HomeMy WebLinkAboutANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2007
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUST A, GEORGIA
Annual Financial Statements
For the Year Ended December 31, 2007
I
I
AUGUSTA, GEORGIA
I
Annual Financial Report
Year Ended December 31,2007
Table of Contents
I
I
FINANCIAL SECTlON
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
I
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
I
Government-wide Financial Statements:
Statement of Net Assets
I
Statement of Activities
I
Fund Financial Statements:
Balance Sheet - Governmental Funds
I
Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
I
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
I
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-
General Fund
I
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
Fire Protection Fund -
Statement of Net Assets - Proprietary Funds
I
Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
I
Statement of Fiduciary Net Assets - Fiduciary Funds
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
I
Notes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATlON
I
Pension Plans- Required Supplementary Information - Schedules of Funding Progress
I
Pension Plans - Required Supplementary Information - Schedules of Employer Contributions and
Notes to Required Schedules
I
I - 2
4 - 14
19
20-21
24-25
27
28-29
31
32
33
34
35
36-37
38
39
43-82
84-85
86-88
I
AUGUST A, GEORGIA
I
Annual Financial Report
Year Ended December 31, 2007
I
Table of Contents (continued)
Page
I
Combining Balance Sheet - Nonmajor Capital Project Funds
130
I
Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Capital Project Funds
131
NONMAJOR ENTERPRISE FUNDS
I
Combining Statement of Net Assets - Nonmajor Enterprise Funds
134 - 135
I
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Nonmajor Enterprise Funds
136- 137
Combining Statement of Cash Flows - Nonmajor Enterprise Funds
I INTERNAL SERVICE FUNDS
Combining Statement of Net Assets - Internal Service Funds
138-141
I
144 - 145
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Internal Service Funds
146 - 147
I
Combining Statement of Cash Flows - Internal Service Funds
148=-151
FIDUCIARY FUNDS
I
Combining Statement of Fiduciary Net Assets - Pension Trust Funds
156
I
Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
157
Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds
160 - 161
I
COMPLIANCE SECTION
I
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
C-3 - C-4
Schedule of Expenditures of Federal Awards
C-5 - C-7
I
Notes to Schedule of Expenditures of Federal Awards
C-8
I
Summary Schedule of Prior Audit Findings
C-9 - C-22
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
C-23 - C-24
Schedule of Findings and Questioned Costs
C-25 -C31
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL SECTION
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNT ANTS
Augusta-Richmond County Commissioners
Augusta, Georgia
We have audited the accompanying financial statements of the governmental actiVities, the business-type
activities, Augusta Canal Authority, each major fund and the aggregate remaining fund information of Augusta,
Georgia as of December 31,2007 and for the year then ended, which collectively comprise Augusta, Georgia's
basic financial statements, as listed in the table of contents. These financial statements are the responsibility of
the Augusta, Georgia management. Our responsibility is to express opinions on these basic financial statements
based on our audit. We did not audit the financial statements of the Augusta-Richmond County Department of
Health or Downtown Development Authority. Those financial statements were audited by other auditors whose
reports thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the
Department of Health and Downtown Development Authority, is based solely on the reports of the other
auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to 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 basic financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe that our audit
and the reports of other auditors provide a reasonable basis for our opinions.
In our opinion, based upon our audit and the report of other auditors, the basic financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the Augusta Canal Authority, each major fund and the aggregate remaining fund
information of Augusta, Georgia, as of December 31,2007, and the respective changes in financial position and
cash flows, where applicable, and the respective budgetary comparison for the general fund and fire protection
fund for the year then ended in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 15 to the financial statements, certain errors resulting in overstatement of capital assets and
beginning net assets as of December 31, 2006 and interest income for the year ended December 31, 2006, were
discovered by management of Augusta, GA during the current year. Accordingly, an adjustment has been made
to beginning net assets as of December 31, 2007 to correct the error.
In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2008 on our
consideration of Augusta, Georgia's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance_ That report is an integral part of an audit performed in accordance with Government Auditing
Standards and is important in assessing the results of our audit.
I
I"
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I-
I
I
MANAGEMENT'S DISCUSSION AND ANALYSIS
3
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Government's basic financial statements. The
basic financial statements consist of three components: I) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. The basic financial statements present two different views of the
Government Ihrough the use of government-wide statements and fund financial statements. In addition to the basic
financial statements, this report contains other supplemental information that will enhance Ihe reader's understanding of the
financial condition of the Government.
Required Components of Annual Financial Report
Figure 1
Management's
Discussion and
Analysis
I
Basic
Financial
Statements
I
Government-
Wide Financial
Statements
I
Fund
Financial
Statements
Notes to the
Financial
Statements
Detail
.
Summary
Basic Financial Statements
The first two statements in the basic financial statements are the Government-wide Financial Statements. They provide
both short and long-term information about the Government's financial status.
The next statements are Fund Financial Statements. These statements focus on the activities of the individual parts of
Augusta, Georgia's government. These statements provide more detail than the government-wide statements. There are four
parts to the Fund Financial Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; 3)
the proprietary fund statements; and 4) the fiduciary fund statements.
The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some
of the data contained in those statements. After the notes, supplemental information is provided to show details about the
Government's non-major governmental funds and internal service funds, all of which are added together in one column on
the appropriate basic financial statements.
Government-wide Financial Statements
The Government-wide financial statements provide a broad view of the Government's operations in a manner similar to a
private-sector business_ The statements provide both short-term and long-term information about the Government's
financial position, which assists in assessing the economic condition at the end of the fiscal year- These statements are
prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This means the
statements take into account all revenues and expenses connected with the fiscal year even if cash involved has not been
received or paid_ The government-wide financial statements include the following two statements:
The Statement of Net Assets presents information on all of the Government's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of
whether the financial position of the Government is improving or deteriorating.
The Statement of Activities presents information showing how the Government's net assets changed during the most
recent fiscal year- All changes in nel assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will not result in cash flows until future fiscal periods (e_g. uncollected taxes and earned but unused vacation leave).
5
I
Fiduciary Funds
I
The Fiduciary Funds are used to account for assets held by the Government as an agent for individuals, private
organizations, other governments and other departments. The Government is responsible for ensuring that the assets
reported in these funds are used only for their intended purposes and only by those to whom the assets belong. These funds
are not reflected in the government-wide fInancial statements because the resources are not available to support the
Government's operations or programs_
I
I
Government-wide Financial Analysis
I
Comparative data for the entity-wide governmental activities and the business-type activities is provided below.
I
The G<>vernment's Net Assets
December 31, 2007 and 2006
Figure 2
I
I
Business-type
Governmenlal Business-type Govenunental Activities Tolal
Activities Activities Tolal Activities (As reslated) ( As restated)
2007 2007 2007 2006 2006 2006
Cwrent and other assets $ 337,082,135 $ 301,886,466 $ 638,968.601 $ 316.588,395 $ 343,725,039 $ 660,313,434
Capital assets 247,213,678 485,052,108 732,265,786 229,164,702 419,297,536 648,462,238
Total assets 584,295,813 786,938,574 1,371,234,387 545,753,097 763,022,575 1,308,775,672
I
Long-term liabilities
Other liabilities
Totalliabilites
45,530,123
48,060,667
93,590,790
504,604,579
30,406,025
535,010,604
550,04,702
78,466,692
628,601,394
55,617,736
40,317,977
95,935,713
508,933,469
21,963,251
530,896,720
564,551,205
62,281,228
626,832,433
I
I
Net assets:
Invested in
capital assets, net
of related debt
Restricted
Unrestricted
I
238,765,702 143,717,492 382,483,194 224,230,109 129,302,537 353,532,646
186,758,852 15,926,125 202,684,977 219,256,694 16,429,773 235,686,467
65,180,469 92,284,353 157,464,822 6,330.581 86,393.545 92,724,126
490,705,023 $ 251,927,970 $ 742,632,993 $ 449,817,384 $ 232,125,855 $ 681,943,239
Tolal oet assets $
I
I
I
I
I
I
I
7
I
I The G.lvernment's Changes in Net Assets
For the Years Ended December 31, 2007 and 2006
Figure 3
I The <riJvecnment Changes in Net Assets
Figure J
I Business-type
Governmental Business-type Governmental Activities Total
Activities Activities Total Activities (As restated) (As restated)
2007 2007 2007 2006 2006 2006
Revenues:
I Program revenues:
Charges for selVices $ 35,142,343 $ 108,082,353 143,224,696 $ 33,156,088 $ 98,384,056 $ 131,540,144
Operating grants and contributions 10,591,102 183,764 10,774,866 8,296,754 1,030,173 9,326,927
Capital grants and contributions 630,514 3,654,745 4,285,259 4,276,819 4,276,819
I General revenues:
Property taxes 48,820,848 48,820,848 47,510,238 47,510,238
Other taxes 111,459,091 111,459,091 99,296,470 99,296,470
Grants and contributions not restricted
I to specific programs 960,741 960,741 950,923 950,923
Unrestricted investment earnings 15,424,993 11,961,476 27,386,469 12,907,142 12,994,865 25,902,007
Miscellaneous 815,900 939,453 1,755,353 1,228,979 711,659 1,940,638
Total revenues 223,845,532 124,821,791 348,667,323 203,346,594 117,397,572 320,744,166
I Expenses:
Genernl government 32,569,426 32,569,426 28,232,054 28,232,054
Judicial 15,871,604 15,871,604 14,766,171 14,766,171
I Public safety 77,636,868 77,636,868 73,164,301 73,164,301
Public works I3,007,368 13,007,368 12,182,770 12,182,770
Hea[th and welfare 2,227,609 2,227 ,609 2,027,300 2,027 ,300
Culture and recreation 24,555,210 24,555,210 32, I31,742 32,131,742
Housing and development 8,844,236 8,844,236 9,469,828 9,469,828
I Interest on long-tena debt 1,517,141 1,5[7,141 769,618 769,618
Waste management 6,196,161 6,196,161 5,859,827 5,859,827
Water and sewer 70,720,901 70,720,901 68,152,898 68,152,898
Airports 15,380,555 15,380,555 14,271,584 14,271,584
I Municipal golf course 546,477 546,477 688,293 688,293
Transit 4,607,435 4,607,435 4,960,174 4,960,174
Newman Tennis Center 1,370 1,370
Garbage Collection 14,296,461 14,296,461 12,998,308 12,998,308
I Riverwalk 117 117
Total expenses 176,229,462 111,748,107 287,977,569 172,743,784 106,932,454 279,676,238
Increase in net assets before transfers 47,616,070 I3,073,684 60,689,754 30,602,810 10,465,118 38,619,119
I Transfers (6,728,431) 6,728,431 (6,365,664) 6,365,664
Increase in net assets 40,887,639 19,802,115 60,689,754 24,237,146 16,830,782 41,067,928
I Net assets, January I 449,817,384 232,125,855 681,943,239 425,580,238 215,744,650 641,324,888
Prior period adjustments (449,577) (449,577)
Net assets, January I, .s restated 215,295,073 215,295,073
I Net assets, December 3 1 $ 490,705,023 $ 251,927,970 $ 742,632,993 S 449,817,384 S 232,125,855 $ 681,943,239
I
I
I
I 9
I
The actual operating revenues for the General Fund were more than the budgeted amount by $5.3 million, or 5%. The
individual sources within the revenues fluctuated both positively and negatively. No individual source materially varied
from the final budget
I
I
As a result of sound budget management by all departments of the Government, actual operating expenditures were less
than the budgeted amount by $684 thousand. For the year, actual revenue and other financing sources were over actual
expenditures and other financing uses by $5.2 million.
I
Capital Projects Funds
I
The Government uses Capital Projects Funds to account for the acquisition and construction of major capital facilities that
are not financed by Proprietary Funds. Major funds included in the fund financial statements are the SPLOST Fund Phase
III , SPLOST Fund Phase IV and SPLOST Fund Phase V. The proceeds of the special purpose 1% sales tax are accounted
for in Capital Projects Funds until improvement projects are completed. The SPLOST Fund Phase III fund balance is $45.9
million, the SPLOST Fund Phase IV's fund balance is $96.4 million and the SPLOST Fund Phase V's fund balance is
$80.7 million, all of which is held for specific construction and improvement projects and capital acquisitions.
I
Proprietary Funds
I
The activities of the Government that render services to the general public on a user charge basis, or that require periodic
determination of revenues for public policy are accounted for as Enterprise Funds. The Government's proprietary funds
provide the same type of information found in the government-wide statements but in more detaiL Unrestricted net assets at
the end of the year were as follows: Water and Sewer System Fund, $60.4 million; Augusta Regional Airport, $14 million;
Nonmajor Enterprise funds, $18.1 million. The total growth (reduction) in net assets for previously mentioned funds were
$5.6 million, $5.4 million and $8.4 million, respectively_ Other factors concerning the finances of these funds have already
been addressed in the discussion of the Government's business-type activities.
I
I
I
I
I
I
I
I
I
I
I
I
II
I
Long-Term Debt
I
As of December 31, 2007, the Government had a total of $577 million in outstanding long-term debt. Of this amount,
$490.2 million consists of revenue bonds backed by the revenues of the water and sewer system.
I
I
The Government's Outstanding Debt
General Obligation and Revenue Bonds
December 31, 2007
Figure 5
I
I
Govemmntal Buiiress-type
Activities Activities Tolal
2007 2006 7IXJ7 2006 20Cfl 2006
Gemal oblig;ltioo Ixlnds $ 36,468,229 $ 44,741,536 $ . $ . $ 36,468,229 $ 44,741,536
Revenue ixlrrls 46,053 157,434 4'XJ,209,032 491,121,382 4'XJ,255,085 491,278,816
0Iher ddJt 26,941,843 27,688,084 23,267,89t 25,528,616 ':iJ,2(J'),737 53,216,700
Total ddx $ 63,456,125 $ 72,587,054 $ 513,476,926 $ 516,649,998 $ 576,933,051 $ 589,237,052
I
I
I
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$-
I
I
I
G.O. Bonds
Revenue Bonds
Other Debt
I
I
The Government has maintained a bond rating of A+ from Standard & Poor's Rating Group and an Al rating from
Moody's Investor Service. These bond ratings are clear indications of the sound financial condition of the Government
These high ratings are a primary factor in keeping interest costs low on the Government's outstanding debt.
I
The State of Georgia limits the amount of general obligation debt that a unit of government can issue to 10 percent of the
total assessed value of taxable property located within that government's boundaries_ The legal debt margin for the
Government is $460 million based on the 2007 County-wide bond digest of $4,604 million.
I
Additional information regarding the Government's long-term debt can be found in Note 3 of the notes to the fmancial
statements of this report.
I
I
I
13
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
BASIC FINANCIAL STATEMENTS
15
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
GOVERNMENT-WIDE FINANCIAL STATEMENTS
\
17
I
I Augusta, Georgia
Statement of Net Assets
December 31,2007
I Primary Government Component Units
Business Primary Department Augusta o..wntown
I Governmental Type Government of Canal Development
Activities Activities Total Health Authority Authority
Assets
Cash and temporal)' in vestments $ 250,508,611 $ 87,501,670 $ 338,010,28 I $ 1,556,220 $ 558,176 $ 523,410
I Receivables (net of allowance for
doubtful accounts)
Taxes 3,855,683 3,855,683
Accounts 16,084,982 14,727,267 30,812,249 1,121,307 249,755
I Interest 227,482 524,122 751,604
Notes 3,701,447 3,701,447
Intergovernmental .w,325 789,351 829,676
Prepaid expenses 277,773 277,773 22,118
I Inventol)' 108,1\4 2,955,322 3,063,436 33,211
Restricted cash and investments 58,525,888 175,244,654 233,770,542 2,391,766
Internal balances 2,870,195 (2,870,195)
Capital assets
I Land and construction in progress 114,395,153 175,161,411 289,556,564 1,647,997 520,651
Other capital assets, net of
accumulated depreciation 132,818,525 309,890,697 442,709,222 7,292,703 11,851,263 3,655,032
Other assets 881,635 23,014,275 23,895,910 55,853
Total assets 584,295,813 786,938,574 1,371,234,387 11,618,227 15,626,940 4,234,295
I Liabilities
Accounts payable 9,358,656 15,156,650 24,515,306 1,524,584 58,957 190,387
I Accrued interest 478,333 5,366,603 5,844,936
Accrued salaries and vacation 4,621,046 763,327 5,384,373 171,720 41,355
Other accrued liabilities 4,031,665 250,099 4,281,764 32,840 11,214
Unearned revenue 1\ ,644,965 11,644,965
I Liabilities due in less than one year 17 ,926,002 8,869,346 26,795,348 33,035 585,000
Liabilities due in greater than one
year 45,530,123 504,604,579 550,\34,702 835,164 1,215,000
Total liabilities 93,590,790 535,010,604 628,601,394 2,597,343 100,312 2,001,601
I Net assets
Invested in capital assets net of
related debt 238,765,702 143,717,492 382,483,194 8,473,180 12,371,914 1,855,032
Restricted foc
I Capital projects 186,420,227 5,516,766 191,936,993 2,391,766
Debt service 10,.w9,359 10,409,359
Perpetual care 338,625 338,625
Health and welfare 857,867
I Unrestricted 65,180,469 92,284,353 157,464,822 (310,163) 762,948 377,662
Total net assets $ 490,705,023 $ 251,927,970 $ 742,632,993 $ 9,020,884 $ 15,526,628 $ 2,232,694
I
I The notes to the fmanciat statements are an integral part of this statement.
I
I
I 19
I
I
I Net (Expense) Revenue and
Changes in Net Assets
Primary Government Component Units
I Department Augusta Downtown
Goverumental Business-type of Canal Development
Activities Activities Total Health Authority Authority
I $ (17,206,426) $ $ ( 17,206,426) $ $ $
(6,474,313) (6,474,313)
I (68,914,813) (68,914,813)
(10,929,821) (10,929,821)
(1,570,941 ) (1,570,941 )
(19,250,204) ( 19,250,204)
I (4,001,844) (4,001,844)
(1,517,141) ( 1,517, 141)
(129,865,503) ( 129,865,503)
I 4,879,170 4,879,170
(3,868,096 ) (3,868,096)
4,036,215 4,036,215
I (77,252) (77,252)
(3,846,065) (3,846,065)
(948,217) (948,217)
175,755 175,755
I ( 129,865,503) 175,755 (129,689,748)
I (1,413,540)
319,953
231,184
(1,413,540) 319,953 231,184
I 48,820,848 48,820,848
74,441,584 74,441,584
I 18,093,444 18,093,444
18,924,063 18,924,063
960,74 I 960,741 1,357,646
15,424,993 11,961,476 27,386,469 47,285 73,937 14,122
I 815,900 936,453 1,752,353 260,294
(6,728,431) 6,728,43 1
170,753,142 19,626,360 190,379,502 1,404,931 334,231 14,122
I 40,887,639 19,802,115 60,689,754 (8,609) 654,184 245,306
449,817,384 233,439,787 683,257,171 9,029,493 14,872,444 1,987,388
( I ,313,932) (1,313,932)
I 449,817,384 232,125,855 681,943,239 9,029,493 14,872,444 1,987,388
$ 490,705,023 $ 251,927,970 $ 742,632,993 $ 9,020,884 $ 15,526,628 $ 2,232,694
I
I
I 21
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FUND FINANCIAL STATEMENTS
23
I
I
I
I Other Total
Special Sales Special Sales Governmental Governmental
I Tax Phase IV Tax Phase V Funds Funds
$ 99,424,032 $ 32,639,003 $ 23,888,154 $ 249,1l6,285
I 847,638 3,855,683
21,275 2,839,707 1,837,635 11,820,548
121,006 227,482
I 3,701,447 3,701,447
40,325
277,773
I 108,114
45,979,350 45,979,350
338,625 338,625
I 179,433 3,605,366
$ 99,445,307 $ 81,458,060 $ 30,913,938 $ 319,070,998
I $ 2,948,503 $ 720,726 $ 1,267,872 $ 8,743,488
720,607 720,607
I 72,627 198,007 4,576,050
17,508 1,419,861
4,596,080 18,179,247
I 3,021,130 720,726 6,800,074 33,639,253
I 9,070,844 1,647,516 1,420,820 19,725,581
1,596,460 1,596,460
385,887
43,866,010 43,866,010
I 4,955,061
87,353,333 35,223,808 193,806,162
I 15,406,935 15,406,935
10,194 10,194
5,139,392 5,139,392
I 540,063 540,063
96,424,177 80,737,334 24,113,864 285,431,745
I $ 99,445,307 $ 81,458,060 $ 30,913,938 $ 319,070,998
I
I 25
I
I
Augusta, Georgia
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets
December 31,2007
I
I
I
Amounts reported for governmental activities in the stalement of net assets are different because:
Ending fund balance - governmental funds
I
Capital assets used in governmental activities are nol financial resources and, therefore,
are not reported in the funds.
Historical cost of capital assets
Accumulated depreciation
I
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the funds.
Adjustment of deferred revenue
Bond issue costs capitalized
Annual pension asset (Iiabilily)
I
I
Internal service funds are used by management to charge thc costs of risk management,
fleet operations, employee benefits, and GMA lease activity to individual funds. The
assets and liabilities of the internal service funds are included in governmcntal activities in
the statement of net assets.
Net assets of internal service funds
Less: cumulative amounts allocated to business-type activities
Less: capital assets included in adjustment for capital assets
I
I
I
Long-term liabilities, including bonds payable and accrued interest, are not due and
payable in the current period and therefore are not reported in the funds.
Revenue bonds payable
General obligation bonds payable
Compensated absences
Capital leases
Claims and judgemenls
Olher post employement benefits liability
Accrued interest
I
I
I
Net assets of governmental activities
I
The notes to the financial statements are an integral part of this statement
I
I
I
27
$
285,431,745
351,814,268
(104,600,590)
247,213,678
6,534,282
479,315
402,320
7,415,917
1,371,172
113,514
(464,095)
1,020,591
(46,053 )
(36,468,229)
(4,050,544)
(1,743,688)
(4,978,257)
(2,611,804)
(478,333)
(50,376,908)
$ 490,705,023
I
I
I
I Other Total
Special Sales Special Sales Governmental Governmental
Tax Phase IV Tax Phase V Funds Funds
I $ $ $ 11,167,266 $ 53,378,700
37,584,639 13,805,066 Ill,459,091
3,288,900 4,890,187
I 4,732,002 3,247,522 1,177,728 15,452,614
5,854,388 22,915,930
1,274,329 7,309,184
3,907,573 5,144,651 12,208,110
I 34,693
415,911 478,575
8,639,575 40,832,161 42,128,239 228,127,084
I
477,515 2,925,029 28,481,107
I 392,497 14,582,183
114,913 4,626,887 76,602,674
3,220,332 484,141 4,055,419 14,493,083
I 518,838 1,824,098 4,485,973
2,284,356 5,080,255 4,494,502 25,400,613
6,781,376 8,828,774
10,410,166 934,691 2,785,095 16,211,559
I 57,000 13,926,946 14,1l2,538
17 ,026,120 8,380,185 39,987,751 203,198,504
I (8,386,545) 32,451,976 2,140,488 24,928,580
3,477,345 11,013,631 23,376,904
I (9,727,390) (16,924,202) (29,646,425)
1,967,750
3,477,345 (9,727,390) (5,910,571) (4,301,771)
I (4,909,200) 22,724,586 (3,770,083) 20,626,809
101,333,377 58,012,748 27,883,947 264,804,936
I $ 96.424,177 $ 80,737,334 $ 24,113.864 $ 285,431,745
I
I
I
I 29
I
I
Augusta, Georgia
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
Year Ended December 31,2007
I
I
I
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
I
Govemmental funds report capital outlays as expenditures_ However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlay exceeded depreciation
in the current period.
Capital outlay
Depreciation expense
I
28,364,246
(10,393,717)
I
Govemmental funds recognize revenues when current resources are provided; the
Statement of Activities recognizes revenue when earned, resulting in a timing difference of
current period revenues relating to converting from modified-accrual basis to full accrual
basis_
I
The change in the net pension obligation or asset does not affect current financial
resources and are not reported as a revenue or expense in the funds.
I
The change in the net olher post employment benefit obligation or asset does not affect
current financial resources and are not reported as a revenue or expense in the funds.
I
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however has any
effect on net assets. Also, governmental funds report the effect of issuance costs,
premiums, discounts, and similar items when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. This amount is the net effecl of
these differences in the treatment of long-term debt and related accounts.
General obligation bonds payable
Revenue bonds payable
Notes payable
Compensated absences
Capital leases
Claims and judgements
Bond issue costs capitalized
Accrued interest
I
I
I
I
I
The net revenue of certain activities of the internal service fund is reported with
govemmental activilies.
I
Change in net assets of governmental activities
The notes to the financial statements are an integral part of this statement.
I
I
31
$ 20,626,809
17,970,529
(4,435,697)
95,072
(2,611,804)
8,273,307
111,381
2,500,000
54,202
(223,169)
(1,554,982)
(119,826)
147,268
9,188,181
54,549
$ 40,887,639
I
I
I
Augusta, Georgia
Fire Protection
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year Ended December 31,2007
With comparative amounts for December 31, 2006
I
I
Variance with
Budgeted Amounts Final Budget -
Actual Positive 2006
Original Final Amounts (Negative) Actual
$ 4,130,670 $ 5,236,618 $ 5,464,228 $ 227,610 $ 4,921,327
9,775,390 10,227,510 10,227,510 9,775,390
2,613
60,700 60,700 473,874 413,174 517,060
45,700 45,700 113,971 68,271 87,462
164,394 245,417 81,023 486,484
3,250
1l,29 I 1l,29 I 31,850
14,012,460 15,734,922 16,536,291 801,369 15,825,436
Revenues
I
Taxes - property
Taxes - otherthan property
Licenses and permits
Use of money and property
Charges for current services
Intergovernmental
Contributions and donations
Other
Total revenues
I
I
I
Expenditures
Current:
General government
Public safety
Capital outlay
Debt service
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
969,097
19,438,610 21,067,613 20,075,393 992,220 18,368,600
523,240 616,699 143,476 473,223 407,679
10,610 10,610 1l,314 (704) II ,511
19,972,460 21,694,922 20,230,183 1,464,739 19,756,887
(5,960,000) (5,960,000) (3,693,892) 2,266,108 - (3,931,451)
5,960,000 5,960,000 6,340,085 380,085 4,241,820
5,960,000 5,960,000 6,340,085 380,085 4,241,820
$ $ 2,646,193 $ 2,646,193 310,369
2,773,571 2,463,202
$ 5,419,764 $ 2,773,571
I
I
I
Otber financing sources (uses)
Transfers in
Total other fmancing sources (uses)
I
Net change in fund balances
Fund balance - beginning
I Fund balance - ending
I
I
I
I The notes to the fmancial statements are an integral part of this statement.
I 33
I
I Augusta, Georgia
Statement of Revenues, Expenses, and Changes in Fund Net Assets
I Proprietary Funds
Year Ended December 31, 2007
I Enterprise Funds
Water Augusta Otber Internal
and Sewer Regional Enterprise Service
System Airport Funds Total Funds
I Operating revenues
Charges and fees $ 66,859,327 $ 14,981,099 $ 25,657,069 $ 107,497,495 $ 30,279,999
Total operating revenues 66,859,327 14,981,099 25,657,069 107,497,495 30,279,999
I Operating expenses
Personal services and employee benefits 1l,465,121 3,573,476 4,291,891 19,330,488 464,303
Purchased/contracted services 8,516,411 1,096,561 14,159,852 23,772,824 453,636
I Supplies 5,443,961 8,061,353 1,232,291 14,737,605 197,538
Repairs and maintenance 3,935,676 352,348 1,004,770 5,292,794 4,377,555
Interfund/interdepartmental charges 1,873,690 219,512 1,103,145 3,196,347
Other costs 87,996 87,996 282,080
I Depreciation 13,086,218 1,523,817 2,301,430 16,911,465 46,540
Closure/postc\osure accrual 1,246,810 1,246,810
Lease expense 2,504,942
I Risk benefit charges 981,472
Insurance 20,419,941
Total operating expenses 44,321,077 14,827,067 25,428,185 84,576,329 29,728,007
I Operating income (loss) 22,538,250 154,032 228,884 22,921,166 551,992
Nonoperating revenue (expense)
I Interest revenue 9,864,651 552,743 1,503,584 11,920,978 652,635
Sale of property 18,264 30,540 40,800 89,604 2,405
Other revenue 866,667 1,192,603 231,776 2,291,046 241,526
Intergovernmental 3,739,406 98,603 3,838,009
I Interest expense (23,957,459) (430,382) (24,387,841) (853,136)
Loss on early termination of swap agreement (3,367,879) (3,367,879)
Loss on disposal of capital assets (313,362) (313,362)
Total nonoperating revenue (expense) (16,575,756) 5,201,930 1,444,381 (9,929,445) 43,430
I
Income (loss) before transfers 5,962,494 5,355,962 1,673,265 12,991,721 595,422
Transfers in 6,728,431 6,728,431 139,272
I Transfers out (598,182)
Change in net assets 5,962,494 5,355,962 8,401,696 19,720,152 136,512
I Total net assets - beginning 154,848,602 55,551,592 23,235,070 1,234,660
Prior period adjustment (1,313,932)
I Total net assets - beginning, as restated 154,848,602 54,237,660 23,235,070 1,234,660
Total net assets - ending $ 160,811,096 $ 59,593,622 $ 31,636,766 $ 1,371,172
I Some amounts reported for business-type activities in the statement of net assets are different
because of the following:
I Certain internal fund expenses are allocated to business-type activities. 81,963
Total change in net assets for business-type activities $ 19,802,115
I The notes to the financial statements are an integral part of this statement.
35
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Statement of Cash Flows
Proprietary Funds
Year Ended December 31, 2007
Enterprise Funds
Water Augusta Other (nternal
& Sewer Regional Enterprise Service
System Airport Funds Total Funds
Reconciliation of operating income (loss)
to net cash provided by
(used in) operating activities
Operating income (loss) $ 22,538,250 $ 154,032 $ 228,884 $ 22,921,166 $ 551,992
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization 13,086,218 1,523,817 2,301,430 16,911,465 46,540
Closure/post closure costs 1,246,810 1,246,810
Change in assets and liabilities
Accounts receivable (1,417,826) (145,484) (475,537) (2,038,847) 398,465
Inventory (282,966) (32,696) 573 (315,089)
Accounts payable 8,288,101 958,327 1,032,363 10,278,791 ( 1,570,218)
Accrued salaries and vacation 44,099 12,760 56,859 (3,710)
Other accrued Iiabilites 4,849 4,849
Due to other funds (9,828,859) (144,241) (9,973,100) (656,216)
Unearned revenue 2,076 2,076
Decrease in closure liability (1,709,991) (1,709,991)
Total adjustments 9,890,843 2,303,964 2,269,016 14,463,823 (1,785,139)
Net cash provided by (used in)
operating activities $ 32,429,093 $ 2,457,996 $ 2,497,900 $ 37,384,989 $ (1,233,147)
Reconciliation of cash and cash equivalents
to the balance sheets
Cash and cash equivalents in current assets $ 47,299,031 $ 11,041,977 $ 29,160,662 $ 87,501,670 $ 1,392,326
Restricted cash and cash equivalents included in
noncurrent cash and investments 152,683,994 17,698,136 4,862,524 175,244,654 12,207,913
Net cash and cash equivalents $ 199,983,025 $ 28,740,113 $ 34,023,186 $ 262,746,324 $ 13,600,239
The notes to the financial statements are an integral part of this statement.
37
I
I
I
Augusta, Georgia
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
Year Ended December 31, 2007
I
I
Private-purpose
Pension Trust Fund
Trust Funds Joseph R. Lamar
Additions
Contributions - employer $ 2,418,674 $
Contributions - plan member 1,492,559
Net investment income 9,136,575 306
Total additions 13,047,808 306
Deductions
Other 175
Administration 504,905
Benefit payments 7,005,602
Refunds 234,956
Total deductions 7,745,463 175
Net increase in plan net assets 5,302,345 131
Total net assets - beginning 105,733,279 5,583
Total net assets - ending $ 111,035,624 $ 5,714
I
I
I
I
I
I
I
I
I
I
I
I
I
The notes to the financial statements are an integral part of this statement.
I
39
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Notes to Financial Statements
41
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements
Year Ended December 31, 2007
Note 1 - Summary of significant accounting policies
Augusta, Georgia ("the Government") accounts for its financial position and results of operations in accordance with
accounting principles generally accepted in the Uniled States of America (GAAP) applicable to governmental units. The
Government's reporting entity applies all relevant Government Accounting Standards Board (GASB) pronouncements. In
the government-wide financial statements and in the proprietary fund financial statements, the Government applies
financial Accounting Standards Board (fASB) pronouncements and Accounting Principles Board (APB) opinions
issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements,
in which case, GASB prevails. Accordingly, the Government has adopted accounting policies, as described below.
A. Reporting entity
Augusta is located in the east central section of the state on the south bank of the Savannah River, which serves as the
boundary between Georgia and South Carolina. Augusta is on the fall line and has a landscape dotted with foothills
which descend to the coastal plain. Augusta is the head of the navigation on the Savannah River and is 135 miles east
of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles southwest of Columbia, South Carolina.
Augusta is the trade center for 13 counties in Georgia and five in South Carolina, a section known as the Central
Savannah River Area_
The Government was created by legislative act in the State of Georgia in 1995 from the unification of the two
governments, the City of Augusta, Georgia and Richmond County, Georgia. On June 20, 1995, the citizens of
Richmond County and the City of Augusta voted to consolidate into one government named Augusta, Georgia_ The
officials for the new government were elected and, based on the charter, took office on January 1, 1996. The unified
government combined all functions and began financial operations January I, 1996.
The Government is governed by a full-time Mayor, with a term of four years, and a ten member Commission, who
serve on a part-time basis and are elected to staggered terms of four years. The Mayor and Commission appoint an
Administrator who serves as a full-time administrative officer and is responsible for the daily operations of the
Government.
The Government's financial stalements include the accounts of all Augusta and Richmond County operations. The
criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100
ofGASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether:
· the organization is legally separate (can sue and be sued in their own name)
· the Government holds the corporate powers of the organization
· the Government appoints a voting majority of the organization's board
· the Government is able to impose its will on the organization
· the organization has the potential to impose a financial benefit/burden on the Government
· there is fiscal dependency by the organization on the Govemment
Utilizing the above criteria, the following agencies and commissions were included using the blending method in the
financial statements: Augusta Port Authority, due to degree of fiscal dependency on the Government, and Richmond
County Public Facilities, Inc_ (see Note 4D).
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
The Government's other component units, the Department of Health, Augusta Canal Authority, and Downtown
Development Authority are included in separate columns in the accompanying government-wide financial statements.
These units are reported in separate columns to emphasize that they are legally separate from the Government.
Separate financial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker
Blvd_, Augusta, Georgia 3090 I. Separate financial statements for the Downtown Development Authority may be
obtained from the Downtown Development Authority at 111 Tenth Street, Augusta, Georgia, 30901. Separate
financial statements for the Augusta Canal Authority may be obtained from the Augusta Canal Authority at 1450
Greene Street, Suite 400, Augusta, Georgia, 30903.
43
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
I
Year Ended December 31, 2007
I
Note 1 - Summary of significant accounting policies (Continued)
I
Special Sales Tax Phase III Fund - The Special Sales Tax Phase III Fund is a capital projects fund that accounts for
the receipts and disbursements of one percent (1 %) sales tax currently collected from 1996 through 2000. The primary
revenue sources are sales taxes, and the primary expenditures are capital outlay projects, primarily for public works,
recreation and outside agency projects_
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 - 2006 to be used primarily for public works,
recreation and outside agency projects.
I
Special Sales Tax Phase V Fund - This fund is a capital projects fund that accounts for receipts and disbursements of
one percent (1%) sales tax collected beginning March 2006 and expiring after five years or the quarter after a total of
$160 million has been collected, whichever occurs first. The revenue sources are sales tax and earned interest, and
expenditures will be for capital outlay projects, primarily for public works, recreation, and outside agency projects. The
funds will also be used to repay $44 million bonds issued for the expansion on the Webster Detention Center and
$8 million bonds issued for the Canal Authority.
I
I
The Government reports the following nonmajor governmental funds:
I
Special Revenue Funds
Urban Services District Fund - This fund accounts for revenue primarily from ad valorem taxes from areas within
the former city limits and expenditures related to governmental services such as "Main Street", "Urban Street
Lights", and "Sanitation".
I
Emergency Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the
emergency telephone response system.
I
Capital Outlay Fund - This fund accounts for Ihe disbursement of revenues for all capital expenditures in General
Fund departments. Capital expenditures are defined as any non-disposable item over $500 which includes vehicles,
office and computer equipment, communications equipment, building renovations and office furniture.
Law Enforcement Fund - This fund accounts for revenue and expenditures oflhe Sheriffs Department and Jail.
I
Occupational Tax Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire
protection services in the unincorporated area only.
I
Special Assessment Fund - This fund accounts for the receipt and disbursement of street light assessment taxes for
the installation of street lights in the Government.
I
Hotel/Motel tax and Promotionffourism Fund - This fund accounts for the receipt and disbursement of
hotel/motel and beer/wine tax revenues to the Augusta-Richmond County Convention & Visitors Bureau and the
Augusta-Richmond County Coliseum Authority.
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.
I
Urban Development Action Grant (UDAG) Fund - This fund accounts for loan transactions in relation to urban
development action grants. Repayments of initial grant revenue loaned to qualified recipients are restricted to
additional financing to qualified applicants.
I
Federal Drug Fund - This fund accounts for activities associated with drug education and enforcement.
State Drug Fund - This fund accounts for activities associated with drug education and enforcement.
I
45
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 1 - Summary of significant accounting policies (Continued)
I
Permanent Fund
Perpetual Care II Fund - This fund accounts for the principal originally donated for the sale of perpetual care
contracts at government-owned cemeteries after October I, 1970. The principal must be maintained intact and
invested.
The Government reports the following major enterprise funds:
I
I
Water and Sewer System Fund - This fund is used to account for the activity of providing water and sewer
services to the residents of the County. All activities necessary to provide such services are accounted for in this
fund, including, but not limited to, operations, maintenance, financing and related debt service, and billing and
collection.
I
Augusta Regional Airport at Bush Field Fund - This fund accounts for the operations of Augusta Regional
Airport at Bush Field, the only airport within the County from which service from the major airlines is available.
The Government reports the following nonmajor enterprise funds:
I
Waste Management Fund - This fund accounts for the provision of landfill services to residents and industries of
the County. All activities necessary to provide such services are accounted for in this fund including, but not
limited to, administration, operations, billing and collection.
I
Municipal Golf Course Fund - This fund accounts for the operation of the Municipal Golf Course, an 18-hole
golf course located within the city limits.
I
Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus
service within Richmond and Columbia counties.
Daniel Field Airport Fund - This fund accounts for revenue and expenses relaled to Daniel Field Airport.
I
Garbage Collection Fund - This fund accounts for receipt and expenses related to the Government's garbage
collection contract.
I
The Government also reports the following internal service funds:
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
Employee 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
47
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2007
Note 1- Summary of significant accounting policies (Continued)
Those revenues susceptible to accrual are property taxes, licenses, interest revenues and charges for services. State-
shared revenues collected and held by the state at year-end on behalf of the Government also are recognized as revenue.
Fines, fees and permits are not susceptible to accrual because generally they are not measurable until received in cash_
Grant revenues which are unearned at year-end are recorded as unearned revenues. Under the terms of grant
agreements, the Government funds certain programs by a combination of specific cost-reimbursement grants,
categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted net assets available to finance the program. It is the Government's policy to first apply cost-reimbursement
grant resources to such programs, followed by categorical block grants, and then by general revenues_
D. Budgets and budgetary accounting
The Government generally follows these procedures in establishing the budgetary data reflected in the financial
statements:
1: Budgetary hearings are held in August to discuss departmental budgets.
2. The Administrator presents the tentative budget to the Commission in Octo beL
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 within operating categories within departments can be requested by department directors.
Transfer of budget amounts involving capital outlay or salaries require approval of the Augusta-Richmond County
Commission. The Augusta-Richmond County Commission must approve revisions that alter the total
expenditures of any department or fund_ Budgets for capital items may be reappropriated in the ensuing year's
budget. Departments may request for other budget items to be reappropriated in the form of a budget adjustm~nt,
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 Projecls Funds_
6. Budgets for these funds are adopted on a basis consistent with accounting principles generally accepted in the
United States of America (GAAP)_
Budget information for expenditures represents the operating budget (as amended) as approved by the Augusta-
Richmond County Commission.
E. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of
monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
formal budgetary integration for the General Fund, Special Revenue Funds, Debt Service and Capital Projects Funds.
Encumbrances are recorded when purchase orders are issued but are not considered expenditures until liabilities for
payments are incurred. Encumbrances for outstanding purchase orders do not lapse at year end. Therefore, they are
reported as reservations of fund balance.
F. Cash and cash equivalents
The Government maintains a cash and investment pool in which the General Fund and all funds share. Each fund's
portion of the pool is displayed on its respective balance sheet as cash and cash equivalents and includes non-pooled
cash and investments separately held. Funds which have an excess of outstanding checks over bank balance have had
these balances reclassified as a due to the General Fund for purposes of financial statement presentation. Interest
income is allocated to each fund monthly based on its average monthly balance.
For the purposes of financial statement presentation, the Government considers all highly liquid investments with an
original maturity of 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.
49
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2007
Note 1 - Summary of significant accounting policies (Continued)
M. Compensated absences
The vacation policy of the Government provides for the accumulation of up to thirty days earned vacation leave with
such leave being fully vested when earned. For the Government's government-wide financial statements and
proprietary fund financial statements, an expense and a liability for compensated absences and the salary-related
payments are recorded as leave is earned. The Government has assumed a first-in, first-out method of using
accumulated compensated time. The portion of that time that is estimated to be used in the next fiscal year has been
designated as a current liability in the government-wide financial statements.
No accrual has been established for accumulated sick leave of employees since it is the Government's policy to record
the cost of sick leave only when it is used.
N. Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and the reported amount of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates.
51
I
AUGUST A, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 3 - Detailed notes on all funds (Continued)
I
5) Taxable bonds, notes warrants or other securities issued and guaranteed by any state, the District of Columbia,
Canada or any province in Canada.
6) Bonds, debentures or other securities issued or insured or guaranteed by an agency, authority, unit, or corporate
body created by the government of the United States of America.
7) Investment grade collateralized mortgage obligations.
8) Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development or the
International Financial Corporation.
9) Bonds, debentures, notes and other evidence of indebtedness issued, assumed, or guaranteed by any solvent
institution existing under the laws of the United States of America or of Canada, or any state or province thereof,
which are not in default and are secured to a certain level.
10) Secured and unsecured obligations issued by any solvent institution existing under the laws of the United States of
America or of Canada, or any state or province thereof, bearing interest at a fixed rate, with mandatory principal
and interest due at a specified time with additional limits.
11) Equipment trust obligations or interests in transportation equipment, wholly or in part within the United States of
America, and the right to receive determinated portions or related income.
12) Loans that are secured by pledge or securities eligible for investment.
13) Purchase money mortgages or like securities received upon the sale or exchange of real property acquired.
14) Secured mortgages or mortgage participation, pass-through, conventional pass-through, trust certificate, or other
similar securities with restrictions.
15) Land and buildings on such land used or acquired for use as a fund's office for the convenient transaction of its
own business with restrictions.
16) Real property and equipment acquired under various circumstances.
I
I
I
I
I
In addition, large retirement systems have restrictions as to the concentration of investments in corporations and
equities and additional stipulations exisl related to decreases in a fund's asset value.
I
As of December 31,2007 the investments of the Government were:
I
Maturities in Years
Type of Investment Fair Value 4-12 Months 1-5 Years 6 - 10 Years
U.S. Government securities $ 30,196,758 $ 12,126,128 $ 13,746,343 $ 4,324,286
Corporate securities 9,985,444 1,803,733 3,421,348 4,760,364
$ 13,929.861 $ 17,167,691 $ 9,084,650
Equity securities 48,318,153
Georgia Fund I 152,523,9 [7
Georgia Extended Asset Pool 11,845,377
Total investments $ 252,869,649
I
I
I
The exposure of the Government's debt securities to credit quality risk is indicated below (as rated by Slandard &
Poor's):
Type of investment Fair Value AAA AA AA- A+ A
U.S. Government securities
Corporate securities
$ 30,196,758 $
9,985,444
$ 40,182,202 $
$
$
$
$
I
1,538,923
1,538,923 $
[,939,132
1,939,132 $
3,394,513
3,394,513 $
1,525,165
1,525,165 $
1,587,711
1,587,711
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. Georgia Fund 1 operates in a manner consistent with Rule 13-7 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
regulatory oversight of the pool is assigned to the State of Georgia's Office of Treasury and Fiscal Services. The
pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining
principal ($ 1.00 per share value). Net asset value is calculated weekly' to ensure stability. The pool distributes
earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on
$1.00 per share_ As a public fund, Georgia Fund I is exempt from any disclosure of custodial credit risk.
I
I
53
I
AUGUSTA, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31, 2007
Note 3 - Detailed notes on all funds (Continued)
I
As of December 31, 2007, the Authority had no investments.
B. Receivables
Property taxes are administered on a calendar year basis subject to the following dates:
I
Lien date
Levy date
Collection period
Due date
January 1
July 26
August 31 - November 15
November 15
I
I
Receivables at December 31, 2007, including the applicable allowances for uncollectible accounts, consist of the
following:
Special Special Special
Fire Sales Tax Sales Tax Sales Tax
General Protection Phase III Phase rv Phase V
Receivables:
Taxes $ 3,049,219 456,894 $ $ $
Accounts 7,400,047 19,603 21,275 2,839,707
Interest ' 106,476
Note
Intergovernmental 40,325
Gross receivables 10,489,591 456,894 126,079 21,275 2,839,107
Less: allowance for
uncollectibles (774.696) (21,091)
Net total receivables $ 9,714,895 $ 435,803 $ 126,079 $ 21,275 $ 2,839,707
Nonmajor Nonmajof
Water and Bush Governmental Enterprise Adjustments to Statement of
Sewer Field Funds Funds Total Full Accrual Net Assets
Receivahles (Cout.):
Taxes $ $ $ 938,809 $ $ 4,444,922 $ 4,444,922
Accounts 10,402,882 968,391 1,858,077 4,578,238 28,088,220 4,264,434 32,352,654
Interest 516,098 121,006 8,024 751,604 751,604
Note 3,785,609 3.785,609 3,785,609
Intergovernmental 789,351 829,676 829,676
Gross receivables 10,918,980 1,757,742 6,703,50 I 4,586,262 37,900,031 4,264,434 42,164,465
Less: allowance for
uncollectibles (270,500) (100,000) (195,775) (851,744) (2,213,806) (2,213 ,806)
Net total receivables $ 10,648,480 $ 1,657,742 $ 6,507,726 $ 3,734,518 $ 35,686,225 4,264,434 $ 39,950,659
I
I
I
I
I
I
Adjustments to full accrual relate to internal service funds. Internal service funds predominately serve the
governmental funds. Accordingly, the internal service funds receivables balances are included in governmental
activities on the accompanying government-wide financial statement-
I
For the above-mentioned long-term notes receivable, the bank maintains records that are not recorded in the
governmental fund financial statements. These loans represent funds received through HUD's Housing Rehabilitation
Program. The Housing Rehabilitation Program is designed to fund improvements to homes owned and occupied by
persons in low to moderate-income ranges. In 1993, loans were also made to owners of rental units under a deferred
loan arrangement as part of the Housing Rehabilitation Program. Loans made for these projects vary as to amounts and
interest rates based on the level of income of the owner/occupiers. In the governmental fund financial statements,
repayments of these loans are recorded as other revenue in the Housing and Neighborhood Development Fund, a
nonmajor special revenue fund.
I
I
Finally, the Fiduciary fund financial statements include $21,448,784 in taxes receivable recorded in agency funds.
This amount is excluded from the foregoing schedule and represents the amount of receivables billed on behalf of other
governments in an agency relationship: Also, included in the Fiduciary fund financial statements and excluded from
the foregoing schedule are interest receivable totaling $474,959 and accounts receivable totaling $572,482 in the
pension trust fund.
I
I
I
55
I AUGUST A, GEORGIA
Notes to Financial Statements - Continued
I Year Ended December 31, 2007
I Note 3 - Detailed notes on aU funds (Continued)
I Depreciation expense was charged to functions as follows:
Governmental activities
General government $ 1,038,675
Judicial l,319,11l
I Public safety 3,449,771
Public works 3,176,514
Health and welfare 84,572
I Culture and Recreation 1,312,903
Housing and development 15,750
Risk 1,722
Fleet 41,240
I $ 10 ,440 ,25 8
Balance Balance
I December 3 I, December 3 I,
2006 Additions Disposals 2007
Water and Sewer
Capital assets, not being depreciated:
I Land $ 7,881,054 $ 111,306 $ $ 7,992,360
Construction in progress 104,610,664 25,490,389 130,10 1 ,053
Total capital assets not being depreciated 112,491,718 25,601,695 138,093,413
I Other capital assets:
Buildings 39,047,673 37,327 39,085,000
Vehicles 5,800,848 187,763 (50,467) 5,938,144
Machinery and equipment 6,576,376 206,487 (10,883) 6,771,980
I Fumiture and fixtures 440,474 440,474
Other capital 5,149,070 93,402 5,242,472
Water and sewerage systems 329,145,20 I 46,161,183 375,306,384
Contributed water and sewerage systems 10,563,423 10,563,423
I Total capital assets being depreciated 396,723,065 46,686,162 (61,350) 443,347,877
Less accumulated depreciation for:
I Buildings (24,309,077) (1,190,083) (25,499,160)
V chicles (5,069,506) (340,252) 50,467 (5,359,291)
Machinery and equipment (5,902,829) (30 1,756) 10,883 (6,193,702)
Fumiture and fixtures (439,943) (531) (440,474)
I Other capital (3,119,271) (1,032,630) (4,151,901)
Water and sewerage systems (107,969,390) (9,989,592) ( 117,958,982)
Contributed water and sewerage systems (6,881,280) (231,374) (7, 112,654)
I Total accumulated depreciation (153,691,296) (13,086,218) 61,350 (166,716,164)
Other capital assets being depreciated, net 243,031,769 33,599,944 276,631,713
I Water and sewer capital assets, net $ 355,523,487 $ 59,201,639 $ - $ 414,725,126
I
I
I 57
I AUGUST A, GEORGIA
Notes to Financial Statements - Continued
I Year Ended December 31, 2007
I Note 3 - Detailed notes on all funds (Continued)
I Balance Balance
December 3 I, December 31,
2006 Additions Disposals 2007
I Nonmaior enterprise funds
Capital assets, not being depreciated
Land $ 2,628,862 $ 66,007 $ $ 2,694,869
Construction in process 1,509,799 1,509,799
I Total capital assets not being depreciated 2,628,862 1,575,806 4,204,668
Other capital assets:
I Site and building improvements 2,568,583 12,636 2,581,219
Landfill CellllC 9,399,876 9,399,876
Landfill CelllllC 5,616,841 5,616,841
Buildings 3,164,904 3,164,904
I Vehicles 6,581,015 399,637 (238,273 ) 6,742,379
Machinery and equipment 5,593,596 7,800 (868,850) 4,732,546
Infrastructure 1,485,833 1,485,833
IT - hardware 75,338 75,338
I IT - software 469,742 13,281 483,023
Total capital assets being depreciated 34,955,728 433,354 (1,107,123) 34,281,959
Less accumulated depreciation for:
I Site and building improvements (1,330,553 ) (122,089) (1,452,642)
Landfill CellllC (9,399,876) (9,399,876)
Landfill Cell IIIC (31,205) (374,455) (405,660)
I Buildings (1,400,489) (100,958) (1,501,447)
Vehicles (3,524,199) (854,237) 228,589 (4,149,847)
Machinery and equipment (1,390,431) (784,811 ) 308,1 72 (1,867,070)
Infrastructure (741,014) (49,528) (790,542)
I IT - hardware (68,147) (2,696) (70,843)
IT - software (445,778) ( 12,656) (458,434)
Total accumulated depreciation ( 18,331 ,692) (2,301,430) 536,761 (20,096,361 )
I Other capital assets, net 16,624,036 (1,868,076) (570,362) 14,185,598
Nonmajor enterprise funds, net 19,252,898 (292,270) (570,362) 18,390,266
I Business-type activities capital assets, net $ 420,611,468 $ 67,410,938 $ (883,727) $ 487,138,679
Depreciation expense was charged to non-major enterprise funds as follows:
I Waste management and garbage collection $ 1,457,865
Transit 715,842
Daniel Field Airport 92,555
I Municipal golf course 35,168
$ 2,301,430
I Construction costs include, among other things, capitalized interest costs and engineering fees. Capitalized net interest
costs were approximately $264,000 for the year ended December 31,2007.
I
I 59
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 3 - Detailed notes on all funds (Continued)
I
Downtown Development Authority
Capital asset activity for the year ended December 31,2007 was as follows:
December 31, December 31,
2006 Additions Deletions 2007
Capital assets:
Port Royal parking deck $ 2,600,000 $ - $ $ 2,600,000
Riverfront parking deck 3,816,000 3,816,000
Clock 41,393 41,393
Furniture and equipment 7,920 7,920
Total capital assets 6,465,313 6,465,313
Less accumulated depreciation for:
Port Royal parking deck (1,105,000) (65,000) (1,170,000)
Riverfront parking deck (1,526,400) (95,400) ( 1,621,800)
Clock (11,571) (4,139) (15,710)
Furniture and equipment (1,378) (1,393) (2,771)
Total accumulated depreciation (2,644,349) (165,932) (2,810,281 )
Capital assets, net 3,820,964 (165,932) 3,655,032
Related debt (2,375,000) 575,000 (1,800,000)
Capital assets, net of related debt $ 1,445,964 $ (165,932) $ 575,000 $ 1,855,032
I
I
I
I
I
Depreciation expense for the year ended December 31, 2007 was $165,932.
I
D. Accounts payable and accrued liabilities
Payables for the Government at December 31, 2007 were as follows:
I
I
Governmental Enterprise Adjustments Statement of
Funds Funds Total To Full Accrual Net Assets
Payables:
Accounts payable $ 8,743,488 $ 15,156,650 $ 23,900,138 $ 615,168 $ 24,515,306
Accrued interest 5,366,603 5,366,603 478,333 5,844,936
Accrued salaries and vacation 4,576,050 1,534,257 6,110,307 (725,934 ) 5,384,373
Other accrued liabilities 1,419,861 250,099 1,669,960 2,611,804 4,281,764
Total accounts payable and
accrued liabilities $ 14,739,399 $ 22,307,609 $ 37,047,008 $ 2,979,371 $ 40,026,379
I
I
Adjustments to full-accrual basis include $478,333 related to accrued interest on governmental long-term debt,
$2,611,804 related to the current year unfunded health insurance contribution for retirees, $770,930 relating to the
reclassification of accrued vacation from accrued liabilities to liabilities due within one year, and account payable and
accrued salaries and vacation of$615,168 and $44,996, respectively, related to internal service funds. Internal service
funds predominately serve the governmental funds_ Accordingly, the accounts payable and accrued liability balances
for the internal service funds are included in the governmental activities on the accompanying government-wide
financial statement.
I.
I
I
I
61
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 3 - Detailed notes on all funds and account groups (Continued)
I
In 2007, the Housing and Neighborhood Development Section 108 loan was defeased by the creation of an
irrevocable trust fund. Funds received from repayment of a loan to a local hotel were used to purchase V_So
Government securities that were placed in a trust fund. The investments and fixed earnings from the investment are
sufficient to fully service the defeased debt until the debt matures. For financial reporting purposes, the debt is
considered defeased and, therefore, not included as a liability in the government-wide financial statements Funds.
As of December 31, 2007, the amount of defeased debt outstanding but removed from the governmental debt is
$2,500,000.
I
I
Revenue bonds
Augusta Port Authority:
$1,200,000 1993 Augusta Port Authority Bonds - due in monthly principal and interest
installments of$9,773 through April 2008, bearing interest at 5.45%.
$ 46,053
I
General obligation bonds
$44,000,0002006 sales tax bonds - due in annual installments of$8, 125,000 to $9,505,000, plus
interest at 4% through December 2011.
$ 35,875,000
I
Add: Bond issue premiums
593,229
$ 36,468,229
I
Certificates of Participation
GMA Leases Fund:
$16,888,000 Certificates of Participation - principal due in a lump sum payment on June 1, 2028.
Interest only payments are due annually at a rate of 4.75%, through June 1,2028_
Original issue amount
Original issue discount
$ 16,888,000
(718,644)
I
Total
Revenue Bonds General Obligation Bonds
Year ending
December 3 1 Principal Interest Principal Interest
2008 $ 46,053 $ 659 $ 8,450,000 $ 1,266,000
2009 8,785,000 921,300
2010 9,135,000 562,900
2011 9,505,000 190,100
2012
2013-2017
2018 - 2022
2023 - 2027
2028 - 2032
$ 46,053 $ 659 $ 35,875,000 $ 2,940,300
$ 16,169,356
I
I
I
I
I
I
I
I
63
I
AUGUSTA, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31, 2007
I
Note 3 - Detailed notes on all funds (Continued)
I
Augusta Regional Airport at Bush Field
$8,990,000 2005A Airport Passenger Facility Charge and General Revenue Bonds - due in annual
interest only payments of $462,985 through January 2030_ Principal due in annual installments
beginning January 2031 ranging from $540,000 to $2,275,000 plus interest of 5.15% through
January 2035. $
I
$4,415,000 2005B Airport Passenger Facility Charge and General Revenue Bonds - due in annual
interest only payments of$236,203 through January 2024. Principal due in annual installments
beginning January 2025 ranging from $1,355,000 to $1,505,000 through January 2027 plus
interest of 5.35% and final payment of $130,000 plus interest of 5.35% due January 2028.
I
I
$6,200,000 2005C Airport Passenger Facility Charge and General Revenue Bonds - due in annual
interest only payments of$337,900 through January 2027. Principal due in annual installments
beginning January 2028 through January 2031 ranging from $1,455,000 10 $1,760,000 plus
interest of 5.45% through January 2030 and final payment of$I,315,000 plus interest of 5.45%
due January 203 1.
I
Total revenue bonds - Bush Field
I
Waste Management:
$11,475,000 Solid Waste Management Authority of Augusta Revenue Bonds, Series 2004 - due
in annual installments of $170,000 to $1,700,000, starting December 1,2005 through December 1,
2019, plus interest of3.0% to 4.0% payable semi-annually on June 1 and December 1, beginning
December 1, 2004
Add: Bond issue premium
Total revenue bonds - Waste Management
I
I
Total revenue bonds
I
Notes payable
Water and Sewer Fund:
$5,143,272 State revolving loan - due in quarterly principal and interest installments of
$94,668, bearing interest at 4%, through May 2016.
I
$6,553,217 State revolving loan - principal and interest due in quarterly installments of
$119,392, bearing interest at 4%, through July 2019.
Total
I
I
I
I
I
65
8,990,000
4,415,000
6,200,000
$ 19,605,000
$ 7,000,000
160,757
7,160,757
$ 490,209,032
$ 2,717,221
4,384,940
$
7,102,161
I
AUGUSTA, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31, 2007
I
Note 3 - Detailed notes on all funds (Continued)
I
be used for improvements to the Utilities' water and sewer system. No difference resulted in the current refunding
between the reacquisition price and the net carrying amount of the old debt. The Government completed the refunding
to obtain an economic gain (difference between present values of the old and new debt service payments) of
approximately $792,000.
I
Series 2000 Water and Sewerage Revenue Bonds
During 2000, the Government issued $97,080,000 in Series 2000 Water and Sewerage Revenue Bonds for the purpose
of financing the costs of making additions, extensions and improvements to the Utilities' water and sewer system.
I
Series 1996 Water and Sewerage Revenue Bonds
During 1996, the Government issued $66,600,000 in Series 1996 Water and Sewerage 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 Sewerage Revenue Bonds and the former Richmond County's Series 1987 and 1991 Water and
Sewer Revenue Bonds. Proceeds of $19,400,000 plus an additional $4,900,000 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. The advance refunding during 1996 resulted in a difference between the reacquisition price and the net
carrying amount of the old debt of approximately $2,500,000. 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
$8,600,000 and produced an economic gain of approximately $260,000.
I
I
I
I
Series 1997 Water and Sewerage Revenue Bonds
In 1997, the Government issued $5,900,000 in Series 1997 Water and Sewerage 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 Sewerage Revenue Bond. Proceeds of approximately $5,600,000 plus an additional $900,000 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. 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 $2,100,000 and will produce an economic gain of approximately $110,000.
I
I
I
As of December 31, 2007, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund
is $1,400,000_
I
Department of Health
The Department of Health's long-term liabilities represent compensated absences and an obligation under capital lease.
The debt for compensated absences was $400,679 and the debt for the obligation under capilallease was $434,485 at
June 30, 2007.
I
I
Augusta Canal Authority
Notes payable
$1,800,000 note payable to a bank due in five annual installments of $360,000, beginning June 2003. The note bears
interest at a variable rate equal to 75% of the lender's Prime Rate, which was 6.19% at December 31, 2006, and is paid
semi-annually. The note is collateralized by all equipment, furniture, fixtures, and other personal property owned by the
Authority and is used or to be used in connection with the Visitors and Interpretive Center; property leased to Standard
Textile Augusta, Inc. is not included in the collateraL The principal and interest balance of the note was paid during the
year ended December 31,2007.
I
I
67
I
AUGUST A, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
Note 3 - Detailed notes on all funds (Continued)
I
I
The Government is lessor of terminal space, land and buildings at Augusta Regional Airport at Bush Field and Daniel
Field under various operating leases. Revenues and related expenses for Augusta Regional Airport at Bush Field are
recorded in the Augusta Regional Airport at Bush Field Fund while the revenue and related expenses for Daniel Field
are recorded in the Daniel Field Airport Fund. Some of the leases provide for additional payments based on usage
activity in addition to non-cancelable amounts of fixed rates.
I
During 2007, rental income totaled approximately $2,300,000 and $80,650 in the Augusta Regional Airport at Bush
Field and Daniel Field Airport Funds, respectively_
The assets acquired through capital leases as of December 31, 2007 are as follows:
I
Governmental Business-type
Activities Activities
Vehic\es $ 3,010,252 $ 926,50 I
Machinery and equipment 396,414 3,006,841
3,406,666 3,933,342
Less: accumulated depreciation (1,064,716) (989,647)
Carrying value $ 2,341,950 $ 2,943,695
I
I
I
I
I
I
I
I
I
I
I
I
69
I
AUGUSTA, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 3 - Detailed notes on all funds (Continued)
I
Augusta Canal Authority
The following is a summary of long-term debt transactions for Augusla Canal Authority of the year ended December
31,2007:
Beginning Ending Current
Balances Additions Reductions Balances Portion
Governmental activities:
Notes payable:
Notes payable $ 360,000 $ $ 360,000 $ $
Total notes payable 360,000 360,000
Other liabilities:
Compensated absences 19,408 14,901 8,153 26,156 26,156
Total other liabilities 19,408 14,901 8,153 26,156 26,156
Governmental activities
long-term liabilities $ 379,408 $ 14,901 $ 368,153 $ 26,156 $ 26,156
I
I
I
I
Downtown Development Authority
Long-term debt activity for the year ended December 3 1, 2007 was as follows:
I
General Long-term Debt
Development
Authority
Bonds,
Series 2003
I
Debt outstanding at December 31, 2006
$ 2,375,000
I
Principal payments
(575,000)
Debt outstanding at December 31, 2007
$
1,800,000
I
Current portion
$
585,000
I
J. Due Fromffo Other Funds
The composition of interfund balances as of December 31, 2007 are as follows:
Due to Other Funds
Due from other Water and Nonmajor Nonmajor Internal Funds
Fuods Sewer Fund Bush Field Governmental Enterprise Service Total
General Fund $ 572,386 $ 2,182,298 $ 541,174 $ 1,997 $ 128,078 $ 3,425,933
Nonmajor
Governmental 179,433 179,433
Total interfund
Balances $ 572,3 86 $ 2,182,298 $ 720,607 $ 1,997 $ 128,078 $ 3,605,366
I
I
I
Amounts were due to other funds primarily for timing of payments from agency funds_
I
I
71
I
AUGUST A, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31,2007
I
Note 4 - Other information (Continued)
B. Contingent liabilities
I
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.
I
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, 2007, 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
C. Contracts and commitments
I
Augusta-Richmond County Coliseum Authoritv
The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt
to the extent of the 50% Hotel-Motel Excise Tax and 30% of the Beer Tax collected.
I
D. Richmond County Public Facilities, Inc.
I
The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code
Section 50 I (c )(3 )The purpose of this nonprofit organization is to construct and maintain buildings and equipment to be
leased by the Government, the Department of Family and Children Services, and the Richmond County Board of
Education. The Richmond County Public Facilities, Inc_ is part of the reporting entity of Augusta, Georgia, due to the
degree of control the Government has over the Board of Directors of Richmond County Public Facilities, Inc.
I
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
financial statements of the Government in the governmental activities. 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.
I
Note 5 - Pension plans
A. Plan descriptions, contribution information and funding policies
I
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.
I
I
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
I
73
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2007
Note 5 - Pension plans (Continued)
General Retirement Plan
Employees hired after March 1, 1949 and before March 1, 1987, whose age did not exceed thirty-five years at the time
of their employment and are not participants of the 1977 Plan are covered under the General Retirement Plan_ Pension
benefits vest after an employee is 45 years of age and has 15 years of full-time employment. An employee may retire
at age 60 with 25 years of service and receive annual pension benefits equal to 2% of the employee's average salary
earned during the last three years of employment, multiplied by the number of full-time years of employment. The
Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments
are established by Government ordinance. All full-time employees hired before July 1, 1980, must contribute 8% of
gross earnings to the Plan, with the Government contributing remaining amounts sufficient to provide future pensions.
This is a closed retirement plan (new employees may not participate in the Plan). The General Retirement Plan does
not issue a stand-alone financial statement report.
Employer contributions are determined as part of the January 1, 2006 actuarial valuation 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 as a level percentage of payrolL When the actuarial value of assets exceeds 150% of the present
value of accrued benefits, the Official Code of Georgia Annotated states that there is no minimum required
contribution. The significant actuarial assumptions used to compute pension contribution requirements are the same as
those used to determine the standard measure of the pension obligation_
The actuarial assumptions included (a) an 8% investment rate of return, (b) projected future salary adjustment of 5.5%,
and (c) a post retirement benefit increase of 4%. An inflation component of 4% is included. The actuarial value of
plan assets is determined with a smoothing method that uses the sum of the actuarial value of assets on the preceding
valuation date, net contributions and disbursements during the preceding year, interest on the items calculated using the
valuation investment return assumption, and 20% of the difference between the market value of assets on the current
valuation date and the sum of the first three items.
Agent multiple-employer pension plan
Georgia Municipal Employees Benefit System (GMEBS)
Employees hired after March 1, 1987 and before consolidation on December 31,1996, 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 1J.% 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 contribute 3.5% of their gross earnings to the Plan_ In
addition, the Government must provide annual contributions sufficient to satisfy the actuarially determined
contribution requirements as amended by GMEBS_ The GMEBS Retirement Fund issues a publicly available financial
report that includes 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.
The employer contributions are determined as part of a March 1, 2007 actuarial valuation using the projected unit
credit actuarial cost method. The actuarial value of plan assets are computed with a smoothing method that uses a roll
forward of prior year's actuarial value with contributions, disbursements, and expended retum of investments, plus
10% of investment gains (losses) during 10 prior years. 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
75
I
AUGUST A, GEORGIA
I
Notes to Financial Statements - Continued
I
Year Ended December 31, 2007
I
Note 5 - Pension plans (Continued)
Funding policy. The Government intends to continue to fund the OPEB on an actual pay-as-you-go expense.
I
Annual OPEB cost and net OPEB obligation. The Government's annual other post-relirement benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed 30 years. The following table shows the components of the Government's
annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Government's net
OPEB obligation:
I
I
Components of net OPEB obligation
Annual required contribulion
Interest on net OPEB obligation
Adjustment on annual required contribution
Annual OPEB cost (expense)
Contributions made or accrued
Increase in net obligation
$ 4,374,442
I
4,374,442
(1,762,638)
$ 2,611,804
I
Net OPEB obligation (beginning of year)
Net OPEB obligation (end of year)
$
$ 2,611,804
I
The Government's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2007 is as follows:
I
fiscal Year Ended
Annual OPEB Cost
Percentage of OPEB Cost
Net OPEB Obligation
12/31/2007
$ 4,374,442
40.3%
$ 2,611,804
I
Funded status and funding progress. As of January 1, 2007, the most recent actuarial valuation date, the plan was
0% funded. The actuarial accrued liability for benefits was $62,353,000 and the actuarial value of assets was $0,
resulting in an unfunded actuarial accrued liability (VAAL) of$62,353,000.
I
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding Ihe funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The Schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, present multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
I
I
I
Actuarial metbods and assumptions. Projections of benefits for financial reporting purposes are based on
substantive plan (the plan as understood by the employer and the plan members) and includes the type of benefits
provided at the time of each valuation and the historical pattern of sharing the benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations_
I
In the January 1, 2007 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
assumptions include a 5.5% investment rate of return (net of administrative expenses), based on the employer's own
investments and used to discount liabilities at the valuation date, and an annual healthcare cost trend rate of 8%
initially, reduced by decrements to an ultimate rate of 5% after three years. The VAAL is being amortized as a level
percentage of payroll on an open basis_ The remaining amortization period at January 1,2007 was 30 years.
I
I
77
I
AUGUST A, GEORGIA
I Notes to Financial Statements - Continued
I Year Ended December 31,2007
Note 5 - Pension plans (Continued)
I Fiscal Annual Actual Percentage of Net Pension
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
I 2005
1945 Plan o I/O 1/2005 $ 361,352 $ 361,352 100% $ (9)
1977 Plan o I/O 1/2005 1,036,647 1,087,175 105% (256,711)
General Pension Plan o I/O 1/2005 24,752 24,752 100%
I Policemen's Pension Plan o I/O 1/2005 72,141 72,141 100%
Firemen's Pension Plan o I/O 1/2005 186,522 186,522 100%
City Employees' Pension
I Plan o I/O 1/2005 281,140 281,140 100%
General Retirement Plan
(City 1949) o I/O 1/2005 100%
GMEBS 01/01/2005 213,565 213 ,565 100%
I Fiscal Annual Actual Percentage of Net Pension
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
I 2006
1945 Plan o I/O 1/2006 $ 331,330 $ 360,238 109% $ (28,917)
1977 Plan o I/O 1/2006 974,653 1,035,126 106% (307,239)
I General Pension Plan o I/O 1/2006 13,219 13,219 100%
Policemen's Pension Plan o I/O 1/2006 50,480 50,480 100%
Firemen's Pension Plan 01/01/2006 179,202 179,202 100%
City Employees' Pension
I Plan o I/O 1/2006 297,368 297,368 100%
General Retirement Plan
(City 1949) 01/01/2006 138,517 138,517 100%
GMEBS 01/01/2006 271,945 271,945 100%
I Fiscal Annual Actual Percentage of Net Pension
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
I 2007
1945 Plan 01/0 I/2007 $ 214,686 $ 220,377 103% $ (34,608)
1977 Plan 01/01/2007 714,806 934,962 131% (367,712)
I General Pension Plan o I/O I/2007 13 ,219 13 ,219 100%
Policemen's Pension Plan 01/0 I/2007 50,480 50,480 100%
Firemen's Pension Plan 01/01/2007 179,202 179,202 100%
City Employees' Pension
I Plan o I/O 1/2007 297,368 297,368 100%
General Retirement Plan
(City 1949) o I/O 1/2007 100%
GMEBS o I/O 1/2007 271,945 271,945 100%
I Note 6 - Joint venture and related organization
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 RDC). The
CSRA RDC is a public organization that assists local governments in planning for common needs, cooperating for mutual
I 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_CG_A.) ~58-8-34 with annual dues based on a per capita amount. During the year ended
I 79
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2007
Note 9 - Conduit debt obligations (Continued)
On December 14, 2000, the Government issued Special Facility Airport Revenue Bonds in the amount of $3,110,000 which
qualifies as a conduit debt obligation. The bonds are payable solely from revenues pledged under a lease agreement. As of
December 31, 2007, the amount outstanding on the Special FacilityAirport Revenue Bonds is $3,110,000.
A - Debt service requirements to maturity for bonds payable
The following requirements to amortize debt outstanding as of December J I, 2007, including interest are as follows:
Revenue Bonds
Principal Interest
2008 $ $ 152,390
2009 152,390
2010 3,1l0,000 152,390
$ 3,110,000 $ 457,170
Note 10 - Prior period adjustments - Department of Health
For the component unit Department of Health, prior period adjustments were made to two beginning fund balances to
correct variances in prior year accruals as required by Georgia DHR. The error resulted in an understatement of net assets
of$869. During the year ended June 30, 2006, the error was corrected.
Note ll- Long-term obligation for Water and Sewer
Swap agreement
Utilities entered into an interest rate swap transaction in July 2006, which hedges an aggregate principal amount of
$160 million, Series 2004 Water and Sewerage Revenue Bonds. The notional amount is $160 million, maturing over
33 years from the effective date of the interest rate swap agreement of June 1,2006. The interest rate swap agreement
requires Augusta, Georgia to pay to Deutsche Bank AG, the Bond Market Association municipal swap index (BMA)
(tax exempt variable rate) and receive in return from Deutsche Bank 75.02% of USDA LIB OR rate.
During June 2007, Utilities elected to terminate the swap agreement, which resulted in a termination payment of$L2
million received by the Utilities during 2007 and netted against loss from early termination of swap agreement.
Swaption agreement
The Utilities entered into a swaption contract that provided the Utilities a nonrefundable premium of $2,121,000
payable in an up-front payment of $121,000 and annual option premium payments of $500,000 payable on October I,
2004,2005,2006 and 2007. This nonrefundable premium has been deferred and is being amortized over the life of the
agreement. As a synthetic refunding of its Series 1996A and 1997 bonds, this payment represents the risk-adjusted,
present-value savings of a refunding as of October 1,2007, without issuing refunding bonds at July 2004. The
swaption gave the counterparty the option to make the Utilities enter into a floating-to-ftxed interest rate swap.
The swaption was entered into in July 2004. The $2,121,000 payment was based on a notional amount of $62,475,000.
The counterpartyexercised the agreement on October 1, 2006 - the Utilities' Series 1996A and 1997 bonds' first call
date. The interest rate swap commenced on October 1, 2006, and effectively ftxes the interest rate at 4_54% to the
counterparty. In return the Utilities receive variable interest from the counterparty at a rate of 67% of the I-month
LIBOR.
During December 2007, the Utilities elected to terminate the swap agreement, which resulted in a termination payment
of$6.7 million paid by the Utilities during 2007 and recorded as a loss from early termination of swap agreement.
Additionally, the remaining nonrefundable premium of $2.1 million was netted against the loss from early termination
of swap agreement.
81
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
PENSION PLAN REQUIRED SUPPLEMENT ARY INFORMATION
83
I
AUGUSTA, GEORGIA
I Defined Benefit Pension Trusts - Required Supplementary Information - Continued
(Unaudited)
I December 31, 2007
A. Schedules of funding progress (Continued)
I Actuarial (Funded) (FAAL)
Accrued Unfunded UAAL as
Actuarial Actuarial Liability AAL A%of
Valuation Value of AAL (F AAL) Funded Covered Covered
I Date Assets Entry Age UAAL Ratio Payroll Payroll
Firemen's Pension Plan
12/3 1/95 $ - $ 1,296,843 $ 1,296,843 - % $ - %
1213 1/96 1,202,831 1,202,831
I 12/31/97 1,507,50 I 1,507,501
12/31/98 1,479,472 1,479,472
12/3 1/99 1,276,044 1,276,044
12/31/00 1,258,550 1,258,550
I 12/31/0 I 1,345,133 1,345,133
12/31/02 1,204,513 1,204,513
12/3 1/03 1,110,698 l,llO,698
12/31/04 1,009,371 1,009,371
I 12/31/05 1,102,891 1,102,891
12/3 1/06 975,046 975,046
12/31/07 788,489 788,489
City Employees' Pension Plan
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 12/3 1/99 2,060,50 I 2,060,50 I
12/3 1/00 1,911,904 1,911 ,904
12/31/0 I 1,914,347 1,914,347
12/31/02 2,063,450 2,063,450
I 12/31/03 1,931,942 1,931,942
12/3 1/04 1,789,910 1,789,910
12131/05 1,999,996 1,999,996
12/3 1/06 1,710,832 1,710,832
12/31/07 1,412,498 1,412,498
I General Retirement Plan (City 1949)
01/0 1/94 $ 49,875,350 $ 36,456,408 $ (13,418,942) 137 % $ 7,243,580 (185) %
01/01/95 47,710,074 39,699,516 (8,0 I 0,558) 120 7,053,091 (114)
01/01/96 56,004,033 41,587,715 (14,416,318) 135 6,345,073 (227)
I 01/01/97 59,413,476 42,712,240 (16,701,236) 139 5,165,172 (323)
01/0 1/99 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)
01/01/0 I 70,721,724 54,824,779 (15,896,945) 129 5,237,225 (304)
I 01/0 1/02 66,542,266 52,471,765 (14,070,501) 127 5,473,137 (257)
01/01/03 59,091,990 53,688,662 (5,403,328) 110 5,774,707 (94)
01/01/04 65,345,259 58,984,857 (6,360,402) III 5,774,708 (110)
01/01/05 66,064,583 65,169,939 (894,644) 101 5,714,554 (16)
I 01/01/06 67,859,472 68,750,121 890,649 99 5,751,403 15
01/01/07 72,348,604 71,720,302 (628,302) 101 6,082,087 (10)
GMEBS
03/01/95 $ 3,351,907 $ 3,315,936 $ (35,971) 101 % $ 10,657,439 (.3) %
I 03/01/96 3,731, ll8 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
03/01/00 5,559,655 6,422,50 I 862,846 86 7,719,739 IU
I 03/01/02 6,308,424 6,887,424 579,000 91 6,913,560 8.4
03/01/03 6,477,885 7,146,314 668,429 90 6,988,509 9-6
03/01/04 6,913,410 7,553,911 640,501 91 6,637,655 9.6
03/01/05 7,372,466 8,036,105 663,639 92 6,641,379 10.0
I 03/01/06 8,023,690 9,161,600 1,137,910 88 6,985,599 16.3
03/01/07 8,566,194 9,877,759 1,311,565 87 6,858,000 19.1
I 85
I
I
AUGUST A, GEORGIA
I
Defined Benefit Pension Trusts - Required Supplementary Information - Continued
(U naudited)
December 31, 2007
I
I
B. Schedules of employer contributions (Continued)
Fiscal Annual Required Percentage
Year Contribution Contributed
Citv Emplovees' Pension Plan
1997 $ 409,881 100 %
1998 331,619 100
1999 348,792 100
2000 302,169 100
2001 263,080 100
2002 299,512 100
2003 285,177 100
2004 249,565 100
2005 281,140 100
2006 297,368 100
2007 297,368 100
General Retiremenl Plan (Citv 1949)
1997 $ %
1998
1999
2000
2001
2002
2003
2004
2005
2006 138,517 100
2007
GMEBS
1996 $ 187,548 100 %
1997 197,167 100
1998 214,536 100
1999 191,385 100
2000 204,576 100
2001 192,622 100
2002 168,316 100
2003 181,834 100
2004 200,432 100
2005 213,565 100
2006 271,945 100
2007 271,945 100
C. Notes to required supplementary information
I
I
I
I
I
I
I
I
I
I
1945 Plan
1977 Plan
I
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
lnflation
111107
Attained age aggregate
Level percentage of payroll
Average future working lifetime
Market value plus receivables
1/1/07
Attained age aggregate
Level of percentage of payroll
Average future working lifetime
Market value plus receivables
I
8_0%
5.0%
5.0%
5.0%
8.0%
5.5%
5.0%
5.0%
I
I
87
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMBINING AND INDIVIDUAL
FUND STATEMENTS
89
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
NONMAJOR GOVERNMENTAL FUNDS
91
I
I
I
I
Permanent Total Nonmajor
I Fund Governmental
Perpetual Care - II Funds
I $ 201,438 $ 23,888,154
847,638
I 1,837,635
121,006
3,701,447
I 338,625 338,625
179,433
$ 540,063 $ 30,913,938
I
$ $ 1,267,872
I 720,607
198,007
17,508
4,596,080
I 6,800,074
I 1,420,820
1,596,460
540,063 21,096,584
I 540,063 24,113,864
$ 540,063 $ 30,913,938
I
I
I
I
I
I 93
I
I
I
I HoteVMotel
Tax and Housing and Urban Federal State
Special Promotion! Neighborhood Development Drug Drug
Assessmen t Tourism Development Action Grant Fund Fund
I $ 355,596 $ 318,558 $ 373,446 $ 17,932 $ 632,038 $ 1,108,825
I 202,004 4,940 143,350 1,900 500
3,544,387 157,060
179,433
$ 557,600 $ 323,498 $ 4,240,616 $ 176,892 $ 632,038 $ 1,109,325
I
$ 235,482 $ 323,497 $ 196,389 $ $ 50,028 $ 27,489
I 338,862
9,417 38,864
147,890 3,544,386
I 392,789 323,497 4,118,501 50,028 27,489
I 83 1,444 61,915 150
164,728 120,671 176,892 520,095 1,081,686
164,811 122,115 176,892 582,010 1,081,836
I $ 557,600 $ 323,498 $ 4,240,616 $ 176,892 $ 632,038 $ 1,109,325
I
I
I
I
I
I
I
I 97
I
I
I
I Total Nonmajor
Wireless Perpetual Landbank Downtown Canine NPDES Special Revenue
I Phase Care - I Authority Development Forefeitures Permit Fees Funds
$ $ $ $ 75 $ $ 11,167,266
I 479,443 13,805,066
32,725 3,288,900
36,106 50,889 59,634 815 4,535 679,887
586,659 5,854,088
I 433 1,274,329
5,141,165
415,911
622,765 50,889 59,634 479,518 1,248 37,260 41,626,612
I
1,692 632,988 2,894,302
I 392,497
282,315 4,617,755
18,398 3,977,851
56,361 4,494,502
I 132,142 154,790 6,781,376
20,903 2,102,876
27,050 4,199,007
284,007 77,264 132,142 814,828 18,398 29,460,166
I 338,758 (26,375) (72,508) (335,310) 1,248 18,862 12,166,446
I 1,286,241
(13,443,944)
(399,500) 347,080 1,473,438
(399,500) 347,080 (10,684,265)
I
(60,742) (26,375) (72,508) 11,770 1,248 18,862 1,482,181
I 822,338 428,955 130,992 (134,432) 17,098 72,492 14,594,280
$ 761,596 $ $ $ ( 122,662) $ 16,076,461
402,580 58,484 $ 18,346 $ 91,354
I
I
I
I
I 103
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Emergency Telephone System Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2007
With comparative amounts for December 31,2006
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
Revenues
Use of money and property $ 1,000 $ 28,419 $ 27,419 $ 38,532
Charges for current services 2,877,270 3,039,669 162,399 2,959,077
Total revenues 2,878,270 3,068,088 189,818 3,000,309
Expenditures
Current:
General government 254,120 388 253,732 243,119
Public safety 3,567,309 3,250,805 316,504 3,005,922
Capital outlay 194,341 150,822 43,519 29,471
Total expenditures 4,015,770 3,402,015 613,755 3,278,512
Excess (deficiency) of revenues
over (under) expenditures (1,137,500) (333,927) 803,573 (278,203)
Other financing sources (uses)
Transfers in 663,000 246,241 (416,759)
Transfers (out) (25,000) 25,000
Transfers in (out) between nonrnajor funds 499,500 399,500 (100,000) 489,050
Total other financing sources (uses) 1,137,500 645,741 (491,759) 489,050
Net change in fund balances $ 311,814 $ 311,814 210,847
Fund balance (deficit) - beginning 811,769 600,922
Fund balance (deficit) - ending $ 1,123,583 $ 811,769
105
I
I
I
Augusta, Georgia
Law Enforcement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2007
With comparative amounts for December 31,2006
I
I
I
Revenues
Use of money and property
Charges for current services
Total revenues
Variance with
Final Budget-
Amended Positive 2006
Budget Actual (Negative) Actual
$ $ 34,387 $ 34,387 $ 19,138
580,934 580,934 73,933
615,321 615,321 93,071
I
I
I
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
300,000 299,961 39 17,469
125,000 122,0 I 9 2,981 24,859
425,000 421,980 3,020 42,328
(425,000) 193,341 618,341 50,743
425,000 (425,000)
425,000 (425,000)
$ 193,34 I $ 193,341 50,743
434,522 383,779
$ 627,863 $ 434,522
I
Other financing sources (uses)
Transfers in
Total other financing sources (uses)
I
Net change in fund balances
Fund balance - beginning
I Fund balance - ending
I
I
I
I
I
I
I
107
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Special Assessment Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2007
With comparative amounts for December 31, 2006
Revenues
Charges for current services
Total revenues
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
$ 1,395,000 $ 1,308,561 $ (86,439) $ 1,319,604
1,395,000 1,308,561 (86,439) 1,319,604
Expenditures
Current:
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balance - beginning
8,710 44,143 (35,433) 10,610
3,427,290 3,253,085 174,205 3,497,643
100,000 97,299 2,701 64,865
3,536,000 3,394,527 141,473 3,573,118
(2,141,000) (2,085,966) 55,034 (2,253,514)
500,000 500,000 325,104
1,641,000 1,641,000 1,641,492
2,141,000 2,141,000 1,966,596
$ 55,034 $ 55,034 (286,918 )
109,777 396,695
$ 164,811 $ 109,777
Other financing sources (uses)
Transfers in
Transfers in (out) between nonmajor funds
Total other financing sources (uses)
Net change in fund balances
Fund balance (deficit) - ending
109
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Housing and Neighborhood Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2007
With comparative amounts for December 31,2006
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
Revenues
Use of money and property $ $ $ $ 80
Intergovemmental 4,756,746 4,594,781 (161,965) 5,847,412
Other 74,484 398,409 323,925 3,058,063
Total revenues 4,831,230 4,993,190 161,960 8,905,555
Expenditures
Current:
General government 160,210 373,414 (213,204) 151,482
Housing and development 4,875,500 5,554,087 (678,587) 6,604,310
Debt service 2,500,000 (2,500,000) 126,474
Total expenditures 5,035,710 8,427,501 (3,391,791) 6,882,266
Excess (deficiency) of revenues
over (under) expenditures (204,480) (3,434,311) (3,229,831) 2,023,289
Other financing sources (uses)
Transfers (out) (15,700)
Transfers in (out) between nonmajor funds 204,480 1,029,433 824,953 245,004
Total other financing sources (uses) 204,480 1,029,433 824,953 229,304
Net change in fund balances $ (2,404,878) $ (2,404,878) 2,252,593
Fund balance - beginning 2,526,993 274,400
Fund balance - ending $ 122,115 $ 2,526,993
11(
I
I
I
Augusta, Georgia
Federal Drug Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2007
With comparative amounts for December 31, 2006
I
I
I
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
$ $ 36,191 $ 36,191 $ 127,451
727,980 793,106 65,126 454,366
727,980 829,297 10 1,317 581,817
I
Revenues
Use of money and property
Fines and forfeitures
Total revenues
I
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
687,040 703,349 (16,309)
40,940 60,673 (19,733) 311,672
727,980 764,022 (36,042) 311,672
65,275 65,275 270,145
$ 65,275 $ 65,275 270,145
516,735 246,590
$ 582,010 $ 516,735
I
Excess (deficiency) of revenues
over (under) expenditures
I
Net change in fund balances
I
Fund balance - beginning
Fund balance - ending
I
I
I
I
I
I
I
I
113
I
I
I
Augusta, Georgia
5% Victim's Crime Assistance Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2007
With comparative amounts for December 31,2006
I
I
I
Revenues
Use of money and property
Fines and forfeitures
Other
Total revenues
Variance with
Final Budget -
Amended rositive 2006
Budget Actual (Negative) Actual
$ 2,950 $ 10,281 $ 7,331 $ 8,061
333,000 331,224 (1,776) 256,818
381 381
335,950 341,886 5,936 264,879
I
I
I
Expenditures
Current:
General government
Judicial
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
10,850 7,356 3,494 10,848
325,100 274,010 51,090 281,698
335,950 281,366 54,584 292,546
60,520 60,520 (27,667)
$ 60,520 $ 60,520 (27,667)
205,689 233,356
$ 266,209 $ 205,689
I
Net change in fund balances
I
Fund balance - beginning
Fund balance - ending
I
I
I
I
I
I
I
I
115
I
I
I
I
Augusta, Georgia
Building Inspection
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
NODmajor Special Revenue Funds
Year Ended December 31, 2007
With comparative amounts for December 31,2006
I
I
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
$ 1,083,220 $ 950,913 $ (132,307) $ 1,105,713
50,961 50,961 41,492
4,138
1,083,220 1,001,874 (81,346) 1,151,343
I
Revenues
Licenses and permits
Use of money and property
Charges for current services
Total revenues
I
I
Expenditures
Current:
General government
Housing and development
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
30,740 24,768 5,972 30,744
885,480 853,977 31,503 801,473
167,000 21,029 145,971
1,083,220 899,774 183,446 832,217
lO2, lOO lO2, I 00 319,\26
(15,700)
(15,700)
$ 102,100 $ 102,100 303,426
932,664 629,238
$ 1,034,764 $ 932,664
I
I
Other financing sources (uses)
Transfers (out)
Total other financing so urces (uses)
I
Net change in fund balances
Fund balance - beginning
I
Fund balance - ending
I
I
I
I
I
I
117
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Wireless Phase Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2007
With comparative amounts for December 31, 2006
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
Revenues
Licenses and permits $ $ $ $ 891
Use of money and property 5,000 36,106 31,106 38,767
Charges for current services 446,280 586,659 140,379 678,174
Total revenues 451,280 622,765 171,485 717,832
Expenditures
Current:
General govcmment 1,280 1,692 (412) 1,283
Public safety 450,000 282,3 15 167,685 321,533
Total expenditures 451,280 284,007 167,273 322,816
Excess (deficiency) of revenues
over (under) expenditures 338,758 338,758 395,016
Other financing sources (uses)
Transfers in 399,500 (399,500)
Transfers in (out) between nonmajor funds (399,500) (399,500) (489,050)
Total other financing sources (uses) (399,500) (399,500) (489,050)
Net change in fund balances $ (60,742) $ (60,742) (94,034 )
Fund balance - beginning 822,338 916,372
Fund balance - ending $ 761,596 $ 822,338
119
I
I
I
I
Augusta, Georgia
Landbank Authority Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2007
With comparative amounts for December 31,2006
I
I
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
$ $ 59,634 $ 59,634 $ 6,301
59,634 59,634 6,301
I
Revenues
Use of money and property
Total revenues
I
Expenditures
Current:
Culture and recreation
Housing and development
Total expenditures
I
7,130 7,130 6,001
132,142 (132,142) 777
7,130 132,142 (125,012) 6,778
(7,130) (72,508) (65,378) (477)
$ (72,508) $ (72,508) (477)
130,992 131,469
$ 58,484 $ 130,992
Excess (deficiency) of revenues
over (UDder) expenditures
I
Net change in fund balances
I
Fund balance - beginning
Fund balance - ending
I
I
I
I
I
I
I
I
121
I
I
I
Augusta, Georgia
Canine Forfeitures
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2007
With comparative amounts for December 31,2006
I
I
I
Variance with
Final Budget -
Amended Positive 2006
Budget Actual (Negative) Actual
$ $ 815 $ 815 $ 725
\0,000 433 (9,567) \,022
10,000 1,248 (8,752) 1,747
I
Revenues
Use of money and property
Fines and forfeitures
Total revenues
I
Expenditures
Current:
Public safety
Total expenditures
10,000 10,000
10,000 10,000
1,248 1,248 \,747
$ 1,248 $ 1,248 1,747
17,098 15,35\
$ 18,346 $ 17,098
I
Excess (deficiency) of revenues
over (under) expenditures
I
Net change in fund balances
I
Fund balance - beginning
Fund balance - ending
I
I
I
I
I
I
I
I
123
I
I
I
Augusta, Georgia
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31,2007
I
I
Assets
Cash and temporary investments
Total assets
I
I
Liabilities and fund balances
Fund balances:
Unreserved - undesignated
Total fund balances
I
Total liabilities and fund balances
I
I
I
I
I
I
I
I
I
I
I
Debt Service
$
$
Urban
Debt Service
GO Sales Tax
2006 Bonds
Debt Service
$
$
$ 10,194
$ 10,194
10,194
10,194
$
10,194 $
$
$
125
Total Nonmajor
Debt Service
Funds
$ 10,194
$ 10,194
10,194
10,194
10,194
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Debt Service Funds
Year Ended December 31,2007
With comparative amounts for December 31, 2006
Variance with
Final Budget -
Positive 2006
Budget Actual (Negative) Actual
Revenues
Taxes - property $ $ $ $ 2,902
Use of money and property 17,774
Total revenues 20,676
Excess (deficiency) of revenues
over (under) expenditures 20,676
Other financing sources (uses)
Transfers (out) (2,913) (2,913) (765,000)
Total other financing sources (uses) (2,913) (2,913) (765,000)
Net change in fund balances $ (2,913) $ (2,913 ) (744,324)
Fund balance - beginning 2,913 747,237
Fund balance - ending $ $ 2,913
127
I
I
I
Augusta, Georgia
2006 GO Sales Tax Bonds Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Debt Service Funds
Year Ended December 31,2007
With comparative amounts for December 31,2006
I
I
I
Variance with
Final Budget -
Positive 2006
Budget Actual (Negative) Actual
$ $ 10,743 $ 10,743 $
10,743 10,743
9,727,390 9,727,939 (549)
9,727,390 9,727,939 (549)
(9,727,390) (9,717,196) 10,194
9,727,390 9,727,390
9,727,390 9,727,390
$ 10,194 $ 10,194
I
Revenues
Use of money and property
Total revenues
I
Expenditures
Debt service
Total expenditures
I
Excess (deficiency) of revenues
over (under) expenditures
I
Other financing sources (uses)
Transfers in
Total other financing sources (uses)
I
Net change in fund balances
Fund balance - beginning
I
Fund balance - ending
$
10,194
$
I
I
I
I
I
I
I
129
I
I
I
Augusta, Georgia
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Project Funds
Year Ended December 31,2007
I
I
Revenues
Use of money and property
Intergovernmental
Total revenues
Total Nonmajor
Community Special Sales Special Sales Capital Project
Development Tax Phase I Tax Phase [I Funds
$ 2,120 $ 44,029 $ 440,949 $ 487,098
3,486 3,486
2,120 44,029 444,435 490,584
I
I
Expenditures
Current:
General government
Public safety
Public works
Capital outlay
Total expenditures
5,713
5,713
8,844
9,132
77,568
682,219
777,763
14,557
9,132
77,568
682,219
783,476
I
I
Excess (deficiency) of revenues
over (under) expenditures
2,120
38,316
(333,328)
(292,892)
I
Other financing sources (uses)
Transfers (out)
Transfers in (out) between nonrnajor funds
Total other financing sources (uses)
I
Fund balance - ending
$
(1,477,345) (2,000,000)
(1,200,000)
(2,677,345) (2,000,000)
2,120 (2,639,029) (2,333,328)
135,577 2,639,029 9,682,777
137,697 $ $ 7,349,449 $
(3,477,345)
( 1,200,000)
(4,677,345)
I
Net change in fund balances
(4,970,237)
Fund balance - beginning
12,457,383
7,487,146
I
I
I
I
I
I
I
131
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
NONMAJOR ENTERPRISE FUNDS
133
I
I
I.
I Daniel Total Nonmajor
Field Garbage Enterprise
I Airport Collection Funds
$ 581,726 $ 596,976 $ 29,160,662
I 1,540,401 3,726,494
8,024 8,024
I 210,832
589,750 2,13 7 ,377 33,106,012
I 4,862,524
299,153
1,216,727 1,879,909 18,390,266
I 1,216,727 1,879,909 23,551,943
1,806,477 4,017,286 56,657,955
I
7,495 869,895 L,929,933
I 1,997 L,997
12,667 9,488 310,393
13,500 250,099
479,977 726,662
I 1,585,000
35,659 1,359,360 4,804,084
I 12,771,074
5,575,757
1,439,930 1,870,274
1,439,930 20,217,105
I 35,659 2,799,290 25,021, L 89
I 1,216,727 (39,998) 13,492,933
2,164
554,091 1,257,994 18,14L,669
$ 1,770,818 $ 1,217,996 $ 31,636,766
I
I
I
I 135
I
I
I
I
I Daniel
Field Garbage
Airport Collection Total
I $ 80,650 $ 13,348,361 $ 25,657,069
80,650 13,348,361 25,657,069
I 29,584 193,371 4,291,891
13,587 13,423,297 14,159,852
I 13,815 9,325 1,232,291
23,596 1,004,770
14,072 33,456 1,103,145
87,996
I 92,555 479,977 2,301,430
1,246,810
187,209 14,139,426 25,428,185
I (106,559) (791,065) 228,884
I 30,854 1,503,584
40,800
29,770 231,776
20,000 98,603
I (157,035) (430,382)
80,624 (157,035) 1,444,381
I (25,935) (948,100) 1,673,265
2,925,208 6,728,431
I (25,935) 1,977,108 8,401,696
1,796,753 (759,112) 23,235,070
I $ 1,770,818 $ 1,217,996 $ 31,636,766
I
I
I
I 137
I
I
I
Total Nonmajor
I Daniel Field Garbage Enterprise
Airport Collection Funds
I $ (106,559) $ (791,065) 228,884
I 92,555 479,977 2,301,430
1,246,810
I 2,609 (475,537)
573
I 7,058 293,334 1,032,363
342 (719) 12,760
13,500 4,849
(28,400) (144,241 )
I (1,709,991)
85,055 775,201 2,269,016
I $ (21,504) $ (15,864) $ 2,497,900
I $ 581,726 $ 596,976 $ 29,160,662
4,862,524
$ 581,726 $ 596,976 $ 34,023,186
I
I
I
I
I
I
I
I 141
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTERNAL SERVICE FUNDS
143
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Employee
Health Benefits
$ (81,584)
(35,651 )
(1,497,405)
1,533,056
$ (81,584)
$
$
46,540
405,937 398,465
4,505 (136,105) (1,570,218)
(3,710)
(2,189,272) (656,216)
4,505 (1,919,440) (1,785,139)
4,551 $ 3,278 $ (1,746,912) $ (1,233,147)
Unemployment
$ 4,551
$
$
$
Long-term
Disability
Insurance
Total
Internal Service
Funds
GMA
Leases
$
(1,227) $
$ 551,992
172,528
$
56,974 $
$ 1,392,326
12,015,641
12,015,641
12,207,913
$ 13,600,239
$
56,974 $
151
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FIDUCIARY FUNDS
153
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
PENSION TRUST FUNDS
155
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Combining Statement of Changes in Fiduciary Net Assets
Pension Trust Funds
Year Ended December 31, 2007
1945 1977 General
Plan Plan Retirement Total
Additions
Contributions - employer $ 331,330 $ 641,507 $ 1,445,837 $ 2,418,674
Contributions - plan member 11,578 1,102,231 378,750 1,492,559
Net investment income 805,345 2,035,461 6,295,769 9,136,575
Total additions 1,148,253 3,779,199 8,120,356 13,047,808
Deductions
Administration 43,311 105,505 356,089 504,905
Benefit payments 900,245 791,129 5,314,228 7,005,602
Refunds 234,956 234,956
Total deductions 943,556 1,131,590 5,670,3 17 7,745,463
Net increase (decrease) in
plan net assets 204,697 2,647,609 2,450,039 5,302,345
Total net assets - beginning 10,327,734 23,387,426 72,018,119 105,733,279
Total net assets - ending $ 10,532,431 $ 26,035,035 $ 74,468,158 $ 111,035,624
157
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AGENCY FUNDS
159
I
I
I
Augusta, Georgia
Combining Statcment of Changcs in Fiduciary Assets and Liabilitics - Continucd
Agcncy Funds
December 31,2007
I
I
Clerk of Court
January 1,2007 Additions Deductions December 31,2007
$ 4,359,707 $ 9,531,255 $ 10,096,111 $ 3,794,851
$ 4,359,707 $ 9,531,255 $ 10,096, III $ 3,794,851
$ 4,359,707 $ 9,531,255 $ 10,096,111 $ 3,794,851
$ 4,359,707 $ 9,531,255 $ 10,096, III $ 3,794,851
I
Assets
Cash and cash equivalents
Total assets
Liabilities
I
Due to others
Total liabilities
I
TOTAL ALL AGENCY FUNDS:
Assets
I
Liabilities
$ 8,856,440 $ 99,996,622 $ 100,276,266 $ 8,576,796
23,027,263 153,491,014 155,069,493 21,448,784
$ 31,883,703 $ 253,487,636 $ 255,345,759 $ 30,025,580
$ 8,856,440 $ 99,996,622 $ 100,276,266 $ 8,576,796
23,027,263 153,491,014 155,069,493 21,448,784
$ 31,883,703 $ 253,487,636 $ 255,345,759 $ 30,025,580
I
Cash and cash equivalents
Receivables
(net of allowance for doubtful accounts)
Taxes
Total assets
I
Due to others
Uncollected taxes
Total liabilities
I
I
I
I
I
I
I
I
161
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
COMPLIANCE SECTION
C-I
I
I
_...~ .
. . to
. ~ I
I
CERTIFIED l'l"!lLlC
.\CCOU\TA;-': IS &
CONSCLTANT$
I
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON
INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
I
I.
Augusta-Richmond County Commission
Augusta, Georgia
I
I
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
Augusta Canal Authority, each major fund and the aggregate remaining fund information of Augusta, Georgia as of
December 31, 2007 and for the year then ended, which collectively comprise Augusta, Georgia's basic financial
statements, as listed in the table of contents. These financial statements are the responsibility of the Augusta,
Georgia management. Our responsibility is to express opinions on these basic financial statements based on our
audit. We did not audit the financial statements of the Augusta-Richmond County Department of Health or
Downtown Development Authority. Those financial statements were audited by other auditors whose reports
thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Department
of Health and Downtown Development Authority, is based solely on the reports of the other auditors.
I
I
Internal Control over Financial Reporting
In planning and performing our audit, we considered Augusta, Georgia's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of Augusta, Georgia's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of Augusta, Georgia's internal
. control over financial reporting.
I
I
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding
paragraph and would not necessarily identity all deficiencies in internal control over financial reporting that might
be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies
in internal control over financial reporting that we consider to be significant deficiencies.
I
I
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more then inconsequential will not be prevented or detected by the entity's internal
control. We consider the deficiencies described in the accompanying schedule of findings and questioned costs to
be significant deficiencies in internal control over financial reporting, as described in 07-FS-OI and 07-FS-02.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
entity's internal control.
I
I
I
I
I
C-3
I
I
AUGUSTA, GEORGIA
I
Schedule of Expenditures of Federal Awards
I
Year Ended December 31, 2007
I
Federal Grantor!
Pass-through Grantor!
Program Title
I
u.s. Department of Housinl!: and Urban Development
<Direct Programs>
Community Development Block Grants
Emergency Shelter Grants Program
Home Investment Partnerships Program
Supporting Housing Program
Housing Opportunities for Persons with AIDS
I
I
Total U.S. Department of Housing and Urban Development
I
I
U.S. National Park Service. Department of Interior
<Direct Programs>
Preserve America - Way Finding
I
U.s. Department of Justice
<Direct Programs>
Local Law Enforcement Block Grant Program
I
Juvenile Accountability Incentive Block Grants
I
Edward Byrne Memorial Justice Assistance Grant Program
I
I
Edward Byrne Memorial Formula Grant Program
I
<Pass-through from the Children and Youth Coordinating Council>
Just the Two of Us
I
<Pass-through from the Criminal Justice Coordinating Council>
Serious Violent Offender Reentry Progam
I
Total U.S. Department of Justice
I
Federal
CFDA
Number
14.218
14.231
14.239
14.235
14.241
l5.0FA
16.592
16.523
16.738
16.575
16.575
16.579
16_0FA
16.0FA
C-5
Agency or Pass-through
Number
B-xx-MC-13-0003
S-xx-MC-13-0004
M-xx-MC-13-0206
GA-O 1 B-x-0400x
GA-HO-x-FO-02
13-06-PA-2008
200S-DD-BX-1031
05B-ST-000 I
2006-DJ-BX-0390
C06-8-00 1
C05-8-185
Total CFDA# 16.575
B04-8-005
04P-I0-09-0006
2002-RE-CX-0020
Federal
Expenditures
$
3,144,533
72,906
1,542,856
80,817
467,670
5,308,782
25,003
107,777
8,347
73,836
50,121
30,559
80,680
48,177
9,754
71,586
400,157
I
I
AUGUST A, GEORGIA
I
Schedule of Expenditures of Federal Awards (Continued)
I
Year Ended December 31, 2007
I
Federal Grantor!
Pass-through Grantor!
Program Title
I
Reimburseable Agreement Security Requirements
after September 11,2001
Cooperative Agreement, beginning October I, 2007
I
I
<Pass-through from the Georgia Emergency Management Agency>
Homeland Security Grant Program
Homeland Security Grant Program
I
Buffer Zone Protection Program
I
Total U.S. Department of Homeland Security
I
I
I
I
I
I
I
I
I
Federal
CFDA
Number
97.090
97.090
97.067
97_067
97. 0 78
C-7
Agency or Pass-through
Number
HSTSO 1-04-A-LEF003
HSTS02-08-H-SLR007
Total CFOA# 97.090
2006-GE- T6-0066-0853
2006-GE- T6-0066-0869
Total CFOA# 97.067
GA-2006-000-00491
Total Federal Expendilures $
Federal
Expenditures
94,054
21,396
115,450
216,297
189,711
406,008
23,605
703,010
10,683,264
I
I
I
AUGUSTA, GEORGIA
Summary Schedule of Prior Year Audit Findings and Questioned Costs
For the Year Ended December 31,2007
I
Summary Listinl! of Prior Audit Findinl!s
I
Finding Control
Number
Auditee Response/Status
Comments
I
04-01
06-FS-0 1
06-FS-02
04-02
04-03
05-01
05-04
05-06
05-08
05-13
05-14
06-01
06-02
I
I
I
I
I
I
I
I
I
I
I
I
I
Repeat finding in current year
Repeal finding in current year
Substantially resolved during tbe currrent year
Repeat finding - finding updated in current year
Resolved during tbe current year
Substantially resolved during tbe currrent year
Substantially resolved during tbe currrent year
Repeat finding - finding updated in current year
Resolved during tbe current year
Repeat finding - finding updated in current year
Resolved during tbe current year
Resolved during tbe current year
Resolved during tbe current year
See p. C-9
See p. C-9
See p. C-lO
See p_ C-II
See p_ C-12
See p. C-12
See p. C-14
See p. C-15
See p. C-16
See p_ C-17
See p. C-18
See p. C-19
See p. C-20
C-9
I
I
AUGUSTA, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31, 2007
I
I. Findings in Relation to the Audit of the Financial Statements (continued)
I
CA USE:
The Govemment does not have sufficient resources with the financial statement expertise which would allow
the Government to internally prepare its conversion entries for the Fund Financial Statements to the
Government-wide financial statements, in accordance with GAAP. Historically, due to the cost-benefit
analysis made by management of internal control over financial reporting, the Government has engaged its
auditor to assist in the conversion to GAAP basis and financial statement preparation.
I
I
The Government also has not had sufficient resources in the accounting and finance departments which would
allow sufficient time to be spent on reconciling balance sheet accounts for all funds to the supporting
documentation on a timely basis.
I
RECOMMENDA TION:
We recommend that management consider the cost-benefit analysis of the preparation of its financial
statements in accordance with GAAP. We also recommend that management continue the training and
supervision of its finance and accounting staff in order to reconcile all balance sheet accounts to supporting
documentation on a timely basis.
I
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN-
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
CURRENT STATUS:
The Government did not prepare its financial statements for the year ended December 31, 2007, nor its
conversion entries related to converting the Fund Financial Statements to the Statement of Net Assets and
Statement of Activities; repeat finding this fiscal year.
I
I
Finding number 06-FS-02
CONDITION:
The Government did not have sufficient supporting documentation relating to the Human Resources function.
During our audit procedures, the testing of controls for payroll transactions resulted in finding a lack of
supporting documentation in several instances, including time cards and documented rates of pay included in
personnel files. We also noted that variances noted upon reconciliation of the insurance coverage to the
insurance statements were not resolved in a timely manner.
I
I
CAUSE:
The Government does not have appropriate policies and procedures that are enforced in order to ensure the
proper documentation is retained within personnel files. The Government also does not have sufficient
processes in place by which variances noted during the insurance reconciliation are resolved in a timely
manner.
I
I
RECOMMENDATION:
We recommend that proper procedures be required and enforced in order to ensure proper supporting
documentation is retained within the Human Resources department to support payroll disbursements. We also
recommend that timely follow up be performed for variances noted during the reconciliation of insurance
statements to insurance withholdings.
I
I
C-II
I
I
AUGUST A, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31,2007
I
II. Federal Awards Findings and Questioned Costs (continued)
I
Finding 04-3
Federal Agency:
Federal Program:
Compliance Requirement:
u.s. Department of Housing and Urban Development
CFDA # 14.246 Neighborhood Initiative Grant
Reporting
I
CRITERiA:
The grant agreement states in Article IV that each recipient shall submit a progress report every six months
after the effective date of the grant agreement. Progress reports shall include reports on both performance and
financial progress and shall conform with 24 CFR 85.40 and 85.41 or 24 CFR Sections 84.50 through 84.53, as
applicable.
I
I
CONDITION:
No controls existed at year-end to meet the reporting requirements of the Neighborhood Initiative Grant;
therefore, no reports were submitted to the awarding agency to track the progress of the grant.
I
RECOMMENDATION.-
We recommend that the Neighborhood Initiative Program of Augusta, Georgia implement the following
controls:
I
I
A. Draft written policies that establish responsibility and provide the procedures for periodic monitoring,
verification, and reporting of program progress and accomplishments.
B. Setup a tracking system that reminds staff when reports are due.
C. Setup supervisory review of reports performed to assure accuracy and completeness of data and
information included in the reports.
I
I
CURRENT STATUS:
The Government did not receive funding through the Neighborhood Initiative Grant ill fiscal year 2007.
Finding is no longer applicable.
I
Finding 05-01
Federal Agency:
Federal Program:
Compliance Requirement:
CFDA # All The Government's Federal Grants
Grants Management
I
I
CONDITION:
The Government has several federal, state and local grants as well as many other revenue sources. The
Government does not designate anyone to oversee the accounting and management of the grants and contracts.
Each of the Government's departments that receives federal grants is responsible for all aspects of the related
grant administration. This includes the application, the requests for draws, the spending of the funds, the
monitoring, the reporting, and the compliance with federal requirements. This results in a decentralized and
inadequate grants management process.
I
I
The Finance Department is unaware of all the federal grants that the Government receives. There is little, if
any, communication between the departments receiving the grants and the Finance Department. There is no
management oversight that the departments are in compliance with federal grant requirements.
I
C-13
I
I
AUGUST A, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31,2007
I
II. Federal Awards Findings and Questioned Costs (continued)
I
CURRENT STATUS:
Though a grants manager was in place in 2007, the duties of the manager did not include ensuring compliance
with laws and regulations, maintaining pertinent information related to the grant programs, or ensuring
reconciliation between the Government's general ledger and financial reports submitted to the awarding
agencies. Grants were still decentralized with various Government departments managing all aspects of the
grant, from application to close-out. A new grants manager was hired January I, 2008, for which the job
description is to include these appropriate duties. The finding was substantially resolved.
I
I
I
Finding 05-04
Federal Agency:
Federal Program:
U.S. Department of Housing and Urban Development
CFDA # 14.218 Community Development Block Grant; CFDA #14.239 HOME
Investment Partnerships Program; CFDA # 14.241 Housing Opportunities for
Persons with AIDS
Allowable Costs
I
Compliance Requirement:
I
CONDITION:
CDBG, HOME, and HOPW A grant programs allow for administrative costs to be charged to the program.
Salaries and Wages are charged to the grants based upon an allocation of employees' time. Many are charged
100% to a program because they only work on that program. Others are charged 50/50, 60/40, etc. Personnel
are required to keep a daily log of how their time is spent. These logs, however, are not used in the allocation
of the personnel wages charged to the programs either on an actual daily basis or in supporting the percentages
of salaries charged.
I
I
I
CRITERIA:
In accordance with OMB Circular A-87, monthly effort reports of actual time spent on federal programs are
required for employees engaged in two or more federal programs or activities and semi-annual reports are
required for employees engaged in only one federal program or other project or activity that could affect the
charges to federal programs. Where employees are expected to work solely on a single Federal award or cost
objective, charges for their salaries and wages must be supported by periodic certifications that the employees
worked solely on that program for the period covered by the certification. These certifications must be prepared
at least semi-annually and must be signed by the employee or supervisory official having first hand knowledge
of the work performed by the employee. Where employees work on multiple activities or cost objectives, a
distribution of their salaries or wages must be supported by personnel activity reports or equivalent
documentation that reflect an after-the-fact distribution of the actual activity of each employee. The
documentation must account for the total activity for which each employee is compensated, must be prepared at
least monthly, must coincide with one or more pay periods, and must be signed by the employee. Budget
estimates or other distribution percentages determined before the services are performed do not qualify as
support for charges to Federal awards but may be used for interim accounting purposes.
I
I
I
I
EFFECTS.-
Administrative costs submitted for reimbursement is unsupported and may be inaccurately reported. Failure to
document time or failure to use documented time in the allocation of administrative charges to grant programs
could result in questioned costs. Though payroll charges are allowable grant expenditures, administrative
charges may be overdrawn on some federal programs and under drawn on other federal programs.
I
I
C-15
I
I
AUGUSTA, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31,2007
I
II. Federal Awards Findings and Questioned Costs (continued)
I
EFFECTS:
Failure to monitor the performance of sub-recipients is a material non-compliance with program requirements
for Housing and Urban Development programs. Lack of monitoring could result in questioned costs spent by
the sub-recipient that would have to be returned to the federal agency. Future funding could be in jeopardy.
I
I
QUESTIONED COSTS:
Undetermined
I
CA USE:
Lack of oversight in the Housing and Economic Development Department to insure compliance requirements
are communicated to the staff and are carried out resulted in a systematic problem related to compliance with
sub-recipient monitoring.
I
RECOMMENDA TIONS:
We recommend the Government establish policies and procedures for monitoring sub-recipients. These
procedures should include identification of all contracts and sub-recipients, the preparation of annual
monitoring schedules, check lists of federal compliance requirements and contract requirements that need to be
monitored and tested on the sub-recipient level, guidance on written documentation that must be maintained to
support the monitoring, and follow-up procedures for noted deficiencies or concerns.
I
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
CURRENT STATUS:
We noted written evidence of on-site programmatic monitoring related to subrecipients of the Community
Development Block Grant and the Housing Opportunities for Persons with AIDS programs. The HOME
program, however, did not maintain documentation sufficient to determine if adequate monitoring is being
performed. As such, this finding has only been partially corrected. See finding 07-01 where deficiency is re-
written to reflect its current status.
I
I
Finding 05-08
Federal Agency:
Federal Program:
U.S. Department of Housing and Urban Development
CFDA # 14.218 Community Development Block Grant; CFDA #14.239 HOME
Investment Partnerships Program
Cash Management and Program Income
I
Compliance Requirement:
I
CONDITION:
The Government was not in compliance with requirements relating to cash draws and the use of program
income. Program income was not reported to HUD through the IDIS system throughout the year. In addition,
program income was not consistently deducted from federal draws to ensure compliance with federal cash
management requirements. This resulted in funds being drawn prior to using all available program income.
Subsequent to year end, program income reported on the IDIS system was reconciled to the program income
deposits recorded on the Government's general ledger. All missing income on the IDIS system was
subsequently reported.
I
I
I
C-17
I
I
AUGUSTA, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31, 2007
I
II. Federal Awards Findings and Questioned Costs (continued)
I
significant history of a procurement. These records will include, but are not necessarily limited to the
following: rationale for the method of procurement, selection of contract type, contractor selection or
rejection, and the basis for the contract price. All required records must be retained for three years after
grantees make final payments and aU other pending matters are closed.
I
EFFECTS.-
The Government is not in compliance with the procurement requirements of the federal award and could result
in questioned costs.
I
I
QUESTIONED COSTS:
$25,772.86 computed as the invoice paid for which procurement records could not be found.
I
CA USE:
Lack of internal controls to ensure procurement procedures are followed and procurement records are
maintained for the required period.
I
RECOMMENDATIONS:
We recommend the Government maintain proper documentation of procurement procedures followed for the
time period as required by federal guidelines.
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
CURRENT STATUS:
Finding is included in the Government's Findings in Relation to audit of the Financial Statements at 07-FS-Ol.
I
Finding 05-14
Federal Agency:
U.S. Department of Justice;
U.S. Department of Transportation
CFDA #16.592 Local Law Enforcement Block Grant;
CFDA #20.106 Airport Improvements Program
Real Property and Equipment Maintenance
I
Federal Program:
I
Compliance Requirement:
I
CONDITION:
The City of Augusta maintains a capital asset detail for all Government property. This listing does not maintain
the source of the funds used to purchase the equipment on the asset schedule. Thus, there is no tracking of
equipment purchased with federal funds. No periodic inventory is taken and reconciled to the capital asset
detail.
I
I
I
C-19
I
I
AUGUSTA, GEORGIA
I
Summary Schedule of Prior Audit Findings and Questioned Costs (Continued)
Year Ended December 31,2007
I
II. Federal Awards Findings and Questioned Costs (continued)
I
Finding 06-01
Federal Agency:
Federal Programs:
U.S. Department of Housing and Urban Development
CFDA # 14.218 Community Development Block Grant
CFDA #14.239 HOME Investment Partnerships
Allowable Costs
I
Compliance Requirement:
I
CONDITION:
CDBG and HOME grant programs allow for administrative costs to be charged to the programs. Rent, utilities,
and various office supplies are charged to these grants on a 50%/50% with no corresponding charges to
programs that also benefit from the use of the Housing & Neighborhood Development facility and department
personnel.
I
I
CRITERIA:
In accordance with OMS Circular A-87 and 2 CFR part 225 Appendix (C), costs of central services should be
allocable to all activities. A cost is allocable to a particular cost objective if the goods or services involved are
chargeable or assignable to such cost objective in accordance with relative benefits received. All activities that
benefit from the governmental unit's indirect cost, including unallowable activities and services donated to the
governmental unit by third parties, will receive an appropriate allocation of indirect costs.
I
I
EFFECTS:
The CDBG and HOME programs are bearing more than their equitable share of these expenditures.
I
QUESTIONED COSTS:
Not determined.
CA USE:
Various indirect costs were not allocated equitably among the federal programs receiving the benefits.
I
RECOMMENDATIONS:
We recommend that the Government allocate its rent, utilities, and other office expenses equitably to each
activity in accordance with relative benefits received.
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources_
I
I
CURRENT STATUS:
During fiscal year 2007, the Housing and Community Development Department maintained documentation and
support for allocations of indirect costs. Finding corrected.
I
Finding 06-02
Federal Agency:
Federal Programs:
Compliance Requirement:
U.S. Department of Housing and Urban Development
CFDA # 14.218 Community Development Block Grant
Earmarking
I
I
C-21
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
-........
. .4O
. 4 I
CERnFlED Pl'BUC
.\CCOt !'dANIS &
CONSl '!:rANTS
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNT ANTS
ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33
Augusta-Richmond County Commission
Augusta, Georgia
Compliance
We have audited the compliance of Augusta, Georgia with the types of compliance requirements described in the
u.s. Office of Management and Budget (OMS) Circular A-i33 Compliance Supplement that are applicable to
each of its major federal programs for the year ended December 31, 2007. Augusta, Georgia's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each
of its major federal programs is the responsibility of Augusta, Georgia's management. Our responsibility is to
express an opinion on Augusta, Georgia's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 of
Augusta, Georgia's compliance with those requirements.
In our opinion, Augusta, Georgia complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal programs for the year ended December 31, 2007. However, the results
of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to
be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of
findings and questioned costs as items 07-02, 07-03, and 07-04.
Internal Control over Compliance
The management of Augusta, Georgia is responsible for establishing and maintaining effective internal control
over compliance with the 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, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of Augusta, Georgia's internal control over compliance.
C-23
I
I
AUGUST A, GEORGIA
I
Schedule of Findings and Questioned Costs
Year Ended December 31,2007
I
I. Summary ofthe Auditor's Results
I
Financial Statements
I
The auditor's report expresses an unqualified opinion on the financial statements of the Augusta, Georgia as
of and for the year ended December 31, 2007.
I
Significant deficiencies in internal control over financial reporting which would be required to be reported
in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance with Government Auditing Standards were
disclosed during the audit and are listed as findings 07-FS-OI and 07-FS-02 below.
I
No instances of noncompliance or other matters material to the financial statements of Augusta, Georgia, as
required to be reported in accordance with Government Auditing Standards, were disclosed by the audit.
I
Federal A wards
I
The auditor's report expresses an unqualified OpInIOn on compliance for major programs of Augusta,
Georgia as of and for the year ended December 31, 2007.
I
Significant deficiencies in internal control over compliance applicable to major federal award programs
which would be required to be reported in the Report on Compliance with Requirements Applicable to
Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133
were disclosed during the audit as Finding Number 07-0 1,07-02, and 07-04.
I
Identification ofMaior Programs
CFDA Number
Name of Federal Program
I
14.218
14.239
14.241
U.S. Department of Housing and Urban Development
Community Development Block GrantslEntitlement Grants
HOME Investment Partnerships Program
Housing Opportunities for Persons with AIDS
I
20.106
U.S. Department of Transportation
Airport Improvement Program
I
97.067
U.S. Department of Homeland Security
Homeland Security Grant Program
I
We used a threshold of$320,498 to distinguish between Type A and Type B programs.
I
Augusta, Georgia did not qualifY as a low-risk auditee.
I
I
C-25
I
I
AUGUST A, GEORGIA
Schedule of Findings and Questioned Costs - Continued
I
Year Ended December 31,2007
I
III. Findings in Relation to tbe Audit oftbe Financial Statements (continued)
I
CA USE:
Time cards are transferred to a time sheet to be entered into the payroll system. Although Departments are
required to turn in the time cards to the Payroll Department and the time cards are required to be retained in the
Human Resources Department, it was noted that the time cards are not reviewed for completeness by the
Payroll Department or the HR Department.
I
I
Access was given to the Payroll Department in order to make changes if there are errors when they are
processing payroll.
I
RECOMMENDATION.-
We recommend making Department Heads responsible for time worked when they sign-off on the time sheet
which indicates exceptions only. We recommend the Payroll Department reconcile time sheets to the Payroll
Edit Report (also exceptions only) for every payroll run.
I
We recommend that Human Resources request, review and retain a change report from IT for changes to
payroll data for each payroll run if it is necessary that the Payroll Department be given access to make changes
to payroll data.
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
III. Federal Awards Findings and Questioned Costs
I
Finding 07-01 (update of Finding 04-2 and 05-06)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Programs: CFDA # 14.239 HOME Investment Partnerships Program
Compliance Requirement: Subrecipient Monitoring
Type of finding: Weakness in internal control (material weakness)
I
I
CONDITION:
The Government did not have adequate procedures to document and ensure that subrecipients are
administering federal awards in compliance with federal requirements as they apply to:
. Allowable costs and activities
. Eligibility
. Procurement
. Special tests and provisions for rent reasonableness, housing quality standards, and project-based rental
assistance.
Although the HOME Program administrator conducted annual site visits for all subrecipients, sufficient
documentation supporting the monitoring process was not maintained to provide adequate evidence that the
subrecipients' controls were adequate or that they addressed the appropriate compliance requirements.
I
I
I
I
CRITERIA:
OMB A-133 (AOO(d)) states that a pass-through entity shall monitor the activities of sub-recipients as
necessary to ensure that Federal awards are used for authorized purposes in compliance with laws,
regulations, and the provisions of contracts or grant agreements and that performance goals are achieved.
I
C-27
I
I
AUGUSTA, GEORGIA
I
Schedule of Findings and Questioned Costs - Continued
Year Ended December 31,2007
I
III. Federal Awards Findings and Questioned Costs (continued)
I
CRITERIA:
The Government is required to submit an annual Section 3 Summary Report to report the number and
amount of Construction and Non-construction contracts awarded on CDBG, HOME, and HOPW A projects,
the number and amount of these contracts that were awarded to Section 3 businesses, and information
regarding employment and other economic opportunities provided to low and very low income persons
under Section 3 that resulted from these contracts.
I
I
EFFECTS:
Inaccurate Section 3 Summary Reports were filed with the U.S. Housing and Urban Development Agency.
I
QUESTIONED COSTS:
None
I
CA USE:
Staff is not trained on completing the Section 3 Summary Reports. There is also no effective internal
control in place to ensure these performance reports are complete and accurate.
I
RECOMMENDATIONS:
We recommended the Government implement procedures to ensure information reported in the annual
Section 3 Summary Report is complete and accurate.
I
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
Finding 07-03
Federal Agency:
Federal Programs:
Compliance Requirement:
Type of finding:
U.S. Department of Housing and Urban Development
CFDA # 14.239 HOME Investment Partnerships Program
Cash Management
Compliance (non-material noncompliance)
I
I
CONDITION:
The Government drew down federal funds and disbursed these funds to a sub-recipient for the purchase of
property to be used in the HOME Investment Partnerships Program. The sub-recipient did not remit
support that they had disbursed their own funds to acquire the property, as is the policy before the
Government reimburses a sub-recipient. Documentation from the sub-recipient indicated that the sub-
recipient borrowed funds to purchase the property. The sub-recipient obligated to spend the funds through
signed mortgage agreements, but at the time of reimbursement the mortgages had not been paid.
I
I
I
I
C-29
I
I
AUGUST A, GEORGIA
I
Schedule of Findings and Questioned Costs - Continued
Year Ended December 31,2007
I
III. Federal Awards Findings and Questioned Costs (continued)
I
assets. For other equipment purchased with federal funds and included on the fixed asset system, we were
unable to verify whether the equipment was designated as being purchased with Federal funds. If
equipment purchased with federal funds is sold, then the Federal government must be reimbursed their
share of the selling price.
I
I
CRITERIA:
28CFR 66.32(d) states that the recipients' property management standards for equipment acquired with
Federal funds shall, at a minimum, meet the following requirements:
.
a description of the equipment,
a serial number or other identification number,
the source of equipment, including the award number
who holds title,
the acquisition date and cost of the equipment,
percentage of Federal participation in the cost of the equipment,
the location, use and condition of the property,
and any ultimate disposition data including the date of disposal and sale price of the property.
I
.
.
.
I
.
.
.
.
I
A physical inventory of the property must be taken and the results reconciled with the property records at
least once every two years.
I
I
EFFECTS:
Without proper inventory controls in place, it minimizes the assurance that the Government is adequately
tracking and monitoring acquisitions and disposals of equipment acquired with Federal funds.
I
QUESTIONED COSTS:
Unable to be determined.
I
CA USE:
The Government has inadequate controls over ensuring capital assets acquired with Federal funds are
properly coded as capital expenditures and maintained in the capital asset system.
I
RECOMMENDATIONS:
We recommend the Government strengthen internal controls over fixed asset records to ensure acquisitions
of equipment with Federal funds are properly safeguarded in accordance with Federal regulations.
I
MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN:
Management concurs with the finding and has already taken steps to implement the recommendations as
practically possible within the Government's resources.
I
I
I
C-31
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SPECIAL ONE PERCENT SALES AND USE TAX SECTION
S-l
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Report of Independent Certified Public Accountants on the Schedule of Special
One Percent Sales and Use Tax Performed in Accordance with
Government Auditing Standards
Augusta-Richmond County Commission
Augusta, Georgia
We have audited the accompanying financial statements of the governmental activIties, the business-type
activities, Augusta Canal Authority, each major fund and the aggregate remaining fund information of Augusta,
Georgia as of December 31, 2007 and for the year then ended, which collectively comprise Augusta, Georgia's
basic financial statements, as listed in the table of contents. These financial statements are the responsibility of
the Augusta, Georgia management. Our responsibility is to express opinions on these basic financial statements
based on our audit. We did not audit the financial statements of the Augusta-Richmond County Department of
Health or Downtown Development Authority. Those financial statements were audited by other auditors whose
reports thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the
Department of Health and Downtown Development Authority, is based solely on the reports of the other
auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to 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 basic financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe that our audit
and the reports of other auditors provide a reasonable basis for our opinions.
As explained in Note I, the accompanying Schedule of Special One Percent Sales and Use Tax of Augusta,
Georgia, as of and for the year ended December 31, 2007, as listed in the table of contents, is not a presentation
in conformity with accounting principles generally accepted in the Unites States of America. In our opinion, the
accompanying Schedule of Special One Percent Sales and Use Tax is fairly stated, in all material respects, in
relation to the portion of the basic financial statements from which it has been derived.
This report is intended solely for the information and use of management and the Board of Commissioners of
Augusta, Georgia, and is not required to be presented as part of the basic financial statements. This report is not
intended to be and should not be used by anyone other than these specified parties.
C~J 1x1W f ~J t..lP
Augusta, Georgia
June 30, 2008
S-3
I
AUGUST A, GEORGIA
I SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Continued
YEAR ENDED DECEMBER 31,2007 Estimated
Prior Current Per-ceDtag~
Original Cost Current Cost Years' Year Total of
I Projects Estimate Estimate Cost Cost Cost Completion
ARC drainage improvements Phase II 53,100 84,427 50,729 50,729 60%
SR 56 @ Goshen Road 88,000 362,718 362,718 362,718 100%
Belair Road improvement 2,361,000 2,367,036 140,703 140,703 6%
Berckman's Road 2,713,000 14,284 14,284 14,284 100%
I Courtney's Detention Pond Emer Rep 70,805 71,074 69,923 69,923 98%
Travis! Plantation Road 2,361,000 2,368,255 183,366 183,366 80/0
County Forces 3,672,500 4,310,686 3,202,289 318,812 3,521,101 82%
Miscellaneous grading & drainage 4,650,000 2,904,306 878,590 310,453 1,189,043 41%
Resurfacing County Forces 5,975,000 4,624,324 725,316 725,316 16%
I Resurfacing 8,500,000 7,438,208 1,526,889 1,526,889 21%
Paving various dirt roads 7,000,000 4,450,668 3,388,928 3,427 3,392,355 76%
Rail Road crossing improvement 750,000 825,258 10 1,238 101,238 12%
(Broad Street Area) 2,656,200 2,722,887 444,593 373,625 818,218 30%
(Telfair Street Area) 1,469,000 1,486,979 186,977 186,977 13%
I East Boundary improvements 1,318,700 4,601,966 591.326 2,042,567 2,633,893 57%
Wheeler Road operational 433,600 416,574 52,674 52,674 13%
Wrightsboro Road Widening Phase I 3,143,700 3,182,139 426,989 426,989 13%
Washington Road intersection 849,800 1,138,671 401,569 107,556 509,125 45%
I Hollywood SID Area 2,640,800 2,662,163 325,160 325,160 12%
Telephone system upgrade 527,082 535,811 535,812 535,812 100%
GIS 474,400 482,274 475,060 475,060 99%
Docwnent imaging system 418,518 425,586 425.588 425,588 100%
Springfield Village 200,000 200,000 81,284 81,284 41%
I Dyess Park 60,000 65,530 44,705 9,952 54,657 83%
Newman Tennis Center 120,000 121,644 71,674 5,285 76,959 63%
South Augusta Branch Library 1,625,000 5,926,028 5,713,005 10 5.713,015 96%
Library - main branch 7,375,000 7,465,331 1,276,401 1,596,261 2,872,662 38%
Greene Street Property Purchase 1,084,585 1,084,585 1,084,585 100%
I Construction of Station #8 1,500,000 1,500,957 1,438,500 1,438,500 96%
Station 15 (Wrigbtshoro Road) 1,500,000 1,699,791 1,690,789 1,690,789 99%
Engines 3,484,000 3,454,544 3,454,540 3,454,540 100%
Aerials 1,300,000 1,312,973 1,311,971 1,311,971 100%
Construction of Station # 12 (Heph Mcbean Area) 1,500,000 1,341,361 1,275,233 1,275,233 95%
I Paving various dirt roads 1.000,000 920,725 346,883 346,883 38%
East Bo~ndary Street & drainage improvements 1,318,700 151,497 1,497 1,497 1%
Wrightsboro Road improvements 1,500,000 1,514,969 14,968 14,968 1%
Walton Way Extension I Davis Road 350,000 356,940 82,892 82,892 23%
I Windsor Spring Road Section IV 1,250,000 1,264,731 123,590 67,130 190,720 15%
Windsor Spring Rd Section V(SR88 Hepzibah 1,257,484 7,484 7,484 1%
Washington Road Sidewalk 276,000 1,311 1,311 1,311 100%
St. Sebastian Way/Greene StlI5th Street 3,457,800 9,641,676 3,357,026 5,732,727 9,089,753 94%
Traffic improvement 621,500 705,892 307,699 307,699 44Olc.
I ANIClHopkms Street Improvements 2,000,000 1,172,188 72,188 430,029 502,217 43%
Windsor Spring Road Section IV 678,000 736,126 614,463 49,261 663,724 90%
RiBe Range Road @ Belair Road 62,200 5,981 5,981 5,981 100%
Lake Olmstead Park 425,000 455,728 439,681 2,213 441,894 97%
Bernie Ward 106,059 61,961 31,804 93,765 88%
I Fleming Tennis 100,195 100,195 100,195 100%
Meadowbrook Park 90,873 90,873 90,873 100%
Hepzibah Community Ctr 83,908 37,884 8,615 46,499 55%
DDA 853,418 605,991 76,107 682,098 80%
St Sebastian Way/Greene St 675,543 543 543 0%
I Belair Hills Est Imp(W&S) 112,603 112,605 \12,605 100%
Pinnacle Place Org Imp 772, \17 74,349 612,411 686,760 89%
SR 4/l5th @cr 2207(Central Ave) 117,218 14,443 14,443 12%
Richmond Hill Rd Sidewalks 117,645 117,645 117,645 100%
I Alexander Dr Emergency Repair 74,688 75,077 75,077 101%
Powell Rd Culvert Replacement 364,836 234,464 234,464 64%
Point West Drainage 608,276 187,798 45,186 232,984 38%
Oates Creek Rehab Proj 843,266 213,266 213,266 25%
ARC Drainage 1,494,422 1,185,200 1,185,200 79%
I Resurfacing PH VIII 1,331,683 1,088,852 1,088,852 82%
Lake Aumond Oam Improvements 491,762 107,450 107,450 22%
Belair Hills Estate 5,562,558 440,064 117,244 557,308 10%
Walton Way Extension/Davis Rd 2,421,507 84,357 84,357 3%
Windsor Spring Rd Section V(SR88 Hepzibah 798,894 246,113 413,265 659,378 83%
I Apple Valley Park 34,871 26,839 7,265 34,104 98%
Pension Property Purchase 1,272,514 1,272,514 1,272,514 100%
Replacement of Old Equipment 574,317 368,829 102,983 471,812 82%
Remodel Stations 3,4,11,13,14 & 17 656,585 324,729 324,729 49%
Pineview Drive 136,416 136,416 136,416 100%
I
I S-5
I AUGUST A, GEORGIA
I SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Continued
YEAR ENDED DECEMBER 31,2007 Estimated
Prior Current Percentage
Original Cost Current Cost Years' Yea< Total of
Projects Estimate Estimate Cost Cost Cost Completion
I SR 4/US I 16,500 12,413 12,413 12,413 100%
Windsor Spring Road 1,055,386 919,146 919,146 919,146 100%
Tobacco Road 3,046,858 2,736,545 2,736,545 2,736,545 100%
Lock & Dam Road 404,522 364,826 364,826 364,826 100%
I Barton Chapel Rd, Phase I 29,300 29,300 29,300 29,300 100%
Barton Chapel Road, Phase II 2,036,000 3,143,693 2,753,083 22,226 2,775,309 88%
SR 10/US 223 Gordon Highway 84,500 74,893 74,893 74,893 100%
Pepperidege Drive Intersection 172,177 156,358 156,358 156,358 100%
SR 56 at Phinizy 399,425 342,695 342,695 342,695 100%
I Fall Line Freeway 77,000 0%
Paving Various Rd., Phase V 1,200,000 725,423 725,423 725,423 100%
Boykin Road Drg. 1,466,809 1,367,118 1,367,118 1,367,118 100%
SR 56 @Old Waynesboro Rd 416,000 461,687 461,686 461,686 100%
Willis Foreman Road Dr. 350,100 440,304 440,302 440,302 100%
I Sand Ridge Stonn 341,800 218,682 218,682 218,682 100%
SR 56 Old Savannah Road 552,500 375,003 375,004 375,004 100%
Kimberly Clark Industrial Park 2,215,000 2,215,633 350,210 350,210 16%
Municipal Building 8,721,250 8,580,303 3,099,826 1,451,137 4,550,963 53%
Library (South Richmond) 700,000 709,881 654,985 654,985 92%
I Board of Health 7,000,000 7,000,000 7,000,000 7,000,000 100%
Augusta Mini Theater 850,000 856,245 364,438 452,155 816,593 95%
Lucy Craft Laney Museum 800,000 762,246 749,964 864 750,828 9~~
Georgia Golf Hall of Fame 4,000,000 4,000,000 4,000,000 4,000,000 100%
I Bethlehem Community Ctr 27,194 61,320 61,320 61,320 100%
Administration 182,795 181,816 181,816 181,816 100%
Wacren Rd Renovation 373,249 373,249 373,249 373,249 100%
Bennie Ward II 0,000 109,508 109,508 109,508 100%
Riverfront Pavilion 655,648 655,561 655,561 655,561 100%
I May Park 525,000 522,779 522,779 522,779 100%
West Augusta Soccer Field 1,000,000 999,739 999,739 999,739 100%
WT Johnson renovation 306,500 305,831 305,831 305,831 100%
Belair/Flager Road renovations 112,650 112,602 112,602 112,602 100%
Dyess Park renovation 192,993 192,993 192,773 192,773 100%
I South Augusta Recreation Administrative
Complex 7,550,000 7,552,419 7,552,419 7,552,419 100%
Aquatic Natatorium 5,143,000 5,140,093 5,140,093 5,140,093 100%
Golden CamplBelle TERR 929,119 927,295 927,925 927,925 100%
Belle Terrace Renovation 232,1l1 233,169 233,169 233,169 100%
I Elliott Park 100,000 100,089 99,911 99,911 100%
Heath Pool 5,000 0%
Jones Pool 35,000 35,017 35,017 35,017 100%
Doughty Park 50,000 50,479 50,479 50,479 100%
Eastview Park 227,500 169,161 169,161 169,161 100%
I HephizahlCarrotl Park 175,358 175,185 175,185 175,185 100%
Jamestown Park 112,566 112,566 112,566 112,566 100%
McBean Park 140,000 140,949 139,735 139,735 990/0
Minnick Park 55,000 53,849 53,849 53,849 100%
I Savannah Place 245,000 248,769 244,942 244,942 98%
Blythe Community Center 708,000 703,302 703,302 703,302 100%
Chafee Park Gym renovation 124,889 14,374 14,374 14,374 100%
Hinside Park renovation 50,000 47,400 45,894 45,894 97%
Lock & Dam renovation 75,000 34,992 34,993 34,993 100%
I Julian Smith renovation 742,207 742,182 742,182 742,182 100%
Fleming Building renovation 100,000 90,884 90,883 90,883 100%
Gracewood Park renovation 152,076 152,218 142,671 3,924 146,595 %%
Lake Olmstead Park 43,793 43,793 43,793 43,793 100%
Fleming Athletic Complex 133,850 133,170 133,170 133,170 100%
I Chester A venue renovation 151,500 151,500 147,926 147,926 98%
Boykin Road Park 40,000 39,8 tI 39,811 39,811 100%
Eisenhower Park Gym 1,477,000 1,4 76,000 1,476,000 1,476,000 100%
Discovety Center Ent 353,137 352,954 352,954 352,954 100%
St. Sebastian Extension 1,368,%9 1,633,799 1,610,578 20,282 1,630,860 100%
I 2nd Street Outfull 762,760 1,810,621 1,546,089 l,546,089 85%
6th Street handicap ramp 517,347 625,358 611,966 611,966 98%
Turbett Springs Detention 228,161 337,300 306,132 306,132 91%
Augusta Commons 1,825,291 3,609,599 3,652,638 3,652,638 101%
I Martin Luther King drainage 273,794 727 727 727 100%
Inter City Arts - Imperial 300,000 300,000 225,000 225,000 75%
CSO 10,500,000 10,546,852 9,629,637 9,629,637 91%
Wetlands 10,500,000 10,508,941 9,591,726 9,591,726 91%
Third Level Canal Cleaning 491,506 492,418 887 185 1,072 0%
I
I S-7
I
AUGUSTA, GEORGIA
I SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Continued
YEAR ENDED DECEMBER 31,2007 Estimated
Prior Current Peneotage
Original Cost Current Cost Years' Year Total of
Projects Estimate Estimate Cost Cost Cost Completion
I Heard A "cout: Park renovation 6,000 3,883 3,883 3,883 100%
Troup St Pk Renovation 10,000 0%
Hickman Park renovation 100,000 90,994 73,395 73,395 81%
l\t1cDuffie Woods Park renovation 150,000 148,3 30 148,330 148,330 100%
I Meadowbrook Park renovation 45,000 47,554 47,216 47,216 99%
Julian Smith BBQ renovation 187,000 186,558 186,558 186,558 100%
Blount Park renovation 19,000 2,600 2,600 2,600 100%
Augusta Canal Master 100,000 103,312 103,312 103,312 100%
Big Oak Park renovation 65,000 65,230 47,118 47,118 72%
I Wood Street South Ban Field 47,000 47,230 41,000 3,359 44,359 94%
Wood Lake Park renovation 100,000 100,776 79,664 6,909 86,573 86%
Royal (Barrett) Park renovation 12,000 5,086 5,086 5,086 100%
Garrett 500,000 500,000 500,000 500,000 100%
West Vineland Park renovation 20,000 20,127 20,119 20,119 100%
I Bedford Heights 35,000 35,192 26,941 26,941 77%
4 - H Camp Park reno,'ation 20,000 18,830 17,478 17,478 93%
Adjusting Rd/Way Structure 200,000 62,498 62,498 62,498 100%
International Boulevard Extension 340,000 289,800 289,800 289,800 100%
Walton Way Extension 1,385,000 0%
I Skinner Mill Road Culvert Extension 153,100 11,876 11,876 1l,876 100%
Rocky Creek Hazard Mitigatio 717,860 717,860 62,064 62,064 9%
Resurfacing various roads Phase VI 1,350,000 1,123,739 1.123.739 1,123,739 100%
Suburban Forces Capital Equipment 1,664,000 1,674,064 1,717,688 1,717,688 103%
I Railroad Street slope repair 289,500 290,600 33,459 33,459 12%
Wheeler Road Signal Plan Analysis 10,000 7,799 7,799 7,799 100%
Gordon Highway median banier 185,000 185,703 1,256 1,256 1%
Mason Road Bridge @ Claudia 275,000 197,329 197,329 197,329 100%
Bungalow Road 776,000 3,962,785 290,017 559,155 849.172 21%
I W oodlake Subdivision 939,000 942,567 43,817 43,817 S%
Pepperidge Point Retention Pond 50,000 32,667 32,677 32,677 100%
Windsor Spring Rd Sec IV 1,560,500 0%
Windsor Spring Rd Sec V 1,560,500 0%
Flood control feasibility 1,637,649 2,229,458 1,920,872 308,586 2,229,458 100%
I Judicial Center - County Court House 40,016,200 40,016,200 0%
Webster Detention Center 36,000,000 36,000,000 160,271 1,752,889 1,913,160 5%
Exhibit Han 20,000,000 20,000,000 161,225 71,209 232,434 1%
Sheriff Administation Relocation 3,000,000 3,000,000 0%
RCCI Renovations 750,000 750,000 0%
I Main Library 14,700,000 14,700,000 0%
Augusta Canal Improvements 2,500,000 2,500,000 2,500,000 2,500,000 100%
Augusta Canal Bond Repayment 8,200,555 8,200,5 5 5 8,200,555 8,200,555 100%
Bond Debt Service 5,417,800 5,417,800 0%
Information Technology 2,000,000 2,000,000 0%
I Flood Land Acquisition 500,000 500,000 0%
Wrightsboro Road Project 4,000,000 4,000,000 0%
D'Antignac Street Flood Avoidance 1,000,000 1,000,000 0%
Administration - Engineering 2,500,000 2,500,000 484,140 484,140 19%
I Marks Church Road Improvement 2,500,000 2,500,000 0%
Fire Stations & Training Center 6,000,000 6,000,000 0%
Lake Olmstead Stadium 360,000 400,000 [00,000 298,827 398,827 100%
Augusta Soccer Park 180,000 \80,000 157,007 157,007 87%
The Boat House 90,000 90,000 0%
I Apple Valley Park 315,000 315,000 876 214,996 215,872 69"1.
WT Johnson Park 67,500 67,500 2.1 00 1,486 3,586 5%
MM Scott Park 270,000 270,000 6,500 18,860 25,360 9"1.
Diamond Lakes Park 720,000 720,000 38,545 38,545 5%
Jamestown Park 135,000 148,860 500 38,346 38,846 26%
I Wood Park 270,000 270,000 \5,283 15,283 6%
Valley Park 22,500 22,500 160 160 1%
GoshenlBrown Road Park 135,000 135,000 0%
McDuffie Woods Park 90,000 90,000 2,700 12,326 15,026 17%
McBean Park 180,000 180,000 16,686 16,686 9%
I Fleming T enois Center 112,500 112,500 77,060 77,060 68%
Lock and Darn Park 49,500 49,500 0%
May Park 67,500 {j7,500 9,700 9,700 14%
HH Brigham Park 117,000 117,000 104,068 104,068 89"1.
I Land Acquisition 180,000 1&>,140 10,827 10,827 7%
Dyess Park 63,000 63,000 5,400 5,400 9%
Brookfield Park 45,000 45,000 0%
Lake Olmstead Park 207,000 207,000 15,128 15,128 7%
Blythe Park 180,000 180,000 4,790 4,790 3%
I
I S-9
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUST A, GEORGIA
SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX
Notes to Schedule of Special One Percent Sales and Use Tax
Year Ended December 31,2007
Note 1 - Summary of significant accounting policies
The accounting policies of Augusta's Special One Percent Sales and Use Tax conform to accounting principles
generally accepted in the United States of America as applicable to governments. These financial statements
present only the activity of the Special One Percent Sales and Use Tax projects and are not intended to be a
complete presentation of Augusta's assets, liabilities, revenues, and expenses.
Basis of accounting
The Special One Percent Sales and Use Tax projects are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can
be determined and "available" means collectible within the current period or soon enough thereafter to pay
liabilities of the current period. Expenditures are recorded when the related fund liability is incurred.
Estimates
The preparation of this Schedule requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Actual results may differ from these estimates.
S-ll