requirements to maturity for bonds payable The following requirements to amortize debt outstanding as of December 31,2003, including interest are as follows: Revenue Bonds Principal Interest 2004 $ $ 152,390 2005 152,390 2006 152,390 2007 152,390 2008 152,390 2009 152,390 2010 3, II 0,000 152,390 $ 3, II 0,000 $ 1,066,730 76 Il 'Il .1 Il Ij I) I-J I-j I] I] IJ -'-' 1.1 I) IJ IJ 1_; ,0 I~i Ii I~ I' il 11 ,I 'I JI I :1 ,I ;1 'I ii' :1 I "I ,I ,I ~I =1 I AUGUST A, GEORGIA Notes to Financial Statements - Concluded Year Ended December 31, 2003 Note 10 - Prior period adjustments c In a prior year, the Government made errors in reporting its capital assets and accumulated depreciation, resulting in an understatement of capital assets and an understatement of net assets in the governmental activities of $600,556 and $1,621,418 in the business-type activities. During the current year, an adjustment, which increased beginning net assets $2,221,974, was made to correct these errors in the accompanying [mancial statements. 77 I AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information I December 31, 2003 I A. Schedules of funding progress Actuarial (Funded) (F AAL) Accrued Unfunded UAAL as I Actuarial Actuarial Liability AAL A%of Valuation Value of AAL (F AAL) Funded Covered Covered Date Assets Entry Age UAAL Ratio Payroll Payroll 1945 Plan I 01/01/91 $ 9,055,522 $ 8,084,072 $ (971,450) 112 % $ 670,286 (145) % 01/01/93 10,044,942 8,595,037 (1,449,915) 117 620,412 (234) 01/01/94 10,047,526 8,927,649 (1,119,877) 113 606,450 ( 185) 01/01/95 9,936,022 9,440,717 (495,305) 105 598,795 (83) I 01/01/96 11,537,840 9,566,390 (1,971,450) 121 629,034 (313) 01/01/98 13,934,975 9,431,701 (4,503,274) 148 160,888 (2,799) 01/01/99 13,760,620 12,535,885 (1,224,735) 110 598,795 (205) 01/01/00 13,038,384 12,251,489 (786,895) 106 168,818 (466) I 01/01/01 12,352,795 12,069,544 (283,251 ) 102 180,462 (157) 01/01/02 11,023,816 10,075,638 (948,178) 109 184,511 (514) 01/01/03 8,897,080 9,878,269 981,189 90 193,921 506 I 1977 Plan 01/01/91 $ 3,018,241 $ 1,430,898 $ (1,587,343) 211 % $ 3,772,441 (42) % 01/01/93 3,892,816 1,937,061 (1,955,755) 201 4,607,419 (42) 01/01/94 4,262,572 2,813,432 (1,449,140) 152 5,180,438 (28) I 01/01/95 4,439,451 3,333,577 (1,105,874) 133 6,797,338 (16) 01/01/96 5,446,380 4,332,024 (1,114,356) 126 8,952,224 (12) 01/01/97 6,285,732 5,510,585 (775,147) 114 11,509,974 (7) 01/01/99 9,976,793 14,137,712 4,160,919 71 24,454,857 17 ,I 01/01/00 10,836,439 15,060,421 4,223,982 72 21,709,421 19 01/01/01 11,136,602 15,575,523 4,438,921 72 21,705,175 20 01/01/02 14,065,581 16,860,437 2,794,356 83 21,029,237 13 01/01/03 12,609,297 18,150,192 5,540,895 69 22,187,948 25 I General Pension Plan 12/31/93 $ - $ 629,859 $ 629,859 - % $ - % 12/31/94 619,418 619,418 I 12/31/95 587,797 587,797 12/31/96 564,008 564,008 12/31/97 637,605 637,605 I 12/31/98 533,575 533,575 12/31/99 511,305 511,305 12/31/00 524,410 524,410 12/31/01 525,089 525,089 I 12/31/02 114,862 114,862 12/31/03 98,789 98,789 Policemen's Pension Plan I 12/31/93 $ - $ 528,904 $ 528,904 - % $ - % 12/31/94 437,814 437,814 12/31/95 422,070 422,070 12/3 1/96 417,725 417,725 I 12/31/97 391,153 391,153 12/31/98 389,072 389,072 12/31/99 246,783 246,783 12/31/00 246,217 246,217 I 12/31/01 355,840 355,840 12/31/02 380,143 380,143 12/31/03 337,186 337,186 I I 79 AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued December 31, 2003 A. Schedules of funding progress (Continued) Actuarial ' (Funded) Accrued Unfunded Actuarial Actuarial Liability AAL Valuation Value of AAL (F AAL) Date Assets Entry Age UAAL Firemen's Pension Plan 12131/93 $ - $ 1,475,590 $ 1,475,590 12131/94 1,342,821 1,342,821 12131/95 1,296,843 1,296,843 12/31/96 1,202,831 1,202,831 12/31/97 1,507,501 1,507,501 12/31/98 1,479,472 1,479,472 12131/99 1,276,044 1,276,044 12131/00 1,258,550 1,258,550 12131/01 1,345,133 1,445,133 12/31/02 1,204,513 1,204,513 12131/03 1,110,698 1,110,698 City Emnlovees' Pension Plan 12/31/93 $ - $ 2,960,183 $ 2,960,183 12131/94 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 12/31/98 2,266,704 2,266,704 12131/99 2,060,501 2,060,501 12/31/00 1,911,904 1,911,904 12/31/01 1,914,347 1,914,347 12131/02 2,063,450 2,063,450 12131/03 1,931,942 1,931,942 Funded Ratio Covered PayrolI - % $ - % $ General Retirement Plan (City 1949) 01101/93 $ 47,314,256 $ 38,551,529 $ (8,762,727) 123 % $ 7,397,577 01/01194 49,875,350 36,456,408 (13,418,942) 137 7,243,580 01101/95 47,710,074 39,699,516 (8,010,558) 120 7,053,091 01101/96 56,004,033 41,587,715 (14,416,318) 135 6,345,073 01101197 59,413,476 42,712,240 (16,701,236) 139 5,165,172 01/01199 71,138,815 51,388,074 (19,750,741) 138 5,794,554 01101/00 70,974,830 54,306,953 (16,667,877) 131 5,112,578 01101/01 70,721,724 54,824,779 (15,896,945) 129 5,237,225 01101/02 66,542,266 52,471,765 (14,070,501) 127 5,473,137 01101/03 59,091,990 53,688,662 (5,403,328) 110 5,774,707 GMEBS 03/01194 $ 2,754,918 $ 2,903,208 $ 148,290 95 % $ 10,375,830 03/01/95 3,351,907 3,315,936 (35,971) 101 10,657,439 03/01196 3,731,118 3,568,982 (162,136) 105 9,369,684 03/01/97 4,144,704 5,312,277 1,167,573 78 8,082,062 03/01198 4,609,848 5,756,304 1,146,456 80 8,913,934 03/01100 5,559,655 6,422,501 862,846 86 7,719,739 03/01/02 6,308,424 6,887,424 579,000 91 6,913,560 03/01/03 6,477,885 7,146,314 668,429 90 6,988,509 03/01104 6,913,410 7,553,911 640,501 91 6,637,655 80 (1 ~ Il (F AAL) UAAL as (J A%of Covered PayrolI - % Il c'-' Ii ,-'1 I) Il - % 1~1 Il '~'1 11 "') ( 119) % IJ (185) (114) (227) IJ (323) (341 ) (326) (304 ) I; (257) (94) 1.0 % I~ (3) (2.0) 14.0 II 13.0 11.2 8A 9.6 11 9.6 I' I" I AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued I December 31,2003 I B. Schedules of employer contributions Fiscal Annual Required Percentage I Year Contribution Contributed 1945 Plan 1994 $ - % 1995 I 1996 1998 1999 2000 I 2001 2002 2003 1977 Plan I 1994 $ - % 1995 1996 1997 600,260 100 I 1998 897,930 100 1999 1,124,928 100 2000 940,054 100 2001 979,131 100 I 2002 746,287 100 2003 787,672 100 General Pension Plan 1994 $ 1l1,109 100 % I 1995 125,174 100 1996 125,874 100 1997 139,861 100 1998 107,338 100 I 1999 113,807 100 2000 102,476 100 2001 89,008 100 2002 23,348 100 I 2003 24,290 100 Policemen's Pension Plan 1994 $ 80,866 100 % I 1995 69,407 100 1996 69,407 100 1997 79,952 100 1998 63,169 100 I 1999 53,823 100 2000 44,880 100 2001 64,863 100 2002 66,888 100 I 2003 70,546 100 Firemen's Pension Plan 1994 $ 212,392 100 % 1995 204,492 100 I 1996 200,757 100 1997 249,706 100 1998 237,914 100 1999 240,623 100 I 2000 205,435 100 2001 214,272 100 2002 206,334 100 2003 182,862 100 -I I 81 AUGUST A, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued December 31, 2002 B. Schedules of employer contributions (Continued) Fiscal Annual Required Percentage Year Contribution Contributed City Emolovees' Pension Plan 1994 $ 415,480 100 % 1995 408,999 100 1996 369,477 100 1997 409,881 100 1998 331,619 100 1999 348,792 100 2000 302,169 100 2001 263,080 100 2002 299,512 100 2003 285,177 100 General Retirement Plan (City 1949) 1994 $ - % 1995 1996 1997 1998 1999 2000 2001 2002 2003 GMEBS 1994 $ 232,298 100 % 1995 106,440 100 1996 187,548 100 1997 197,167 100 1998 214,536 100 1999 191,385 100 2000 204,576 100 2001 192,622 100 2002 168,316 100 2003 181,834 100 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 ofretum Projected salary increases Post retirement benefit increases Inflation 11l/03 Attained age aggregate Level percentage of payroll Average future working lifetime Market value 111103 Attained age aggregate Level of percentage of pay Average future working lifetime Market value 8;0% 5.0% 5.0% 5.0% 8.0% 5.0% 5.0% 5.0% 82 I] Il Il 11 1-] Il 11 11 IJ I] 11 II IJ Ii Ii I, II I I I ;1 " JI c. I " JI ;1 ., ,I ;1 il :1 JI ;1 ,I 11 :1 ,I ,I ~I I AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued December 31,2002 Notes to required supplementary information (Continued) 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 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 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 General Pension Plan 12/31/03 Actuarial present value oftotal Projected benefits N/A N/A N/A 8.0% N/A N/A N/A Firemen's Pension Plan 12/31/03 Actuarial present value oftotal Projected benefits N/A N/A N/A 8.0% N/A N/A N/A General Retirement Pension Plan (City 1949) 01/01/03 Aggregate cost method 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% 83 Policemen's Pension Plan 12131/03 Actuarial present value of total Projected benefits N/A N/A N/A 8.0% N/A N/A N/A City Employees' Pension Plan 12/31/03 Actuarial present value of total Projected benefits N/A N/A N/A 8.0% N/A N/A N/A GMEBS 03/01/2004 Projected unit credit Level dollar 30 years open Roll forward prior year's actuarial value with contributions, disbursements, and expended return of investments, plus 10% of investment gains (losses) during 10 prior years. 8.0% 5.5% None None II Augusta, Georgia I Combining Balance Sheet Nonmajor Governmental Funds December 31, 2003 11 Special Debt Capital 11 Revenue Service Project Funds Funds Funds '~1 Assets IJ Cash and temporary investments $ 10,792,871 $ 941,303 $ 19,404,075 Receivables (net of allowance for doubtful accounts) ~1 Taxes 2,796,807 66,807 Ii Accounts 882,832 Interest 57,684 28,983 Note 336,835 I] Intergovernmental 217,306 Reserve account 1,571,208 Sinking fund account 204,539 11 Perpetual care Due from other funds 162,039 318 Total assets $ 15,450,913 $ 2,579,636 $ 19,433,058 Liabilities and fund balances (deficits) 11 Liabilities: Accounts payable $ 1,026,828 $ $ 39,858 11 Accrued interest Due to other funds 862,185 Accrued salaries and vacation 155,952 I] Other accrued liabilities 77,939 Deferred revenue 2,599,398 67,586 Total liabilities 4,722,302 67,586 39,858 Fund balances (deficits): I] Reserved for: Encumbrances 1,038,124 2,635,081 p"".l Project maintenance 5,596,460 IJ Debt 2,986,302 Special purposes 16,550,138 Inventory/prepaid expenses 11 Capital improvements Risk benefit Designated for: I: Unreserved - undesignated 9,690,487 (474,252) (5,388,479) Total fund balances (deficits) 10,728,611 2,512,050 19,393,200 Total liabilities and fund balances (deficits) $ 15,450,913 $ 2,579,636 $ 19,433,058 I] , , Ii I 88 I: Augusta, Georgia f' Combining Statement of Revenues, Expenditures and Changes in Fund Balances J Nonmajor Governmental Funds Year Ended December 31,2003 r Special Debt Capital Revenue Service Project I~ Funds Funds Funds Revenues Taxes - property $ 11,337,683 $ 32,138 $ I~ Taxes - other than property 11,451,406 Licenses and permits 2,961,828 Use of money and property 213,997 156,432 291,048 11 Charges for current services 3,148,258 1,120 Fines and forfeitures 1,486,039 Intergovernmental 4,140,088 50,076 Contributions and donations 269,738 ";l Other 584,555 1,131 IJ Total revenues 35,593,592 189,701 342,244 ~l Expenditures IJ Current: General government 1,254,176 1,850 Judicial 467,908 IJ Public safety 2,730,894 49,508 Public works 3,467,883 345,549 Culture and recreation 3,650,391 I] Housing and development 5,872,764 . Capital outlay 1,332,804 186,209 Debt service 3,132,947 366,935 Total expenditures 21,909,767 366,935 583,II6 ~l IJ Excess (deficiency) of revenues over (under) expenditures 13,683,825 (177,234) (240,872) Other financing sources (uses) 11 Transfers in 825,571 Transfers (out) (14,402,030) IJ Proceeds of refunding bond 4,035,000 Payment of refunded debt (3,863,767) Total other fmancing sources (uses) (13,405,226) Net change in fund balances 278,599 (177,234) (240,872) 11 Fund balance - beginning 10,450,012 2,689,284 19,634,072 I; Fund balance - ending $ 10.728.611 $ 2,512.050 $ 19,393,200 I~ 11 J I 90 I, I I I I Permanent Total Nonmajor Fund Governmental Perpetual Care - II Funds I $ $ II,369,821 II,451,406 2,961,828 I 661,477 2,219 3,151,597 1,486,039 4,190,164 I 269,738 585,686 2,219 36,127,756 I 1,256,026 I 467,908 2,780,402 3,813,432 I 3,650,391 5,872,764 1,519,013 I 3,499,882 22,859,818 2,219 13,267,938 I 825,571 I (14,402,030) 4,035,000 (3,863,767) (13,405,226) I 2,219 (137,288) I 278,737 33,052,105 $ 280,956 $ 32,914,817 I I -I I 91 Augusta, Georgia Combining Balance Sheet Nonmajor Special Revenue Funds December 31,2003 Emergency Urban Services Telephone Capital Law District System Outlay Enforcement Assets Cash and temporary investments $ 2,984,109 $ $ 1,672,347 $ 489,747 Receivables (net of allowance for doubtful accounts) Taxes 1,718,528 564,589 Accounts 599,999 230,832 1,152 7,072 Interest 5,627 Note 42,920 Intergovernmental Sinking fund account Due from other funds 103,078 44,028 Total assets $ 5,454,261 $ 230,832 $ 2,282,116 $ 496,819 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ 152,684 $ 29,248 $ 320,419 $ 3,104 Accrued interest Due to other funds 270,777 Accrued salaries and vacation 15,814 64,533 Other accrued liabilities 77,737 Deferred revenue 1,168,938 460,769 Total liabilities 1,415,173 364,558 781,188 3,104 Fund balances (deficits): Reserved for: Encumbrances 3,823 24,555 547,801 24,601 Unreserved - undesignated 4,035,265 (158,281) 953,127 469,114 Total fund balances (deficits) 4,039,088 (133,726) 1,500,928 493,715 Total liabilities and fund balances (deficits) $ 5,454,261 $ 230,832 $ 2,282,116 $ 496,819 92 11 Il 11 IJ 11 11 11 11 '.~1 Ii I) 11 IJ . ) I) I) I: I) I: I I I , ~I :1 1 Housing and Urban Federal State ,I Occupational Special Promotion! Neighborhood Development Drug Drug Tax Assessment Tourism Development Action Grant Fund Fund ", ;1 $ 13,335 $ 40,574 $ 275,832 $ 915,237 $ 491,799 $ 547,674 $ 585,856 ,I 513,690 11,196 52,057 " 293,915 :1 14,933 :1 $ 13,335 $ 569,197 $ 287,028 $ 915,237 $ 837,771 $ 547,674 $ 585,856 ,I $ $ 89,991 $ 279,800 $ 6,408 $ 283 $ 122,712 $ 4,225 I 2,281 32,534 493,102 ; 585,374 279,800 38,942 283 122,712 4,225 11 ;1 3,633 26,616 401,181 13,335 (16,177) 7,228 872,662 810,872 23,781 581,631 13,335 (16,177) 7,228 876,295 837,488 424,962 581,631 ,I $ 13,335 $ 569,197 $ 287,028 $ 915,237 $ 837,771 $ 547,674 $ 585,856 ,I :1 I ~I ~I I 93 Augusta, Georgia Combining Balance Sheet Nonmajor Special Revenue Funds - Continued December 31, 2002 Downtown State 5% Victim's Development Capital Law Crime Authority . Grants Library Assistance Assets Cash and temporary investments $ 95,527 $ $ $ 504,054 Receivables (net of allowance for doubtful accounts) Taxes Accounts 2,519 26,913 Interest Note Intergovernmental Sinking fund account 204,539 Due from other funds Total assets $ 300,066 $ $ 2,519 $ 530,967 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ $ $ 29 $ 6,120 ,Accrued interest Due to other funds 386,785 25,066 Accrued salaries and vacation 14,582 Other accrued liabilities 75 127 Deferred revenue Total liabilities 386,860 25,095 20,829 Fund balances (deficits): Reserved for: Encumbrances 2,569 Unreserved - undesignated (86,794) (22,576) 507,569 Total fund balances (deficits) (86,794) (22,576) 510,138 Total liabilities and fund balances (deficits) $ 300,066 $ $ 2,519 $ 530,967 94 fl t 11 I~ IJ IJ f -1 .,J IJ Il ,] 1.1 11 IJ I; I~: I~ J I I I I Supplemental Weed and Total Nonmajor I Juvenille Building Seed Federal Wireless Communtiy Perpetual Land Bank Special Revenue Services Inspection Grant Phase Greenspace Care - I Authority Funds I $ 37,107 $ 217,768 $ $ 731,297 $ 482,488 $ 698,137 $ 9,983 $ 10,792,871 2,796,807 I 800 2,349 882,832 57,684 336,835 I 217,306 217,306 204,539 162,039 $ 37,907 $ 217,768 $ 217,306 $ 731,297 $ 482,488 $ 700,486 $ 9,983 $ 15,450,913 I I $ 156 $ 2,044 $ 1,806 $ 6,254 $ $ 1,545 $ $ 1,026,828 179,557 862,185 23,096 3,112 155,952 ,I 77,939 476,589 2,599,398 156 25,140 184,475 6,254 476,589 1,545 4,722,302 I 143 122 2,592 488 1,038,124 I 37,608 192,506 30,239 725,043 5,899 698,453 9,983 9,690,487 37,751 192,628 32,831 725,043 5,899 698,941 9,983 10,728,6 II I $ 37,907 $ 217,768 $ 217,306 $ 731,297 $ 482,488 $ 700,486 $ 9,983 $ 15,450,913 I I I I I I 95 ~l I I Augusta, Georgia IJ Combining Statement of Revenues, Expenditures and Changes in Fund Balances n Nonmajor Special Revenue Funds l-i Year Ended December 31,2003 rl Emergency IJ Urban Services Telephone Capital Law District System Outlay Enforcement Ii Revenues IJ Taxes - property $ 6,899,261 $ $ 3,161,535 $ n Taxes - other than property 7,464,281 IJ Licenses and permits Use of money and property 30,650 94,585 5,294 Charges for current services 223,747 2,461,649 175 103,287 n Fines and forfeitures I.J Intergovemmental Contributions and donations 269,437 11 Other 30,325 IJ Total revenues 14,887,376 2,461,649 3,286,620 108,581 Expenditures [-I Current: Ii General government 32,070 200,842 879,694 Judicial 51,738 (-"1 Public safety 2,275,532 2,983 32,712 f j Public works 1,753,201 238,449 I] Culture and recreation 34,695 Housing and development 2,024 ('I Capital outlay 975,589 28,656 IJ Debt service 296,004 2,148,398 Total expenditures 2,083,299 2,476,374 4,331,546 61,368 r~-l Excess (deficiency) of revenues IJ over (under) expenditures 12,804,077 (14,725) (1,044,926) 47,213 Other financing sources (uses) (1 Transfers in 13,996 I.J Transfers (out) (12,276,350) Proceeds of refunding bond I : Payment of refunded debt I] Total other financing sources (uses) (12,276,350) 13,996 Net change in fund balances (deficits) 527,727 (14,725) (1,030,930) 47,213 I Ii Fund balance (deficits) - beginning 3,511,361 (119,001) 2,531,858 446,502 Fund balance (deficits) - ending $ 4,039,088 $ (133,726) $ 1,500,928 $ 493,715 I~ I~ I; , t 96 , I 'I 1. "'1 :1 Housing and Urban Federal State Occupational Special Promotion! Neighborhood Development Drug Drug -. 'I Tax Assessment Tourism Development Action Grant Fund Fund " $ $ 1,264,935 $ 11,952 $ $ $ $ ,I 766 3,572,554 2,057,093 -, 8,493 1,686 14,410 , 11 612,129 549,007 3,686,192 " 'I 1,926 465,402 4,652 72,267 2,068,278 1,264,935 3,584,506 4,153,280 14,410 616,781 621,274 I 6,000 3,240 122,330 ;1 119,616 34,343 1,476,233 " 3,595,654 ,I ' 4,636,892 364,136 45,656 72,203 5,300 170,880 -;1 6,000 1,525,129 3,595,654 4,930,102 364,136 191,819 39,643 2,062,278 (260,194) (11,148) (776,822) (349,726) 424,962 581,631 :1 315,635 490,150 5,790 (2,052,000) (100,000) I (2,052,000) 315,635 490,150 (94,210) I 10,278 55,441 (11,148) (286,672) (443,936) 424,962 581,631 3,057 (71,618) 18,376 1,162,967 1,281,424 ,"I $ 13,335 $ (16,177) $ 7,228 $ 876,295 $ 837,488 $ 424,962 $ 581,631 I _,I ~I I 97 n Augusta, Georgia II Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Continued n Nonmajor Special Revenue Funds J Year Ended December 31, 2002 n Downtown State 5% Victim's II Development Capital Law Crime Authority Grants Library Assistance " Revenues IJ Taxes - property $ $ $ $ iJ Taxes - other than property 413,805 Licenses and permits Use of money and property 327 5,776 Charges for current services 7,272 ('-' ( I Fines and forfeitures 324,903 IJ Intergovernmental 29,690 Contributions and donations r--1 Other I) Total revenues 414,132 367,641 Expenditures \'1 Current: Ii General government Judicial 15 397,654 ,['1 Public safety IJ Public works Culture and recreation Housing and development 154,790 n Capital outlay I) Debt service 517,665 Total expenditures 672,455 15 397,654 ,"1 Excess (deficiency) of revenues 1.1 over (under) expenditures (258,323) (I5) (30,013) Other financing sources (uses) (1 Transfers in IJ Transfers (out) 26,320 Proceeds of refunding bond 4,035,000 f Payment of refunded debt (3,863,767) 1-; Total other financing sources (uses) 197,553 I' Net change in fund balances (deficits) (60,770) (I5) (30,013) IJ Fund balance (deficits) - beginning (26,024) (22,561) 540,151 Fund balance (deficits) - ending $ (86,794) $ $ (22,576) $ 510,138 I"~ 1"\ , 1,; f \ I~ [ , t 98 I, I I I Supplemental Weed and Total Nonmajor Juvenille Building Seed Federal Wireless Communtiy Perpetual Landbank Special Revenue I Services Inspection Grant Phase Greenspace Care - I Authority Funds $ $ $ $ $ $ $ $ 11,337,683 I 11,451,406 904,735 2,961,828 429 1,315 4,289 5,899 40,844 213,997 I 8,950 343,178 3,148,258 1,486,039 217,306 206,900 4,140,088 301 269,738 I 9,983 584,555 9,379 906,050 217,607 347,467 212,799 40,844 9,983 35,593,592 I 10,000 1,254,176 18,501 467,908 I 218,731 46,977 2,730,894 3,467,883 20,042 3,650,391 I 713,422 1,500 5,872,764 205,400 1,332,804 3,132,947 I 18,501 713,422 218,731 56,977 206,900 20,042 21,909,767 (9,122) 192,628 (1,124) 290,490 5,899 20,802 9,983 13,683,825 I 825,571 (14,402,030) I 4,035,000 (3,863,767) (13,405,226) ,I (9,122) 192,628 (1,124) 290,490 5,899 20,802 9,983 278,599 46,873 33,955 434,553 678,139 10,450,012 I $ 37,751 $ 192,628 $ 32,831 $ 725,043 $ 5,899 $ 698,941 $ 9,983 $ 10,728,611 I I I I 99 Augusta, Georgia Urban Services District Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 """"'1 I: j' I) Cl Ii Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 6,768,170 $ 6,899,261 $ 131,091 $ 6,550,084 7,691,450 7,464,281 (227,169) 7,979,456 12,000 30,650 18,650 21,478 156,945 223,747 66,802 42,440 269,437 226,997 238,514 263 14,671,005 14,887,376 216,371 14,789,795 II Ii J Cl 11 Revenues Taxes - property Taxes - other than property Use of money and property Charges for current services Contributions and donations Other Total revenues r-l I.J I~j ("-1 Ij C1 IJ II 1.1 Expenditures Current: . General government Public works Housing and development Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures 50,570 32,070 18,500 54,000 1,809,035 1,753,201 55,834 1,639,173 2,024 (2,024) 104,917 120,000 120,000 6,244 296,010 296,004 6 267,056 2,275,615 2,083,299 192,316 2,071,390 12,395,390 12,804,077 408,687 12,718,405 ( 12,395,390) (12,276,350) 119,040 (12,123,192) (12,395,390) (12,276,350) 119,040 (12,123,192) $ 527,727 $ 527,727 595,213 3,511,361 2,916,148 $ 4,039,088 $ 3,511,361 n 1.1 I~] IJ I) .-j r IJ , I I, Ii I i ' I, Other financing sources (uses) Transfers (out) Total other financing sources (uses) Net change in fund balances Fund balance - beginning Fund balance - ending 100 'I 1 ;1 Augusta, Georgia Emergency Telephone System Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 ., ;1 , :1 .., ,I II 'I 11 , il 11 il I ,I 'I I ,I I -I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ $ $ 2,634,000 2,461,649 (172,351) 2,565,248 2,634,000 2,461,649 (172,351) 2,565,248 Revenues Use of money and property Charges for current services Total revenues Expenditures Current: General government Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 193,080 200,842 (7,762) 305,736 2,439,630 2,275,532 164,098 2,399,183 34,151 34,151 6,738 2,666,861 2,476,374 190,487 2,711,657 (32,861) (14,725) 18,136 (146,409) 207,938 (207,938) 196,638 207,938 (207,938) 196,638 $ 175,077 (14,725) $ (189,802) 50,229 (119,001) (169,230) $ (133,726) $ (119,001) Other fmancing sources (uses) Transfers (out) Total other financing sources (uses) Net change in Cund balances Fund balance (deficit) - beginning Fund balance (deficit) - ending lOJ Augusta, Georgia Capital Outlay Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 n . I Ii t n I) 11 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 3,206,720 $ 3,161,535 $ (45,185) $ 2,829,473 2,000 94,585 92,585 323,281 175 175 80 9,360 30,325 20,965 36,521 3,218,080 3,286,620 68,540 3,189,355 Revenues Taxes - property Use of money and property Charges for current services Fines and forfeitures Other Total revenues Expenditures Current: General government Judicial Public safety Public works Culture and recreation Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning 1,082,014 879,694 45,586 51,738 2,983 178,744 238,449 50,340 34,695 2,844,241 975,589 2,031,161 2,148,398 6,232,086 4,331,546 (3,014,006) (1,044,926) (3,014,006) 13,996 (3,014,006) 13,996 $ (6,028,012) (1,030,930) $ 2,531,858 $ 1,500,928 4,997,082 202,320 (6,152) (2,983) (59,705) 15,645 1,868,652 (117,237) 1,900,540 1,969,080 Other financing sources (uses) Transfers in Transfers (out) Total other financing sources (uses) 3,028,002 3,028,002 Net change in fund balances Fund balance - ending 102 n I.J rl IJ n IJ r-l IJ r"-l IJ 11 r-' IJ I) I] 11 'Ij Ii 11 t I 960,559 1,829 36,041 76,616 57,240 633,852 751,576 2,517,713 671,642 (1,890,251) (1,890,251 ) (1,218,609) 3,750,467 $ 2,531,858 :1 11 .1 ,I Augusta, Georgia Law Enforcement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 5,294 $ 5,294 $ 6,824 307,209 103,287 (203,922) 237,445 307,209 108,581 (198,628) 244,269 ,il 11 Revenues Use of money and property Charges for current services Total revenues ,I ;1 11 Expenditures Current: General government Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 26,517 227,436 53,256 307,209 32,712 28,656 61,368 26,517 194,724 50,260 24,600 18,663 245,841 68,923 47,213 175,346 (15,000) (15,000) 47,213 160,346 286,156 $ 446,502 47,213 ;1 Other f"mancing sources (uses) Transfers (out) Total other financing sources (uses) il Net change in fund balances $ 47,213 $ ,I Fund balance - beginning 446,502 Fund balance - ending $ 493,715 .1 ,I ,I ~I ,I ~I I 103 Augusta, Georgia Occupation Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 Il f fl ~ Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 766 $ 766 $ 2,028,000 2,057,093 29,093 2,082,308 30,000 8,493 (21,507) 12,656 1,926 1,926 2,141 2,058,000 2,068,278 10,278 2,097,105 n IJ Revenues Taxes - other than property Licenses and permits Use of money and property Other Total revenues IJ iJ Expenditures Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures 6,000 6,000 12,500 6,000 6,000 12,500 2,052,000 2,062,278 10,278 2,084,605 (2,052,000) (2,052,000) (2,084,585) (2,052,000) (2,052,000) (2,084,585) $ 10,278 $ 10,278 20 3,057 3,037 $ 13,335 $ 3,057 r'" IJ c', IJ Fund balance - ending I~.J *] *1 IJ Other financing sources (uses) Transfers (out) Total other fInancing sources (uses) Net change in fund balances Fund balance - beginning I 1 IJ .': I; f. , I~ t 104 I; 1 I Augusta, Georgia Special Assessment Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 1,257,020 $ 1,264,935 $ 7,915 $ 1,110,442 1,257,020 1,264,935 7,915 1,110,442 I I Revenues Taxes - property Total revenues I Expenditures Current: General govemInent Public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 7,880 3,240 4,640 1,195,440 1,476,233 (280,793) 1,347,975 53,700 45,656 8,044 37,691 1,257,020 1,525,129 (268,109) 1,385,666 (260,194) (260,194 ) (275,224) 315,635 315,635 315,635 315,635 $ 55,441 $ 55,441 (275,224) (71,618) 203,606 $ (16,177) $ (71,618) I .1 I Transfers in Total other financing sources (uses) Net change in fund balances I Fund balance - beginning I Fund balance (deficit) - ending I I I I I -I I 105 r-' I] Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 11,952 $ 11,952 $ 3,780,000 3,572,554 (207,446) 3,636,769 10,484 3,780,000 3,584,506 (195,494) 3,647,253 n f n I) n IJ Augusta, Georgia Promotiontrourism Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 Revenues Taxes - property Taxes - other than property Other Total revenues rl II jJ \1 II n Ii r-'l I! Expenditures Current: Culture and recreation Housing and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances 3,780,000 3,595,654 184,346 3,652,497 3,780,000 3,595,654 184,346 3,652,497 (11,148) (11,148) (5,244) $ (11,148) $ (11,148) (5,244) 18,376 23,620 $ 7,228 $ 18,376 !~-"l Ii (1 I] *i Fund balance - beginning Fund balance - ending f 11 f1 Ii ~=~~ I; J 11 , ! I; I 106 ; I I ~ 11 11 " Augusta, Georgia Housing and Neighborhood Development Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 ;1 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 1,686 $ 1,686 $ 2,262 4,572,427 3,686,192 (886,235) 5,188,594 311,051 465,402 154,351 324,321 4,883,478 4,153,280 (730,198) 5,515,177 il ;1 Revenues Use of money and property Intergovernmental Other Total revenues il ,I ;1 Expenditures Current: General government Housing and development Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures 160,520 122,330 38,190 71,397 5,007,108 4,636,892 370,216 5,449,891 35,000 35,000 171,000 170,880 120 171,400 5,373,628 4,930,102 443,526 5,692,688 (490,150) (776,822) (286,672) (177,511) . 490,150 490,150 298,026 490,150 490,150 298,026 $ (286,672) $ (286,672) 120,515 1,162,967 1,042,452 $ 876,295 $ 1,162,967 ;1 il Other financing sources (uses) Transfers in Total other financing sources (uses) ,I Net change in fund balances Fund balance - beginning ,I Fund balance - ending JI .1 I ,I ~I I 107 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 14,410 $ 14,410 $ 31,364 14,410 14,410 31,364 i' Ii r-, ~ n IJ f~ Idi n IJ I~ Augusta, Georgia Urban Development Action Grant Fund (UDAG) Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December'31, 2003 Revenues Use of money and property Total revenues n II I~J Expenditures Current: Housing and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers (out) Total other financing sources (uses) 705,790 364,136 341,654 295,936 705,790 364,136 341,654 295,936 (705,790) (349,726) 356,064 (264,572) 630,790 5,790 (625,000) (100,000) (100,000) 630,790 (94,210) (725,000) $ (75,000) , (443,936) $ (368,936) (264,572) 1,281,424 1,545,996 $ 837,488 $ 1,281,424 Cl 11 11 Ii Net change in fund balances Fund balance - ending 11 IJ ('1 11 .) .) I; .: ., i I I, Fund balance - beginning 108 I I Augusta, Georgia Federal Drug Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual 603,151 612,129 8,978 4,652 4,652 603,151 616,781 13,630 I 1 Revenues Fines and forfeitures Other Total revenues I I Expenditures Current: Public safety Capital outlay Total expenditures 230,590 372,561 603,151 119,616 72,203 191,819 110,974 300,358 411,332 1 Excess (deficiency) of revenues over (under) expenditures 424,962 424,962 I Other financing sources (uses) I Net change in fund balances $ 424,962 $ 424,962 Fund balance - ending $ 424,962 $ I I I I I I -I I 109 Augusta, Georgia State Drug Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 $ r~' IJ t [l II jl 2002 I Actual Il r-1 II C"-, II [""1 Ii 1~1 .J 1"1 IJ I) r-.l I] ! ~ I) l,_i Ii I: I, I [ < I Budget Revenues Fines and forfeitures Other Total revenues 42,469 42,469 Expenditures Current: Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 35,969 6,500 42,469 Other financing sources (uses) Net change in fund balances $ Fund balance - ending 110 Actual 549,007 72,267 621,274 34,343 5,300 39,643 581,631 581,631 $ 581,631 Variance with Final Budget - Positive (Negative) 506,538 72,267 578,805 1,626 1,200 2,826 581,631 $ 581,631 I , JI 'I )1 Augusta, Georgia Downtown Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 I ;1 Revenues Taxes - other than property Use of money and property Total revenues ;1 Expenditures Current: Housing and development Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures ,I ;1 JI Other fmancing sources (uses) Transfers (out) Proceeds of refunding bond Payment of refunded debt Total other financing sources (uses) il , JI Net change in fund balances Fund balance (deficit) - beginning JI Fund balance (deficit) - ending ;1 .1 .1 I -I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual 400,000 413,805 13,805 417,135 327 327 400,000 414,132 14,132 417,135 154,790 154,790 271,530 517,665 426,320 672,455 (26,320) (258,323) 26,320 26,320 4,035,000 (3,863,767) 26,320 197,553 $ (60,770) $ (26,024) $ (86,794) (246,135) (246,135) (232,003) 4,035,000 (3,863,767) 171,233 (60,770) III 858,227 858,227 (441,092) 475,196 475,196 34,104 $ (60,128) (26,024) Augusta, Georgia Law Library Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 r-1 I) 11 11 1-] Budget Revenues Other Total revenues $ Expenditures Current: Judicial Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Net change in fund balances $ Fund balance (deficits) - beginning Fund balance (deficits) - ending 1\2 Actual $ $ (22,561 ) (22,576) Variance with Final Budget - Positive (Negative) s 15 15 (15) (15) (15) (15) (15) $ (15) 2002 Actual I~] I] r'l II $ 212 212 '1 IJ IJ (211 ) r"-l (211) IJ I] 11 11 IJ I~ IJ $ (22,350) (22,561 ) I; I I, I 'I ;1 il il Augusta, Georgia 5% Victim's Crime Assistance Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 9,000 $ 5,776 $ (3,224) $ 8,906 7,272 7,272 10,906 374,000 324,903 (49,097) 313,221 29,690 29,690 29,399 383,000 367,641 (15,359) 362,432 ,I Revenues Use of money and property Charges for current services Fines and forfeitures Intergovernmental Total revenues I ,I Expenditures Current: General government Judicial Total expenditures Excess (deficiency) of revenues over (under) expenditures 6,455 376,545 383,000 397,654 397,654 6,455 (21,109) 366,184 (14,654) 366,184 (30,013) (3,752) (40,000) (40,000) (30,013) (43,752) 583,903 $ 540,151 ;1 I (30,013) Other financing sources (uses) Transfers (out) Total other financing sources (uses) .1 Net change in fund balances $ (30,013) $ ,I Fund balance - beginning 540,151 Fund balance - ending $ 510,138 ,I ;1 I I I ~I ,I 113 Augusta, Georgia Supplemental Juvenile Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 fl 11 Revenues Use of money and property Charges for current services Total revenues Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 1,000 $ 429 $ (571) $ 675 17,715 8,950 (8,765) 15,849 18,715 9,379 (9,336) 16,524 iT'l IJ 11 1'-1 IJ (1 '1 IJ I Expenditures Current: Judicial Total expenditures Excess (deficiency) of revenues over (under) expenditures 18,715 18,501 214 10,357 18,715 18,501 214 10,357 (9,122) (9,122) 6,167 $ (9,122) $ (9,122) 6,167 46,873 40,706 $ 37,751 $ 46,873 11 Net change in fund balances Fund balance - beginning IJ I] I] I] Fund balance - ending , 1 II [,1 IJ I: 11 I 114 I: I I Augusta, Georgia Weed and Seed Federal Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 I I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 275,000 $ 217,306 $ (57,694) $ 249,328 301 301 2,300 275,000 217,607 (57,393) 251,628 1 Revenues Intergovernmental Contributions and donations Total revenues I Expenditures Current: General government Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 1,250 1,250 273,750 218,731 55,019 218,062 30,000 275,000 218,731 56,269 248,062 (1,124) (1,124) 3,566 $ (1,124) $ (1,124) 3,566 33,955 30,389 $ 32,83 I $ 33,955 I I I Net change in fund balances I Fund balance - beginning Fund balance - ending I I I I I I I I 115 Variance with Final Budget - Positive' 2002 Budget Actual (Negative) Actual $ 8,000 $ 4,289 $ (3,711) $ 3,904 255,000 343,178 88,178 281,751 263,000 347,467 84,467 285,655 i i i j r I j I Augusta, Georgia Wireless Phase Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 Revenues Use of money and property Charges for current services Total revenues Expenditures Current: General government Public safety Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers (out) Total other financing sources (uses) Net change in fund balances Fund balance - beginning Fund balance - ending 89;500 10,000 79,500 173,500 46,977 126,523 190,470 263,000 56,977 206,023 190,470 290,490 290,490 95,185 (196,638) (196,638) $ 290,490 $ 290,490 (101,453) 434,553 536,006 $ 725,043 $ 434,553 r-- I r~ I r- I r- I r I I I I I , I 1 I t.. I 116 I 1 11 :1 Augusta, Georgia Community Greenspace Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 JI Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ $ 5,899 $ 5,899 $ II ,800 55,000 206,900 151,900 334,335 55,000 212,799 157,799 346,135 ;1 :1 Revenues Use of money and property Intergovernmental Total revenues 'I .1 Expenditures Current: Housing and development Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures ;1 ;1 Other financing sources (uses) Transfers in Total other financing sources (uses) JI Net change in fund balances Fund balance - beginning , I Prior period adjustment Fund balance - ending 1 ,I I I JI ~I ;1 117 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual $ 40,000 $ 40,844 $ 844 $ 29,854 1,300 (1,300) 1,703 41,300 40,844 (456) 31,557 .' f f I~ Augusta, Georgia Perpetual Care - I Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2003 Revenues Use of money and property Charges for current services Total revenues r I; 1-', I~ I":: I~J r-l IJ f'" IJ IJ Ij IJ I,; I, I] t Expenditures Current: Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures 41,300 20,042 21,258 16,721 41,300 20,042 21,258 16,721 20,802 20,802 14,836 $ 20,802 $ 20,802 14,836 678,139 663,303 $ 698,941 $ 678,139 Net change in fund balances Fund balance - beginning Fund balance - ending 118 I) I I Augusta, Georgia Landbank Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2003 I I Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual 9,983 9,983 9,983 9,983 9,983 9,983 $ 9,983 $ 9,983 $ 9,983 $ I I Revenues Other Total revenues I Excess (deficiency) ofrevenues over (under) expenditures I Net change in fund balances I Fund balance - ending I I I I I I I I I I 119 Augusta, Georgia Combining Balance Sheet Nonmajor Debt Service Funds December 31, 2003 Total Nonmajor Urban Debt Service Debt Service Debt Service Funds Assets Cash and temporary investments $ 705,199 $ 236,104 $ 941,303 Receivables (net of allowance for doubtful accounts) Taxes 39,017 27,790 66,807 Accounts Certificates of participation investments Reserve account 1,571,208 1,571,208 Due from other funds 275 43 318 Total assets $ 2,315,699 $ 263,937 $ 2,579,636 Liabilities and fund balances Liabilities: Deferred revenue 39,021 28,565 67,586 Total liabilities 39,021 28,565 67,586 Fund balances: Debt 2,986,302 2,986,302 Unreserved - undesignated (709,624) 235,372 (474,252) Total fund balances 2,276,678 235,372 2,512,050 Total liabilities and fund balances $ 2,315,699 $ 263,937 $ 2,579,636 fJ Il 11 fll Ij 11 11 ,~, , I II 11 (1 IJ IJ I] IJ 11 I~ I; I, I I 120 121 I I I I I I I I I I I I I I I I I I I Augusta, Georgia Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year Ended December 31,2003 Total Nonmajor Urban Debt Service Debt Service Debt Service Funds Revenues Taxes - property $ 18,739 $ 13,399 $ 32,138 Use of money and property 150,839 5,593 156,432 Other 1,131 1,131 Total revenues 170,709 18,992 189,701 Expenditures Debt service 366,935 366,935 Total expenditures 366,935 366,935 Excess (deficiency) of revenues over (under) expenditures 170,709 , (347,943) (177,234) Net change in fund balances 170,709 (347,943) (177,234) Fund balance - beginning 2,105,969 583,315 2,689,284 Fund balance - ending $ 2,276,678 $ 235,372 $ 2,512,050 122 I I I I I I I I I [' I I I [ I r I I r I I I I Augusta, Georgia Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31,2003 I I I I I I I I I I .1 I I I I I I 'I I Augusta, Georgia Urban Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31, 2003 Variance with Final Budget - Positive 2002 Budget Actual (Negative) Actual Revenues Taxes - property $ $ 13,399 $ 13,399 $ 57,711 Taxes - other than property 26 Use of money and property 10,000 5,593 (4,407) 13,834 Total revenues 10,000 18,992 8,992 71,571 Expenditures Debt service 367,630 366,935 695 386,062 Total expenditures 367,630 366,935 695 386,062 Excess (deficiency) of revenues over (under) expenditures (357,630) (347,943) 9,687 (314,491 ) Other financing sources (uses) Transfers in 357,630 (357,630) Total other financing sources (uses) 357,630 (357,630) Net change in fund balances $ (347,943) $ (347,943) (314,491) Fund balance - beginning 583,315 897,806 Fund balance - ending $ 235,372 $ 583,315 123 Augusta, Georgia Combining Balance Sheet Nonmajor Capital Project Funds ' December 31, 2003 Total Nonmajor Community Special Sales Special Sales Capital Project Development Tax Phase I Tax Phase II Funds Assets Cash and temporary investments $ 183,514 $ 4,343,841 $ 14,876,720 $ 19,404,075 Receivables (net of allowance for doubtful accounts) Interest 28,983 28,983 Total assets $ 183,514 $ 4,343,841 $ 14,905,703 $ 19,433,058 Liabilities and fund balances Liabilities: Accounts payable $ 29,934 $ $ 9,924 $ 39,858 Total liabilities 29,934 9,924 39,858 Fund balances: Encumbrances 31,573 22,695 2,580,813 2,635,081 Project Maintenance 2,000,000 3,596,460 5,596,460 Special purposes (31,573) 3,282,934 13,298,777 16,550,138 Unreserved - undesignated 153,580 (961,788) (4,580,271) (5,388,479) Total fund balances 153,580 4,343,841 14,895,779 19,393,200 Total liabilities and fund balances $ 183,514 $ 4,343,841 $ 14,905,703 $ 19,433,058 124 r"'"""l I] f n I) IJ fi IJ r--' Ii 1'1 ('I II (."1 IJ IJ I] f 1 II I; r 1 Ii ,~ r 1 I; : I Ij t I I I I I I I I I 125 I I I I Augusta, Georgia Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Project Funds Year Ended December 31,2003 tevenues Use of money and property Charges for current services I Intergovernmental Total revenues Total Nonmajor Community Special Sales Special Sales Capital Project Development Tax Phase I Tax Phase II Funds $ $ 49,218 $ 241,830 $ 291,048 1,120 1,120 50,076 50,076 49,218 293,026 342,244 ,xpenditures Current: General government Public safety I Public works Capital outlay Total expenditures Ixcess (deficiency) of revenues over (under) expenditures 1,850 1,850 49,508 49,508 269,878 9,691 65,980 345,549 35,804 150,405 186,209 355,190 9,691 218,235 583,116 (355,190) 39,527 74,791 (240,872) (355,190) 39,527 74,791 (240,872) 508,770 4,304,314 14,820,988 19,634,072 $ 153,580 $ 4,343,841 $ 14,895,779 $ 19,393,200 'Net change in fund balances und balance - beginning lund balance - ending Augusta, Georgia Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2003 Municipal Waste Golf Management Course Transit Assets Current assets Cash and temporary investments $ 10,723,113 $ 179 $ 150 Receivables Taxes Accounts 453,630 419 Interest Intergovernmental 881,359 Inventory 8,840 219,822 Due from other funds Total current assets 11,176,743 9,019 1,101,750 Noncurrent assets Capital assets, net 3,285,931 1,551,275 3,619,972 Total noncurrent assets 3,285,931 1,551,275 3,619,972 Total assets $ 14,462,674 $ 1,560,294 $ 4,721,722 Liabilities Current liabilities Accounts payable $ 53,726 $ 11,657 $ 31,787 Due to other funds 87,883 2,537,788 Accrued salaries and vacation 77,392 18,750 188,648 Other accrued liabilities 161,476 144 Current portion of leases payable 49,057 Deferred revenue 650 Total current liabilities 341,651 119,084 2,758,223 Noncurrent liabilities Closure/postc1osure accrual 11,800,706 Capital leases 49,057 Total noncurrent liabilities 11,849,763 Total liabilities 12,191,414 119,084 2,758,223 Net assets Invested in capital assets, net of related debt 3,187,817 1,551,275 3,619,972 Unrestricted (916,557) (110,065) (1,656,473) Total net assets $2,271,260 $1,441,210 $1,963,499 128 I-j ~ Il 1_,: ,j 11 IJ I~,: J 1-1 .,~ J IJ IJ 1-1 ,eJ Ie; 1_; I~ I~ I~ 1_; I~ I Augusta, Georgia Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds Year Ended December 31, 2003 Municipal Waste Golf Management Course Transit Operating revenues Charges and fees $ 4,943,777 $ 645,525 $ 722,803 Total operating revenues 4,943,777 645,525 722,803 Operating expenses Personal services and employee benefits 917,291 260,728 2,666,136 Purchased/contracted services 792,243 43,050 81,708 Supplies 290,164 178,511 355,181 Repairs and maintenance 183,423 35,849 172,216 Interfund/interdepartmental charges 509,151 60,190 190,298 Other costs 162,712 Depreciation 1,068,939 44,831 523,769 Closure/postclosure accrual 817,227 Total operating expenses 4,740,650 623,159 3,989,308 Operating income (loss) 203,127 22,366 (3,266,505) Nonoperating revenue (expense) Interest revenue 111,458 Sale of property 3,150 900 Other revenue (expense) 3,219 26,086 Intergovernmental 35,256 1,159,188 Interest expense (25,900) (22,010) Total nonoperating revenue (expense) 149,864 (22,681 ) 1,164,164 Income (loss) before transfers 352,991 (315) (2,102,341 ) Transfers in 60,000 1,319,270 Change in net assets 352,991 59,685 (783,071) Total net assets - beginning 2,350,093 1,323,873 3,363,032 Prior period adjustment (431,824) 57,652 (616,462) Total net assets - beginning, as restated 1,918,269 1,381,525 2,746,570 Total net assets - ending $ 2,271,260 $ 1,441,210 $ 1,963,499 130 I I f I I I I I" I- I I I I I 1 I 1 I I I I I I Daniel Newman Field Tennis Garbage I Airport Center Collection Riverwalk Total $ 89,750 $ 218,386 $ 6,644,314 $ 58,830 $ 13,323,385 I 89,750 218,386 6,644,314 58,830 13,323,385 21,428 104,888 93,088 72,597 4,136,156 I 15,762 106,564 10,188,972 60,748 11,289,047 6,410 80,072 10,206 116,963 1,037,507 16,860 4,229 510 413,087 I 7,186 6,695 100,000 873,520 612,000 774,212 66,606 1,704,145 817,227 I 134,252 302,448 11,004,266 250,818 21,044,901 (44,502) (84,062) (4,359,952) (191,988) (7,721,516) I 4,804 487 116,749 4,050 I 900 500 30,705 27~,603 7,136 1,474,183 (2,173) (26,429) (76,512) I 278,307 5,463 (26,429) 487 1,549,175 233,805 (78,599) (4,386,381) (191,50 I) (6,112,341) I 50,000 53,830 3,127,550 218,240 4,828,890 283,805 (24,769) (1,258,831) 26,739 (1,343,451) I 1,094,882 (176,878) 650,550 8,974 8,614,526 179,032 (811,602) I 1,273,914 (176,878) 650,550 8,974 7,802,924 $ 1,557,719 $ (201,647) $ (608,281 ) $ 35,713 $ 6,459,473 I I I 131 I 132 I I I I' I I' I 1 I I I I I I I I I I I Augusta, Georgia Combining Statement of Cash Flows Nonmajor Enterprise Funds Year Ended December 31, 2003 Municipal Waste Golf Management Course Transit Operating activities Cash received from customers $ 5,413,460 $ 645,525 $ 722,384 Cash paid to suppliers (1,416,967) (267,678) (643,970) Cash paid to employees (902,399) (255,977) (2,641,045) Cash paid for interfund services used (509,151) (155,074) 1,117,193 Net cash provided by (used in) operating activities 2,584,943 (33,204) (1,445,438) Noncapital financing activities Transfers in 60,000 1,319,270 Operating grants 97,719 Interest expense on operating capital (22,010) Net cash provided by noncapital financing activities 60,000 1,394,979 Capital and related financing activities Proceeds from grants 35,256 271,776 Proceeds from sale of property , 3,150 900 Other miscellaneous income 3,219 26,086 Purchase of capital assets (251,921 ) (4,115) (249,303) Interest paid on capital debt (25,900) Net cash provided (used) by capital and related financing activities (213,515) (26,796) 49,459 Investing activities Interest received 111,458 Net cash provided by investing activities 111,458 Net increase (decrease) in cash and cash eq uivalents/investmen ts 2,482,886 (1,000) Cash and cash equivalents/investments Beginning of year 8,240,227 179 1,150 End of year $ 10,723,113 $ 179 $ 150 I I I Newman Total Nonmajor I Daniel Field Tennis Garbage Enterprise Airport Center Collection Riverwalk Funds I $ 89,750 $ 218,386 $ 7,286,470 $ 58,830 $ 14,434,805 (157,713) (166,730) (10,202,710) (174,686) (13,030,454) (25,944) (104,254) (84,881 ) (72,356) (4,086,856) I (7,186) (6,695) (100,000) 339,087 (101,093) (59,293) (3,101,121) (188,212) (2,343,418) I 50,000 53,830 3,127,550 218,240 4,828,890 97,719 I (2,173) (26,429) (50,612) 50,000 51,657 4,875,997 3,101,121 218,240 I 272,603 7,136 586,771 4,050 I 900 500 30,705 (257,440) (762,779) (25,900) I 16,063 7,636 (167,153) I 5,140 487 117,085 5,140 487 117,085 I (29,890) 30,515 2,482,511 I 373,888 200 20,480 8,636,124 $ 343,998 $ 200 $ $ 50,995 $ 11,118,635 I I 1 'I I 133 Augusta, Georgia Combining Statement of Cash Flows - Continued Nonmajor Enterprise Funds Year Ended December 31,2003 11 Il Waste Management Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation Closure/post closure costs Change in assets and liabilities Accounts receivable Due from other funds Taxes receivable Inventory Accounts payable Accrued salaries and vacation Other accrued liabilites Due to other funds Unearned revenue Total adjustments $ 203,127 Municipal Golf Course $ 22,366 1,068,939 44,831 817,227 577 ,579 2,310 (55,728) (11,149) 14,892 4,751 (41,093) (2,079) (94,884) 650 2,381,816 (55,570) $ 2,584,943 $ (33,204) Net cash provided by (used in) operating activities Noncash investing, capital, and financing activities: 134 Transit 11 IJ Il 11 '-'1 IJ '--1 IJ ""1 IJ $ (3,266,505) 523,769 (419) (43,323) 8,458 25,091 1,307,491 IJ 1,821,067 $ (1,445,438) ~\ IJ IJ 11 11 I~ I: 11 I I' I ~I il )1 :1 'I : ,I ,I , ]1 ,I ~I ~I 'I ,I ~,I ,I I -I I Daniel Field Airport Newman Tennis Center Total Nonmajor Garbage Enterprise Collection Riverwalk Funds $ (44,502) $ (84,062) $ (4,359,952) $ (191,988) (7,721,516) 66,606 1,704,145 817,227 1,726,476 160,211 (632,531 ) 7,000 33,615 (338) (65,654) (4,516) 634 8,207 1,287 (152,296) 16,186 62,122 (56,591) 24,769 1,258,831 $ (101,093) $ (59,293) $ (3,101,121) $ 2,303,636 160,211 (632,531) (34,013) 3,535 (87,261) 241 49,300 (41,885) 1,138,619 650 3,776 5,378,098 (188,212) $ (2,343,418) 135 Augusta, Georgia Combining Statement of Net Assets Internal Service Funds December 31, 2003 11 ~ 11 Risk Fleet Workers Management Operations Compensation Assets Current assets Cash and temporary investments $ 744,236 $ $ 137,340 Accounts receivable Total current assets 744,236 137,340 Noncurrent assets Restricted investments Capital assets, net 28,713 211,629 Total noncurrent assets 28,713 211,629 Total assets $ 772,949 $ 211,629 $ 137,340 Liabilities Current liabilities Accounts payable $ 184,704 $ 327,656 $ 133,372 Due to other funds 231,051 Accrued salaries and vacation 24,187 12,113 Total current liabilities 208,891 570,820 133,372 Noncurrent liabilities Revenue bonds payable Notes payable Capital leases Total noncurrent liabilities Total liabilities 208,891 570,820 133,372 Net assets Invested in capital assets, net of related debt 28,713 211 ,629 Restricted Unrestricted 535,345 (570,820) 3,968 Total net assets $564,058 ($359,191) $3,968 -l Ii Il 11 II ,I 11 I'J '-'] Ii ~l 11 IJ I; I] I; IJ I; I I' 138 I I I I Long-term Employee Disability GMA I Health Benefits Unemployment Insurance Leases Total I $ $ 63,233 $ 15,657 $ $ 960,466 3,068,652 3,068,652 63,233 15,657 3,068,652 4,029,118 I 13,098,945 13,098,945 240,342 I 13,098,945 13,339,287 $ $ 63,233 $ 15,657 $ 16,167,597 $ 17,368,405 I $ 55 $ 63,115 $ $ 119,572 $ 828,474 I 62,116 140,284 433,451 36,300 62,171 63,115 259,856 1,298,225 I 15,989,693 15,989,693 ,I 15,989,693 15,989,693 62,171 63,115 16,249,549 17,287,918 I 240,342 I (62,171) 118 15,657 (81,952) (159,855) ($62,171) $118 $15,657 ($81,952) $80,487 I I 1 -I I 139 I Augusta, Georgia I Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds Year Ended December 31, 2003 11 I-j Risk Fleet Workers Management Operations Compensation 11 Operating revenues Charges and fees $ 1,665,137 $ 3,526,565 $ 1,635,522 Total operating revenues 1,665,137 3,526,565 1,635,522 11 Operating expenses Personal services and employee benefits 286,456 105,267 11 Purchased/contracted services 346,611 26,955 Supplies 191,939 140,442 Repairs and maintenance 3,685,194 Interfund/interdepartmental charges 379 I~l Other costs 3,869 94,918 Depreciation 19,697 76,918 Lease expense 6,200 11 Risk benefit charges 942,285 Insurance 1,630,967 Total operating expenses 1,790,857 4,135,894 1,631,346 Operating income (loss) (125,720) (609,329) 4,176 11 Nonoperating revenue (expense) I] Interest revenue 5,721 3,499 Sale of property 300 Other revenue (expense) 145,035 2,257 11 Interest expense (4,173) Total nonoperating revenue (expense) 150,756 6,056 (4,173) Income (loss) before transfers 25,036 (603,273) 3 I: Transfers in (out) Transfers out I; Change in net assets 25,036 (603,273) 3 Total net assets - beginning 564,245 (44,464) 3,965 Prior period adjustment (25,223) 288,546 Ii Total net assets - beginning, as restated 539,022 244,082 3,965 Ii Total net assets - ending $ 564,058 $ (359,191) $ 3,968 I: I 140 I' Augusta, Georgia Combining Statement of Cash Flows Internal Service Funds Year Ended December 31,2003 I 1- r I~ Risk Fleet Workers Management Operations Compensation Operating activities Cash received from contributions $ 1,665,137 $ 3,757,616 $ 1,635,522 Cash paid to suppliers (1,435,390) (4,258,496) (1,586,003) Cash paid to employees (283,579) (103,496) Cash paid for interfund services used (379) Net cash provided by (used in) operating activities (53,832) (604,376) 49,140 Noncapital financing activities Transfers in (out) Interest expense on operating capital (4,173) Other revenue 145,035 2,257 Net cash provided (used) by noncapital financing activities 145,035 2,257 (4,173) Capital and related financing activities Proceeds from sale of property 299 Purchase of capital assets Interest paid on capital debt Net cash provided (used) by capital and related financing activities 299 Investing activities Interest received 5,721 3,499 Net cash provided by investing activities 5,721 3,499 Net increase (decrease) in cash and cash equivalents 96,925 (598,321) 44,967 Cash and cash equivalents/investments Beginning of year 647,311 598,321 92,373 End of year $ 744,236 $ $ 137,340 11 I~ 1-1 1'"1 ..J I"J I~; 'l IJ I; I) Ij I: I: I~ I~ I 142 I I I I Long-term Total Employee Disability GMA Internal Service Health Benefits Unemployment Insurance Leases Funds I $ 14,138,601 $ $ 192,912 $ 828,859 $ 22,218,647 (13,950,870) (119,173) (177,182) 50,748 (21,476,366) I (387,075) (379) I 187,731 (I 19,173) 15,730 879,607 354,827 (182,288) 182,288 3,268,818 3,268,818 I (6,268) (73) (10,514) 147,292 I (188,556) 182,288 (73) 3,268,818 3,405,596 I 299 1 (3,555,460) (3,555,460) I (3,555,460) (3,555,160) I 341,378 350,598 341,378 350,598 I (825) 63,115 15,657 934,343 555,861 825 118 12,164,602 13,503,550 I $ $ 63,233 $ 15,657 $ 13,098,945 $ 14,059,411 I I I ,I I 143 Risk Management Fleet Operations Workers Compensation I' t Il IJ Il Il f;] IJ IJ Augusta, Georgia Combining Statement of Cash Flows - Continued Internal Service Funds Year Ended December 31, 2003 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation $ (125,720) $ (609,329) $ 4,176 19,697 76,918 Change in assets and liabilities: Accounts receivable Accounts payable Accrued salaries and vacation Due to other funds Total adjustments 49,314 (304,787) 44,964 2,877 1,771 231,051 71,888 4,953 44,964 (53,832) $ (604,376) $ 49,140 r~1 IJ '-~1 11 11 11 11 IJ I; IJ I] - Ii Net cash provided by (used in) operating activities $ 144 ~I ~!I )1 I ,I "I ,I 'I "1 ',I ,~I -'I I ~I 'I I ,1 I I Long-term Employee Disability Health Benefits Unemployment Insurance GMA Leases Total Internal Service Funds $ 128,570 $ (182,288) $ 15,750 $ (2) $ (768,843) 96,615 1,212,886 1,212,886 (2,955) 63,115 50,748 (99,601) 4,648 62,116 (20) (384,025) (90,878) 59,161 63,115 (20) 879,609 1,123,670 $ 187,731 $ (119,173) $ 15,730 $ 879,607 $ 354,827 145 Augusta, Georgia Combining Statement of Fiduciary Net Assets Pension Trust Funds December 31, 2003 1945 1977 General Plan Plan Retirement Total Assets Cash and cash equivalents $ 1,004,284 $ 1,823,993 $ 1,535,444 $ 4,363,721 Investments U.S. Government securities 1,593,980 3,249,645 15,681,261 20,524,886 Corporate bonds 2,268,616 3,140,379 11,629,740 17,038,735 Equity securities 4,896,223 7,997,290 34,498,278 47,391,791 Real estate 1,700,000 1,700,000 Receivables (net of allowance for doubtful accounts) Interest 64,568 107,510 478,975 651,053 Due from other funds 100,000 100,000 Total assets 9,927,671 16,318,817 65,523,698 91,770,186 Liabilities Accounts payable 1,780 1,129 6,258 9,167 Due to other funds 370,525 370,525 Total liabilities 1,780 1,129 376,783 379,692 Net assets Reserved for employees' retirement benefits $ 9,925,891 $ 16,317,688 $ 65,146,915 $ 91,390,494 ' 150 rl II J n I) [l Ii t 11 1-' I) 11 I~] [".., II IJ r~--'l I] I] I) I~ I.. i I, ( 1 I I, :1 I I I 'I ,I ,I I ,I ,I I ,I 11 ,I ,I I ,I ,I I I Augusta, Georgia Combining Statement of Changes in Fiduciary Net Assets Pension Trust Funds Year Ended December 31,2003 1945 1977 General Plan Plan Retirement Total Additions Contributions $ 10,290 $ 1,727,763 $ 364,431 $ 2,102,484 Net investment income 1,163,582 1,820,968 8,164,078 11,148,628 Transfers in 1,305,030 1,305,030 Total additions 1,173,872 3,548,731 9,833,539 14,556,142 Deductions Administration 68,213 153,011 369,361 590,585 Benefit payments 895,848 608,313 4,344,211 5,848,372 Refunds 192,799 32,514 225,313 Total deductions 964,061 954,123 4,746,086 6,664,270 Change in net assets 209,811 2,594,608 5,087,453 7,891,872 Total net assets - beginning 9,716,080 13,723,080 60,059,462 83,498,622 Total net assets - ending $ 9,925,891 $ 16,317,688 $ 65,146,915 $ 91,390,494 151 r--' I, Augusta, Georgia ,-, Combining Statement of Changes in Fiduciary Assets and Liabilities J Agency Funds December 31, 2003 11 r-1 January 1, 2003 Additions Deductions December 31, 2003 IJ Tax Commisioner Assets rl Cash and cash equivalents $ 9,342,951 $ 130,229,938 $ 136,727,487 $ 2,845,402 I] Receivables (net of allowance for doubtful accounts) Taxes 31,508,116 123,529,758 130,229,938 24,807,936 (1 Total assets $ 40,851,067 $ 253,759,696 $ 266,957,425 $ 27,653,338 Liabilities 11 Due to others $ 6,003,448 $ 79,614,227 $ 83,558,106 $ 2,059,569 Due to other funds 3,339,503 50,615,711 53,169,381 785,833 Uncollected taxes 31,508,116 123,529,758 130,229,938 24,807,936 '~-l Total liabilities $ 40,851,067 $ 253,759,696 $ 266,957,425 $ 27,653,338 Ii Probate Assets Il Cash and cash equivalents $ 6,333 $ 265,956 $ 266,369 $ 5,920 I] Total assets $ 6,333 $ 265,956 $ 266,369 $ 5,920 Liabilities 11 Due to others $ 5,583 $ 77,271 $ 77,750 $ 5,104 Due to other funds 750 188,685 188,619 816 '--I Total liabilities $ 6,333 $ 265,956 $ 266,369 $ 5,920 I; Sheriff Assets 11 Cash and cash equivalents $ 1,067,662 $ 2,717,856 $ 2,496,315 $ 1,289,203 Total assets $ 1,067,662 $ 2,717,856 $ 2,496,315 $ 1,289,203 Liabilities I) Due to others 1,067,662 2,717,856 2,496,315 1,289,203 Total liabilities $ 1,067,662 $ 2,717,856 $ 2,496,315 $ 1,289,203 f~- -") Civil Court IJ Assets I; Cash and cash equivalents $ 3 10,254 $ 2,561,281 $ 2,425,867 $ 445,668 Total assets $ 310,254 $ 2,561,281 $ 2,425,867 $ 445,668 Liabilities ' , Ii Due to others $ 305,900 $ 2,527,020 $ 2,387,900 $ 445,020 Due to other funds 4,354 34,261 37,967 648 Total liabilities $ 310,254 $ 2,561,281 $ 2,425,867 $ 445,668 I: I 154 I' ,I I JI il il JI :1 ,I ;1 , :1 il ,I il I ,I I .1 'I I Augusta, Georgia Combining Statement of Changes in Fiduciary Assets and Liabilities - Continued Agency Funds December 31,2003 Liabilities January 1, 2003 Additions Deductions December 31,2003 $ 2,393,551 $ 13,459,997 $ 12,800,213 $ 3,053,335 $ 2,393,551 $ 13,459,997 $ 12,800,213 $ 3,053,335 $ 1,837,514 $ 5,851,052 $ 5,214,570 $ 2,473,996 556,037 7,608,945 7,585,643 579,339 $ 2,393,551 $ 13,459,997 $ 12,800,213 $ 3,053,335 Clerk of Court Assets Cash and cash equivalents Total assets Due to others Due to other funds Total liabilities TOTAL ALL AGENCY FUNDS: Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts) Taxes $ 13,120,751 $ 149,235,028 $ 154,716,251 $ 7,639,528 31,508,116 $ 44,628,867 $ 123,529,758 272,764,786 $ 130,229,938 284,946,189 $ 24,807,936 32,447,464 Total assets Liabilities Due to others Due to other funds Uncollected taxes Total liabilities $ 9,220,107 $ 3,900,644 31,508,116 $ 44,628,867 $ 90,787,426 $ 58,447,602 123,529,758 272,764,786 $ 93,734,641 $ 60,981,610 130,229,938 284,946,189 $ 6,272,892 1,366,636 24,807,936 32,447,464 155 'I I I .1 ,I II :1 ,I ,I 'I ~I I il il ,I I ,I ,I ,I I AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards - Continued Year Ended December 31, 2003 Federal Grantor / Federal Agency or Pass-through Grantor / FDA Pass-through Federal Program Title Number Number Expenditures U.S. Department of Transportation Direct Programs Federal Aviation Administration Airport Improvement Program Grants 20.106 3-13-0011-23 31,899 20.106 3-13-0011-24 476,942 20.106 3-13-0011-25 423,295 20.106 3-13-0011-26 296,925 20.106 3-13-0012-08 123,050 20.106 3-13-0012-09 130,393 1,482,504 Grant In Aid Security Requirements N/A DTSA20-03-P-5041I 502,190 After September II, 200 I Small Community Air Service Development 20.XXX SCASDPP 11590-183 112,743 Pilot Program Total U.S. Department of Transportation 3,118,296 U.S. Department of Homeland Security Direct Programs Reimbursable Agreement Security Requirements N/A HSTSO 1-04-A-LEF003 17,154 After September 'I 1, 2001 U.S. Environmental Protection Agency Direct Programs Brownfield Pilots Cooperative Agreements 66.811 BP984866-99-0 71,145 Emergency Management Agencv Pass-through from the Georgia Emergency Management Agency Hazard Mitigation Grant 83.548 1311-000 I 483,243 Flood Mitigation Assistance Program 83.536 FLA-PL-04GA-200000 I 21,200 Local Emergency Operation Plan 53.562 EMA-202-GR-5072 7,129 Total Emergency Management Agency 511 ,572 U.S. Department ofInterior Historic Preservation Fund Grant-in-Aid Program 15.904 13-03-18210-0 I 5,472 U.S. Department of Defense Military Surplus Program N/A N/A 63,000 Total $ 7,898,663 The accompanying notes are an integral part of the schedule, of expenditures of federal awards. 159 AUGUSTA, GEORGIA Notes to the Schedule of Expenditures of Federal Awards Year Ended December 31, 2003 Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Augusta, Georgia, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-l33, Audits 0/ States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic [mancial statements. Note 2 - Reporting entity The accompanying schedule of expenditures of federal awards includes the accounts of all Augusta and Richmond County operations. The Government uses the criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100 of GASB's Codification o/Governmental Accounting and Financial Reporting Standards. Excluded from the accompanying schedule of federal awards is the Government's discretely presented component unit, Richmond County Department of Health. Separate [mancial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901. Note 3 - Non-cash awards Augusta, Georgia received non-cash federal awards of surplus military equipment totaling $63,000 during the year ended December 31, 2003. 160 Il Il 1 IJ 11 C"'! II ['-, Ii 11 I-j 11 I] jJ 11 11 11 I) I~ I; I Ii ; , I I 161 I AUGUST A, GEORGIA Summary Schedule of Prior Audit Findings I Year Ended December 31,2003 I Findinl! 00-1 (repeat finding) U.S. Department of Justice CFDA 16.592; Local Law Enforcement Block Grant I Criteria The Grant Award Letter Special Conditions number 8, "the recipient agrees to establish a trust fund in which all payments received under this program, including match, must be deposited. For purposes of this grant, a trust fund is an interest-bearing account that is specifically designated for this program...". I I Condition noted Augusta, Georgia did not establish a specifically designated trust fund for receipts under this program. Receipts were deposited in the pooled cash account of Augusta, Georgia and were initially recorded as receipts on the trial balance of another fund. I Recommendation Augusta, Georgia should set up a separate interest-bearing account for Local Law Enforcement Block Grant receipts, transfer in unexpended grant balances to this account and notify the Department of Justice to, in the future, wire advances to this account for Local Law Enforcement Block Grant funds only. I Current Status Repeat fmding this fiscal year. I Findinl! 01-1 U.S. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. I Criteria 24CFR Section 92.508(a)(2)(ix) requires a report on match contributions made, using a separate HOME Match Report, HUD-4107-A, for the period covered by the Consolidated Plan Program Year, and must comply with those provisions to indicate resources from private and non-Federal sources. The applicable regulations for this standard are 92.220, 91.220(b )(2), 91.320(b )(2), 91.320(b )(2), and 91.420(b). I I I I I I I I I AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings - Continued Year Ended December 31,2003 Condition noted The 2001 CAPER (Consolidated Annual Performance and Evaluation Report) did not provide evidence of the Augusta-Richmond County's compliance with the match requirements under HOME, as required in the regulation. Recommendation The City's Housing and Neighborhood Development Office should develop a [mancial reporting system that tracks match obligations and match contributions to ensure that the match requirements will be met by the end of the respective program year. Current Status Corrected during this fiscal year. Finding 02-1 Internal control over compliance with federal awards. U.S. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. Criteria 24CFR Section 92.508 requires each participating jurisdiction to establish and maintain sufficient records to enable HUD or their agents to determine whether the participating jurisdiction has met the requirement of Program Administration. Condition noted Internal control over record keeping for the HOME Investment Partnership Program was not adequate to ensure that accurate information is accessible to those who need it. There was no evidence that the HOME Program Director established a record keeping system to ensure that accounting records and documentation were retained for the time period required by applicable requirements of the A-102 common rule. Recommendation The City's Housing and Neighborhood Development Office should establish formal internal controls that ensure maintenance, review, and reconciliation of program and project records on a contemporaneous basis with the expenditure of federal funds associated with the program and projects. Current Status Corrected during this fiscal year. 162 r I I I I' I I r-- I r- 1 f~ I I r~ I" r~> I, r- 1 I I I I i I I , I I I I I I I I I I I I I I I I I I I I CERTIFIED PUBLIC ACCOuNTANTS & CONSULTANTS Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Augusta-Richmond County Commission Augusta, Georgia We have audited the fmancial statements of Augsuta, Georgia as of and for the year ended December 31, 2003, and have issued our report thereon dated May 21,2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fInancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Augusta, Georgia's fmancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of fmancial 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 instances of noncompliance that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of fIndings and questioned costs as items 03-1. Internal Control Over Financial Reporting In planning and performing our audit, we considered Augusta, Georgia'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 financial reporting would not necessarily disclose all matters in the internal control that might be rnaterial 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 that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting, which we have reported to management of Augusta, Georgia in a separate letter dated May 21, 2004. This report is intended solely for the information and use of the finance committee, management, the Augusta- Richmond County Commission, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~,~~7~/.../...1! Augusta; Georgia May21,2004 163 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 j I I~ ( j ( I' I' 1 I' I I CERTIFIED PUBLIC ACCOt:NTANTS & CONSULTANTS Augusta-Richmond County Commission Augusta, Georgia Compliance We have audited the compliance of Augusta, Georgia with the types of compliance requirements described in the Us. Office of Management and Budget (OMB) Circular A-J 33 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2003. Augusta, Georgia's major federal programs are identified in the ~ummary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Augusta, Georgia's management. Our responsibility is to express an opinion on Augusta, Georgia's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to [mancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-l33, Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A-l33 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Augusta, Georgia's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Augusta, Georgia's compliance with those requirements. In our opinion, Augusta, Georgia complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2003. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questions costs as items 00-1 and 03-2. , I Internal Control Over Compliance The management of Augusta, Georgia is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Augusta, Georgia's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control' over compliance in accordance with OMB Circular A-133. , I I I I 164 I I I I I I I I I I I I I I I I I I I I I We noted no matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect Augusta, Georgia's ability to administer a major federal program in accordance with applicable requirements of laws, regulations, contracts and grants. 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 noncompliance with the applicable requirements of laws, regulations, contracts and grants that would be material relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. This report is intended solely for the information and use of management, the Augusta-Richmond County Commission, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~/~~7~44~ Augusta, Georgia May21,2004 165 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs Year Ended December 31, 2003 I. Summary of the Auditor's Results The auditor's report expresses unqualified opinions on the financial statements of Augusta, Georgia as of and for the year ended December 31,2003. No material weaknesses were identified. No reportable conditions in internal control were identified. ' One instance of noncompliance is required to be reported in accordance with Government Auditing Standards, was disclosed by the audit as audit fmding 03-1. No reportable conditions in internal control over major federal award programs were disclosed by the audit as required to be reported in accordance with OMB Circular A-l33. The auditor's report expresses an unqualified opinion on compliance for major federal award programs for Augusta, Georgia as of and for the year ended December 31, 2003. The audit disclosed findings required to be reported in accordance with OMB Circular A-l33, Section 51O(a) as Finding Numbers 00-1 and 03-2. Identification of Major Programs CFDA Number Name of Federal Program or Cluster 14.239 14.231 U.S. Department of Housing and Urban Developrnent HOME Investment Partnerships Program Emergency Shelter Grant 16.592 U.S. Department of Justice Local Law Enforcement Block Grant DTSA20-03-P-50411 20.106 U.S. Department of Transoortation MOA - Security Reimbursements - TSA Airport Improvement Program Grants We used a threshold of $300,000 to distinguish between Type A and Type B programs. Augusta, Georgia is a low-risk auditee. 166 I I I I I I I I I I I I f I - I I I , I I 167 I AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued I Year Ended December 31, 2003 I II. Findings related to Financial Statements I Finding 03-1 Budgetary compliance I Criteria The State of Georgia local government budgets and audits code states that the legal level of control shall be, at a minimum, expenditures for each department for each fund for which a budget is prepared (Article I section 14). I Condition noted We noted that several departments across the government had expenditures above appropriations for the fiscal year. I Recommendation Augusta-Richmond County should increase the budget level of control to the department level. I III. Findings and Questioned Costs for Major Federal Award Programs Audit I Finding 00-1 (repeat fInding) U.S. Department of Justice CFDA 16.592; Local Law Enforcement Block Grant I Criteria The Grant A ward Letter Special Conditions number 8 states, "the recipient agrees to establish a trust fund in which all payment received under this program, including match, must be deposited. For purposes of this grant, a trust fund is an interest-bearing account that is specifically designated for this program... ". I Condition noted Augusta, Georgia did not establish a specifically designated trust fund for receipts under this program. Receipts were deposited in the pooled cash account of Augusta, Georgia and were initially recorded as receipts on the trial balance of another fund. I I Recommendation Augusta, Georgia should set up a separate interest-bearing account for Local Law Enforcement Block Grant receipts, transfer any unexpended grant balances to this account and notify the Department of Justice to, in the future, wire advances to this account for Local Law Enforcement Block Grant funds only. I Finding 03-2 U.S. Department of Transportation DTSA20-03-P-5041; MOU - Security Reimbursements I Criteria OMB Circular A-87 Cost Principles for State, Local and Indian Tribal Governments Section C(1)(h), "Factors Affecting Allowability of Costs - Not be included as a cost or used to meet cost sharing or matching requirements of any other Federal award in either the current or a prior period." I I I I AUGUST A, GEORGIA 168 r I I I I I I I I I I I I I , I , I I I I I I Schedule of Findings and Questioned Costs - Continued. Year Ended December 31,2003 Condition noted The City's Augusta Regional Airport at Bush Field requested security cost reimbursements for $39,000 of known questioned costs, under the DTSA20-03-P-5041 Memorandum of Understanding that had previously been reimbursed under the Airport Improvement Program grant. Controls over record keeping for the initial period of eligibility under the Memorandum of Understanding were not sufficient to ensure that funds were not previously drawn under the AlP grant. Recommendation The City's Augusta Regional Airport at Bush Field should develop controls over record keeping that include review and approval of reimbursement requests by both the Security Program Director and the Finance Director to assure proper administration of Federal Awards.