HomeMy WebLinkAboutCHERRY BEKARET HOLLOND AUDIT RESULTS 2004
AUGUSTA, GEORGIA
Executive Summary
Highlights of Audit Results
December 31, 2004
July 11, 2005
AUGUSTA, GEORGIA
Summary of Finance Committee Report
For the year ended December 31, 2004
Financial Highlights
. Summary of fmancial highlights p. 4
· General Fund Budget results p. 34
o Budgeted use of Fund Balance - $5 million
o Actual use of Fund Balance - $2 million
· Ending fmancial position of the General Fund
o General Fund expenditures are approximately $280,000 per day
o Ending fund balance is well in excess of GFOA guidelines
o Ending cash balance is over 60 days of expenditures
Audit Results (SAS 61 Letter - formal communication)
· Consistent with prior year opinions, except for exclusion of Downtown
Development Authority from audit opinion
· There were significant adjustments made to the financial information given
to us by the Government (listing attached to management letter)
· There were not any material internal control weaknesses noted during the
audit.
· There were no significant changes in accounting policies.
· There were no disagreements with management.
· We received excellent cooperation from Government personnel.
· Single Audit fmdings -
o Prior year fmdings -
· Budgetary compliance - repeat fmding this year
· Local Law enforcement block grant - corrected during year
· Airport Security grant - corrected during year
o Current year fmdings -
· HOME - subrecipient monitoring
· HOME - reporting requirements
Management Letter
Cherry, Bekaert & Holland, L.L.P.
-. .
. .,
. . .
CERTIFIED PUBLIC
ACCOUNTANTS &
CONSULTANTS
Augusta-Richmond County Commission
Augusta, Georgia
In planning and performing our audit of the financial statements for Augusta, Georgia (the "Government") for
the year ended December 31, 2004, we considered its internal control structure in order to determine our
auditing procedures. for the purpose of expressing our opinions on the financial statements and not to provide
assurance on the internal control structure. However, we noted certain matters involving the internal control
structure and accounting procedures of the Government that we would like to bring to your attention. Our
opinion on the financial statements, insofar as it relates to the amounts induded for the Department of Health
and the Downtown Development Authority, which are discretely presented component units, is based solely on
the reports of other auditors. Accordingly, the Department of Health and the Downtown Development
Authority are not covered by this report.
Operating deficits in enterprise fund - Garbage Collection fund
During our procedures relating to the Garbage Collection fund, we noted an accumulated deficit, which
has increased approximately $1 million per year for the last two years. During the current year, the
General Fund advanced over $1 million of its pooled cash balance to fund the cash flow needs of the
Garbage Collection fund, bringing the total amount borrowed from the General Fund to approximately
$1.7 million.
The 'Garbage Collection fund is reported as an enterprise fund and a business-type activity, and as such it
is expected that activities of the fund are to be self-supporting. The increasing operating deficit and
borrowings from the General Fund indicate the fund is not self-supporting.
Recommendation
We recommend that management review the activities ofthe Garbage Collection fund, including its
revenue sources and its expenses, and change the operations of the fund to address the increasing deficit
and resolve the existing accumulated deficit of the fund.
Administration of grants
During our procedures relating to grants received by the City, we noted a lack of resources devoted to the
accounting and financial reporting necessary for both State grants and Federal grants. A lack of sufficient
resources dedicated to administration of grants results in a lack of control over compliance reporting
necessary to continue receiving State and Federal grants.
Recommendation
We recommend that appropriate personnel resources be dedicated to administration needs, compliance
requirements, and financial reporting specifically relating to federal and state grants, to ensure continued
compliance with existing grants and to facilitate the receipt of future grants.
Page 1 of 4
Financial reporting for Housing and Neighborhood Development
During our procedures relating to the financial reporting system for Housing and Neighborhood
Development, including bank accounts and notes receivable, we noted weaknesses in the regular financial
reporting system. Examples induded outstanding items on the bank account reconciliation which were
not resolved in a timely manner; also, we were unable to obtain appropriate financial reporting for long-
term notes receivable, induding tracking of payments received, new notes issued, and a reconciliation of
these outstanding receivable balances to the reports provided by the financial institution that administers
the notes receivable. We have also noted other items in our grant compliance testing and have included
such items in our compliance reporting.
Recommendation
We recommend that management perform a detailed review of the internal control environment at
Housing and Neighborhood Development, and dedicate appropriate resources to develop sound financial
reporting practices for the activities of Housing and Neighborhood Development.
Interfund balances
In the normal course of the City's operations, cash is loaned and usually repaid among the various funds.
However, there are some funds that have not repaid interfund loans, and based on past operating history,
do not currently have the ability to repay the interfund loans. When cash is advanced to or for a fund that
does not have the ability to repay, the City should consider dassifying the amount as a transfer instead of
a loan, unless there is an achievable plan and a timetable for the fund to repay the loan. Following is a
schedule of some interfund loan balances that increased during the current year, and the operating results
for the year for those funds:
Owed to 2004 Net
General Fund Operating results
12/31/2004 12/31/2003
Amounts owed to General Fund by:
Municipal Golf Course $ 120,000 $ 88,000 $ (80,000)
Transit 3,328,000 2,538,000 (1,458,000)
Newman Tennis Center 230,000 200,000 (28,000)
Garbage Collection 1.724.000 697.000 (966.000)
$ 5,402,000 $ 3,523,000 $ (2,532,000)
Amounts recorded as owed to the General Fund, when the owing funds do not have the ability to repay
the loans, cause the General Fund's fund balance and results of operations to be overstated.
Recommendation
We recommend that management evaluate the interfund loan balances, and write off the balances that will
not be repaid. Advances to funds that do not have the ability to repay should be recorded as transfers.
Page 2 of 4
Annual financial statement time line
We commend the City for establishing a schedule for the 2005 audit that will enable the financial statements to
be issued within 120 days of December 31. The schedule that the City has published is reasonable, and should
be achievable with interim and year-end planning and review by City departments; review and planning will
also assure that accurate financial information is available throughout the year. Following is a list of some items
that caused the annual financial statement to be delayed for 2004 and for prior years that would need to be
corrected before February 28,2006 (the scheduled date to provide the auditor with the 2005 trial balances) if the
timeline is going to be achieved:
· trial balances that require a significant number and amount of adjustments, either by the City or by the
auditor, after the City has provided the trial balances to the auditor. For reference, a copy of the 2004
adjusting journal entries is attached; entries with the notation "PBC" ("Prepared by Client") were
provided to us by City staff after the trial balances were given to us for audit. While many of the
adjustments were provided to the auditor by City staff, the quantity and dollar amount of the
adjustments indicate that the trial balances didn't indude the routine and recurring adjustments that
are typically recorded before the the trial balances are finalized.
.. compilation of annual activity for the agency funds. This information, which is the City's
responsibility, has typically been prepared by the auditor.
· reconciliation of ending fund balances.
· recording of capital assets, capital leases, GMA lease draws, and other property and equipment
transactions; reconciliation of capital outlay expenditures to capital asset additions.
· acquisition of audited financial information for all component units.
· calculation and recording of capitalized interest.
City staff should review the adjusting journal entries for the past several years to identify areas that the City
should address prior to providing the auditor with the 2005 trial balances on February 28, 2006.
********
Page 3 of 4
Augusta, Georgia's internal control structure consists of policies established by management to provide
reasonable, but not absolute, assurance that the financial data are recorded, processed, summarized, and reported
consistent with the assertions embodied in the financial statements. In establishing those policies and
procedures, management assesses their expected benefits and related costs. Because of the inherent limitations
in any internal control structure, errors or fraud may nevertheless occur and not be detected. Also, projection of
any assessment of the internal control structure to future periods is subject to the risk that policies or procedures
may become inadequate because of changes in conditions or that the degree of compliance with the policies or
procedures may deteriorate.
This report is intended solely for the information and use of management and the Augusta-Richmond County
Commission.
~'~o/.-1~tdl,L.41?
Augusta, Georgia
May 17,2005
Page 4 of 4
Cherry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Entry
AJE
# Status
1 Posted
Account/Code Description
509-00-00001212330 Accrued Vacation
509-04-34905111113 Perm Full-Time S&W-Vacation
609.00
PBC-To Reverse JE 17636 - 2003 Accrued
Vacation
AJE
2 Posted
509-00-00001212320 Accrued Salaries
509-04-34905111110 Perm Full-Time S&W-Regu1ar
509-04-34905113110 Perm Full-Time S&W-Overtime
509-04-34905121110 Health Insurance
509-04-34905121130 Long-Term Disability Insurance
509-04-34905122110 FICA
509-04-34905122120 Medicare
509-04-34905123114 1998 DC Plan
PBC-To Reverse JE 17191 - 2003 Accrued
Salaries
AJE
3 Posted
506-04-35105425110 Water Systems
506-00-00001212310 AP - Accrued Expenses-General
506-00-00001212310 AP - Accrued Expenses-General
506-00-00001212310 AP - Accrued Expenses-General
PBC-To Reverse JE's 20993, 21422, and 21550
AJE
4 Posted
101-00-00001131120 Due from Agencies
101-00-00001131120 Due from Agencies
101-00-00003891120 Tax Commissioner-Other Revenue
101-00-00003611210 Int Earned - Tax Commissioner
101-00-00003891120 Tax Commissioner-Other Revenue
101-00-00003113110 Motor Vehicles - Current Year
101-00-00003419410 Commissions on Tax Collections
101-00-00003493110 Returned Check Fee
101-00-00001131120 Due from Agencies
101-00-00003419430 Motor Vehicle Title Fees
101-00-00003416110 Motor Vehicle Tag ColI Fees
101-00-00003233110 Late Tag Penalty
101-00-00003416210 Wildlife Tag Fees
101-00-00003891110 Miscellaneous Income
101-00-00003419440 Lapsed Motor Vehicle Ins Fees
272-00-00001131120 Due from Agencies
272-00-00003113110 Motor Vehicles - Current Year
411-00-00001131120 Due from Agencies
411-00-00003113110 Motor Vehicles - Current Year
274-00-00001131120 Due from Agencies
274-00-00003113110 Motor Vehicles - Current Year
PBC-Due From Tax Commissioner Check 24079
and
Check 24083
AJE
5 Posted
101-06-11103351110 Local Govt Grts
101-06-11101224110 Deferred Revenue
101-06-14713351110 Local Govt Grts
101-06-14711224110 Deferred Revenue
PBC-Move Remaining Recreation Grant Monies
to
Deferred Revenue
AJE
6 Posted
101-00-00001115110 Taxes Receivable-Current
101-00-00001131120 Due from Agencies
273-00-00001131120 Due from Agencies
273-00-00001115110 Taxes Receivable-Current
101-00-00001115110 Taxes Receivable-Current
101-00-00001131120 Due from Agencies
273-00-00001131120 Due from Agencies
273-00-00001115110 Taxes Receivable-Current
101-00-00001116110 Taxes Receivable-Delinquent
101-00-00001131120 Due from Agencies
273-00-00001131120 Due from Agencies
273-00-00001116110 Taxes Receivable-Delinquent
101-00-00001116110 Taxes Receivable-Delinquent
101-00-00001131120 Due from Agencies
273-00-00001131120 Due from Agencies
273-00-00001116110 Taxes Receivable-Delinquent
PBC-Split 80/20 Due From Tax Commissioner
Check
12480,12491,12498,12487
Debit
609.00
872.00
8.00
319.00
2.00
49.00
11.00
18.00
33,735.00
33,735.00
33,735.00
97,037.00
2,394.00
17,527.00
6,380.00
15,294.00
9,537.00
2.00
11,600.00
1,700.00
252.00
Page: 1
Prepared by: KOF
Reviewed by:
Credit
1,279.00
101,205.00
26,301.00
86,041. 00
5,759.00
5,237.00
878.00
6,577.00
4,664.00
206.00
4.00
2,965.00
9,537.00
2.00
11,600.00
1,700.00
252.00
175,470.00
175,470.00
175,470.00
175,470.00
146,594.00
146,594.00
146,594.00
146,594.00
5,782.00
5,782.00
5,782.00
5,782.00
6,338.00
6,338.00
6,338.00
6,338.00
ADJUSTING JOURNAL ENTRIES - Page 1 of 11
Cherry, B~kaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Entry
AJE
# Status
7 Posted
Account/Code Description
225-00-00003952110 Fund Balance Appropriations
225-00-00003341120 DNR-GA Greenspace Program
PBC-To Reverse JE 19369. Duplicate JE, DW
Had
Already Completed
AJE
8 Posted
105-00-00001341310 Fund Bal-Reserved For Encumbra
105-00-00001342210 Fund Balance-Unreserved, Undes
PBC-To Reverse JE 21513. Duplicate JE
Correction..
AJE
9 Posted
101-00-00003111110 Real Property Tax-Curr Year
101-00-00001224190 Deferred Items-Misc.
273-00-00003111110 Real Property Tax-Curr Year
273-00-00001224190 Deferred Items-Misc.
271-00-00001224190 Deferred Items-Misc.
271-00-00003111110 Real Property Tax-Curr Year
272-00-00001224190 Deferred Items-Misc.
272-00-00003111110 Real Property Tax-Curr Year
274-00-00001224190 Deferred Items-Misc.
274-00-00003111110 Real Property Tax-Curr Year
411-00-00001224190 Deferred Items-Misc.
411-00-00003111110 Real Property Tax-Curr Year
412-00-00001224190 Deferred Items-Misc.
412-00-00003111110 Real Property Tax-Curr Year
PBC-Deferred Revenue Calculation Tax
Commissioner.
AJE 11 Posted
101-03-92113313110 Fed Op Grt-Capital-Direct
101-00-00001224110 Deferred Revenue
PBC-To Reverse JE 21599
Debit
683,489.00
62,000.00
101,227.00
465,583.00
215,480.00
67,546.00
65,963.00
6,140.00
5,890.00
70,030.00
AJE 12 Posted 101-00-00001115110 Taxes Receivable-Current 19,970.00
101-00-00001131120 Due from Agencies
101-00-00001131120 Due from Agencies 508.00
101-00-00001131120 Due from Agencies
101-00-00003191110 Penalities - Delinquent Taxes 444.00
101-00-00003419410 Commissions on Tax Collections 341. 00
101-00-00003611210 Int Earned - Tax Commissioner 2,173.00
101-00-00003891120 Tax Commissioner-Other Revenue 483.00
101-00-00003191110 penalities - Delinquent Taxes 963.00
101-00-00003191110 Penalities - Delinquent Taxes 35,482.00
101-00-00001131120 Due from Agencies
101-00-00003191110 Penalities - Delinquent Taxes 574.00
101-00-00003111810 Early Payment Discount
101-00-00003611210 Int Earned - Tax Commissioner 2,089.00
101-00-00003419410 Commissions on Tax Collections 12,831.00
101-00-00001111410 Consolidated Cash
101-00-00003416110 Motor Vehicle Tag ColI Fees 2,215.00
101-00-00001131120 Due from Agencies
101-00-00003891110 Miscellaneous Income 5.00
101-00-00001131120 Due from Agencies
101-00-00003191110 Penalities - Delinquent Taxes 6,664.00
101-00-00001131120 Due from Agencies
271-00-00001115110 Taxes Receivable-Current 70,833.00
271-00-00001116110 Taxes Receivable-Delinquent
271-00-00001131120 Due from Agencies
271-00-00001131120 Due from Agencies 549.00
272-00-00001115110 Taxes Receivable-Current 21,344.00
272-00-00001116110 Taxes Receivable-Delinquent
272-00-00001131120 Due from Agencies
273-00-00001115110 Taxes Receivable-Current 146,695.00
273-00-00001131120 Due from Agencies 1,097.00
273-00-00001131120 Due from Agencies
274-00-00001115110 Taxes Receivable-Current 20,320.00
274-00-00001116110 Taxes Receivable-Delinquent
274-00-00001131120 Due from Agencies
274-00-00001131120 Due from Agencies 695.00
276-00-00001131120 Due from Agencies
276-00-00001119110 Accounts Receivable 12,315.00
276-00-00001111410 Consolidated Cash 1.00
411-00-00001116110 Taxes Receivable-Delinquent 217.00
411-00-00001131120 Due from Agencies
412-00-00001131120 Due from Agencies
412-00-00001115110 Taxes Receivable-Current 42.00
412-00-00001111410 Consolidated Cash 1.00
542-00-00001131120 Due from Agencies
542-00-00001119110 Accounts Receivable 60,383.00
~:~~T~4:e~;~~~/~)\~36STft.m ~UM--M'l ENTRIES - Pag ~ 2 of 11
Page: 2
Prepared by: KOF
Reviewed by:
Credit
683,489.00
62,000.00
101,227.00
465,583.00
215,480.00
67,546.00
65,963.00
6,140.00
5,890.00
70,030.00
20,478.00
39,885.00
15,175.00
318.00
2.00
2,215.00
5.00
6,664.00
549.00
70,833.00
824.00
20,520.00
147,792.00
695.00
20,320.00
12,316.00
217.00
43.00
60,383.00
Cherry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Page: 3
Prepared by: KOF
Reviewed by:
Entry # Status
AJE 13 Posted
Account/Code Description
101-01-56135233110 Other Expense
101-01-56133499110 Other Charges for Service
Debit
1,616.00
Credit
1,616.00
PBC-To Correct Tax Corom. Rec. Posted
Incorrectly
in 1010156135233110
AJE 14 Posted 323-00-00003952110 Fund Balance Appropriations 3,121,000.00
323-00-00001342210 Fund Balance-Unreserved, Undes 3,121,000.00
327-00-00001136110 Prepaid Items 75,000.00
327-00-00001342210 Fund Balance-Unreserved, Undes 75,000.00
322-00-00003952110 Fund Balance Appropriations 1,000,000.00
322-00-00001342210 Fund Balance-Unreserved, Undes 1,000,000.00
322-00-00001342210 Fund Balance-Unreserved, Undes 1.00
322-00-00003611110 Interest revenues 1.00
222-00-00003952110 Fund Balance Appropriations 135,655.00
222-00-00001342210 Fund Balance-Unreserved, Undes 135,655.00
541-00-00001329110 Contributed Capital 106,248.00
541-00-00001175120 Vehicles 106,248.00
411-00-00003952110 Fund Balance Appropriations 1,572,077.00
411-00-00001341110 Fund Balance-Reserved For Debt 1,572,078.00
626-00-00001329110 Contributed Capital 45,323.00
626-00-00001227110 Capital Leases - Current 45,323.00
278-03-25105421110 Machinery 24,600.00
278-00-00001342210 Fund Balance-Unreserved, Undes 24,600.00
272-01-31105413120 Building Renovations 9,068.00
272-00-00001342210 Fund Balance-Unreserved, Undes 9,068.00
109-00-00003952110 Fund Balance Appropriations 10,006.00
109-00-00001224110 Deferred Revenue 10,006.00
109-00-00003952110 Fund Balance Appropriations 81,000.00
109-00-00001224110 Deferred Revenue 81,000.00
101-00-00001341310 Fund Bal-Reserved For Encumbra 8,888.00
101-00-00003891110 Miscellaneous Income 8,888.00
323-00-00001342210 Fund Balance-Unreserved, Undes 9,068.00
323-04-62115413120 Building Renovations 9,068.00
105-91-91101342210 Fund Balance-Unreserved, Undes 395,102.00
105-00-00003911107 Op Tsfr from LLEBG VI 395,102.00
107-00-00003911105 Op Tsfr from Local Law Enfor. 395,102.00
107-00-00003315116 Local Law Enfor Block Grant V 395,102.00
206-00-00001342210 Fund Balance-Unreserved, Undes 1.00
206-02-24105311110 General supplies and materials 1.00
207-00-00001342210 Fund Balance-Unreserved, Undes 1.00
207-00-00003611110 Interest revenues 1.00
217-00-00001342210 Fund Balance-Unreserved, Undes 2.00
217-07-22105311110 General supplies and materials 2.00
276-00-00001342210 Fund Balance-Unreserved, Undes 1.00
276-04-16105111110 Perm Full-Time S&W-Regular 1.00
221-00-00001342210 Fund Balance-Unreserved, Undes 1.00
221-07-31103891110 Miscellaneous Income 1.00
277-07-55105311110 General supplies and materials 1.00
277-00-00001342210 Fund Balance-Unreserved, Undes 1.00
412-00-00003611110 Interest revenues 1.00
412-00-00001342210 Fund Balance-Unreserved, Undes 1.00
510-04-34105213119 Other Technical Services 2.00
510-00-00001342210 Fund Balance-Unreserved, Undes 2.00
546-00-00001342210 Fund Balance-Unreserved, Undes 2.00
546-00-00003891110 Miscellaneous Income 2.00
552-08-11015213119 Other Technical Services 1.00
552-00-00001342210 Fund Balance-Unreserved, Undes 1.00
577-00-00003611110 Interest revenues 1.00
577-00-00001336110 Retained Earnings-Unreserved 1.00
621-00-00003499110 Other Charges for Service 3.00
621-00-00001336110 Retained Earnings-Unreserved 3.00
611-00-00001336110 Retained Earnings-Unreserved 1.00
611-03-92105311110 General supplies and materials 1.00
762-00-00001342210 Fund Balance-Unreserved, Undes 1.00
791-00-00001342210 Fund Balance-Unreserved, Undes 1.00
791-00-00003611110 Interest revenues 1.00
101-00-00001342210 Fund Balance-Unreserved, Undes 1.00
101-01-31103891110 Miscellaneous Income 1.00
321-00-00001342210 Fund Balance-Unreserved, Undes 1.00
321-00-00003611110 Interest revenues 1.00
324-00-00003891110 Miscellaneous Income 1.00
324-00-00001342210 Fund Balance-Unreserved, Undes 1.00
571-00-00003611110 Interest revenues
571-00-00001342210 Fund Balance-Unreserved, Undes
323-04-11103891110 Miscellaneous Income 1.00
323-00-00001342210 Fund Balance-Unreserved, Undes 1.00
762-00-00003841110 Employee Pension Contribution 1.00
327-00-00001136110 Prepaid Items 75,000.00
327-04-11103891110 Miscellaneous Income 75,000.00
411-00-00003611110 Interest revenues 1.00
216-00-00001342210 Fund Balance-Unreserved, Undes 1.00
216-00-00003611110 Interest revenues 1.00
To adjust Fund Balance beginning amounts
ADJUSTING JOURNAL ENTRIES - Pag e 3 of 11
Cherry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 15 Posted
AJE 16 Posted
AJE 17 Posted
AJE 18 Posted
AJE 19 Posted
AJE 20 Posted
AJE 21 Posted
AJE 22 Posted
AJE 23 Posted
AJE 24 Posted
AJE 25 Posted
AJE 26 Posted
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Account/Code Description
801-00-00001171300 Infrastructure
801-00-00001176110 Construction In Progress
PBC - CIP received for Sales tax on this date
216-00-00003425120 E911 Charges - Cellular
216-00-00003425120 E911 Charges - Cellular
PBC-3% of wireless collections 12/31/2004
801-00-00001171300 Infrastructure
801-00-00001176110 Construction In Progress
PBC-CIP received for sales tax on 3/10/2005
272-04-17105311910 General Specialty Supplies
272-04-17105224210 Vehicle Rental
272-04-17105421150 Gas Powered Equipment
PBC-Capita1 correction
327-00-00001212310 AP - Accrued Expenses-General
327-00-00001212110 Accounts Payable
324-00-00001212110 Accounts Payable
324-00-00001212310 AP - Accrued Expenses-General
PBC-Reverse JE 21338 and move Dec 2003
221-07-31103891130 Program Income - HND
221-07-31103891110 Miscellaneous Income
221-07-31103891110 Miscellaneous Income
221-00-00003891110 Miscellaneous Income
221-07-31103611110 Interest revenues
221-00-00003611110 Interest revenues
PBC-Correct revenue account balance
101-00-00001224110 Deferred Revenue
101-03-92113311110 Fed Op Grant-Categor-Direct
PBC-Transfer hazard mitigation grant revenue
to deferred revenue
215-03-72105223112 R & M - Equipment
215-00-00001212310 AP - Accrued Expenses-General
To accrue wireless fees payable at
12.31.2004.
221-07-31105821110 Bonds - Interest
221-07-31105811110 Bonds - Prin
221-07-31105813110 Other Debt
To reclassify interest and principal pmts to
appropriate accounts.
541-00-00001175120 Vehicles
541-00-00001254110 Capital Leases Pay-Noncurrent
PBC - To post vehicle in the GMA Lease plan
to GL.
541-00-00001254110 Capital Leases Pay-Noncurrent
541-00-00003899910 Prior Period Income
541-00-00005899999 Contra Capital Lease pronts
541-00-00001227110 Capital Leases Payable-Current
541-00-00001227110 Capital Leases Payable-Current
PBC - To correctly adjust Capital Lease
Noncurrent Liability
566-00-00003447120 Green Fees
566-00-00003447410 Tournament Green Fees
566-00-00003447120 Green Fees
PBC - To adjust Golf Tournament Fees Revenue
Debit
421,346.00
234,392.00
110,911. 00
2,342.00
986.00
25,189.00
25,189.00
257,101.00
15,813.00
389.00
3,186.00
85,073.00
99,900.00
70,000.00
106,249.00
84,812.00
19,996.00
3,850.00
2,157.00
ADJUSTING JOURNAL ENTRIES - Pag 4 of 11
Page: 4
Prepared by: KOF
Reviewed by:
Credit
421,346.00
234,392.00
110,911.00
3,328.00
25,189.00
25,189.00
257,101.00
15,813.00
389.00
3,186.00
85,073.00
169,900.00
106,249.00
76,932.00
7,880.00
19,996.00
6,007.00
Cherry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 27 Posted
AJE 28 Posted
AJE 29 Posted
AJE .30 Posted
AJE 31 Posted
AJE 32 Posted
AJE 33 Posted
AJE 34 Posted
AJE 35 Posted
AJE 36 Posted
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Account/Code Description
541-00-00001227110 Capital Leases Payable-Current
541-00-00001254110 Capital Leases Pay-Noncurrent
PBC - To reverse 901 entry #20871
546-00-00001172110 Accrd Depreciation - Site Impr
546-00-00001174520 Accumulated Deprec-Bldg Improv
546-00-00001174510 Accumulated Depreciation - Bui
546-00-00001175520 Accumulated Depre-Vehicles
546-00-00001175510 Accumulated Depreciation - Mac
546-00-00001175570 Acc Dep-IT-Hardware
546-00-00001175550 Accumulated Depre-IT-Software
546-00-00001175540 Accumulated Depre-Office Equip
546-09-12105611110 Depreciation
546-09-12105611110 Depreciation
546-00-00001175120 Vehicles
546-00-00001175120 Vehicles
546-09-12105611110 Depreciation
546-00-00001172110 Accrd Depreciation - Site Impr
546-00-00001174520 Accumulated Deprec-Bldg Improv
546-00-00001174510 Accumulated Depreciation - Bui
546-00-00001175520 Accumulated Depre-Vehicles
546-00-00001175510 Accumulated Depreciation - Mac
546-00-00001175570 Acc Dep-IT-Hardware
546-00-00001175540 Accumulated Depre-Office Equip
546-09-12105611110 Depreciation
PBC - CIP received for sales tax on this date
274-00-00001131120 Due from Agencies
274-00-00003341117 GEMA-Homeland Security Grant
PBC - 2004 Grant money not received until
2005
271-00-00001128110 Notes Receivable
271-00-00003891110 Miscellaneous Income
PBC - AJE for Note Receivable interest
546-00-00003311112 Federal Transit Operating Asst
546-00-00001127111 Inter Gov't - Due from Federal
546-00-00003341110 Ga-Transit Operating Asst
546-00-00001127112 Inter Gov't - Due from State
To reverse grants receivable not yet applied
for.
101-00-00001212130 AP - Accrued Expenses-Col Auth
101-00-00001111410 Consolidated Cash
296-00-00001212130 AP - Accrued Expenses-Col Auth
296-00-00001111410 Consolidated Cash
PBC - Transfer payments to Fund 296
296-00-00001212310 AP - Accrued Expenses-General
296-00-00001212130 AP - Accrued Expenses-Col Auth
PBC - Transfer from Object code 1212130 to
1212310
101-01-51205212124 Internal Audit Services
101-00-00001111410 Consolidated Cash
296-00-00001119110 Accounts Receivable
296-00-00001111410 Consolidated Cash
PBC - Transfer Baird Hotel-Motel Pmnt to
Fund 296
296-00-00001212310 AP - Accrued Expenses-General
296-00-00001119110 Accounts Receivable
PBC - To reverse duplicated accrual
296-00-00001119110 Accounts Receivable
296-00-00001212310 AP - Accrued Expenses-General
296-00-00001212310 AP - Accrued Expenses-General
Debit
27,875.00
8,588.00
37,159.00
832,256.00
2,726,044.00
121,221.00
4,962.00
410,949.00
1,898.00
477,921.00
477,919.00
501,474.00
40,665.00
42,920.00
814,609.00
104,326.00
530,910.00
530,910.00
153,390.00
1,340.00
1,340.00
9,249.00
19,624.00
PBC - Reclass Ba~t>~~ ~RNAL ENTRIES - Pag ~ 5 of 11
Page: 5
Prepared by: KOF
Reviewed by:
Credit
27,875.00
4,143,075.00
477,921.00
477,921.00
2,712.00
2,849.00
72,974.00
415,497.00
2,995.00
3,308.00
1,139.00
40,665.00
42,920.00
814,609.00
104,326.00
530,910.00
530,910.00
153,390.00
1,340.00
1,340.00
9,249.00
9,812.00
9,812.00
Cherry, B~kaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 37 Posted
AJE 38 Posted
AJE 39 Posted
AJE 40 Posted
AJE 41 Posted
AJE 42 Posted
AJE 43 Posted
AJE 44 Posted
AJE 45 Posted
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Account/Code
296-10-14105511101
101-00-00003417296
296-00-00001111410
101-00-00001111410
Description
IDC-GF Allocation
IDC-Recovery-Promotion Tourism
Consolidated Cash
Consolidated Cash
PBC - Reverse allocation
101-00-00001212130 AP - Accrued Expenses-Col Auth
101-05-44615711110 Intergovernmental Transfer
PBC - Actual EBT cost paid in '04 for '03
>accrued
272-02-12105424220 Software
272-00-00001212310 AP - Accrued Expenses-General
PBC - To correct A/P-Accrued Expense debit
balance.
901-00-00001192110 Amount To Be Provided
901-00-00001254110 Capital Leases Pay-Noncurrent
To adjust Non-GMA capital lease liability
901-00-00001192110 Amount To Be Provided
901-00-00001254210 GMA Leases
To adjust GMA Lease Liability in GLTDAG
551-08-11063492204 Into-Plane Fees
551-00-00001119118 A/R-Credit Cards
To adjust AR-credit cards to actual
101-00-00001116110 Taxes Receivable-Delinquent
101-00-00001115110 Taxes Receivable-Current
273-00-00001116110 Taxes Receivable-Delinquent
273-00-00001115110 Taxes Receivable-Current
101-00-00001116110 Taxes Receivable-Delinquent
101-00-00001111410 Consolidated Cash
273-00-00001116110 Taxes Receivable-Delinquent
273-00-00001111410 Consolidated Cash
273-00-00001116110 Taxes Receivable-Delinquent
273-00-00001111410 Consolidated Cash
101-00-00001116110 Taxes Receivable-Delinquent
101-00-00001111410 Consolidated Cash
271-00-00001116110 Taxes Receivable-Delinquent
271-00-00001115110 Taxes Receivable-Current
272-00-00001116110 Taxes Receivable-Delinquent
272-00-00001115110 Taxes Receivable-Current
274-00-00001116110 Taxes Receivable-Delinquent
274-00-00001115110 Taxes Receivable-Current
PBC - Correct transfer to delinquent
801-00-00001171110 Sites
801-00-00001171130 Site Improvements
801-00-00001174120 Building Improvements
801-00-00001174120 Building Improvements
801-00-00001175120 Vehicles
801-00-00001175150 Information Tech-Hardware
801-00-00001342210 Fund Balance-Unreserved, Undes
801-00-00001176110 Construction In Progress
801-00-00001175120 Vehicles
801-00-00001175130 Office Furniture
801-00-00001342210 Fund Balance-Unreserved, Undes
To record Capital Assets Prior Period
Adjustment and to adjust current period
activity in Govern. activities
626-00-00001175520 Accumulated Depre-Vehicles
626-01-64305611110 Depreciation
626-00-00001175520 Accumulated Depre-Vehicles
626-00-00001175120 Vehicles
To correct Accumulated Depreciation related
to vehicle disposal and to record additional
disposal of vehicle.
Debit
5,270.00
5,270.00
7,686.00
37,038.00
874,645.00
257,888.00
29,000.00
9,023.00
101,762.00
2,221.00
2,221.00
48,102.00
48,102.00
67,348.00
18,923.00
120,659.00
400.00
112,321. 00
29,946.00
4,910.00
10,068.00
13,928.00
1.00
41,784.00
13,928.00
ADJUSTING JOURNAL ENTRIES - Pag 6 of 11
Page: 6
Prepared by: KOF
Reviewed by:
Credit
5,270.00
5,270.00
7,686.00
37,038.00
874,645.00
257,888.00
29,000.00
9,023.00
101,762.00
2,221. 00
2,221.00
48,102.00
48,102.00
67,348.00
18,923.00
120,659.00
7,818.00
6,636.00
133,123.00
23,997.00
41,784.00
13,928.00
Cherry, B~kaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 46 Posted
AJE 47 Posted
AJE 48 Posted
AJE 49 Posted
AJE 50 Posted
AJE 51 Posted
Account/Code
101-00-00001115110
101-00-00001111410
272-00-00001115110
272-00-00001111410
272-00-00001115110
272-00-00001111410
101-00-00001115110
101-00-00001111410
101-00-00001115110
101-00-00001111410
273-00-00001115110
273-00-00001111410
101-00-00001115110
101-00-00001111410
272-00-00001115110
272-00-00001111410
272-00-00001115110
272-00-00001111410
101-00-00001115110
101-00-00001111410
101-00-00001115110
101-00-00001111410
273-00-00001115110
273-00-00001111410
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Description
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
Taxes Receivable-Current
Consolidated Cash
PBC - To correct check#881 and #10776
546-00-00001175520 Accumulated Depre-Vehicles
546-09-12105611110 Depreciation
To correct Accumulate Depreciation-Vehicles
in Transit Fund.
101-03-32125421110 Machinery
101-00-00003911999 Capital Lease Proceeds
541-00-00001175110 Machinery And Equipment
541-00-00001253110 Capital Leases - Non-GMA
To record Prior Period Adjustment for
Capital Lease liability in Waste Management
fund.
541-00-00001253110 Capital Leases - Non-GMA
541-04-42105224219 Other Equip or Veh Rental
541-00-00001175110 Machinery And Equipment
541-00-00001253110 Capital Leases - Non-GMA
541-00-00001253110 Capital Leases - Non-GMA
541-00-00001227110 Capital Leases Payable-Current
To record capital lease additions and to
reclassify capital lease payments in
Waste Management fund.
541-00-00001232110 AP Post Closure II A & B
541-04-42105111110 Perm Full-Time S&W-Requ1ar
541-04-42105223112 R & M - Equipment
541-04-42105212999 Other Professional Services
To reduce post closure liability for
expenses related to the closed cells A & B.
541-00-00001232110 AP Post Closure II A & B
541-00-00001232120 AP Post Closure II C
541-04-42105432220 Closure & Post Closure Care
To correct the post closure liabilities for
cells A, B & C
Page: 7
Prepared by: KOF
Reviewed by:
Debit Credit
157,135.00
157,135.00
157,135.00
157,135.00
1,352,635.00
1,352,635.00
1,352,635.00
1,352,635.00
956,399.00
956,399.00
956,399.00
956,399.00
41,573.00
41,573.00
41,573.00
41,573.00
357,866.00
357,866.00
357,866.00
357,866.00
253,034.00
253,034.00
253,034.00
253,034.00
477,921.00
477,921.00
229,415.00
229,415.00
191,746.00
191,746.00
151,812.00
151,812.00
834,711.00
834,711.00
342,563.00
342,563.00
76,522.00
20,018.00
15,188.00
41,316.00
18,047.00
400,338.00
382,291. 00
ADJUSTING JOURNAL ENTRIES - Page 7 of 11
C~erry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 52 Posted
Account/Code
101-01-11115127110
101-02-11115127110
101-03-11115127110
101-04-11115127110
101-05-11115127110
101-06-11115127110
101-00-00001111410
273-03-11115127110
273-00-00001111410
274-10-11105127110
274-00-00001111410
324-04-11955127110
324-00-00001111410
506-10-11105127110
506-00-00001111410
541-10-11105127110
541-00-00001111410
546-10-11105127110
546-00-00001111410
551-10-11105127110
551-00-00001111410
621-00-00001136120
621-00-00001111410
AUGUSTA-RICHMOND COUNTY
Journal Entries Report , Adjusting Entries
December 31, 2004
Page: 8
Prepared by: KOF
Reviewed by:
Description
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workman's Comp Escrow
Consolidated Cash
PBC: Reverse JE 21557 Escrow Allocation for
Worker's Compo
AJE 53 Posted
621-00-00001136120 Workman's Comp Escrow
621-00-00001111410 Consolidated Cash
101-00-00001136120 Workman's Comp Escrow
101-00-00001111410 Consolidated Cash
101-01-11115127110 Workers Compensation
101-02-11115127110 Workers Compensation
101-03-11115127110 Workers Compensation
101-04-11115127110 Workers Compensation
101-05-11115127110 Workers Compensation
101-06-11115127110 Workers Compensation
101-00-00001111410 Consolidated Cash
273-03-11115127110 Workers Compensation
273-00-00001111410 Consolidated Cash
274-10-11105127110 Workers Compensation
274-00-00001111410 Consolidated Cash
324-04-11955127110 Workers Compensation
324-00-00001111410 Consolidated Cash
506-10-11105127110 Workers Compensation
506-00-00001111410 Consolidated Cash
541-10-11105127110 Workers Compensation
541-00-00001111410 Consolidated Cash
546-10-11105127110 Workers Compensation
546-00-00001111410 Consolidated Cash
551-10-11105127110 Workers Compensation
551-00-00001111410 Consolidated Cash
621-00-00001136120 workman's Comp Escrow
621-00-00001111410 Consolidated Cash
AJE 54 Posted
PBC-To correct workers compo escrow account.
101-01-11115127110 Workers Compensation
101-02-11115127110 Workers Compensation
101-03-11115127110 Workers Compensation
101-04-11115127110 Workers Compensation
101-05-11115127110 Workers Compensation
101-06-11115127110 Workers Compensation
101-00-00001111410 Consolidated Cash
273-03-11115127110 Workers Compensation
273-00-00001111410 Consolidated Cash
274-10-11105127110 Workers Compensation
274-00-00001111410 Consolidated Cash
324-04-11955127110 Workers Compensation
324-00-00001111410 Consolidated Cash
506-10-11105127110 Workers Compensation
506-00-00001111410 Consolidated Cash
541-10-11105127110 Workers Compensation
541-00-00001111410 Consolidated Cash
546-10-11105127110 Workers Compensation
546-00-00001111410 Consolidated Cash
551-10-11105127110 Workers Compensation
551-00-00001111410 Consolidated Cash
621-00-00001136120 Workman's Comp Escrow
621-00-00001111410 Consolidated Cash
PBC-To correct workers compo escrow bank
account.
Debit
1,854.00
1,349.00
674.00
730.00
843.00
169.00
7,385.00
8,326.00
344.00
2,339.00
115.00
803.00
69.00
25,000.00
25,000.00
25,000.00
2,440.00
1,774.00
887.00
961.00
1,109.00
222.00
9,716.00
10,953.00
453.00
3,078.00
151.00
1,056.00
90.00
32,890.00
Credit
5,619.00
7,385.00
8,326.00
344.00
2,339.00
115.00
803.00
69.00
25,000.00
25,000.00
25,000.00
7,393.00
9,716.00
10,953.00
453.00
3,078.00
151.00
1,056.00
90.00
32,890.00
8,079.00
5,875.00
2,938.00
3,182.00
3,672.00
734.00
24,480.00
32,175.00
32,175.00
36,272.00
36,272.00
1,499.00
1,499.00
10,192.00
10,192.00
500.00
500.00
3,497 .00
3,497.00
300.00
300.00
108,914.00
108,914.00
ADJUSTING JOURNAL ENTRIES - Page 8 of 11
C~erry, Bekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Entry # Status
AJE 55 Posted
Page: 9
Prepared by: KOF
Reviewed by:
AJE 56 Posted
AJE 57 Posted
AJE 58 Posted
AJE 59 Posted
AJE 60 Posted
AJE 61 Posted
AJE 62 Posted
AJE 63 Posted
Account/Code
101-01-11115127110
101-02-11115127110
101-03-11115127110
101-04-11115127110
101-05-11115127110
101-06-11115127110
101-00-00001111410
273-03-11115127110
273-00-00001111410
274-10-11105127110
274-00-00001111410
324-04-11955127110
324-00-00001111410
506-10-11105127110
506-00-00001111410
541-10-11105127110
541-00-00001111410
546-10-11105127110
546-00-00001111410
551-10-11105127110
551-00-00001111410
621-00-00001136120
621-00-00001111410
Description
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers 'Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workers Compensation
Consolidated Cash
Workman's Comp Escrow
Consolidated Cash
PBC-To record worker's comp bank account.
274-00-00001115110 Taxes Receivable-Current
274-00-00001116110 Taxes Receivable-Delinquent
PBC-To adjust current taxes receivable and
delinquent taxes receivable to actual.
276-00-00001224190 Deferred Items-Misc.
276-00-00003111110 Real Property Tax-Curr Year
To properly record deferred revenue.
222-00-00001119310 Allow For UncoIl Accts Rec
222-07-52155751110 Payments to Others
222-00-00001128110 Notes Receivable
To write-off UDAG notes receivable
foreclosed and adjusted.
273-03-13105422910 Other Vehicles
273-00-00003911999 Capital Lease Proceeds
101-04-17105422910 Other Vehicles
101-00-00003911999 Capital Lease Proceeds
273-03-13105422910 Other Vehicles
273-00-00003911999 Capital Lease Proceeds
274-03-41105422910 Other Vehicles
274-00-00003911999 Capital Lease Proceeds
To record GMA draws in Governmental funds.
506-00-00001175120 Vehicles
506-00-00001254210 GMA Leases
To adjust GMA draws in Water & Sewer
222-00-00001114110 Accrued Interest-Cash/Cash Equ
222-07-52155751110 Payments to Others
To write-off accrued interest.
272-00-00001111410 Consolidated Cash
272-11-11106111631 GMA Lease Program
631-03-13103911272 Op Tsfr from Capital Outlay
631-00-00001111410 Consolidated Cash
To adjust GMA Lease Program Expense
101-00-00001341410 Fund Balance-Reserved For Inve
101-00-00001342210 Fund Balance-Unreserved, Undes
104-00-00001341410 Fund Balance-Reserved For Inve
104-00-00001342210 Fund Balance-Unreserved, Undes
To adjust Fund balance reserved for
inventory to actual.
Debit
56,547.00
74,318.00
83,781. 00
3,462.00
23,542.00
1,154.00
8,078.00
692.00
251,575.00
103,271.00
46,155.00
225,948.00
57,817.00
119,572.00
127,948.00
1,043,992.00
31,802.00
52,550.00
52,057.00
521,955.00
521,956.00
76,893.00
26,801.00
ADJUSTING JOURNAL ENTRIES - Pag~ 9 of 11
Credit
18,661.00
13,571.00
6,786.00
7,351.00
8,482.00
1,696.00
74,318.00
83,781.00
3,462.00
23,542.00
1,154.00
8,078.00
692.00
251,575.00
103,271.00
46,155.00
283,765.00
119,572.00
127,948.00
1,043,992.00
31,802.00
52,550.00
52,057.00
521,955.00
521,956.00
76,893.00
26,801.00
C~erry, B~kaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Page: 10
Prepared by: KOF
Reviewed by:
Entry # Status
AJE 64 Posted
Debit
Credit
2,500,000.00
Account/Code Description
101-00-00001341420 Fund Balance - Reserved For Operations
101-00-00001342210 Fund Balance-Unreserved, Undes
2,500,000.00
To designate funds for operations.
AJE 65 Posted
551-00-00001329111 Investmnt in Capital Asset-net
551-00-00001342210 Fund Balance-Unreserved, Undes
1,505,873.00
To adjust net assets invested in capital
assets (net of related debt) to actual.
AJE 66 Posted
272-00-00003934110 Other bond proceeds
272-00-00003911411 Op Tsfr from Debt Service
1,572,077.00
To reclassify balance to operating transfers.
AJE 67 Posted
216-00-00001119110 Accounts Receivable
216-00-00003425120 E911 Charges - Cellular
216-00-00003425120 E911 Charges - Cellular
216-00-00001111410 Consolidated Cash
215-00-00003425120 E911 Charges - Cellular
215-00-00001111410 Consolidated Cash
286,889.00
88,729.00
88,729.00
PBC- To record receivable for 911 payment
received 5/6/05 and to move 30% to Wireless
Phase
AJE 68 Posted
101-00-00001131110 Due From Other Funds
101-00-00001111410 Consolidated Cash
101-00-00001131110 Due From Other Funds
101-00-00001111410 Consolidated Cash
101-00-00001111410 Consolidated Cash
101-00-00001131110 Due From Other Funds
101-00-00001131110 Due From Other Funds
101-00-00001127110 Intergovernmental Receiva
14,341,902.00
40,991.00
32,312.00
175,643.00
To reclassify cash due to General Funds from
other funds.
1,505,873.00
1,572,077.00
286,889.00
88,729.00
88,729.00
14,341,902.00
40,991.00
32,312.00
175,643.00
AJE 69 Posted 271-00-00001131120 Due from Agencies 32,835.00
271-00-00003113110 Motor Vehicles - Current Year 32,835.00
101-00-00001131120 Due from Agencies 171,433.00
101-00-00003419430 Motor Vehicle Title Fees 1,201.00
101-00-00003416110 Motor Vehicle Tag ColI Fees 9,667.00
101-00-00003233110 Late Tag Penalty 5,350.00
101-00-00003416210 Wildlife Tag Fees 327.00
101-00-00003891110 Miscellaneous Income 582.00
101-00-00003419440 Lapsed Motor Vehicle Ins Fees 3,835.00
101-00-00003419410 Commissions on Tax Collections 7,915.00
101-00-00003113110 Motor Vehicles - Current Year 114,957.00
101-00-00001111410 Consolidated Cash 28,763.00
272-00-00003113110 Motor Vehicles - Current Year 13,079.00
272-00-00001111410 Consolidated Cash 13,079.00
411-00-00003113110 Motor Vehicles - Current Year 5.00
411-00-00001111410 Consolidated Cash 5.00
274-00-00003113110 Motor Vehicles - Current Year 15,679.00
274-00-00001111410 Consolidated Cash 15,679.00
PBC-Due from check 24082,24065,24066,24062
AJE 70 Posted 101-00-00001131120 Due from Agencies 84,466.00
101-00-00001119110 Accounts Receivable 84,466.00
273-00-00001131120 Due from Agencies 2,547.00
273-00-00001119110 Accounts Receivable 2,547.00
101-00-00001131120 Due from Agencies 15,978.00
101-00-00001119110 Accounts Receivable 15,978.00
101-00-00001131120 Due from Agencies 626,369.00
101-00-00001119110 Accounts Receivable 626,369.00
208-00-00001131120 Due from Agencies 1,200.00
208-00-00001119110 Accounts Receivable 1,200.00
272-00-00001131120 Due from Agencies 5,573.00
272-00-00001119110 Accounts Receivable 5,573.00
273-00-00001131120 Due from Agencies 51,124.00
273-00-00001119110 Accounts Receivable 51,124.00
PBC-Due from Probate, Civil Court, Clerk of
Court
ADJUSTING JOURNAL ENTRIES - Page 10 of 11
~erry, ~ekaert & Holland, L.L.P.
AUGUSTA
07/11/2005 7:50AM
Entry # Status
AJE 71 Posted
AJE 72 Posted
AJE 73 Posted
AJE 74 Posted
AJE 75 Posted
AJE 76 Posted
AUGUSTA-RICHMOND COUNTY
Journal Entries Report : Adjusting Entries
December 31, 2004
Page: 11
Prepared by: KOF
Reviewed by:
Account/Code
611-00-00001342210
611-00-00001329111
626-00-00001342210
626-00-00001329111
541-00-00001336110
541-00-00001329111
566-00-00001342210
566-00-00001329111
546-00-00001336110
546-00-00001329111
552-00-00001336110
552-00-00001329111
Description
Fund Balance-Unreserved, Undes
Investmnt in Capital Asset-net
Fund Balance-Unreserved, Undes
Investmnt in Capital Asset-net
Retained Earnings-Unreserved
Investmnt in Capital Asset-net
Fund Balance-Unreserved, Undes
Investmnt in Capital Asset-net
Retained Earnings-Unreserved
Investmnt in Capital Asset-net
Retained Earnings-Unreserved
Investmnt in Capital Asset-net
Debit Credit
108,324.00
108,324.00
36,770.00
36,770.00
865,949.00
865,949.00
36,557.00
36,557.00
189,437.00
189,437.00
68,552.00
68,552.00
To adjust categories of net assets for
internal service funds and enterprise funds
506-00-00001128111 Note receivable - current
506-00-00001119110 Accounts Receivable
500,000.00
500,000.00
To reclassify $500k from accounts receivable
to note receivable, for separate line item
presentation (per Steve Little)
506-00-00001311110 Investment In General Fixed As
506-00-00001341920 FB-Reserved for Extraord Loss
506-00-00001342210 Fund Balance-Unreserved, Undes
31,718,183.00
7,458,756.00
24,259,427.00
To adjust W&S net assets.
543-00-00001226710 Revenue Bonds Payable
543-00-00001226709 Revenue bonds payable-current portion
1,445,000.00
1,445,000.00
To reclassify current portion of Waste
Management Bond Issue
543-00-00001153150 2004 Revenue bonds issuance costs
543-61-11305841110 Issuance costs
543-61-11305841110 Issuance costs
543-00-00001153150 2004 Revenue bonds issuance costs
188,364.00
188,364.00
6,279.00
6,279.00
To correct bond issue costs and amortization
for 2004 revenue bond issuance
551-00-00001172110 Accrd Depreciation - Site Impr
551-00-00001174510 Accumulated Depreciation - Bui
551-00-00001174520 Accumulated Deprec-Bldg Improv
551-00-00001175510 Accumulated Depreciation - Mac
551-00-00001175520 Accumulated Depre-Vehicles
551-00-00001173110 Accumulated Depreciation - Inf
551-08-11015611110 Depreciation
551-00-00001329111 Investmnt in Capital Asset-net
551-00-00001342210 Fund Balance-Unreserved, Undes
475,639.00
176,157.00
157,126.00
23,898.00
1,428.00
65,423.00
413,655.00
413,655.00
413,655.00
To adjust accumulated depreciation to actual
AJE 77 Posted 510-00-00001176110 Construction In Progress 2,548,243.00
510-61-11305831110 Bonds-Interest 2,548,243.00
509-00-00001176110 Construction In Progress 559,957.00
510-61-11305831110 Bonds-Interest 559,957.00
506-00-00001311110 Investment In General Fixed As 2,548,243.00
506-00-00001311110 Investment In General Fixed As 559,957.00
506-00-00001336110 Retained EarningS-Unreserved 1,988,286.00
TOTALS
To record capitalized interest
97,851,398.00
97,851,398.00
ADJUSTING JOURNAL ENTRIES - Page 11 of 11
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AUGUST A, GEORGIA
I
Annual Financial Report
Year Ended December 31,2004
I
Table of Contents
I.
INTRODUCTORY SECTION
Page
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TRANS MITT AL LETTER
i-vii
LISTING OF ELECTED AND APPOINTED OFFICIAL
viii - x
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FINANCIAL SECTION
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
1-2
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MANAGEMENT'S DISCUSSION AND ANALYSIS
4 - 16
BASIC FINANCIAL STATEMENTS
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Government-wide Financial Statements:
Statement of Net Assets
21
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Statement of Activities
22-23
Fund Financial Statements:
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Balance Sheet - Governmental Funds
26-27
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Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Assets
29
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
30-31
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Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
33
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-
General Fund
34
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
Fire Protection Fund
35
Statement of Net Assets - Proprietary Funds
36
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Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds
37
Statement of Cash Flows - Proprietary Funds
38 - 39
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Statement of Fiduciary Net Assets - Fiduciary Funds
40
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Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
41
Notes to Financial Statements
45 - 81
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AUGUSTA, GEORGIA
Annual Financial Report
Year Ended December 31,2004
Table of Contents (continued)
REQUIRED SUPPLEMENTARY INFORMA nON
Pension Plans- Required Supplementary Information - Schedules of Funding Progress
Pension Plans - Required Supplementary Information - Schedules of Employer Contributions and
Notes to Required Schedules
COMBINING AND INDIVIDUAL FUND STATEMENTS
NONMA.JOR GOVERNMENTAL FUNDS
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
Combining Balance Sheet - Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -
Nonmajor Special Revenue Funds
Urban Services District Fund
Emergency Telephone System Fund
Capital Outlay Fund
Law Enforcement Fund
Occupation Tax Fund
Special Assessment Fund
PromotionITourism Fund
Housing and Neighborhood Development Fund
Urban Development Action Grant Fund
Federal Drug Fund
State Drug Fund
Law Library Fund
5% Victim's Crime Assistance Fund
Supplemental Juvenile Service Fund
Weed and Seed Federal Grant Fund
Wireless Phase Fund
Community Greenspace Fund
Perpetual Care - I Fund
Landbank Authority Fund
Canine Forfeitures Fund
NPDES Permit Fees Fund
Combining Balance Sheet - Nonmajor Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt
Service Funds
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83 - 84
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85 - 87
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92 - 93
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94 - 95
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96 - 99
100 - 103
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105
106
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108
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110
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113
114
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AUGUST A, GEORGIA
I
Annual Financial Report
Year Ended December 31,2004
I
Table of Contents (continued)
Page
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Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -
Nonmajor Debt Service Funds
Debt Service Fund
Urban Debt Service
127
128
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Combining Balance Sheet - Nonmajor Capital Project Funds
129
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Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Capital Project Funds
130
NONMAJOR ENTERPRISE FUNDS
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Combining Statement of Net Assets - Nonmajor Enterprise Funds
132 - 133
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Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Nonmajor Enterprise Funds
134 - 135
Combining Statement of Cash Flows - Nonm,yOf Enterprise Funds
I INTERNAL SERVICE FUNDS
136-139
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Combining Statement of Net Assets - Internal Service Funds
142 - 143
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets-
Internal Service Funds
144 - l45
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Combining Statement of Cash Flows - Internal Service Funds
146 - 149
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FIDUCIARY FUNDS
Combining Statement of Fiduciary Net Assets - Pension Trust Funds
154
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Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
155
Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds
158 - 159
I COMPLIANCE SECTION
Schedule of Expenditures of Federal Awards
162 - 163
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Notes to Schedule of Expenditures of Federal Awards 164
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Summary Schedule of Prior Audit Findings 165 - 166
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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 167
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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-133 168 - 169
Schedule of Findings and Questioned Costs
170 - 173
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FINANCE DEPARTMENT
David Persuad, MPA, CGFM, CPE, Finance Director
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June 13, 2005
The Honorable Mayor Bob Young
Members of the Augusta-Richmond County Commission
Augusta, Georgia 30911
State law requires that all general-purpose local governments publish within six months
of the dose of each fiscal year a complete set of financial statements presented in
conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards by a firm of licensed certified
public accountants. Pursuant to that requirement, is hereby submitted the annual
financial report of Augusta, Georgia for the fiscal year ended December 31, 2004.
This report consists of management's representations concerning the finances of Augusta,
Georgia. Consequently, management assumes full responsibility for the completeness
and reliability of all of the information presented in this report. To provide a reasonable
basis for making these representations, management of Augusta, Georgia has established
a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of Augusta, Georgia financial statement in conformity
with GAAP. Because the cost of internal controls should not outweigh their benefits, the
Augusta, Georgia comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, I assert that, to the best of my
knowledge and belief, this financial report is complete and reliable in all material
respects.
Augusta, Georgia financial statements have been audited by Cherry Bekaert & Holland,
L.L.P., a firm of licensed certified public accountants. The goal of the independent audit
was to provide reasonable assurance that the financial statements of Augusta, Georgia for
the fiscal year ended December 31, 2004 are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts
and disdosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditors conduded, based upon the audit, that there was a
reasonable basis for rendering unqualified opinions that Augusta, Georgia's financial
statements for the fiscal year ended Decerriber 31, 2004, are fairly presented in
conformity with GAAP. The independent auditors' report is presented as the first
component of the financial section of this report.
530 Greene Street, Room 207 Augusta, Georgia 3091 \ (706) 821-2429 (Office) (706) 821-2520 (Fax)
www.augustaga.gov
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The independent audit of the financial statements of Augusta, Georgia was part of a
broader, federally mandated "Single Audit" designed to meet the special needs of federal
grantor agencies. The standards governing Single Audit engagements require the
independent auditors to report not only on the fair presentation of the financial
statements, but also on the audited government's internal controls and compliance with
legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are induded in Augusta,
Georgia's Single Audit section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis
to accompany the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and
should be read in conjunction with it. The Augusta, Georgia MD&A can be found
immediately following the report of the independent auditors.
Profile of the Government
Augusta is located in the east central section of the state on the south bank of the
Savannah River, which serves as the boundary between Georgia and South Carolina.
Augusta is on the fall line and has landscape dotted with foothills which descend to the
coastal plain. Augusta is the head of the navigation on the Savannah River and is 135
miles east of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles
southwest of Columbia, South Carolina. Augusta is the trade center for 13 counties in
Georgia and five in South Carolina, a section known as the Central Savannah River Area.
The Government was created by legislative act in the Sate of Georgia in 1995 from the
unification of the two governments, the City of Augusta, Georgia and Richmond County,
Georgia. On June 20, 1995, the citizens of Richmond County and the City of Augusta
voted to consolidate into one government named Augusta, Georgia. The officials for the
new government were elected and, based on the charter, took office on January 1, 1996.
The unified government combined all functions and began fmancial operations January 1,
1996.
The Government is governed by a full-time Mayor, with a term of four years, and a ten
member Commission, who serve on a part-time basis and are elected to staggered terms
of four years. The Mayor and Commission appoint an Administrator who serves as a
full-time administrative officer and .is responsible for the daily operations of the
Government.
Augusta provides a full range of services, induding public safety and fire protection; the
construction and maintenance of highways, streets, and other infrastructure; recreational
activities and cultural events. Sanitation services, water and sewer services, transportation
services and other administrative and governmental services are also provided by the
Consolidated Government. Augusta also is financially accountable for the legally
separate Richmond County Department of Health which is reported separately within
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Augusta's financial statements. Additional information on this legally separate entity can
be found in Note IB. in the notes to the financial statements.
The annual budget serves as the foundation for Augusta's financial planning and control.
All agencies of Augusta are required to submit requests for appropriation to the
government's administration before the month of July each year. The government's
Administrator uses these requests as the starting point for developing a proposed budget.
The government's Administrator then presents this proposed budget to the Commission
for review prior to October 31. The Commission is required to hold public hearings on
the proposed budget and to adopt a final budget by no later than December 31, the close
of Augusta's fiscal year. The appropriated budget is prepared by fund, function (e.g.
Public Safety), and department (Sheriff Road Patrol). Department heads may make
transfers of appropriations within a department. Transfers of appropriations between
departments, however, require the special approval of the governing commission.
Budget-to-actual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the
general fund, this comparison is presented as part of the basic financial statements for the
governmental funds. For governmental funds, other than the general fund, with
appropriated annual budgets, this comparison is presented in the governmental fund
subsection of this report. Also induded in the governmental fund subsection are project-
length budget-to-actual comparisons for each governmental fund for which a project-
length budget has been adopted.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which
Augusta operates.
Local economy. Augusta, located in the heart of the Southeast, is Georgia's second
largest and second oldest city. According to the magazine "Where to Retire", Augusta is
ranked number four among the nation's low-cost cities for retirement. This is partially
based on a variety of factors including cost of living, transportation, higher education, job
outlook, health care, the arts, recreation and dimate.
Bolstered by nearly half a million residents, the area's economy as a whole is much like
that of its health care sector: dean, high tech and well supplied with skilled workers. In
addition to a strong sense of history and related attractions, the city offers a rich variety
of sophisticated amenities induding a vibrant arts community and a wealth of fine
restaurants.
The Augusta's Southern hospitality is evident from the temperate climate to the year-
round greenery that reminds residents and visitors alike of Augusta's designation as the
Garden City.
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The MSA has a strong, stable economy, composed of (1) an extensive base of
manufacturers; (2) a core of technology-based employers; and (3) an expanding service
sector.
The diverse industrial base includes production of medical products, pharmaceuticals,
golf carts, chemicals, industrial tools, textiles among others.
Health care, a technology-based employer in the region, employs more than 25,000
medical professionals. The Medical College of Georgia (MCG) is ranked as one of the
top 20 medical schools in the nation and is Georgia's Health Sciences University. MCG
has schools of Dentistry, Allied Health Sciences, Nursing and Graduate studies, as well
as Medicine. A pioneer in telemedicine, MCG has received national recognition for its
efforts in this field. MCG serves patients from all over the southeast, with over 80 dinics
centrally located within one building. More than a dozen other major medical facilities
are located in the region.
The U.S. Army Signal Center and Fort Gordon, the largest communications electronics
training center in the world, rounds out Augusta's technology-based economy. The center
has advanced communications technology, adapting the telephone to military usage by
incorporating satellite communications and computer technology.
In addition, Fort Gordon is home to the Army's Computer Science School and home to a
joint services intelligence organization that supports the Department of Defense. The
teaching facilities at Eisenhower Army Medical Center (EAMC) serve as a regional tri-
service medical center serving 5 southeastern states and Puerto Rico.
At the center of the technology-based employers is the Savannah River Site (SRS), a U.S.
Department of Energy (DOE) facility, which comprises a majority of the MSA's
economy with over 13,000 employees. The Site's mission is to reduce nudear danger by
transferring applied environmental technology to government and non-government
entities deaning up the site, managing the waste and forming economic and industrial
alliances.
SRS has a significant economic impact across the two states, affecting more than a dozen
counties. The current annual budget of SRS is $1.6 billion, including a payroll of
approximately $900 million.
Westinghouse Savannah River Company (WSRC) is responsible for the day-to-day
operations of the nudear facility. Other major contractors on the site indude Bechtel
Savannah River Inc., Babcock & Wilcox Group (B & W Savannah River Company) and
British Nudear Fuels Limited (BNFL Savannah River Company).
The economic outlook is sound, with moderate employment gains expected over the short
term. The Augusta economy is expected to continue to benefit from a diverse economic
. base and strategic location in the southeast region.
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Augusta is also proud host each spring of the Masters Golf Tournament, the sports most
prestigious event. Since 1934, the golf course designed by Bobby Jones and Clifford
Roberts has awed spectators for one week each April with its lush and brilliant foliage.
There are 7 other private and 16 public golf courses in Augusta.
Long-term financial planning. The governing commission approved the fiscal year
2005 budget totaling $749 million with emphasis on controlling the cost of government
services. The budget will provide the level of services in fiscal year 2005 consistent with
fiscal year 2004. More emphasis will be placed on managing for results by utilizing a
program performance basis of budgeting in fiscal year 2005. This is a departure from the
previous years line-item budgeting approach. The concept of program-performance
budgeting will provide department managers with an opportunity to establish program
goals and objectives and develop relative performance measures to measure program
performance and results.
During fiscal year 2004 the Finance Department revised the comprehensive five year
2005-2009 capital improvements program budget totaling over $300 million. This long-
term fiscal plan is a strategic planning document consisting of an evaluation of all the
capital and infrastructure needs and capital improvements necessary to allow the
government to plan for capital assets acquisition and replacement for the next five years.
The plan is updated annually to reflect the City's infrastructure needs.
The Special Purpose Local Option Sales Tax (SPLOST) for the current period 2001-2005
will generate an estimated $160 million for capital projects. This dedicated one cent
sales tax provides the government with a method of funding essential on-going capital
projects and provide funds for major capital needs. Discussions are in place to extend the
SPLOST over the next period in the range of 5 to 10 years.
The Augusta Utilities Department owns and operates the water treatment distribution
facilities as well as the waste water conveyance and treatment facilities. The current
water system serves over 60,305 residential customers and 7,890 commercial and
industrial customers. The service area encompasses approximately 210 square miles
serving an estimated population in excess of 180,000. Water is supplied by the Savannah
River and supplemented by ground water wells through out the county.
The current waste water system serves approximately 47,153 residential and 5,873
commercial and industrial customers. The service area encompasses 106 square miles
with an estimated population of 160,000.
Cash management policies and practices. Cash temporarily idle during the year was
invested in certificates of deposit and the State Treasurer's investment pool. The
maturities of the investments range form 30 days to 2 years, with an average maturity of
12 months. The average yield on investments was 1.34 percent for the government and an
average yield of 6.54 percent for the pension trust fund defined benefit plans. The rate of
return for the pension trust fund is attributable to the long-term character of most of its
investment holdings and the dismal year for the U.S. equity investors. Investment
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income includes appreciation in the fair value of investments. Increases in fair value
during the current year, however, do not necessarily represent trends that will continue;
nor is it always possible to realize such amounts, especially in the case of temporary
changes in the fair value of investments that the government intends to hold to maturity.
Risk management. In 2003, the Risk Management program was transferred from the
Human Resources Department to the Finance Department.
During 2004, Risk Management continued to provide training for safety, substance abuse
awareness and driver training education program. Safety initiatives and daims
administrative services for workers compensation was successfully bid out to a new firm
in 2004. Likewise the commercial property insurance was awarded to another firm
through competitive bidding in 2004.
The Loss Control Division introduced the driver training program in 2003 with 467
employees completing the training in 2004 and 577 in 2003. Another successful safety
program introduced in 2003 is the safety briefing program. This program involved
counseling the injured employee along with the respective supervisor. During 2004, 95
briefings were held with various employees in the City. The program has shown
considerable results with dedine in accidents and injuries. Reported daims for injuries
were 481 in 2001, 486 in 2002, 466 in 2003 and 376 in 2004.
In the area of claims administration for 2004 there were 145 automobile liability claims,
143 claims for damage to city vehides, 49 general liability daims, 17 property damage
daims and 2 law enforcement liabilities daims. These daims were less than the 2003
experience. The Risk Management program also provided random drug testing during
the year to enforce a drug free work environment.
The goals outlined for the 2005 Risk Management program will be a continuation of the
2005 programs with focus on safety awareness driver training program and other related
training.
Fleet Management: The Fleet maintenance services are accounted for in an Internal
Service Fund with monthly allocations to all user departments, Contract maintenance
represented 54% of all costs, non-contract maintenance represented 10%, fuel represented
30% and fleet operating costs represented 6% of the total expenses. Maintenance service
was provided by First Vehicle Services. In 2004, 11,752 work orders were completed at
a cost of each work order at $326. In 2003 the average cost per work order was $313.
This is an increase per work order of $13 due to the increase costs of fuel and inflationary
costs for parts. The lease payments to the Georgia Municipal Association for vehides
and equipment of all funds remain relatively constant from year to year. Fleet
Management's goals for 2005 are to continue to provide quality repairs at the lowest cost.
Specific Goals for FY 2005 indudes: (1) Improve maintenance facilities, (2) Implement
audit and inspection processes to ensure accountability of parts and parts costs, proper
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invoicing for all non-contract cost repairs and (3) provide more accurate budget data to
user departments for budget preparation.
Acknowledgements
The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the finance department. I would like to express
my appreciation to all members of the department who assisted and contributed to the
preparation of this report. Credit also must be given to the Mayor and the governing
commission for their unfailing support for maintaining the highest standards of
professionalism in the management of Augusta's finances.
Respectfully submitted,
VB
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Elected Officials December 31, 2004
Mayor Bob Young
One Seventh St., Suite 1801
Augusta, Georgia 30909
Betty Beard - District One
One Seventh St., Suite 1703
River Place Condos
Augusta, Georgia 30901
(706) 724-0916 (Home)
(706) 832-8331 (Message Ctr)
Marion Williams - District Two
1941 Kratha Drive
Augusta, Georgia 30906
(706) 733-2128 (Home)
(706) 821-1838 (Fax)
Barbara Sims - District Three
10 Retreat Road
Augusta, Georgia 30901
(706) 733-1410 (Home)
Richard Colclough - District Four
3508 Monte Carlo Drive
Augusta, Georgia 30906
(706) 821-1823 (Bus)
(706) 821-1838 (Fax)
Bobby Hankerson - District 5
3312 Balkcom Drive
Augusta, Georgia 30906
(706) 790-9199 (Home)
(706) 855-2401 (pager)
(706) 771-6006 (pager)
Andy Cheek - District 6
2129 Howard Road
Augusta, Georgia 30906
(706) 798-3890 (Home)
Tommy Boyles - District 7
2711 Boar's Head Drive
Augusta, Georgia 30907
(706) 863-5249 (Home)
(706) 821-1838 (Fax)
(706) 771-6006 (Pager)
Jimmy Smith - District 8
1332 Brown Road
Augusta, Georgia 30815
(706) 798-3890 (Home)
William Mays, III - District 9
Mayor Pro-Tempore
1221 James Brown Blvd.
Augusta, Georgia 30903
(706) 722-6401 (Bus)
(706) 722-7018 (Fax)
Don Grantham - District 10
808 Quail Court
Augusta, Georgia 30909
(706) 738-2331 (Home)
(706) 738-7786 (Bus)
(706) 733-4741 (Fax)
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Appointed Officials December 31, 2004
Frederick L. Russell
Interim Administrator
530 Greene Street - Rm 801
Augusta, Georgia 30911
(706) 821-2400
(706) 821-2819 (Fax)
Tameka Allen
Interim Deputy Administrator
530 Greene Street - Rm 801
Augusta, Georgia 30911
(706) 821-2400
(706) 821-2819 (Fax)
Robert Leverett
Interim Deputy Administrator
530 Greene Street - Rm 801
Augusta, Georgia 30911
(706) 821-2400
(706) 821-2819 (Fax)
Lena Bonner
Clerk of Commission
530 Greene Street - Rm 806
Augusta, Georgia 30911
(706) 821-1820
(706) 821-1838 (Fax)
David Persaud
Finance Director
530 Greene Street - Rm 207
Augusta, Georgia 30911
(706) 821-2429
(706) 821-2502 (Fax)
Steve Sheperd
County Attorney
701 Greene Street
Augusta, Georgia 30903
(706) 736-8884
(706) 722-4817 (Fax)
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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 31,2004 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. Those financial statements were audited by other auditors whose report thereon has been furnished to
us, and our opinion, insofar as it relates to the amounts included for the Department of Health, is based solely on
the report of the other auditors.
Except as disclosed in the following paragraph, 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.
The financial statements of the Downtown Development Authority (DDA) have not been audited, and we were
not engaged to audit the DDA financial statements as part of our audit of Augusta, Georgia's basic financial
statements. DDA's financial activities are included in Augusta, Georgia's basic financial statements as a
discretely presented component unit and represent 17.3 percent, 1.4 percent, and 1.1 percent of the assets, net
assets, and revenues, respectively, of Augusta, Georgia's aggregate discretely presented component units.
In our opinion, based upon our audit and the report of other auditors, and except for the effects of such
adjustments, if any, as might have been determined to be necessary had DDA's financial statements been
audited, 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, 2004, 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.
1
In accordance with Government Auditing Standards, we have also issued our report dated May 17,2005 on our
consideration of Augusta, Georgia's internal control over financial reporting and on our tests ofits 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 should be considered in assessing the results of our audit.
Management's Discussion and Analysis and the schedules of funding progress and employer contributions are
not a required part of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit this information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Augusta, Georgia's basic financial statements. The introductory section, the combining and individual
fund statements and the accompanying schedule of expenditures of Federal awards as required by U.S. Office of
Management and Budget Circular A-l33, Audits of States, Local Governments and Non-Profit Organizations
for the year ended December 31, 2004, are presented for purposes of additional analysis and are not a required
part of the basic financial statements. The combining and individual fund statements and the accompanying
schedule of expenditures of Federal awards have been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory section has not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.
~, ~~ 7~.~ l; '-:I!
Augusta, Georgia
May 17,2005
2
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Management's Discussion & Analysis
I
The Management's Discussion and Analysis of the Comprehensive Annual financial Report (CAFR) of
Augusta, Georgia (the "Government") provides an overall narrative and analysis of the Government's
[mancial statements for the fIscal year ended December 31,2004. This discussion and analysis is designed
to look at the Government's [mancial performance as a whole. Readers should also review the additional
information provided in the transmittal letter, which can be found preceding this narrative, and the
complete [mancial statements, with notes, which follow this narrative, to enhance their understanding of the
Government's [mancial performance.
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Financial Highlights
I
Key [mandai highlights for the year ended December 31, 2004 are as follows:
. The Government's combined net assets totaled $602.7 million.
I
. The Government's total net assets increased by $27 million, primarily due to capital spending
funded by the Special Purpose Local Option Sales Tax revenues, other tax revenues.
I
. As of the close of the current fIscal year, the Government's governmental funds reported
combined ending fund balances of $190 million, an increase of $14 million from the prior year.
Approximately 86% of this total amount, or $164 million, is available for spending at the
government's discretion (unreservedfund balance).
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I
. At the end of the current fiscal year, unreserved fund balance for the General Fund was $29
million, or 28% of total General Fund expenditures for the fiscal year. Of this amount, $17
million has been designated for other purposes, leaving $22 million, or 22% of total General Fund
fund balance, as undesignated.
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. Combined Revenue totaled $266 million, of which governmental activities totaled $175 million
and business-type activities totaled $91 million. Current year revenues increased approximately
4% from those of the prior year.
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. Overall expenses totaled $236 million of which governmental activities totaled $152 million and
business-type activities totaled $84 million. Current year expenses increased approximately 3%
over those of the prior year.
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. Expenses of governmental activities exceeded program revenue by $116 million, resulting in the
use of general revenues (mostly taxes).
I
. Total Outstanding Long-Term Debt, excluding compensated absences, increased approximately
$186 million mainly due to the issuance of two new debts. The City issued $160 million Water
and Sewer revenue bonds and $11.5 million Solid Waste Management Revenue Bonds.
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4
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Overview of the Financial Statements
I
This discussion and analysis is intended to serve as an introduction to the Government's basic financial
statements. The basic financial statements consist of three components: I) government-wide [mancial
statements, 2) fund financial statements, and 3) notes to the [mancial statements. The basic financial
statements present two different views of the Government through the use of government-wide statements
and fund [mancial statements. In addition to the basic [mancial statements, this report contains other
supplemental information that will enhance the reader's understanding of the financial condition of the
Government.
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Required Components of Annual Financial Report
Figure 1
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Management's
Discussion and
Analysis
Basic
Financial
Statements
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Government-
Wide Financial
Statements
1
Fund
Financial
Statements
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Notes to the
Financial
Statements
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Summary
. Detail
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Basic Financial Statements
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The first two statements in the basic [mancial statements are the Government-wide Financial Statements.
They provide both short and long-term information about the Government's [mancial status.
I
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.
I
The next section of the basic financial statements is the notes. The notes to the [mancial 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 [mancial statements.
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5
Government-wide Financial Statements
The Government-wide [mancial 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 [mancial 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 [mancial 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 net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will not result in cash flows until future fiscal
periods (e.g. uncollected taxes and earned but unused vacation leave). This statement also presents a
comparison between direct expense and program revenues for each function of the Government.
The government-wide statements are divided into three categories: I) governmental activities, 2) business-
type activities and 3) component units. The governmental activities include most of the Government's basic
services such as general administration, judicial services, public safety, public works, health and welfare,
culture and recreation,. and housing and development. Property taxes and state and federal grant funds
[mance most of these activities. The business-type activities are those services that the Government charges
a fee to customers in order to provide. These include Water and Sewer, Augusta Regional Airport, Waste
Management, Municipal Golf Course, Transit, Daniel Field Airport, Newman Tennis Center, Garbage
Collection, and the Riverwalk. The final category is component units. The Augusta-Richmond County
Board of Health is a public health department Although legally separate from the Government, the
Government appoints a voting majority of the board. Augusta Canal Authority and Downtown
Development Authority are component units.
Fund Financial Statements
A Fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Government, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with [mance-related legal requirements.
The fund [mancial statements focus on individual parts of the Government, reporting the Government's
operations in more detail than the government-wide statements. All of the funds of the Government can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds. These fund
categories use different accounting approaches and should be interpreted differently.
6
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Governmental Funds
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Most of the basic services provided by the Government are financed through governmental funds.
Governmental funds are used to account for essentially the same functions reported as government
activities in the government-wide fmancial statements. However, unlike the government-wide statements,
these funds focus on how assets can readily be converted into cash and the amount of funds left at year-end
that will be available for spending in the next year. Governmental funds are reported using an accounting
method called modified accrual accounting, which focuses on current fmancial resources. Such information
may be useful in evaluating the government's short-term fmancing requirements. These statements provide
a detailed short-term view of the Government's finances that assists in determining whether there will be
adequate fmancial resources available to meet the Government's current needs. The relationship between
government activities in the government-wide fmancial statements and the governmental funds fmancial
statements is described in a reconciliation that is a part of the fund financial statements.
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The Government has five governmental fund types: the General Fund, Special Revenue Funds, Debt
Service Funds, the Capital Projects Funds, and the Permanent Fund. Only four individual funds are being
considered major funds - the General Fund , Fire Protection, Special Purposes Local Option Sales Tax
Fund (SPLOST) Phase HI and Special Purposes Local Option Sales Tax Fund (SPLOST) Phase IV.
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Proprietary Funds
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The Government has two types of proprietary funds used to account for activities that operate similar to
commercial enterprises found in the private sector. Funds that charge fees for services provided to outside
customers including other local governments are known as Enterprise Funds. These funds are used to
report the same functions presented as business-type activities in the government-wide financial statements.
Funds that charge fees for services provided to departments within the reporting government are known as
Internal Service Funds. Proprietary funds use the accrual basis of accounting, thus there is no
reconciliation needed between the government-wide fmancial statements for business-type activities and
the proprietary fund financial statements.
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The Government has nine enterprise funds: Water and Sewer, Augusta Regional Airport, Waste
Management, Municipal Golf Course, Transit, Daniel Field Airport, Newman Tennis Center, Garbage
Collection, and the Riverwalk. The Government has seven internal service funds: Risk Management, Fleet
Operations, Workers Compensation, Employee Health Benefits, Unemployment, Long-Term Disability
Insurance and GMA Leases. The Water and Sewerage Fund and Augusta Regional Airport are the only
funds being considered major funds for presentation purposes.
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Fiduciary Funds
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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.
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Government-wide Financial Analysis
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Comparative data for the entity-wide governmental activities and the business-type activities is provided below.
The Government's Net Assets
December 31,2004 and 2003
Figure 2
Governmental Business-type Governmental Business-type
Activities Activities Total Activities Activities Total
2004 2004 2004 2003 2003 2003
Current and other assets S 235,592,282 S 361,214,099 S 596,806,381 S 221,272,018 S 217,765,947 S 439,037,965
Capital assets 223,405,241 346,809,475 570,214,716 218,091,918 305,509,501 523,601,419
Total assets 458,997,523 708,023,574 l, 167,021,097 439,363,936 523,275,448 962,639,384
Long -tenn liabilities 17,403,442 497,105,102 514,508,544 21,876,904 321,369,475 343,246,379
Other liabilities 31,877,636 17,929,148 49,806,784 27,226,754 16,552,039 43,778,793
T otalliabilites 49,281,078 515,034,250 564,315,328 49,103,658 337,921,514 387,025,172
Net assets:
Invested in
capital assets, net
of related debt 218,370,055 118,630,240 337,000,295 210,177,183 147,635,885 357,813,068
Restricted 135,934,662 15,214,050 151,148,712 67,963,626 7,755,294 75,718,920
Unrestricted 55,411,728 59,145,034 114,556,762 Il2,1I9,469 29,962,755 142,082,224
Total net S 409,716,445 $ 192,989,324 S 602,705,769 $ 390,260,278 $ 185,353,934 $ 575,614,212
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Net Assets
I Net assets may serve over time as one useful indicator ofa government's financial condition. The assets ofthe Government exceeded
liabilities by $602.7 million as of December 31, 2004.
I The largest portion of the Government's net assets, $337 million or 56%, reflects its investment in capital assets such as land,
buildings, equipment and infrastructure (road, bridges, sidewalks, water lines and sewer lines) less any related debt used to acquire
those assets that is still outstanding. The Government uses these capital assets to provide services to its citizens; therefore, these assets
I are not available for future spending. Although the Government's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
I An additional portion of the Government's net assets, $151 million or 25%, represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets, $115 million or 19%, may be used to meet the
I Government's ongoing obligations to citizens and creditors.
Several particular aspects of the Government's financial operations positively influenced the total unrestricted governmental net
I assets:
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Continued diligence in the collection of property taxes by maintaining a collection percentage of 99% for real and
personal property.
Continued low cost of debt due to the County's high bond rating.
Continued diligence in the maintenance of a 75 - 90 day unreserved fund balance 4esignated for operations in the
General Fund.
Issuance of$180 million revenue bonds retired with user fees.
Keeping the budgets balanced and containing government spending.
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The Government's Changes in Net Assets I
For the Years Ended December 31, 2004 and 2003
Figure 2 I
Governmental Business-type Governmental Business-type I
Activities Activities Total Activities Activities Total
2004 2004 2004 2003 2003 2003
Revenues: I
Program revenues:
Charges for services S 29,301,638 S 77,846,635 S 107,148,273 S 31,602,875 S 68,890,739 S 100,493,614
Operating grants and contributions 6,991,073 67.142 7,058,215 2,614,565 1.073.267 3,687,832
Capital grants and contributions 171,577 3,390.737 3,562.314 4,039.755 1,750.073 5,789,828 I
General revenues:
Property taxes 41.963,947 41.963.947 39,368,805 39,368,805
Other taxes 95.609.158 95.609.158 91,795,llO 91,795,1l0
Grants and contributions not restricted I
to specific programs 988.266 988,266 981.463 981,463
Unrestricted investment earnings 4,085,420 4,252.262 8,337.682 3,919,337 7,050,734 10,970.071
Gain on sale of assets 114,196 109,314 223,510 94,904 94,904
Miscellaneous 332,272 863,312 1,195,584 695,944 1,358,408 2,054,352 I
Total revenues 179.557,547 86,529,402 266,086,949 175,017.854 80,218,125 255,235,979
Expenses: I
GeneBl government 30,105,905 30.105,905 29.460,733 29,460,733
Judicial 13,652,452 13,652,452 12,450,759 12,450,759
Public safety 66,858,662 66,858,662 64,567,666 64,567,666
Public works 13,508,419 13,508,419 13,249,489 13,249,489 I
Health and welfare 3,948,666 3,948,666 2,619,851 2,619,851
Culture and recreation 16,724,492 16,724.492 16,920,689 16,920,689
Housing and development 7,218,695 7,218,695 7,182,503 7.182,503
Interest on long-term debt 329,684 329,684 433,690 433,690 I
Waste management 4,477.321 4,477,321 4,796,691 4,796.691
Water and sewer 50,139,547 50,139.547 50,260,882 50,260,882
Airports 12.1 12,350 12, 112,350 11,745,792 11,745,792
Municipal golf course 651,068 651,068 649,170 649,170 I
Transit 4,271,215 4,271,215 4,020,263 4,020,263
Newman Tennis Center 339.925 339,925 304,677 304,677
GaJbage Collection 11,283,548 11,283,548 11,030,722 11,030,722
Riverwalk 248,478 248,478 250,849 250,849 I
Total expenses 152,346,975 83,523,452 235,870,427 146,885,380 83,059,046 229.944,426
Increase in assets before transfers 27,210,572 3,005,950 30,216,522 28,132,474 (2,840,921 ) 25,291,553
Transfers (4,629,440) 4,629,440 (4,878,890) 4,878,890 I
Increase in net assets 22,581,132 7,635,390 30,216,522 23,253,584 2,037,969 25,291.553
Net assets, January I · I
390,173,484 185,353,934 575,527,418 366,406,138 181,694,547 548.100.685
Prior period adjustments (3,038,171) (3,038,17l) 600,556 1.621,418 2,221,974
Net assets, January I, as restated 387,135,313 185,353,934 572,489,247 367,006,694 183,315,965 550,322.659
Net assets, December 3 1 $ 409,716,445 $ 192,989,324 S 602,705,769 S 390,260,278 S 185,353,934 S 575,614,212 I
· 2004 net assets as restated for changes in component unit status I
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Government-Wide Expenses
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EI General
Government
20%
[] General
Govemment
13%
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. Other
1%
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E1Health and Welfare
2%
E1Transit
2%
13 Culture and Recreation
7%
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EI Garbage Collection
5%
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Government-Wide Revenues
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EI Grants and
contributions not
restricted to specific
programs
0%
.. Unrestricted
investment
earnings
3%
m Gain on sale of
assets
0%
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B Charges for
services
41%
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.. Other Taxes
36%
m Property Taxes
16%
.. Operating grants
o Capital granl:s-.artd and contributions
contributions 3%
1%
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II
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Changes in Net Assets
Governmental activities. Governmental activities increased the Government's net assets by $23 million, and thereby accounting for
75% ofthe total growth in the net assets ofthe Government. Key elements of this increase are as follows:
I
I
Governmental Revenues. Property and tax other taxes continue as the main source of a revenue of the Government
amounting to 90% in 2004, compared to 89% in 2003. Sales tax revenues contributed approximately $ 65 million to the
increase in net assets.
I
Governmental Functional Expenses: As reflected in the summary of changes in Net Assets, the Government
expended 53% of the appropriations for judicial and public safety expenditures. The Government continues to commit
substantial fmancial resources for the safety of its citizens. Other expenditures accounted for the remaining 47%.
I
Business-type activities: Business-type activities increased the Government's net assets by approximately $8 million accounting
for 25% of the total growth in the government's net assets. Key elements of this increase are as follows:
I
. The Waste Management Fund reported an increase in net assets of $2.5 million. This increase was due to increase in user
fees for services.
. The Water and Sewer Fund reported an increase in net assets of$3.8 million. This increase was largely due to an increase in
user charges due to the rate increase for new debts in 2004.
. The Augusta Regional Airport Fund reported an increase in net assets $3.9 million. This increase was largely due to
intergovernmental revenue received.
. Transit Authority net assets decrease of$ 1.4 million, primarily due to operating costs exceeding user charges and grants.
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Financial Analysis of the Government's Individual Funds
Augusta, Georgia uses fund accounting to demonstrate compliance with fmance-related legal requirements.
I
Governmental Funds
The focus of the Government's governmental funds is to provide information on near-term inflows, outflows and balances of usable
resources. Such information is useful in assessing the Government's fmandal requirements. In particular, the unreserved fund balance
may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The combined fund
balance of all the governmental funds is $189.6 million, of which $156.5 million, or 82.5%, is unreserved and undesignated.
I
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General Fund
The General Fund is the primary operating fund of the Government. At the end of the current fiscal year, total fund balance of the
General Fund was $30 million, of which $28.9 million, or 96%, was unreserved. A portion of the unreserved fund balance in the
General Fund is designated for operations and for risk benefit, in the amount of $2.5 million and $4.7 million, respectively. As a
measure of the General Fund's liquidity, it may be useful to compare both undesignated and designated fund balance to total fund
expenditures. As of December 31, 2004, total unreserved fund balance, both undesignated and designated, represents 28% of total
general fund expenditures.
I
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I
The fund balance of the General Fund decreased $2.1 million (-7%). A key factor to this increase was the use of fund balance totaling
$4.6 million to balance the FY 2004 General Fund Budget.
I
General Fund Budgetary Highlights
I
During the year, the Government revised the budget on several occasions. Generally, budget amendments fall into one of five
categories: I) amendments to appropriate fund balance for encumbrances from the prior year; 2) amendments made to adjust the
estimates that are used to prepare the original budget resolution once exact information is available; 3) amendments made to recognize
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12
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I new funding amounts from external sources, such as Federal and State grants; 4) increases in appropriations that become necessary to
maintain services; and 5) amendments to transfer appropriations between departments. The fifth category has no effect on the final
budget and, therefore, is not addressed in this narrative. For example, included in the original budget for the general government
I function was a contingency in the amount of approximately $1 million. During the year, the: Government transferred these funds to
other functions as needed. Total amendments to the General Fund increased expenditures and revenues/other fmancing sources by
$8.1 million or 8%.
I The actual operating revenues for the General Fund were more than the budgeted amount by $501,816, or less than 1%. The individual
sources within the revenues fluctuated both positively and negatively. No individual source materially varied from the fmal budget,
except for other revenues. In order to balance revenues with expenditures, the Government budgeted as a revenue $4.6 million of
I fund balance to be used for various expenditures.
As a result of superior budget management by all departments of the Government, actual operating expenditures were less than the
I budgeted amount by $1.1 million. For the year, actual revenue and other fmancing sources were under actual expenditures and other
financing uses by $2.1 million.
Capital Projects Funds
I The Government uses Capital Projects Funds to account for the acquisition and constructio[l of major capital facilities that are not
fmanced by Proprietary Funds. A major fund included in the fund financial statementsls the 2001-2005 SPLOST Fund. The
I proceeds of the special purpose 1% sales tax are accounted for in this Capital Projects Fund wltil improvement projects are completed.
The SPLOST Fund's fund balance is $143.2 million, all of which is held for specific con~:truction and improvement projects and
capital acquisitions. .
I Proprietary Funds
The activities of the Government that render services to the general public on a user charge basis, or that require periodic
I 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, $47.8 million; Augusta Regional Airport, $13.8 million; Nonmajor Enterprise funds,
I ($2.3) million. The total growth (reduction) in net assets for previously mentioned funds weire $4 million, $3.6 million and $30,152,
respectively. Other factors concerning the fmances of these funds have already been addressed in the discussion of the Government's
business-type activities.
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13
Capital Assets and Debt Administration
I
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Capital Assets
The Government's investment in capital assets for its governmental and business-type activities as of December 31, 2004 amounts to
$570.2 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements,
equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only
to the Government, such as roads, bridges, streets and sidewalks, drainage systems and other similar items.
Animal Services Facility
3 Pierce Dasher Pumper Trucks-Fire
Land for Main Library
Land for Fire Station # 15
Land Hazard Mitigation
Greenspace Land
Public Safety Vehicles
Various Computer and Software
Decorative Street Lights and Meters Parking Facility
New Building Coroner's Office
New Elevator Municipal Building
$2,261,854
931,550
656,420
101,600
145,277
443,002
2,746,382
500,097
190,208
287,531
254,460
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Major capital asset transactions during the year include:
The Government's Capital Assets
. (net of depreciation)
December 31,2004
Figure 3
Governrn:ntal Business-type
Activities Activities Total
Land $ 18,000,154 $ 14,528,024 $ 32,528,178
Buil~ 52,308,327 23,192,873 75,501,200
IrqJroverrents other than building; 5,839,849 1,547,389 7,387,238
Water and ~e systems 165,269,983 165,269,983
Infrastructw-e 35,715,461 11,506,052 47,221,513
Vehicles, rmchinery and equipm:nt 13,623,204 8,062,400 21,685,604
Ridurond County Public Facilities 2,109,247 2,109,247
Construction in progress 95,808,999 122,702,754 218,511,753
Total $ 223,405,241 $ 346,809,475 $ 570,214,716
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Additional information on the Government's capital assets can be found in Note 3 of the notes to the fmancial statements of this
report.
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14
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Long-Term Debt
I
As of December 31, 2004, the Government had a total of $530 million in outstanding long-term debt. Of
this amount, $479 million consists of revenue bonds backed by the revenues of the water and sewer system.
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The Government's Outstanding Debt
General Obligation and Revenue Bonds
December 31,2003 and 2002
Figure 4
I
G:M:mnmaI
Activities
~ 2003
~
Activities
2<X>> 2003
TdaI
2<X>> 2003
I
Clt:Jua/. obIi~on bond;
~bond;
Oh:r d:bt
TOOII d:bt
s
- $
362,ID4
27,544,455
27,W1)59 $
- S - $ - S
457,440 479,244,5n 302,759,183
24,497,594 23,3(}7,321 22,626,391
24,955,034 S 502,551,898 $ 325,385,574
- S
419,607,381 303,216,623
SO,851,n6 47,123,985
S 530,459,157 $ 3SO,34O,ffiS
I
$
I
500
400
300
200
100
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G.O. Bonds
Revenue Bonds
Other Debt
I
The Government has maintained a bond rating of A+ from Standard & Poor's Rating Group and an A2
rating from Moody's Investor Service. These bond ratings are clear indications of the sound [mandai
condition of the Government. These high ratings are a primary factor in keeping interest costs low on the
Government's outstanding debt.
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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 $356 million.
I
Additional information regarding the Government's long-term debt can be found in Note 3 of the notes to
the [mancial statements of this report.
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15
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I
Economic Factors and Next Year's Budget and Rates
I
The following key economic indicators reflect the growth and prosperity of the Government
. The Government has an unemployment rate of 5.4%, slightly higher than the state average of
4.7%.
. The ad valorem tax rate is expected to remain level in 2005.
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I
Budget Highlights for the Fiscal Year Ending December 31,2005
Governmental Activities: The Ad Valorem Taxes are projected to remain at the 2005 level. The
2004 tax digest has shown a slight increase of less than 1 % primarily due to account corrections. Other
taxes are expected to increase between 1% to 3% with no significant increase in sales tax revenues. The
FY 2005 budget for the general fund is expected to be slightly above the 2004 level due to the full year
impact of the 3% cola in 2004. The general economic climate for the city government of 2005 is expected
to be stable with an estimated to 10% of fund balance appropriated for budgeted expenditures. The
undesignated fund balance should remain at 20% in reserves.
I
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Business - type Activities: Overall Water and Sewer revenue is projected to increase 11% due to the
$160 million new debt. issued in 2004 and the required rate increase to retire this debt. Airport revenue is
projected to increase based on the 2004 landing fees increase.
I
Requests for Information
I
This report is designed to provide an overview of the Government's finances for those with an interest in
this area. Questions concerning any of the information found in this report or requests for additional
information should be directed to the Finance Director, Augusta-Richmond County, Georgia, 501 Greene
Street, Augusta, Georgia 30901. Questions concerning any of the information found in this report relating
to the Richmond County Board of Health should be directed to the Department of Health at 950 Laney
Walker Blvd., Augusta, Georgia 30901.
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16
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Augusta, Georgia
I Statement of Net Assets
December 31, 2004
I Primary Government Component Units
Downtown
Business Primary Department Augusta Development
I Governmental Type Government of Canal Authority
Activities Activities Total Health Authority {Unaudited)
Assets
I Cash and temporary investments $186,914,908 $ 62,765,448 $ 249,680,356 $ 1,559,315 $ 815,595 $ 40,677
Receivables (net of allowance for
doubtful accounts)
Taxes 4,948,167 4,948,167
I Accounts 12,464,785 9,400,327 21,865,1l2 139,713 68,743
Interest 165,494 862,005 1,027,499
Notes 3,204,483 500,000 3,704,483
Intergovernmental 230,328 1,677,157 1,907,485 983,530 55,122
I Prepaid expenses 36,416 4,779 41,195 26,094
Inventory 103,014 2,070,542 2,173,556 29,771
Noncurrent other assets 1,000,000 1,000,000
I Restricted cash and investments 13,873,591 275,990,889 289,864,480
Due from fiduciary funds 334,302 334,302
Internal balances 13,102,30 I (13,102,301)
Capital assets
I Land and construction in progres 113,809,153 137,219,913 251,029,066 5,370,142
Other capital assets, net of
accumulated depreciation 109,596,088 209,589,562 319,185,650 7,296,529 4,584,706 4,323,193
Other assets 214,493 20,045,253 20,259,746
I Total assets 458,997,523 708,023,574 1,167,021,097 9,979,087 10,950,173 4,363,870
I Liabilities
Accounts payable 6,054,517 4,591,714 10,646,23 I 1,341,363 761,344
Accrued interest 40,769 4,436,061 4,476,830 25,982
Due to others 39,000 39,000 719,770
I Accrued salaries and vacation 3,752,352 658,399 4,410,751 12,146
Other accrued liabilities 1,244,209 2,547,103 3,791,312 75,037
Unearned revenue 10,281,971 600 10,282,571 265,713
Liabilities due in less than one year 10,503,818 5,656,271 16,160,089 377,655 575,000
I Liabilities due in greater than one
year 17,403,442 497,105,102 514,508,544 1,1l9,919 4,332,993 2,885,000
Total liabilities 49,281,078 515,034,250 564,315,328 2,536,319 5,775,833 4,179,770
I Net assets
Invested in capital assets net of
related debt 218,370,055 118,216,585 336,586,640 6,742,674 5,261,855 863,193
I Restricted for:
Water and sewer projects 15,214,050 15,214,050
Capital projects 132,609,735 132,609,735
Debt service 2,986,302 2,986,302
I Perpetual care 338,625 338,625
Health and welfare 1,002,558
Downtown development
I Unrestricted 55,411,728 59,558,689 114,970,417 (302,464) (87,515) (679,093)
Total net assets $409,716,445 $192,989,324 $ 602,705,769 $ 7,442,768 $ 5,174,340 $ 184,100
I The notes to the financial statements are an integral part of this statement.
I 21
Augusta, Georgia
Statement of Activities
Year Ended December 31, 2004
I
I
Program Revenues
I
Functions/Prol!rams Charges for
Expenses Services
Primary government:
Governmental activities:
General government $ 30,105,905 $ 12,886,463
Judicial 13,652,452 8,501,644
Public safety 66,858,662 6,298,321
Public works 13,508,419 673,929
Health and welfare 3,948,666 70,383
Culture and recreation 16,724,492 870,898
Housing and development 7,218,695
Interest on long-term debt 329,684
Total governmental activities 152,346,975 29,301,638
Business-type activities:
Waste management 4,477,321 6,830,855
Water and sewer 50,139,547 50,156,007
Airports 11,698,695 12,084,726
Municipal golf course 651,068 571,049
Transit 4,271,215 733,777
Newman Tennis Center 339,925 228,102
Garbage Collection 11,283,548 7,189,910
Riverwalk 248,478 52,209
Total business-type activities 83,109,797 77,846,635
Total primary government $ 235,456,772 $ 107,148,273
Component units:
Richmond County Department of Health
Augusta Canal Authority
Downtown Development Authority (Unaudited:
Total component units
14,639,545
1,049,969
246,339
15,935,853
2,593,689
551,835
$
$
3,145,524
General revenues:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Unrestricted governmental revenues
Revenues from use of money and property
Gain on sale of assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Operating
Grants and
Contributions
$
587,578
688,623
576,845
26,736
2,169
1,416,793
3,692,329
Net assets - beginning, as restated for changes in component unit status
Prior period adjustments
Net assets - beginning, as restated
Net assets - ending
The notes to the fmancial statements are an integral part of this statement
22
6,991,073
23,647
36,195
7,300
67,142
$ 7,058,215
$
10,658,560
569,796
165,632
11,393,988
Capital
Grants and
Contributions
I
$
I
35,133
85,980
I
50,464
I
171,577
2,658,210
I
732,527
I
3,390,737
I
$
3,562,314
425,184
I
$
425,184
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Augusta, Georgia I
Balance Sheet
Governmental Funds
December 31, 2004 I
Fire Special Sales I
General Protection Tax Phase III
Assets
Cash and temporary investments $ 17,360,438 $ 12,077,857 $ 47,373,970 I
Receivables (net of allowance for doubtful accounts)
Taxes 2,902,247 433,920
Accounts 4,969,872
Interest 81,868 I
Note 100,000
Intergovernmental 178,392
Prepaid items 36,416 I
Inventory 103,014
Restricted assets
Reserve account I
Perpetual care
Due from other funds 14,312,588
Total assets $ 39,962,967 $ 12,511,777 $ 47,455,838
Liabilities and fund balances I
Liabilities:
Accounts payable $ 2,000,941 $ 162,287 $ 457,063 I
Due to other funds
Accrued salaries and vacation 2,807,158 646,638
Other accrued liabilities 1,181,378
Deferred revenue 3,954,519 9,446,129 I
Total liabilities 9,943,996 10,255,054 457,063
Fund balances: I
Reserved for:
Encumbrances 865,070 285,019 3,982,003
Project Maintenance I
Debt service
Special purposes 106,447
Inventory/prepaid items 139,430
Designated for: I
Operations 2,500,000
Risk benefit 4,705,061 250,000
Unreserved - undesignated 21,702,963 1,721,704 43,016,772 I
Unreserved, reported in nonmajor:
Special revenue
Debt service I
Capital projects
Permanent
Total fund balances 30,018,971 2,256,723 46,998,775
Total liabilities and fund balances $ 39,962,967 $ 12,511,777 $ 47,455,838 I
The notes to the [manciaI statements are an integral part of this statemenl I
26 I
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I
I Other Total
Special Sales Governmental Governmental
I Tax Phase IV Funds Funds
$ 79,058,001 $ 29,811,158 $ 185,681,424
I 1,612,000 4,948,167
2,657,650 1,731,766 9,359,288
I 83,626 165,494
213,560 313,560
51,936 230,328
I 36,416
103,014
12 12
I 338,625 338,625
14,312,588
$ 81,715,651 $ 33,842,683 $ 215,488,916
I
$ 1,630,901 $ 1,251,290 $ 5,502,482
I 234,628 234,628
70,250 186,019 3,710,065
17,508 1,198,886
I 1,850,065 15,250,713
1,701,151 3,539,510 25,896,774
I 8,979,314 2,655,513 16,766,919
5,596,460 5,596,460
I 2,986,302 2,986,302
106,447
139,430
I 2,500,000
4,955,061
71,035,186 137,476,625
I 12,277,178 12,277,178
(2,018,654) (2,018,654)
I 8,303,055 8,303,055
503,319 503,319
80,014,500 30,303,173 189,592,142
I $ 81,715,651 $ 33,842,683 $ 215,488,916
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I 27
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Augusta, Georgia
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets
December 31, 2004
I
I
Amounts reported for governmental activities in the statement of net assets are different because:
I
Ending fund balance - governmental funds $
I
Capital assets used in governmental activities are not fmancial 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
Long-term notes receivable
Annual pension asset (liability)
I
I
Internal service funds are used by management to charge the costs of risk management,
fleet operations, employee benefits, and GMA lease activity to individual funds. The
assets and liabilities of the internal service funds are included in governmental activities in
the statement of net assets.
I
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
Notes payable
Compensated absences
Capital leases
Claims and judgements
Accrued interest
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I
Net assets of governmental activities
I
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I
The notes to the financial statements are an integral part of this statement
I
29
I
189,592,142
295,273,439
(71,868,198)
223,405,241
4,968,742
2,890,923
214,493
8,074,158
558,324
(362,804)
(1,010,000)
(3,796,467)
(2,484,623)
(4,218,757)
(40,769)
(11,913,420)
$ 409,716,445
Augusta, Georgia I
Statement of Revenues, Expenditures and Changes in Fund Balances I
Governmental Funds
Year Ended December 31,2004
I
Fire Special Sales
General Protection Tax Phase III I
Revenues
Taxes - property $ 27,839,963 $ 3,519,665 $
Taxes - other than property 43,070,088 8,384,070
Licenses and permits 1,369,873 I
Use of money and property 1,760,672 155,945 657,722
Charges for current services 14,690,091 15,650 250
Fines and forfeitures 6,274,563 I
Intergovernmental 1,657,314 326,727 1,215,766
Contributions and donations 2,500
Other 6,119 2,000
Total revenues 96,668,683 12,406,557 1,873,738 I
Expenditures
Current: I
General government 23,043,103 1,250,879 264,860
Judicial 11,732,034
Public safety 44,560,608 16,495,007 I
Public works 5,907,778 966,192
Health and welfare 2,192,748
Culture and recreation 11,482,858 140,403
Housing and development 1,572,958 I
Capital outlay 1,834,228 233,221 4,156,914
Debt service 117,278
Total expenditures 102,443,593 17,979,107 5,528,369 I
Excess (deficiency) of revenues
over (under) expenditures (5,774,910) (5,572,550) (3,654,631)
Other financing sources (uses) I
Transfers in 2,627,790 6,066,700 1,756,122
Transfers (out) (515,630) (339,393)
Capital lease proceeds 1,520,927 3 1,802 I
Total other fmancing sources (uses) 3,633,087 6,098,502 1,416,729
Net change in fund balances (2,141,823) 525,952 (2,237,902)
Fund balance - beginning 32,160,794 1,730,771 49,236,677 I
Fund balance - ending $ 30,018,971 $ 2,256,723 $ 46,998,775 I
I
The notes to the financial statements are an integral part of this statement. I
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30 I
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I Other Total
Special Sales Governmental Governmental
I Tax Phase IV Funds Funds
$ $ 11,472,920 $ 42,832,548
I 32,647,090 11,541,361 95,642,609
2,964,458 4,334,331
933,565 631,851 4,139,755
375 3,585,683 18,292,049
I 773,270 7,047,833
4,740,491 7,940,298
209,758 212,258
I 395,586 403,705
33,581,030 36,315,378 180,845,386
I 104,627 2,287,099 26,950,568
530,809 12,262,843
I 238,906 3,010,064 64,304,585
2,555,519 3,411,794 12,841,283
2,246,873 4,439,621
495,767 3,766,425 15,885,453
I 5,907,554 7,480,512
8,533,139 3,848,657 18,606,159
1,604,612 1,721,890
I 14,174,831 24,367,014 164,492,914
19,406,199 11,948,364 16,352,472
I 421,773 515,630 11,388,015
(15,162,432) (16,017,455)
I 1,552,729
421,773 (14,646,802) (3,076,711)
19,827,972 (2,698,438) 13,275,761
I 60,186,528 33,001,611 176,316,381
I $ 80,014,500 $ 30,303,173 $ 189,592,142
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I 31
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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 31,2004
I
I
Amounts reported for governmental activities in the statement of activities are different because:
I
Net change in fund balances - total governmental funds
I
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay exceeded
depreciation in the current period.
I
Revenues in the statement of activities that do not provide current [mancial resources are
not reported as revenues in the funds.
I
Governmental funds report collections of long-term receivables as revenues. However,
in the statement of net assets the receivables are recorded, and collection of those
receivables reduce the principal amount recorded. This is the amount of current year
collections of notes receivable.
I
'the issuance of long-term debt (e.g. bonds, leases) provides current tinancial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current [mancial resources of governmental funds. Neither transaction, however has
any effect on net assets. Also, governmental funds report the effect of issuance costs,
premiums, discounts, and similar items when debt is fIrst issued, whereas these amounts
are deferred and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related accounts.
Revenue bonds payable
Notes payable
Compensated absences
Capital leases
Claims and judgements
Accrued interest
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I
I
The net revenue of certain activities of the internal service fund is reported with
governmental activities.
I
Change in net assets of governmental activities
I
I
The notes to the financial statements are an integral part of theis statement
I
33
I
$ 13,275,761
12,321,086
(1,055,535)
285,512
94,636
70,000
(136,045)
(142,328)
(2,793,573)
2,683
(2,904,627)
658,935
$ 22,581,132
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Augusta, Georgia I
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year Ended December 31,2004 I
With comparative amounts for December 31,2003
Variance with
Budgeted Amounts Final Budget - I
Actual Positive 2003
Revenues Original Final Amounts (Negative) Actual
Taxes - property $ 25,570,130 $ 27,057,200 $ 27,839,963 $ 782,763 $ 25,264,680 I
Taxes - other than property 41,729,810 42,558,930 43,070,088 511,158 41,485,449
Licenses and permits 1,322,660 1,350,500 1,369,873 19,373 1,344,602 I
Use of money and property 2,214,000 1,778,480 1,760,672 (17,808) 1,959,695
Charges for current services 14,631,260 13,920,955 14,690,091 769,136 16,011,173
Fines and forfeitures 7,404,640 7,113,830 6,274,563 (839,267) 6,624,414
Intergovernmental 1,966,620 2,343,742 1,657,314 (686,428) 2, 114, 173 I
Contributions and donations 12,500 (12,500) 8,487
Other 64,100 30,730 6,119 (24,611) 40,166
Total revenues 94,903,220 96,166,867 96,668,683 501,816 94,852,839 I
Expenditures
Current:
General government 22,665,210 20,836,071 23,043,103 (2,207,032) 21,701,088 I
Judicial 10,037,530 11,752,620 11,732,034 20,586 10,525,575
Public safety 42,988,350 46,669,406 44;560,608 2,108,798 41,986,133
Public works 6,880,480 7,140,260 5,907,778 1,232,482 5,843,146 I
Health and welfare 2,049,920 2,266,998 2,192,748 74,250 2,049,197
Culture and recreation 11,213,690 11,993,621 11,482,858 510,763 10,796,229
Housing and development 1,471,530 1,897,008 1,572,958 324,050 1,501,551
Capital outlay 548,930 901,539 1,834,228 (932,689) 3,120,378 I
Debt service 147,290 117,31O 117,278 32 117,392
Total expenditures 98,002,930 103,574,833 102,443,593 1,131,240 97,640,689
Excess (deficiency) of revenues I
over (under) expenditures (3,099,710) (7,407,966) (5,774,910) 1,633,056 (2,787,850)
Other financing sources (uses)
Transfers in 3,176,910 7,949,689 2,627,790 (5,321,899) , 1,805,740 I
Transfers (out) (77,200) (541,723) (515,630) 26,093 (406,831 )
Capital lease proceeds 1,520,927 1,520,927 2,317,703
Total other financing sources I
(uses) 3,099,710 7,407,966 3,633,087 (3,774,879) 3,716,612
Net change in fund balances $ $ (2,141,823) $ (2,141,823) 928,762 I
Fund balance - beginning 32,160,794 31,232,032
Fund balance - ending $ 30,018,971 $ 32,160,794 I
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The notes to the financial statements are an integral part of this statement. I
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Augusta, Georgia
Fire Protection
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year Ended December 31, 2004
With comparative amounts for December 31,2003
Variance with
Budgeted Amounts Final Budget -
Actual Positive 2003
Revenues Original Final Amounts (Negative) Actual
Taxes - property $ 3,523,850 $ 3,449,460 $ 3,519,665 $ 70,205 $ 3,383,760
Taxes - other than property 7,770,000 8,384,070 8,384,070 7,779,134
Use of money and property 232,000 93,000 155,945 62,945 105,110
Charges for current services 6,000 10,000 15,650 5,650 15,050
Intergovernmental 326,659 326,727 68
Contributions and donations 2,500 2,500
Other 2,000 2,000
Total revenues 11,531,850 12,265,689 12,406,557 140,868 11,283,054
Expenditures
Current:
General government 658,970 882,660 1,250,879 (368,219) 961,131
Public safety 16,992,880 17,324,676 16,495,007 829,669 16,203,602
Capital outlay 17,000 365,293 233,221 132,072
Total expenditures 17,668,850 18,572,629 17,979,107 593,522 17,164,733
Excess (deficiency) of revenues
over (under) expenditures (6,137,000) (6,306,940) (5,572,550) 734,390 (5,881,679)
Other financing sources (uses)
Transfers in 6,137,000 6,306,940 6,066,700 (240,240) 6,012,000
Capital lease proceeds 31,802 31,802
Total other financing sources (uses) 6,137,000 6,306,940 6,098,502 (208,438) 6,012,000
Net change in fund balances $ $ 525,952 $ 525,952 130,321
Fund balance - beginning 1,730,771 1,600,450
Fund balance - ending $ 2,256,723 $ 1,730,771
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Augusta, Georgia I
Statement of Net Assets
Proprietary Funds
December 31,2004 I
Enterprise Funds
Water Augusta Other Internal I
and Sewer Regional Enterprise Service
System Airport Funds Total Funds
Assets
Current assets I
Cash and temporary investments $ 33,640,539 $ 14,357,989 $ 14,766,920 $ 62,765,448 $ 1,233,484
Receivables (net of allowance for doubtful
accounts) I
Accounts 6,748,449 709,835 1,942,043 9,400,327 3,105,497
Interest 857,738 4,267 862,005
Note receivable 500,000 500,000
Intergovernmental 1,644,320 32,837 1,677,157 I
Prepaid expenses 1,131 3,648 4,779
Inventory 1,627,504 202,989 240,049 .2,070,542
Total current assets 43,375,361 16,915,133 16,989,764 77,280,258 4,338,981
Noncurrent assets I
Restricted cash and investments 264,609,365 11,381,524 275,990,889 13,534,954
Note receivable 1,000,000 1,000,000
Deferred bond issuance costs 7,142,313 186,721 320,521 7,649,555 I
Prepaid bond interest 12,395,698 12,395,698
Capital assets, net 310,424,208 26,527,585 9,857,682 346,809,475 357,219
Total noncurrent assets 595,571,584 26,714,306 21,559,727 643,845,617 13,892,173
Total assets 638,946,945 43,629,439 38,549,491 721,125,875 18,231,154 I
Liabilities
Current liabilities
Accounts payable 2,920,758 823,431 847,525 4,591,714 552,035 I
Accrued interest 4,436,061 4,436,061
Due to others 39,000 39,000
Due to other funds 5,651,048 1,806,283 5,538,883 12,996,214 747,444 I
Accrued salaries and vacation 751,760 239,701 341,195 1,332,656 42,287
Other accrued liabilities 2,343,117 203,986 2,547,103
Deferred revenue 600 600
Current portion of notes payable 446,353 446,353 I
Current portion of leases payable 331,164 419,497 750,661 45,323
Current portion of revenue bonds payable 2,340,000 1,445,000 3,785,000
Total current liabilities 19,220,261 2,908,415 8,796,686 30,925,362 1,387,089 I
Noncurrent liabilities
Closure/postclosure accrual 12,421,217 12,421,217
Revenue bonds payable 465,429,577 10,232,694 475,662,271 16,034,609
Notes payable 8,265,716 8,265,716 I
Capital leases 146,629 609,269 755,898
Total noncurrent liabilities 473,841,922 23,263,180 497,105,102 16,034,609
Total liabilities 493,062,183 2,908,415 32,059,866 528,030,464 17,421,698
Net assets I
Invested in capital assets, net of related debt 82,860,084 26,527,585 8,828,916 118,216,585 311,896
Restricted 15,214,050 15,214,050
Unrestricted 47,810,628 14,193,439 (2,339,291) 59,664,776 497,560 I
Total net assets $ 145,884,762 $ 40,721,024 $ 6,489,625 $ 193,095,411 $ 809,456
Some amounts reported for business-type activities in the statement of net assets are different
. because of the following: I
Certain internal fund assets and liabilities are included with business-type activities. $ (l06,087)
Total net assets for business-type activities $192,989,324
The notes to the financial statements are an integral part of this statement. I
36 I
I Augusta, Georgia
I Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
I Year Ended December 31, 2004
Enterprise Funds
I Water Augusta Other Internal
and Sewer Regional Enterprise Service
System Airport Funds Total Funds
Operating revenues
I Charges and fees $ 50,235,519 $ 11,985,376 $ 15,705,797 $ 77,926,692 $ 27,650,321
Total operating revenues 50,235,519 11,985,376 15,705,797 77,926,692 27,650,321
loperating expenses
Personal services and employee benefits 8,973,499 2,664,417 4,263,621 15,901,537 411,647
Purchased/contracted services 7,897,127 1,350,510 12,018,307 21,265,944 498,133
I Supplies 4,060,557 5,396,902 1,157,699 10,615,158 257,350
Repairs and maintenance 2,922,289 278,148 545,251 3,745,688 3,802,863
Interfund/interdepartmental charges 1,612,383 272,700 929,546 2,814,629 5,900
I Other costs 64,324 64,324 II 7,884
Depreciation 9,849,006 1,520,032 1,674,554 13,043,592 63,638
Closure/postclosure accrual 697,033 697,033
Lease expense 1,925,372
I Risk benefit charges 986,142
Insurance 18,988,603
Total operating expenses 35,314,861 11,547,033 21,286,011 68,147,905 27,057,532
loperating income (loss) 14,920,658 438,343 (5,580,214) 9,778,787 592,789
Nonoperating revenue (expense)
I Interest revenue 3,868,947 194,874 188,441 4,252,262 413,450
Sale of property 42,155 45,659 21,500 109,314
Other revenue 658,715 93,059 751,774 115,686
I Intergovernmental 2,654,233 803,646 3,457,879
Interest expense (14,874,725) (125,720) (15,000,445) (392,956)
Total nonoperating revenue (expense) (10,963,623) 3,553,481 980,926 (6,429,216) 136,180
IIncome (loss) before transfers 3,957,035 3,991,824 (4,599,288) 3,349,571 728,969
Transfers in 4,711,820 4,7II,820 127,000
I Transfers out (82,380) (82,380) (l27,000)
Change in net assets 3,957,035 3,991,824 30,152 7,979,0 II 728,969
Total net assets - beginning 141,927,727 37,142,855 6,459,473 185,530,055 80,487
Iprior period adjustment (413,655) (413,655)
Total net assets - beginning, as restated 141,927,727 36,729,200 6,459,473 185,116,400 80,487
ITotal net assets - ending $ 145,884,762 -$ 40,721,024 $ 6,489,625 $ 193,095,411 $ 809,456
Isome amounts reported for business-type activities in the statement of net assets are different
because of the following:
Certain internal fund assets and liabilities are included with business-type activities. (106,087)
I Total net assets for business-type activities $ 192,989,324
The notes to the financial statements are an integral part of this statement.
I 37
Augusta, Georgia I
Statement of Cash Flows I
Proprietary Funds
Year Ended December 31, 2004
Enterprise Funds I
Water Augusta Other Internal
& Sewer Regional Enterprise Service I
System Airport Funds Total Funds
Operating activities I
Cash received from customers $ 49,423,832 $ 11,859,259 $ 14,850,334 $ 76,133,425 $
Cash received from contributions 27,657,410
Cash received as advances from General Fund 1,939,046 1,939,046 269,214
Cash paid to suppliers (16,678,370) (9,666,200) (13,636,457) (39,981,027) (26,852,785) I
Cash paid to employees (8,929,740) (4,227,974) (13,157,714) (405,660)
Cash paid for interfund services used (3,729,342) (897,649) (4,626,991) (5,900)
Net cash provided by (used in)
operating activities 20,086,380 2,193,059 (1,972,700) 20,306,739 662,279 I
Noncapital financing activities
Transfers in 4,711,820 4,711,820
Transfers out (82,380) (82,380) I
Operating grants 1,617,244 1,617,244
Interest expense on operating capital (71,006) (71,006) (25,914)
Other revenue 4,243 4,243 115,686 I
Net cash provided by noncapital
financing activities 4,243 6,175,678 6,179,921 89,772
Capital and related financing activities I
Proceeds from grants 1,363,120 34,924 1,398,044
Proceeds from sale of property 42,155 (367,996) 94,008 (231,833)
Proceeds from capital leases 334,789 1,159,396 1,494,185 45,323
Interest on bond funds 3,543,899 3,543,899 I
Other miscellaneous income 742,952 93,059 836,011
Proceeds from bond issuance 167,002,581 11,684,683 178,687,264
Purchase of capital assets (49,907,731) (2,612,250) (1,896,094) (54,416,075) (180,516) I
Bond issuance costs paid (3,164,087) (186,721) (331,151) (3,681,959)
Interest paid on capital debt (13,923,769) (41,446) (13,965,215) (322,126)
Principal paid on capital debt (1,087,524) (1,087,524)
Payments on capital leases (228,744) (228,744) I
Prepaid bond interest (12,420,000) (12,420,000)
Issuance of receivable (1,500,000) (1,500,000)
Unamortized refunding interest 2,343,117 2,343,117
Principal paid on revenue bonds (2,255,000) (2,255,000) I
Net cash provided (used) by capital and
related financing activities 89,008,430 (1,060,895) 10,568,635 98,516,170 (457,319)
Investing activities I
Interest received 380,545 194,874 185,486 760,905 413,450
Net cash provided by investing activities 380,545 194,874 185,486 760,905 413,450
Net increase in cash and cash I
equivalents/investments 109,475,355 1,331,281 14,957,099 125,763,735 708,182
Cash and cash equivalents/investments
Beginning of year 188,774,549 13,026,708 11,191,345 212,992,602 14,060,256 I
End of year $ 298,249,904 $ 14,357,989 $ 26,148,444 $ 338,756,337 $ 14,768,438
The notes to the financial statements are an integral part of this statement. I
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Augusta, Georgia
Statement of Cash Flows
Proprietary Funds
Year Ended December 31, 2004
Enterprise Funds
Water Augusta Other Internal
& Sewer Regional Enterprise Service
System Airport Funds Total Funds
Reconciliation of operating income (loss)
to net cash provided by
(used in) operating activities
Operating income (loss) $ 14,920,658 $ 438,343 $ (5,580,214) $ 9,778,787 $ 592,789
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization 9,849,006 1,520,032 1,664,927 13,033,965 63,638
Closure/post closure costs 697,033 697,033
Change in assets and liabilities
Accounts receivable (811,687) (126,117) (855,463) (1,793,267) (36,845)
Due from other funds
Inventory (192,491 ) (21,60 I) (1,60 I) (215,693 )
Taxes receivable
Prepaid expenses (1,131) (3,648) (4,779)
Accounts payable (3,148,513) 382,402 105,763 (2,660,348) (276,438)
Accrued salaries and vacation 118,535 35,647 154,182 5,987
Other accrued liabilites 41,079 41,079
Due to other funds (51,164) 2,000,349 1,949,185 313,148
Unearned revenue (50) (50)
Claims payable (596,833) (596,833)
Decrease in closure liability (76,522) (76,522)
Total adjustments 5,165,722 1,754,716 3,607,514 10,527,952 69,490
Net cash provided by (used in)
operating activities $ 20,086,380 $ 2,193,059 $ (1,972,700) $ 20,306,739 $ 662,279
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Augusta, Georgia
Statement of Fiduciary Net Assets
Fiduciary Funds
December 31, 2004
Private-purpose
Pension Trust Fund Agency
Trust Funds Joseph R Lamar Funds
Assets
Cash and cash equivalents $ 5,033,913 $ 464 $ 5,753,801
Investments
U.S. Government securities 18,889,246
Corporate bonds 14,905,021
Equity securities 52,692,593
Real estate 1,700,000
Receivables (net of allowance for doubtful accounts)
Taxes 18,469,758
Interest 565,281
Restricted assets
Perpetual care 5,000
Total assets 93,786,054 5,464 24,223,559
Liabilities
Accounts payable 26,238
Due to others 5,753,801
Due to other funds 334,159 143
Uncollected taxes 18,469,758
Total liabilities 360,397 143 $ 24,223,559
Net assets
Held in trust for pension benefits and other purposes $ 93,425,657 $ 5,321
(See Schedules of Funding Progress)
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The notes to the financial statements are an integral part of this statement.
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Augusta, Georgia
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
Year Ended December 31,2004
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Private-purpose
Pension Trust Fund
Trust Funds Joseph R. Lamar
Additions
Contributions - employer $ 2,272,195 $
Contributions - plan member 1,153,301
Net investment income 5,641,397 306
Total additions 9,066,893 306
Deductions
Other 175
Administration 592,821
Benefit payments 6,133,069
Refunds 305,840
Total deductions 7,031,730 175
Net increase in plan net assets 2,035,163 131
Total net assets - beginning 91,390,494 5,190
Total net assets - ending $ 93,425,657 $ 5,321
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The notes to the financial statements are an integral part of this statement
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AUGUST A, GEORGIA
Notes to Financial Statements
Year Ended December 31, 2004
Note 1 - Summary of significant accounting policies
Augusta, Georgia ("the Government") accounts for its financial position and results of operations in accordance with
accounting principles generally accepted in the United States of America (GAAP) applicable to governmental units. The
Government's reporting entity applies all relevant Government Accounting Standards Board (GAS B) pronouncements. In
the government-wide financial statements and in the proprietary fund financial statements, the Government applies
Financial Accounting Standards Board (F ASB) pronouncements and Accounting Principles Board (APB) opinions
issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements,
in which case, GASB prevails. Accordingly, the Government 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 I, 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 statements include the accounts of all Augusta and Richmond County operations. The
criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100
ofGASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether:
. the organization is lega!ly 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 benefitJburden on the Government
· there is fiscal dependency by the organization on the Government
Utilizing the above criteria, the following agencies and commissions were included using the blending method in the
financial statements: Augusta Port Authority, 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, 50 I Greene Street, Augusta, Georgia 3090 I
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 III Tenth Street, Augusta, Georgia, 309Ol.
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.
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 1 - Summary of significant accounting policies (Continued)
Information for the Downtown Development Authority is presented for the year ended December 31, 2004, and is
unaudited.
Information for the Department of Health is presented for the year ended June 20, 2004, which were the latest financial
statements available. The Department of Health operates with the June 30 fiscal year end, which is different from the
governments fiscal year end.
Augusta Canal Authority - A voting majority of the board is appointed by the Government.
Riclunond County Department of Health - A voting majority of the board is appointed by the Government.
Downtown Development Authority - A voting majority of the board is appointed by the Government.
B. Basis of Presentation
Government-wide statements: The statement of net assets and the statement of activities display information about the
primary government. These statements include the financial activities of the overall government. Eliminations have
been made to minimize the double counting of internal activities. These statements distinguish between the
governmental and business-type activities of the Government. Governmental activities generally are financed through
taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in
whole or in part by fees charged to external parties. Likewise, the primary government is reported separately from
certain legally separate component units for which the primary government is financially accountable.
The statement of activities presents a comparison between direct expenses and program revenues for the different
business-type activities of the Government and for each function of the Government's governmental activities. Direct
expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to
a particular function. Program revenues include (a) fees and charges paid by the recipients of goods or services offered
by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though
the latter are excluded from the government-wide financial statements. Major individual governmental funds and
major individual enterprise funds are reported as separate columns in the fund financial statements.
Fund financial statements: The fund fmancial statements provide information about the Government's funds.
Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of
fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All
remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operation revenues, such as charges for services, result from exchange transactions associated with the
principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially
equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange
transactions or ancillary activities.
The Government reports the following major governmental funds:
General Fund - The General Fund is the general operating fund of the Government. The General Fund accounts
for all financial resources except those that are required to be accounted for in another fund. The primary revenue
sources are ad valorem taxes, state grants, and various other taxes and licenses. The primary expenditures are for
public safety, recreation, street maintenance and improvements, and sanitation services.
Fire Protection Fund - The Fire Protection Fund is a special revenue fund that accounts for the receipts and
disbursements of tax revenues restricted for fire protection services in the unincorporated area only. The primary
revenue source is ad valorem taxes, and the primary expenditures are for public safety.
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AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
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Year Ended December 31, 2004
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Note I - Summary of significant accounting policies (Continued)
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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.
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Special Sales Tax Phase IV Fund - This fund was established for expenditures specifically budgeted from revenues
from the one cent sales tax (Phase IV) collected from the years 2001 - 2005 to be used primarily for public works,
recreation and outside agency projects.
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The Government reports the following nonmajor governmental funds:
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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".
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Emergency Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the
emergency telephone response system.
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Capital Outlay Fund - This fund accounts for the disbursement of revenues for all capital expenditures in General
Fund departments. Capital expenditures are defined as any non-disposable item over $500 which includes vehicles,
office and computer equipment, communications equipment, building renovations and office furniture.
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Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriffs Department and Jail.
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Occupational Tax Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire
protection services in the unincorporated area only.
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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.
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Promotionrrourism 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.
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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.
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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.
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Law Library Fund - This fund accounts for revenue and expenditures of the Law Library.
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5% Crime Victim's Assistance Fund - This fund accounts for the 5% surcharge on certain fines with the proceeds
used for a victim's assistance program.
Supplemental Juvenile Service Fund - This fund accounts for supervisory fees collected on juvenile cases.
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47
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2004
Note I - Summary of significant accounting policies (Continued)
Weed and Seed Federal Grant Fund - This fund accounts for a grant designed to target high risk areas for teens
and weed out the bad influences and sow the seed for a better life.
Wireless Phase Fund - This fund accounts for activities associated with 911 charges for wireless service.
Community Greenspace Fund - This fund is used to acquire real property for the preservation of greenspace,
pursuant to the Georgia Greenspace Program as established in OCGA 36-22 et seq.
Perpetual Care I Fund - This fund accounts for monies collected from sale of perpetual care contracts at
Government-owned cemeteries after October I, 1970, as well as receipt of investment earnings on all perpetual care
investments and payment of cemetery maintenance expenditures.
Landbank Authority - This fund accounts for property owned by the County for the future progress of Augusta,
GA.
Federal Drug Fund - This fund accounts for activities associated with drug education and enforcement.
State Drug Fund - This fund accounts for activities associated with drug education and enforcement.
Canine Forfeitures - This fund accounts for proceeds recovered from drug arrests, which are allocated to the canine
unit in return for their assistance.
NPDES Permit Fees - This fund accounts for a per acre environmental fee charged to all contractors who disturb
more than one acre ofland at a building site.
Debt Service Funds
Debt Service Fund - This fund accounts for general obligation bonds and notes payable and any other debts not
recorded in the Enterprise Funds.
Urban Debt Service Fund - This fund accounts for general obligation bonds related to the former City of Augusta.
Capital Proiects Funds
Community Development Fund - This fund accounts for the financing and construction of various community
development projects. Financing is provided by grants received from the U.S. Department of Housing and Urban
Development.
Special Sales Tax Phase I Fund - This fund accounts for financing and construction of various road improvement
projects. Financing is provided by receipts from a 1987 special one percent local option sales tax referendum.
Special Sales Tax Phase II Fund - This fund accounts for financing and construction of various construction and
road improvements, drainage, jail improvements, and museums. Financing is to be provided by receipts from a
1991 special one percent local option sales tax referendum.
Permanent Fund
Perpetual care II Fund - This fund accounts for the principal originally donated for the sale of perpetual care
contracts at govenunent-owned cemeteries after October 1, 1970. The principal must be maintained intact and
invested.
48
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AUGUSTA, GEORGIA
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Notes to Financial Statements - Continued
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Year Ended December 31, 2004
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Note 1 - Summary of significant accounting policies (Continued)
The Government reports the following major enterprise funds:
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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.
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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:
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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.
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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.
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Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus
service within Richmond and Columbia counties.
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Daniel Field Airport Fund - This fund accounts for revenue and expenses related to Daniel Field Airport.
Newman Tennis Center Fund - This fund accounts for receipt and expenses related to the operations at Newman
Tennis Center.
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Garbage Collection Fund - This fund accounts for receipt and expenses related to the Government's garbage
collection contract.
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Riverwalk Fund - This fund accounts for receipt and expenses related to the Government's Riverwalk.
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Additionally, the Government reports the following fund types:
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Pension Trust Fund - The Government has pension trust funds that account for the Government's employees'
pension plans. The Government maintains the following pension trust funds: 1945 Pension Trust Fund, 1977
Pension Trust Fund, and the General Retirement Fund.
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Private Purpose Trust Fund - The Government has a private-purpose trust fund that accounts for resources
legally held in trust to finance awards for children attending Joseph R. Lamar School. The principal amount of the
gift is to be maintained intact and invested. Investment earnings are used for the awards. The Government
maintains the following private-purpose trust fund: Joseph R. Lamar Fund.
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Agency Funds - Agency funds are custodial in nature and do not involve the measurement of operating results.
Agency funds are used to account for assets the Government holds on behalf of others. The Government
maintains the following agency funds: Tax Commissioner, which accounts for tax billings, collections and
remittances made by the Tax Commissioner on behalf of the County and other governmental agencies; Probate
judge, which accounts for the receipt and disbursement of licenses and other fees collected by the Probate Judge;
.Sheriff's Department, which accounts for the receipt and disbursement of funds collected by the department from
individuals posting bond; Civil Court, which accounts for the receipt and disbursement of court-ordered fines, fees
and garnishments made on behalf of third parties; and Clerk of Court, which accounts for the receipt and
disbursement of court-ordered fines and fees made on behalf of third parties and traffic violation fines.
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note I - Summary of significant accounting policies (Continued)
C. Measurement Focus and Basis of Accounting
Government-wide. Proprietary and Fiduciary Fund Financial Statements - The government-wide, proprietary fund and
fiduciary financial statements are reported using the economic resources measurement focus, except. for agency funds
which have no measurement focus. The government-wide, proprietary fund and fiduciary financial statements are
reported using the accrual basis on accounting. Revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which
the Government gives (or receives) value without directly receiving (or giving) equal value in exchange, include
property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year
for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Amounts reported as program revenues include I) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations. The principal operating revenues of the Government enterprise funds are charges
to customers for sales and services. The Government also recognizes as operating revenue the portion of tap fees
intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
Governmental Fund Financial Statements - Governmental funds are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means
collectible within the current period. The Government considers all revenues available if they are collected within 60
days after year-end. Expenditures are recorded when the related fund liability is incurred, expect for principal and
interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as
expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other
financing sources.
Those revenues susceptible to accrual are property taxes, licenses, interest revenues and charges for services. State-
shared revenues collected and held by the state at year-end on behalf of the Government also are recognized as revenue.
Fines, fees and permits are not susceptible to accrual because generally they are not measurable until received in cash.
Grant revenues which are unearned at year-end are recorded as unearned revenues. Under the terms of grant
agreements, the Government funds certain programs by a combination of specific cost-reimbursement grants,
categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted net assets available to 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.
50
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AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
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Year Ended December 31,2004
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Note 1 - Summary of significant accounting policies (Continued)
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D. Budgets and budgetary accounting
The Government generally follows these procedures in establishing the budgetary data reflected In the financial
statements:
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I. Budgetary hearings are held in October to discuss departmental budgets.
2. The Finance Committee presents the tentative budget to the Commission in November.
3. The permanent budget is legally adopted by the Commission prior to the start of the next fiscal year.
4. All budget revisions or changes must be approved as required by Georgia law and administrative policy. Transfer
of budgeted amounts between object categories within departments requires the approval of the Government's
Administrator. The Augusta-Richmond County Commission must approve revisions that alter the total
expenditures of any department or fund. Budgets for capital items are reappropriated in the ensuing year's budget.
Departments may request for other budget items to be reappropriated in the form of a budget adjustment,
contingent of the Commission's approvaL
5. Formal budgetary integration is employed as a management control device during the year for the General, Special
Revenue, Debt Service and Capital Projects Funds.
6. Budgets for these funds are adopted on a basis consistent with accounting principles generally accepted in the
United States of America (GAAP).
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Budget information for expenditures represents the operating. budget (as amended) as approved by the Augusta-
Richmond County Commission.
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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.
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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.
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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.
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The State statutes authorize the Government to invest in obligations of the United States government and agencies
thereof, general obligations of the State of Georgia or any of its political subdivisions, or banks and savings and loan
associations to the extent that they are secured by the Federal Deposit Insurance Corporation.
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2004
Note I - Summary of significant accounting policies (Continued)
G. Investments
Investments are reported at fair value. Fair value is determined as follows: short-term investments are reported at cost,
which approximates fair value; securities traded on national exchanges are valued at current prices or current prices of
similar securities; securities for which an established market does not exist are reported at estimated fair value using
selling prices for similar investments for which there is an active market; fair value of real estate is based on appraised
values.
H. Inventories and prepaid expenses
Inventories in the governmental funds are valued at cost using the first-in, first-out method. Inventories in the
proprietary funds are valued at the lower of cost (first-in, first-out) or market. The costs of governmental fund-type
inventories and prepaid expenses are recorded as expenditures when consumed rather than when purchased. Reported
inventories and prepaid expenses are equally offset by a fund balance reserve which indicates that they do not
constitute "available spendable resources".
I. Interfund receivables/payable and Internal Balances
During the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the
balance sheet of the fund financial statements and as "internal balances" on the statement of net assets in the
government-wide financial statements.
J. Bond discounts and issuance costs
Bond discounts and issuance costs for proprietary funds are deferred and amortized over the term of the bonds using
the effective-interest method. Bond discounts are presented as a reduction of the face amount of bonds payable,
whereas issuance costs are recorded as deferred charges.
K. Restricted assets
Certain assets of the Debt Service Fund and Enterprise Funds are classified as restricted assets on the balance sheet
because their use is limited by applicable debt covenants.
L. Capital assets
Capital assets are defined by the government as assets with an initial, individual cost of more than a certain cost and an
estimated useful life in excess of one year. Minimum capitalization costs are $5,000 for all categories of capital assets.
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are
recorded at their estimated fair value at the date of donation. General infrastructure assets acquired prior to January I,
2001, consist of the streets network that were acquired or that received substantial improvements subsequent to
January I, 1980. The streets network is reported at estimated historical cost using deflated replacement cost. The cost
of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not
capitalized.
Depreciation is computed using the straight-line method. A summary of the estimated useful lives is as follows:
Vehicles
Furniture and fixtures
Machinery and equipment
Buildings and improvements
Water and Sewer systems
Infrastructure
5 years
7 years
10 years
20 years
30 years
30 years
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AUGUSTA, GEORGIA
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Notes to Financial Statements - Continued
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Year Ended December 31, 2004
I
Note I - 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.
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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.
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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.
Following is a detail of funds with deficit fund balances or net assets.
through the general operations of the Government.
Nonmajor Governmental Funds
Occupation Tax Fund
PromotionITourism Fund
Law Library
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Note 2 - Stewardship, compliance and accountability
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A. Excess of expenditures over appropriations
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General Fund
General government
Capital outlay
Fire Protection Fund
General government
Nonmajor Governmental Funds
Urban Services
General government
Urban Development Action Grant Fund
Housing and development
Law Library
Wireless Phase Fund
Public safety
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B. Fund Balance or Net Assets
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Nonmajor Enterprise Funds
Newman Tennis Center
Garbage Collection
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Internal Service Funds
Fleet Operations
Employee Health Benefits
GMA Leases
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Expenditures Variance
Budget Actual Positive (Negative)
$ 20,836,071 $ 23,043,103 $ (2,207,032)
90 I ,539 1,834,228 (932,689)
882,660 1,250,879 (368,219)
1,410,080 1,451,110 (41,030)
381,290 462,732 (81,442)
35 (35)
117,560 164,971 (47,411)
The Government plans to fund the deficits
$ (78,720)
(2,048)
(22,611)
(229,778)
(1,574,351 )
(494,815)
(66,075)
(47,436)
53
AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
Year Ended December 31, 2004
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Note 3 - Detailed notes on all funds
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A. Deposits and investments
Primary government
At December 31,2004, the Government's cash and temporary investments balance on the statement of net assets and
balance sheet included demand deposits, certificates of deposit, repurchase agreements, and local government
investment pools. The cash balance was secured by Federal Depository Insurance Corporation (FDIC) or Savings
Association Insurance Fund (SAIF) or by collateral held by the agent in the Government's name.
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The local government investment pool "Georgia Fund 1", created by O.C.G.A. ~36-83-8, is a stable net asset value
investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia
Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be
a 2a-7 like pool. The pool is not registered with the SEC as an investment company; the 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.
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At December 31,2004, the carrying amount of the Government's deposits with [mandai institutions was $72,251,988
and the bank balance was $86,153,600.
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Amount insured by the FDIC
Amount collateralized with securities held by
pledging institutions in the Government's name
$ 700,000
85,453,600
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Total bank balance of deposits
$ 86,153,600
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The Government's investments are shown by type, carrying amount, market value and level of risk assumed in the
holding of the various securities. At December 31, 2004 the County's cash and investment balances were as follows:
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Category Carrying Market
1 2 3 Amount Value
Repurchase agreements $ 100,239,344 $ $ - $. 100,239,344 $ 100,239,344
U.S. Government securities 18,889,246 23,596,977 42,486,223 42,486,223
Corporate securities 14,905,021 14,905,021 14,905,021
Equity securities 52,692,593 52,692,593 52,692,593
210,323,181 210,323,181
Local government investment pool 139,779,263 139,779,263
Carrying amount of deposits with
financial institutions 72,251,988 72,251,988
Deposits with investment houses 197,029,662 197,029,662
Certificates of deposits held by
investment houses 17,414,776 17,414,776
Cash on hand 26,004 26,004
$ 636,824,874 $ 636,824,874
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The investments that are represented by specific identifiable investment securities are classified as to credit risk.
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
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Year Ended December 31, 2004
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Note 3 - Detailed notes on all funds (Continued)
The levels of risk assumed in the various investments are categorized as follows:
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Category I: includes the investments that are insured or registered or for which the securities are held by the
Government or its agent in the Government's name.
Category 2: includes uninsured and unregistered investments for which the securities are held by the bank's or
dealer's trust department or agent in the Government's name.
Category 3: includes uninsured and unregistered investments for which the securities are held by the bank or
dealer, or by its trust department or agent but not in the Government's name.
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Department of Health
In addition on June 30, 2004, the carrying amount of the Department of Health's deposits was $1,767,199 and the bank
balance was $2,333,968. Of the bank balance, $500,083 was covered by federal depository insurance; the remaining
balance of $1,833,885 was covered by collateral held by the financial institution's agent in the Department's name.
The Department's deposits were composed of the following amounts:
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Govenunental activities
Fiduciary activities - agency funds for
the Department of Health
$ 1,559,315
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207,884
$ 1,767,199
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Augusta Canal Authority
As of December 31, 2004, the carrying amount of the Authority's bank deposits was $380,282 and the respective bank
balances totaled $435,520. Of the total bank balance, $245,102 was insured through the Federal Depository Insurance
Corporation (FDIC). The remaining $190,418 was collateralized with pooled securities held by the financial
institutions' trust departments. These securities are held in the name of the financial institution and not that of the
Authority.
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At December 31,2004, the Authority's cash and investment balances were as follows:
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Category Canying Market
2 3 Amount Value
Repurchase agreements $ 435,041 $ $ $ 435,041 $ 435,041
Canying amount of deposits
with financial institutions 380,282 380,282
Cash on hand 272 272
$ 815,595 $ 815,595
B. Receivables
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Property taxes are administered on a calendar year basis subject to the following dates:
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Lien date
Levy date
Collection period
Due date
January I
August 15
September 15 - November 15
November 15
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on all funds (Continued)
Receivables at December 31, 2004, including the applicable allowances for uncollectible accounts, consist of the
following:
Receivables:
Taxes S
Accounts
Interest
Note
Intergovernmental
Gross receivables
Less: allowance for
unco\lectibles
Net total
receivables $
Special Special Nonmajor Nonmajor
Fire Sales Tax Sales Tax Water and Bush Governmental Enterprise
General Protection Phase ill Phase IV Sewer Field Fwuls Funds
3,377,520 $ 455,011 S S S $ S 1,704,874 $
5,267,591 2,657,650 7,018,949 809,835 1,752,208 2,793,765
81,868 857,738 83,626 4,267
100,000 500,000 312,433
178,392 1,644,320 51,936 32,859
8,923,503 455,011 81,868 2,657,650 8,3 76,687 2,454,155 3,905,077 2,830,891
(772,992) (21,091) (270,500) (100,000) (212,189) (851,744)
8,l50,511 $ 433,920 $ 81,868 S 2,657,650 $ 8,106,187 $ 2,354,155 S 3,692,888 S 1,979,147
Total
Adjustments to
Full Accrual
Total
Taxes
Accounts
Interest
Note
Intergovenunental
$ 5,537,405
20,299,998
1,027,499
912,433
1,907,507
$
$ 5,537,405
23,405,495
1,027,499
3,803,356
1,907,507
3,105,497
2,890,923
Allowance
(2,228,516)
$ 27,456,326
(2,228,516)
$ 33,452,746
$ 5,996,420
Net total receivables
Adjustments to full accrual relate to long-term notes receivable and internal service funds. Internal service funds
predominately serve the governmental funds. Accordingly, the internal service funds receivables balances are included
in governmental activities on the accompanying government-wide financial statement.
For the above-mentioned long-term notes receivable, the bank maintains records that are not recorded in the
governmental fund 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.
Finally, the Fiduciary fund financial statements include $18,469,758 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 $565,281 in the pension trust fund.
In a prior year, the former City of Augusta entered into an agreement with the Georgia Housing and Finance Authority
(GHFA) to aid in the administration of Federal funds granted through the State for HUD's Rental Rehabilitation
Program. The Government acts only in an administrative capacity and does not directly receive or disburse any funds
related to this project. Therefore, the receipts, disbursements and related notes receivable for the GRF A program have
not been included in the fmancial statements.
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Total
5,537,405 I
20,299,998
1,027,499
912,433
1,907,507 I
29,684,842
(2,228,516)
27,456,326 I
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AUGUST A, GEORGIA
I Notes to Financial Statements - Continued
I Year Ended December 31, 2004
Note 3 - Detailed notes on all funds (Continued)
I c. Capital assets
A summary of changes in capital assets is as follows:
I Governmental Activities
December 3 I, December 31,
2003 Additions Disposals 2004
I Capital assets, not being depreciated
Land $ 16,652,355 $ 1,347,799 $ - $ 18,000,154
Construction in process 84,335,662 16,421,087 (4,947,750) 95,808,999
Total capital assets not being depreciated 100,988,017 17,768,886 (4,947,750) 113,809,153
I Other capital assets:
Land and Site Improvements 7,161,957 417,961 7,579,918
Buildings 67,028,220 2,267,738 69,295,958
I Building improvements 6,826,491 624,753 7,451,244
Vehicles 25,988,947 3,219,312 (1,008,100) 28,200,159
Machinery and equipment 7,633,859 296,617 (158,304) 7,772,172
I T - hardware 2,334,448 425,683 2,760,131
I IT - software 1,642,150 297,429 1,939,579
Furniture and fixtures 1,087,487 159,779 1,247,266
Infrastructure 42,085,998 498,232 42,584,230
Richmond County Public Facilities 12,655,483 12,655,483
I Total other capital assets 174,445,040 8,207,504 (1,166,404) 181,486,140
Less accumulated depreciation for:
I Land and site improvements (1,401,600) (338,469) (1,740,069)
Buildings (20,186,796) (2,060,175) (22,246,971)
Building improvements (1,853,642) (338,262) (2,191,904)
Vehicles ( 16,385,998) (3,173,053 ) 1,008,099 (18,550,952)
I Machinery and equipment (4,799,561) (624,796) 152,203 (5,272,154)
I T - hardware (1,660,673) (411,293) (2,071,966)
IT - software (1,022,775) (284,859) (1,307,634)
Furniture and fixtures (1,084,407) (8,990) (1,093,397)
I Infrastructure (5,524,270) (1,344,499) (6,868,769)
Richmond County Public Facilities (10,546,236) (10,546,236)
Total accumulated depreciation (64,465,958) (8,584,396) 1,160,302 (71,890,052)
I Other capital assets, net 109,979,082 (376,892) (6,102) 109,596,088
Governmental activities capital assets, net $ 210,967,099 $ 17,391,994 $ (4,953,852) $ 223,405,241
I Depreciation expense was charge to functions as follows:
Governmental activities
General government $ 798,504
I Judicial 1,368,594
Public safety 2,668,459
Public works 2,276,064
I Health and welfare 90,253
Culture and recreation 1,300,003
Housing and development 18,881
Fleet 44,037
I Risk Management 19,601
$ 8,584,396
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I 57
AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
I
Note 3 - Detailed notes on aU funds (Continued)
I
Water and Sewer
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Other capital assets:
Buildings
Vehicles
Machinery and equipment
Furniture and fixtures
Other capital
Water and sewerage systems
Contributed water and sewerage systems
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Vehicles
Machinery and equipment
Furniture and fixtures
Other capital
Water and sewerage systems
Contributed water and sewerage systems
Total accumulated depreciation
Other capital assets being depreciated, net
Water and sewer capital assets, net
Balance
December 3 I ,
2003
Additions
Disposals
(236,401)
(24,184)
(260,585)
236,40 I
24,184
260,585
* Disposals in Construction in progress are shown as additions to Capital assets being depreciated.
$
7,026,959 $ 200,448 $
81,582,783 36,674,553
88,609,742 36,875,00 I
39,026,157
5,207,660 346,260
5,995,222 427,729
421,374 19,100
2,090,076 49,921
240,865,301 12,189,720
10,563,423
304,169,213 13,032,730
(20,704,468) (1,204,300)
(3,500,932) (809,044)
(4,791,734) (428,619)
(421,373) (5,836)
(I ,973,491) (74,220)
(85,148,238) (6,818,572)
(5,873,236) (508,415)
(122,413,472) (9,849,006)
181,755,741 3,183,724
270,365,483 40,058,725
58
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Balance
December 31 ,
2004
I
$
7,227,407
118,257,336
125,484,743
I
*
39,026,157
5,317,519
6,398,767
440,474
2,139,997
253,055,021
10,563,423
316,941,358
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I
(21,908,768)
(4,073,575)
(5,196,169)
(427,209)
(2,047,711 )
(91,966,81O)
(6,381,651)
(132,001,893)
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I
184,939,465
I
310,424,208
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on aU funds (Continued)
Balance Balance
December 31, December 31,
2003 Additions Disposals 2004
Augusta Regional AiI:port
Land $ 4,684,256 $ - $ $ 4,684,256
Construction in progress 1,117,232 2,750,087 * 3,867,319
Total capital assets not being depreciated 5,801,488 2,750,087 8,551,575
Other capital assets:
Site improvements 1,667,085 1,667,085
Building improvements 1,890,479 1,890,479
Buildings 9,487,642 9,487,642
Vehicles 2,358,495 30,156 2,388,651
Machinery and equipment 1,886,525 245,662 2,132,187
Furniture and fixtures 327,108 327,108
Other capital 166,145 166,145
Information tech - hardware 68,468 68,468
Information tech - software 26,224 26,224
Infrastructure 21,307,750 21,307,750
Total capital assets being depreciated 39,185,921 275,818 39,461,739
Less accumulated depreciation for:
Site improvements (574,994) (99,099) (674,093)
Building improvements (554,574) (183,312) (737,886)
Buildings (6,313,815) (240,763) (6,554,578)
Vehicles (l,538,542) ( 136,555) (1,675,097)
Machinery and equipment (594,699) (167,947) (762,646)
Furniture and fixtures (144,374) (45,061) (189,435)
Other capital (166,144) (166,144)
Information tech - hardware (39,100) (20,615) (59,715)
Information tech - software (14,379) (6,179) (20,558)
Infrastructure (10,025,076) (620,501) (10,645,577)
Total capital assets being depreciated (19,965,697) (1,520,032) (21 ,485,729)
Other capital assets being depreciated, net 19,220,224 (1,244,214) 17,976,010
Augusta Regional Airport capital assets, net 25,021,712 1,505,873 26,527,585
59
AUGUST A, GEORGIA I
Notes to Financial Statements - Continued
Year Ended December 31,2004 I
Note 3 - Detailed notes on all funds (Continued) I
Balance Balance
December 3 1, December 31, I
2003 Additions Disposals 2004
Nonmaior enterprise funds
Capital assets, not being depreciated I
Land $ 2,616,361 $ - $ $ 2,616,361
Construction in process 576,311 1,788 578,099
Total capital assets not being depreciated 3,192,672 1,788 3,194,460
Other capital assets: I
Site and building improvements 1,729,712 1,729,712
Landfill Cell lIC 9,399,876 9,399,876 I
Buildings 3,212,244 3,212,244
Vehicles 4,781,408 848,458 (550,429) 5,079,437
Machinery and equipment 475,020 1,045,847 1,520,867
Furniture and fixtures 11,385 11,385 I
Infrastructure 1,485,833 1,485,833
IT - hardware 67,250 67,250
IT - software 441,734 441,734
Total capital assets being depreciated 21,604,462 1,894,305 (550,429) 22,948,338 I
Less accumulated depreciation for:
Site and building improvements (1,109,214) (66,097) (1,175,311 ) I
Landfill CelllIC (8,459,888) (939,988) (9,399,876)
Buildings (1,119,913) (102,505) (1,222,418)
Vehicles (2,970,415) (475,354) 477,921 (2,967,848)
Machinery and equipment (351,244) (23,780) (375,024) I
Furniture and fixtures (759) (1,139) (1,898)
Infrastructure (592,430) (49,528) (641,958)
IT - hardware (42,657) (14,775) (57,432)
IT - software (441,963) (1,388) (443,351) I
Total accumulated depreciation (15,088,483) (1,674,554) 477,921 (16,285,116)
Other capital assets, net 6,515,979 219,751 (72,508) 6,663,222 I
Nonmajor enterprise funds, net 9,708,651 221,539 (72,508) 9,857,682
Business-type activities capital assets, net $ 305,095,846 $ 41,786,137 $ (72,508) $ 346,809,475 I
Depreciation expense was charged to business-type activities as follows:
Waste management $ 1,068,003 I
Water and sewer 9,849,006
Augusta regional airport 1,933,687
Municipal golf course 36,557
Daniel Field airport 68,552 I
Transit 501,442
$ 13,457,247 I
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60 I
AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
Year Ended December 31,2004
Note 3 - Detailed notes on all funds (Continued)
Department of Health
Capital asset activity for the Department of Health for the year ended June 30, 2004 was as follows:
Capital assets, not being depreciated
Land
Other capital assets:
Buildings
Improvements
Equipment
Vehicles
Less accumulated depreciation
Other capital assets, net
June 30,
2003
$ 1,437,797 $
5,978,485
595,153
99,829
132,466
6,805,933
(807,402)
Governmental activities capital assets, net $ 7,436,328 $
5,998,531
Additions
Disposals
June 30,
2004
$ 1,437,797
5,978,485
595,153
148,657
151,261
6,873,556
(1,014,824)
5,858,732
$ 7,296,529
Augusta Canal Authoritv
Capital asset activity for the Augusta Canal Authority for the year ended December 31, 2004 was as follows:
Capital assets not being depreciated:
Land
Construction in process
Total capital assets not being depreciated
Capital assets being depreciated:
Leasehold improvements
Boats
Vehicles
Machinery and equipment
Computer equipment
Office equipment
Furniture and fixtures
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Leasehold improvements
Boats
Vehicles
Machinery and equipment
Computer equipment
Office equipment
Furniture and fixtures
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated - net
December 31,
2003
$ 217,000 $
565,671
782,671
3,850,864
348,536
19,621
15,685
15,761
3,799
22,424
274,033
4,550,723
(109,780)
(4,647)
(5,232)
(4,186)
(9,249)
(2,009)
(9,370)
(3,654)
(l48,127)
4,402,596
Governmental activities capital assets, net $ 5,185,267 $
*
Disposals in Construction in progress are shown as additions to Capital assets being depreciated.
61
$
48,828
18,795
67,623
(207,422)
(139,799)
(139,799) $
Additions
Deletions
- $
4,936,006
4,936,006
(348,535)
(348,535)
348,535
20,704
369,239
(l42,543)
(24,397)
(l,962)
(1,569)
(2,239)
(475)
(2,776)
(11,168)
(l87,129)
182,110
5,1l8,116 $
(348,535) $
December 31,
2004
$
217,000
5,153,142
5,370,142
3,850,864
697,071
19,621
15,685
15,761
3,799
22,424
294,737
4,919,962
(252,323)
(29,044)
(7,194)
(5,755)
(ll,488)
(2,484)
(12,146)
(14,822)
(335,256)
4,584,706
9,954,848
AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on all funds (Continued)
Downtown Development Authority (Unaudited)
Capital asset activity for the year ended December 31, 2004 was as follows:
December 31, December 31,
2003 Additions Deletions 2004
Capital assets:
Port Royal parking deck $ 2,600,000 $ - $ $ 2,600,000
Riverfront parking deck 3,816,000 3,816,000
Construction in progress 16,000 41,393 57,393
Total capital assets 6,432,000 41,393 6,473,393
Less accumulated depreciation for.
Port Royal parking deck (910,000) (910,000)
Riverfront parking deck (1,240,200) (1,240,200)
Total accumulated depreciation (2,150,200) (2,150,200)
Capital assets, net $ 4,281,800 $ 41,393 $ $ 4,323,193
Depreciation expense for the year ended December 31, 2004 was $0.
D. Accounts payable and accrued liabilities
Payables for the Government at December 31, 2004 were as follows:
Governmental
Funds
Enterprise
Funds
Adjustments
To Full Accrual
Total
Total
Payab1es:
Accounts payable $ 5,502,482 $ 4,591,714 $ 10,094,196 $
Accrued interest 4,436,061 4,436,061
Accrued salaries and vacation 3,710,065 1,332,656 5,042,721
Other accrued liabilities 1,198,886 2,547,103 3,745,989
552,035 $
40,769
(631,970)
45,323
10,646,231
4,476,830
4,410,751
3,791,312
Total accounts payable and
accrued liabilities
6,157 $ 23,325,124
$ 10,411,433 $ 12,907,534 $ 23,318,967 $
Adjustments to full-accrual basis include $40,769 related to accrued interest on governmental long-term debt,
$674,257 relating to the reclassification of accrued vacation from accrued liabilities to liabilities due within one year,
and accounts payable, accrued salaries and vacation. and other accrued liabilities of $552,035, $42,287 and $45,323,
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
Also, the fiduciary fund fmancial statements include $26,238 in accounts payable recorded in pension trust funds. This
amount is excluded from the foregoing schedule and represents amounts due to various other agencies, individuals or
governments.
62
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on all funds (Continued)
E. Deferred/Unearned Revenues
The balance of deferred revenues in the fund financial statements (includes both the deferred and unearned amounts
disclosed below) and unearned revenues in the government-wide financial statements at year-end is composed of the
following elements:
Taxes receivable net of allowance - General Fund
Taxes receivable net of allowance - Fire Protection Fund
Taxes receivable net of allowance - Nonmajor governmental funds
Grant income received in advance of being earned - General Fund
Grant income received in advance ofbeing earned - Nonmajor governmental funds
Business license income received in advance of being earned - General Fund
Insurance premium income received in advance of being earned - Fire Protection Fund
Gift certificate purchases - Nonmajor enterprise fund
Deferred Unearned
Revenue Revenue
$ 2,758,592 $
360,085
1,850,065
512,517
683,410
9,086,044
600
$ 4,968,742 $ 10,282,57 I
F. Landfill closure and postclosure costs
State and Federal laws and regulations require the Government to place a final cover on its landfill when closed and
perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to
operating expenses related to current activities of the landfill, an expense provision and related liability are being
recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill
no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of
the landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of
$12,421,217 as of December 31, 2004, which is based on 93.90% usage (filled) of Cell II C which is operating
currently, and 100% usage (filled) of Cells II A and II B. This liability is recorded in the Waste Management
Enterprise Fund. It is estimated that an additional $515,603 will be recognized as closure and postclosure care
expenses between the date of the statement of net assets and the date the landfill is expected to be filled to capacity,
which is in the next 4 years. The estimated total current cost of the landfill closure and postclosure care, $12,936,820,
is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and
maintain the landfill were acquired as of December 31,2004. However, the actual cost of closure and postclosure care
may be higher due to inflation, changes in technology, or changes in landfill laws and regulations.
The Government expects to finance the costs for the estimated landfill closure and postclosure care costs as they
become due during the coming thirty years through the regular operations of the Government.
G. Long-term debt
Primary government
1. Governmental activities
In a prior year, a portion of the Certificates of Participation (Series 1993) was defeased by the creation of an
irrevocable trust fund. Original proceeds remaining from the issue were used to purchase U.S. Government
securities that were placed in a trust fund. The investments and fixed earnings from the investment are sufficient to
fully service the defeased debt until the debt matures. For financial reporting purposes, the debt is considered
defeased and, therefore, not included as a liability in the government-wide financial statements Funds. As of
December 31, 2004, the amount of defeased debt outstanding but removed from the governmental debt is
$1,245,000.
63
AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
Year Ended December 31, 2004
I
Note 3 - Detailed notes on all funds and account groups (Continued)
I
Notes payable
Housing and Neighborhood Development:
Section 108 loan - due in annual installments of $65 ,000 to $1,0 I 0,000, plus interest at 9%,
through August 2005.
$ 1,010,000
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Augusta Port Authority:
$1,200,000 1993 Augusta Port Authority Bonds - due in monthly principal and interest
installments of$9,773 through April 2008.
I
$ 362,804
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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
(853,392)
$ 16,034,608
Total
Principal Interest
1,110,317 $ 942,157
105,923 813,535
111,843 807,616
44,721 802,620
802,180
4,010,900
4,010,900
4,010,900
16,888,000 2,807,630
18,260,804 $ 19,008,438
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Total
Notes Payable Revenue Bonds Certificates of Palticipation
Year ending
December 31 Principal Interest Principal Interest Principal Interest
2005 $ 1,010,000 $ 123,016 $ 100,317 $ 16,961 $ $ 802,180 $
2006 105,923 11,355 802,180
2007 111,843 5,436 802,180
2008 44,721 440 802,180
2009 802,180
2010-2014 4,010,900
2015-2019 4,010,900
2020-2024 4,010,900
2025 - 2029 16,888,000 2,807,630
$ 1,010,000 $ 123,016 $ 362,804 $ 34,192 $ 16,888,000 $ 18,851,230 $
Certificates of Participation
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In June 1998, the Government entered into a lease pool agreement with the Georgia Municipal Association (the
"Association"). The funding of the lease pool was provided by the issuance of$150,126,000 Certificates of Participation
by the Association. The Association passed the net proceeds through to the participating municipalities with the
Government's participation totaling $16,888,000, shown net of original issue discount of 898,307 at $15,989,693. The
lease pool agreement with the Association provides that the Government owns their portion of the assets invested by the
pool and is responsible for the payment of their portion of the principal and interest of the Certificates of Participation. The
principal of $1 6,888,000 is due in a lump sum payment on June 1,2028. Interest is payable at a rate of 4.75% each year.
The Government draws from the investment to lease equipment from the Association. The lease pool agreement requires
the Government to make lease payments back into its investment account to fund the principal and interest requirements of
the 1998 GMA Certificates of Participation. Equipment in the amount of$I,784,348 was leased during 2004.
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
I
Note 3 - Detailed notes on aU funds (Continued)
I
2. Business-type activities
Revenue bonds
Water and Sewer:
$160,000,000 2004 Water and Sewer Bonds - due in interest only payments of $8,400,000 through
October 2032. Principal due in annual installments beginning October 2003 through October 2039
From $19,500,000 to $26,510,000, plus interest of5.25%. $ 160,000,000
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$149,400,000 2002 Water and Sewer Bonds - due in annual installments of $235,000 to
$20,610,000 starting October 2002 through October 2032, plus interest varying from 2/50%
to 5.75% on $57,840,000 serial bonds, with interest of 5.0% on $91,560,000 term bonds. 147,335,000
$97,080,0002000 Water and Sewer Bonds - due in annual installments of $355,000 to
$11,105,000, plus interest at 4.4% to 5.25% through October 2030. 97,080,000
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$66,640,0001996 Water and Sewer Bonds - due in annual installments of$920,000 to $4,445,000,
plus interest at 3.6% to 6.25% through October 2028 (this liability is reflected in the Water and
Sewer Fund net of deferred refunding amount of$2,020,740).
58,465,000
$5,910,000 1997 Water and Sewer Bond - due in annual installments of $100,000 to $400,000,
plus interest at 3.6% to 5.25%, through October 2021. (This liability is reflected in the Water and
Sewer Fund net of deferred refunding amount of$410,549).
4,715,000
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Total
Less: Deferred refunding amounts
Less: Bond issue discounts
Add: Bond issue premiums
467,595,000
(2,232,632)
(4,578,619)
6,985,828
Total revenue bonds - Water and sewer
467,769,577
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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 00.0% to 4.0% payable semi-annuaUy on June 1 and December 1, beginning
December 1,2004
Add: Bond issue premium
Total revenue bonds - Waste Management
11,475,000
202,694
11,677,694
Total revenue bonds
$ 479,447,271
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Notes payable
Water and Sewer Fund:
State revolving loan - due in quarterly principal and interest installments of $94,668, plus interest
at 4%, through May 2016. $
3,476,890
State revolving loan - principal and interest due in quarterly installments of $119,392, plus
interest at 4%, through July 2019.
5,235,178
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Total
$
8,712,068
65
AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2004
Note 3 - Detailed notes on all funds (Continued)
Business-type Activities
Year ending Notes Payable Revenue Bonds Total
December 31 Principal Interest Principal Interest Principal Interest
2005 $ 515,424 $ 343,511 $ 3,785,000 $ 22,696,748 $ 4,300,424 $ 23,040,259
2006 536,353 322,692 4,275,000 24,147,625 4,811,353 24,470,317
2007 558,131 301,028 5,490,000 23,973,375 6,048,131 24,274,403
2008 580,793 278,484 6,410,000 23,743,950 6,990,793 24,022,434
2009 604,376 255,025 7,225,000 23,4 73,138 7,829,376 23,728,163
2010-2014 3,410,524 888,509 40,335,000 112,411,455 43,745,524 113,299,964
2015-2019 2,506,467 231,162 49,590,000 101,744,103 52,096,467 101,975,265
2020-2024 62,555,000 87,655,597 62,555,000 87,655,597
2025-2029 80,495,000 69,714,691 80,495,000 69,714,691
2030-2034 98,935,000 46,992,013 98,935,000 46,992,013
2035-2039 119,975,000 19,539,713 119,975,000 19,539,713
$ 8,712,068 $ 2,620,411 $ 479,070,000 $ 556,092,408 $ 487,782,068 $ 558,712,819
During 2004, the Government issued $160 million in Series 2004 Water and Sewerage Revenue bonds for the purpose
of financing the costs of making additions, extensions and improvement to the Utilities' water and sewer system.
During 2004, the Government issued $11,475,000 in Series 2004 Solid Waste Management Authority of Augusta
Revenue bonds for the purpose of paying all or a portion of the costs of improving and equipping the Government's
municipal solid waste landfill.
During 2002, the Government issued $149.4 million in Series 2002 Water and Sewerage Revenue bonds. A portion of
the proceeds from the sale of these bonds was used to pay the outstanding balance of the Georgia Environmental
Facilities Authority revolving loan in the amount of $8,815,000 with an interest rate of 5.5%. The remaining portion of
the bond proceeds $140,585,000 was issued for the purpose of financing the costs of making additions, extensions and
improvements to the Utilities' water and sewer system. A portion of the net proceeds of $8,692,368 (after payment of
$153,574 of underwriting fees and other issuance costs) was used to repay the Georgia Environmental Facilities
Authority revolving loan. The remaining portion of the proceeds of $125,691,320 (after payment of $2,748,066 of
underwriting fees and other issuance costs) plus an additional $11,753,672 of funds from a capitalized interest fund is to
be used for improvements to the 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.
During 2000, the Government issued $97.08 million 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.
During 1996, the Government issued $66.6 million in Series 1996 Water and Sewerage revenue bonds. A portion ofthe
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 $19.4 million plus an additional $4.9 million of sinking fund monies from the defeased
issues were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust fund
with an escrow agent to provide for all future debt service payments on the above-mentioned bonds. As a result, the
bonds are considered to be defeased and the liabilities for those bonds have been removed from the Water and Sewer
Fund.
In 1997, the Government issued $5.9 million in Series 1997 Water and 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 $5.6 million plus an additional $.9 million of sinking
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2004
Note 3 - Detailed notes on all funds (Continued)
fund monies from the defeased issues were used to purchase U.S. government securities. Those securities were
deposited in an irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above-
mentioned bonds. As a result, the bonds are considered defeased and the liability for those bonds have been removed
from the Water and Sewer Fund.
As of December 31,2004, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund
is $2,710,086.
The advance refunding during 1996 resulted in a difference between the reacquisition price and the net carrying amount
of the old debt of approximately $2.5 million. This difference, reported in the accompanying financial statements as a
deduction from bonds payable, is being charged to operations through the year 2028 using the effective-interest
method. The refunding increased the total debt service payments over the next 30 years by approximately $8.6 million
and produced an economic gain of approximately $260,000.
The advance refunding during 1997 resulted in a difference between the reacquisition price and the net carrying amount
of the old debt of approximately $540,000. This difference, reported in the accompanying financial statements as a
deduction from bonds payable, is being charged to operations through the year 2021 using the effective-interest method.
The refunding will increase total debt service payments over the next 24 years by approximately $2.1 million and will
produce an economic gain of approximately $110,000.
Department of Health
The Department of Health's long-term liabilities represent compensated absences. The debt for compensated absences
was $566,064 at June 30, 2004.
Augusta Canal Authority
Notes vavable
$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 3.27% at December 31, 2004, 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.
Revenue note
$8,000,000 revenue note payable to a bank due in ten annual installments of $800,000 beginning April 2007. As of
December 31,2004, $3,612,993 had been drawn on the note. The note bears interest at a variable rate equal to 65% of
the daily floating LIB OR plus 150 basis points. The note is secured by the revenues and proceeds derived from the
Consolidated Government of Augusta, Georgia. The Authority entered into an Intergovernmental Agreement with the
Consolidated Government. The Consolidated Government's obligation to make all interest and principal payments due
on the note is absolute and unconditional.
Year Ending
December 31,
Notes Payable
Principal Interest
2005
2006
2007
2008
2009
2010 - 2014
29,386 $
17,631
5,877
Revenue Note Total
Principal Interest Principal Interest
$ 241,348 $ 360,000 $ 270,734
241,348 360,000 258,979
800,000 214,628 1,160,000 220,505
800,000 161,188 800,000 161,188
800,000 107,748 800,000 107,748
1,212,993 68,102 1,212,993 68,102
3,612,993 $ 1,034,362 $ 4,692,993 $ 1,087,256
67
$
360,000 $
360,000
360,000
$ 1,080,000 $
52,894 $
AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on all funds (Continued)
Downtown Development Authority (Unaudited)
Development Authority Refunding Revenue Bonds, Series 2003:
In May of 2003, the Development Authority of the City of Augusta issued $4,035,000 Development Authority Revenue
Bonds, Series 2003. The proceeds of these bonds were used to redeem two previous issuances of revenue bonds,
Development Authority Parking revenue Bonds, Series 1989 and 1991. The original bond issuances were used to fund the
construction of two parking decks in downtown Augusta, Georgia.
The Series 2003 Bonds are limited, special obligations of the Authority and are secured from payments received under an
intergovernmental lease between the City of Augusta and the development Authority for use of the two parking decks.
Interest on the Series 2003 development Authority Bonds is paid semi-annually. The interest rate is 2.56%. Principal is
due on January I of each year as follows:
Year
Principal
Payments
2005
2006
2007
2008
2009 - 2010
$
575,000
550,000
575,000
585,000
1,175,000
$
3,460,000
H. Leases
The Government has entered into several long-term lease agreements for various vehicles and machinery and
equipment. Although the leases contain clauses which provide that the leases are cancelable if funds are not
appropriated for the periodic payments for any future fiscal periods, the leases meet the criteria of a capital lease as
defmed by Statement of Financial Accounting Standards No. 13 Accounting for Leases and the National Council on
Governmental Accounting Statement No. 5 Accounting and Financial Reporting Principles for Lease Agreements of
State and Local Governments.
The Government's lease agreements are through the Georgia Municipal Association and are accounted for in an
internal service fund.
Future minimum lease payments under the leases and the net present value of the minimum lease payments as of
December 31,2004 are as follows:
2005
2006
2007
2008
2009
Less: Amount representing interest
Governmental Business-type
Activities Activities
$ 1,378,277 $ 750,661
689,329 311,316
417,017 154,806
118,860
171,002
$ 2,484,623 $ 1,506,645
Present value of lease payments
Interest amounts are not material to the financial statements.
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
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Year Ended December 31,2004
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Note 3 - Detailed notes on all funds (Continued)
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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.
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During 2004, rental income totaled approximately $2.1 million and $100,000 in the Augusta Regional Airport at Bush
Field and Daniel Field Airport Funds, respectively.
The assets acquired through capital leases as of December 31, 2004 are as follows:
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Governmental Business-type
Activities Activities
Vehicles $ 14,385,159 $ 2,944,603
Machinery and equipment 2,495,395 1,766,829
Less: accumulated depreciation (9,067,547) (1,485,284)
Carrying value $ 7,813,007 $ 3,226, 148
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AUGUST A, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31, 2004
Note 3 - Detailed notes on aU funds (Continued)
Augusta Canal Authoritv
The following is a summary of long-term debt transactions for Augusta Canal Authority of the year ended December 31,
2004:
Beginning Ending Current
Balances Additions Reductions Balances Portion
Governmental activities:
Notes payable:
Notes payable $ 1,440,000 $ $ (360,000) $ 1,080,000 $ 360,000
Revenue payable 3,612,993 3,612,993
Total notes payable 1,440,000 3,612,993 (360,000) 4,692,993 360,000
Other liabilities:
Compensated absences 14,942 8,720 (6,006) 17,656 17,656
Total other liabilities 14,942 8,720 (6,006) 17,656 17,656
Governmental activities
Long-term liabilities $ 1,454,942 $ 3,621,713 $ (366,006) $ 4,710,649 $ 377,656
Downtown Development Authoritv (Unaudited)
Long-term debt activity for the year ended December 31,2004 was as follows:
General Long-term Debt
Development
Authority
Bonds,
Series 2003
Debt outstanding at December 31, 2003
$ 4,035,000
Principal payments
(575,000)
Debt outstanding at December 31, 2004
$
3,460,000
J. Interfund balances and activities
Due Fromffo Other Funds
The composition of interfund balances as of December 31, 2004 are as follows:
Due to Other Funds
Water and
Due from other Sewer Nonmajor Nonmajor Internal Trust and
funds Fund Bush Field Governmental Enterprise Service Agency Total
General Fund $ 5,651,048 $ 1,806,283 $ 234,628 $ 5,538,883 $ 747,444 $ 334,302 $ 14,312,588
Total interfuDd
balances $ 5,651,048 $ 1,806,283 $ 234,628 $ 5,538,883 $ 747,444 $ 334,302 $ 14,312,588
Amounts were due to other funds primarily for timing of payments from agency funds.
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
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Year Ended December 31,2004
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Note 3 - Detailed notes on aU funds (Continued)
Transfers TolFrom Other Funds
Transfers in (out) for the year ended December 31, 2004 are summarized below:
Fire Special Special
General Protection Sales Tax Sales Tax Nonmajor Nonmajor
Transfers out Fund Fund Phase III Phase IV Governmental Enterprise Total
General Fund $ $ $ $ $ 515,630 $ $ 515,630
Special Sales
Tax Phase III 339,393 339,393
Nonm<ijOf"
Enterprise 82,380 82,380
Nonmajor
governmental 2,627,790 6,066,700 1,756,122 4,711,820 15,162,432
Total transfers $ 2,627,790 $ 6,066,700 $ 1,756,122 $ 421,773 $ 515,630 $ 4,711,820 $ 16,099,835
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Transfers between the nonmajor governmental funds, the General fund and other nonmajor governmental funds were
primarily to support the operation of the funds.
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Note 4 - Other information
A. Risk management
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The Government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; and natural disasters for which the Government is self-insured. The Risk Management Funds (an
internal service fund) are utilized by the Government to account for and finance its self-insured risks of loss. The Risk
Management Funds are maintained to provide general liability insurance, workers' compensation coverage, and
unemployment coverage. The Government is self-insured for workers' compensation coverage through a self-
insurance program that is administered under contracts with a third party administrator. Future claims can be paid
from designated funds established in 1987 from previously unrestricted-unreserved funds. Balances as of December
31,2004, include the following:
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General Fund
Fire Protection Fund
Internal Service Fund
$ 4,705,061
250,000
200,000
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Total reserve
$ 5,155,061
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Related liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). Claim liabilities
are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of
payouts and other economic and social factors.
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The following represents the changes in the balance of claim liabilities for the Government from January 1, 2003 to
December 31, 2004:
Unpaid claims, January I, 2003
Incurred claims (including IBNRs)
Claim payments
Unpaid claims, December 31,2003
Incurred claims (including IBNRs)
Claim payments
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$ 1,064,635
1,671,958
(1,311,409)
1,425,184
3,851,173
(1,057,600)
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Unpaid claims, December 31,2004
$
4,218,757
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AUGUST A, GEORGIA
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Notes to Financial Statements - Continued
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Year Ended December 31, 2004
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Note 4 - Other information (Continued)
B. Contingent liabilities
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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.
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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, 2004, in compliance with the Single Audit Act Amendments of 1996 and OMB
Circular A-B3. 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.
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C. Contracts and commitments
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Augusta-Richmond County Coliseum Authority
The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt
to the extent of the 50% Hotel-Motel Excise Tax and 30% of the Beer Tax collected.
D. Richmond County Public Facilities, Inc.
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The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code
Section 50I(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.
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Richmond County Public Facilities, Inc. issued Certificates of Participation to provide funds for the Government to
refund the 1990 Certificates of Participation issue and for certain capital projects. The related assets are included in the
financial statements of the Government in the General Fixed Asset Account Group. The Certificates of Participation
were retired during 200 I.
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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.
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Note 5 - Pension plans
A. Plan descriptions, contribution information and funding policies
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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.
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AUGUSTA, GEORGIA
Notes to Financial Statements - Continued
Year Ended December 31,2004
Note 5 - Pension plans (Continued)
Single-emplover pension plans
1945 Plan
The 1945 Plan was available to aU former Richmond County employees hired prior to October 1, 1975 that met the
Plan's age and length of service requirements. Participants in the Plan who retired at or after age 60 are entitled to a
monthly benefit equal to 2% of average earnings multiplied by years of service. Also, the benefit is not to exceed 60%
of the average earnings. The Plan provides death and disability benefits. These benefit provisions and all other
requirements including amendments are established by Government ordinance. The Plan also provides for reduced
benefits if the participant elects to retire after attaining age 50 and completing 15 years of service. Employees are
required to make contributions to the Plan equal to 5% of earnings. The Government is required to contribute the
remaining amounts necessary to fund the Plan. If a participant terminates employment prior to completion of ten years
of credited service, the participant receives a lump-sum amount equal to his total contributions to the Plan, with 5%
interest computed from January 1, 1997. After completion of at least ten years of credited service, the participant
receives a monthly benefit deferred to his normal retirement date, equal to the benefit computed as for normal
retirement multiplied by the percentage based on completed years of credited service, as follows: 50% after 10 years,
increasing 10% each year to 100% after 15 years of credited service. This is a closed retirement plan (new employees
may not participate in the Plan). The 1945 Plan does not issue a stand-alone financial statement report.
1977 Plan
The 1977 Plan was available to all former Richmond County full-time employees who were not participants in the
1945 Plan provided that they were not hired after reaching age 60. Normal retirement for the Plan is age 65 or the date
when age 62 is attained and an employee completes 25 years of credited service. At that time, the employee is entitled
to a monthly benefit equal to I % of average earnings multiplied by years of credited service. The Plan provides death
and disability benefits. These benefit provisions and all other requirements including amendments are established
by Government ordinance. The Plan also provides for reduced benefits if the participant elects to retire after attaining
age 50 and completing 15 years of service. Employees are required to make contributions to the Plan equal to 4% of
earnings. The Government is required to contribute the remaining amounts necessary to fund the Plan. If a participant
terminates employment prior to completion of five years of credited service, the participant receives a lump-sum
amount equal to his total contributions to the Plan, with interest. After completing at least five years of credited
service, the participant receives a monthly benefit deferred to his normal retirement date, equal to the benefit computed
as for normal retirement. This is a closed retirement plan (new employees may not participate in the Plan). The 1977
Plan does not issue a stand-alone financial statement report.
The funding policies for the 1945 and 1977 Plans provide for actuarially determined periodic contributions at rates that,
for individual employees, remain stable over time so that sufficient assets will be available to pay benefits when due.
The attained age aggregate cost method has been used to compute the normal cost for the plan. Any unfunded plan
costs are spread over the average future working lifetime of the participants as a level percentage of payrolL The
significant actuarial assumptions used to compute pension contribution requirements are the same as those used to
determine the standard measure of the pension obligation.
General Pension Plan. Policemen's Pension Plan. Firemen's Pension Plan and the City Employees' Pension Plan
These Plans covered former City of Augusta employees. Policemen and firemen hired before 1945 are covered under
the General Pension Plan. Policemen hired between 1945 and 1949 are covered under the Policemen's Pension Plan.
Firemen hired between 1945 and 1949 are covered under the Firemen's Pension Plan. Other former City of Augusta
employees hired between 1945 and 1949 are covered by the City Employees' Pension Plan. Pension benefits are being
paid under these Plans to retired employees and beneficiaries. These are closed retirement plans (new employees may
not participate in the plans). These plans do not issue stand-alone financial statement reports.
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AUGUSTA, G.EORGIA
Notes to Financial Statements - Concluded
Year Ended December 31, 2004
Note 5 - Pension plans (Continued)
General Retirement Plan
Employees hired after March I, 1949 and before March I, 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 I, 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.
Periodic employer contributions to the pension plan are determined on an actuarial basis using the frozen entry age cost
method. The unfunded accrued liability is composed of pieces that are amortized over various periods to comply with
Georgia law. When the actuarial value of assets exceeds 150% of the present value of accrued benefits, the Official
Code of Georgia Annotated states that there is no minimum required contribution. The significant actuarial
assumptions used to compute pension contribution requirements are the same as those used to determine the standard
measure of the pension obligation.
Agent multiple-employer pension plan
Georgia Municipal Employees Benefit System (GMEBS)
Employees hired after March I, 1987 and before consolidation on December 31, 1995, and who were not participants
in any other employer-sponsored retirement plan are covered under the Georgia Municipal Employees Benefit System.
The Plan provides pension benefits, deferred allowances, and death and disability benefits. These benefit
provisions and all other requirements including amendments are established by Government ordinance. A
participant may retire after reaching the age of 65 if the participant is not classified as public safety personnel;
participating public safety personnel may retire at age 65 or age 55 with 25 years of total credited service, whichever is
earlier. Early retirement may be taken at age 55 with 10 years of credited service. Benefits vest after 10 years of
service. Employees who retire at or after age 55 with 10 or more years of service are entitled to pension payments for
the remainder of their lives equal to I 1/4% of their final five-year average salary times the number of years of which
they were employed as a participant in the GMEBS. The final five-year average salary is the average salary of the
employee during the final five years of full-time employment. Pension provisions include deferred allowances,
whereby an employee may terminate his or her employment with the Government after accumulating 10 years of
service but before reaching the age of 55. If the employee does not withdraw his or her accumulated contributions, the
employee is entitled to all pension benefits upon reaching the age of 55. Employees must contribute 3.5% of their
gross earnings to the Plan. In addition, the Government must provide annual contributions sufficient to satisfy the
actuarially determined contribution requirements as amended by GMEBS. The GMEBS Retirement Fund issues a
publicly available financial report that includes fmancial statements and required supplementary information. That
report may be obtained by WTiting to Georgia Municipal Employees Benefit System, 201 Pryor Street, SW, Atlanta,
Georgia 30303.
Periodic employer contributions to the pension plan are determined on an actuarial basis using the entry age normal
actuarial cost method. Normal cost is funded on a current basis. The Plan is subject to the minimum funding standards
of the Public Retirement Systems Standards Law. Since the Government's policy is to contribute the pension expense
in each year, the funding strategy should provide sufficient resources to pay employee pension benefits on a timely
basis. The significant actuarial assumptions used to compute pension contribution requirements are the same as those
used to determine the standardized measure of the pension obligation.
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AUGUST A, GEORGIA
Notes to Financial Statements - Concluded
Year Ended December 31, 2004
Note 5 - Pension plans (Continued)
Membership of the defined benefit plans are as follows:
Retirees and beneficiaries
receiving benefits
Terminated plan members
entitled to but not yet
receiving benefits
Active
Plan
members
1945 Plan
1977 Plan
General Pension Plan
Policemen's Pension Plan
. Firemen's Pension Plan
City Employees' Pension Plan
General Retirement Plan (City 1949)
GMEBS
37
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8
12
146
75
168
4
590
10
4
149
215
Total
358
182
958
The cost of administering the plans are financed through investment earnings.
Actuarial assumptions and other information used to determine the annual required contributions are located in the
Supplementary Information section of this report.
Defined contribution plan
Augusta-Richmond County Board of Commissioners Retirement Savings Plan (the "1998 Plan")
All full-time employees with more than one month of service are eligible to participate in the Retirement Savings Plan.
The Plan is a defined contribution plan under Section 401(a) of the Internal Revenue Code, and is administered by
Nationwide Life Insurance, PP A support. The Plan was organized and may be amended by a majority vote of the full-
body of the governing board, the Augusta-Richmond County Commission. Employees contribute four percent (4%) of
their salary, and the Government contributes two percent (2%) of the employee's salary. At December 31,2004, there
were approximately 1,272 plan participants. Participants are considered fully vested in the Government's contributions
after completing five (5) years of service. For the year ended December 31, 2004, the employees' contributions were
approximately $1,704,963, and the Government's contributions were approximately $886,318.
Richmond County Department of Health - General Retirement Plan
All current full-time employees of the Department of Health participate in the Employees' Retirement System of
Georgia (ERS), which is a cost-sharing multi-employer, defined benefit, public employee retirement system. The
Department contributes at a specified percentage of active members payroll determined by actuarial valuation. The
contribution requirements of plan members and the Department are established and may be amended by the ERS Board
of Trustees. Retirement contributions made on behalf of eligible participants for the year ended June 30, 2004 were
$608,794. Members become fully vested after ten years of service.
Post-employment retirement benefits
The Government provides certain health care and life insurance benefits for retired employees of the Government. The
Government's employees who are also participants in one of the retirement plans are eligible for these post-
employment retirement benefits if they reach normal retirement age or are totally disabled while employed by the
Government. The cost of these benefits is recognized as expenditures as claims and premiums are paid. For the year
ended December 31,2004, there were 399 retirees eligible for these post-retirement benefits, which cost approximately
$1,044,979.
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AUGUSTA, GEORGIA
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Notes to Financial Statements - Concluded
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Year Ended December 31, 2004
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Note 5 - Pension plans (Continued)
B. Summary of significant accounting policies
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Pension trust funds are accounted for on the accrual basis. The accrual basis of accounting recognizes revenues when
earned. Expenses are recorded when incurred. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions are recognized when due and the Government has made a fonnal
commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance
with the terms of the plan. For information relating to reported investment values, see Note I G.
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C. Concentrations and reserves
There are no assets legally reserved for purposes other than the payment of plan member benefits for any plans.
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The plans held no individual investments whose market value exceeds five percent or more of net assets available for
benefits. There are no long-term contracts for contributions.
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D. Annual pension cost and net pension obligation
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The Government's annual pension cost is determined using the calculation methodology defined inGASB Statement
No. 27. The annual pension cost equals the Government's annual required contribution, plus any adjustments required
to reflect defined minimum and maximum amortization periods and any prior period differences between the actual
contribution paid into the plans and the annual pension cost.
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Notes to Financial Statements - Concluded I
Year Ended December 31, 2004 I
Note 5 - Pension plans (Continued) I
E. Trend information
Fiscal Annual Actual Percentage of Net Pension I
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
2001 I
1945 Plan 01/01/2001 $ $ 100% $
1977 Plan 01/01/2001 979,131 998,983 102%
General Pension Plan 01/01/2001 89,008 89,008 100%
Policemen's Pension Plan 01/01/200 I 64,863 64,863 100% I
Firemen's Pension Plan 01/0 l/200 1 214,272 214,272 100%
City Employees' Pension
Plan o l/O 1/200 1 263,080 263,080 100% I
General Retirement Plan
(City 1949) o l/O 1/200 1 100%
GMEBS 01/01/2001 192,622 192,622 100%
Fiscal Annual Actual Percentage of Net Pension I
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation I
2002
1945 Plan o l/O l/2002 $ $ 100% $
1977 Plan o l/Ol/2002 916,427 925,071 101% (54,035)
General Pension Plan o l/O l/2002 23,348 23,348 100% I
Policemen's Pension Plan o l/O l/2002 66,888 66,888 100%
Firemen's Pension Plan 01/01/2002 206,334 206,334 100%
City Employees' Pension I
Plan 01/01/2002 299,512 299,512 100%
General Retirement Plan
(City 1949) 01/0 1/2002 100%
GMEBS 01/01/2002 168,316 168,316 100% I
Fiscal Annual Actual Percentage of Net Pension I
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
2003
1945 Plan 01/0 l/2003 $ $ 100% $ I
1977 Plan 01/01/2003 620,596 655,871 106% (179,218)
General Pension Plan 01/0 l/200 3 24,290 24,290 100%
Policemen's Pension Plan o l/O l/2003 70,546 70,546 100% I
Firemen's Pension Plan 01/01/2003 182,862 182,862 100010
City Employees' Pension
Plan 01/01/2003 285,177 285,177 100%
General Retirement Plan I
(City 1949) 01/0 l/2003 100%
GMEBS 01/01/2003 181,834 181,834 100%
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AUGUST A, GEORGIA
Notes to Financial Statements - Concluded
Year Ended December 31, 2004
Note 5 - Pension plans (Continued)
Fiscal Annual Actual Percentage of Net Pension
Year Pension County APC (Asset)
Beginning Cost Contribution Contributed Obligation
2004
1945 Plan 01/01/2004 $ 170,881 $ 170,890 100% $
1977 Plan 01/01/2004 913,601 955,819 105% (214,493)
General Pension Plan 01/01/2004 25,092 25,092 100%
Policemen's Pension Plan 01/0 1/2004 72,874 72,874 100%
Firemen's Pension Plan 01/01/2004 188,896 188,896 100%
City Employees' Pension
Plan 01/0 1/2004 249,565 249,565 100%
General Retirement Plan
(City 1949) 01/01/2004 100%
GMEBS 01/01/2004 200,432 200,432 100%
Note 6 - Joint venture and related organization
Joint venture
Under Georgia law, the Government, in conjunction with the sixteen counties and fifty-four cities in east Georgia known as
the Central Savannah River Area (CSRA), is a member of the CSRA Regional Development Center (CSRA RDC). The
CSRA RDC is a public organization that assists local governments in planning for common needs, cooperating for mutual
benefit, and coordinating for sound regional development. The operations are mainly financed by membership dues and
financial assistance provided by the State of Georgia. Membership in the CSRA RDC is required by the Official Code of
Georgia Annotated (O.C.G.A.) S58-8-34 with annual dues based on a per capita amount. During the year ended
December 31,2004, the Government paid $107,350 in such dues, which was based on a per capita amount of $.55. The
CSRA RDC Board membership is composed of one city official, one county official, and one private sector individual from
each county. O.C.G.A. S58-8-39.1 provides that the Government is liable for any debts or obligations of the CSRA RDC.
The Comprehensive Annual Financial Report of the CSRA RDC may be obtained from:
CSRA Regional Development Center
3023 River Watch Pkwy
Augusta, Georgia 30907
Related organization
The Government officials are responsible for appointing the members of the boards of another organization, but the
Government's accountability for these organizations does not extend beyond making the appointments. The Government
commission appoints the voting majority of the members of the Augusta-Richmond County Coliseum Authority.
Note 7 - Hotel/motel lodging tax
The Government has levied a 6% lodging tax. A summary of the transactions for the year ended December 31, 2004
follows:
Lodging tax receipts
$ 2,943,410
Disbursements to the Augusta-Richmond County Coliseum Authority, Augusta
Convention and Visitors Bureau, and the Augusta Museum for promotion of tourism
(2,943,410)
Balance oflodging tax funds on hand at end of year
$
79
AUGUSTA, GEORGIA
Notes to Financial Statements - Concluded
Year Ended December 31, 2004
Note 7 - Hotellmotellodging tax (Continued)
The Government has received audit reports from the Augusta-Richmond County Coliseum Authority, Augusta Convention
and Visitors Bureau, and the Augusta Museum covering the lodging tax monies. The subcontractor's expenditures were for
promotion of tourism as required by O.C.G.A. 948-13-51.
Note 8 - Significant contingencies
Federal and State assisted programs
The Government has received proceeds from several federal and state grants. Periodic audits of these grants are required
and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could
result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be
immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies.
Arbitrage
The City's bond issues are subject to federal arbitrage regulations, and the Government has elected to review its potential
arbitrage liability annually on the bond issue dates. The arbitrage rebate payments are payable on the fifth anniversary of
the bond issue date and every fifth year subsequent to the date. Although the actual amount to be paid is not presently
determinable, the Government believes that arbitrage payables have been adequately provided for in the accompanying
financial statements.
Note 9 - Conduit debt obligations
Conduit debt obligations are limited obligation revenue bonds, certificates of participation, or similar debt instruments
issued for the purpose of providing capital financing for a specific third party that is not a part of the Government's
financial reporting entity. The Government has no obligation for the debt beyond the resources provided by a lease or loan
with the third party on whose behalf the debt was issued.
On December 14, 2000, the Government issued Special Facility Airport Revenue Bonds in the amount of$3,11O,000 which
qualifies as a conduit debt obligation. The bonds are payable solely from revenues pledged under a lease agreement. As of
December 31, 2004, the amount outstanding on the Special Facility Airport Revenue Bonds is $3,110,000.
A - Debt service requirements to maturity for bonds payable
The following requirements to amortize debt outstanding as of December 31,2004, including interest are as follows:
Revenue Bonds
Principal Interest
2005 $ $ 152,390 c;.
2006 ,}
152,390 I'
\ \
2007 152,390 "
"
2008 152,390
2009 152,390
2010 3,110,000 152,390
$ 3, II 0,000 $ 914,340
80
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AUGUSTA, GJi:OKGIA
I
Notes to Financial Statements - Concluded
I
Year Ended December 31,2004
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Note 10 - Prior period adjustments
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In a prior year, the Government made errors in reporting its capital assets and accumulated depreciation, resulting in an
overstatement of capital assets and an overstatement of net assets in the governmental activities and in the business-type
activities of$4,284,090 and $413,655, respectively. During the current year, an adjustment, which decreased beginning net
assets in governmental activities and in business type activities of $4,284,090 and $413,655, respectively, was made to
correct these errors in the accompanying financial statements.
I
In prior years, the Government has reported the Downtown Development Authority as a blended component unit and a
nonmajor special revenue fund. For the year ended December 31, 2004, the Government has reported the Downtown
Development Authority as a discretely presented component unit Beginning fund balance and net assets for governmental
activities have been restated accordingly.
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Note 11 - Long-term obligation for Water and Sewer
Swaption
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Object of the swaption - 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 I, 2006, without issuing refunding
bonds at July 2004. The swaption gave the counterparty the option to make the Utilities enter into a floating-to-fixed
interest rate swap. If the option is exercised, the Utilities would then expect to issue refunding bonds which the
counterparty would underwrite for the Series 1996A and 1997 bonds.
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Terms. The swaption was entered into in July 2004. The $2,121,000 payment was based on a notional amount of
$62,475,000. The counterparty has the option to exercise the agreement on October 1, 2006 - the Utilities' Series
1996A and 1997 bonds' first call date. If the swap is exercised, the swap will also commence October 1, 2006. The
fixed swap rate (4.54 percent) was chosen so that the debt service on the resulting swap (including costs of issuance
and 26 bps of support costs) is roughly equivalent to a breakeven refunding rate on the Series 1996A and 1997 bonds.
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Fair value. As of December 31, 2004, the swap had a negative fair value of $4,343,859, based on quoted market
prices. The negative fair value is a result of changes in interest rates.
I
Market-access risk. If the option is exercised, the Utilities is indifferent If the option is not exercised, the Utilities
will keep the $2,121,000 and still retain the right to refund its bonds at some point in the future.
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Note 12 - Subsequent events
I
In February 2005, the Airport issued $19,605,000 in Airport Revenue Bonds for the purpose of paying the costs of
acquiring, constructing and installing a new airline passenger terminal and certain other capital improvements. The bonds
are divided into three lots with $6,200,000 paying 5A5% due on January 1, 2031, $4,415,000 paying 5.35% due on January
1,2020, and $8,990,000 paying 5.15% due on January 1,2035.
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81
AUGUST A, GEORGIA
I Defined Benefit Pension Trusts - Required Supplementary Information
I December 31,2004
I A. Schedules of funding progress
Actuarial (Funded) (F AAL)
Accrued Unfunded UAAL as
Actuarial Actuarial Liability AAL A%of
I Valuation Value of AAL (F AAL) Funded Covered Covered
Date Assets Entry Age UAAL Ratio Payroll Payroll
1945 Plan
01/01/91 $ 9,055,522 $ 8,084,072 $ (971,450) 112 % $ 670,286 (145) %
I 01/01/93 10,044,942 8,595,037 (1,449,905) 117 620,412 (234)
01/01/94 10,047,526 8,927,649 (1,119,877) 113 606,450 ( 185)
01/01/95 9,936,022 9,440,717 (495,305) 105 598,795 (83)
I 01/01/96 11,537,840 9,566,390 (1,971,450) 121 629,034 (313)
01/01/98 13,934,975 9,431,701 (4,503,274) 148 160,888 (2,799)
01/01/99 13,760,620 12,535,885 (1,224,735) 110 598,795 (205)
01/01/00 13,038,384 12,251,489 (786,895) 106 168,818 (466)
I 01/01/01 12,352,795 12,069,544 (283,251) 102 180,462 (157)
01/01102 11,023,816 10,075,638 (948,178) 109 184,511 (514)
01/01/03 8,897,080 9,878,269 981,189 90 193,921 506
01/01104 9,124,231 I 0,Q75, 778 951,547 91 193,922 491
I 1977 Plan
01/01/91 $ 3,018,241 $ 1,430,898 $ (1,587,343) 211 % $ 3,772,441 (42) %
01/01/93 3,892,816 1,937,061 (1,955,755) 201 4,607,419 (42)
I 01/01/94 4,262,572 2,813,432 (1,449,140) 152 5,180,438 (28)
01/01/95 4,439,451 3,333,577 (1,105,874) 133 6,797,338 (16)
01/0 1/96 5,446,380 4,332,024 (1,114,356) 126 8,952,224 (12)
01/01/97 6,285,732 5,510,585 (775,147) 114 11,509,974 (7)
I 01/01/99 9,976,793 14,137,712 4,160,919 71 24,454,857 17
01101/00 10,836,439 15,060,421 4,223,982 72 21,709,421 19
01101/01 11,136,602 15,575,523 4,438,921 72 21,705,175 20
01101/02 14,065,581 16,860,437 2,794,856 83 21,029,237 13
I 01101103 12,609,297 18,150,192 5,540,895 69 22,187,948 25
01/01/04 15,744,214 21,606,884 5,862,670 73 22,187,948 26
General Pension Plan
I 12/31193 $ - $ 629,859 $ 629,859 - % $ - %
12/31194 619,418 619,418
12/31195 587,797 587,797
12/31/96 564,008 564,008
I 12/31/97 637,605 637,605
12/31/98 533,575 533,575
12/31199 511,305 511,305
12/31100 524,410 524,410
I 12/3110 I 525,089 525,089
12/31102 114,862 114,862
12/31103 98,789 98,789
12/31104 81,433 81,433
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Policemen's Pension Plan
12/31/93 $ - $ 528,904 $ 528,904 - % $ - %
I 12/31194 437,814 437,814
12/31/95 422,070 422,070
12/31/96 417,725 417,725
12/31197 391,153 391,153
I 1213l/98 389,072 389,072
12/31/99 246,783 246,783
12/31100 246,217 246,217
12/31/01 355,840 355,840
I 12/31102 380,143 380,143
12/31103 337,186 337,186
12/31104 290,791 290,791
83
I
AUGUSTA, GEORGIA I
Defined Benefit Pension Trusts - Required Supplementary Information - Continued
December 31,2004 I
A. Schedules of funding progress (Continued) I
Actuarial (Funded) (F AAL)
Accrued Unfunded UAAL as I
Actuarial Actuarial Liability AAL A%of
Valuation Value of AAL (FAAL) Funded Covered Covered
Date Assets Entry Age UAAL Ratio Payroll Payroll
I
Firemen's Pension Plan
12/31193 $ - $ 1,475,590 $ 1,475,590 - % $ - %
12/31/94 1,342,821 1,342,821 I
12/31/95 1,296,843 1,296,843
12/31196 1,202,831 1,202,831
12/31/97 1,507,501 1,507,501
12/31/98 1,479,472 1,479,472 I
12/31/99 1,276,044 1,276,044
12/31/00 1,258,550 1,258,550
12/31/01 1,345,133 1,345,133
12/31/02 1,204,513 1,204,513 I
12/31/03 1,110,698 1,110,698
12/31104 1,009,371 1,009,371
City Emnlovees' Pension Plan I
12/31193 $ - $ 2,960,183 $ 2,960,183 - % $ - %
12/31194 2,704,129 2,704,129
12/31/95 2,598,066 2,598,066
12/31/96 2,584,786 2,584,786 I
12/31197 2,418,723 2,418,723
12/31/98 2,266,704 2,266,704
12/31/99 2,060,501 2,060,501
12/31/00 1,911,904 1,911,904 I
12/31/0 I 1,914,347 1,914,347
12/31/02 2,063,450 2,063,450
12/31/03 1,931,942 1,931,942
12/31/04 1,789,910 1,789,910 I
General Retirement Plan (City 1949)
01/01/93 $ 47,314,256 $ 38,551,529 $ (8,762,727) 123 % $ 7,397,577 (119) %
01101/94 49,875,350 36,456,408 (13,418,942) 137 7,243,580 (185) I
01101/95 47,710,074 39,699,516 (8,010,558) 120 7,053,091 (114)
0110 I/96 56,004,033 41,587,715 (14,416,318) 135 6,345,073 (227)
01/01/97 59,413,476 42,712,240 (16,701,236) 139 5,165,172 (323)
01/0 1199 71,138,815 51,388,074 (19,750,741) 138 5,794,554 (341) I
o I/O 1/00 70,974,830 54,306,953 (16,667,877) 131 5,112,578 (326)
01/01/01 70,721,724 54,824,779 (15,896,945) 129 5,237,225 (304)
o I/O 1102 66,542,266 52,471,765 (14,070,501) 127 5,473,137 .(257) I
o I/O 1103 59,091,990 53,688,662 (5,403,328) 110 5,774,707 (94)
01101104 65,345,259 58,984,857 (6,360,402) III 5,774,708 (110)
GMEBS I
03/01/94 $ 2,754,918 $ 2,903,208 $ 148,290 95 % $ 10,375,830 1.0 %
03/01195 3,351,907 3,315,936 (35,971) 101 10,657,439 (.3)
03/01/96 3,731,118 3,568,982 (162,136) 105 9,369,684 (2.0)
03/01/97 4,144,704 5,312,277 1,167,573 78 8,082,062 14.0 I
03/01/98 4,609,848 5,756,304 1,146,456 80 8,913,934 13.0
03/01/00 5,559,655 6,422,501 862,846 86 7,719,739 11.2
03/01/02 6,308,424 6,887,424 579,000 91 6,913,560 8.4
03/01/03 6,477,885 7,146,314 668,429 90 6,988,509 9.6 I
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
84 I
AUGUSTA, GEORGIA
I Defined Benefit Pension Trusts - Required Supplementary Information - Continued
I December 31,2004
B. Schedules of employer contributions
I Fiscal Annual Required Percentage
Year Contribution Contributed
1945 Plan
I 1994 $ - %
1995
1996
1998
I 1999
2000
2001
2002
I 2003
2004 170,881 100
1977 Plan
1994 $ - %
I 1995
1996
1997 600,260 100
1998 897,930 100
I 1999 1,124,928 100
2000 940,054 100
2001 979,131 100
I 2002 746,287 100
2003 787,672 100
2004 955,819 100
General Pension Plan
I 1994 $ 111,109 100 %
1995 125,174 100
1996 125,874 100
1997 139,861 100
I 1998 107,338 100
1999 113,807 100
2000 102,476 100
2001 89,008 100
I 2002 23,348 100
2003 24,290 100
2004 25,092 100
Policemen's Pension Plan
I 1994 $ 80,866 100 %
1995 69,407 100
1996 69,407 100
1997 79,952 100
I 1998 63,169 100
1999 53,823 100
2000 44,880 100
2001 64,863 100
I 2002 66,888 100
2003 70,546 100
2004 72,874 100
Firemen's Pension Plan
I 1994 $ 212,392 100 %
1995 204,492 100
1996 200,757 100
I 1997 249,706 100
1998 237,914 100
1999 240,623 100
2000 205,435 100
I 2001 214,272 100
2002 206,334 100
2003 182,862 100
2004 188,896 100
I 85
AUGUST A, GEORGIA
I
Defined Benefit Pension Trusts - Required Supplementary Information - Continued
December 31, 2004
I
B. Schedules of employer contributions (Continued)
Fiscal Annual Required Percentage
Year Contribution Contributed
City Employees' Pension Plan
1994 $ 415,480 100 %
1995 408,999 100
1996 369,477 100
1997 409,881 100
1998 331,619 100
1999 348,792 100
2000 302,169 100
2001 263,080 100
2002 299,512 100
2003 285,177 100
2004 249,565 100
General Retirement Plan (City 1949)
1994 $ %
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
GMEBS
1994 $ 232,298 100 %
1995 106,440 100
1996 187,548 100
1997 197,167 100
1998 214,536 100
1999 191,385 100
2000 204,576 100
2001 192,622 100
2002 168,316 100
2003 181,834 100
2004 200,432 100
C. Notes to required supplementary information
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1945 Plan
1977 Plan
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Valuation date
Actuarial cost method
Amortization method
Amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate ofretum
Projected salary increases
Post retirement benefit increases
Inflation
111/04
Attained age aggregate
Level percentage of payroll
Average future working lifetime
Market value
1/I/04
Attained age aggregate
Level of percentage of pay
Average future working lifetime
Market value
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8.0%
5.0%
5.0%
5.0%
8.0%
5.0%
5.0%
5.0%
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AUGUST A, GEORGIA
Derrned Benefit Pension Trusts - Required Supplementary Information - Continued
I
December 31,2004
I
c. Notes to required supplementary information (Continued)
I
Valuation date
Actuarial cost method
I
Amortization method
Amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
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Valuation date
Actuarial cost method
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Amortization method
Amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
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Valuation date
Actuarial cost method
Amortization method
Amortization period
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Actuarial asset valuation method
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Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
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General
Pension Plan
12/31/04
Actuarial present value of total
Projected benefits
N/A
N/A
N/A
8.0%
N/A
N/A
N/A
Firemen's
Pension Plan
I 2/3 I /04
Actuarial present value of total
Projected benefits
N/A
N/A
N/A
8.0%
N/A
N/A
N/A
General Retirement
Pension Plan (City 1949)
01/01/04
Aggregate cost method
Level percentage of payroll
Various periods to comply with
state law
The sum of the actuarial value of assets on the
preceding valuation date, net contributions and
disbursements during the preceding year,
interest on the items calculated using the
valuation investment return assumption, and
20% of the difference between the market
value of assets on the current valuation date
and the sum of the first three items.
8.0%
5.5%
4.0%
4.0%
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Policemen's
Pension Plan
12/31104
Actuarial present value of total
Projected benefits
N/A
N/A
N/A
8.0%
N/A
N/A
N/A
City Employees'
Pension Plan
12/31/04
Actuarial present value of total
Projected benefits
N/A
N/A
N/A
8.0%
N/A
N/A
N/A
GMEBS
03/0 I 12005
Projected unit credit
Level dollar
30 years open
Roll forward prior ycar's actuarial
value with contributions,
disbursements, and expended
return of investments, plus 10% of
investment gains (losses) during 10
pnor years.
8.0%
5.5%
None
None
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Augusta, Georgia
Combining Balance Sheet
Nonmajor Governmental Funds
December 31,2004
I
Special Debt Capital
Revenue Service Project
Funds Funds Funds
Assets
Cash and temporary investments $ 11,850,555 $ 970,171 $ 16,763,698
Receivables (net of allowance for doubtful accounts)
Taxes 1,558,098 53,902
Accounts 1,731,766
Interest 83,626
Note 213,560
Intergovernmental 51,936
Reserve account 12
Perpetual care
Total assets $ 15,405,915 $ 1,024,085 $ 16,847,324
Liabilities and fund balances (deficits)
Liabilities:
. Accounts payable $ 767,378 $ $ 483,912
Due to other funds 172,588
Accrued salaries and vacation 186,019
Other accrued liabilities 17,508
Deferred revenue 1,793,628 56,437
Total liabilities 2,937,121 56,437 483,912
Fund balances (deficits):
Reserved for:
Encumbrances 191,616 2,463,897
Project maintenance 5,596,460
Debt service 2,986,302
Designated for:
Unreserved - undesignated 12,277,178 (2,018,654) 8,303,055
Total fund balances (deficits) 12,468,794 967,648 16,363,412
Total liabilities and fund balances (deficits) $ 15,405,915 $ 1,024,085 $ 16,847,324
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I Permanent Total Nonmajor
Fund Governmental
Perpetual Care - II Funds
I $ 226,734 $ 29,811,158
I 1,612,000
1,731,766
83,626
I 213,560
51,936
12
338,625 338,625
I $ 565,359 $ 33,842,683
I $ $ 1,251,290
62,040 234,628
186,019
I 17,508
1,850,065
62,040 3,539,510
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I 2,655,513
5,596,460
2,986,302
I 503,319 19,064,898
503,319 30,303,173
I $ 565,359 $ 33,842,683
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- - ---------.-------
Augusta, Georgia I
Combining Statement of Revenues, Expenditures and Changes in Fund Balances I
Nonmajor Governmental Funds
Year Ended December 31, 2004
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Special Debt Capital
Revenue Service Project I
Funds Funds Funds
Revenues
Taxes - property $ 11,457,643 $ 15,277 $ I
Taxes - other than property 11,541,361
Licenses and permits 2,964,458
Use of money and property 351,088 12,485 263,258
Charges for current services 3,584,858 I
Fines and forfeitures 773,270
Intergovernmental 4,560,912 179,579
Contributions and donations 209,758 I
Other 395,586
Total revenues 35,838,934 27,762 442,837
Expenditures I
Current:
General government 2,284,329 2,770
Judicial 530,809 I
Public safety 3,008,933 1,131
Public works 3,265,474 146,320
Culture and recreation 3,766,425
Housing and development 5,907,554 I
Capital outlay 2;207,375 1,641,282
Debt service 1,604,525 87
Total expenditures 22,575,424 87 1,791,503 I
Excess (deficiency) of revenues
over (under) expenditures 13,263,510 27,675 (1,348,666)
Other financing sources (uses) I
Transfers in 515,630
Transfers (out) (13,481,310) (1,681,122)
Transfers in (out) between nonmajor funds 1,355,559 (1,572,077) I
Total other fmancing sources (uses) (11,610,121) (1,572,077) (1,681,122)
Net change in fund balances 1,653,389 (1,544,402) (3,029,788) I
Fund balance - beginning 10,815,405 2,512,050 19,393,200
Fund balance - ending $ 12,468,794 $ 967,648 $ 16363,412 I
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I
I
I Permanent
Total Nonmajor
I Fund Governmental
Perpetual Care - II Funds
$ $ 1l,472,920
I 11,541,361
2,964,458
5,020 631,851
I 825 3,585,683
773,270
4,740,491
209,758
I 395,586
5,845 36,315,378
I 2,287,099
I 530,809
3,010,064
3,411,794
3,766,425
I 5,907,554
3,848,657
1,604,612
I 24,367,014
5,845 11,948,364
I 515,630
(15,162,432)
I 216,518
216,518 (14,646,802)
I 222,363 (2,698,438)
280,956 33,001,611
I $ 503,319 $ 30,303,173
I
I
I
I 95
I
Augusta, Georgia
Combining Balance Sheet I
Nonmajor Special Revenue Funds
December 31,2004 I
Emergency
Urban Services Telephone Capital Law I
District System Outlay Enforcement
Assets I
Cash and temporary investments $ 2,633,787 $ 86,906 $ 3,397,795 $ 544,300
Receivables (net of allowance for doubtful accounts)
Taxes 1,101,436 456,662
Accounts 653,311 525,422 11,632 I
Note
Intergovernmental
Due from other funds I
Total assets $ 4,388,534 $ 612,328 $ 3,854,457 $ 555,932
Liabilities and fund balances (deficits)
Liabilities: I
Accounts payable $ 104,649 $ 5,492 $ 100,538 $
Due to other funds
Accrued salaries and vacation 9,123 82,473 I
Other accrued liabilities 17,381
Deferred revenue 953,458 393,223
Total liabilities 1,084,611 87,965 493,761
Fund balances (deficits): I
Reserved for:
Encumbrances 1,020 14,246 149,907 I
Unreserved - undesignated 3,302,903 510,117 3,210,789 555,932
Total fund balances (deficits) 3,303,923 524,363 3,360,696 555,932
Total liabilities and fund balances (deficits) $ 4,388,534 $ 612,328 $ 3,854,457 $ 555,932 I
I
I
I
I
I
I
96 I
I
I
I
Housing and Urban Federal State
I Occupational Special Promotionl Neighborhood Development Drug Drug
Tax Assessment Tourism Development Action Grant Fund Fund
I $ $ 448,877 $ 293,942 $ 941,764 $ 189,307 $ 188,719 $ 893,445
I 488,958 4,215 16,475
213,560
I $ $ 937,835 $ 298,157 $ 958,239 $ 402,867 $ 188,719 $ 893,445
I $ 1,000 $ 127,015 $ 300,205 $ 7,715 $ $ 13,260 $ 7,730
77,720 53,480
I 6,751 39,461
446,947
78,720 580,713 300,205 47,176 53,480 13,260 7,730
I
614 6,365
I (78,720) 357,122 (2,048) 910,449 349,387 169,094 885,715
(78,720) 357,122 (2,048) 911,063 349,387 175,459 885,715
I $ $ 937,835 $ 298,157 $ 958,239 $ 402,867 $ 188,719 $ 893,445
I
I
I
I
I
I
I 97
I
I
I
Weed and Total Nonmajor
I Seed Federal Wireless Communtiy Perpetual Land Bank Canine NPDES Special Revenue
Grant Phase Greenspace Care - I Authority Forfeitures Permit Fees Funds
I $ $ 856,912 $ $ 493,622 $ 125,448 $ 11,872 $ 42,367 $ 11,850,555
1,558,098
I 1,731,766
213,560
51,936 51,936
I $ 51,936 $ 856,912 $ $ 493,622 $ 125,448 $ 11,872 $ 42,367 $ 15,405,915
I $ 6,409 $ 85,073 $ $ 1,871 $ $ $ $ 767,378
15,708 172,588
3,476 186,019
I 17,508
1,793,628
25,593 85,073 1,871 2,937,121
I
19,262 40 191,616
I 7,081 771,839 491,711 125,448 11,872 42,367 12,277,178
26,343 771,839 491,751 125,448 11,872 42,367 12,468,794
I $ 51,936 $ 856,912 $ $ 493,622 $ 125,448 $ 11,872 $ 42,367 $ 15,405,915
I
I
I
I
I
I
I 99
Augusta, Georgia I
Combining Statement of Revenues, Expenditures and Changes in Fund Balances I
Nonmajor Special Revenue Funds
Year Ended December 31, 2004
Emergency I
Urban Services Telephone Capital Law
District System Outlay Enforcement I
Revenues
Taxes - property $ 6,921,733 $ $ 3,232,082 $
Taxes - other than property 7,799,509 I
Licenses and permits
Use of money and property 61,977 18,200 6,590
Charges for current services 254,069 3,020,288 92,559 I
Fines and forfeitures
Intergovernmental 85,980
Contributions and donations 209,738
Other I
Total revenues 15,247,026 3,020,288 3,336,262 99,149
Expenditures I
Current:
General government 1,451,110 188,876 490,324
Judicial 74,389
Public safety 2,523,323 12,332 I
Public works 346,441 115,414
Culture and recreation 2,594
Housing and development 435,618 I
Capital outlay 180,294 1,065,963 24,600
Debt service 209,738 1,224,887
Total expenditures 2,623,201 2,712,199 2,973,571 36,932 I
Excess (deficiency) of revenues
over (under) expenditures 12,623,825 308,089 362,691 62,217
Other financing sources (uses) I
Transfers in 200,000
Transfers (out) (11,299,610) (75,000)
Transfers in (out) between nonmajor funds. (2,059,380) 150,000 1,572,077 I
Total other financing sources (uses) ( 13,358,990) 350,000 1,497,077
Net change in fund balances (deficits) (735,165) 658,089 1,859,768 62,217 I
Fund balance (deficits) - beginning 4,039,088 (133,726) 1,500,928 493,715
Fund balance (deficits) - ending $ 3,303,923 $ 524,363 $ 3,360,696 $ 555,932 I
I
I
I
100 I
Augusta, Georgia I
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Continued I
Nonmajor Special Revenue Funds
Year Ended December 31,2004
5% Victim's Supplemental I
Law Crime Juvenille Building
Library Assistance Services Inspection I
Revenues
Taxes - property $ $ $ $
Taxes - other than property I
Licenses and permits 913,043
Use of money and property 5,061 403 4,052
Charges for current services 6,429 8,885 I
Fines and forfeitures 259,909
Intergovernmental
Contributions and donations
Other I
Total revenues 271,399 9,288 917,095
Expenditures I
Current:
General government 10,420 24,170
Judicial 35 441,840 14,545
Public safety I
Public works
Culture and recreation
Housing and development 768,431 I
Capital outlay
Debt service
Total expenditures 35 452,260 14,545 792,601
Excess (deficiency) of revenues I
over (under) expenditures (35) (180,861) (5,257) 124,494
Otber financing sources (uses) I
Transfers in
Transfers (out)
Transfers in (out) between nonmajor funds I
Total other financing sources (uses)
Net change in fund balances (deficits) (35) (180,861 ) (5,257) 124,494 I
Fund balance (deficits) - beginning (22,576) 510,138 37,751 192,628
Fund balance (deficits) - ending $ (22,611) $ 329,277 $ 32,494 $ 317,122 I
I
I
I
102 I
I
I
I Weed and Total Nonmajor
Seed Federal Wireless Communtiy Perpetual Landbank Canine NPDES Special Revenue
Grant Phase Greenspace Care - I Authority Forefeitures Permit Fees Funds
I
$ $ $ $ $ $ $ 11,457,643
I 11,541,361
42,109 2,964,458
9,859 1,601 18,326 114,196 75 258 351,088
202,628 3,584,858
I 11,797 773,270
188,828 476,589 4,560,912
20 209,758
I 1,269 395,586
188,828 212,487 478,190 18,346 115,465 11,872 42,367 35,838,934
I 720 2,284,329
530,809
I 174,936 164,971 3,008,933
3,265,474
9,018 3,766,425
41,087 5,907,554
I 20,380 443,002 2,207,375
1,604,525
195,316 165,691 484,089 9,018 22,575,424
I (6,488) 46,796 (5,899) 9,328 115,465 11,872 42,367 13,263,510
I 515,630
(13,481,310)
(216,518) 1,355,559
I (216,518) (11,610,121)
(6,488) 46,796 (5,899) (207,190) 115,465 11,872 42,367 1,653,389
I 32,831 725,043 5,899 698,941 9,983 10,815,405
I $ 26,343 $ 771,839 $ $ 491,751 $ 125,448 $ 11,872 $ 42,367 $ 12,468,794
I
I
I
103
I
I
Augusta, Georgia
U rbau Services District Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ 6,754,530 $ 6,921,733 $ 167,203 $ 6,899,261
7,770,800 7,799,509 28,709 7,464,281
12,000 61,977 49,977 30,650
201,890 254,069 52,179 223,747
238,510 209,738 (28,772) 269,437
14,977,730 15,247,026 269,296 14,887,376
I
I
Revenues
Taxes - property
Taxes - other than property
Use of money and property
Charges for current services
Contributions and donations
Total revenues
I
I
Expenditures
Current:
General government
Public works
Housing and development
Capital outlay
Debt service
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
I
Net change in fund balances
1,410,080 1,451,110 (41,030) 1,337,100
409,950 346,441 63,509 1,753,201
437,690 435,618 2,072 28,344
185,790 180,294 5,496
238,510 209,738 28,772 296,004
2,682,020 2,623,201 58,819 3,414,649
12,295,710 12,623,825 328,115 11,472,727
1,063,280 (1,063,280)
(11,299,610) (11,299,610) (10,449,060)
(2,059,380) (2,059,380) (495,940)
(12,295,710) (13,358,990) (1,063,280) (10,945,000)
$ (735,165) $ (735,165) 527,727
4,039,088 3,511,361
$ 3,303,923 $ 4,039,088
I
I
Other financing sources (uses)
Transfers in
Transfers (out)
Transfers in (out) between nonmajor funds
Total other financing sources (uses)
I
I
I
Fund balance - beginning
Fund balance - ending
I
I
I
I
I
104
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 31,2004
With comparative amounts for December 31,2003
I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ 2,575,000 $ 3,020,288 $ 445,288 $ 2,461,649
85,000 (85,000)
2,660,000 3,020,288 360,288 2,461,649
I
Revenues
Charges for current services
Other
Total revenues
I
I
Expenditures
Current:
General government
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
210,000 188,876
2,727,671 2,523,323
72,329
3,010,000 2,712,199
(350,000) 308,089
200,000 200,000
150,000 150,000
350,000 350,000
$ 658,089 $
(133,726)
$ 524,363
21,124 200,842
204,348 2,275,532
72,329
297,801 2,476,374
658,089 (14,725)
I
I
Other financing sources (uses)
Transfers in
Transfers in (out) between nonmajor funds
Total other financing sources (uses)
I
Net change in fund balances
658,089
(14,725)
I
Fund balance (deficit) - beginning
Fund balance (deficit) - ending
(119,001)
$ (133,726)
I
I
I
I
I
I
I
105
-- --- --------
I
Augusta, Georgia I
Capital Outlay Fund I
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003 I
Variance with
Final Budget - I
Positive 2003
Budget Actual (Negative) Actual
Revenues I
Taxes - property $ 3,133,330 $ 3,232,082 $ 98,752 $ 3,161,535
Use of money and property 1,340 18,200 16,860 94,585 I
Charges for current services 175
Intergovernmental 100,000 85,980 (14,020)
Other 30,325
Total revenues 3,234,670 3,336,262 101,592 3,286,620 I
Expenditures
Current:
General government 1,035,992 490,324 545,668 879,694 I
Judicial 106,727 74,389 32,338 51,738
Public safety 2,983
Public works 133,962 115,414 18,548 238,449 I
Culture and recreation 14,250 2,594 11,656 34,695
Capital outlay 3,923,708 1,065,963 2,857,745 975,589
Debt service 1,746,842 1,224,887 521,955 2,148,398
Total expenditures 6,961,481 2,973,571 3,987,910 4,331,546 I
Excess (deficiency) of revenues
over (under) expenditures (3,726,811) 362,691 4,089,502 (1,044,926)
Other financing sources (uses) I
Transfers in 2,231,061 (2,231,061) 13,996
Transfers (out) (75,000) (75,000)
Transfers in (out) between nonmajor funds 1,570,750 1,572,077 1,327 I
Total other financing sources (uses) 3,726,811 1,497,077 (2,229,734) 13,996
Net change in fund balances $ 1,859,768 $ 1,859,768 (1,030,930) I
Fund balance - beginning 1,500,928 2,531,858
Fund balance - ending $ 3,360,696 $ 1,500,928 I
I
I
I
106 I
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 31,2004
With comparative amounts for December 31,2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ $ 6,590 $ 6,590 $ 5,294
Charges for current services 110,872 92,559 (18,313) 103,287
Total revenues 110,872 99,149 (11,723) 108,581
Expenditures
Current:
Public safety 110,872 12,332 98,540 32,712
Capital outlay 250,000 24,600 225,400 28,656
Total expenditures 360,872 36,932 323,940 61,368
Excess (deficiency) of revenues
over (under) expenditures (250,000) 62,217 312,217 47,213
Other financing sources (uses)
Transfers in 250,000 (250,000)
Total other financing sources (uses) 250,000 (250,000)
Net change in fund balances $ 62,217 $ 62,217 47,213
Fund balance - beginning 493,715 446,502
Fund balance - ending $ 555,932 $ 493,715
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
107
I
Augusta, Georgia
Occupatiou Tax Fuud
Schedule of Reveuues, Expeuditures aud Changes iu Fuud Balances - Budget aud Actual
Noumajor Special Revenue Fuuds
Year Euded December 31,2004
With comparative amouuts for December 31,2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Taxes - other than property $ $ 617 $ 617 $ 766
Licenses and permits 2,100,000 2,009,306 (90,694) 2,057,093
Use of money and property 13,000 7,264 (5,736) 8,493
Other 3,758 3,758 1,926
Total revenues 2,113,000 2,020,945 (92,055) 2,068,278
Expenditures
Current:
General government 6,300 6,300 6,000
Total expenditures 6,300 6,300 6,000
Excess (deficiency) of revenues
over (under) expenditures 2,106,700 2,014,645 (92,055) 2,062,278
Other fmancing sources (uses)
Transfers (out) (2,106,700) (2,106,700) (2,052,000)
Total other financing sources (uses) (2,106,700) (2,106,700) (2,052,000)
Net change in fund balances $ (92,055) $ (92,055) 10,278
Fund balance - beginning 13,335 3,057
Fund balance - ending $ (78,720) $ 13,335
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
108
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 31,2004
With comparative amounts for December 31, 2003
I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ 1,257,020 $ 1,299,526 $ 42,506 $ 1,264,935
1,257,020 1,299,526 42,506 1,264,935
I
I
Revenues
Taxes - property
Total revenues
I
Expenditures
Current:
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
153,910 6,411 147,499 3,240
2,867,420 2,803,619 63,801 1,476,233
145,000 25,507 119,493 45,656
3,166,330 2,835,537 330,793 1,525,129
(1,909,310) (1,536,011) 373,299 (260,194)
315,630 315,630 315,635
1,593,680 1,593,680
1,909,310 1,909,310 315,635
$ 373,299 $ 373,299 55,441
(16,177) (71,618)
$ 357,122 $ (16,177)
I
I
I
Other financing sources (uses)
Transfers in
Transfers in (out) between nonmajor funds
Total other financing sources (uses)
I
Net change in fund balances
I
Fund balance - beginning
Fund balance (deficit) - ending
I
I
I
I
I
I
I
109
I
Augusta, Georgia
Promotionffourism Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
I
I
I
Revenues
Taxes - property
Taxes - other than property
Total revenues
Variance with
Final Budget-
Positive 2003
Budget Actual (Negative) Actual
$ $ 4,302 $ 4,302 $ 11,952
3,780,000 3,741,235 (38,765) 3,572,554
3,780,000 3,745,537 (34,463) 3,584,506
I
I
I
Expenditures
Current:
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
3,780,000 3,754,813 25,187 3,595,654
3,780,000 3,754,813 25,187 3,595,654
(9,276) (9,276) (11,148)
$ (9,276) $ (9,276) (11,148)
7,228 18,376
$ (2,048) $ 7,228
I
I
Fund balance - beginning
I
Fund balance - ending
I
I
I
I
I
I
I
I
110
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, 2004
With comparative amounts for December 31, 2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ $ 868 $ 868 $ 1,686
Intergovernmental 4,826,160 3,809,515 (1,016,645) 3,686,192
Other 293,000 390,559 97,559 465,402
Total revenues 5,119,160 4,200,942 (918,218) 4,153,280
Expenditures
Current:
General government 134,780 105,998 28,782 122,330
Housing and development 5,098,720 4,199,686 899,034 4,636,892
Debt service 195,070 169,900 25,170 170,880
Total expenditures 5,428,570 4,475,584 952,986 4,930,102
Excess (deficiency) of revenues
over (under) expenditures (309,410) (274,642) 34,768 (776,822)
Other fmancing sources (uses)
Transfers in (out) between nonmajor funds 309,410 309,410 490,150
Total other financing sources (uses) 309,410 309,410 490,150
Net change in fund balances $ 34,768 $ 34,768 (286,672)
Fund balance - beginning 876,295 1,162,967
Fund balance - ending $ 911,063 $ 876,295
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
111
I
Augusta, Georgia
Urban Development Action Grant Fund (UDAG)
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ 75,000 $ 28,995 $ (46,005) $ 14,410
Total revenues 75,000 28,995 (46,005) 14,410
Expenditures
Current:
Housing and development 381,290 462,732 (81,442) 364,136
Capital outlay 60,655 60,654 1
Total expenditures 441,945 523,386 (81,441) 364,136
Excess (deficiency) of revenues
over (under) expenditures (366,945) (494,391 ) (127,446) (349,726)
Other financing sources (uses)
Transfers in 360,655 (360,655) 5,790
Transfers (out) (100,000)
Transfers in (out) between nonmajor funds 6,290 6,290
Total other financing sources (uses) 366,945 6,290 (360,655) (94,210)
Net change in fund balances $ (488,101) $ (488,101) (443,936)
Fund balance - beginning 837,488 1,281,424
Fund balance - ending $ 349,387 $ 837,488
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
112
I
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, 2004
With comparative amounts for December 31,2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ $ 2,751 $ 2,751 $ 4,652
Fines and forfeitures 71,598 155,509 83,911 612,129
Total revenues 71,598 158,260 86,662 616,781
Expenditures
Current:
Public safety 320,125 108,309 211,816 119,616
Capital outlay 299,455 299,454 I 72,203
Total expenditures 619,580 407,763 211,817 191,819
Excess (deficiency) of revenues
over (under) expenditures (547,982) (249,503) 298,479 424,962
Other financing sources (uses)
Transfers in 547,982 (547,982)
Total other financing sources (uses) 547,982 (547,982)
Net change in fund balances $ (249,503) $ (249,503) 424,962
Fund balance - beginning 424,962
Fund balance - ending $ 175,459 $ 424,962
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
113
I
Augusta, Georgia
State Drug Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2004
With comparative amounts for December 31,2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ $ 70,612 $ 70,612 $ 72,267
Fines and forfeitures 176,712 346,055 169,343 549,007
Total revenues 176,712 416,667 239,955 621,274
Expenditures
Current:
Public safety 338,539 25,062 313,477 34,343
Capital outlay 88,173 87,521 652 5,300
Total expenditures 426,712 112,583 314,129 39,643
Excess (deficiency) of revenues
over (under) expenditures (250,000) 304,084 554,084 581,631
Other financing sources (uses)
Transfers in 250,000 (250,000)
Total other financing sources (uses) 250,000 (250,000)
Net change in fund balances $ 304,084 $ 304,084 581,631
Fund balance - beginning 581,631
Fund balance - ending $ 885,715 $ 581,631
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
114
I
I
I
I
Augusta, Georgia
Law Library Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2004
With comparative amounts for December 31, 2003
I
Budget
Actual
Variance with
Final Budget -
Positive
(Negative)
2003
Actual
I
I
Revenues
$
$
$
$
I
Expenditures
Current:
Judicial
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
35 (35) 15
35 (35) 15
(35) (35) (15)
$ (35) $ (35) (15)
(22,576) (22,561 )
$ (22,611) $ (22,576)
I
I
Fund balance (deficits) - beginning
I
Fund balance (deficits) - ending
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I
I
I
I
I
I
I
I
115
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 31,2004
With comparative amounts for December 31, 2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ 6,000 $ 5,061 $ (939) $ 5,776
Charges for current services 6,429 6,429 7,272
Fines and forfeitures 333,000 259,909 (73,091) 324,903
Intergovernmental 29,690
Total revenues 339,000 271,399 (67,601) 367,641
Expenditures
Current:
General government 10,420 10,420
Judicial 467,370 441,840 25,530 397,654
Total expenditures 477,790 452,260 25,530 397,654
Excess (deficiency) of revenues
over (under) expenditures (138,790) (180,861) (42,071) (30,013)
Other financing sources (uses)
Transfers in 138,790 (138,790)
Total other financing sources (uses) 138,790 (138,790)
Net change in fund balances $ (180,861 ) $ (180,861) (30,013)
Fund balance - beginning 510,138 540,151
Fund balance - ending $ 329,277 $ 510,138
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I
I
I
I
I
I
I
I
I
I
I
116
I
I
I
I
Augusta, Georgia
Supplemental Juvenile Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31, 2004
With comparative amounts for December 31,2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ 1,000 $ 403 $ (597) $ 429
Charges for current services 15,000 8,885 (6,115) 8,950
Total revenues 16,000 9,288 (6,712) 9,379
Expenditures
Current:
Judicial 56,000 14,545 41,455 18,50 I
Total expenditures 56,000 14,545 41,455 18,50 I
Excess (deficiency) of revenues
over (under) expenditures (40,000) (5,257) 34,743 (9,122)
Other financing sources (uses)
Transfers in 40,000 (40,000)
Total other financing sources (uses) 40,000 (40,000)
Net change in fund balances $ (5,257) $ (5,257) (9,122)
Fund balance - beginning 37,751 46,873
Fund balance - ending $ 32,494 $ 37,751
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I
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I
I
I
117
I
Augusta, Georgia
Weed and Seed Federal Grant Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31,2003
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I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ 225,000 $ 188,828 $ (36,172) $ 217,306
301
225,000 188,828 (36,172) 217,607
I
Revenues
Intergovernmental
Contributions and donations
Total revenues
I
I
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
195,690 174,936 20,754 218,731
29,310 20,380 8,930
225,000 195,316 29,684 218,731
(6,488) (6,488) (1,124)
$ (6,488) $ (6,488) (1,124)
32,831 33,955
$ 26,343 $ 32,831
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I
Fund balance - beginning
Fund balance - ending
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I
I
I
I
I
I
I
118
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 31,2004
With comparative amounts for December 31,2003
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ 6,000 $ 9,859 $ 3,859 $ 4,289
255,000 202,628 (52,372) 343,178
261,000 212,487 (48,513) 347,467
I
I
Revenues
Use of money and property
Charges for current services
Total revenues
I
I
Expenditures
Current:
General government
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
I
Net change in fund balances
143,440 720 142,720 10,000
117,560 164,971 (47,411) 46,977
261,000 165,691 95,309 56,977
46,796 46,796 290,490
$ 46,796 $ 46,796 290,490
725,043 434,553
$ 771,839 $ 725,043
I
Fund balance - beginning
I Fund balance - ending
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I
I
I
I
I
I
I
119
I
Augusta, Georgia
Commuuity Greenspace Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non major Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31,2003
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I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ $ 1,601 $ 1,601 $ 5,899
476,589 476,589 206,900
478,190 478,190 212,799
I
Revenues
Use of money and property
Intergovernmental
Total revenues
I
I
Expenditures
Current:
Housing and development
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
45,500 41,087 4,413 1,500
638,000 443,002 194,998 205,400
683,500 484,089 199,411 206,900
(683,500) (5,899) 677,601 5,899
683,500 (683,500)
683,500 (683,500)
$ (5,899) $ (5,899) 5,899
5,899
$ $ 5,899
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I
Other financing sources (uses)
Transfers in
Total other financing sources (uses)
I
Net change in fund balances
I
Fund balance - beginning
I
Fund balance - ending
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I
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I
I
I
120
I
I
I
I
Augusta, Georgia
Perpetual Care - I Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Use of money and property $ 44,000 $ 18,326 $ (25,674) $ 40,844
Charges for current services 2,000 (2,000)
Contributions and donations 20 20
Other
Total revenues 46,000 18,346 (27,654) 40,844
Expenditures
Current:
Culture and recreation 30,200 9,018 21,182 20,042
Capital outlay 94,800 94,800
Total expenditures 125,000 9,018 115,982 20,042
Excess (deficiency) of revenues
over (under) expenditures (79,000) 9,328 88,328 20,802
Other financing sources (uses)
Transfers in 79,000 (79,000)
Transfers in (out) between nonmajor funds (216,518) (216,518)
Total other financing sources (uses) 79,000 (216,518) (295,518)
Net change in fund balances $ (207,190) $ (207,190) 20,802
Fund balance - beginning 698,941 678,139
Fund balance - ending $ 491,751 $ 698,941
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I
I
I
121
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 31,2004
With comparative amounts for December 31,2003
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I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ $ 114,196 $ 114,196 $ 9,897
1,269 1,269 86
115,465 115,465 9,983
I
Revenues
Use of money and property
Other
Total revenues
I
I
Expenditures
Excess (deficiency) of revenues
over (under) expenditures
115,465
115,465
9,983
I
Net change in fund balances
$
115,465 $
115,465
9,983
I
Fund balance - beginning
9,983
Fund balance - ending
$ 125,448
$
9,983
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I
I
I
I
122
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I
I
I
Augusta, Georgia
Caniue Forfeitures
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ $ 75 $ 75 $
11,797 11,797
11,872 11,872
I
I
Revenues
Use of money and property
Fines and forfeitures
Total revenues
I
I
Expenditures
Current:
Public safety
Total expenditures
5,000 5,000
5,000 5,000
(5,000) 11,872 16,872
5,000 (5,000)
5,000 (5,000)
$ 11,872 $ 11,872
$ 11,872 $
I
Excess (deficiency) of revenues
over (under) expenditures
I
Other financing sources (uses)
Transfers in
Total other financing sources (uses)
Net change in fund balances
I
Fund balance - ending
I
I
I
I
I
I
I
I
123
I
Augusta, Georgia
NPDES Permit Fees
Schedule of Reveuues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Year Ended December 31,2004
With comparative amounts for December 31, 2003
I
I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ $ 42,109 $ 42,109 $
258 258
42,367 42,367
I
Revenues
Licenses and permits
Use of money and property
Total revenues
I
I
Expenditures
Excess (deficiency) of revenues
over (under) expenditures
42,367
42,367
I
Net change in fund balances
$
42,367 $
42,367
I
Fund balance - ending
$
42,367
$
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I
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I
I
I
I
I
124
I
I
I
Augusta, Georgia
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31,2004
Total Nonmajor
Urban Debt Service
Debt Service Debt Service Funds
Assets
Cash and temporary investments $ 722,939 $ 247,232 $ 970,171
Receivables (net of allowance for doubtful
accounts)
Taxes 32,032 21,870 53,902
Reserve account 12 12
Total assets $ 754,983 $ 269,102 $ 1,024,085
Liabilities and fund balances
Liabilities:
Deferred revenue 33,762 22,675 56,437
Total liabilities 33,762 22,675 56,437
Fund balances:
Debt service 2,986,302 2,986,302
Unreserved - undesignated (2,265,081) 246,427 (2,018,654)
Total fund balances 721,221 246,427 967,648
Total liabilities and fund balances $ 754,983 $ 269,102 $ 1,024,085
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I
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I
I
I
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I
I
I
125
I
Augusta, Georgia
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Debt Service Funds
Year Ended December 31,2004
Total Nonmajor
Urban Debt Service
Debt Service Debt Service Funds
Revenues
Taxes - property $ 7,283 $ 7,994 $ 15,277
Use of money and property 9,337 3,148 12,485
Total revenues 16,620 11,142 27,762
Expenditures
Debt service 87 87
Total expenditures 87 87
Excess (deficiency) of revenues
over (under) expenditures 16,620 11,055 27,675
Other financing sources (uses)
Transfers in (out) between nonmajor funds (1,572,077) (1,572,077)
Total other fmancing sources (uses) (1,572,077) (1,572,077)
Net change in fund balances (1,555,457) 11,055 (1,544,402)
Fund balance - beginning 2,276,678 235,372 2,512,050
Fund balance - ending $ 721,221 $ 246,427 $ 967,648
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I
I
I
I
I
I
I
I
I
I
126
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 31,2004
With comparative amounts for December 31, 2003
I
I
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
$ $ 7,283 $ 7,283 $ 18,739
9,337 9,337 150,839
1,131
16,620 16,620 170,709
I
I
Revenues
Taxes - property
Use of money and property
Other
Total revenues
I
Expenditures
Debt service
Total expenditures
I
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
16,620 16,620 170,709
1,572,077 (1,572,077)
(1,572,077) (1,572,077)
(1,572,077) (1,572,077)
$ (1,555,457) $ (1,555,457) 170,709
2,276,678 2,105,969
$ 721,221 $ 2,276,678
I
Other financing sources (uses)
Transfers in
Transfers in (out) between nonmajor funds
Total other financing sources (uses)
I
I
Fund balance - beginning
I
Fund balance - ending
I
I
I
I
I
127
I
Augusta, Georgia
Urban Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Debt Service Funds
Year Ended December 31, 2004
With comparative amounts for December 31, 2003
Variance with
Final Budget -
Positive 2003
Budget Actual (Negative) Actual
Revenues
Taxes - property $ $ 7,994 $ 7,994 $ 13,399
Use of money and property 3,148 3,148 5,593
Total revenues 11,142 11,142 18,992
Expenditures
Debt service 400 87 313 366,935
Total expenditures 400 87 313 366,935
Excess (deficiency) of revenues
over (under) expenditures (400) 11,055 11,455 (347,943)
Other financing sources (uses)
Transfers in 400 (400)
Total other financing sources (uses) 400 (400)
Net change in fund balances $ 11,055 $ 11,055 (347,943)
Fund balance - beginning 235,372 583,315
Fund balance - ending $ 246,427 $ 235,372
128
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I
I
I
I
I
I
I
I
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I
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I
I
I
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I
I
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I
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I
I
Augusta, Georgia
Combining Balance Sheet
Nonmajor Capital Project Funds
December 31,2004
Total Nonmajor
Community Special Sales Special Sales Capital Project
Development Tax Phase I Tax Phase II Funds
Assets
Cash and temporary investments $ 135,851 $ 3,842,618 $ 12,785,229 $ 16,763,698
Receivables (net of allowance for doubtful
accounts)
Interest 83,626 83,626
Total assets $ 135,851 $ 3,842,618 $ 12,868,855 $ 16,847,324
Liabilities and fund balances
Liabilities:
Accounts payable $ $ $ 483,912 $ 483,912
Total liabilities 483,912 483,912
Fund balances:
Encumbrances 11,606 10 2,452,281 2,463,897
Project maintenance 2,000,000 3,596,460 5,596,460
Unreserved - undesignated 124,245 1,842,608 6,336,202 8,303,055
Total fund balances 135,851 3,842,618 12,384,943 16,363,412
Total liabilities and fund balances $ 135,851 $ 3,842,618 $ 12,868,855 $ 16,847,324
129
Total Nonmajor
Community Special Sales Special Sales Capital Project
Development Tax Phase I Tax Phase II Funds
Revenues
Use of money and property $ 983 $ 52,479 $ 209,796 $ 263,258
Intergovernmental 179,579 179,579
Total revenues 983 52,479 389,375 442,837
Expenditures
Current:
General government 2,770 2,770
Public safety 1,131 1,131
Public works 4,581 4,510 137,229 146,320
Capital outlay 13,000 1,628,282 1,641,282
Total expenditures 18,712 4,510 1,768,281 1,791,503
Excess (deficiency) of revenues
over (under) expenditures (17,729) 47,969 (1,378,906) (1,348,666)
Other financing sources (uses)
Transfers (out) (549,192) (1,131,930) (1,681,122)
Total other f"mancing sources (uses) (549,192) (1,131,930) (1,681,122)
Net change in fund balances (17,729) (501,223) (2,510,836) (3,029,788)
Fund balance - beginning 153,580 4,343,841 14,895,779 19,393,200
Fund balance - ending $ 135,851 $ 3,842,618 $ 12,384,943 $ 16,363,412
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I
I
I
I
I
I
I
I
I
I
I
Augusta, Georgia
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Project Funds
Year Ended December 31, 2004
130
I
Augusta, Georgia I
Combining Statement of Net Assets
Nonmajor Enterprise Funds
December 31, 2004 I
Municipal
Waste Golf I
Management Course Transit
Assets
Current assets I
Cash and temporary investments $ 14,111,887 $ 179 $ 150
Receivables
Accounts 1,175,716
Interest I
Intergovernmental 32,837
Prepaid expenses
Inventory 7,980 219,822 I
Total current assets 15,287,603 8,159 252,809
Noncurrent assets
Restricted cash and investments 11,381,524 I
Deferred bond issuance costs 320,521
Capital assets, net 3,350,634 1,514,718 3,809,409
Total noncurrent assets 15,052,679 1,514,718 3,809,409 I
Total assets 30,340,282 1,522,877 4,062,218
Liabilities I
Current liabilities
Accounts payable 89,345 19,342 19,707 I
Due to other funds 119,780 3,327,617
Accrued salaries and vacation 82,454 19,839 209,108
Other accrued liabilities 199,516 1,785
Current portion of leases payable 419,497 I
Deferred revenue 600
Current portion of revenue bonds payable 1,445,000
Total current liabilities 2,235,812 161,346 3,556,432
Noncurrent liabilities I
Closure/postclosure accrual 12,421,217
Revenue bonds payable 10,232,694
Capital leases 609,269 I
Total noncurrent liabilities 23,263,180
Total liabilities 25,498,992 161,346 3,556,432
Net assets I
Invested in capital assets, net of related debt 2,321,868 1,514,718 3,809,409
Unrestricted 2,519,422 (153,187) (3,303,623) I
Total net assets $ 4,841,290 $ 1,361,531 $ 505,786
I
I
132 I
I
I
I
Daniel Newman Total Nonmajor
I Field Tennis Garbage Enterprise
Airport Center Collection Riverwalk Funds
I $ 499,922 $ 200 $ 97,639 $ 56,943 $ 14,766,920
766,327 1,942,043
I 4,267 4,267
32,837
3,648 3,648
12,247 240,049
I 504,189 12,447 867,614 56,943 16,989,764
I 11,381,524
320,521
1,182,921 9,857,682
I 1,182,921 21,559,727
1,687,llO 12,447 867,614 56,943 38,549,491
I
347 3,050 712,015 3,719 847,525
I 137,650 229,849 1,723,987 5,538,883
10,944 6,641 5,963 6,246 341,195
2,685 203,986
I 419,497
600
1,445,000
148,941 242,225 2,441,965 9,965 8,796,686
I 12,421,217
10,232,694
I 609,269
23,263,180
148,941 242,225 2,441,965 9,965 32,059,866
I 1,182,921 8,828,916
355,248 (229,778) (1,574,351) 46,978 (2,339,291)
I $ 1,538,169 $ (229,778) $ (1,574,351) $ 46,978 $ 6,489,625
I
I
133
I
Augusta, Georgia
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Nonmajor Enterprise Funds
Year Ended December 31, 2004
Municipal
Waste Golf
Management Course Transit
Operating revenues
Charges and fees $ 6,830,855 $ 571,594 $ 733,777
Total operating revenues 6,830,855 571,594 733,777
Operating expenses
Personal services and employee benefits 1,034,015 259,213 2,657,567
Purchased/contracted services 638,404 79,939 67,708
Supplies 352,848 190,983 410,388
Repairs and maintenance 119,182 22,697 389,498
Interfund/interdepartmental charges 506,654 60,850 224,571
Depreciation 1,068,004 36,557 501,442
Closure/postclosure accrual 697,033
Total operating expenses 4,416,140 650,239 4,251,174
Operating income (loss) 2,414,715 (78,645) (3,517,397)
Nonoperating revenue (expense)
Interest revenue 184,070
Sale of property 21,500
Other revenue 2,312 308 89,477
Intergovernmental 23,647 768,722
Interest expense (54,714) (1,342) (38,535)
Total nonoperating revenue (expense) 155,315 (1,034) 841,164
Income (loss) before transfers 2,570,030 (79,679) (2,676,233)
Transfers in 1,300,900
Transfers out (82,380)
Change in net assets 2,570,030 (79,679) (1,457,713)
Total net assets - beginning 2,271,260 1,441,210 1,963,499
Total net assets - ending $ 4,841,290 $ 1,361,531 $ 505,786
134
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I
Augusta, Georgia I
Combining Statement of Cash Flows I
Nonmajor Enterprise Funds
Year Ended December 31,2004 I
Municipal
Waste Golf I
Management Course Transit
Operating activities I
Cash received from customers $ 6,108,769 $ 571,594 $ 734,196
Cash received as advances from General Fund 789,829
Cash paid to suppliers (l,122,924) (283,483) (879,674)
Cash paid to employees (1,028,953) (258,124) (2,637,107) I
Cash paid for interfund services used (506,654) (28,953) (224,571)
Net cash provided by (used in)
operating activities 3,450,238 1,034 (2,217,327) I
Noncapital f"mancing activities
Transfers in 1,300,900
Operating grants 1,617,244 I
Interest expense on operating capital (1,342) (38,535)
Transfers out (82,380)
Net cash provided by noncapital I
financing activities (1,342) 2,797,229
Capital and related financing activities
Proceeds from grants 23,647 I
Proceeds from sale of property 94,008
Other miscellaneous income 2,312 308 89,477
Proceeds from capitalleases 1,159,396 I
Payments on capitalleases (228,744)
Proceeds from bond issue 11,684,683
Payment of bond issue costs (331,151)
Purchase of capital assets (l, 132,707) (763,387) I
Interest paid on capital debt (41,446)
Net cash provided (used) by capital and
related financing activities 11,135,990 308 (579,902) I
Investing activities
Interest received 184,070
Net cash provided by investing activities 184,070 I
Net increase (decrease) in cash and cash
eq uivalents/investments 14,770,298 I
Cash and cash equivalents/investments
Beginning of year 10,723, II 3 179 150
End of year $ 25,493,411 $ 179 $ 150 I
I
I
136 I
I
I
I Newman Total Nonmajor
Daniel Field Tennis Garbage Enterprise
I Airport Center Collection Riverwalk Funds
I $ 99,350 $ 228, 102 $ 7,056,114 $ 52,209 $ 14,850,334
121,913 1,027,304 1,939,046
(50,466) (174,690) (10,949,229) (175,991 ) (13,636,457)
I (10,552) (109,476) (105,969) (77,793) (4,227,974)
(10,153) (24,818) (102,500) (897,649)
150,092 (80,882) (3,074,280) (201,575) (1,972,700)
I 76,370 3,127,550 207,000 4,711,820
I 1,617,244
(2,788) (28,341 ) (71,006)
(82,380)
I 73,582 3,099,209 207,000 6,175,678
I 3,977 7,300 34,924
94,008
962 93,059
1,159,396
I (228,744)
11,684,683
(331,151)
I (1,896,094)
(41,446)
4,939 7,300 10,568,635
I
893 523 185,486
I 893 523 185,486
155,924 24,929 5,948 14,957,099
I 343,998 200
72,710 50,995 11,191,345
I $ 499,922 $ 200 $ 97,639 $ 56,943 $ 26,148,444
I
I
I 137
Augusta, Georgia
Combining Statement of Cash Flows - Continued
Nonmajor Enterprise Funds
Year Ended December 31,2004
Municipal
Golf
Course Transit
I
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I
I
I
Waste
Management
Reconciliation of operating income (loss)
to net cash provided by
(used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization
Closure/post closure costs
Change in assets and liabilities
Accounts receivable
Inventory
Prepaid expenses
Accounts payable
Accrued salaries and vacation
Other accrued liabilites
Due to other funds
Unearned revenue
Decrease in closure liability
Total adjustments
$ 2,414,715
Net casb provided by (used in) operating activities
Noncash investing, capital, and financing activities:
138
$ (78,645) $ (3,517,397)
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I
I
I
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I
I
I
I
I Newman Total Nonmajor
Daniel Field Tennis Garbage Enterprise
Airport Center Collection Riverwalk Funds
I
I $ (28,337) $ (109,013) $ (4,065,279) $ (196,258) (5,580,214)
I 68,551 1,664,927
697,033
I (133,796) (855,463)
(2,461 ) (1,601)
I (3,648) (3,648)
(22,979) (725) 103,383 (5,140) 105,763
10,944 513 (2,244 ) (177) 35,647
1,398 41,079
I 121,913 29,406 1,027,304 2,000,349
(50)
(76,522)
I 178,429 28,13 1 990,999 (5,317) 3,607,514
$ 150,092 $ (80,882) $ (3,074,280) $ (201,575) $ (1,972,700)
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I
I
I 139
I
Augusta, Georgia
Combining Statement of Net Assets
Internal Service Funds
December 31, 2004
Risk Fleet Workers
Management Operations Compensation
Assets
Current assets
Cash and temporary investments $ 1,169,876 $ $
Accounts receivable
Total current assets 1,169,876
Noncurrent assets
Restricted investments 284,771
Capital assets, net 137,037 220,182
Total noncurrent assets 137,037 220,182 284,771
Total assets 1,306,913 220,182 284,771
Liabilities
Current liabilities
Accounts payable 30,505 384,722 89,814
Due to other funds 271,908 40,991
Accrued salaries and vacation 29,243 13,044
Current portion of leases payable 45,323
Total current liabilities 59,748 714,997 130,805
Noncurrent liabilities
Revenue bonds payable
Total noncurrent liabilities
Total liabilities 59,748 714,997 130,805
Net assets
Invested in capital assets, net of related debt 137,037 174,859
Unrestricted 1,110,128 (669,674) 153,966
Total net assets $ 1,247,165 $ (494,815) $ 153,966
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142
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I
I Long-term
Employee Disability GMA
I Health Benefits Unemployment Insurance Leases Total
I $ $ 47,951 $ 15,657 $ $ 1,233,484
3,105,497 3,105,497
47,951 15,657 3,105,497 4,338,981
I 13,250,183 13,534,954
357,219
I 13,250,183 13 ,892,173
47,951 15,657 16,355,680 18,231,154
I 37 46,957 552,035
66,038 368,507 747,444
I 42,287
45,323
66,075 46,957 368,507 1,387,089
I 16,034,609 16,034,609
I 16,034,609 16,034,609
66,075 46,957 16,403,116 17,421,698
I 311 ,896
(66,075) 994 15,657 (47,436) 497,560
$ (66,075) $ 994 $ 15,657 $ (47,436) $ 809,456
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I
I 143
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Augusta, Georgia
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets I
Internal Service Funds
Year Ended December 31,2004 I
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Risk Fleet Workers
Management Operations Compensation I
Operating revenues
Charges and fees $ 2,322,165 $ 4,203,190 $ 1,836,139
Total operating revenues 2,322,165 4,203,190 1,836,139 I
Operating expenses
Personal services and employee benefits 301,287 110,360
Purchased/contracted services 407,585 30,540 I
Supplies 42,151 215,199
Repairs and maintenance 3,802,863
Interfund/interdepartmental charges 5,900 I
Other costs 2,294 115,590
Depreciation 19,601 44,037
Lease expense 15,670
Risk benefit charges 986,142 I
Insurance 1,683,056
Total operating expenses 1,764,960 4,334,259 1,683,056
Operating income (loss) 557,205 (131,069) 153,083 I
Nonoperating revenue (expense) I
Interest revenue 11, 100
Sale of property
Other revenue 114,802 884
Interest expense (5,439) (3,085) I
Total nonoperating revenue (expense) 125,902 (4,555) (3,085)
Income (loss) before transfers 683,107 (135,624) 149,998 I
Transfers in
Transfers out I
Change in net assets 683,107 (135,624) 149,998
Total net assets - beginning 564,058 (359,191) 3,968 I
Total net assets - ending $ 1,247,165 $ (494,815) $ 153,966
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144 I
Augusta, Georgia
Combining Statement of Cash Flows
Internal Service Funds
Year Ended December 31,2004
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Risk Fleet Workers
Management Operations Compensation
Operating activities
Cash received from contributions $ 2,322,165 $ 4,244,047 $ 1,836,139
Cash received as advances from General Fund 40,991
Cash paid to suppliers (1,592,371) (4,122;795) (1,726,614)
Cash paid to employees (296,231 ) (109,429)
Cash paid for inter fund services used (5,900)
Net cash provided by (used in) operating activities 427,663 11,823 150,516
Noncapital financing activities
Transfers in (out)
Interest expense on operating capital (5,439) (3,085)
Other revenue 114,802 884
Net cash provided (used) by noncapital financing
activities 114,802 (4,555) (3,085)
Capital and related financing activities
Proceeds from capital leases 45,323
Purchase of capital assets (127,925) (52,591)
Interest paid on capital debt
Net cash provided (used) by capital and related
financing activities ( 127,925) (7,268)
Investing activities
Interest received 11,100
Net cash provided by investing activities 11,100
Net increase (decrease) in cash and cash equivalents 425,640 147,431
Cash and cash equivalents/investments
Beginning of year . 744,236 137,340
End of year $ 1,169,876 $ $ 284,771
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146
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Augusta, Georgia
Combining Statement of Cash Flows - Continued
Internal Service Funds
Year Ended December 31,2004
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Workers
Compensation
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Risk
Management
Fleet
Operations
Reconciliation of operating income (loss)
to net cash provided by
(used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization
I
$
557,205
$
(131,069) $
153,083
I
19,601
44,037
I
Change in assets and liabilities:
Accounts receivable
Accounts payable
Accrued salaries and vacation
Due to other funds
Total adjustments
(154,199) 57,067 (43,558)
5,056 931
40,857 40,991
(129,542) 142,892 (2,567)
427,663 $ 1l,823 $ 150,516
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I
Net cash provided by (used in) operating activities
$
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I
148
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I Long-term Total
Employee Disability GMA Internal Service
Health Benefits Unemployment Insurance Leases Funds
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I $ 140,486 $ (126,873) $ (43) $ $ 592,789
I 63,638
I (36,845) (36,845)
(18) (16,158) (119,572) (276,438)
5,987
I 3,097 (20) 228,223 313,148
3,079 (16,158) (20) 71,806 69,490
I $ 143,565 $ (143,031) $ (63) $ 71,806 $ 662,279
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I 149
Augusta, Georgia
Combining Statement of Fiduciary Net Assets
Pension Trust Funds
December 31, 2004
1945 1977 General
Plan Plan Retirement Total
Assets
Cash and cash equivalents $ 1,427,311 $ 1,791,194 $ 1,815,408 $ 5,033,913
Investments
U.S. Government securities 1,855,567 3,615,294 13,418,385 18,889,246
Corporate bonds 1,545,541 3,334,865 10,024,615 14,905,021
Equity securities 4,875,487 9,187,756 38,629,350 52,692,593
Real estate 1,700,000 1,700,000
Receivables (net of allowance for doubtful accounts)
Interest 54,792 106,046 404,443 565,281
Total assets 9,758,698 18,035,155 65,992,201 93,786,054
Liabilities
Accounts payable 7,719 12, 112 6,407 26,238
Due to other funds 334,159 334,159
Total liabilities 7,719 12,112 340,566 360,397
Net assets
Reserved for employees' retirement benefits $ 9,750,979 $ 18,023,043 $ 65,651,635 $ 93,425,657
154
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Augusta, Georgia
Combining Statement of Changes in Fiduciary Net Assets
Pension Trust Funds
Year Ended December 31, 2004
1945 1977 General
Plan Plan Retirement Total
Additions
Contributions - employer $ 170,890 $ 726,255 $ 1,375,050 $ 2,272,195
Contributions - plan member 10,507 779,220 363,574 1,153,301
Net investment income 590,621 1,141,600 3,909,176 5,641,397
Total additions 772,018 2,647,075 5,647,800 9,066,893
Deductions
Administration 64,596 105,050 423,175 592,821
Benefit payments 882,334 651,561 4,599,174 6,133,069
Refunds 185,109 120,731 305,840
Total deductions 946,930 941,720 5,143,080 7,031,730
Net increase (decrease) in
plan net assets (174,912) 1,705,355 504,720 2,035,163
Total net assets - beginning 9,925,891 16,317,688 65,146,915 91,390,494
Total net assets - ending $ 9,750,979 $ 18,023,043 $ 65,651,635 $ 93,425,657
155
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Augusta, Georgia I
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
December 31, 2004 I
January 1, 2004 Additions Deductions December 31, 2004 I
Tax Commisioner
Assets I
Cash and cash equivalents $ 2,059,569 $ 80,542,760 $ 80,495,921 $ 2,106,408
Receivables
(net of allowance for doubtful accounts)
Taxes 24,807,936 127,447,014 133,785,192 18,469,758 I
Total assets $ 26,867,505 $ 207,989,774 $ 214,281,113 $ 20,576,166
Liabilities I
Due to others $ 2,059,569 $ 80,542,760 $ 80,495,921 $ 2,106,408
Uncollected taxes 24,807,936 127,447,014 133,785,192 18,469,758
Total liabilities $ 26,867,505 $ 207,989,774 $ 214,281,113 $ 20,576,166 I
Probate
Assets
Cash and cash equivalents $ 5,104 $ 102,855 $ 99,144 $ 8,815 I
Total assets $ 5,104 $ 102,855 $ 99,144 $ 8,815
Liabilities I
Due to others $ 5,104 $ 102,855 $ 99,144 $ 8,815
Total liabilities $ 5,104 $ 102,855 $ 99,144 $ 8,815
Sheriff I
Assets
Cash and cash equivalents $ 1,289,203 $ 2,872,656 $ 2,686,204 $ 1,475,655 I
Total assets $ 1,289,203 $ 2,872,656 $ 2,686,204 $ 1,475,655
Liabilities
Due to others 1,289,203 2,872,656 2,686,204 1,475,655 I
Total liabilities $ 1,289,203 $ 2,872,656 $ 2,686,204 $ 1,475,655
Civil Court I
Assets
Cash and cash equivalents $ 445,020 $ 1,608,862 $ 1,635,239 $ 418,643
Total assets $ 445,020 $ 1,608,862 $ 1,635,239 $ 418,643 I
Liabilities
Due to others $ 445,020 $ 1,608,862 $ 1,635,239 $ 418,643
Total liabilities $ 445,020 $ 1,608,862 $ 1,635,239 $ 418,643 I
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158 I
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Augusta, Georgia
Combining Statement of Changes in Fiduciary Assets and Liabilities - Continued
Agency Funds
December 31,2004
Liabilities
January 1, 2004 Additions Deductions December 31,2004
$ 2,473,996 $ 4,944,066 $ 5,673,782 $ 1,744,280
$ 2,473,996 $ 4,944,066 $ 5,673,782 $ 1,744,280
$ 2,473,996 $ 4,944,066 $ 5,673,782 $ 1,744,280
$ 2,473,996 $ 4,944,066 $ 5,673,782 $ 1,744,280
Clerk of Court
Assets
Cash and cash equivalents
Total assets
Due to others
Total liabilities
TOTAL ALL AGENCY FUNDS:
Assets
Cash and cash equivalents
Receivables
(net of allowance for doubtful accounts)
Taxes
$ 6,272,892 $ 90,071,199 $ 90,590,290 $ 5,753,801
24,807,936 127,447,014 133,785,192 18,469,758
$ 31,080,828 $ 217,518,213 $ 224,375,482 $ 24,223,559
$ 6,272,892 $ 90,071,199 $ 90,590,290 $ 5,753,801
24,807,936 127,447,014 133,785,192 18,469,758
$ 31,080,828 $ 217,518,213 $ 224,375,482 $ 24,223,559
Total assets
Liabilities
Due to others
Uncollected taxes
Total liabilities
159
AUGUST A, GEORGIA
Schedule of Expenditures of Federal Awards
Year Ended December 31,2004
Federal Grantor /
Pass-through Grantor /
Program Title
U.S. Department of Housing and Urban Development
Direct Programs
Community Development Block Grant
Emergency Shelter Grant
HOME Investment Partnerships Program
Supporting Housing Program
Neighborhood Initiative Program
Housing Opportunities for persons with AIDS
Total U.S. Department of Housing and
Urban Development
U.S. Department of Justice
Direct Programs
Local Law Enforcement Block Grant
Juvenile Accountability Incentive Block Grant
Purchase of Services for Juvenile Offenders Program
Pass-through from the Office of the Governor
Criminal Justice Coordinating Council
Drug Control and System Improvement
Victim Assistance Grants
Fonnula Grants
Children and Youth Coordinating Council Grant
Executive Office For Weed and Seed
Total U.S. Department of Justice
U.S. Department of Transportation
Direct Programs
Urban Mass Transportation Capital and Operating
Assistance Grants
Federal
CFDA
Number
Agency or
Pass-through
Number
14.218
14.231
14.239
14.235
14.246
14.241
B-03-MC-13-0003
S-03-MC-13-0004
M-03-MC-13-0206
GAO I B 104-002
B-02-NI-GA-AU-0002
GAH04F002
16.592
03-LB-BX-0448
16.523 02B-FM-0006
16.523 03B-FM-000I
16.523 02B-ST -0006
16.523 03B-ST-000l/04B-ST-000]
Subtotal 16.523
16.575 2003-V A-GX-0002
16.575 C03-8-201
16.575 C-03-8-008
16.575 C-04-8-001
Subtotal 16.575
16.579 BOI-8-004
16.579 B02-8-006
Subtotal 16.579
15.540
16.595
J02030012
0]-WS-QX-0124
20.507 GA-90-XI53
20.507 GA-90-XI66
Subtotal 20.507
21.507
GA-90-X200
162
Federal
Expenditures
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I
I
I
I
$ 2,085,708
123,931
1,016,027
68,809
332,998
51,4]9
3,678,892
114,935
32,694
6,367
10,503
6]2
50,176
29,060
10,668
30,559
7,640
77,927
30,153
10,049
40,202
16,500
206,327
506,067
44,522
593,767
638,289
15,826
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AUGUSTA, GEORGIA
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I
Schedule of Expenditures of Federal Awards - Continued
Year Ended December 31, 2004
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Federal Grantor /
Pass-through Grantor 1
Program Title
Agency or
Pass-through
Number
Federal
FDA
Number
I
u.s. Department of Transportation
Direct Programs
Federal Aviation Administration
Airport Improvement Program Grants
20.106 3-13-0011-20
20.106 3-13-0011-22
20.106 3-13-0011-25
20.106 3-13-0011-26
20.106 3-13-0011-27
20.106 3-13-0012-09
Subtotal 20.106
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I
Total U.S. Department of Transportation
U.s. Department of Homeland Security
Direct Programs
Reimbursable Agreement Security Requirements
After September II, 200 I
HSTSO 1-04-A-LEF003
U.s. Environmental Protection Agency
Direct Programs
Brownfield Pilots Cooperative Agreements
66.811
BP984866-99-0
Emergency Management Agency
Pass-through from the Georgia Emergency
Management Agency
Hazard Mitigation Grant
Local Emergency Operation Plan
Assistance to Firefighters Grant Program
State Homeland Security Grant Program
1311-0002
EMA-202-GR-5072
EMW-FG-06457
2003-NnJ-T3-0010
2003-NnJ- T3-00 II
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83.548
53.562
83.554
Total Emergency Management Agency
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U.s. Department of Interior
Historic Preservation Fund Grant-in-Aid Program
15.904
13-03-18210-01
Total
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The accompanying notes are an integral part of the schedule of expenditures of federal awards.
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163
Federal
Expenditures
$
27,228
125,653
1,274,151
1,165,772
211,501
3,977
2,808,282
3,462,397
68,616
26,736
118,050
2,169
220,678
28,065
36,092
405,054
6,000
$ 8,153,762
AUGUST A, GEORGIA
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Notes to the Schedule of Expenditures of Federal Awards
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Year Ended December 31,2004
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Note 1 - Basis of presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Augusta, Georgia, and
is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-l33, Audits of States, Local Governments, and Non-Profit Organizations. Therefore,
some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
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Note 2 - Reporting entity
I
The accompanying schedule of expenditures of federal awards includes the accounts of all Augusta and Richmond County
operations. The Government uses the criteria for including organizations as component units within Augusta's reporting
entity, as set forth in Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting
Standards. Excluded from the accompanying schedule of federal awards is the Government's discretely presented
component unit, Richmond County Department of Health. Separate financial statements may be obtained from the
Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901.
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Note 3 - Non-cash awards
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Augusta, Georgia received non-cash federal awards of surplus military equipment totaling $137,000 during the year ended
December 31,2004.
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AUGUSTA, GEORGIA
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Summary Schedule of Prior Audit Findings
Year Ended December 31, 2004
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L Findings related to Financial Statements
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Finding 03-1
Budgetary compliance
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Criteria
The State of Georgia local government budgets and audits code states that the legal level of control shall be, at a
minimum, expenditures for each department for each fund for which a budget is prepared (Article I section 14).
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Condition noted
We noted that several departments across the government had expenditures above appropriations for the fiscal year.
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Recommendation
Augusta-Richmond County should increase the budget level of control to the department level.
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Current Status
Repeat finding this fiscal year.
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II. Findings and Questioned Costs for Major Federal Award Programs Audit
Finding 00-1 (repeat fmding)
U.S. Department of Justice CFDA 16.592; Local Law Enforcement Block Grant
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Criteria
The Grant Award Letter Special Conditions number 8 states, "the recipient agrees to establish a trust fund in which all
payment received under this program, including match, must be deposited. For purposes of this grant, a trust fund is
an interest-bearing account that is specifically designated for this program...".
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Condition noted
Augusta, Georgia did not establish a specifically designated trust fund for receipts under this program. Receipts were
deposited in the pooled cash account of Augusta, Georgia and were initially recorded as receipts on the trial balance of
another fund.
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Recommendation
Augusta, Georgia should set up a separate interest-bearing account for Local Law Enforcement Block Grant receipts,
transfer any unexpended grant balances to this account and notify the Department of Justice to, in the future, wire
advances to this account for Local Law Enforcement Block Grant funds only.
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Current Status
Corrected during this fiscal year.
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165
AUGUSTA, GEORGIA
Summary Schedule of Prior Audit Findings - Continued
Year Ended December 31,2004
Finding 03-2
U.S. Department of Transportation DTSA20-03-P-5041; MOU - Security Reimbursements
Criteria
OMB Circular A-87 Cost Principles for State, Local and Indian Tribal Governments Section C(1)(h), "Factors
Affecting Allowability of Costs - Not be included as a cost or used to meet cost sharing or matching
requirements of any other Federal award in either the current or a prior period."
Condition noted
The City's Augusta Regional Airport at Bush Field requested security cost reimbursements for $39,000 of known
questioned costs under the DTSA20-03-P-5041 Memorandum of Understanding that had previously been reimbursed
under the Airport Improvement Program grant. Controls over record keeping for the initial period of eligibility under
the Memorandum of Understanding were not sufficient to ensure that funds were not previously drawn under the AlP
grant.
Recommendation
The City's Augusta Regional Airport at Bush Field should develop controls over record keeping that include review
and approval of reimbursement requests by both the Security Program Director and the Finance Director to assure
proper administration of Federal Awards.
Current Status
Corrected during this fiscal year.
166
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-" .
. .
. " .
CERTIFIED PUBLIC
ACCOUNTANTS &
CONSULTANTS
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
Augusta-Richmond County Commission
Augusta, Georgia
We have audited the fmancial statements of Augusta, Georgia as of and for the year ended December 31, 2004, and have
issued our report thereon dated May 17, 2005. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We did not audit the financial statements of the
Augusta-Richmond County Department of Health or the Downtown Development Authority. These fmancial statements
were audited by other auditors whose reports thereon have been furnished to us, and in our opinion, insofar as it relates to
the amounts included for the Department of Health or the Downtown Development Authority, is based solely on the reports
of other auditors.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Augusta, Georgia's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide
an opinion on the internal control over fmancial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is
a reportable condition in which the design or operation of one or more of the internal control components does not reduce to
a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to
the financial statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal control over fmancial reporting
and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal
control over fmancial reporting, which we have reported to management of Augusta, Georgia in a separate letter dated May
17,2005.
Comoliance and Other Matters
As part of obtaining reasonable assurance about whether Augusta, Georgia's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of fmancial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards and which are described in the
accompanying schedule 0 f fmdings and responses as items 04-1.
This report is intended solely for the information and use of the fmance committee, management, the Augusta-Richmond
County Commission, federal awarding agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
~,~y-1~'-.L;~
Augusta, Georgia
May 17, 2005
167
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. ~
. ~ .
CERTIFIED PUBLIC
ACCOUNTANTS &
CONSULTANTS
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in
Accordance with OMB Circular A-133
Augusta-Richmond County Commission
Augusta, Georgia
Compliance
We have audited the compliance of Augusta, Georgia with the types of compliance requirements described in the Us.
Office of Management and Budget (OMB) Circular A-l33 Compliance Supplement that are applicable to each of its major
federal programs for the year ended December 31, 2004. Augusta, Georgia's major federal programs are identified in the
summary of auditor's results section of the accompanying schedule of fmdings 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-l33 require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence
about Augusta, Georgia's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not
provide a legal determination on Augusta, Georgia's compliance with those requirements.
In our opinion, Augusta, Georgia complied, in all material respects, with the requirements referred to above that are
applicable to each of its major federal programs for the year ended December 31, 2004. 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-l33 and which are described in the accompanying schedule of fmdings and questions
costs as items 04-2 and 04-3.
Internal Control Over Comoliance
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 and to test and report on the internal control over compliance in accordance with
OMB Circular A-l33.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control
that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation
to a major federal program being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal control over compliance and its
operation that we consider to be material weaknesses.
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AUGUST A, GEORGIA
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Schedule of Findings and Questioned Costs
Year Ended December 31, 2004
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I. Summary of the Auditor's Results
The auditor's report expresses unqualified opinions on the financial statements of Augusta, Georgia as of and for the
year ended December 31,2004.
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No material weaknesses were identified. No reportable conditions in internal control were identified.
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No reportable conditions in internal control over major federal award programs were disclosed by the audit as required
to be reported in accordance with OMB Circular A-B3.
The auditor's report expresses an unqualified opinion on compliance for major federal award programs for Augusta,
Georgia as of and for the year ended December 31, 2004.
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The audit disclosed findings required to be reported in accordance with OMB Circular A-l33, Section 51O(a) as
Finding Numbers 04-2 and 04-3.
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Identification of Maior Programs
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CFDA Number
Name of Federal Program or Cluster
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14.239
14.246
U.S. De{>artment of Housing and Urban Development
HOME Investment Partnerships Program
Neighborhood Initiative Grant
16.595
U.S. Department of Justice
Weed and Seed Grant
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20.507; 21.507
U.S. Department of Transportation
Federal Transit Grant
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83.554
Emergency Management Agency
Assistance to Firefighters Grant
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We used a threshold of $300,000 to distinguish between Type A and Type B programs.
Augusta, Georgia is a low-risk auditee.
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AUGUSTA, GEORGIA
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Schedule of Findings and Questioned Costs - Continued
Year Ended December 31, 2004
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I. Findings related to Financial Statements
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Finding 04-1 (repeat fmding)
Budgetary compliance
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Criteria
The State of Georgia local government budgets and audits code states that the legal level of control shall be, at a
minimum, expenditures for each department for each fund for which a budget is prepared (Article I section 14).
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Condition noted
We noted that several departments across the government had expenditures above appropriations for the fiscal year.
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Recommendation
Augusta-Richmond County should increase the budget level of control to the department level.
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Views of responsible officials and planned corrective actions
The departments that exceeded their budgets for fiscal year 2004 included the following. These overruns occurred
because of various reasons as explained below. In addition, the General fund contingency was depleted in December
2004 and a budget amendment would have had to be done after December 2004 to appropriate fund balance reserve.
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L Legal Indigent Defense expenditures exceeded the budget by $320,214. The Finance Department did not
have accurate estimates of the potential expenditure in 2004 even after additional appropriation of fund
balance of $460,000 in September 2004. The Finance Department is looking closely at the expenditures in
2005.
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2. Employee Health Insurance Benefit fund expenditures exceeded the budget because claims expense in 2004
was higher than anticipated. A new insurance company has been selected for FY 2005 and it is expected to
show a decrease in expenditures.
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3. Hotel-Motel Tax fund - The collections in 2004 were over budget and as a result the disbursements were over
budget. The expenditures exceeded the budget only because of the fact that we collected more and paid out
more. In FY 2005 Finance staff will monitor the collections to ensure the budget is amended to reflect that
the projected collections agree to the budgeted collections and disbursements.
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4. The Law Department FY 2004 expenditures exceeded the budget by $158,318. These expenditures exceeded
the budget because of an increase in legal fees.
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5. The Solicitor General expenditures exceeded the budget by $50,329 because of salaries.
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6. The Phinzy Road Jail expenditures exceeded the budget by $161,300 due to increase in inmates medical
services.
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7. There are some other departments where the expenditures exceeded the budget because of indirect cost
allocations, workers compensation and employee health insurance expenditures were higher than budgeted
expenditures. The Finance Department is closely monitoring these expenditures in 2005 to ensure that the FY
2005 expenditures do not exceed the budget.
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8. Overall, the General Fund expenditures for 2004 were under budget by $1,131,240.
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The Finance Department will continue to monitor FY 2005 budget and expenditures and ensure that the appropriate
budget amendments are done in 2005 to avoid the expenditures exceeding the budget. It may be necessary to amend
the budget after December 31, 2005 if there are Departments that have expenditures exceeding the budget since we
continue to recognize accruals for expenditures after December 31, 2005. In some cases these expenditures are
mandated, however, the proper budget amendment to increase reserve or revenues and appropriations as necessary
would be done.
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AUGUST A, GEORGIA
Schedule of Findings and Questioned Costs - Continued
Year Ended December 31, 2004
II. Findings and Questioned Costs for Major Federal Award Programs Audit
Finding 04-2
U.S. Department of Housing and Urban Development - CFDA 14.239 - HOME Investment Partnership Program
Criteria
OMB A-133 (.400(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.
Condition noted
Insufficient resources were dedicated to sub-recipient monitoring.
Recommendation
We recommend that the HOME program of Augusta, Georgia implement the following controls:
A. Review required sub-recipient reports and follow up on areas of concern.
S. Perform site visits to sub-recipients to review financial and programmatic records and observe operations.
C. Draft written policies which establish the following:
communication of Federal award requirements to sub-recipients;
responsibilities for monitoring sub-recipients;
process and procedures for monitoring;
methodology for resolving [mdings of sub-recipient noncompliance or weaknesses in internal
control;
and requirements for and processing sub-recipient audits.
D. All of these recommendations should be documented.
Views ofresponsible officials and planned corrective actions
The Finance Department concurs with these [mdings. The Housing and Economic Development Department is
currently addressing these problems. Discussions are underway to hire a grant accountant to work with the Finance
Department to develop written policies and procedures to ensure better accountability and management of these grant
related funds.
Finding 04-3
U.S. Department of Housing and Urban Development - CFDA 14.246 -,- Neighborhood Initiative Grant
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 [mancial
progress and shall conform with 24 CFR 85.40 and 85.41 or 24 CFR Sections 84.50 through 84.53, as applicable.
Condition noted
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.
Recommendation
We recommend that the Neighborhood Initiative Program of Augusta, Georgia implement the following controls:
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.
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AUGUST A, GEORGIA
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Schedule of Findings and Questioned Costs - Continued
Year Ended December 31, 2004
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Views of responsible officials and planned corrective actions
The Finance Department concurs with these fmdings. The Housing and Economic Development Department is
currently addressing these problems. Discussions are underway to hire a grant accountant to work with the Finance
Department to develop written policies and procedures to ensure better accountability and management of these grant
related funds.
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