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Home My WebLink AboutAnnual Financial Statement Dec 31 2001 Augusta Richmond GA DOCUMENT NAME: 1-\ (\l ~ U A L ri l\lI.\NC-; A L ~ ""T AI ~ /Y) E.007 S \) e:c. 13 ';;2061 DOCUMENT TYPE: YEAR: ;;2. D D \ BOX NUMBER: ILP FILE NUMBER: J 4> 3 4 ~ NUMBER OF PAGES: 13(P I I I I I I I I I I I I I I I I I I I ,j-~ 71- /03 tJ)/ .~./ // AUGUSTA, GEORGIA Annual Financial Statements December 31,2001 I AUGUSTA, GEORGIA I Table of Contents I Report of Independent Certified Public Accountants General-Purpose Financial Statements: I I Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Unit I Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General, Special Revenue, and Debt Service Fund Types I I Combined Statement of Revenues, Expenses and Changes in Retained EarningslFund Balances - All Proprietary Fund Types and Similar Trust Funds Combined Statement of Cash Flows - All Proprietary Fund Types and Nonexpendable Trust Funds Pension Trust Funds - Statements of Plan Net Assets Pension Trust Funds - Statements of Changes in Plan Net Assets I Notes to Financial Statements I Pension Plan Required Supplementary Information Combining and Individual Fund Financial Statements: I Special Revenue Funds Combining Balance Sheet I I Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) Urban Services District Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual . I - Emergency Telephone System Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Capital Outlay Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Law Enforcement Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual I Fire Protection Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual I Occupational Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit)- Budget (GAAP Basis).and Actual Page 3 7 9 11 12 13 14 16 44 55 59 62 63 64 65 66 67 Special Assessment Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Promotiontrourism Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Housing and Neighborhood Development Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Urban Development Action Grant Fund (UDAG): Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Downtown Development Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual State Capital Grants Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Law Library Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual 5% Crime Victim's Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Supplemental Juvenile Service Fund: . Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Building Inspection Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Weed and Seed Federal Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit)- Budget (GAAP Basis) and Actual Wireless Phase: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Community Greenspace: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Debt Service Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Debt Service Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Page I 68 I 69 I I 70 I 71 I 72 I 73 I 74 I 75 I 76 I I 77 I 78 I 79 I 80 I 83 I 84 I 85 I I I I Urban Debt Service Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Capital Proiects Funds Combining Balance Sheet I Combining Statement of Revenues, Expenditures and Changes in Fund Balances Enterprise Funds I Combining Balance Sheet I Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits) Combining Statement of Cash Flows I I Internal Service Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits) Combining Statement of Cash Flows I Trust and Agencv Funds I Combining Balance Sheet Agency Funds I Combining Statement of Changes in Assets and Liabilities . Expendable Trust Funds I I Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Nonexpendable Trust Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances I Pension Trust Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances Nonexpendable Trust Funds Combining Statement of Cash Flows . I I Page 86 89 91 95 99 101 105 107 109 111 113 115 116 117 118 Compliance Section: Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Summary Schedule of Prior Audit Findings 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-133 Schedule of Findings Page I 122 I 124 I 125 I 127 I 128 130 I I I I I I I I I I I I I I I I I I Report of Independent Certified Public Accountants I Augusta-Richmond County Commission Augusta, Georgia I We have audited the accompanying general-purpose financial statements of Augusta, Georgia as of and for the year ended December 31, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Government's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We did not audit the financial statements of the Richmond County Department of Health, which represents 100 percent of the assets and revenues of the discretely-presented component unit column. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the' amounts included for the Richmond County Department of Health, is based on the report of the other auditors. I I I 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinion. I I In our opinion, based on our audit and the report of other auditors, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Augusta, Georgia as of December 31,2001, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. I I In accordance with Government Auditing Standards, we have also issued our report dated May -15, 2002, on our consideration of the Government's internal control over financial reporting and on our tests of its compliance with certain provisions oflaws, 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. I Our audit was conducted for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of Augusta, Georgia. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-l33, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general- purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general- purpose financial statements taken as a whole. I I I I ~. ~ J. 7~4 [(.,0 I .... Augusta, Georgia May 15,2002 I I I I I I I I I I I I I I I I I I I I General-Purpose Financial Statements 2 AUGUST A, GEORGIA I Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit I December 31, 2001 I ASSETS Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS Cash and temporary invesnnents $ 15,495,087 $ 19,640,683 $ 1,241,174 S 98,703,683 Investments Receivables (net of allowances for uncollectibles) Taxes 3,347,714 2,442,412 326,293 Accounts 4,815,472 436,248 1,526 3,222,922 Interest 57,684 66,614 Note 387,500 591,335 Intergovemmenta 1 20,742 1,374,045 Prepaid expenses 57,890 1,029,600 75,000 Inventory 133,838 Restricted assets: Certificates of participation investments: Acquisition/construction account 157,645 Reserve account 1,392,055 Revenue bond cash and investments: Construction account Cwrent debt service account Sinking fund account 565,026 Perpetual care Real estate investment Due from other funds 15,320,327 1,200,015 54,053 14,687 Property, plant and equipment (net) Other assets: Deferred bond issuance costs Revenue bond discount Other debits: Amount available in debt service fund Amount to be provided for retirement of genera1long-tenn debt Total assets and other debits 39,578,570 26,307,448 $ 4,202,346 $ 102,082,906 I I I I I I I I I I I I I I See notes to financial statements, I 3 I I I I I Proprietary Fiduciary Totals Totals I Fund Types FWld Type AccoWlt Groups (Memonmdum (Memorandum Only) General General Only) Internal Trust and Fixed Long-term Primary Component Enterprise Service Agency Assets Debt Government Unit 2001 2000 1$ 41,424,775 S 890,478 12,452,155 S S 189,848,035 S 1,139,993 S 190,988,028 S 158,463,520 1,462,896 87,450,198 88,913,094 88,913,094 91,710,035 29,555,482 35,671,901 35,671,901 29,044,858 I 6,211,377 6,942,184 21,629,729 123,668 21,753,397 18,911,066 10,030 773,320 907,648 907,648 1,255,405 .' 978,835 978,835 4.254,822 1,052,047 2,446,834 m,929 3,220,763 6,472,367 I 1,162,490 1,162,490 1,073,090 1,548,648 1,682,486 1,682,486 1,867,699 I 9,835,822 9,993,467 9,993,467 11,507,724 1,392,055 1,392,055 1,341,051 92,461,287 92,461,287 92,461,287 104,689,291 I 37 37 37 4,873,604 2,681,215 3,246,241 3,246,241 2,473,234 343,625 343,625 343,625 343,625 1.267,600 1,267,600 1,267,600 1,267,600 I 633,005 1,031,374 300,000 18,553,461 388,492 18,941,953 35,700,478 232,062,189 78,353 170,934,374 403,074,916 4,102,486 407,177,402 411,552,968 I 2,439,577 2,439,577 2,439,577 2,527,518 3,874,948 3,874,948 3,874,948 4,014,718 3,990,420 3,990,420 3,990,420 3,745,989 Is 13,898,049 13,898,049 461,016 14,359,065 16,530,803 385,862,031 S 18,778,211 132,142,380 S 170,934,374 S 17,888,469 S 897,776,735 S 6,989,584 S 904,766,319 S 913,621,465 I I I I I Continued on the following page. 4 I AUGUSTA, GEORGIA I Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit - Concluded I December 31, 2001 I LIABILITIES AND FUND EQillTY Governmental FlUId Types Special Debt Capital General Revenue Service Projects LIABILITIES AccoWlts and other payab1es S 1,325, I 08 $ 1,079,933 S $ 1,395,825 Accrued interest 166,396 Due to others Due to other funds 2,101,530 2,663,612 Accrued salaries and vacation 1,747,254 530,656 41,610 Other accrued liabilities 1,711,415 Current portion of capital leases payable Current portion of notes payable Payable from restricted assets: Accrued revenue bond interest Current portion of revenue bonds payable CustolDCT deposits Uncollected taxes Deferred revenues 3;177,087 9,037,365 211,926 Certificates of participation Bonds payable Notes payable - long-term portion Capital leases payable - long-term portion ClosW'Clpostclosure accrual TotalIlabllltles 10,162,394 13,477,962 211,926 1,437,435 FUND EQUITY AND OTHER CREDITS Contnbuted capital Invesunent in general fixed assets Retained earnings: Reserved for revenue bond debt Umeserved FlUId balances: Reserve for encwnbrances 1,299,290 328,599 6,004,047 Reserved for special sales tax projects 94,321,591 Reserved for special purposes Reserved for inventory/prepaid expenses 191,728 1,029,600 75,000 Reserved for employees' pension benefits Reserved for debt service 2,960,820 Unreserved - designated for capital improvements 244,833 Unreserved - designated for risk benefit 4,705,061 250,000 Unreserved - Wldesignated 23,220,097 12,250,887 Public Health program Total fund equity and other credits 29,416,176 12,829,486 3,990,420 100,645,47] TotalllabUlties and fund equity and other credits $ 39,578,570 S 26,307,448 $ 4,202,346 $ 102,082,906 I I I I I I I I I I I I I I I 5 I See notes to financial statements, I I I I Proprietary FiducillI)l Totals Totals Fund Types Fund Type Account Groups (Memorandum (Memorandum Only) Geneml General Only) I Internal Trust and Fixed Long-tenn Primary Component Enterprise Service AKl'ncy Assets Debt Government Unit 2001 2000 S 4,983,126 S 1,388,718 S 8,397 S S S 10,181,107 S 410,947 S 10,592,054 S 7,744,452 I 2,216,261 2,382,657 2,382,657 2,815,039 6,553,792 6,553,792 318,267 6,8n,059 9,734,362 10,344,333 1,188,606 2,255,380 18,553,461 388,492 18,941,953 35,700,478 850,598 24,287 3,464,298 6,658,703 461,016 7,119,719 6,167,417 I 1,711 ,415 1,711,4]5 876,289 488,785 488,785 488,785 1,200,807 1,200,807 1,200,807 1,143,440 2,207 2,207 2,207 I 1,320,000 1,320,000 1,320,000 1,275,000 64,120 64,120 9,566 73,686 60,921 29,555,482 29,555,482 29,555,482 22,436,451 214,766 12,741,144 12,741,144 12,526,104 I 711,207 15,899,863 16,611,070 16,611,070 18,789,826 160,329,382 6,944,467' 167,273,849 167,273,849 170,603,730 17,687,888 1,205,000 18,892,888 18,892,888 20,148,695 488,785 6,274,704 6,763,489 6,763,489 4,996,444 10,121,740 10,121,740 10,121,740 8,100,000 I 211,024,005 18,501 ,474 38,373,051 17,888,469 311,076,716 1,588,288 312,665,004 323,1] 8,648 64,976,846 64,976,846 64,976,846 64,976,845 170,934,374 170,934,374 4,102,486 175,036,860 196,037,812 I 390,234 390,234 390,234 390,234 109,470,946 276,737 109,747,683 109,747,683 105,401,512 7,631,936 7,631,936 9,589,975 I 94,321,591 94,321,591 73,236,847 947,739 947,739 947,739 1,333,476 1,296,328 1,296,328 1,240,590 92,821,590 92,821,590 92,821,590 96,898,697 2,960,820 2,960,820 2,780,789 I 244,833 244,833 244,833 4,955,061 4,955,061 5,750,000 35,470,984 35,470,984 31,462,426 1,298,810 1,298,810 1,158,781 I 174,838,026 276,737 93,769,329 170,934,374 586,700,019 5,401,296 592,101,315 590,502,817 S 385,862,031 $ 18,778,211 S 132,142,380 S 170,934,374 S 17,888,469 S 897,776,735 S 6,989,584 S 904,766,319 S 9]3,621,465 I I I I 6 AUGUSTA, GEORGIA I Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types, Expendable Trust Funds and I Discretely Presented Component Unit Year Ended December 31, 2001 I Governmental Fund Types I Special Debt Capital General Revenue Service Projects REVENUES I Ta,tes $ 62,811 ;177 $ 32,446,828 $ 1,517,377 $ 31,063,003 Licenses and permits 1,304,555 2,643,736 Use of money and property 2,486,482 518,387 110,755 3,447 ;130 Charges for services 14,433,605 2,767,569 Fines and forfeitures 7,189,355 374,221 I Intergovernmental 2,719,523 7 ;155,356 598,096 Contributions and donations 190,186 Other 24,829 421,548 59,200 Total revenues 90,969,626 46,617,831 1,628,132 35,167,529 I EXPENDITURES Current General government 21;136,991 1,470,840 713;100 I Judicial 8,964,873 341,994 Public safety 39,328,332 16,792,931 915,364 Public works 6,054,504 5,631,430 3,006,842 Health and welfare 2,716,759 169 128,550 I Culture and recreation 9,931,789 316,697 801,514 Housing and development 858,958 11,090,875 Debt service 1,611,690 1,389,631 1,383,701 I Capital outlay 3,386,910 4,551 ,415 9,659,475 Total expenditures 94,090,806 41,585,982 1,383,701 15;124,945 Excess of revenues over (under) expenditures '(3,121,180) 5,031,849 244,431 19,942,584 I OTHER FINANCING SOURCES (USES) Capital lease proceeds 3,386,910 1,301,415 Operating transfers in 3,428,159 6,369,633 I Operating transfers out (237 ,526) (13,464,416) (705,822) Excess of revenues over (under) expenditures and other financing sources (uses) 3,456,363 (761,519) 244,431 19,236,762 Fund balances, beginning of year, as previously stated 25,959,813 13,591,005 3,745,989 81,408,709 I Prior period adjustments Fund balances, beginning of year, as restated 25,959,813 13 ,591,005 3,745,989 81,408,709 Fund balances, end of year $ 29,416,176 $ 12,829,486 $ 3,990,420 $ 100,645,471 I I I I I See notes to financial statements. 7 I I I I I Totals Totals Fiduciary (Memorandum (Memorandum Only) Fund Type Only) Expendable Primary Component I Trust Government Unit 2001 2000 $ $ 127,838,485 $ $ 127,838,485 $ 122,170,926 3,948,291 3,948,291 3,794,939 I 45,147 6,608,001 6,608,001 8,232,113 2,389 17,203,563 1,432,683 18,636,246 17,873,648 7,563,576 7,563,576 7,978,768 10,572,975 9,076,060 19,649,035 18,372,409 190,186 190,186 250,142 I 505,577 246,665 752,242 678,978 47,536 174,430,654 10,755,408 185,186,062 179,351,923 I 23,421,031 23,421,031 20,476,581 9,306,867 9,306,867 8,838,293 57,036,627 57,036,627 51,488,254 I 14,692,776 14,692,776 16,507,090 2,845,478 10,604,544 13,450,022 13,548,214 31,344 11,081,344 11,081,344 11,111,502 11,949,833 11,949,833 10,263,132 I 4,385,022 4,385,022 5,135,275 17,597,800 17,597,800 16,186,292 31,344 152,316,778 10,604,544 162,921,322 153,554,633 I 16,192 22,113,876 150,864 22,264,740 25,797,290 I 4,688,325 4,688,325 15,175 9,812,967 9,812,967 7,766,318 (14,407,764) (14,407,764) (13,222,116) 31,367 22,207,404 150,864 22,358,268 20,341,492 I 631,656 125,337,172 1,158,781 126,495,953 106,242,392 (10,835) (10,835) (87,931 ) 63] ,656 125,337,172 1,147,946 126,485,118 106,154,461 I $ 663,023 $ 147,544,576 $ 1 ,298,81 0 $ 148,843,386 $ 126,495,953 I I I I 8 I AUGUST A, GEORGIA I Combined Statement of Revenues, Expenditures and Changes in Fund Balances - I Budget (GAAP Basis) and Actual- General, Special Revenue, Debt Service Fund Types Year Ended December 31,2001 I General Special Revenue Variance Variance I Favorable Favorable Budget Actual (Unfavorable ) Budget Actual (Unfavorable) REVENUES Taxes $ 59,020,118 $ 62,811,277 $ 3,791,159 $ 31,713,030 $ 32,446,828 $ 733,798 I Licenses and permits 1,443,000 1,304,555 (138,445) 2,774,224 2,643,736 (130,488) Use of money and property 2,332,351 2,486,482 154,131 113,571 518,387 404,816 Charges for services 14,819,537 14,433,605 (385,932) 2,779,441 2,767,569 (11,872) I Fines and forfeitures 7,963,778 7,189,355 (774,423) 458,722 374,221 (84,501) Intergovernmental 1,640,542 2,719,523 1,078,981 7,346,620 7,255,356 (91,264) Contributions and donations 22,450 190,186 167,736 Other 6,825 24,829 18,004 450,000 421,548 (28,452) Total revenues 87,226,151 90,969,626 3,743,475 45,658,058 46,617 ,831 959,773 I EXPENDITURES Current: General government 19,603,198 21,236,991 (1,633,793) 2,146,528 1,470,840 675,688 I Judicial 8,991,290 8,964,873 26,417 529,493 341,994 187,499 Public safety 41,302,634 39,328,332 1,974,302 17,525,570 16,792,931 732,639 Public works 6,937,100 6,054,504 882,596 6,688,249 5,631 ,430 1,056,819 Health and welfare 2,725,062 2,716,759 8,303 169 (169) I Culture and recreation 10,555,276 9,931,789 623,487 322,100 316,697 5,403 Housing and development 1,259,583 858,958 400,625 12,407,554 11,090,875 1,316,679 Debt service 1,617,389 1,611,690 5,699 2,192,187 1,389,631 802,556 I Capital outlay 3,386,910 (3,386,910) 4,551,415 (4,551,415) Total expenditures 92,991,532 94,090,806 (1,099,274) 41,811,681 41,585,982 225,699 Excess of revenues over (under) I expenditures (5,765,381 ) (3,121,180) 2,644,201 3,846,377 5,031,849 1,185,472 OTHER FINANCING SOURCES (USES) Capital lease proceeds 3,386,910 3,386,910 1,301,415 1,301,415 I Operating transfers in 5,989,344 3,428,159 (2,561,185) 9,535,312 6,369,633 (3,165,679) Operating transfers out (223,963) (237,526) (13,563) (13,381,689) (13,464,416) (82,727) Excess of revenues over (under) expenditures and other financing sources (uses) $ 3,456,363 $ 3,456,363 $ (761,519) $ (761,519) I Fund balances, beginning of year 25,959 ,813 13,591,005 Fund balances, end of year $ 29,416,176 $ 12,829,486 I I I I See notes to financial statements. I 9 I I I I I Debt Service Variance Favorable Budget Actual (Unfavorable) I $ 1,367,550 $ 1,517,377 $ 149,827 20,000 110,755 90,755 I I 1,387,550 1,628,132 240,582 I I I 1,387 ,550 1,383,701 3,849 1 ,387,550 1,383,701 3,849 I 244,431 244,431 I I $ 244,431 $ 244,431 3,745,989 I $ 3,990,420 = I I 10 I AUGUST A, GEORGIA I Combined Statement of Cash Flows - All Proprietary Fund Types and Nonexpendable Trust Funds I Year Ended December 31, 2001 Fiduciary Totals Proprietary Fund Types Fund Type (Memorandum Only) I Internal Nonexpendable Entetprise Service Trust 2001 2000 Cash flows from operating activities Operating income (loss) $ 555,411 $ (195,006) $ (1,873) $ 358,532 $ 8,068,286 I Adjustments to reconcile operating income (loss) to net cash provided by operating activities Sale ofproperty 23,382 23,382 Depreciation and amortization 12,699,929 85,695 12,785,624 9,745,725 Net change in assets and liabilities: I Accounts receivable (952,177) (782,033 ) (1,734,210) (1,009,751 ) Intergovernmental receivable (845,673) (845,673 ) (2,442) Other receivable 11,923 11 ,923 83,005 Inventory 151,551 151,551 (99,213) I Due from other funds 3,658,458 3,658,458 (5,992,719) Accounts payable 3,987,332 (568,0 I 0) 3,419,322 (123,587) Accrued salaries and vacation 515,543 13,180 528,723 (282,379) Accrued revenue bond interest (1 ,265) (1,265) (1,190) I Due to other funds (7,168,881) (1,969,844) 16,873 (9,121,852) 15,542,667 Customer deposits 3,199 3,199 3,221 Deferred revenue 214,766 214,766 C1osure1postclosure accrual 2,021,740 2,021,740 1,582,536 Net cash provided by (used In) I operating activities 14,851,856 (3,392,636) 15,000 11,474,220 27,514,159 Cash flows from noncapltal financing activities Other revenue (expense) (685,213) 116,041 (569,172) 208,135 I Intergovernmental revenue 3,907,455 3,907,455 2,446,850 Operating transfers (net) 3,309,252 (15,175) 3,294,077 4,050,798 Net cash provided (used) by noncapital financing activities 6,531,494 116,041 (15,175) 6,632,360 6,705,783 I Cash flows from capital and related financing activities Acquisition and construction of capital assets (29,401,687) (9,323) (29,411,010) (29,453,390) I Principal paid on revenue bonds (1,275,000) (1,275,000) (1,215,000) Principal paid on notes payable (1,632,226) (1,632,226) (1,088,870) Bond issuance costs 2,273 Principal paid on certificates of participation (793,672) (793,672) (83,189) Proceeds from long-term debt 1 ,466,356 1,466,356 93,275,913 I Interest on bond funds 6,370,931 6,370,931 2,455,356 Interest paid (10,071,972 ) (676,652) (10,748,624) (5,358,793) Net cash provided (used) by capital and related activities (35,337,270) (685,975) (36,023,245) 58,534,300 I Cash flows from Investing activities Interest received 1,189,623 469,834 1,659,457 1,805,284 Due from other funds - long-term 452,229 Purchase of investment (109,983) (109,983) (71,931) I Sale of certificates of participation 44,916 44,916 Net cash provided by investing activities 1,079,640 514,750 1,594,390 2,185,582 Net increase (decrease) in cash and cash I equivalents (12,874,280) (3,447,820) (175) (16,322,275) 94,939,824 Cash and cash equivalents, beginning of year 149,441 ,594 14,174,120 344,007 163,959,721 69,019,897 I Cash and cash equivalents, end of year $ 136,567 ,314 $ 10,726,300 $ 343,832 $ 147,637,446 $ 163,959,721 I I See notes to financial statements. 12 I I I I I I I I I I I I I I I - - I I I AUGUSTA, GEORGIA Pension Trust Funds Statements of Changes in Plan Net Assets Year Ended December 31, 2001 General Retirement Total 1945 Plan 1m Plan Plan (Memorandum Only) Additions Contributions Employer $ $ 820,304 $ $ 820,304 Plan members 9,262 I ,002,594 358,858 1,370,714 Total contributions 9,262 1,822,898 358,858 2,191,018 Investment income Net appreciation (depreciation) in fair value of investments (245,830) (171,794) (411,123) (828,747) Interest 44,397 39,119 (28,120) .55,396 Net investment income (loss) (201,433) (132,675) (439,243) (773,351 ) Total additions (reductions) (192,171 ) 1,690,223 (80,385) 1,417,667 DeductloDS Benefits 933,306 684,372 4,425,695 6,043,373 Refunds 234,852 234,852 Administrative expenses 66,629 74,670 375,970 517,269 Total deductions 999,935 993,894 4,801,665 6,795,494 Net Increase (decrease) before operating transfers (1,192,106) 696,329 (4,882,050) (5,377,827) Operating transfers Transfers in 1 ,300,720 1,300,720 Total operating transfers 1,300,720 1,300,720 Net Increase (decrease) (1,19~,106) 696,329 (3,581,330) (4,0n,107) Net assets held In trust for pension benefits BegilUling of year 12,745,073 12,956,994 71,196,630 96,898,697 End of year $ 11 ,552,967 $ 13,653,323 $ 67,615,300 $ 92,821,590 See notes to financial statements. 14 15 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 I I I I I I I I I I I Notes to Financial Statements 16 AUGUSTA, GEORGIA Notes to Financial Statements December 31,2001 Note 1 - Summary of significant accounting policies Augusta, Georgia (''the Government") accounts for its financial position and results of operations in accordance with generally accepted accounting principles (GAAP) applicable to governmental units. The Government's reporting entity applies all relevant Government Accounting Standards Board (GASB) pronouncements. Proprietary funds apply Financial Accounting Standards Board (F ASB) 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 uses several funds and account groups, which are described below. A. Fund types and account groups A fund or account group is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The Government maintains the following fund types and account groups: Governmental fund types, that include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds, are used to record the general operations of the Government. Governmental funds are accounted for using the current financial measurement focus. Only current assets and current liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available resources during a given period. Proprietary fund types, that are used to account for activities conducted on a fee for service basis in a manner similar to commercial enterprises, provide services to the Government (Internal Service Funds) and the public (Enterprise Funds). Proprietary funds use the economic resources measurement focus. The accounting objectives are determination of net income, financial position, and cash flows. All assets and liabilities associated with a proprietary fund's activities are included on its balance sheet. Proprietary fund equity is segregated into contnbuted capital and retained earnings. Fiduciary fund types (trust and agency funds), are Used to ac;:count for assets held by the Government as an agent for private individuals or organizations or in trust. Expendable trust funds account for financial activity in essentially the same manner as governmental funds. Pension Trust Funds use the economic measurement focus in essentially the same manner as proprietary funds. Agency funds are custodial in nature and do not involve measurement of results of operations. Generalfixed assets and general long-term debt account groups, are used to account for property and equipment and long-term obligations of governmental funds. B. 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 govemed 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. 17 I I I I I I I I I I I I I 1 '1 1 I I I I AUGUST A, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 1 - Summary of significant accounting policies (Continued) I Augusta, Georgia's combined financial 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 of GASB ' s Codification of Governmental Accounting and Financial Reporting Standards, include whether: I I · 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 benefitlburden on the County . there is fiscal dependency by the organization on the Government I I 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, arid Richmond County Public Facilities, Inc. (see Note 4E). I The component unit column in the combined financial statements includes the financial data of the Government's other component unit. 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. I Richmond County Department of Health - A voting majority of the board is appointed by the Government. I Complete financial statements for the individual component units may be obtained at the following address: Augusta, Georgia, Finance Department, 501 Greene Street, Augusta, Georgia 30901 I I The following organizations were excluded from the reporting entity because the elected officials of the Government are not financially accountable for the organization, and based on the nature and significance of their relationship, exclusion of the organizations would not result in the presentation of misleading or incomplete financial statements. Financial statements are available from the organizations. Augusta Housing Authority Augusta-Richmond County Coliseum Authority Augusta Canal Authority City of Augusta Hospital Authority I c. Basis of accounting Governmental fund types, agency funds and the expendable trust fund use a modified accrual basis of accounting. Revenues are recognized when available and measurable. Revenues that are accrued include federal and state grants and subventions, property taxes, transient occupancy taxes, sales taxes collected by the State on behalf of the Government prior to year-end, interest, and certain charges for current services. Revenues that are not considered suscepn'ble to accrual include certain licenses, permits, fines, forfeitures, penalties, and other taxes. Expenditures, other than interest on long-term debt, are recorded when the liability is incurred. . I Proprietary fund types and the nonexpendable trust fund and pension trust funds are accounted for on the accrual basis. The accrual basis of accounting recognizes revenues when earned. Expenses are recorded when incurred I I 18 AUGUSTA, GEORGIA I Notes to Financial Statements - Continued I December 31, 2001 Note 1 - Summary of significant accounting policies (Continued) I D. Fixed assets and long-term liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Fixed assets used in a governmental fund type operation (general fIxed assets) are accounted for in the General Fixed Asset Account Group, rather than in the governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized as these assets are immovable and are of value only to the Government. I I All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fIxed assets are valued at their estimated fair value on the date donated. Long-term liabilities expected to be fmanced from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. I I The two account groups are not "funds". They only measure the financial position, not the. measurement of results of operations. I Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," because they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of long-term loans receivable are offset by fund balance reserve accounts. I Special reporting treatments also are applied to governmental fund inventories to indicate that they do not represent "available spendable resources," even though they are a component of net current assets. Such amounts generally are offset by fund balance reserve accounts. . I Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Because they do not affect net current assets, such long-term amounts are not recogniied as governmental fund type expenditures or fund liabilities. They instead are reported as liabilities in the General Long-Term Debt Account Group. I I All proprietary funds and Nonexpendable Trust and Pension Trust Funds are accounted for on a cost of services or "capital maintenance" measurement focus. Depreciation of all exhaustIble fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: I Buildings Vehicles Machinery and equipment Furniture and fixtures Water and sewerage systems Landfill Cell IT C 7 - 40 years 1 - 15 years 1 - 20 years 1 - 15 years 10 - 40 years 10 years I I Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest eamed on the invested proceeds over the same period. During 2001, no interest costs were capitalized because interest expenditures related to constructed assets did not exceed related interest revenue. I I I 19 I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31,2001 I Note 1 - Summary of significant accounting policies (Continued) I E. Budgets and budgetary accounting The Government generally follows these procedures in establishing the budgetary data reflected in the financial statements: I 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 generally accepted accounting principles (GAAP). I I I I Budget information for expenditures represent thi: operating budget (as amended) as approved by the Augusta- Richmond County Commission. I F. 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 issueq 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. . - G. Cash and cash equivalents . . The Government maintains a cash and investnient 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 financial statement presentation. Interest income is allocated to each fund monthly based on its average monthly balance. For the pmposes of financial statement presentation, the Government considers all highly liquid investments with an original maturity of three months or less, or with insignificant early withdrawal penalties, to be cash equivalents. Exceptions include the 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. 20 AUGUST A, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 1 - Summary of significant accounting policies (Continued) I H. Investments Investments are reported at cost, except for the investments in the Government's pension plans which are reported at fair value. For these investments, fair value is determined as follows: short-term investments are reported at cost, which approximates fair value; securities traded on national exchanges are 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 cost. I I I. 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 I J. Interfund transactions 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. I Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursement to a fund for expenditures/expenses initially made on behalf of another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is being reimbursed. I I All other interfund transactions, except for quasi-external traIlS actions and reimbursements, are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. I K. 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. I L. Restricted assets Certain assets of the Debt Service Fund, Enterprise Fund, and Intemal Service Fund are classified as restricted assets on the balance sheet because their use is limited by applicable debt covenants. . I M. Compensated absences Government employees are entitled to certain compensated absences based upon their length of employment. No liability is reported for unpaid accumulated sick leave since it is the Government's policy to record the cost of sick leave only when it is used. Vacation pay and cOmp time are accrued when incurred in proprietary funds and reported as a fund liability. Vacation pay and comp time that are expected to be liquidated with expendable available financial resources are reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources are reported in the General Long-Term Debt Account Group and no expenditure is reported for these amounts. !!!! . ii I I 21 I I I I I I I I I I I I . AUGUST A, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 1- Summary of significant accounting policies (Continued) N. Comparative data and reclassifications Comparative total data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the Government's financial position and operations. Comparative (i.e., presentations of prior year totals by fund type) data has not been presented in each of the statements because their inclusion would make the statements unduly complex and difficult to read. Also, certain reclassifications to data presented in the prior year columns have been made to conform to current year classifications. O. Total (memorandum only) columns Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations or cash flows in conformity with accounting principles generally accepted in the United States of America. Data is not representative of a consolidation. Interfund eliminations have not been made in the aggregation of this data. P. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make es~tes 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. 22 AUGUSTA, GEORGIA Notes to Financial Statements - Continued I I I I I I I I I I I I I . December 31,2001 Note 2 - Stewardship, compliance and accountability A. Excess of expenditures over appropriations Expenditures Budget Actual (Excess ) Total General Funds $ 92,837,261 $ 94,538,115 $ (1,700,854) Special Revenue Fund Urban Services District 6,367,745 4,920,114 1,447,631 Emergency Telephone System 3,020,877 2,763,107 257,770 Capital Outlay 1,134,665 105,463 1,029,202 Law Enforcement (Sheriff's Capital Outlay) 55,441 7,481 47,960 Fire Protection 15,323,833 15,951,035 (627,202) Occupational Tax 12,500 12,500 Special Assessment (Street Lights) 1,374,818 1,357,987 16,831 Promotion 3,780,000 3,643,049 136,951 CDBG (HND) 7,610,635 6,623,522 987,113 UDAG 450,000 3,498,067 (3,048,067) Downtown Development Authority 1,183,414 1,179,904 3,510 Law Library 44,222 44,222 5% Crime Victim's Assessment 414,700 316,844 97,856 Supplemental Juvenile Service 14,000 8,705 5,295 Building Inspection 839,661 788,043 51,618 Weed and Seed 185,170 224,365 (39,195) Wireless Phase 80,796 (80,796) Community Greenspace 105,000 (105,000) Total Special Revenue Funds 41,811,681 41,585,982 225,699 Debt Service Debt Service 1,006,800 1,004,800 2,000 Urban Debt Service 380,750 378,901 1,849 Total Debt Service Funds 1,387,550 1,383,701 3,849 Capital Projects Fund Special Sales Tax 3,845,527 176,297 3,669,230 Special Sales Tax, Phase II 11,348,450 696,667 10,651,783 Special Sales Tax, Phase III 51,066,934 9,521,787 41,545,147 Special Sales Tax, Phase N 9,471,589 5,536,016 3,935,573 Total Capital Projects Funds 75,732,500 15,930,767 59,801,733 I - - 23 I I I I 24 General Fund $ 29,416,176 I I I I I I I I I I I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 2 - Stewardship, compliance and accountability (Continued) B. Fund Balance or Retained Earnings (Deficit) Following is a detail of fund balance/retained earnings (deficit) by fund. Agency funds, which serve only a custodial function, do not have fund balances and are, therefore, not included. Fund Balance/ Retained Earnings (Deficit) Special Revenue Urban Services District Emergency Telephone System Capital Outlay Law Enforcement Fire Protection Occupation Tax Wireless Phase Community Greenspace Special Assessment Promotion!Tourism Housing and Neighborhood Development Urban Development Action Grant Downtown Development Authority Law Library 5% Crime Victim's Assessment Supplemental Juvenile Service Building Inspection Weed and Seed Federal Grant $ 2,916,148 (169,230) 3,750,467 286,156 1,986,627 3,037 536,006 499,510 203,606 23,620 1,042,452 1,545,996 (60,128) (22,350) 583,903 40,706 (367,429) 30,389 Total Special Revenue Funds $ 12,829,486 - . iiii iiii 3,092,614 897,806 Debt Service Debt Service Urban Debt Service Total Debt Service Funds $ $ 3,990,420 - . . Capital Projects Community Development (Capital Projects) Special Sales Tax Special Sales Tax Phase II Special Sales Tax Phase ill Special Sales Tax Phase N Total Capital Projects Funds $ 244,833 4,200,474 14,679,863 58,697,880 - !!!! 22,822,421 - $ 100,645,471 I - - 25 - . I I I I I I I I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31,2001 Note 2 - Stewardship, compliance and accountability (Continued) Fund Balance/ Retained Earnings (Deficit) Enterprise Waste Management Water and Sewerage Augusta Regional Airport at Bush Field Municipal Golf Course Transit Daniel Field Airport Old Government House Newman Tennis Center Garbage Collection $ (713,423) 91,369,481 23,521,281 523,094 (5,876,501) 771,730 94,508 (163,500) 334,510 Total Enterprise Funds $ 109,861,180 Internal Service Risk Management Fleet Operations Workers Compensation Employee Health Benefits GMA Leases Unemployment Long-term Disability Insurance $ 577 ,908 (35,607) (24,154) (4,505) (236,989) 118 (34) Total Internal Service Funds $ 276,737 Trust 1945 Pension Fund 1977 Pension Fund General Retirement Expendable Trust Fund - Joseph Lamar Expendable Trust Fund - Perpetual Care Non-expendable Trust Fund - Joseph Lamar Non-expendable Trust Fund - Perpetual Care $ 11,552,967 13,653,323 67,615,300 (280) 663,303 5,207 279,509 Total Trust Funds $ 93,769,329 The Government plans to fund the deficits through contnbuted capital and the general operations of the GovefIlll?ent. Note 3 - Detailed notes on all funds and account groups A. Deposits and investments At December 3 l, 2001, the Government's cash and cash equivalents balance on the combined balance sheet included demand deposits, certificates of deposit, repurchase agreements, and local government investment pools. The cash balance was secured by Federal Depository Insurance Corporation (FDIC) or Savings Association Insurance Fund (SAIF) or by collateral held by the agent in the Government's name. 26 AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 3 - Detailed notes on all funds and account groups (Continued) I The local government investment pool "Georgia Fund 1 ", 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-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distnbutes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. I I The carrying amount of the Government's deposits with financial institutions was $69,711,125 and the bank balance was $69,323,274. The bank balance was categorized as follows: I Amount insured by the FDIC Amount collateralized with securities held by pledging institutions in the Government's name $ 300,000 69,023,274 I I I Total bank balance of deposits $ 69,323,274 Investments made by the Government, including repurchase. agreements consisting of U.S. Treasury notes, are summarized below. The investments that are represented by specific identifiable investment securities are classified as to credit risk by the three categories described below: Category Carrying Market 2 3 Amount Value Repurchase agreements $ 99,741,409 $ $ $ 99,741,409 $ 99,741,409 U.S. Government securities 40,975,088 40,975,088 40,975,088 Corporate bonds and equity securities 63,932,677 63,932,677 63,932,677 Local government investment pool 112,977 ,535 112,977 ,535 Carrying amount of deposits with financial institutions 69,711,125 69,711,125 $ 387,337,834 $ 387,337,834 - - The balances shown on the combined balance sheet are as follows: Cash and temporary investments - primary government Cash and temporary investments - component unit Investments Restricted assets: Certificates of participation investments: Acquisition/construction account Reserve account Revenue bond cash and cash equivalents: Construction account Debt service account Sinking fund account Perpetual care $ 189,848,035 1,139,993 88,913,094 9,993,467 1,392,055 92,461,287 37 3,246,241 343,625 $ 387,337,834 27 I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 3 - Detailed notes on all funds and account groups (Continued) I The Government's investments are shown by type, carrying amount, market value and level of risk assumed in the holdllg of the various securities. The levels of risk assumed in the various investments are categorized as follows: I 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. I I B. Receivables I Property taxes are administered on a calendar year basis subject to the following dates: I Lien date January 1 Levy date August 15 Collection period September 15 - November 15 Due date November 15 Receivables at December 31, 200 I, including the applicable allowances for uncollectible accounts, consist of the following: Special Debt Capital Internal Trust and General Revenue Service Projects Enterprise Servi ce Agency Total Receivables: Taxes $ 3,670,779 $ 2,715,560 $ 340,134 $ - $ $ $ S 6,726,473 Accounts 5,113,191 761,069 1,526 3,222,922 6,686,557 6,870,977 2,770 22,659,012 Interest 57,684 66,614 10,030 770,550 904,878 Note 387,500 591,335 978,835 Intergovernmental 20,742 I ,374,045 1,052,047 2,446,834 Gross receivables 9,192,212 5,499,693 341,660 3,289,536 7,748,634 6,870,977 773,320 33.716,032 Less: allowance for uncollectibles 620,784 597.969 13,841 525,179 1,757.773 Net total receivables $ 8,571,428 $ 4,901,724 $ 327,819 $ 3,289,536 $ 7,223,455 $ 6,870.977 $ 773,320 $ 3 1.958,259 I I I In addition to the above loans receivable, a bank maintains records for certain notes receivable that are not recorded in the accounts of the Government. These loans represent funds received through ffi]D'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, Repayments of these loans are recorded as other revenue in the Housing and Neighborhood Development Fund. In a prior year, the former City of Augusta entered into an agreement with the Georgia Housing and Finance Authority (GHFA) to aid in the administration of Federal funds granted through the State for HlJD'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 financial statements. 28 C. Fixed assets Activity in the General Fixed Assets Account Group for the year ended December 31, 2001, was as follows: Balance Balance January 1, 2001 Additions Deletions December 31,2001 Land $ 16,225,830 $ 120,820 $ 892,840 $ 15,453,810 Land improvements 413,665 8,058,705 8,472,370 Buildings 61,731,468 4,905,713 66,637,181 Building improvements 7,207 2,535,050 2,542,257 Tax levy acquisitions 30,984 30,984 Vehicles 21,463,661 2,120,253 3,676,399 19,907,515 Machinery and equipment 7,238,668 1,993,353 9,232,021 IT - hardware 1,749,089 1,392,549 3,141,638 IT - software 270,023 602,516 872,539 Furniture and fixtures 13,386,908 12,313,145 1,073,763 Other capital 24,139,163 17,341,709 6,797,454 Construction in progress 32,969,731 4,171,285 12,992,673 24,148,343 Richmond County Public Facilities, Inc. 12,655,483 12,655,483 $ 192,281,880 $ 25,900,244 $ 47,247,750 $ 170,934,374 Fixed assets for proprietary funds as of December 31, 2001, were as follows: Internal Enterprise Service Land $ 11,269,157 $ Land improvements 748,047 Buildings 52,067,066 Building improvements 74,837 3,525 Vehicles 13,952,865 158,198 Machinery and equipment 8,261,283 204,739 IT - hardware 101,376 9,544 IT - software 2,063,197 12,962 Furniture and fixtures 811 ,846 88,825 Other capital 19,227,510 Construction in progress 36,110,554 Water and sewerage systems 201,661,627 Contnbuted water and sewerage systems 10,563,423 Infrastructure 1,275,322 Landfill Cell II C 9,119,078 Total 367,307,188 477,793 Less accumulated depreciation ( 13 5,244,999) (399,440) Net property, plant and equipment $ 232,062,189 $ 78,353 I I I I I I I I I I I I I I AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 3 - Detailed notes on all funds and account groups (Continued) - - - - 29 I I I I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 3 - Detailed notes on all funds and account groups (Continued) I D. Landfill closure and postclosure costs I 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 $10,121,740 as of December 31, 2001, which is based on 71% 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 $2,384,495 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity, which is in the next 3.5 years. The estimated total current cost of the landfill closure and postclosure care, $12,506,235, 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, 2001. 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. I I I I The Government expects to fmance 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. E. Long-term debt 1. General long-term debt Changes in general long-term liabilities . During the year ended December 31, 2001, the following changes occurred in liabilities reported in the General Long- Term Debt Account Group (in thousands): Accrued General Certificates Vacation! Obligation Of Notes Revenue Comp Capital Bonds Participation Payable Bonds Time Leases Total 2,905 $ 1,430 $ 1,260 $ 6,144 $ 3,112 $ 4,996 $ 19,847 2,614 4,688 7,302 1,215 1,430 55 890 2,262 3,409 9,261 1,690 $ $ 1,205 $ 5,254 $ 3,464 $ 6,275 $ 17,888 Balance, 12-31-00 $ Additions Retirements Balance, 12-31-01 $ In the financial statements for the year ended December 31, 2000, the General Long-Term Debt Account Group incorrectly reported a net pension obligation of $9,065,000; the net pension obligation at December 31, 2000 should have been reported as $0. General Obligation Bonds $8,000,000 1981 Public Building Bonds - due in annual installments of$550,000 to $990,000, plus interest at 6.5% to 9.6%, through January 2002. $ 990,000 $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. . 700,000 Total $ 1,690,000 30 AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I I Note 3 - Detailed notes on all funds and account groups (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 General Long-Term Debt Account Group. As of December 31, 2001, the amount of defeased debt outstanding but removed from the General Long-Term Debt Account Group is $l ,560,000. I I Notes payable Housing and Neighborhood Development: Section 108 loan - due in annual installments of $40,000 to $1,010,000, plus interest at 35 basis points above LIBOR adjusted on the fIrst day of each month, through August 2005. I $ 1,205,000 I 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. $3,816,0001990 Downtown Development Authority Bonds - due inannua1 installments of $170,000 to $375,000, plus interest at 7.55%, through January 2010. 2,575,000 I I $ 1,870,000 $3,500,000 1993 Downtown Development Authority Bonds - due in monthly principal and interest installments of $41 ,075 through May 2002. 177,544 - - - - Augusta Port Authority: . $1,200,000 1993 Augusta Port Authority Bonds - due in monthly principal and interest installments of$9,773 through April 2008. 631,923 - Total $ 5,254,467 2. Enterprise Funds' debt Revenue bonds Water and Sewer: $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$2,176,182). 61,795,000 $5,910,000 1997 Water and Sewer Bond - due in annual installments of $1 00,000 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$453,764). 5,220,000 Augusta Regional Airport at Bush Field: $1,200,000 1972 Augusta Airport Improvement Bonds - due in annual installments of $70,000 to $85,000, plus interest at 5.9% through April 2002. 85,000 Total $ 164,180,000 31 - I I I I I I I I I I I I - - AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 3 - Detailed notes on aU funds and account groups (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. $ 4,151,057 State revolving loan - due in quarterly principal and interest installments of $305,904, plus interest at 5.5%, through June 2011. 8,747,915 State revolving loan - principal and interest due in quarterly installments of $119,392, plus interest at 4%, through July 2019. 5,989,723 Total $ 18,888,695 Certificates of Participation Municipal Golf Course Fund: $1,705,000 Certificates of Participation (Series 1998) Augusta Golf Course Project - due in semi- annual installments of $37,700 to $80,800, plus interest at 5.18% (to be adjusted to not more than 15% on December 31,2003) through June 2013. $ 711,207 $16,888,000 Certificates of Participation - principal due in a lump sum payment on June I, 2028. Interest only payments are due annually at a rate of 4.75%, through June 1,2028. Original issue amount Original issue discount $ 16,888,000 (1,033,053) $ 15,854,947 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. 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, 2001, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund is $8,956,078. . 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. 32 AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 3 - Detailed notes on all funds and account groups (Continued) 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. Certificates of Participation 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 $1,033,053 at $15,854,947. 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 1, 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$5,737,923 was leased during 2001. 3. Debt service requirements to maturity The annual requirements to amortize debt outstanding as of December 31,2001, including interest are as follows: General Proprietary Obligation Notes Revenue GLTDAG Funds Bonds Payable Bonds Total Debt 2002 $ 1,415,475 $ 171,400 $ 981,147 $ 2,568,022 $ 12,008,757 2003 366,625 170,880 798,147 1,335,652 11,890,478 2004 195,064 797,824 992,888 11,894,496 2005 1,133,016 795,255 1,928,271 11,894,749 2006 795,255 795,255 12,245,807 Thereafter 2,860,980 2,860,980 294,649,173 1,782,100 1,670,360 7,028,608 10,481,068 354,583,460 Less interest (92,100) (465,360) (1,774,141) (2,331,601 ) (173,334,176) $ 1,690,000 $ 1,205,000 $ 5,254,467 $ 8,149,467 $ 181,249,284 F. Leases I I I I I I I I I I I I I I 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 defmed by Statement of Financial Accounting Standards No. 13 Accounting for Leases and the National Council on I Governmental Accounting Statement No. 5 Accounting and Financial Reporting Principles for Lease Agreements of State and Local Governments. 33 I I I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31,2001 I Note 3 - Detailed notes on all funds and account groups (Continued) I Future minimum lease payments under the leases and the net present value of the minimum lease payments as of December 31,2001 are as follows: I I General Long-term Obligations 2002 2003 2004 2005 2006 Thereafter $ 3,110,450 1,878,762 299,332 275,777 208,845 501,538 I I Present value oflease payments $ 6,274,704 Proprietary Funds $ 488,785 488,785 $ 977,570 I The Government is lessor ofterminal 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. I During 2001, rental income totaled approximately $2.2 million and $79,000 in the Augusta Regional Airport at Bush Field and Daniel Field Airport Funds, respectively. I The assets acquired through capital leases as of December 31, 2001 are as follows: . - General Fixed Assets Vehicles Machinery and equipment $ 9,414,534 2,058,273 Less: accumulated depreciation Carrying value $ 11,472,807 34 Enterprise Funds $ 998,519 1,610,312 521,766 $ 2,087,065 AUGUST A, GEORGIA I Notes to Financial Statements - Continued I December 31, 2001 Note 3 - Detailed notes on all funds and account groups (Continued) I G. Due to/from other funds (excluding component unit) I Interfund Receivable Payable General Fund $' 15,320,327 $ 2,101,530 I Special Revenue Funds: Urban Services District 215,255 546,208 Capital Outlay 836,634 479,377 I Fire Protection 107,791 375,499 Special Assessment 40,154 Downtown Development Authority 552,939 I Law Library 22,310 5% Crime Victim's Assistance 181 Building Inspection 349,312 Weed and Seed Federal Grant 66,772 I Emergency Telephone 271,195 Debt Service Funds: Debt Service Fund 32,190 I Urban Debt Service Fund 21,863 Capital Projects Funds: Special Sales Tax, Phase III 14,687 Enterprise Funds: I Waste Management 82,485 Water and Sewer 39,047 5,808,692 Augusta Regional Airport at Bush Field 479,167 2,533,456 I Municipal Golf Course 523,685 Transit 3,344 1,165,079 Daniel Field Airport 134,630 Old Government House 18,752 I Newman Tennis Center 160,039 Garbage Collection 28,962 Internal Service Funds: I Risk Management and Employee Health Benefits 1,031,374 341,094 Unemployment 66,259 GMA Leases 781,253 Trust and Agency Funds: I Tax Commissioner 1,364,537 Probate 12,093 Civil Court 62,005 Clerk of Court 533,341 iiii Joseph R. Lamar Expendable Trust 280 = Perpetual Care Nonexpendable Trust Funds 59,116 . 1945 Plan 300,000 General Retirement 224,008 . $ 18,553,461 $ 18,553,461 I I 35 I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 3 - Detailed notes on all funds and account groups (Continued) H. Contributed capital I During 2001, the Government did not have any changes in contributed capital in proprietary funds due to contributions offixed assets by subdividers and developers. The following schedule summarizes the contributed capital by fund: Augusta Regional Airport at Bush Field En tcrpri se Funds Waste Management Water And Sewer Transit Daniel Field Airport Old Government House Totals I I Contributed capital, December 31, 200 I $ 1,741,644 $ 41,896,587 $ 10,980,252 $ 10,015,263 $ 314,900 $ 28,199 $ 64,976,845 I Note 4 - Other information A. Risk management I 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 finance its self-insured risks ofloss. The Risk Management Funds are maintained to provide .general liability insurance, workers' compensation coverage, unemployment coverage and employee health benefits coverage. The Government is self-insured for its employee group health insurance and workers' compensation coverage through a self-insurance program that is administered under contracts with third party administrators. Future claims can be paid from designated funds established in 1987 from previously unrestricted-unreserved funds. Balances as of December 31, 200 I, include the following: I I General Fund Fire Protection Fund Risk Management Fund $ 4,705,061 250,000 577,908 I Total reserve $ 5,532,969 I 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, 2000 to December 31,2001: Unpaid claims, January 1, 2000 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31, 2000 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31,2001 $ 207,981 3,295,048 (2,903,029) 600,000 3,481,787 (3,631,787) $ 450,000 36 AUGUST A, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 4 - Other information (Continued) B. Segment information for Enterprise funds The Government maintains nine enterprise funds. Segment information for the year ended December 31, 2001, is presented below: Augusta Water Regional Municipal Waste And Airport at Golf Management Sewer Bush Field Course Transit Operating revenues $ 4,005,239 $ 38,339,666 $ 5,699,490 $ 716,650 $ 718,259 Depreciation and amortization 1,099,054 9,735,642 1,183,701 79,122 635,961 Operating income (loss) (1,414,197) 6,619,946 (670,858) 37,493 (3,081,811) Operating transfers, net (44,000) 705,822 1,432,904 Net income (loss) (1,232,306) 3,540,046 1,032,744 651,444 306,977 Net working capital 6,136,430 16,795,490 10,250,959 (541,346) (898,353) Property, plant and equipment additions 215,905 25,925,273 1,968,837 61,819 I, 176,795 Total assets 11,397,937 326,477,248 38,728,780 1,786,566 5,490,396 Bonds payable and other other long-term liabilities 10,121,740 178,506,055 711 ,207 Total retained earnings (deficit) (713,423) 91,369,481 23,521,282 523,093 (5,876,501) Total equity 1,028,221 133,266,069 34,501,534 523,093 4,138,762 Daniel Old Newman Field Government Tennis Garbage Airport House Center Collection Operating revenues $ 79,070 $ 45,896 $ 193,897 $ 1,378,750 Depreciation and amortization 32,488 23,961 Operating loss (26,418) (61,823) (82,335) (764,589) Operating transfers, net 44,000 55,900 14,626 1,100,000 Net income (loss) 33,699 ( 6,906) (51,638) 334,510 Net working capital 151,180 (21,268) ( 164,500) 334,510 Property, plant and equipment additions 53,058 Total assets 1,275,481 144,175 12,172 549,276 Total retained earnings ( deficit) 771,730 94,508 (163,500) 334,510 Total equity (deficit) 1,086,630 122,707 (163,500) 334,510 C. 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. 37 I I I I I I I I I I I I I I - - iii I I I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 4 - Other information (Continued) I 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, 2001, 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, if any, of expenditures, which may be disallowed by the granting agencies, is expected to be immaterial. I I D. Contracts and commitments I Augusta-Richmond County Coliseum Authority The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt to the extent of the 3% Hotel-Motel Excise Tax and 30% of the Beer Tax collected. I E. Richmond County Public Facilities, Inc. I The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code Section 501(c)(3). The purpose of this nonprofit organization is to construct and maintain buildings and equipment to be leased by the Government, the Department of Flimily and ~hi1dren 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. I 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 fmaDcial statements of the Government in the General Fixed Asset Account Group. The Certificates of Participation were retired during 2001. . 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. PlaD descriptions, contribution informatioD and funding policies The Government has seven single-employer pension plans and one agent multiple-employer pension plan currently in existence. These plans are defined benefit plans. The Government also has a single-employer, defined contribution plan. The following is a summary of funding policies, contribution methods, and benefit provisions for each plan. Single-employer 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 contnbute the remaining amounts necessary to fund the Plan. If a participant terminates employment prior to completion of ten years 38 AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31,2001 I Note 5 - Pension plans (Continued) I 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). I I 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 I % 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 contnbutions 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 contnbutions 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). I I I I The funding policy 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 contnbution requirements are the same as those used to determine the standard measure of the pension obligation. I I General Pension Plan. Policemen's Pension Plan. Firemen's Pension Plan and the City Emolovees' 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). I I 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). I - . Periodic employer contnbutions 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 39 . . I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 5 - Pension plans (Continued) I 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. I Agent multiple-emoloyer 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 final five-year average salary times the number of years of which they were employed as a participant in the GMEBS. The final five-year average salary is the average salary of the employee during the final five years 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 contnbute 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 financial 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. . . I I I I I I Periodic employer contributions to the pension plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The Plan is subject to the minimum funding standards of the Public Retirement Systems Standards Law. Since the 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 those used to determine the standardized measure of the pension obligation. I I 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 38 52 5 3 11 15 160 81 155* 4 781 8 4 159 246 Total 365 167 1,190 Includes terminated employees from 1998 and 1999 previously counted as active. 40 AUGUSTA, GEORGIA Notes to Financial Statements - Continued December 31, 2001 Note 5 - Pension plans (Continued) 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 ofCornmissioners 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 Internal Revenue Code, and is administered by Nationwide Life Insurance, PP A 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 31,2001, there were approximately 1,105 plan participants. Participants are considered fully vested in the Government's contributions after completing five (5) years of service. For the year ended December 31,2001, the employees' contnbutions were approximately $1,013,000, and the Government's contributions were approximately $506,500. 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 oftbe plan. For information relating to reported investment values, see Note 1 H. 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 defined in GASB Statement No. 27. The annual pension cost equals the Government's annual required contnbution, 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. 41 I I I I I I I I I I I I I I - = - I I I I I AUGUSTA, GEORGIA I Notes to Financial Statements - Continued December 31, 2001 I Note 5 - Pension plans (Continued) I E. Trend information Fiscal Annual Actual Percentage of Net Year Pension County APC Pension I Beginning Cost Contribution Contnbuted Obligation 2000 1945 Plan 01/01/2000 $ $ 100% $ 1977 Plan 01/01/2000 940,054 940,054 100% I General Pension Plan 01/01/2000 102,476 I 02,476 100% Policemen's Pension Plan 01/01/2000 44,880 44,880 100% Firemen's Pension Plan 01/01/2000 205,435 205,435 100% I City Employees' Pension Plan 01/01/2000 302,169 302,169 100% General Retirement Plan (City 1949) 01/01/2000 100% I GMEBS 01/01/2000 204,576 204,576 100% Fiscal Annual Actual Percentage of Net I Year Pension County APC Pension Beginning Cost Contribution Contnbuted Obligation 2001 1945 Plan 01/01/2001 $ $ 100% $ I 1977 Plan 01/01/2001 979,131 979,131 100% 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 01/01/2001 214,272 . 214,272 100% City Employees' Pension Plan 01/01/2001 263,080 263,080 100% General Retirement Plan (City 1949) 01/01/2001 100% Gl\.1EBS 01/01/2001 192,622 192,622 100% Note 6 - Deferred compensation plan The Government offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Government employees, pennits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Prior to 1999, all amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights were (until paid orrnade available to the employee or other beneficiary) solely the property and rights of the Government (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Government's general creditors. Participants' rights under the plan are equal to those of general creditors of the Government in an amount equal to the fair market value of the deferred account for each participant In 1996 Congress passed new legislation requiring existing Internal Revenue Code Section 457 plans be modified so that by 1999 all assets and income of the plan are to be held in trust for the exclusive benefit of participants and their beneficiaries. All assets of the plan are held by an independent administrator. 42 AUGUSTA, GEORGIA I Notes to Financial Statements - Concluded December 31, 2001 I Note 6 - Deferred compensation plan (Continued) I In compliance with GASB Statement 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the Government has not included the assets of the deferred plan or the obligations owed to plan participants in the Government's financial statements. I Note 7 - Joint venture I 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 ROC). The CSRA ROC 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.) ~58-8-34 with annual dues based on a per capita amount. During the year ended December 31,2001, the Government paid $101,934 in such dues, which was based on a per capita amount of $.55. The CSRA ROC Board membership is composed of one city official, one county official, and one private sector individual from each county. O.C.G.A. ~58-8-39.1 provides that the Government is liable for any debts or obligations of the CSRA ROC. The Comprehensive Annual Financial Report of the CSRA RDC may be obtained from: I I I CSRA Regional Development Center 2123 Wrightsboro Road Augusta, Georgia 30904-0800 I Note 8 - Hotelfmotellodging tax I The Government has levied a 6% lodging tax. A s~ of the transactions for the year ended December 31, 2001 follows: Lodging tax receipts $ 2,792,492 . - - Disbursements to the Augusta-Richmond County Coliseum Authority, Augusta Convention and Visitors Bureau, and the Augusta Museum for promotion of tourism (2,792,492) Balance of lodging tax funds on hand at end of year $ 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 9- New reporting standard - - - - - In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34 "Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments." This Statement establishes new financial reporting requirements for state and local governments throughout the United States. When implemented, it will require new information and restructure much of the information that governments have presented in the past. Comparability with reports issued in all prior years will be affected. The Government is required to implement this standard for the fiscal year ending December 31, 2002. The Government is determining the full impact that adoption of GASB Statement 34 will have on the financial statements. 43 . -- -- I I I I I I I I I I I Pension Plan Required Supplementary Information II - 44 AUGUSTA, GEORGIA I Defined Benefit Pension Trusts - Required Supplementary Information I December 31, 2001 A. Schedules of funding progress I 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 I 1945 Plan 01/01/91 $ 9,055,522 $ 8,084,072 $ (971,450) 112 % $ 670,286 (145) % 01/01/93 10,044,942 8,595,037 (1,449,905) 117 620,412 (234) I 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) 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) I 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) 01/01/01 12,352,795 12,069,544 (283,251) 102 180,462 ( 157) 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) I 01/01/94 4,262,572 2,813,432 (1,449,140) 152 5,180,438 (28) 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) I 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 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 4,43~,921 72 21,705,175 20 I General Pension Plan 12/31/93 $ - $ 629,859 $ 629,859 - % $ - % I 12/31/94 619,418 619,418 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 I 12/31/01 525,089 525,089 Policemen's Pension Plan 12/31/93 $ - $ 528,904 $ 528,904 - % $ - % - - 12/31/94 437,814 437,814 -- 12/31/95 422,070 422,070 12/31/96 417,725 417,725 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 I 45 I I AUGUST A, GEORGIA I Dermed Benefit Pension Trusts - Required Supplementary Information - Continued December 31,2001 I A. Schedules of funding progress (Continued) I Actuarial (Funded) (F AAL) Accrued Unfunded UAAL as Actuarial Actuarial Liability AAL A%of I Valuation Value of AAL (F AAL) Funded Covered Covered Date Assets Entry Age UAAL Ratio Payroll Payroll I Firemen's Pension Plan 12/31/93 $ - $ 1,475,590 $ 1,475,590 - % $ - % 12/31/94 1,342,821 1,342,821 12/31/95 1,296,843 1,296,843 I 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 I 12/31/99 1,276,044 1,276,044 12/31/00 1,258,550 1,258,550 12/31/01 1,345,133 1,345,133 I City Emolovees' Pension Plan 12/31/93 $ - $ 2,960,183 $ 2,960,183 - % $ - % 12/31/94 2,704,129 2,704,129 I 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 I 12/31/99 2,060,501 2,060,501 12/31/00 1,911,904 1,911,904 12/31/01 1,914,347 1,914,347 I General Retirement Plan (City 1949) 01/01/93 $ 47,314,256 $ 38,551,529 $ (8,762,727) 123 % $ 7,397,577 (119) % 01/01/94 49,875,350 36,456,408 (13,418,942) 137 7,243,580 (185) I 01/01/95 47,710,074 39,699,516 (8,010,558) 120 7,053,091 (114) 01/01/96 56,004,033 41,587,715 (14,416,318) 135 6,345,073 (227) 01/01/97 59,413,476 42,712,240 (16,701,236) 139 5,165,172 (323) 01/01/99 71,138,815 51,388,074 (19,750,741) 138 5,794,554 (341 ) 01/01/00 70,974,830 54,306,953 (16,667,877) 131 5,112,578 (326) 01/01/01 70,721,724 54,824,779 (15,896,945) 129 5,237,225 (304) GMEBS 03/01/94 $ 2,754,918 $ 2,903,208 $ 148,290 95 % $ 10,375,830 1.0 % 03/01/95 3,351,907 3,315,936 (35,971) 101 10,657,439 (.3) 03/01/96 3,731,118 3,568,982 (162,136) 105 9,369,684 (2.0) 03/01/97 4,144,704 5,312,277 1,167,573 78 8,082,062 14.0 03/01/98 4,609,848 5,756,304 1,146,456 80 8,913,934 13.0 03/0 liDO 5,559,655 6,422,501 862,846 86 7,719,739 11.2 03/01/02 6,308,424 6,887,424 579,000 91 6,913,560 8.4 46 AUGUSTA, GEORGIA I Defmed Benefit Pension Trusts - Required Supplementary Information - Continued December 31, 2001 I B. Schedules of employer contributions I Fiscal Annual Required Percentage I Year ContrIbution Contributed 1945 Plan 1993 $ - % 1994 I 1995 1996 1998 I 1999 2000 2001 1977 Plan I 1993 $ - % 1994 1995 I 1996 1997 600,260 100 1998 897,930 100 1999 1,124,928 100 I 2000 940,054 100 2001 979,131 100 General Pension Plan I 1993 $ 127,642 100 % 1994 111,109 100 1995 125,174 100 1996 125,874 100 I 1997 139,861 100 1998 107,338 100 1999 113,807 100 I 2000 102,476 100 2001 89,008 100 Policemen's Pension Plan 1993 $ 85,487 100 % I 1994 80,866 100 1995 69,407 100 1996 69,407 100 I 1997 79,952 100 .1998 63,169 100 1999 53,823 100 I 2000 44,880 100 2001 64,863 100 Firemen's Pension Plan 1993 $ 223,387 100 % I 1994 212,392 100 1995 204,492 100 1996 200,757 100 I 1997 249,706 100 1998 237,914 100 1999 240,623 100 2000 205,435 100 I 2001 214,272 100 47 I I I I I I I I I I I I AUGUST A, GEORGIA Dermed Benefit Pension Trusts - Required Supplementary Information - Continued December 31, 2001 B. Schedules of employer contributions (Continued) Fiscal Year City Emp1ovees' Pension Plan 1993 1994 1995 1996 1997 1998 1999 2000 2001 General Retirement Plan (City 1949) 1993 1994 1995 1996 1997 1998 1999 2000 2001 GMEBS 1993 1994 1995 1996 1997 1998 1999 2000 20DI . . Annual Required Contribution Percentage Contributed $ 442,423 415,480 408,999 369,477 409,881 331,619 348,792 302,169 263,080 100 % 100 100 100 100 100 100 100 100 $ - % $ 216,604 100 % 232,298 100 106,440 100 187,548 100 197,167 100 214,536 100 191,385 100 204,576 100 192,622 10D C. Notes to required supplementary information 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 1945 Plan 1977 Plan 1/1/01 Attained age aggregate Level percentage of payroll Average future working lifetime Market value 1/1/0 I Attained age aggregate Level of percentage of pay Average future working lifetime Market value 8% 5% 5% 5% 8% 5% 5% 5% 48 AUGUSTA, GEORGIA I Dermed Benefit Pension Trusts - Required Supplementary Information - Continued December 31, 2001 C. 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 12131/01 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A Firemen's Pension Plan 12/31/01 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A General Retirement Pension Plan (City 1949) 01/01/01 Aggregate cost method Level percentage of payroll Various periods to comply with state law The sum 0 f 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% 5.5% 4% 4% 49 I I Policemen's Pension Plan I 12/31/01 Actuarial present value of total Projected benefits N/A N/A N/A I I 8% N/A N/A N/A I City Employees' Pension Plan I 12/31/01 Actuarial present value of total Projected benefits N/A N/A N/A I I 8% N/A N/A N/A I I GMEBS i 01/01/01 Projected unit credit Level dollar 30 years open I Roll forward pnor year's actuarial value with contributions, disbursements, and expended return of investments, plus 10% of investment gains (losses) during 10 prior years. - - .... - - - - 8% 5.5% None None I I I I I I I I I I I I I Combining and Individual Fund Financial Statements - . . - 50 I I I I I I I I I I I . - - - - - I - - -- - 51 - I I I Special Revenue Funds I Special Revenue Funds are used to account for the proceeds from specific revenue sources which are legally restricted to expenditures for specified purposes. I 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 Emergencv Teleohone Svstem 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 defined as any non-disposable item over $500 which includes .vehicles, office and compute~ equipment, communications equipment, building renovations and office furniture. I Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriffs Department and Jail. Fire Protection Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire protection services in the unincorporated area only. I Occupational Tax Fund - This fund accounts for the receipt imd 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 County. I Promotiontrourism 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. I 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. - . - Urban Development Action Grant (UDAG) Fund - This fund accounts for loan transactions in relation to urban development action grants. Repayments of initial grant revenue loaned to qualified recipients are restricted to additional financing to qualified applicants. Downtown Development Authority Fund - This fund accounts for funding it receives from the County and from special tax on downtown merchants. State Capital Grants Fund - This fund accounts for receipt and expenditure of the State Capital Grant, which is restricted for capital expenditures only. Law Library Fund - This fund accounts for revenue and expenditures of the Law Library. 5% Crime Victim's Assistance Fund - This fund accounts for the 5% surcharge on certain fines with the proceeds used for a victim's assistance program. 52 I I I I I I I I I I I I I I - . - 53 I I I I I I Supplemental Juvenile Service Fund - This fund accounts for supervisory fees collected on juvenile cases. 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 Wireless Phase - This fund accounts for activities associated with 911 charges for wireless service. I Community Greenspace - 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. I I I I I I I II iii 54 AUGUST A, GEORGIA I Special Revenue Funds I Combining Balance Sheet December 31, 2001 I Urban Emergency I Services Telephone Capital Law Fire Occupational District System Outlay Enforcement Protection Tax ASSETS I Cash and cash equivalents $ 2,117,760 $ $ 3,213,078 $ 417,243 $ 9,670,261 $ 3,037 Receivables (net, where applicable, of allowance for uncollectibles) I Taxes 1,253,325 506,089 299,413 Accounts 10,000 247,200 5,312 7,Q43 65,000 Loans 42,920 Interest 5,627 Intergovemmental 1,273,403 I Restricted assets Sinking fund account Due from other funds 215,255 836,634 107,791 Total assets $ 4,918,290 $ 247,200 $ 4,561,113 $ 424,286 $ 10,142,465 $ 3,037 I LlABll.ITIES AND FUND BALANCES (DEFICITS) I LIABILITIES Accounts and other payables $ 526,982 $ 93,288 $ 16,627 $ 2,231 $ 73,420 $ Accrued interest Due to other funds 546,208 271,195 479,377 375,499 I Accrued salaries and vacation 10,518 51,947 423,160 Deferred revenue 918,434 314,642 135,899 7,283,759 Total liabilities 2,002,142 416,430 810,646 138,130 8,155,838 FUND BALANCES (DEFICITS) I Reserved for encumbrances 877 22,570 247,764 55,574 Unreserved - designated for risk benefit 250,000 I Unreserved - undesignated 2,915,271 (191,800) 3,502,703 286,156 1,681,053 3,037 Total fund balances (deficits) 2,916,148 (169,230) 3,750,467 286,156 1,986,627 3,037 Total liabilities and fund balances $ 4,918,290 $ 247,200 $ 4,561,113 $ 424,286 $ 10,142,465 $ 3,037 I I . . I I See notes to financial statements. I 55 I I I I Urban 5% I Housing and Development Downtown State Victim's Special Promotion! Neighborhood Action Grant Development Capital Law Crime Assessment Tourism Development (UDAG) Authority Grants LIbrary Assistance I $ 92,556 $' 278,523 $ 1,081,569 $ 945,524 $ 94,181 $ $ - $ 570,182 I 383,585 76,239 25,204 548,415 52,057 I 565,026 40,154 181 I $ 516,295 $ 278,523 $ 1,157,808 $ 1,545,996 $ 659,207 $ $ - $ 595,567 I $ 23,450 $ 254,903 $ 5,016 $ - $ $ $ 40 $ 162 166,396 I 552,939 22,310 1,758 13,190 11,502 287,481 97,150 312,689 254,903 115,356 719,335 22,350 11 ,664 I 580 I 203,606 23,620 1,041,872 1,545,996 (60,128) (22,350) 583,903 203,606 23,620 1,042,452 1,545,996 (60,128) (22,350) 583,903 I $ 516,295 $ 278,523 $ 1,157,808 $ 1,545,996 $ 659,207 $ $ - $ 595,567 . 56 AUGUST A, GEORGIA I Special Revenue Funds I Combining Balance Sheet - Continued December 31, 2001 I Weed I Supplemental and Seed Juvenile Building Federal Wireless Community Totals Services Inspection Grant Phase Greenspace 2001 2000 ASSETS Cash and cash equivalents $ 40,456 $ S S 616,803 S 499,510 $ 19,640,683 $ 17,854,080 I Receivables (net, where applicable, of allowance for uncol1ectibles) Taxes 2,442,412 2,333,217 I Accounts 250 436,248 409,589 Loans 591,335 3,867,322 Interest 57,684 57,684 In tergovemmental 100,642 1,374,045 1,392,803 I Restricted assets Sinking fund account 565,026 537,434 Due from other funds 1,200,Dl5 1,507,931 Total assets $ 40,706 S S 100,642 $ 616,803 $ 499,510 $ 26,307,448 $ 27,960,060 I LIABD.ITIES AND FUND BALANCES (DEFICITS) LIABll..ITIF.S I Accounts and other payables $ $ 1,366 $ 1,651 $ 80,797 $ $ 1,079,933 $ 402,537 Accrued interest 166,396 179,140 Due to other funds 349,312 66,772 2,663,612 3,521,716 I Accrued salaries and vacation 16,751 1,830 530,656 438,639 Deferred revenue 9,037,365 9,827,023 Total liabilities 367,429 70,253 80,797 13,477,962 14,369,055 FUND BALANCES (DEFICITS) I Reserved for encumbrances 143 1,091 328,599 503,327 Unreserved - designated for risk benefit 250,000 250,000 Unreserved - undesignated 40,563 (367,429) 29,298 536,006 499,510 12,250,887 12,837,678 I Total fund balances (deficits) 40,706 (367,429) 30,389 536,006 499,510 12,829,486 13,591,005 Total liabilities and fund balances (deficits) $ 40,706 $ $ 100,642 $ 616,803 $ 499,510 $ 26,307,448 $ 27,960,060 I I I I I I 57 I I I I I I. I I I I I I I I - 58 AUGUST A, GEORGIA I Special Revenue Funds I Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) I Year Ended December 31,2001 Urban Emergency I Services Telephone Capital Law Fire Occupational District System Outlay Enforcement Protection Tax REVENUES I Taxes $ 14,380,290 $ $ 2,810,650 $ $ 9,771,304 $ 368 Licenses and permits 1,942,123 Intergovernmental Charges for services 2,455,789 91,166 2,072 Fines and forfeitures I Use of money and property 40,087 1,150 13,863 299,214 33,703 Contributions and donations 166,415 22,450 Other 194 1,033 5,550 562 Total revenues 14,586,986 2,456,822 2,811,800 105,029 10,100,590 1,976,756 I EXPENDITURES Current General govemment 53,124 361,000 36,297 902,237 12,500 I Judicial 16,445 Public safety 2,402,107 22,003 7,481 14,071,819 Public works 4,259,781 13,662 Health and welfare 169 Culture and recreation 15,217 I Housing and development 62,434 1,839 Capital outlay 324,605 976,810 Debt service 220,170 Total expenditures 4,920,114 2,763,107 105,463 7,481 15,951,035 12,500 I Excess of revenues over (under) expenditures 9,666,872 (306,285) 2,706,337 97,548 (5,850,445) 1,964,256 OTHER FINANCING I SOURCES (USES) Capital lease proceeds 324,605 976,810 Operating transfers in 5,586,219 Operating transfers out (8,955,211 ) (2,547,321 ) (1,961,219) I Excess of revenues over (under) expenditures and other financing sources (uses) 1,036,266 (306,285) 159,016 97,548 712,584 3,037 Fund balances (deficits), I beginning of year 1,879,882 537,111 3,591,451 188,608 1,274,043 Residual equity transfer (400,056) I Fund balances (deficits), end of year $ 2,916,148 $ (169,230) $ 3,750,467 $ 286,156 $ 1,986,627 $ 3,037 I I I See notes to financial statements. I 59 I $ 203,606 $ 23,620 $ 1,042,452 $ 1,545,996 $ 60 (60,128) $ $ (22,350) $ 583,903 AUGUST A, GEORGIA I Special Revenue Funds I Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Continued I Year Ended December 31, 2001 Weed I Supplemental and Seed Juvenile Building Federal Wireless Community Totals Service Inspection Grant Phase Greenspace 2001 2000 REVENUES I Taxes $ $ $ $ $ $ 32,446,828 $ 31,161,110 Licenses and permits 701,613 2,643,736 2,532,314 Intergovernmental 313,651 594,699 7,255,356 4,585,132 Charges for services 17,550 200,992 2,767,569 2,852,042 I Fines and forfeitures 374,221 385,566 Use of money and property 1,340 15,754 9,811 518,387 579,530 Contributions and donations 1,321 190,186 250,142 Other 129 421,548 458,438 Total revenues 18,890 701,613 315,101 216,746 604,510 46,617,831 42,804,274 I EXPENDITURES Current General govemment 15,640 1,470,840 291,273 I Judicial 8,705 341,994 228,379 Public safety 224,365 65,156 16,792,931 14,122,828 Public works 5,631,430 7,482,425 Health and welfare 169 104 I Culture and recreation 316,697 325,795 Housing and development 788,043 105,000 11,090,875 9,101,833 Capital outlay 4,551,415 3,354,444 Debt service I ,389,631 2,150,871 I Total expenditures 8,705 788,043 224,365 80,796 105,000 41,585,982 37,057,952 Excess of revenues over (under) expenditures 10,185 (86,430) 90,736 135,950 499,510 5,031,849 5,746,322 OTHER FINANCING . SOURCES (USES) I Capital lease proceeds 1,301,415 917,993 Operating transfers in 6,369,633 7,433,941 Operating transfers out (13,464,416) (9,566,819) - Excess of revenues over (under) expenditures and other financing 10,185 (86,430) 90,736 135,950 499,510 (761,519) 4,531,437 sources (uses) Fund balances (deficits), beginning of year 30,521 (280,999) (60,347) 13,591,005 9,059,568 Residual equity transfer 400,056 - - Fund balances (deficits) , - end of year $ 40,706 $ (367 ,429) $ 30,389 $ 536,006 S 499,510 $ 12,829,486 $ 13,591,005 See notes to financial statements. 61 I AUGUSTA, GEORGIA I Urban Services District Fund Statement of Revenues, Expenditures and I Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 I (With Comparative Totals for the Year Ended December 31, 2000) I Variance Favorable 2000 Budget Actual (Unfavorable ) Actual I REVENUES Taxes $ 13,735,000 $ 14,380,290 $ 645,290 $ 13,764,839 Investment income 13,614 40,087 26,473 9,066 Contributions and donations 166,415 166,415 183,532 I Other 194 194 Total revenues 13,748,614 14,586,986 838,372 13,957,437 I EXPENDITURES General government 48,125 53,124 (4,999) 68,426 Public works 5,231,523 4,259,781 971,742 4,540,340 Housing and development 79,324 62,434 16,890 65,685 I Capital outlay 324,605 (324,605) 67,093 Debt service 1,008,773 220,170 788,603 337,073 Total expenditures 6,367,745 4,920,114 1,447,631 5,078,617 I Excess of revenues over expenditures 7,380,869 9,666,872 2,286,003 8,878,820 I OTHER FINANCING SOURCES (USES) Capital lease proceeds 324,605 324,605 Operating transfers in (out) (7,380,869) (8,955,211) (1,574,342) (7,436,917) Excess of revenues over expenditures and other financing sources $ 1,036,266 $ 1,036,266 1,441,903 Fund balance, beginning of year 1,879,882 437,979 Fund balance, end of year $ 2,916,148 $ 1,879,882 See notes to financial statements. 62 AUGUSTA, GEORGIA Emergency Telephone System Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31,2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Charges for services $ 2,700,000 $ 2,455,789 $ (244,211) $ 2,747,143 Use of money and property 16,996 Other 1,033 1,033 Total revenues 2,700,000 2,456,822 (243,178) 2,764,139 EXPENDITURES General government 620,540 361,000 259,540 123,756 Public safety 2,400,337 2,402,107 (1,770) 1,873,425 Capital outlay 78,267 Total expenditures 3,020,877 2,763,107 257,770 2,075,448 Excess of revenues over (under) expenditures (320,877) (306,285) 14,592 688,691 OTHER FINANCING SOURCES Operating transfers in 320,877 (320,877) Excess of revenues over (under) expenditures. . and other financing sources $ (306,285) $ (306,285) 688,691 Fund balance (deficit), beginning of year 537,111 (151,580) Residual equity transfer (400,056) Fund balance (deficit), end of year $ (169,230) $ 537,111 See notes to financial statements. 63 I I I I I I I I I I I I - . - - I . = iiiii - i . . - . I AUGUSTA, GEORGIA I Capital Outlay Fund Statement of Revenues, Expenditures and I Changes in Fund Balance - Budget(GAAP Basis) and Actual Year Ended December 31, 2001 I (With Comparative Totals for the Year Ended December 31,2000) I Variance Favorable 2000 I Budget Actual (Unfavorable ) Actual REVENUES Taxes $ 2,854,034 $ 2,810,650 $ (43,384) $ 2,817,790 Intergovernmental 85,734 I Charges for services 10,000 (10,000) 8,808 Use of money and property 2,000 1,150 (850) 1,916 Total revenues 2,866,034 2,811,800 (54,234) 2,914,248 I EXPENDITURES General government 685,088 36,297 648,791 773 Judicial 56,571 I 6,445 40,126 I Public safety 254,305 22,003 232,302 993 Public works 81,908 13,662 68,246 10,054 Culture and recreation 22,100 15,217 6,883 23,538 I Housing and development 34,693 1,839 32,854 7,039 Capital outlay 1,654,100 Debt service 23,018 I Total expenditures 1,134,665 105,463 1,029,202 1,719,515 Excess of revenues over expenditures 1,731,369 2,706,337 974,968 1,194,733 I OTHER FINANCING SOURCES (USES) Operating transfers in 1,646,952 (1,646,952) 814,903 Operating transfers out (3,378,321) (2,547,321 ) 831,000 iii Excess of revenues over expenditures and other financing sources (uses) $ 159,016 $ 159,016 2,009,636 Fund balance, beginning of year 3,591,451 1,581,815 Fund balance, end of year $ 3,750,467 $ 3,591,451 See notes to financial statements. 64 I I I I I I I I I I I I AUGUSTA, GEORGIA Law Enforcement Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual - . - . I == - 65 I I I I See notes to financial statements. I AUGUST A, GEORGIA I Fire Protection Fund Statement of Revenues, Expenditures and I Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 I (With Comparative Totals for the Year Ended December 31, 2000) I Variance Favorable 2000 Budget Actual (Unfavorable ) Actual I REVENUES Taxes $ 9,569,178 $ 9,771,304 $ 202,126 $ 9,311,617 Charges for services 2,072 2,072 3,500 I Use of money and property 64,933 299,214 234,281 360,885 Contributions and donations 22,450 22,450 66,610 Other 50,000 5,550 (44,450) 252,148 Total revenues 9,706,561 10, 100,590 394,029 9,994,760 I EXPENDITURES General government 653,516 902,237 (248,721) I Public safety 14,670,317 14,071,819 598,498 14,043,375 Health and welfare 169 (169) 104 Capital outlay 976,810 (976,810) 1,447,404 Total expenditures 15,323,833 15,951,035 (627,202) 15,490,883 . - Excess of revenues under expenditures (5,617,272) (5,850,445) (233,173) (5,496, 123) OTHER FINANCING SOURCES (USES) Capital lease proceeds 976,810 976,810 917,993 Operating transfers in 5,617,272 5,586,219 (31,053) 5,115,000 Operating transfers out (328,902) Excess of revenues over expenditures and other fmancing sources (uses) $ 712,584 $ 712,584 207,968 Fund balance, beginning of year 1,274,043 1,066,075 Fund balance, end of year $ 1,986,627 $ 1,274,043 See notes to financial statements. 66 See notes to financial statements. 67 - I I I I I I I I I I I I I AUGUST A, GEORGIA Special Assessment Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31,2001 (With Comparative Totals for the Year Ended December 31,2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Taxes $ 1,374,818 $ 1,398,477 $ 23,659 $ 1, 161 ,212 Other 22 22 Total revenues 1,374,818 1,398,499 23,681 1,161,212 EXPENDITURES Public works 1,374,818 1,357,987 16,831 1,058,606 Capital outlay 20,102 Total expenditures 1,374,818 1,357,987 16,831 1,078,708 Excess of revenues over expenditures $ ,. 40,512 $ 40,512 82,504 Fund balance, beginning of year 163,094 80,590 Fund balance, end of year $ 203,606 $ 163,094 See notes to financial statements. 68 AUGUSTA, GEORGIA Promotionrrourism Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31, 2000) See notes to financial statements. 69 I I I I I I I I I I I I I I I I I I I See notes to financial statements. 70 AUGUSTA, GEORGIA Urban Development Action Grant Fund (UDAG) Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31,2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Use of money and property $ - $ 76,703 $ 76,703 $ 71,301 Other 150 150 Total revenues 76,853 76,853 71,301 EXPENDITURES Housing and development 450,000 248,067 201,933 135,130 Capital outlay 3,250,000 (3,250,000) Total expenditures 450,000 3,498,067 (3,048,067) 135,130 Excess of revenues under expenditures (450,000) (3,421,214) (2,971,214) (63,829) OTHER FINANCING SOURCES Operating transfers in 450,000 (450,000) Excess of revenues under expenditures and other financing sources .$ (3,421,214) $ (3,421,214) (63,829) Fund balance, beginning of year 4,967,210 5,031,039 Fund balance, end of year $ 1,545,996 $ 4,967,210 See notes to financial statements. 71 I I I I I I I I I I I I I I - iiii - - iiii - = . I I I I I I I I I I I I I AUGUSTA, GEORGIA Downtown Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31, 2000) See notes to financial statements. 72 AUGUSTA, GEORGIA State Capital Grants Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31, 2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual OTHER FINANCING USES Operating transfers out $ - $ ( 665) $ (665) $ Excess of revenues under expenditures and other financing uses $ (665) $ (665) Fund balance, beginning of year 665 665 Fund balance, end of year $ $ 665 See notes to financial statements. 73 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 I I AUGUSTA, GEORGIA Law Library Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31,2001 (With Comparative Totals for the Year Ended December 31,2000) . . See notes to financial statements. 74 AUGUSTA, GEORGIA 5% Crime Victim's Assistance Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31,2001 (With Comparative Totals for the Year Ended December 31, 2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Fines and forfeitures $ 414,500 $ 374,221 $ (40,279) $ 385,566 Use of money and property 23,164 23,164 19,881 Other income 151 151 Total revenues 414,500 397,536 (16,964) 405,447 EXPENDITURES Judicial 414,700 316,844 97,856 215,166 Capital outlay 20,856 Total expenditures 414,700 316,844 97,856 236,022 Excess of revenues over (under) expenditures (200) 80,692 80,892 169,425 OTHER FINANCING SOURCES Operating transfers in 200 (200) Excess of revenues over expenditures and other financing sources $ 80,692 $ 80,692 169,425 Fund balance, beginning of year 503,211 333,786 Fund balance, end of year $ 583,903 $ 503,211 See notes to financial statements. 75 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 AUGUST A, GEORGIA Supplemental Juvenile Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31,2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Charges for services $ 14,000 $ 17,550 $ 3,550 $ 20,550 Use of money and property 1,340 1,340 956 Total revenues 14,000 18,890 4,890 21,506 EXPENDITURES Judicial 14,000 8,705 5,295 804 Capital outlay 2,000 Total expenditures 14,000 8,705 5,295 2,804 Excess of revenues over expenditures $ 10,185 $ 10,185 18,702 Fund balance, beginning of year 30,521 11,819 Fund balance, end of year $ 40,706 $ 30,521 . - - iiii See notes to financial statements. 76 AUGUSTA, GEORGIA Building Inspection Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31, 2000) Variance Favorable 2000 Budget Actual (Unfavorable) Actual REVENUES Licenses and permits $ 839,661 $ 701,613 $ (138,048) $ 747,139 EXPENDITURES General government 13,969 13,969 18,271 Housing and development 825,692 788,043 37,649 763,566 Capital outlay 36 Total expenditures 839,661 788,043 51,618 781,873 Excess of revenues under expenditures $ (86,430) $ (86,430) (34,734) Fund balance (deficit), beginning of year (280,999) (246,265) Fund balance (deficit), end of year $ (367,429) $ (280,999) See notes to financial statements. 77 I I I I I I I I I I I - I - I I I I I I I I I AUGUST A, GEORGIA Weed and Seed Federal Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget (GAAP Basis) and Actual Year Ended December 31,2001 (With Comparative Totals for the Year Ended December 31, 2000) Variance Favorable 2000 Budget Actual (Unfavorable ) Actual REVENUES Intergovernmental $ 185,170 $ 313,651 $ 128,481 $ Use of money and property 1,321 1,321 613 Other 129 . 129 Total revenues 185,170 315,101 129,931 613 EXPENDITURES Public safety 185,170 224,365 (39,195) 63,032 Capital outlay 36,527 Total expenditures 185,170 224,365 (39,195) 99,559 Excess of revenues over (under) expenditures $ 90,736 $ 90,736 (98,946) Fund balance (deficit), beginning of year (60,347) 38,599 Fund balance (deficit), end of year $ 30,389 $ (60,347) See notes to financial statements. 78 Excess of revenues over expenditures Variance Favorable Budget Actual (Unfavorable ) $ - $ 200,992 $ 200,992 15,754 15,754 216,746 216,746 15,640 (15,640) 65,156 ( 65,156) 80,796 (80,796) $ 135,950 $ 135,950 I I I I I I I I I I AUGUSTA, GEORGIA Wireless Phase Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 REVENUES Charges for services Use of money and property Total revenues EXPENDITURES General government Public safety Total expenditures Fund balance, beginning of year Residual equity transfer 400,056 Fund balance, end of year $ 536,006 - - - - See notes to financial statements. 79 -- - I I I I I I I I I I I I I AUGUSTA, GEORGIA Community Greenspace Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 Excess of revenues over expenditures Variance Favorable Budget Actual (Unfavorable ) $ - $ 594,699 $ 594,699 9,811 9,811 604,510 604,510 105,000 (105,000) $ 499,510 $ 499,510 REVENUES Intergovernmental Use of money and property Total revenues EXPENDITURES Housing and development.. . Fund balance, beginning of year Fund balance, end of year $ 499,510 - . - - - . . See notes to financial statements. 80 81 I I I I I I I I I I I I I I I I I I I I I I I Debt Service Funds I The Debt Service Funds are used to account for resources that will be used to service general long-term debt that is recorded in the General Long-Term Debt Account Group. In general, Debt Service Funds are established only if legally required or when resources are being accumulated to meet principal and interest payments that will be made in future periods. I Debt Service Fund - This fund accounts for general obligation bonds and notes payable and any other debts not recorded in the Enterprise Funds. I Urban Debt Service Fund - This fund accounts for general obligation bonds related to the former City of Augusta. I I I I I . . 82 ASSETS Cash and cash equivalents Receivables (net of allowances for uncollectibles) Taxes Accounts receivable Prepaid expenses Certificates of participation investments Acquisition/construction account Reserve account Due from other funds Total assets LIABll..ITIES AND FUND BALANCES LIABll..ITIES Deferred revenues FUND BALANCES Reserved for inventory/prepaid expenses Reserved for debt service Total fund balances Total liabilities and fund balances See notes to financial statements. AUGUSTA, GEORGIA I I I I I I I I I I I I I I Debt Service Funds Combining Balance Sheet December 31,2001 Urban Debt Debt Totals Service Service 2001 2000 $ 419,488 $ 821,686 $ 1,241,174 $ 1,019,348 175,115 151,178 326,293 314,654 1,526 1,526 645 1,029,600 1,029,600 965,200 157,645 157,645 151,861 1,392,055 1,392,055 1,341,051 32,190 21,863 54,053 121,482 $ 3,207,619 $ 994,727 $ 4,202,346 $ 3,914,241 $ 115,005 $ 96,921 $ 211,926 $ 168,252 1,029,600 1,029,600 965,200 2,063,014 897,806 2,960,820 2,780,789 3,092,614 897,806 3,990,420 3,745,989 $ 3,207,619 $ 994,727 $ 4,202,346 $ 3,914,241 83 I I I I I I I I I I I I I I I I . - - - See notes to financial statements. AUGUST A, GEORGIA Debt Service Funds 84 AUGUSTA, GEORGIA Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31,2001 (With Comparative Totals for the Year Ended December 31, 2000) See notes to financial statements. 85 I I I I I I I I I I I I . - - . I - - 'iiiii i . . I I I I I I I I I I AUGUSTA, GEORGIA Urban Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual Year Ended December 31, 2001 (With Comparative Totals for the Year Ended December 31,2000) - - . Variance Favorable 2000 Budget Actual (Unfavorable) Actual REVENUES Taxes $ 370,750 $ 611,975 $ 241,225 $ 630,271 Use of money and property 10,000 25,562 15,562 19,265 Total revenues 380,750 .637,537 256,787 649,536 EXPENDITURES Debt service 380,750 378,901 1,849 396,625 Excess of revenues over expenditures $ 258,636 $ 258,636 252,911 Fund balance, beginning of year 639,170 386,259 Fund balance, end of year $ 897,806 $ 639,170 See notes to financial statements. 86 I I I I I I I I I I - . . - - 87 I I I Capital Projects Funds I The acquisition or construction of capital projects, other than those financed by Enterprise Funds, Internal Service Funds, or Trust Funds, may be accounted for in a Capital Projects Fund. Usually a Capital Projects Fund is used to account for major capital expenditures, such as the construction of civic centers, hbraries, and general administrative service buildings. The acquisition of other capital assets, such as machinery, furniture, and vehicles, is usually accounted for in the fund that is responsible for the financing of the expenditure. I I Community Development Fund - This fund accounts for the financing and construction of various community development projects. Financing is provided by grants received from the u.s. Department ofHUD. I Special Sales Tax Fund - This fund accounts for financing and construction of various road improvement projects. Financing is provided by receipts from a 1987 special one percent local option sales tax referendum. I 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. I Special Sales Tax Phase ill Fund - This fund was established to. account for expenditures specifically budgeted from revenues from the one cent sales tax (Phase III) collected from the years 1996 - 2000 to be used primarily for public works, recreation and outside agency projects. I 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. I I I - 88 89 I I I Community Special I Development Sales Tax $ 244,833 $ 4,148,531 I 51,958 I $ 244,833 $ 4,200,489 I $ $ 15 I 15 I 224,110 I 3,976,364 244,833 I 244,833 4,200,474 $ 244,833 $ 4,200,489 I I I I I I I I AUGUSTA, GEORGIA Capital Projects Funds Combining Balance Sheet December 31, 2001 ASSETS Cash and investments Receivables: Accounts Interest Prepaid items Due from other funds Total assets LIABILITIES AND FUND BALANCES LIABILITIES Accounts and other payables Accrued salaries and vacation Due to other funds Total liabilities FUND BALANCES Reserved for encumbrances Reserved for special sales tax projects Reserved for inventory/prepaid expenses Unreserved - designated for capital improvements Total fund balances Total liabilities and fund balances See notes to financial statements. - . I . . 90 AUGUSTA, GEORGIA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 Community Special Development Sales Tax REVENUES Taxes $ $ Use of money and property 219,853 Intergovernmental- Cost reimbursements from State 4,400 Other Total revenues 224,253 EXPENDITURES Current: General government Public safety Public works 2,460 Health & welfare Culture/recreation Capital outlay 173,837 Total expenditures 176,297 Excess of revenues over (under) expenditures 47,956 OTHER FINANCING SOURCES (USES) Operating transfers in (out) (12,917) Excess of revenues over (under) expenditures and other financing uses 35,039 Fund balances, beginning of year 244,833 4,165,435 Fund balances, end of year $. 244,833 $ 4,200,474 See notes to financial statements. 91 I I I I I I I I I I I I I I I I I I I I I I I Special Special Special Sales Tax Sales Tax Sales Tax Totals I Phase IT Phase III PhaseN 2001 2000 $ - $ 2,974,320 $ 28,088,683 $ 31,063,003 $ 30,760,815 770,039 2,188,423 268,915 3,447,230 4,440,523 I 25,504 568,192 598,096 1,517,581 58,361 839 59,200 725 795,543 5,789,296 28,358,437 35,167,529 36,719,644 I I 129,700 583,500 713,200 708,943 915,364 915,364 115,755 2,057,337 831,290 3,006,842 3,137,896 128,550 128,550 I 308,986 492,528 801,514 392,955 580,912 7,025,764 1,878,962 9,659,475 11,135,830 696,667 9,521,787 4,830,194 15,224,945 15,375,624 I 98,876 (3,732,491) 23,528,243 19,942,584 21,344,020 I (2,305,883) 2,318,800 "(705,822) (705,822) (3,209,471) (2,207,007) (1,413,691) 22,822,421 19,236,762 18,134,549 I 16,886,870 60,111,571 81,408,709 63,274,160 $ 14,679,863 $ 58,697 ,880 $ 22,822,421 $ 100,645,471 $ 81,408,709 I I - . I 92 93 I I I I I I I I I I I I I I I I I I I I I I I Enterprise Funds I Enterprise Funds are generally established if the intent of the governing body is that the cost of providing goods or services is :fInanced or recovered primarily through user charges or if the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, accountability, or other purposes. I Waste Management Fund - This fund accounts for the provision 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. I Water and Sewer Fund - This fund accounts for the provision of water and sewer services to residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, fmancing and related debt service and billing and collection. I Augusta Regional Airoort 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. I Municipal Golf Course Fund - This fund accounts for the operation of the Municipal Golf Course, an IS-hole golf course located within the city limits. I Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus service within Richmond and Columbia counties. I Daniel Field Airoort Fund - This fund accounts for revenue and expenses related to Daniel Field Airport. Old Government House Fund - This fund accounts for the operations of the Old Government House, a historic building within the city limits. The house is available for short-term rentals. 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. 94 AUGUST A, GEORGIA I Enterprise Funds I Combining Balance Sheet December 31, 2001 I ASSETS I Augusta I Regional. Municipal Waste Water Airport at Golf ASSETS Management and Sewer Bush Field Course Current assets I Cash and temporary investments $ 5,865,659 $ 23,425,135 $ 11,561,408 $ 194 Investments 1,462,896 Receivables (net of allowances for uncollectibles) I Accounts 372,142 4,105,416 1,448,322 Interest 5,897 Intergovernmental 783,305 Inventory 1,227,223 118,796 10,726 I Due from other funds (current portion) 82,485 39,047 479,167 Total current assets 6,320,286 30,265,614 14,390,998 10,920 RESTRICTED ASSETS I Revenue bond cash and cash equivalents Construction account 92,282,790 178,497 Current debt service account 37 I Sinking Fund 2,506,826 167,864 6,525 Total restricted assets 94,789,653 167,864 185,022 PROPERTY, PLANT AND EQUIPMENT I (net of accumulated depreciation) 5,077,651 195,135,873 24,169,918 1,562,207 - OTHER ASSETS - - Deferred bond issuance costs 2,411,160 28,417 Revenue bond discount 3,874,948 Long-term portion - due from other funds iiiii - Total other assets 6,286,108 28,417 - Total assets $ 11,397,937 $ 326,477,248 $ 38,728,780 $ 1,786,566 . . - - - 95 - - Continued on following page. 96 AUGUSTA, GEORGIA I Enterprise Funds I Combining Balance Sheet - Concluded December 31, 2001 I LIABILITIES AND FUND EQUITY I Augusta I Regional Municipal Waste Water Airport at Golf Management and Sewer Bush Field Course I LIABILITIES AND FUND EQUITY Current liabilities Accounts and other payables $ 141,379 $ 3,286,994 $ 1,439,878 $ 9,619 Accrued interest 2,216,261 I Due to other funds 5,808,692 2,533,456 523,685 Accrued salaries and vacation 42,477 468,585 166,705 18,962 Deferred revenue I Capital leases payable - current 488,785 Notes payable - current 1,200,807 Total current liabilities 183,856 13,470,124 4,140,039 552,266 I Current liabilities (payable from restricted assets) Accrued revenue bond interest 2,207 Revenue bonds payable - current 1,235,000 85,000 I Customer deposits 64,120 Total current liabilities (payable from restricted assets) 64,120 1,235,000 87,207 I LONG- TERM LIABiliTIES Revenue bonds payable 160,329,382 Capital leases 488,785 I Notes payable 17 ,687,888 Certificates ofParticipation 711,207 Closure/postclosure accrual 10,121,740 I Total long-term liabilities 10,121,740 178,506,055 711 ,207 Total liabilities 10,369,716 193,211,179 4,227,246 1,263,473 I FUND EQUITY Contributed capital 1,741,644 41,896,588 10,980,252 Retained earnings (defIcits) ~ Reserved for revenue bond debt 390,234 Umeserved (713,423) 90,979,247 23,521,282 523,093 Total retained earnings (deficits) (713,423) 91,369,481 23,521,282 523,093 I Total fund equity 1,028,221 133,266,069 34,501,534 523,093 Total liabilities and fund equity $ 11,397,937 $ 326,477,248 $ 38,728,780 $ 1,786,566 I See notes to fInancial statements. I 97 I 98 AUGUSTA, GEORGIA I Enterprise Funds I Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits) I Year Ended December 31, 2001 Augusta I Regional Municipal Waste Water Airport at Golf I Management and Sewer Bush Field Course OPERATING REVENUES Charges and fees $ 4,005,239 $ 38,339,666 $ 5,699,490 $ 716,650 I OPERATING EXPENSES Personal services and employee benefits 761,034 6,591,639 2,927,966 281,010 I Purchased! contracted services 980,106 6,650,852 1,093,763 51,097 Supplies 105,339 3,424,008 104,275 193,859 Repairs and maintenance 261,801 2,268 Interfund!interdepartmental charges 452,511 2,888,511 22,300 I Depreciation and amortization 1,009,054 9,735,642 1,183,701 79,122 Other costs 89,652 2,167.267 1,060,643 49,501 Closure/postclosure accrual 2,021,740 I Total operating expenses 5,419,436 31,719,720 6,370,348 679,157 Operating income (loss) (1,414,197) 6,619,946 (670,858) 37,493 NONOPERATING REVENUES (EXPENSES) I Interest revenue 181,411 6,731,515 562,130 9,084 Other revenue (expense) 480 (706,184) 3,198 Interest expense (9,811,415) (6,322) (104,153) I Intergovernmental revenue 1,897,978 Net nonoperating revenues (expenses) 181,891 (3,079,900) 1,747,602 (91,871) Income (loss) before operating transfers (1,232,306) 3,540,046 1,076,744 (54,378) I Operating transfers in 705,822 Operating transfers out (44,000) - - Net income (loss) (1,232,306) 3,540,046 1,032,744 651,444 . Retained earnings (deficits), beginning of year 518,883 87,829,435 22,488,537 (128,350) I Retained earnings (deficits), end of year $ (713,423) $ 91,369,481 $ 23,521,281 $ 523,094 iii - iiiii - - - - . I See notes to financial statements I 99 I I I I I I Old Newman Daniel Field Government Tennis Garbage Totals Transit Airport House Center Collection 2001 2000 I $ 718,259 $ 79,070 $ 45,896 $ 193,897 $ 1,378,750 $ 51,176,917 $ 51,025,303 I 2,335,283 44,632 38,891 99,335 13,079,790 10,865,589 243,847 15,264 21,569 96,644 2,143,339 11,296,481 7,710,645 344,580 6,174 12,598 74,010 4,264,843 7,351,237 I 8,428 30 272,527 348,942 229,713 6,900 10,700 6,243 3,616,878 4,097,332 635,961 32,488 23,961 12,699,929 9,664,068 I 2,258 3,369,321 2,382,700 2,021,740 1,582,536 3,800,070 105,488 107,719 276,232 2,143,339 50,621,509 44,003,049 (3,081,811) (26,418) (61,823) (82,335) (764,589) 555,408 7,022,254 I 15,373 7,499,513 3,400,001 I 16,334 744 215 (685,213) 163,443 (49,583) (983) (4,488) (901) (9,977,845) ( 6,346,266) 1,989,133 20,344 3,907,455 2,446,852 1,955,884 16,117 (983) 16,071 (901) 743,910 (335,970) I (1,125,927) (10,301) (62,806) (66,264) (765,490) 1,299,318 6,686,284 - 1,432,904 44,000 55,900 14,626 1,100,000 3,353,252 4,697,901 . (44,000) (50,000) = - 306,977 33,699 ( 6,906) (51,638) 334,510 4,608,570 11,334,185 (6,183,478) 738,031 101,414 (111,862) 105,252,610 93,918,425 $ (5,876,501) $ 771,730 $ 94,508 $ (163,500) $ 334,510 $ 109,861,180 $ 105,252,610 100 AUGUSTA, GEORGIA I Enterprise Funds I Combining Statement of Cash Flows Year Ended December 31,2001 I Augusta Regional Municipal I Waste Water and Airport at Golf Management Sewer Bush Field Course Cash flows from operating activities Operating income (loss) $ (1,414,197) $ 6,619,946 $ (670,858) $ 37,493 I Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 1,009,054 9,735,642 1,183,701 79,122 I Net change in assets and liabilities: Accounts receivable (70,187) (319,576) (335,791) Intergovernmental receivable (687,422) Other receivable I Inventory 98,826 61,554 (3,601) Due from other funds (14,055) 2,992,963 452,229 Accounts payable 30,406 2,621,667 1,240,389 3,026 I Accrued salaries and vacation 19,216 297,302 98,239 13,265 Accrued revenue bond interest (1,265) Due to other funds (7,803,708) 712,304 121,191 Customer deposits 3,199 I Deferred revenue Closure/postc1osure accrual 2,021,740 Net cash provided (used) by operating I activities 1,585,176 14,243,062 2,053,080 250,496 Cash flows from noncapital financing activities I Other revenue (expense) 480 (706,184) 3,198 Intergovernmental revenue 1,897,978 Operating transfers (net) (44,000) 705,822 Net cash provided by noncapital financing I activities 480 1,147,794 709,020 Cash flows from capital and related financing activities I Acquisition and construction of capital assets (215,905) (25,925,273) (1,968,837) (61,819) Principal paid on revenue bonds (1,190,000) (85,000) Principal paid on notes payable (1,632,226) Principal paid on certificates of participation (793,672) I Bond issuance costs Interest on bond funds 6,370,931 Proceeds from long-term debt 1,466,356 I Interest paid (9,905,542) (6,322) (104,153) Net cash provided (used) by capital and related financing activities (215,905) (30,815,754) (2,060,159) (959,644) Cash flows from investing activities I Interest received 181,411 387,898 595,858 9,083 Due from other funds - long-term I Purchase of investments (109,983) Net cash provided by investing activities 181,411 277,915 595,858 9,083 Net increase (decrease) in cash and cash equivalents 1,551,162 (16,294,777) 1,736,573 8,955 I Cash and cash equivalents, beginning of year 4,314,497 134,509,565 9,992,699 176,261 Cash and cash equivalents, end of year $ 5,865,659 $ 118,214,788 $ 11,729,272 $ 185,216 See notes to financial statements. 101 I I I I I I I I I I I I I I I . I . ii - . 103 I I I I I Internal Service Funds I Internal service funds are used to account for goods or services provided by a central service department or agency to other departments, agencies, or component units of the governmental unit, or to other unrelated governmental units, usually on a cost reimbursement basis. I Risk Management Fund - This fund accounts for the receipt and disbursement of settlement exposure and damage expense claims, commercial insurance premiums and bond on certain employees and elected officials. I Fleet Operations Fund - This fund accounts for the operation and maintenance of County vehicles. The Fund bills other County funds at amounts that will approximately recover all the cost of the services provided. I Workers' Compensation Fund - This fund accounts for the receipt and disbursement of self-insured workers' compensation claims. I Emolovee Health Benefits Fund - This fund accounts for the receipt and disbursement of self-insured employee group health insurance claims. Unemployment Fund - This fund accounts for the receipt and disbursement of unemployment benefits. I Long-term Disability Insurance Fund - This fund accounts for the receipt and disbursement of long-term disability claims. I GMA Leases Fund - This fund accounts for the receipt and disbursement of the lease pool agreement with the Georgia Municipal Association. I I I - - - . . 104 AUGUSTA, GEORGIA Internal Service Funds Combining Balance Sheet December 31, 2001 ASSETS Risk Fleet Workers Management Operations Compensation CURRENT ASSETS Cash and cash equivalents $ $ 579,410 $ 44,967 Accounts receivable 430 8 Due from other funds 887,673 Total current assets 888,103 579,418 44,967 Restricted investments PROPERTY, PLANT AND EQUIPMENT (net of accumulated depreciation) 69,497 8,856 ToW assets $ 957,600 $ 588,274 $ 44,967 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and other payables $ 23,388 $ 614,805 $ 69,121 Due to other funds 341,093 Accrued salaries and vacation 15,211 9,076 Total current liabilities 379,692 623,881 69,121 NONCURRENT LIABILITIES Certificates of participation FUND EQUITY Retained earnings (deficits) 577 ,908 (35,607) (24,154) Total liabilities and fund equity $ 957,600 $ 588,274 $ 44,967 See notes to financial statements. 105 I I I I I I I I I I I I I I I I I I I I I I I Long-term I Employee Disability GMA Totals Health Benefits Unemployment Insurance Leases 2001 2000 I $ 183,689 $ 66,377 $ 16,035 $ - $ 890,478 $ 2,818,257 268, 105 6,673,641 6,942,184 6,160,151 143,701 1,031,374 2,849,456 595,495 66,377 16,035 6,673,641 8,864,036 11,827,864 I 9,835,822 9,835,822 11,355,863 I 78,353 154,725 $ 595,495 $ 66,377 $ 16,035 $ 16,509,463 $ 18,778,211 $ 23,338,452 I I $ 600,000 $ $ 16,069 $ 65,335 $ 1,388,718 $ 1,956,728 66,259 781,254 1,188,606 4,976,532 I 24,287 11 , 1 07 600,000 66,259 16,069 846,589 2,601,611 6,944,367 I 15,899,863 15,899,863 15,854,947 - (4,505) 118 (34) (236,989) 276,737 539,138 $ 595,495 $ 66,377 $ 16,035 $ 16,509,463 $ 18,778,211 $ 23,338,452 106 AUGUSTA, GEORGIA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits) Year Ended December 31,2001 Risk Fleet Workers Management Operations Compensation OPERATING REVENUES Interfund charges $ 1,399,977 $ 3,662,313 $ Fines, forfeitures and fees 46,359 Total operating revenues 1,446,336 3,662,313 OPERATING EXPENSES Personal services 308,022 93,354 Purchased and contracted services 362,170 3,375,191 Materials and supplies 20,188 105,842 Insurance 962,742 Other 79,534 Depreciation 53,221 32,474 Repairs and maintenance 516 132,785 Risk benefit charges 839,549 Total operating expenses . 1,583,666 3,819,180 962,742 Operating income (loss) (137,330) (156,867) (962,742) NONOPERATING REVENUES (EXPENSES) Interest revenue 22,879 139,430 377 Other revenue 115,745 296 Interest expense Sale of property 23,382 Income (loss) before operating transfers 1,294 6,241 (962,365) Operating transfers in 962,375 Operating transfers out Net income (loss) 1,294 6,241 10 Retained earnings (deficits), beginning of year .576,614 (41,848) (24,164) Retained earnings (deficits), end of year $ 577 ,908 $ (35,607) $ (24,154) I I I I I I I I I I I I I I - - - 107 I I I I See notes to financial statements. I I I I Long-term Employee Disability GMA Totals I Health Benefits Unemployment Insurance Leases 2001 2000 $ 13,091,121 $ $ 188,061 $ - $ 18,341,472 $ 17,669,438 I 46,359 38,204 13,091,121 188,061 18,387,831 17,707,642 I 401,376 362,375 53,614 3,790,975 3,563,142 126,030 212,702 I 11,834,145 125,090 204,400 13,126,377 11,357,053 79,534 447,610 85,695 81,657 I 133,301 839,549 635,604 11,887,759 125,090 204,400 18,582,837 16,660,143 I 1,203,362 (125,090) (16,339) (195,006) 1,047,499 I (109,811) 2,279 (525) 415,205 469,834 878,032 116,041 44,692 (676,652) (676,652) (954,371) 23,382 I 1,093,551 (122,811) (16,864) (261,447) (262,401) 1,015,852 122,929 16,830 1,102,134 200,000 (1,102,134) (1,102,134) (777,103) (8,583) 118 (34) (261,447) (262,401) 438,749 4,078 24,458 539,138 100,389 $ (4,505) $ 118 $ (34) $ (236,989) $ 276,737 $ 539,138 108 AUGUSTA, GEORGIA I Internal Service Funds I Combining Statement of Cash Flows Year Ended December 31, 2001 I Other I Internal Risk Fleet Service Totals Management Operations Funds 2001 2000 .Cash flows from operating activities I Operating income (loss) $ (137,330) $ (156,867) $ 99,191 $ (195,006) $ 1,047,499 Adjustments to reconcile operating loss to net cash provided (used) I by operating activities: Sale of property 23,382 23,382 Depreciation 53,221 32,474 85,695 81,657 Net change in assets and liabilities: I Accounts receivable 547 (782,580) (782,033) (1,100,974) Accounts payable 15,158 (666,076) 82,908 (568,010) 549,012 Accrued salaries and vacation 6,558 6,622 13,180 (13,600) I Due to/from other funds, net (546,333) (1,025,440) (398,071 ) (1,969,844) 565,618 Net cash provided (used) by operating activities (608,726) (1,785,358) (998,552) (3,392,636) 1,129,212 I Cash flows from noncapital financing activities Other revenue 115,745 296 116,041 44,692 I Operating transfers (net) (577,103) Net cash provided (used) by operating non capital financing I activities 115,745 296 116,041 ( 532,411) Cash flows from capital and related fmancing activities I Acquisition of capital assets (9,323) (9,323) (39,470) Interest paid (676,652) (676,652) (954,371) Net cash used by capital and I related financing activities (9,323) (676,652) (685,975) (993,841) Cash flows from investing activities Interest received 22,879 139,430 307,525 469,834 878,032 I Sale of certificates of participation 44,916 44,916 Net cash provided by investing activities 22,879 139,430 352,441 514,750 878,032 I Net increase (decrease) in cash and cash equivalents (470,102) (1,654,955) (1,322,763) (3,447,820) 480,992 Cash and cash equivalents, I beginning of year 470,102 2,234,365 11,469,653 14,174,120 13,693,128 Cash and casb equivalents, I end of year $ - $ 579,410 $ 10,146,890 $ 10,726,300 $ 14,174,120 See notes to financial statements. I 109 I I I Trust and Agency Funds I Fiduciary funds are used to account for assets when a governmental unit is functioning either as a trustee or as an agent for another party. Because the County is functioning in a fiduciary capacity, the authority to employ, dispose of, or otherwise use the assets is not determined by a legislative body or oversight board, but by the public laws and private agreements that created the trustee or agency relationship. I Agency Funds - An agency fund is created to act as custodian for other funds, governmental units, or private entities. Assets are recorded by the agency fund, held for a period of time as determined by legal contract or circumstances, and then returned to their owners. The Government utilizes agency funds to account for the following: I Tax Commissioner - This fund accounts for tax billings, collections and remittances made by the Tax Commissioner on behalf of the County and other governmental agencies. Probate Judge - This fund accounts for the receipt and disbursement oflicenses and other fees collected by the Probate Judge. I Sheriff's Department - This fund accounts for the receipt and disbursement of funds collected by the department from individuals posting bond. I Civil Court - This fund accounts for the receipt and disbursement of court-ordered fines, fees and garnishments made on behalf of third parties. I Clerk of Court - This fund accounts for the receipt and disbursement of court-ordered fines and fees made on behalf of third parties and traffic violation fines. I Expendable Trust Funds - Those trust funds whose principal and income may be expended in the course of their designated operations so that they are depleted by the end of their designated life. An expendable trust fund is accounted for in the same manner as governmental funds. . I Joseph R. Lamar Fund - This fund accounts for the receipt of investment earnings from the Joseph R. Lamar Principal Fund and payment of the annual award. I Pemetual Care Fund - This fund accounts for monies collected from sale of perpetual care contracts at Government-owned cemeteries after October I, 1970, as well as receipt of investment earnings on all perpetual care investments and payment of cemetery maintenance expenditures. Nonexpendable Trust Funds - Trust funds that allow the earnings to be used to achieve the objectives of the fund, but require that the principal be preserved intact. A nonexpendable trust fund is accounted for in essentially the same manner as a proprietary fund. Joseph R. Lamar Fund - This fund accounts for monies provided by a private donor to finance awards for children attending Joseph R. Lamar School. The principal amount of the gift is to be maintained intact and invested. Investment earnings are used for the awards. Perpetual Care Fund - This fund accounts for monies collected from the sale of perpetual care contracts at Government-owned cemeteries before October 1, 1970. The principal must be maintained intact and invested. Investment earnings are used for cemetery maintenance. Pension Trust Funds - Pension trust funds account for the assets ofthe Government's employees' retirement plans. 1945 Pension Trust Fund - This fund accounts for the accumulation of resources to be used for retirement annuity payments to participants of the 1945 Plan at appropriate amounts and times in the future. Resources are contributed by the Government at amounts determined using actuarial assumptions and calculations. Resources contributed by employees are based on a percentage ofan individual's gross salary. 1977 Pension Trust Fund - This fund accounts for the accumulation of resources to be used for retirement annuity payments to participants of the 1977 Plan at appropriate amounts and times in the future. Resources are contributed by the Government at amounts determined using actuarial assumptions and calculations. Resources contributed by employees are based on a percentage ofan individual's gross salary. General Retirement Fund - This fund accounts for contributions to the Government's pension plan that are to be used for retirement payments at appropriate amounts and times in the future. 110 AUGUSTA, GEORGIA I Trust and Agency Funds I Combining Balance Sheet December 31, 2001 I Agency Funds I Tax Civil Clerk of Commissioner Probate Sheriff Court Court ASSETS Cash and cash equivalents $ 4,550,929 $ 16,407 $ 1,311 ,209 $ 415,612 $ 2,231,611 I Investments Receivables: Taxes 29,555,482 Interest I Restricted investments: Perpetual care Real estate Due from other funds I Total assets $ 34,106,411 $ 16,407 $ 1,311,209 $ 415,612 $ 2,231,611 LIABn.ITIES AND FUND BALANCES I (DEFICITS) LIABn.ITlES Accounts payable $ $ $ $ $ Due to others 3,186,392 4,314 1 ,311 ,209 353,607 1,698,270 I Due to other funds 1,364,537 12,093 62,005 533,341 Uncollected taxes 29,555,482 Total liabilities 34,106,411 16,407 1 ,311 ,209 415,612 2,231,611 FUND BALANCES (DEFICITS) I Reserved for special purposes Reserved for employees' retirement benefits Total fund balances (deficits) I Totalliabilltles and fund balances $ 34,106,411 $ 16,407 $ 1,311,209 $ 415,612 $ 2,231,611 I - - I - See notes to financial statements. 111 - I I I I Expendable Trust Funds Nonexpendable Trust Funds Pension Trust Funds Totals Joseph R. Perpetual Joseph R. Perpetual 1945 1977 General Lamar Care Lamar Care Plan Plan Retirement 2001 2000 I $ - $ 463,715 $ 207 $ - $ 663 ;470 $ 1,305,672 S 1,493,323 $ 12,452,155 $ 18,742,283 204,270 10,502,685 12,242,912 64,500,331 87,450,198 90,357,122 I 29,555,482 22,436,451 2,770 86,812 104,739 578,999 773,320 836,839 5,000 338,625 343,625 343,625 I 1,267,600 1,267,600 1,267,600 300,000 300,000 400,000 $ $ 670,755 $ 5,207 $ 338,625 $ 11,552,967 $ 13,653,323 $ 67,840,253 $ 132,142,380 $ 134,383,920 I I $ - $ 7,452 $ - $ - $ - $ - $ 945 $ 8,397 $ 47,618 6,553,792 9,304,258 280 59,116 224,008 2,255,380 4,763,476 29,555,482 22,436,451 I 280 7,452 59,116 224,953 38,373,051 36,551,803 (280) 663,303 5,207 279,509 947,739 933,420 - 11,552,967 13,653,323 67,615,300 92,821,590 96,898,697 (280) 663,303 5,207 279,509 II ,552,967 13,653,323 67,615,300 93,769,329 97,832,117 $ - $ 670,755 $ 5,207 $ 338,625 $ 11,552,967 $ 13,653,323 $ 67,840,253 $ 132,142,380 $ 134,383,920 112 AUGUST A, GEORGIA I Agency Funds I Combining Statement of Changes in Assets and Liabilities Year Ended December 31,2001 I December 31, December 31, I 2000 Additions Deductions 2001 Tax Commissioner ASSETS I Cash $ 8,274,905 $ 112,626,388 $ 116,350,364 $ 4,550,929 Taxes receivable 22,436,451 119,745,419 112,626,388 29,555,482 I Total assets $ 30,711,356 $ 232,371,807 $ 228,976,752 $ 34,106,411 LIABILITIES I Due to others $ 5,541,937 $ 75,082,707 $ 77,438,252 $ 3,186,392 Due to other funds 2,732,968 37,543,681 38,912,112 1,364,537 I Uncollected taxes 22,436,451 119,745,419 112,626,388 29,555,482 Total liabilities $ 30,7.11,356 $ 232,371,807 $ 228,976,752 $ 34,106,411 I Probate ASSETS Cash $ 16,292 $ 229,233 $ 229,118 $ 16,407 I LIABILITIES - - Due to others $ 4,693 $ 24,140 $ 24,519 $ 4,314 - Due to other funds 11,599 205,093 204,599 12,093 Total liabilities $ 16,292 $ 229,233 $ 229,118 $ 16,407 IiIiiiI Sheriff ASSETS Cash $ 942,925 $ 3,208,182 $ 2,839,898 $ 1,311,209 - LIABILITIES Due to others $ 942,925 $ 3,208,182 $ 2,839,898 $ 1,311,209 = - iiiii - - See notes to financial statements. 113 . See notes to financial statements. 114 AUGUSTA, GEORGIA I Expendable Trust Funds Combining Statement of Revenues, Expenditures and I Changes in Fund Balances (Deficit) Year Ended December 31, 2001 I Joseph R. Perpetual Totals I Lamar Care 2001 2000 REVENUES Interest $ 306 $ 44,841 $ 45,147 $ 67,038 I Charges for services 2,389 2,389 1,077 Total revenues 306 47,230 47,536 68,115 EXPENDITURES I Culture and recreation 31,169 31 ,169 38,640 Other 175 175 175 Total expenditures 175 31,169 31,344 38,815 I Excess of revenues over expenditures 131 16,061 16,192 29,300 OTHER FINANCING SOURCES I Operating transfers in 175 15,000 15,175 20,000 Excess of revenues over expenditures I and other financing sources 306 31,061 31,367 49,300 Fund balances (deficit), beginning of year (586) 632,242 631,656 582,356 - Fund balances (deficit), end of year $ (280) $ 663,303 $ 663,023 $ 631,656 See notes to financial statements. 115 I I I I I I I I I I I AUGUST A, GEORGIA Nonexpendable Trust Funds Combining Statement of Revenues, Expenses and Changes in Fund Balances II See notes to financial statements. 116 I I I I I I I I I I I I AUGUSTA, GEORGIA Nonexpendable Trust Funds Combining Statement of Cash Flows Year Ended December 31, 2001 Joseph R. Perpetual Totals Lamar Care 2001 2000 Cash flows from operating activities Operating loss $ - $ (1,873) $ (1,873) $ ( 1,467) Due to other funds 16,873 16,873 21,479 Net cash provided by operating activities 15,000 15,000 20,012 Cash flows from noncapital fmancing activities Operating transfers out .. (175) (15,000) (15,175) (20,000) Net increase (decrease) in cash and cash equivalents (175) (175) 12 Cash and cash equivalentst beginning of year 5,382 338,625 344,007 343,995 Cash and cash equivalents, end of year $ 5,207 $ 338,625 $ 343,832 $ 344,007 See notes to financial statements. 118 I I I I I I I I I I I I I I 119 I I I I I I I I I. I I I I I I I Compliance Section - - - 120 I I I I I I I I I I I I . . I - ;;;;;; I I 121 I I I AUGUST A, GEORGIA I Schedule of Expenditures of Federal Awards Year Ended December 31, 2001 I Federal Grantor / Federal Agency or Pass-through Grantor / CFDA Pass-through Federal I Program Title Nwnber Number Expenditures u.s. Department of Housing and Urban Development I Direct Programs Community Development Block Grant 14.218 B-00-MC-13-0003 $ 4,274,419 Emergency Shelter Grant 14.231 S-00-MC-13-0004 107,761 Home Investment Partnerships Program 14.239 M-00-MC-13-0006 1,964,832 I Total U.S. Department of Housing and Urban Development 6,347,012 I u.s. Department of Justice Direct Programs COPS Ahead 16.710 95-CC-WX-0135 246,935 I Local Law Enforcement Block Grant 16.592 99-LB-VX-7162 92,720 16.592 00-LB-BX-0772 320,454 413,174 I Juvenile Accountability Incentive Block Grant 16.523 99B-FM-0009 4,626 16.523 00B-FM-0003 6,773 I 16.523 OOB-ST-OOOl 9,765 16.523 OlB-ST-OOOl 2,609 23,773 Pass-through from the Office of the Governor I Criminal Justice Coordinating Council Drug Control and System Improvement Formula Grants 16.579 BOO-8-006 42,663 I 16.579 BO 1-8-004 5,463 48,126 iiiii Victims Assistance Grants 16.575 97-V A-GX-0013 8,466 16.575 98-V A-GX-0013 46,017 16.575 OO-V A-GX-0013 17,396 16.575 C-OO-S-003 29,400 101,279 Children and Youth Coordinating Council Grant 15.540 00J-12-000-0007 13,455 Executive Office for Weed & Seed 16.595 99-WOO7-GA-WS 133,941 16.595 00-WS-QX-OI04 175,000 16.595 01-WS-QX-0124 4,713 313,654 Violence Against Women 16.588 WOO-8-004 30,589 Total U.S. Department of Justice 1,190,985 122 AUGUSTA, GEORGIA I Schedule of Expenditures of Federal Awards - Continued I Year Ended December 31, 2001 Federal Grantor / Federal Agency or I Pass-through Grantor / CFDA Pass-through Federal Program Title Number Number Expenditures I u.s. Department of Transportation Direct Programs I Urban Mass Transportation Capital and Operating Assistance Grants 20.507 GA-90-XI29 $ 853,442 20.507 GA-90-XI53 655,160 20.507 GA-90-Xll2 150,368 I 20.507 GA-90-XI22 36,603 1,695,573 Federal Aviation Administration Airport Improvement Program Grants 20.1 06 3-13-0011-17 869,543 I 20.106 3-13-0011-18 156,462 20.106 3-13-0011-20 705,926 20.106 3-13-0012-22 166,047 I 1,897,978 Total U.S. Department of Transportation 3,593,551 I Emergency Management Agency Pass-through from the Georgia Emergency Management I Agency Hazard Mitigation Grant 83.548 1311-000 I 468,101 U.S. Environmental Protection Agency I Direct Programs Brownfield Pilots Cooperative Agreements 66.811 BP984866-99-0 17,041 Total $ 11,616,690 I I - I - iii I The accompanying notes are an integral part of the schedule of expenditures of federal awards. - = 123 . I I AUGUSTA, GEORGIA I Notes to Schedule of Expenditures of Federal Awards Year Ended December 31,2001 I Note 1 - Basis of presentation I I 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 wit4 the requirements of OMB Circular A-B3, Audits of 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 general purpose financial statements. Note 2 - Non-cash awards I I I Augusta, Georgia did not receive any non-cash federal awards during the year ended December 31, 2001. I I I I - . 124 AUGUSTA, GEORGIA I Summary Schedule of Prior Audit Findings Year Ended December 31,2001 I Findings for Federal Awards I Finding 99-3 U.S. Department of Housing and Urban Development - CFDA 14.218; Community Development Block Grant I Criteria 24 CPR ch. V section 570.9.01 requires CDBG grantees to carry out federally funded activities in a timely manner, which is determined by measuring the ratio of undisbursed grant funds available in the grantees U.S. Treasury account to the current grant entitlement. I Condition noted The amount of undisbursed grant funds available for expenditure in Housing's U.S. Treasury account exceeds its 1999 entitlement by more than the 1.5 times allowed under the statute. The amount of undisbursed grant funds available to Housing in its U.S. Treasury account is 1.91 times its 2000 entitlement. I I Recommendation Department of Housing and Urban Development ("BUD") is currently monitoring grant activities regularly and City program personnel are developing an aggressive project timetable to move all planned grant-funded projects forward, which will prevent future excess buildup of undisbursed grant funds. I Current status Corrected during this fiscal year. I Finding 00-1 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 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 accclunt 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 finding this fiscal year. - - Finding 00-2 U.S. Department of Housing and Urban Development - CFDA 14.218; Cornmunity Development Block Grant I Criteria 24 CFR Section 570.201 requires the amount of CDBG funds obligated during the program year for public services must not exceed 15 percent of the grant amount received for that year plus 15 percent of the program income it received during the preceding program year. I I 125 I I AUGUSTA, GEORGIA I Summary Schedule of Prior Audit Findings - Continued I Year Ended December 31, 2001 I Condition noted The amount of CDBG funds obligated during the 2000 program year for public services was equal to 24.7 percent of the grant amount received for 2000 plus 24.7 percent of the program income received during 1999. I Recommendation Augusta, Georgia should reduce CDBG public service expenditures for 2001 by an amount approximately equal to the excess for 2000 in accordance with the Department of Housing and Urban Development current recommendations. I Current status Repeat finding this fiscal year. I Finding 00-3 Internal control over compliance with federal awards. I U.s. Department of Transportation CFDA 20.106; Airport Improvement Program Grants I Condition noted Internal control for draw requests did not prevent drawdown of 100 percent reimbursement on initial expenditures under the program when federal share was limited to 90 percent of expenditures. Separate purchase orders were not issued for AIP projects and non-AIP projects. Vendors billed Daniel Field for non- AIP projects referencing federal project numbers. I Recommendation Augusta, Georgia should coordinate administration of grants by appropriately trained personnel with the work performed by outside consultants and personnel at Daniel Field. I Current status Corrected during this fiscal year. . . Finding 00-4 Internal control over compliance with federal awards - U.S. Department of Transportation CFDA 20.50.7; Urban Mass Transit Capital and Operating Assistance Grants Condition noted Internal control did not ensure timely response to the Federal Transit Authority in regard. to all deficiencies noted during their Triennial Review. The Federal Transit Authority performed a Triennial Review of Augusta, Georgia's Urban Mass Transit Program and issued its report during October 2000. As a result, the FTA noted deficiencies in seven areas and required corrective action responses to the deficiencies within 30, 60 and 90 days of the report. As of May 2000, responses in six of the seven areas had not been submitted. Deficiencies involving departments other than Transit had not been addressed Recommendation Augusta, Georgia should designate administration of grants and responsibility for internal control over federal grant awards by appropriate personnel with enough authority to ensure that deficiencies in each affected department are addressed. Current status Corrected during this fiscal year. 126 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 I I Augusta-Richmond County Commission Augusta, Georgia I We have audited the general-purpose fInancial statements of Augusta, Georgia as of and for the year ended December 31, 2001, and have issued our report thereon; based on our audit and the report of other auditors, dated May 15, 2002. 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. I I Comnliance As part of obtaining reasonable assurance about whether Augusta, Georgia's general-purpose financial 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 financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. I I 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 general-purpose financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over fmancial reporting 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 of the internal control over financial reporting that, in our judgment, could adversely affect Augusta, Georgia's ability to record, process, summarize and report financial data consistent with the assertions of management in the general-purpose fInancial statements. Reportable conditions are described in the accompanying schedule of findings as item 99-1. I I I I 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 general-purpose 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. Our consideration of the internal control over financial reporting 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. However, we believe that none of the reportable conditions described above is a material weakness. We also noted other matters involving the internal control over financial reporting that we have reported to management of Augusta, Georgia in a separate letter dated May 15, 2002. I !!!! - This report is intended solely for the information and use of 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. . . Ch~, ~d1~, I Lt..P . . . I Augusta, Georgia May 15, 2002 127 I I I I I 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-133 I I Augusta-Richmond County Commission Augusta, Georgia I Comoliance We have audited the compliance of Augusta, Georgia with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2001. Augusta, Georgia's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings. 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. I I I We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-B3, Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A-B3 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. I - ii - 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 31,2001. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements that are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of fmdings as items 00-1, 00-2, and 01-1. 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-B3. We noted certain 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 of the 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. Reportable conditions are described in the accompanying schedule of findings as item 01-2. 128 I 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 in 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 wealrnesses. However, we believe that none of the reportable conditions described above is a material weakness. I I I 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. I ~. ~~ 7~ l,t,/? I Augusta, Georgia May 29,2002 I I I I I I - . - - I - - - - I i 129 I I AUGUSTA, GEORGIA I Schedule of Findings Year Ended December 31, 2001 I I. Summary of the Auditor's Results I Findings for fInancial statements We issued an unqualified opinion on the fInancial statements of Augusta, Georgia as of and for the year ended December 31, 2001. I We noted matters involving the internal control over financial reporting as Finding Number 99-1. However, none were considered to be material weaknesses. I We did not note any non-compliance items considered material to the fmancial statements. I Findings for Federal Awards We noted matters involving the internal control over major programs as Finding Number 01-2. However, none were considered to be material weaknesses. I We issued an unqualified opinion on compliance for major programs for Augusta, Georgia as of and for the year ended December 31, 2001. I We noted audit findings that are required to be reported in accordance with OMB Circular A-133, Section 510(a) as Finding Numbers 00-1,00-2 and 01-1.. IdentifIcation of Maior Programs I CFDA Number Name of Federal Program or Cluster - - 14.218 14.239 U.S. Department of Housing and Urban Develo?rnent Commumty DeveJopment Block Grant HOME Investment Partnerships Program - - 16.592 16.595 U.S. Department of Justice Local Law Enforcement Block Grant Executive Office for Weed and Seed 20.507 20.106 U.S. Department of Transportation Urban Mass Transportation Capital and Operating Assistance Grants Airport Improvement Program Grants 83.548 Emergency Management Agency Hazard Mitigation Grant We used a threshold of$300,000 to distinguish between Type A and Type B programs. Augusta, Georgia is a low-risk auditee. 130 AUGUSTA, GEORGIA I Schedule of Findings - Continued Year Ended December 31,2001 I II. Findings for Financial Statements I Finding 99-1 (repeat finding) Internal control over financial reporting I Condition noted Financial transactions for Augusta Regional Airport at Bush Field were not recorded during the year, and errors were not corrected during routine monthly reviews. The separate but coordinated responsibilities of the Finance Department of Augusta, Georgia and Augusta Regional Airport at Bush Field are not clearly defined. I Recommendation We recommend that the City establish formal, written procedures to ensure that all transactions are correctly approved and recorded on a timely basis. Once effective procedures are established, appropriate personnel in Finance and Augusta Regional Airport at Bush Field will be assigned responsibility to monitor the procedures on a frequent and regular basis to insure compliance with the established procedures. I I The procedures will include, at a minimum: I Agreeing the balances of the balance sheet accounts to subsidiary records or schedules. This procedure will be performed as regularly as practical, but no less frequently than monthly. Reviewing the balances in the income and expense accounts for reasonableness, as compared with informed expectations, prior year amounts, budgeted amounts, and other sources of analytical information. This procedure will be performed as regularly as practical, but no less frequently than monthly. I . . Investigating and reconciling differences between the general ledger accounts and subsidiary records when found. I ID. Findings for Federal Awards 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, "the recipient agrees to establish a trust fund in which all payments received under this program, including match, must be deposited. For pwposes 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 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 I I 131 I I AUGUSTA, GEORGIA I Schedule of Findings - Continued Year Ended December 31, 2001 I Finding 00-2 (repeat finding) U.S. Department of Housing and Urban Development - CFDA 14.218; Community Development Block Grant I Criteria 24 CPR Section 570.201 requires the amount of CDBG funds obligated during the program year for public services must not exceed 15 percent of the grant amount received for that year plus 15 percent of the program income it received during the preceding program year. I I Condition noted The amount of CDBG funds obligated during the 2001 program year for public services was equal to 15.8 percent of the grant amount received for 2001 plus 15.8 percent of the program income received during 2000. I I Effect Program income received from 2000 Entitlement grant amount 2001 Base amount $ 92,857 2,903,000 2,995,857 @15% 449,379 473,400 I CAP amount Total public service projects expenditures Difference $ 24,021 I Ouestioned Costs Difference is subject to disallowance $ 24,021 I Recommendation Augusta, Georgia should reduce CDBG public service expenditures for 2001 by an amount approximately equal to the excess for 2001 in accordance with the Department of Housing and Urban Development current recommendations. I I - Finding 01-1 U.S. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program 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). 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 financial reporting system that tracks match obligations and match contnbutions to ensure that the match requirements will be met by the end of the respective program year. 132 AUGUSTA, GEORGIA I Schedule of Findings - Concluded Year Ended December 31,2001 I Finding 01-2 Internal control over compliance with federal awards. I u.s. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. I 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 Prograrn Administration. I I .. Condition noted Internal control over recordkeeping 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 recordkeeping system to ensure that accounting records and documentation were retained for the time period required by applicable requirements of the A-102 common rule. I Recommendation The City's Housing and Neighborhood Development Office should establish formal internal controls which 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 proj ects. I I I I I I I I I I I 133 I