The URL can be used to link to this page

Home My WebLink AboutAnnual Financial Statement Augusta Richmond GA DOCUMENTNAME:A'(\n\..A.c~) "'F\ nQV\cio. \ stdremeh-t--' DOCUMENTTYPE~,?OY" S YEAR: LOO L . BOX NUMBER: LO FILE NUMBER: \ '103 '7-- NUMBER OF PAGES: \~ ~j) I I I I I I I I I I I I I I. I I I I I ti!-d. # /-/63 L- AUGUSTA, GEORGIA Annual Financial Statements For the Year Ended December 31,2002 I I I I I I I I I I I I I I I I I I I AUGUSTA, GEORGIA ANNUAL FINANCIAL REPORT For the Fiscal Year ended December 31, 2002 I AUGUSTA-RICHMOND COUNTY, GEORGIA I Annual Financial Report Year Ended December 31, 2002 I Table of Contents I INTRODUCTORY SECTION I TRANSMITTAL LETTER LISTING OF ELECTED AND APPOINTED OFFICIAL I FINANCIAL SECTION I REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS I MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS I Government-wide Financial Statements: Statement of Net Assets I Statement of Activities I Fund Financial Statements: Balance Sheet - Governmental Funds I Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds I Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activities I Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund I Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Fire Protection Fund Statement of Net Assets - Proprietary Funds I Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds I Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds - . . Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements - - - - Page i-vii viii 1-2 4 - 13 18 19 - 20 23 - 24 26 27 - 28 30 31 32 33 34 35 - 36 37 38 42 - 75 I I AUGUSTA-RICHMOND COUNTY, GEORGIA I Annual Financial Report Year Ended December 31,2002 Table of Contents (continued) I REQUIRED SUPPLEMENTARY INFORM A nON I Pension Plans- Required Supplementary Information - Schedules of Funding Progress Pension Plans - Required Supplementary Information - Schedules of Employer Contributions and Notes to Required Schedules I COMBINING AND INDIVIDUAL FUND STATEMENTS I NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet - Nonmajor Governmental Funds I Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds I Combining Balance Sheet - Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Special Revenue Funds I Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds I Urban Services District Fund Emergency Telephone System Fund Capital Outlay Fund Law Enforcement Fund Occupation Tax Fund Special Assessment Fund Promotion!rourism Fund Housing and Neighborhood Development Fund Urban Development Action Grant Fund Downtown Development Authority Fund State Capital Grants 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 I I I I I Combining Balance Sheet - Nonmajor Debt Service Funds I Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds I Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Nonmajor Debt Service Funds I Debt Service Fund Urban Debt Service Page 77 - 78 79 - 81 85 - 86 87 - 88 89 - 92 93 - 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 III 112 113 114 115 116 117 118 I I AUGUSTA-RICHMOND COUNTY, GEORGIA I Annual Financial Report Year Ended December 31,2002 Table of Contents (continued) I Page I Combining Balance Sheet - Nonmajor Capital Project Funds 119 Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds 120 I NONMAJOR ENTERPRISE FUNDS I Combining Statement of Net Assets - Nonmajor Enterprise Funds 123 - 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets- Nonmajor Enterprise Funds 125 - 126 I Combining Statement of Cash Flows - Nonmajor Enterprise Funds 127 - 130 I INTERNAL SERVICE FUNDS Combining Statement of Net Assets - Internal Service Funds 133 - 134 I Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets - Internal Service Funds 135-136 I Combining Statement of Cash Flows - Internal Service Funds 137 - 140 FIDUCIARY FUNDS I Combining Statement of Fiduciary Net Assets - Pension Trust Funds 143 Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds 144 I Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds 147 - 148 COMPLIANCE SECTION I Schedule of Expenditures of Federal A wards 151 - 152 I Notes to Schedule of Expenditures of Federal Awards 153 Summary Schedule of Prior Audit Findings 154 - 155 I Report ofIndependent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 156 I Report ofIndependent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 157 - 158 I Schedule of Findings and Questioned Costs 159 - 161 I I I I I I I I I I I I I I I I I . FINANCE DEPARTMENT DAVID PERS~UD, FINANCE DIRECTOR, MPA, CGFM, CPE . Tammy Strange, CPA, Assistant Finance Director Donna B. Williams,CGFM, Assistant Finance Director Sandra M. Wright, CWCP, Risk Management Manager Ron Crowden, Fleet Manager Room 207 - Municipal Building 530 Greene Street-AUGUSTA, GA30911 (706) 821-2429 - FAA (70.6) 821-2520 www.augustaga.gov August 26, 2003 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 close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, is hereby submitted the annual financial report of Augusta, Georgia for the fiscal year ended December 31, 2002. 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 infonnation 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 infornlation for the preparation of Augusta, Georgia financial statement in confornlity 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, LLP, 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, 2002 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and . . - . I I I I I I I I I I I I I I I I I I significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that Augusta, Georgia's financial statements for the fiscal year ended December 31, 2002, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the [mancial 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 auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are included in Augusta, Georgia's Single Audit section of this report. 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. The Augusta is on the fall line and has landscape dotted with foothills which descend to the coastal plain. The 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. The 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 financial operations January 1, 1996. The Government is governed by a full-time Mayor, with a ternl 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. . I I I I I I I I I I I I I I I I Augusta provides a full range of services, including public safety and fire protection; the construction and maintenance of highways, streets, and other infrastructure; and 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 fmancially accountable for the legally separate Richmond County Department of Health which is reported separately within 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 included in the governmental fund subsection are project- length budget-to-actual comparisons for each governmental fund for which a project- length budget has been adopted. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which Augusta operates. . . Local economy. Augusta, located in the heart of the Southeast, is Georgia's second largest and second oldest city. The Augusta has been listed in the top-ten best Southern cities for business (Entrepreneur Magazine) and rated as the second best place to live in Georgia, and III th in the nation. (Places Rated Almanac). These designations are based on a variety of factors including cost of living, transportation, higher education, job outlook, health care, the arts, recreation and climate. The Augusta has also been recognized for having the most affordable housing during the third quarter in 1998 (National Association of Home Builders) and a very affordable cost of living. . . . - I I I I I I I I I I I I I I I I I I I Bolstered by nearly half a million residents, the area's economy as a whole is much like that of its health care sector: clean, high tech and well supplied with skilled workers. In addition to a strong sense of history and related attractions, the city offers a rich variety of sophisticated amenities including a vibrant arts community and a wealth of fine restaurants. The Augusta's Southern hospitality is evident from the temperate climate to the year- round greenery that reminds residents and visitors alike of Augusta's designation as the Garden City. 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 clinics centrally located within one building. More than a dozen other major medical facilities are located in the region. The U.S. Army Signal Center and Fort Gordon, the largest communications electronics training center in the world, rounds out Augusta's teclmology-based economy. The center has advanced communications teclmology, 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 nuclear danger by transferring applied environmental technology to government and non-government entities cleaning up the site, managing the waste and forming economic and industrial alliances. SRS has a significant economic impact across the two states, affecting more than a dozen counties. The current annual budget of SRS is $1.6 billion, including a payroll of approximately $900 million. I I I I I I I I I I I I I I I I I I I Westinghouse Savannah River Company (WSRC) is responsible for the day-to-day operations of the nuclear facility. Other major contractors on the site include Bechtel Savannah River Inc., Babcock & Wilcox Group (B & W Savannah River Company) and British Nuclear Fuels Limited (BNFL Savannah River Company). Long-term financial planning. The governing commission approved the fiscal year 2003 budget totaling $485 million with emphasis on controlling the cost of government services. The budget will provide the level of services in fiscal year 2003 consistent with fiscal year 2002. More emphasis will be placed on managing for results by utilizing a program performance basis of budgeting in fiscal year 2003. 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 developed relative performance measures to measure program performance and results. During fiscal year 2002 the Finance Department completed a comprehensive five year 2003-2007 capital improvements program budget totaling over $300 million. This long- term fiscal plan is a strategic planning document consisting of an evaluation of all the capital and infrastructure needs and capital improvements necessary to allow the government to plan for capital assets acquisition and replacement for the next five years. The Special Purpose Local Option Sales Tax (SPLOST) for the current period 2001-2005 will generate an estimated $160 million for capital projects. This dedicated one cent sales tax provides the government with a method of funding essential on-going capital projects and provide funds for major capital needs. The government issued $149.4 million water and sewerage revenue bonds in June 2002. The proceeds of the bonds will be used to fund the costs of making additions, extensions and improvements to the consolidated government's water and sewer system. In addition, $8.6 million will be used to refund in principal amount of a loan made by the Georgia Environmental Facilities Authority to the consolidated government. The Augusta Utilities. Department owns and operates the water treatment distribution facilities as well as the waste water conveyance and treatment facilities. The current water system serves over 59,210 residential customers and 6653 commercial and industrial customers. The service area encompasses approximately 210 square miles serving an estimated population in excess of 180,000. Water is supplied by the Savannah River and supplemented by ground water wells through out the county. The current waste water system serves approximately 44,801 residential and 5074 commercial and industrial customers. The service area encompasses 106 square miles with an estimated population of 150,683. I I I I I I I I I I I I I I I I I I I 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 1.7 percent for the government and an average yield of -7.8 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 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. During 2002 Risk Management program was transferred from the Human Resources Department to the Finance Department. Another major change occurred when Information Technology completed the newly developed Risk Management Claims Database. With the database [mally in place Risk management now had the capability of generating reliable claims reports for each department. Program development in the loss control area was hampered by a vacancy in the Loss control Officer position since 2001. None the less, gains were made in this area. The revision of the Substance Abuse Policy including a power point training aid was completed. A plan was developed and implemented for counseling injured employees on unsafe acts (it is still too early to evaluate the impact); Risk Management's inspection of facilities and vehicles is now well established. Improvements were made on the documentation of activities on claims and complaints received as well as facility and vehicle inspections. During 2002 there were 11 property damage claims; 226 vehicle damage claims; 484 workers compensation claims; 154 general complains. Also in 2002 there were 89 facility inspections and 272 vehicle inspections. During 2002 Public Safety initiatives addressing safety issues for Sheriffs Office Motorcycle Division which included: (a) purchased handle bar switches for radios to reduce/eliminate need for officer to remove hands from handle bars; also, purchased speakers which attach to the inside of the helmets, (b) twenty-four camcorders were purchased for Sheriffs vehicles (continuation of program to install camcorders in all patrol units that started in 1997), (c) safety issues for Fire Department which included the purchase of two cameras to aid in search and rescue bringing the total to three cameras. Risk Management goals for 2003 will include: I I I I I I I I I I I I I I I I I I I (a) an effort to raise awareness of claims activity and provide each department with a year-end claims report for 2002. This will be followed by a monthly report on 2003 year-to-date claims on property damage and workers compensation; (b) train all employees on Substance Abuse Awareness; (c) prepare RFP for insurance package (auto, public official, commercial property). Currently, auto claims are handled in-house. By 2005 the city under state laws must cover auto liability claims up to $100,000; 2006 increases to $250,000; 2008 increases to $500,000; (d) complete implementation of Emergency Action Plan for Municipal Building; (e) re-establish Driver Training Program, and; (1) as a pilot program, select a department in which to implement Behavior Based Safety by using selected department as a model for other areas. Fleet management. The Fleet maintenance services are accounted for in an Internal Service Fund with monthly allocation to all user departments. The contractor SKE support services provided this service during 2002 totaling $3.26 million on 2542 pieces of equipment. The contract was bid in 2002 and First Vehicle Services was awarded the contract for a three year period 2003-2005 with the 2003 cost for this service estimated at $3.2 million. Vehicle replacement are financed on an annual basis through an agreement with the Georgia Municipal Association (GMA). 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, I I I I I I I I I I I I I I I -,., ~l _"I -Ill -III List of Elected-and Appointed Officials December 31, 2002. Bob Young Lee Beard Marion Williams Steve Shepard Richard Colclough Bobby Hankerson Andy Cheek Tommy Boyles Ulmer Bridges William Mays, III Bill Kuhlke Elected Officials Mayor District 1 District 2 District 3 District 4 District 5 District 6 District 7 District 8 District 9 District 10 Appointed Officials George Kolb Fred Russell Walter Hornspy, III Lena Bonner David Persaud Jim Wall Administrator Deputy Administrator Deputy Administrator Clerk of Commission Finance Director Attorney I I I I I I I I I I I I I I I I I I I FINANCIAL SECTION I I I CEKflFIED PUBLIC - ACCOtiNTANTS..o:1 CON~ULTANTS I I REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS I Augusta-Richmond County Commissioners Augusta, Georgia I We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Augusta, Georgia as of December 31, 2002 and for the year then ended, which collectively comprise Augusta's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Augusta, Georgia management. Our responsibility is to express an opinion 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 fmancial statements were audited by other auditors whose reports thereon have 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. I I I We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fInancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 provides a reasonable basis for our opinion. I I In our opinion, based upon our audit, 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, each major fund and the aggregate remaining fund information of Augusta, Georgia, as of December 31, 2002 and the respective changes in financial position and cash flows, where appropriate, and the respective budgetary position of 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. I I As discussed in Note 1 to the basic financial statement,>, Augusta, Georgia adopted Governmental Accounting Standards Board (GASB) Statement No. 34 during the year ended December 31, 2002. I Management's Discussion and Analysis and the schedules of funding progress and employer contributions are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit this information and express no opinion thereon. I I In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2003 on our consideration of Augusta-Richmond County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. I I . . I I I I I I I I \ I I r I I I I I I' . . - Our audit was performed for the purpose of forming an opinion on the basic financial statements of Augusta, Georgia, taken as a whole. The combining and individual fund statements for the year ended December 31,2002, as well as the accompanying schedule of expenditures of Federal and State awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations for the year ended December 31, 2002, are presented for purposes of additional analysis and are not a required part of the basic fInancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic fmancial statements taken as a whole. ~/~rf- ~/(L.~ Augusta, Georgia June 20, 2003 2 I Management's Discussion and Analysis I As management of Augusta, Georgia, (the "Government"), we offer readers of the Government's financial statements this narrative overview and analysis of the financial activities of Augusta, Georgia for the year ended December 31, 2002. We encourage readers to read the information presented here in conjunction with additional infonnation that we have furnished in the Government's financial statements, which follow this narrative. I I Financial Highlights I · The assets of the Government exceeded its liabilities at the close of the fiscal year by $548,100,685 (net assets). · The government's total net assets increased by $36)33,913, primarily due to increased revenue from special purpose local option sales tax. · As of the close of the current fiscal year, the Government's governmental funds reported combined ending fund balances of $165,297,332, an increase of $17,972,477 from the prior year. Approximately 23 percent of this total amount, or $36,128,426, is available for spending at the government's discretion (unresen1ed fund balance). · At the end of the current fiscal year, undesignated and designated fund balance for the General Fund was $30,255,157 or 32 percent of total general fund expenditures for the fiscal year. Of this amount, $4,705,061 has been designated for other purposes leaving $25,550,096 or 27 percent of total general fund expenditures as undesignated. · The Government's total debt increased by $134,644.549 during the current fiscal year, primarily due to approximately $148 million resulting from the issuance of 2002 Water and Sewerage Revenue bonds; there also was the continuing reduction in outstanding principal on existing debt. · The Government has maintained a A+ bond rating from Standard and Poor's Rating Group and a A2 rating from Moody's Investor Service. I I I I 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 Government's basic financial statements consist of three components; 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the Government through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial condition of the Government. I I Required Components of Annual Financial RClwrt Figurc 1 I I Managemcnt's Basic Discussion and Financial Analysis Statements I I I Government - Fund Notes to the Wide Financial Financial Financial Statements Statements Statemcnts I I I Summary . Dctail I I I 4 I Basic Financial Statements I The fIrst two statements (pages 18 and 19) in the basic fInancial statements are the Government-wide Financial Statements. They provide both short and long-tenn information about the Government's financial status. I The next statements (pages 22 through 38) 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: I) the governmental funds statements; 2) the budgetary comparison statements; 3) the proprietary fund statements; and 4) the fiduciary fund statements. I I The next section of the basic financial statements is the notes. The notes to the fmancial 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 basic fInancial statements. I Following the notes is the required supplemental information. This section contains funding information about the Government's pension plans. I Government-wide Financial Statements I The government-wide financial statements are designed to provide the reader with a broad overview of the Government's fmances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-tenn information about the Government's fmancial status as a whole. I The two government-wide statements report the Government's net assets and how they have changed. Net assets are the difference between the Government's total assets and total liabilities. Measuring net assets is one way to gage. the Govemment's fInancial condition. I The government-wide statements are divided into three categories: 1) governmental activities; 2) business-type activities; and 3) component units. The governmental activities include most of the Government's basic services such as general administration, judicial services, public safety, public works, health and welfare, culture and recreation, and housing and development. Property taxes and state and federal grant funds finance most of these activities. The business-type activities are those that the Government charges customers to provide. These include waste management, water and sewer, airports and other proprietary funds. The final category is component units. The Richmond County Department of Health is a public health department. Although legally separate from the Government, the Government appoints a voting majority of the board for the Department of Health. I I Fund Financial Statements I The fund fmancial statements provide a more detailed look at the Government's most significant activities. 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 all other governmental entities in Georgia, uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal requirements, such as the County's budget ordinance. All of the funds of the Government can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. I I Governmental Funds - Governmental funds are used to account for those functions reported as governmental activities in the government-wide fmancial statements. Most of the Government's basic services are accounted for in governmental funds. 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. This method also has a current fInancial resources focus. As a result, the governmental fund fmancial statements give the reader a detailed short-tenn view that helps him or her determine if there are more or less financial resources available to fmance the Government's programs. The relationship between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements. I . . I 5 ,. . I I The Government adopts annual budgets for its General Fund and its Fire Protection Fund. The budget is a legally adopted document that incorporates input from the citizens of the Government, the management of the Government, and the decisions of the Augusta-Richmond County Commission about which services to provide and how to pay for them. It also authorizes the Government to obtain funds from identified sources to finance these current period activities. The budgetary statements provided for the General Fund and Fire Protection Fund demonstrate how well the Government complied with the budget ordinance and whether or not the Government succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting (which is modified accrual) and is presented using the same format, language, and classifications as the Statement of Revenues, Expenditures, and Changes in Fund Balance. The statements show four columns: I) the original budget as adopted by the commission; 2) the final budget as amended by the commission; 3) the actual resources, charges to appropriations, and ending balances in the General Fund and in the Fire Protection Fund; and 4) the difference or variance between the final budget and the actual resources and charges. I I I Proprietary Funds - The Government has two types of proprietary funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Government uses enterprise funds to account for its Waste Management, Water and sewer, airports, Municipal golf course, Transit, Newman Tennis Center, Garbage Collection, and Riverwalk operations. Internal Service Funds account for the fmancing of services provided by one department or agency to other departments or agencies of the Government on a cost reimbursement. The Government has seven Internal Service Funds. I I Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The Government has 9 fiduciary funds; three pension trust funds, one private-purpose trust fund, and five agency funds. I Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 40 of this report. I I Other Information - In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the Government's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found beginning on page 76 of this report. I Government-Wide Financial Analysis I The government-wide fmancial statements for the year ended December 31, 2002, are the beginning of a new era in fmancial reporting for the Government, and many other units of government across the United States. Prior to this year, the Government maintained governmental, proprietary, and fiduciary fund groups as separate and very distinct types of accounting without any type of consolidated statement that reflected the operations and net assets of the government as a whole. There was a total column that appeared on the financial statements, but it was a memorandum total only. No attempt was made to adjust the statements in such a way that the total column would represent the overall financial condition of the Government. These statements were basically the equivalent of the fund financial statements that appear in this report with fiduciary funds and two account groups, the long-term debt and the general fixed assets, added in. I I The changes in the fmancial statement reporting model are mandated by the Government Accounting Standards Board (GASB). GASB Statement 34 dictated the changes you see in the Government's financial reports as well as those of many other units of government. While the Government was required to implement these changes for the year ending in 2002, other units may not be required to implement until 2003 or 2004. I I Because of the new reporting model, comparative data for all facets of this report are not available. When comparative numbers are accessible, they have been included, such as with outstanding debt. Future years' reports will have more comparative data that will allow more opportunities for comparative analysis. I I 6 I I I The Government's Net Assets Figure 2 Activities Activities Total Governmental Business-type 2002 2002 2002 Current and other assets $ 2 I 1,223,500 $ 267,410,293 $ 478,633,793 Capital assets 205,796,966 252,479,150 458,276,116 Total assets 417,020,466 519,889,443 936,909,909 Long-term liabilities outstanding 30,054,792 326,938,096 356,992,888 Other liabilities 20,559,536 11,256,800 31,816,336 T otalliabilities 50,614,328 338,194,896 388,809,224 Net assets: Invested in capital assets, net of related debt 195,964,885 133,280,493 329,245,378 Restricted 122,169,587 12,967,555 135,137,142 Unrestricted 48,271,666 35,446,499 83,718,165 Total net assets $ 366,406,138 $ 181,694,547 $ 548,100,685 I I I I I I I I As noted earlier, net assets may serve over time as one useful indicator of a government's financial condition. The assets of the Government exceeded liabilities by $548, I 00,685 as of December 31, 2002. I One of the largest portions of nets assets, $329,245,378, (60%) reflects the Government's investment in capital assets (e.g. land, buildings, machinery, and equipment), less any related debt still outstanding that was issued to acquire those items. The Government uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Government's investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. I I An additional portion of the Government's net assets, $135,137,142 (25%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets $83.718.165 may be used to meet the Government's ongoing obligations to citizens and creditors. I Several particular aspects of the Government's financial operations positively influenced the total unrestricted governmental net assets: I · Continued diligence in the collection of property taxes by maintaining a collection percentage of 96% for real personal and property. · Continued low cost of debt due to the County's high bond rating. · Continued diligence in the maintenance of a 25 percent fund balance reserve. I I I 7 I I The Government Changes in Net Assets I Figure 3 I Governmental Business-type Activities Activities Total 2002 2002 2002 I Revenues: Program revenues: Charges for services $ 29,663,562 $ 65,481,527 $ 95,145,089 I Operating grants and contributions 1,575,442 947,443 2,522,885 Capital grants and contributions 5,234,369 2,144,008 7,378,377 General revenues: Property taxes 39,479,186 39,479,186 I Other taxes 91,124,868 91,124,868 Grants and contributions not restricted to specific programs 984,944 984,944 Unrestricted investment earnings 3,762,503 8,577 ,606 12,340,109 I Gain on sale of assets 246,644 246,644 Miscellaneous 433,812 1,080,633 1,514,445 Total revenues 172,258,686 78,477 ,861 250,736,547 I Expenses: General government 27,584,914 27,584,914 Judicial 11,327,309 11,327,309 Public safety 61,423,703 61,423,703 I Public works 13,424,146 13,424,146 Health and welfare 2,249,014 2,249,014 Culture and recreation 12,209,832 12,209,832 I Housing and development 10,387,097 10,387,097 Interest on long-tenn debt 8 15,079 815,079 Waste management 4,419,230 4,419,230 Water and sewer 45,747,805 45,747,805 I Airports 10,573,908 10,573,908 Municipal golf course 687,464 687,464 Transit 3,800,766 3,800,766 Newman Tennis Center 284,900 284,900 I Garbage Collection 9,337,793 9,337,793 Riverwalk 229,674 229,674 Total expenses 139,421,094 75,081,540 214,502,634 I Increase in net assets before transfers 32,837,592 3,396,321 36,233,913 Transfers (5,642,170) 5,642,170 I Increase in net assets 27,195,422 9,038,491 36,233,913 Net assets, January 1 339,210,716 172,656,056 511,866,772 Net assets, December 3 1 $ 366,406,138 $ 181,694,547 $ 548,100,685 I I I I 8 I I I I $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $- I I I I I I I Government-Wide Expenses In Millions 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1. Public Safety 5. Culture & recreation 9. Garbage collection 13.lnterest I 2. Water and sewer 6. Judicial 10.Waste management 14.Municipal golf course 3. General government 4. Public works 7. Airports 8. Housing & development 11.Transit 12.Health & welfare 15.Newman Tennis Center 16.Riverwalk I $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 I I . . - ~.-..~_. -,,:~.. .., 2 3 4 5 6 7 8 9 1 . Charges for services 3. Property taxes 5. Capital grants and contributions 7. Miscellaneous 9. Gain on sale of assets 2. Other taxes 4. Unrestricted investment earnings 6. Operating grants and contributions 8. Grants and contributions not restricted to specific programs 9 I I Governmental activities. Governmental activities increased the Government's net assets by $27,195,422, and thereby accounting for 75% of the total growth in the net assets of the Government. Key elements of this increase are as follows: I Governmental Revenues. Property tax and other taxes continue as the main source of revenue of the Government amounting to 76 percent in 2002, compared to 74 percent in 2001. Sales tax revenues contributed approximately $20 million to the increase in net assets. I Governmental Functional Expenses: As reflected in the sununary of changes in Net Assets, the Government expended 52 percent of the appropriations for judicial and public safety expenditures. Reduced spending in general government, public safety, and public works also contributed approximately $3 million to the increase in net assets. The Government continues to commit substantial financial resources for the safety of its citizens. I I Business-type activities: Business-type activities increased the Government's net assets by $9,038,491 accounting for 25% of the total growth in the government's net assets. Key elements of this increase are as follows: I I · The Waste Management Fund reported an increase in net assets of$I,321,872. This increase was due to increase in user fees for services · The Water and Sewer Fund reported an increase in net assets of$4,393,413. This increase was largely due to an increase in user charges of approximately $3.6 million and the rate increase for new debts in 2002. · The Augusta Regional Airport Fund reported an increase in net assets of $2,978,268. This increase was largely due to approximately $2.1 million of intergovernmental revenue received and $.8 million increase on operating revenues. I Financial Analysis of the Government's Funds I As noted earlier, the Government uses fund accounting to ensure and 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 fmancing requirements. SpecifIcally, unreserved fund balance can be a useful measure of a government's net resources available for spending at the end of the fiscal year. I At December 31,2002, the governmental funds of the Government reported a combined fund balance of $165,297,332, of which $36,128,426 is unreserved. Total combined fund balance increased 12% percent over last year, while unreserved fund balance decreased less than 2% from the prior year. The primary reason for the increase of total fund balance is due to the excess of collections of special purpose local option sales taxes over capital projects spending. Unreserved fund balance did not change significantly from the prior year, which is consistent with budgeted amounts. . - - . - The general fund is the chief operating fund of the Government. 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 for the year. At the end of the current fiscal year, undesignated and designated fund balance of the General Fund was $30,255,157 or 32 percent of total general fund expenditures for the fIscal year. Of this amount, $4,705,061 has been designated for risk benefit charges, leaving $25,550,096 or 27 percent of total general fund expenditures as undesignated. .. General Fund Budgetary Highlights: During the year ended 2002, the Government's fmancial picture remained stable. The City of Augusta approved a 21 percent millage increase to allow for the funding of essential governmental services. The 2002 budget was balanced with this millage increase in order to provide the necessary resources for the delivery of public services. During the year, the Government revised the budget on several occasions. Generally, budget amendments fall into one of four categories: 1) amendments to appropriate fund balance for encumbrances from the prior year 2) 10 I I amendments made to adjust the estimates that are used to prepare the original budget resolution once exact information is available; 3) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; and 4) increases in appropriations that become necessary to maintain services. Total amendments to the General Fund increased expenditures by only $3,126,543 or 3 percent, an immaterial amount. Total amendments to the General Fund also increase revenues by $2,287,412 or 2.5 percent. Total amendments to the Fire Protection Fund increased expenditures by only $435,311 or 3 percent, an immaterial amount. There were no amendments to the Fire Protection Fund revenues. I I The actual operating revenues for the General Fund were less than the budgeted amount by $1,303,945. The major contributing factor in this shortfall of revenue was decrease in property tax collections of $.64 million, Use of money and property by $.72 million, Intergovernmental revenue of $.73 million, and Fines and forfeitures of $.6 million. Taxes other than property increase of $1.4 million offset the decrease of $2.7 million resulting in the $1.3 million decline in revenues. The Government was able to offset the shortfalls through reductions in expenditures in various departments including public safety, public works, and general government. As a result, actual operating expenditures were less than the budgeted amount by $4,25 I ,258. For the year, actual revenue and other financing sources exceeded actual expenditures and other financing uses by $1,815,856. I I The actual operating revenues for the Fire Protection fund were less than the budgeted amounts by $646,238. The major contributing factor in this shortfall of revenue was decrease in property tax collections of $.5 million. The Government was able to offset this shortfall through reductions primarily in public safety expenditures of $.67 million. For the year, actual revenue and other financing sources were less than expenditures by ($386,177). I I Proprietary 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 of the Water and Sewer Fund at the end of the year amounted to $26,736,052, those for the Augusta Regional Airport equaled $11,459,426, and those for other proprietary funds showed a deficit of ($2,748,979). The total growth in net assets for previously mentioned funds were $4,393,413, $2,978,268, and $1,666,810, respectively. Other factors concerning the finances of these funds have already been addressed in the discussion of the Government's business-type activities. I I Capital Asset and Debt Administration I Capital assets. The Government's capital assets for its governmental and business - type activities as of December 31, 2002, totals $458,276,116 (net of accumulated depreciation). These assets include buildings, infrastructure, land, furniture, fixtures and equipment, vehicles and construction in progress. I Major capital asset transactions during the year include: · Addition of Water and sewer systems of$32 million · Construction of $4.9 million of infrastructure and other public works projects I The Government's Capital Assets Figure 4 I (net of depreciation) I Governmental Business-type Activities Activities Total 2002 2002 2002 Land $ 15.784.481 $ 11,911.290 $ 27,695,771 Buildinl?S and improvements 58503.067 36573,780 95,076,847 IT eQuipment. furniture and fixtures 999.223 24.367 1,023590 Infrastructure 36,760598 163.401,318 200,161,916 Vehicles. machinery and eQuipment 12,924,194 5515.213 18.439.407 Richmond County Public Facilities 2,1 09.247 2,109.247 Construction in progress 78.716,1 56 35,053.182 113,769.338 Total $ 205,796,966 $ 252.479,1 50 $ 458.276,1 16 II I I I I I I Additional information on the Government's capital assets can be found in note 3 of the basic financial statements. I Long-term Debt. As of December 31,2002, the Government had total bonded debt outstanding of $350,000 which is backed by the full faith and credit of the Government. The Government also had $309,251,677 of revenue debt, which is backed by the revenues of the Water and sewer system. I The Government's Outstanding Debt General Obligation and Revenue Bonds Figure 5 I Governmental Business-type Activities Acti vities Total 2002 2001 2002 2001 2002 2001 General obligation bonds $ 350,000 $ 1,690,000 $ $ $ 350,000 $ 1,690,000 Revenue bonds 4,597,058 5,254.467 304,654,619 157,689.434 309,251.677 162,943.901 Other debt 20829801 23314651 10694249 19866265 31 524 050 43200916 Total debt $ 25.776 859 $ 30.279.118 $ 3 15 348 868 $ 177.555.699 $ 341 125727 $ 207 834 817 I I I Millions I 350 300 250 200 150 100 50 I 1!12002 .2001 I I G.O. Bonds Revenue Bonds Other Debt I I The Government's total debt of $341,125,727 increased by $133,290,910 during the past year, primarily due to issuance of 2002 Water and sewer revenue bonds. I As mentioned in the financial highlights section of this document, the Government has maintained a A+ bond rating from Standard and Poor's Rating Group and aA2 rating from Moody's Investor Service. This bond rating is a clear indication of the sound financial condition of the Government. These high ratings are a primary factor in keeping interest costs low on the Government's outstanding debt. - 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 $392 million. Additional information regarding the Government's long-term debt can be found in note 3 beginning on page 59 of this audited tinancial report. 12 I Economic Factors and Next Year's Budgets and Rates I The following key economic indicators reflect the growth and prosperity of the Government. I · The Government has an unemployment rate of 5%, slightly higher than the state average of 4%. · The ad valorem tax rate increased from $7.392 per $1000 to $8.978 per $1000 of valuation. I Budget Highlights for the Fiscal Year Ending December 31, 2003 I Governmental Activities: The Ad Valorem Taxes are projected to remain at the 2003 level. The 2003 tax digest has shown a slight decrease of less than 1 percent primarily due to account corrections. Other taxes are expected to increase between 1 to 3 percent with no significant increase in sales tax revenues. The FY 2003 budget for the general fund is expected to be slightly below the 2002 level due to decrease in the property tax revenues and some modest reductions in expenditures. The general economic climate for the city government for 2003 is expected to be stable with an estimated 5 percent of fund balance appropriated for budgeted expenditures. The undesignated fund balance should remain at 25 percent in reserves. I I Business - type Activities: Overall Water and sewer revenue is projected to increase 11 percent due to the $149 million new debt issued in 2002 and the required rate increase to retire this debt. Airport revenue is projected to increase based on the 2002 landing fees increase of 12 percent. I Requestsfor 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. I I I I I I . - - . 13 - - I I I I I I I I I I I I I I I I I I I BASIC FINANCIAL STATEMENTS 14 I ~ ~~ 15 I I I I I I I I I I I I I GOVERNMENT-WIDE FINANCIAL STATEMENTS 16 17 I I Augusta, Georgia Statement of Net Assets December 31, 2002 I Business Primary Department Governmental Type Government of I Activities Activities Total Health Assets Cash and temporary investments $ 164,213,392 $ 45,320,415 $ 209,533,807 $ 1,229,392 I Receivables (net of allowance for doubtful accounts) Taxes 8,875,257 1,726,476 10,601,733 Accounts 11,441,594 7,574,547 19,016,141 106,521 Interest 197,348 1,367,127 1,564,475 I Notes 3,379,702 3,379,702 Intergovernmental 172,058 263,630 435,688 832,163 Prepaid expenses 132,890 132,890 I Inventory 90,121 1,830,168 1,920,289 Restricted cash and investments 14,510,434 209,199,133 223,709,567 Due from fiduciary funds 3,797,293 232,921 4,030,214 Internal balances 4,413,411 (4,413,411) I Capital assets Land and construction in progress 94,500,637 46,964,472 141,465,109 1,287,797 Other capital assets, net of accumulated depreciation 111,296,329 205,514,678 316,811,007 5,487,887 I Other assets 4,309,287 4,309,287 Total assets 417,020,466 519,889,443 936,909,909 8,943,760 I Liabilities Accounts payable 5,499,443 6,645,996 12,145,439 868,785 Accrued interest 361,910 4,005,529 4,367,439 I Accrued salaries and vacation 2,778,361 439,504 3,217,865 Other accrued liabilities 2,297,959 165,771 2,463,730 Unearned revenue 9,621,863 9,621,863 I Liabilities due in less than one year 7,588,047 3,639,796 11,227,843 Liabilities due in greater than one year 22,466,745 323,298,300 345,765,045 463,097 Total liabilities 50,614,328 338,194,896 388,809,224 1,331,882 I Net assets Invested in capital assets net of related debt 195,964,885 133,280,493 329,245,378 6,775,684 Restricted 122,169,587 12,967,555 135,137,142 969,964 I Unrestricted 48,271,666 35,446,499 83,718,165 (133,770) Total net assets $ 366,406,138 $ 181,694,547 $ 548,100,685 $ 7,611,878 I I I - . - The notes to the financial statements are an integral part of this statement. - 18 . Augusta, Georgia Statement of Activities Year Ended December 31, 2002 Program Revenues Operating Capital Charges for Grants and Grants and Fu n ctio n slProl!ra ms Expenses Services Contributions Contributions Primary government: Governmental activities: General government $ 27,584,914 $ 13,439,116 $ 240,901 $ Judicial 11,327,309 9,375,827 570,115 Public safety 61,423,703 5,342,832 306,312 45,775 Public works 13,424,146 716,777 149,743 Health and welfare 2,249,014 26,684 7,500 Culture and recreation 12,209,832 762,326 300,871 Housing and development 10,387,097 5,188,594 Interest on long-term debt 815,079 Total governmental activities 139,421,094 29,663,562 1,575,442 5,234,369 Business-type activities: Waste management 4,419,230 5,465,843 36,411 2,136,506 Water and sewer 45,747,805 42,025,436 7,502 Airports 10,573,908 9,909,040 9,636 Municipal golf course 687,464 699,745 Transit 3,800,766 754,118 886,196 Newman Tennis Center 284,900 213,070 15,200 Garbage Collection 9,337,793 6,331,393 Riverwalk 229,674 82,882 Total business-type activities 75,081,540 65,481,527 947,443 2,144,008 Total primary government $ 214,502,634 $ 95,145,089 $ 2,522,885 $ 7,378,377 Component unit: Richmond County Department of Health $ 10,585,428 $ 1,150,909 $ 7,345,869 $ General revenues: Taxes Taxes, other than property Unrestricted governmental revenues Revenues from use of money and property Gain on sale of assets Miscellaneous Transfers Total general revenues and transfers 'J Change in net assets Net assets - beginning Net assets - ending The notes to the financial statements are an integral part of this statement. 19 I I I Net (Expense) Revenue and Changes in Net Assets Primary Government Department Governmental Business-type of I Activities Activities Total Health I $ (13,904,897) $ $ ( 13,904,897) $ (1,381,367) (1,381,367) (55,728,784) (55,728,784) I (12,557,626) (12,557,626) (2,214,830) (2,214,830) (11,146,635) (11,146,635) (5,198,503) (5,198,503) I (815,079) (815,079) (102,947,721) (102,947,721) I 3,219,530 3,219,530 (3,714,867) (3,714,867) (655,232) (655,232) I 12,281 12,281 (2,160,452) (2,160,452) (56,630) (56,630) (3,006,400) (3,006,400) I (146,792) (146,792) (6,508,562) (6,508,562) (102,947,721 ) (6,508,562) (109,456,283) I I (2,088,650) 39,479,186 39,479,186 I 91,124,868 91,124,868 984,944 984,944 1,732,574 3,762,503 8,577,606 12,340,109 I 246,644 246,644 433,812 1,080,633 1,514,445 184,811 (5,642,170) 5,642,170 130,143,143 15,547,053 145,690,196 1,917,385 I 27,195,422 9,038,491 36,233,913 (171,265) I 339,210,716 172,656,056 511,866,772 7,783,143 $ 366,406,138 $ 181,694,547 $ 548,100,685 $ 7,611,878 I I I 20 21 I I I I I I I I I I I I I I I I - FUND FINANCIAL STATEMENTS - - - - 22 Augusta, Georgia Balance Sheet Governmental Funds December 31, 2002 Fire Special Sales General Protection Tax Phase III Assets Cash and temporary investments $ 24,617,42] $ 9,53],88] $ 55,405,237 Receivables (net of allowance for doubtful accounts) Taxes 4,874,092 627,865 Accounts 3,637,532 43,] 53 Interest 79,206 Note ]00,000 Intergovernmental ]6,805 Prepaid expenses 57,890 75,000 Inventory 90,121 Restricted assets Reserve account Sinking fund account Perpetual care Due from other funds 8,928,804 191,396 Total assets $ 42,322,665 $ 10,351,142 $ 55,602,596 Liabilities and fund balances Liabilities: Accounts payable $ 1,948,422 $ 56,624 $ 687,968 Accrued interest Due to other funds 200,000 Accrued salaries and vacation 2,076,834 488,886 Other accrued liabilities 2,230,997 Deferred revenue 4,634,380 8,205,]82 Total liabilities ] 1,090,633 8,750,692 687,968 Fund balances: Reserved for: Encumbrances 834,188 355,039 8,027,83 ] Special sales tax projects 46,886,797 Special purposes Inventory/prepaid expenses ] 42,687 Debt service Designated for: Capital improvements Risk benefit 4,705,061 250,000 Unreserved - undesignated 25,550,096 995,4] I Unreserved, reported in nonmajor: Special revenue Capital projects Permanent Total fund balances 31,232,032 1,600,450 54,914,628 Total liabilities and fund balances $ 42,322,665 $ 10,351,142 $ 55,602,596 The notes to the financial statements are an integral part of this statement. 23 I I I Other Total I Special Sales Governmental Governmental Tax Phase IV Funds Funds I $ 43,120,666 $ 30,199,239 $ 162,874,444 3,373,300 8,875,257 I 2,487,191 992,182 7,160,058 118,142 197,348 562,005 662,005 155,253 172,058 I 132,890 90,121 I 1,428,285 1,428,285 578,922 578,922 338,625 338,625 I 1,041,094 10,161,294 $ 45,607,857 $ 38,787,047 $ 192,671,307 . $ 1,059,379 $ 821,985 $ 4,574,378 - 152,809 152,809 I 1,226,261 1,426,261 50,361 130,628 2,746,709 - 63,952 2,294,949 3,339,307 16,178,869 1,109,740 5,734,942 27,373,975 1,221,714 10,438,772 44,498,117 18,371,099 109,756,013 942,256 942,256 142,687 2,689,284 2,689,284 244,833 244,833 4,955,061 26,545,507 9,319,754 9,319,754 263,937 263,937 (772) (772) 44,498,117 33,052,105 165,297,332 $ 45,607,857 $ 38,787,047 $ 192,67] ,307 . . 24 25 I Augusta, Georgia I Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets December 31, 2002 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 fInancial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 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. I Net assets of governmental activities I I I I I I I The notes to the financial statements are an integral part of this statement. I 26 I $ 165,297,332 205,723,332 9,274,703 429,886 (14,319,115) $ 366,406,138 !!! Augusta, Georgia .. Statement of Revenues, Expenditures and Changes in Fund Balances ~ Governmental Funds .. .- u;;; Year Ended December 31,2002 1= ~~ iIiiiii Fire Special Sales General Protection Tax Phase III -- - Revenues - Taxes - property $ 23,452,043 $ 2,941,810 $ Taxes - other than property 40,951,853 7,089,803 -- Licenses and penn its 2,172,307 Use of money and property 1,744,293 104,676 942,843 Charges for current services 14,315,448 11,450 1,300 Fines and forfeitures 7,648,604 Intergovernmental 1,519,910 142,465 Contributions and donations 87 Other 138,723 24,560 45,702 Total revenues 91,943,268 10,172,299 1,132,310 Expenditures Current: General government 20,519,887 1,133,756 280,615 Judicial 9,541,324 Public safety 41,648,362 15,928,544 Public works 5,784,919 1,460,211 Health and welfare 2,041,700 Culture and recreation 10,467,424 208,334 Housing and development 1,969,401 Capital outlay 1,890,752 8,482 2,966,402 Debt service 124,833 Total expenditures 93,988,602 17,070,782 4,915,562 Excess (deficiency) of revenues over (under) expenditures (2,045,334) (6,898,483) (3,783,252) Other financing sources (uses) Transfers in 3,120,299 6,512,306 Transfers (out) (537,428) Capital lease issuance 1,278,319 Total other fmancing sources (uses) 3,861,190 6,512,306 Net change in fund balances 1,815,856 (386,177) (3,783,252) Fund balance - beginning 29,416,176 1,986,627 58,697,880 Prior period adjustment Fund balance - beginning as restated 29,416,176 1,986,627 58,697,880 Fund balance - ending $ 31,232,032 $ I ,600,450 $ 54,914,628 The notes to the financial statements are an integral part of this statement. 27 28 29 I I Augusta, Georgia I Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31,2002 I Amounts reported for governmental activities in the statement of activities are different because: I Net change in fund balances - total governmental funds I Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. I Revenues in the statement of activities that do not provide current fmancial resources are not reported as revenues in the funds. I Governmental funds report collections of long-tenn 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 I The issuance oflong-tenn debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal oflong-tenn debt consumes the current financial resources of governmental funds. Neither transaction, however has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is fust 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-tenn debt and related accounts. I I I The net revenue of certain activities of the internal service fund is reported with governmental activities. Change in net assets of governmental activities . . - - - The notes to the financial statements are an integral part of theis statement. 30 $ 17,972,477 2,504,126 2,382,441 (123,562) 4,306,791 268,962 $ 27,311,235 Augusta, Georgia General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2002 Variance with Budgeted Amounts Final Budget - Actual Positive 2001 Revenues Original Final Amounts (Negative) Actual Taxes - property $ 39,261,132 $ 24,096,612 $ 23,452,043 $ (644,569) $ 21,018,235 Taxes - other than property 24,076,000 39,601,220 40,951,853 1,350,633 41,793,042 Licenses and permits 1,989,500 1,989,500 2,172,307 182,807 1,304,555 Use of money and property 2,119,270 2,469,518 1,744,293 (725,225) 2,964,880 Charges for current services 14,567,994 14,568,844 14,315,448 (253,396) 14,433,605 Fines and forfeitures 7,619,500 8,209,380 7,648,604 (560,776) 7,189,355 Intergovernmental 1,313,770 2,249,504 1,519,910 (729,594) 2,719,523 Contributions and donations 1,825 1,825 87 (1,738) 5,781 Other 10,810 60,810 138,723 77,913 (11,655) Total revenues 90,959,801 93,247,213 91,943,268 (1,303,945) 91,417,321 Expenditures Current: General government 24,366,622 21,756,049 20,519,887 1,236,162 21,029,600 Judicial 9,409,954 9,935,958 9,541,324 394,634 8,956,441 Public safety 40,487,024 43,134,925 41,648,362 1,486,563 38,628,585 Public works 6,635, I 06 7,222,242 5,784,919 1,437,323 6,052,948 Health and welfare 1,509,257 2,136,868 2,041,700 95,168 2,716,759 Culture and recreation 10,563,397 10,714,308 10,467,424 246,884 9,923,431 Housing and development 2,014,678 2,034,589 1,969,401 65,188 858,958 Capital outlay 1,177,642 1,890,752 (713,110) 4,759,424 Debt service 127,279 127,279 124,833 2,446 1,614,740 Total expenditures 95,113,317 98,239,860 93,988,602 4,251,258 94,540,886 Excess (deficiency) of revenues over (under) expenditures (4,153,516) (4,992,647) (2,045,334) 2,947,313 (3,123,565) Other financing sources (uses) Transfers in 5,292,760 5,162,647 3,120,299 (2,042,348) 3,418,544 Transfers (out) (1,139,244) (170,000) (537,428) (367,428) (225,526) Capital lease issuance 1,278,319 1,278,319 3,386,910 Total other financing sources (uses) 4,153,516 4,992,647 3,861,190 (1,]31,457) 6,579,928 Net change in fund balances $ $ 1,815,856 $ 1,815,856 3,456,363 Fund balance - beginning 29,416,176 25,959,813 Fund balance - ending $ 31,232,032 $ 29,416,]76 31 I I Augusta, Georgia Fire Protection I Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2002 I Variance with Budgeted Amounts Final Budget - I Revenues Actual Positive 2001 Original Final Amounts (Negative) Actual I Taxes - property $ 3,436,537 $ 3,436,537 $ 2,941,810 $ (494,727) $ 1,578,626 Taxes - other than property 7,100,000 7,100,000 7,089,803 (10,197) 8,192,678 Use of money and property 232,000 232,000 104,676 (127,324) 299,214 I Charges for current services 11,450 11,450 2,072 Contributions and donations 22,450 Other 50,000 50,000 24,560 (25,440) 5,550 Total revenues 10,818,537 10,818,537 10,172,299 (646,238) 10,100,590 IExpenditures Current: I General government 1,189,495 583,557 1,133,756 (550,199) 902,237 Public safety 15,634,542 16,598,396 15,928,544 669,852 14,063,816 Health and welfare 169 - Capital outlay 77,395 8,482 68,913 984,813 . Total expenditures 16,824,037 17,259,348 17,070,782 188,566 15,951,035 -Excess (deficiency) of revenues ... over (under) expenditures (6,005,500) (6,440,811) (6,898,483) (457,672) (5,850,445) . =Otht;;1 financing sources (uses) Transfers in 6,005,500 6,531,311 6,512,306 (19,005) 5,586,219 - Transfers (out) (90,500) 90,500 - Capital lease issuance 976,810 - Total other financing sources (uses) 6,005,500 6,440,811 6,512,306 71,495 6,563,029 Net change in fund balances $ $ (386,177) $ (386,177) 712,584 -Fund balance - beginning 1,986,627 1,274,043 -a<und balance - ending $ 1,600,450 $ 1,986,627 32 Augusta, Georgia Statement of Net Assets Proprietary Funds December 31, 2002 Enterprise Funds Water Augusta Other Internal and Sewer Regional Enterprise Service System Airport Funds Total Funds Assets Current assets Cash and temporary investments $ 23,872,141 $ 12,812,150 $ 8,636,124 $ 45,320,415 $ 1,338,948 Receivables (net of allowance for doubtful accounts) Taxes 1,726,476 1,726,476 Accounts 5,261,247 1,245,841 1,067,459 7,574,547 4,281,536 Interest 1,365,4 79 1,648 1,367,127 Intergovernmental 171,964 91,666 263,630 Inventory 1,451,762 173,971 204,435 1,830,168 Due from other funds 232,921 232,921 Total current assets 31,950,629 14,403,926 11,960,729 58,315,284 5,620,484 Noncurrent assets Restricted cash and investments 209,117,766 81,367 209,199,133 12,164,602 Deferred bond issuance costs 4,309,287 4,309,287 Capital assets, net 217,154,532 23,961,113 11,363,505 252,479,150 73,634 Total noncurrent assets 430,581,585 24,042,480 11,363,505 465,987,570 12,238,236 Total assets $ 462,532,214 $ 38,446,406 $ 23,324,234 $ 524,302,854 $ 17,858,720 Liabilities and net assets Current liabilities Accounts payable $ 4,836,952 $ 943,770 $ 865,274 $ 6,645,996 $ 925,065 Accrued interest 4,004,586 943 4,005,529 Due to other funds 109,236 1,904,260 2,399,915 4,413,411 524,329 Accrued salaries and vacation 573,090 176,894 256,248 1,006,232 31,652 Other accrued liabilities 165,771 165,771 3,010 Current portion of notes payable 412,199 412,199 Current portion of capital leases payable 749,834 749,834 Current portion of revenue bonds payable 2,175,000 2,175,000 Total current liabilities 12,860,897 3,025,867 3,687,208 19,573,972 1,484,056 Noncurrent liabilities Closure/postclosure accrual 11,022,500 11,022,500 Revenue bonds payable 302,479,619 302,479,619 15,944,778 Notes payable 9,271,168 9,271,168 Capital leases 261,048 261,048 Total noncurrent liabilities 312,011,835 11,022,500 323,034,335 15,944,778 Total liabilities 324,872,732 3,025,867 14,709,708 342,608,307 17,428,834 Net assets Invested in capital assets, net of related debt 97,955,875 23,961,113 11,363,505 133,280,493 73,634 Restricted 12,967,555 12,967,555 Unrestricted 26,736,052 11,459,426 (2,748,979) 35,446,499 356,252 Total net assets 137,659,482 35,420,539 8,614,526 181,694,547 429,886 Total liabilities and net assets $ 462,532,214 $ 38,446,406 $ 23,324,234 $ 524,302,854 $ 17,858,720 The notes to the financial statements are an integral part of this statement. 33 I Augusta, Georgia I Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds I Year Ended December 31,2002 I Enterprise Funds Water Augusta Other Internal and Sewer Regional Enterprise Service System Airport Funds Total Funds I Operating revenues Charges and fees $ 42,025,436 $ 9,819,535 $ 13,636,556 $ 65,481,527 $ 18,370,636 Total operating revenues 42,025,436 9,819,535 13,636,556 65,481,527 18,370,636 I Operating expenses Personal services and employee benefIts 7,429,630 2,292,680 3,658,395 13,380,705 317,358 I Purchased/contracted services 7,458,582 1,476,886 10,430,703 19,366,171 541,892 Supplies 3,584,098 4,053,743 978,745 8,616,586 251,985 Repairs and maintenance 86,764 1,114,956 510,678 1,712,398 3,803,015 I, Interfund/interdepartmental charges 3,051,924 155,554 641,391 3,848,869 256,189 Other costs 255,973 255,973 135,780 Depreciation 10,352,576 1,040,291 1,666,075 13,058,942 22,519 I Closure/postc1osure accrual 900,760 900,760 Risk benefIt charges 550,000 550,000 801,091 Insurance 12,468,156 Total operating expenses 32,769,547 10,134,110 18,786,747 61,690,404 18,597,985 I Operating income (loss) 9,255,889 (314,575) (5,150,191) 3,791,123 (227,349) I Nonoperating revenue (expense) 7,922,609 543,844 111,153 8,577,606 328,608 . Interest revenue Sale of property 53,152 30,337 163,155 246,644 66,727 - Other revenue (expense) 140,021 877,403 63,209 1,080,633 (9,521 ) . Intergovernmental 2, I 09,556 981,895 3,091,451 - Interest expense (12,978,258) (218,297) (194,581) (13,391,136) (756,892) Total nonoperating revenue (expense) (4,862,476) 3,342,843 1,124,831 (394,802) (371,078) .. Income (loss) before transfers 4,393,413 3,028,268 (4,025,360) 3,396,321 (598,427) Transfers in 5,692,170 5,692,170 751,576 Transfers out (50,000) (50,000) Change in net assets 4,393,413 2,978,268 1,666,810 9,038,491 153,149 Total net assets - beginning 133,266,069 34,50 I ,533 6,947,716 174,715,318 276,737 Prior period adjustment (2,059,262) (2,059,262) Total net assets - beginning, as restated 133,266,069 32,442,271 6,947,716 172,656,056 276,737 Total net assets - ending $ 137,659,482 $ 35,420,539 $ 8,614,526 $ 181,694,547 $ 429,886 The notes to the financial statements are an integral part of this statement. 34 Augusta, Georgia Statement of Cash Flows Proprietary Funds Year Ended December 31,2002 Enterprise Funds Water Augusta Other Internal & Sewer Regional Enterprise Service System Airport Funds Total Funds Operating activities Cash received from customers $ 41,009,626 $ lO,055,371 $ 11,081,335 $ 62,146,332 $ Cash received from contributions 20,233,961 Cash paid to suppliers (12,846,932) (9,818,297) (10,517,414) (33,182,643) (17,554,33] ) Cash paid to employees (7,182,367) (3,616,404) (10,798,771 ) (309,993) Cash paid for interfund services used (6,758,] 78) (831,262) (7,589,440) Net cash provided by (used in) operating activities 14,222,149 237,074 (3,883,745) lO,575,478 2,369,637 Noncapital financing activities Transfers in 5,692,170 5,692,170 751,576 Transfers out (50,000) (50,000) Operating grants 987,637 987,637 Interest expense on operating capital (25,268) (25,268) Other revenue (expense) 135,860 877,403 \,0\3,263 Net cash provided (used) by noncapital financing activities 135,860 827,403 6,654,539 7,617,802 751,576 Capital and related financing activities Proceeds from grants 787,307 2,720,897 \71,334 3,679,538 (\7,800) Proceeds from sale of property 53,152 30,337 135,935 219,424 66,727 Proceeds from issuing bonds 148,172,480 148,172,480 I nterest on bond funds 7,593,894 7,593,894 Other miscellaneous income 90,429 90,429 2\,462 Purchase of capital assets (32,37\ ,235) (2,790,320) (417,157) (35,578,712) Bond issuance costs paid (2,025,010) (2,025,0 lO) Interest on operating capital (74,298) (74,298) (86,372) Interest paid on capital debt (lO,796,185) (219,561 ) (95,015) (11,110,761) (625,605) Principal paid on capital debt (11,429,323) (85,000) (682,790) (12,197,113) Other miscellaneous transactions (30,983) Net cash provided (used) by capital and related financing activities 99,985,080 (343,647) (871,562) 98,769,871 (672,571) Investing activities Interest received (1,030,866) 443,415 113,638 (473,813) 328,608 Net cash provided (used) in investing activities (I,030,866) 443,415 113,638 (473,813) 328,608 Net increase in cash and cash eq u iva lents/investments 113,312,223 1,164,245 2,012,870 116,489,338 2,777,250 Cash and cash equivalents/investments Beginning of year 119,677,684 11,729,272 6,623,254 138,030,2lO 10,726,300 End of year $ 232,989,907 $ 12,893,517 $ 8,636,124 $ 254,519,548 $ 13,503,550 The notes to the financial statements are an integral part of this statement. 35 I Augusta, Georgia Statement of Cash Flows Proprietary Funds Year Ended December 31, 2002 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) $ 9,255,889 $ (314,575) $ (5,150,191 ) $ 3,791,123 $ (227,349) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 10,352,576 1,040,291 1,666,075 13,058,942 22,519 Closure/post closure costs 900,760 900,760 Change in assets and liabilities Accounts receivable (1,155,831) 202,481 (410,020) (1,363,370) 2,660,648 Due from other funds 479,167 (118,130) 361,037 1,031,374 Inventory (224,539) (55,175) (1,806) (281,520) Taxes receivable (1,726,476) (1,726,476) Accounts payable 999,958 (496,108) 682,583 1,186,433 (463,653) Accrued salaries and vacation 104,505 10,189 41,991 156,685 7,365 Other accrued liabilites 29,753 29,753 3,010 Due to other funds (5,660,409) (629,196) 416,482 (5,873,123) (664,277) Unearned revenue (214,766) (214,766) Claims payable 550,000 550,000 Total adjustments 4,966,260 551,649 1,266,446 6,784,355 2,596,986 Net cash provided by (used in) $ 14,222,149 $ 237,074 $ (3,883,745) $ 10,575,478 $ 2,369,637 I I I I I I I I I I I I . . - - . The notes to the financial statements are an integral part of this statement 36 Augusta, Georgia Statement of Fiduciary Net Assets Fiduciary Funds December 31,2002 Private-purpose Pension Trust Fund Agency Trust Funds Joseph R Lamar Funds Assets Cash and cash equivalents $ 3,624,781 $ 58 $ 13,120,751 Investments 79,324,344 Receivables (net of allowance for doubtful accounts) Taxes 31,508,116 Interest 680,012 Restricted assets Perpetual care 5,000 Due from other funds 200,000 Total assets $ 83,829,137 $ 5,058 $ 44,628,867 Liabilities Due to others $ $ $ 9,220,107 Due to other funds 329,570 3,900,644 Other accrued liabilities 945 Uncollected taxes 31,508,116 Total liabilities 330,515 $ 44,628,867 Net assets Reserved for employees' retirement benefits $ 83,498,622 $ 5,058 The notes to the financial statements are an integral part of this statement. 37 I I Augusta, Georgia Statement of Changes in Fiduciary Net Assets Fiduciary Funds Year Ended December 31,2002 I I I Private-purpose Pension Trust Fund Trust Funds Joseph R. Lamar Additions Contributions $ 2,263,078 $ Net investment income (loss) (6,254,109) 306 Transfers in 1,197,481 175 Total additions (2,793,550) 481 Deductions Other 175 Administration 586,659 Benefit payments 5,704,156 Refunds 238,603 Transfers out 175 Total deductions 6,529,418 350 Change in net assets (9,322,968) 131 Total net assets - beginning 92,821,590 4,927 Total net assets - ending $ 83,498,622 $ 5;058 I I I I I I I I I I I IIil - - - . The notes to the financial statements are an integral part of this statement. 38 - 39 I I I I I I I I I I I Notes to Financial Statements . . . - - 40 4\ I I I I I 'I I I, I I I I I I I I . . I ... 'I . AUGUSTA, GEORGIA Notes to Financial Statements Year Ended December 31, 2002 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 th~ boundary between Georgia and South Carolina. Augusta is on the fall line and has a landscape dotted with foothills which descend to the coastal plain. Augusta is the head of the navigation on the Savannah River and is 135 miles east of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles southwest of Columbia, South Carolina. Augusta is the trade center for 13 counties in Georgia and five in South Carolina, a section known as the Central Savannah River Area. . The Government was created by legislative act in the State of Georgia in 1995 from the unification of the two governments, the City of Augusta, Georgia and Richmond County, Georgia. On June 20, 1995, the citizens of Richmond County and the City of Augusta voted to consolidate into one government named Augusta, Georgia. The officials for the new government were elected and, based on the charter, took office on January 1, 1996. The unified government combined all functions and began financial operations January I, 1996. The Government is governed by a full-time Mayor, with a tenn of four years, and a ten member Commission, who serve on a part-time basis and are elected to staggered tenns of four years. The Mayor and Commission appoint an Administrator who serves as a full-time administrative officer and is responsible for the daily operations of the Government. The Government's fmancial statements include the accounts of all Augusta and Richmond County operations. The criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100 ofGASB's Codification o/Governmental Accounting and Financial Reporting Standards, include whether: · the organization is legally separate (can sue and be sued in their own name) . the Government holds the corporate powers of the organization . the Government appoints a voting majority of the organization's board · the Government is able to impose its will on the organization · the organization has the potential to impose a fmancial benefitlburden on the County . there is fiscal dependency by the organization on the Government Utilizing the above criteria, the following agencies and commissions were included using the blending method in the financial statements: Augusta Port Authority, Downtown Development Authority, and Richmond County Public Facilities, Inc. (see Note 40). Complete fmancial statements for the individual component units may be obtained at the following address: Augusta, Georgia, Finance Department, 501 Greene Street, Augusta, Georgia 3090 I The Government's other component unit, the Department of Health, is included in a separate column in the accompanying government-wide financial statements. This unit is reported in a separate column to emphasize that it is legally separate from the Government. Separate financial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901 Richmond County Department of Health - A voting majority of the board is appointed by the Government. 42 AUGUST A, GEORGIA n Notes to Financial Statements - Continued ~ @II Year Ended December 31,2002 Note 1 - Summary of significant accounting policies (Continued) B. Basis of Presentation Government-wide statements: The statement of net assets and the statement of activities display information about the primary government. These statements include the 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 fmanced 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. 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. 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. 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 (I %) sales tax currently collected from 1996 through 2000. The primary revenue sources are sales taxes, and the primary expenditures are capital outlay projects, primarily for public works, recreation and outside agency projects. Special Sales Tax Phase IV Fund - This fund was established for expenditures specifically budgeted from revenues from the one cent sales tax (Phase IV) collected from the years 200 I - 2005 to be used primarily for public works, recreation and outside agency projects. 43 I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 1 - Summary of significant accounting policies (Continued) The Government reports the following nonrnajor governmental funds: I I Special Revenue Funds Urban Services District Fund - This fund accounts for revenue primarily from ad valorem taxes from areas within the former city limits and expenditures related to governmental services such as "Main Street", "Urban Street Lights", and "Sanitation". 1\ Emergency Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the emergency telephone response system. I Capital Outlay Fund - This fund accounts for the disbursement of revenues for all capital expenditures in General Fund departments. Capital expenditures are defmed as any non-disposable item over $500 which includes vehicles, office and computer equipment, communications equipment, building renovations and office furniture. I, Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriff's Department and Jail. Occupational Tax Fund - This fund accounts for the receipt and disbursement of tax revenues restricted for fire protection services in the unincorporated area only. I Special Assessment Fund - This fund accounts for the receipt and disbursement of street light assessment taxes for the installation of street lights in the Government. I 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. I Housing and Neighborhood Development Fund - This fund accounts for the financing and construction of various community development projects from grants received from the U.S. Department of Housing and Urban Development. I '.- Urban Development Action Grant (VDAG) Fund - This fund accounts for loan transactions in relation to urban development action grants. Repayments of initial grant revenue loaned to qualified recipients are restricted to additional financing to qualified applicants. I Downtown Development Authority Fund - This fund accounts for funding it receives from the County and from special tax on downtown merchants. IIIIiiiI. . State Capital Grants Fund - This fund accounts for receipt and expenditure of the State Capital Grant, which is restricted for capital expenditures only. Law Library Fund - This fund accounts for revenue and expenditures of the Law Library. 5% Crime Victim's Assistance Fund - This fund accounts for the 5% surcharge on certain fines with the proceeds used for a victim's assistance program. Supplemental Juvenile Service Fund - This fund accounts for supervisory fees collected on juvenile cases. Building Inspection Fund - This fund accounts for building inspection revenues and expenditures. 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. 44 AUGUST A, GEORGIA I - Notes to Financial Statements - Continued Year Ended December 31,2002 ...... Note 1 - Summary of significant accounting policies (Continued) Wireless Phase Fund - This fund accounts for activities associated with 911 charges for wireless service. Community Greenspace Fund - This fund is used to acquire real property for the preservation of greenspace, pursuant to the Georgia Greenspace Program as established in OCGA 36-22 et seq. Perpetual Care I Fund - This fund accounts for monies collected from sale of perpetual care contracts at Government-owned cemeteries after October I, 1970, as well as receipt of investment earnings on all perpetual care investments and payment of cemetery maintenance expenditures. 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 fonner 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 fmancing and construction of various construction and road improvements, drainage, jail improvements, and museums. Financing is to be provided by receipts from a 1991 special one percent local option sales tax referendum. Permanent Fund Perpetual care II Fund - This fund accounts for the principal originally donated for the sale of perpetual care contracts at government-owned cemeteries after October I, 1970. The principal must be maintained intact and invested. The Government reports the following major enterprise funds: Water and Sewer System Fund - This fund is used to account for the activity of providing water and sewer services to the residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, operations, maintenance, financing and related debt service, and billing and collection. Augusta Regional Airport at Bush Field Fund - This fund accounts for the operations of Augusta Regional Airport at Bush Field, the only airport within the County from which service from the major airlines is available. 45 Ii AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 1 - Summary of significant accounting policies (Continued) The Government reports the following nonmajor enterprise funds: 'I I, Waste Management Fund - This fund accounts for the provision 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. Municipal Golf Course Fund - This fund accounts for the operation of the Municipal Golf Course, an IS-hole golf course located within the city limits. I' Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus service within Richmond and Columbia counties. I Daniel Field Airport Fund - This fund accounts for revenue and expenses related to Daniel Field Airport. I', Newman Tennis Center Fund - This fund accounts for receipt and expenses related to the operations at Newman Tennis Center. I Garbage Collection Fund - This fund accounts for receipt and expenses related to the Government's garbage collection contract. Riverwalk Fund - This fund accounts for receipt and expenses related to the Government's Riverwalk. I I, Additionally, the Government reports the following fund types: 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: ] 945 Pension Trust Fund, 1977 Pension Trust Fund, and the General Retirement Fund. I Private Purpose Trust Fund - The Government has a private-purpose trust fund that accounts for resources legally held in trust to fmance 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. I Agency Funds - Agency funds are custodial in nature and do not involve the measurement of operating results. Agency funds are used to account for assets the Government holds on behalf of others. The Government maintains the following agency funds: Tax Commissioner, which accounts for tax billings, collections and remittances made by the Tax Commissioner on behalf of the County and other governmental agencies; Probate judge, which accounts for the receipt and disbursement of licenses and other fees collected by the Probate Judge; .Sheriff's Department, which accounts for the receipt and disbursement of funds collected by the department from individuals posting bond; Civil Court, which accounts for the receipt and disbursement of court-ordered 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. . . - 46 AUGUSTA, GEORGIA II == Notes to Financial Statements - Continued ~~ Year Ended December 31,2002 Note 1 - Summary of significant accounting policies (Continued) C. Measurement Focus and Basis of Accounting Government-wide, Proprietary and Fiduciary Fund Financial Statements - The government-wide, proprietary fund and fiduciary 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 fmancial 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 fmancial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. 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. The Government has implemented GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments and related standards. These new standards provide for significant changes in terminology and presentation and for the inclusion of Management's Discussion and Analysis are required supplementary information. '. 47 I~ I I I: I I I I'. I I II I' I I Ii I, I I I' AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2002 Note 1 - Summary of significant accounting policies (Continued) D. Budgets and budgetary accounting The Government generally follows these procedures In establishing the budgetary data reflected in the fmancial statements: 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). Budget information for expenditures represents the operating budget (as amended) as approved by the Augusta- Richmond County Commission. E. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration for the General Fund, Special Revenue Funds, Debt Service and Capital Projects Funds. Encumbrances are recorded when purchase orders are issued but are not considered expenditures until liabilities for payments are incurred. Encumbrances for outstanding purchase orders do not lapse at year end. Therefore, they are reported as reservations of fund balance. F. Cash and cash equivalents The Government maintains a cash and investment pool in which the General Fund and all funds share. Each fund's portion of the pool is displayed on its respective balance sheet as cash and cash equivalents and includes non-pooled cash and investments separately held. Funds which have an excess of outstanding checks over bank balance have had these balances reclassified as a due to the General Fund for purposes of financial statement presentation. Interest income is allocated to each fund monthly based on its average monthly balance. For the purposes of fmancial statement presentation, the Government considers all highly liquid investments with an original maturity of three months or less, or with insignificant early withdrawal penalties, to be cash equivalents. Exceptions include the Government's pension plans which classify only cash as cash equivalents in order to appropriately report investment activity. Cash equivalents include amounts in certificates of deposit, repurchase agreements, and U.S. Treasury bills, and are stated at cost which approximates market. All deposits are stated at cost plus accrued interest, which reasonably estimates fair value. The State statutes authorize the Government to invest in obligations of the United States government and agencies thereof, general obligations of the State of Georgia or any of its political subdivisions, or banks and savings and loan associations to the extent that they are secured by the Federal Deposit Insurance Corporation. 48 AUGUST A, GEORGIA I Notes to Financial Statements - Continued Year Ended December 31, 2002 I Note 1 - Summary of significant accounting policies (Continued) I 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 cost. ~ - H. Inventories and prepaid expenses Inventories in the governmental funds are valued at cost using the frrst-in, frrst-out method. Inventories in the proprietary funds are valued at the lower of cost (frrst-in, frrst-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". .. - !!!! - iii - 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, 200 I, consist of the streets network that were acquired or that received substantial improvements subsequent to January 1, 1980. The streets network is reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Depreciation is computed using the straight-line method. A summary of the estimated useful lives is as follows: Vehicles Furniture and fixtures Machinery and equipment Water and Sewer systems Buildings and improvements Infrastructure 3 to S years 3 to S years 5 to 10 years 10 to 50 years 10 to 50 years 25 to 75 years 49 I I I I I I I I I I I I I I I I I - - AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 1 - Summary of significant accounting policies (Continued) M. Compensated absences The. vacation policy of the City provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Government's government-wide financial statements and proprietary fund fmancial statements, an expense and a liability for compensated absences and the salary-related payments are recorded as leave is earned. The Government has assumed a 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 fmancial statements. No accrual has been established for accumulated sick leave of employees since it is the Government's policy to record the cost of sick leave only when it is used. N. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires .management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Note 2 - Stewardship, compliance and accountability A. Excess of expenditures over appropriations Nonmajor Governmental Funds Law Library Debt Service Expenditures Budget Actual Variance Positive (Negative) $ $ 212 1,010,100 1,141,S27 $ (212) (131,727) B. Fund Balance or Net Assets Following is a detail of funds with deficit fund balances or net assets. The Government plans to fund the deficits through the general operations of the Government. Nonmajor Governmental Funds Emergency Telephone System Special Assessment Downtown Development Authority Law Library $ (1]9,001) (71,61S) (26,024) (22,561 ) $ (176,S78) Nonmajor Enterprise Funds Newman Tennis Center Note 3 - Detailed notes on all funds A. Deposits and investments At December 31, 2002, the Government's cash and cash equivalents balance on the balance sheet included demand deposits, certificates of deposit, repurchase agreements, and local government investment pools. The cash balance was secured by Federal Depository Insurance Corporation (FDIC) or Savings Association Insurance Fund (SAIF) or by collateral held by the agent in the Government's name. 50 AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) The local government investment pool "Georgia Fund I ", created by O.C.G.A. 936-S3-S, is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund I 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 SEe as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. At December 3 I, 2002, the carrying amount of the Government's deposits with fmancial institutions was $75,552,467 and the bank balance was $81,23S,S28. Amount insured by the FDIC Amount collateralized with securities held by pledging institutions in the Government's name Uncollateralized $ 600,000 79,363,527 1,275,301 Total bank balance of deposits $ 81,23S,S2S At December 31, 2002 the County's cash and investment balances were as follows: Category Carrying Market 2 3 Amount Value Repurchase agreements $ 207,222,709 $ $ $ 207,222,709 $ 207,222,709 U.S. Government securities 47,670,442 47,670,442 47,670,442 Corporate securities 19,9S5,360 19,9S5,360 19,985,360 Equity securities 31,626,290 31,626,290 3 I ,626,290 Real estate investment 1,267,600 1,267,600 Local government investment pool 139,951,09S 139,95 I ,09S Carrying amount of deposits with fmancial institutions 75,552,467 75,552,467 Deposits with investment houses 2,716,937 2,716,937 Certificates of deposits held by investment houses 3,299,45 I 3,299,451 Cash on hand 25,954 25,954 $ 529,318,30S $ 529,3 18,308 Investments made by the Government, including repurchase agreements consisting of U.S. Treasury notes, are summarized below. The investments that are represented by specific identifiable investment securities are classified as to credit risk by the three categories described below: The Government's investments are shown by type, carrying amount, market value and level of risk assumed in the holding of the various securities. 51 I AUGUST A, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31, 2002 I Note 3 - Detailed notes on all funds (Continued) I The levels of risk assumed in the various investments are categorized as follows: I Category 1: includes the investments that are insured or registered or for which the securities are held by the Government or its agent in the Government's name. Category 2: includes uninsured and unregistered investments for which the securities are held by the bank's or dealer's trust department or agent in the Government's name. Category 3: includes uninsured and unregistered investments for which the securities are held by the bank or dealer, or by its trust department or agent but not in the Government's name. I In addition to the regular operating accounts, the Department of Health had a money market account bearing interest at the rate of 1.56% per armum, totaling $1,229,392 at June 30, 2002. Banks have pledged their securities to collateralize the deposits of the Department of Health and all its programs, in addition to federal depository insurance. I B. Receivables I Property taxes are administered on a calendar year basis subject to the following dates: I Lien date January I Levy date August 15 Collection period September 15 - November 15 Due date November 15 Receivables at December 3 I, 2002, including the applicable allowances for uncollectible accounts, consist of the following: Special Special Nonmajor Nonmajor Fire Sales Tax Sales Tax Water and Bush Governmental Enterprise General Protection Phase ill Phase IV Sewer Field Funds Funds Total Receivables: Taxes $ 5,349,365 S 648,956 $ $ $ $ 3,486,616 S 1,766,220 $ 11,251,157 Accounts 3,935,25] 43,153 2,487,19] 5,531,747 1,398,841 992,182 1.159,563 15,547,928 Interest 79,206 1,365,479 118,142 1,648 1,564,475 Note 100,000 886,826 986,826 Intergovernmental 16,805 171,964 155,253 91,666 435,688 Gross receivables 9,401,421 648,956 122,359 2,487,191 6,897,226 1,570,805 5,639,019 3,019,097 29,786,074 Less: allowance for uncollectibles (772,992) (21,091) (270,500) (153,000) (438,137) ( 131 ,848) (1,787.568 Net total receivables $ 8,628,429 $ 627,865 S 122,359 S 2,487,191 $ 6,626,726 S 1,417,805 $ 5,200.882 $ 2,887,249 S 27,998.506 Adjustments to Total Full Accrual Total Taxes $ 11,251,157 $ $ 11,251,157 Accounts 15,547,92S 4,2S 1,536 19,529,464 Interest 1,564,475 1,564,475 Note 9S6,S26 2,717,697 3,704,523 Intergovernmental 435,6SS 435,688 Allowance (I,787,56S) (I, 7S7 ,56S) Net total receivables $ 27,998,506 $ 6,999,233 $ 34,997,739 I I I I I I I I 52 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) Adjustments to full accrual relate to long-term notes receivable and internal service funds. Internal service funds predominately serve the governmental funds. Accordingly, the internal service funds receivables balances are included in 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 fmancial 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 $3 I ,50S, 116 in taxes receivable recorded in agency funds. This amount is excluded from the foregoing schedule and represents the amount of receivables billed on behalf of other governments in an agency relationship. Also, included in the Fiduciary fund fmancial statements and excluded from the foregoing schedule are interest receivable totaling $6S0,OI2 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 financial statements. 53 I AUGUST A, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31, 2002 I Note 3 - Detailed notes on all funds (Continued) C. Capital assets A summary of changes in capital assets is as follows: I Governmental Activities January I, December 3 1, 2002 Additions Deletions 2002 I Capital assets, not being depreciated Land $ 15,363,176 $ 421,305 $ - $ 15,784,481 Construction in process 113,780,979 4,866,361 (39,931,184) 78,716,156 I Total capital assets not being depreciated 129,144,155 5,287,666 (39,931,184) 94,500,637 Other capital assets: Land and Site Improvements 6,276,433 3,037,774 9,314,207 I Buildings 66,630,090 66,630,090 Building improvements 3,221,008 3,039,228 6,260,236 Vehicles 22,343,473 3,028,530 (2,316,383) 23,055,620 Machinery and equipment 6,058,433 971,715 7,030,148 I I T - hardware 1,409,170 566,507 1,975,677 IT - software 825,013 319,996 1,145,009 Furniture and fixtures 1,087,487 1,087,487 Infrastructure 6,823,043 34,693,452 41,516,495 I Richmond County Public Facilities 12,655,483 12,655,483 Total other capital assets 127,329,633 45,657,202 (2,316,383) 170,670,452 Less accumulated depreciation for: I Land and site improvements (3,463,178) (669,611) (4,132,789) Buildings (16,648,708) (1,638,905) (18,287,613) Building improvements (1,045,020) (236,044) (1,281,064) I Vehicles (12,326,305) (3,337,642) 2,316,383 (13,347,564) Machinery and equipmcnt (3,284,618) (529,392) (3,814,010) 1 T - hardware (1,057,452) (310,278) (1,367,730) IT - so fiware (610,915) (175,740) (786,655) I Fumiture and fixtures (1,018,206) (36,359) (1,054,565) Infrastructure ( 4,024,009) (731,888) (4,755,897) Richmond County Public Facilities (9,702,537) (843,699) (I 0,546,236) Total accumulated depreciation (53,180,948) (8,509,558) 2,316,383 (59,374,123) I Other capital assets, net 74,148,685 37,147,644 111,296,329 Governmental activities capital assets, net $ 203,292,840 $ 42,435,310 $ (39,931,184) $ 205,796,966 . . Depreciation expense was charge to functions as follows: Governmental activities - General government $ 2,191,979 - Judicial 1,455,830 Public safety 2,560,596 Public works 1,794,4S4 Health and welfare SS,53l Culture and recreation 411,511 Housing and development 6,627 $ S,509,558 54 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2002 Note 3 - Detailed notes on all funds (Continued) Business- Tvpe Activities: Balance Balance December 3 1, December 3 I, 2001 Additions Disposals 2002 Water and Sewer Capital assets, not being depreciated: Land $ 3,214,388 $ 642,133 $ $ 3,856,521 Construction in progress 34,633,493 22,162,472 (24,661,500) . 32,134,465 Total capital assets not being depreciated 37,847,881 22,804,605 (24,661,500) 35,990,986 Other capital assets: Buildings 38,903,817 55,775 38,959,592 Vehicles 4,306,979 673,524 (284,825) 4,695,678 Machinery and equipment 4,965,752 796,779 (120,900) 5,641,631 Furniture and fixtures 421,374 421,374 Other capital 1,912,229 145,033 2,057,262 Water and sewerage systems 201,661,628 32,557,019 234,218,647 Contributed water and sewerage systems 10,563,423 10,563,423 Total capital assets being depreciated 262,735,202 34,228,130 (405,725) 296,557,607 Less accumulated depreciation for: Buildings (6,016,189) (1,304,633) (7,320,822) Vehicles (2,880,645) (453,544) 284,825 (3,049,364) Machinery and equipment (3,633,224) (850,116) 120,900 (4,362,440) Furniture and fixtures (404,879) (11,041) (415,920) Other capital (1,760,937) (122,446) (1,883,383) Water and sewerage systems (85,738,278) (7,259,033) (92,997,311) Contributed water and sewerage systems (5,013,058) (351,763) (5,364,821 ) Total accumulated depreciation (105,447,210) (10,352,576) 405,725 (115,394,061) Other capital assets being depreciated, net 157,287,992 23,875,554 181,163,546 Water and sewer capital assets, net 195,135,873 46,680,159 (24,661,500) 217,154,532 · Disposals in Construction in progress are shown as additions to Capital assets being depreciated. 55 I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31, 2002 $ 4,684,256 $ $ $ 1,316,695 1,866,970 (550,078) * 6,000,951 1,866,970 (550,078) 9,091,644 38,220 1,436,244 221,699 (19,184) 762,666 23,667 (6,276) 21,457,065 1,619,334 32,747,619 1,902,920 (25,460) I Note 3 - Detailed notes on all funds (Continued) I Balance December 31, 2001 Additions I Augusta Regional Airport Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated I Other capital assets: Buildings Vehicles Machinery and equipment Other capital Total capital assets being depreciated I I Less accumulated depreciation for: Buildings Vehicles Machinery and equipment Other capital Total accumulated depreciation (5,773,332) (247,857) (1,329,840) (67,884) (396,786) (60,066) (9,037,525) (664,484) (16,537,483) ( I ,040,291) 16,210,136 862,629 22,211,087 2,729,599 I I Other capital assets being dcpreciated, nct Augusta Rcgional Airport capital asscts, net . * Disposals in Construction in progrcss arc shown as additions to Capital asscts being depreciated. . - - - 56 Disposals (404,035) (404,035) (429,495) (979,573) Balance Decembcr 3 I , 2002 4,684,256 2,633,587 7,317,S43 9,129,864 1,638,759 780,057 23,076,399 34,625,079 (6,425,224) (1,397,724) (456,852) (9,702,009) (17,981,809) 16,643,270 23,961,113 AUGUST A, GEORGIA Notes to .Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) Balance Balance December 3 I, December 3 I, 2001 Additions Disposals 2002 Nonmaior enterprise funds Capital assets, not being depreciated Land $ 3,370,5 I 3 $ $ $ 3,370,5 \3 Construction in process 160,366 124,764 285,130 Total capital assets not being depreciated 3,530,879 124,764 3,655,643 Other capital assets: Site and building improvements 63,738 6,575 70,313 Landfill Cell 11 C 9,119,078 280,798 9,399,876 Buildings 4,056,759 4,056,759 Vehicles 8,055,961 8,055,961 Machinery and equipment 3,349,036 17,800 3,366,836 Furniture and fixtures 86,836 86,836 Other capital 453,459 453,459 Total capital assets being depreciated 25,184,867 305,173 25,490,040 Less accumulated depreciation for: Site and building improvements (53,561) (4,249) (57,810) Landfi II Cell 11 C (5,876,681 ) (455,954) (6,332,635) Buildings (1,703,667) (135,225) (1,838,892) Vehicles (5,271,855) (979,116) (6,250,971 ) Machinery and equipment (3,112,578) (33,780) (3,146,358) Fumiture and fixtures (55,518) ( 12,405) (67,923) Other Capital (42,243) (45,346) (87,589) Total accumulated depreciation (16,116,103) (1,666,075) (17,782,178) Other capital assets, net 9,068,764 (1,360,902) 7,707,862 Nonmajor enterprise funds, net 12,599,643 (1,236,138) 11,363,505 Business-type activities capital assets, net $ 229,946,603 48,173,620 (25,641,073) $ 252,479,150 Depreciation expense was charge to business-type activities as follows: Waste management $ 1,046,554 Water and sewer 10,352,576 Airports 1,094,134 Municipal golf course 39,463 Transit 526,215 $ 13,058,942 57 I I I I I I I I I I I I . . . AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) Capital asset activity for the Department of Health for the year ended June 30, 2002 was as follows: July I, 200 I Increase Decrease June 30, 2002 Capital assets, not being depreciated Land $ 1,2S7,797 $ $ Other capital assets: Buildings 5,324,398 Improvements 595,153 Equipment 67,799 14,330 Vehicles 134,2 I 5 6,121,565 14,330 Less accumulated depreciation for: Buildings (133,110) (133,110) Improvements (19S,59 I) (29,757) Equipment (47,OS3) (7,730) Vehicles (S9,752) (8,875) Total accumulated depreciation (468,536) (179,472) Other capital assets, net 5,653,029 (165,142) Governmental activities capital assets, net $ 6,940,826 $ (165,142) $ D. Accounts payable and accrued liabilities Payables for the Government at December 3 I, 2002 were as follows: Fund Financial Statements Special Special Augusta Fire Sales Tax Sales Tax Water and Regional General Protection Phase III Phase IV Sewer Airport $ 1,2S7,797 5,324,398 595, I 53 S2,I29 134,2 I 5 6,135,S95 (266,220) (22S,348) (54,S 13) (9S,627) (64S,00S) 5,487,SS7 $ 6,775,6S4 Nonmajor Nonmajor Governmental Enterprise Funds Funds Total $ 821,985 $ 865,274 $ 11,220,374 152,809 4,158,338 130,628 256,248 3,752,941 63,952 165,771 2,460,720 Payables: Accounts payable Accrued interest Accrued salaries and vacation Other accrued liabilities $ 1,948,422 $ 56,624 $ 687,968 $ 1,059,379 $ 4,836,952 $ 4,004,586 943,770 943 2,076,834 488,886 50,361 573,090 176,894 2,230,997 Total accounts payable and accrued liabilities $ 6,256,253 $ 545,510 $ 687,968 $ 1,109,740 $ 9,414,628 $ 1,121,607 $ 1,169,374 $ 1,287,293 $ 21,592,373 Government-wide Financial Statements Adjustments to Total Full-Accrual Total Payables: Accounts payable $ 11,220,374 $ 925,065 $ 12,145,439 Accrued interest 4,158,338 209,101 4,367,439 Accrued salaries and vacation 3,752,941 (535,076) 3,217,865 Other accrued liabilities 2,460,720 3,010 2,463,730 T oral accounts payable and accrued liabilities $ 21,592,373 $ 602,100 $ 22,194,473 Adjustments to full-accrual basis include $209, I 0 I related to accrued interest on governmental long-term debt, ($566,72S) relating to the reclassification of accrued vacation from accrued liabilities to liabilities due within one year, and the remaining balance of $959,727 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. 58 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2002 Note 3 - Detailed notes on all funds (Continued) Also, the fiduciary fund financial statements include $945 in other liabilities recorded in pension trust funds. This amount is excluded from the foregoing schedule and represents amounts due to various other agencies, individuals or governments. E. DeferredfUnearned 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: Deferred Unearned Revenue Revenue $ 3,625,784 $ 426,048 2,505, I 74 23S,826 S34,133 769,770 7,779,134 $ 6,557,006 $ 9,62 I ,863 Taxes receivable net of allowance - General Fund Taxes receivable net of allowance - Fire Protection Fund Taxes receivable net of allowance - Nonmajor governmental funds Grant income received in advance of being earned - General Fund Grant income received in advance of being earned - Nonmajor governmental funds Business license income received in advance of being earned - General Fund Insurance premium income received in advance of being earned - Fire Protection Fund F. Landfill closure and postclosure costs State and Federal laws and regulations require the Government to place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $11,022,500 as of December 31, 2002, which is based on 79% usage (filled) of Cell 11 C which is operating currently, and 100% usage (filled) of Cells II A and II B. This liability is recorded in the Waste Management Enterprise Fund. It is estimated that an additional $1,733,S60 will be recognized as closure and postclosure care expenses between the date of the statement of net assets and the date the landfill is expected to be filled to capacity, which is in the next 2.5 years. The estimated total current cost of the landfill closure and postclosure care, $12,756,360, 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, 2002. 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 fmance the costs for the estimated landfill closure and postclosure care costs as they become due during the coming thirty years through the regular operations of the Government. G. Long-term debt I. Governmental activities General Obligation Bonds $7,020,000 1973 Public Improvement Bonds - due in annual installments of $325,000 to $350,000, plus interest at 4.75% to 5.5% through November 2003. $ 350,000 59 I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 3 - Detailed notes on all funds (Continued) In a prior year, a portion of the Certificates of Participation (Series 1993) was defeased by the creation of an irrevocable trust fund. Original proceeds remaining from the issue were used to purchase U.S. Government securities that were placed in a trust fund. The investments and fixed earnings from the investment are sufficient to fully service the defeased debt until the debt matures. For financial reporting purposes, the debt is considered defeased and, therefore, not included as a liability in the government-wide financial statements Funds. As of December 3 I, 2002, the amount of defeased debt outstanding but removed from the governmental debt is $1,460,000. I I I Notes payable Housing and Neighborhood Development: Section 10S loan - due in annual installments of$65,000 to $1,010,000, plus interest at 9%, through August 2005. I Revenue bonds Downtown Development Authority: $2,600,000 I9S9 Downtown Development Authority Bonds - due in annual installments of $125,000 to $270,000, plus interest at 7.4% through January 2010. I I $3,SI6,000 1990 Downtown Development Authority Bonds - due in annual installments of $170,000 to $375,000, plus interest at 7.55%, through January 2010. $3,500,000 1993 Downtown Development Authority Bonds - due in monthly principal and interest installments of $4 I ,075 through May 2002. I Augusta Port Authority: $1,200,000 1993 Augusta Port Authority Bonds - due in monthly principal and interest installments of $9,773 through April200S, Total I I Certificates of Participation GMA Leases Fund: $16,888,000 Certificates of Participation - principal due in a lump sum payment on June I, 2028. Interest only payments are due annually at a rate of 4.75%, through June 1,2028. Original issue amount Original issue discount I I I Year ending December] I 2003 2004 I 2005 2006 2007 2008.2012 2013.2017 20/8.2022 . 2023.2027 . 2028 I - - Total Governmental Activities Revenue Bonds General ObliAation Bonds Noles Payable Certificates ofParticipattoo Principal Interest Principal Interest 65,000 105,880 70,000 125,064 1,010,000 /23,016 Principal Interest 479,980 318,167 515,008 282,816 550,317 244,938 590,923 204,332 636,843 160,605 1,853,987 209,898 Principal Interest 350,000 S 16,625 802,180 802.180 802,180 802, 180 802,180 4,010,900 4,010,900 4,010,900 4,010,900 334,242 16,888,000 20,388,742 S 23,010,058 S 350,000 16,625 1,145,000 353,960 4,627,058 1,420,756 16,888,000 60 $ 1,145,000 $ 1,715,000 2,365,000 547,05S $ 4,627,05S $ 16,888,000 (943,222) $ 15,944,77S Total Principal Interest 894,980 585.008 1,560,317 590,923 636.843 1,853,987 1.242,852 1,210,060 1,170,134 1,006,512 962,785 4,220,798 4,010,900 4,010,900 4,010,900 334,242 16,888,000 22,180,083 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds and account groups (Continued) Certi ficates of Participation In June 1995, 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,SSS,000, shown net of original issue discount of $943,222 at $15,944,77S, The lease pool agreement with the Association provides that the Government owns their portion of the assets invested by the pool and is responsible for the payment of their portion of the principal and interest of the Certificates of Participation. The principal of$16,SSS,000 is due in a lump sum payment on June I, 202S. Interest is payable at a rate of4.75% each year. The Government draws from the investment to lease equipment from the Association. The lease pool agreement requires the Government to make lease payments back into its investment account to fund the principal and interest requirements of the 1995 GMA Certificates of Participation. Equipment in the amount of$I,300,790 was leased during 2002. 2, Business-type activities Revenue bonds Water and Sewer: $149,400,0002002 Water and Sewer Bonds - due in annual installments of $235,000 to $20,610,000 starting October 2002 thru October 2032, plus interest varying from 2/5-% to 5.75% on $57,840,000 serial bonds, with interest of 5.0% on $91,560,000 term bonds, $ 149,165,000 $97,080,0002000 Water and Sewer Bonds - due in annual installments of$355,000 to $1 I, I 05,000, plus interest at 4.4% to 5.25% through October 2030, 97,OSO,000 $66,640,000 1996 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 202S (this liability is reflected in the Water and Sewer Fund net of deferred refunding amount of $2,020,740). 60,720,000 $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 $41 0,549), 5,060,000 Total 312,025,000 (2,431,289) (4,939,092) $ 304,654,6 I 9 Total Less: Deferred refunding amounts Less: Bond issue discounts Notes payable Water and Sewer Fund: State revolving loan - due in quarterly principal and interest installments of$94,66S, plus interest at 4%, through May 2016. $ 3,935,217 State revolving loan - principal and interest due in quarterly installments of$l 19,392, plus interest at 4%, through July 2019. 5,748,150 Total $ 9,6S3,367 61 I I I I I I I I I I I I I I I I . . - AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2002 Note 3 - Detailed notes on all funds (Continued) Business-type Activities Year ending Notes Payable Revenue Bonds Total December 3 I Principal Interest Principal Interest Principal Interest 2003 $ 412,199 $ 324,648 $ 2,175,000 $ 15,675,400 $ 2,587,199 $ 16,000,048 2004 492,723 363,517 2,255,000 15,610,614 2,747,723 15,974,131 2005 512,729 343,511 2,340,000 15,513,920 2,852,729 15,857,431 2006 533,548 322,692 2,785,000 15,421,480 3,318,548 15,744,172 2007 555,212 301,028 3,950,000 15,307,550 4,505,212 15,608,578 200S-20 12 3,133,093 1,148,106 31,685,000 73,098,402 34,81S,093 74,246,508 2013-2017 3,240,570 472,621 43,990,000 64,222,119 47,230,570 64,694,740 2018-2022 803,293 32,452 56,490,000 51,719,319 57,293,293 51,751,771 2023-2027 72,805,000 35,403,887 72,S05,000 35,403,S87 2028-2032 93,550,000 14,659,875 93,550,000 14,659,875 $ 9,683,367 $ 3,308,575 $ 312,025,000 $ 316,632,566 $ 321,70S,367 $ 319,941,141 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,SI5,000 with an interest rate of 5.5%. The remaining portion of the bond proceeds $140,585,000 was issued for the purpose of financing the costs of making additions, extensions and improvements to the Utility's water and sewer system. A portion of the net proceeds of $8,692,36S (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 $1 1,753,672 of funds from a capitalized interest fund is to be used to for improvements to the Utility's water and sewer system. No difference resulted in the current refunding between the reacquisition price and the net carrying amount of the old debt. The Government completed the refunding to obtain an economic gain (difference between present values of the old and new debt service payments) of approximately $792,000. During 2000, the Government issued $97,08 million in Series 2000 Water and Sewer Revenue bonds for the purpose of frnancing the costs of making additions, extensions and improvements to the Utility's water and sewer system, During 1996, the Government issued $66.6 million in Series 1996 Water and Sewer revenue bonds. A portion of the proceeds from the sale of these bonds was used to advance refund all of the former City of Augusta's Series 1972 and 1991 Water and Sewer revenue bonds and the former Richmond County's Series 1987 and 1991 Water and Sewer revenue bonds. Proceeds of $19.4 million plus an additional $4.9 million of sinking fund monies from the defeased issues were used to purchase U.S, government securities. Those securities were deposited in an irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above-mentioned bonds. As a result, the bonds are considered to be defeased and the liabilities for those bonds have been removed from the Water and Sewer Fund. In 1997, the Government issued $5.9 million in Series 1997 Water and Sewer Revenue Bonds. A portion of the proceeds from the sale of these bonds was used to advance refund all of the former Richmond County's Series I9S6 Water and Sewer Revenue Bond. Proceeds of approximately $5.6 million plus an additional $.9 million of sinking fund monies from the defeased issues were used to purchase U.S, government securities. Those securities were deposited in an irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above-mentioned bonds. As a result, the bonds are considered defeased and the liability for those bonds have been removed from the Water and Sewer Fund. As of December 31, 2002, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund is $2,4S0,793. 62 AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) 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 fmancial statements as a deduction from bonds payable, is being charged to operations through the year 202S using the effective-interest method. The refunding increased the total debt service payments over the next 30 years by approximately $S.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 fmancial 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 $ I 10,000. The Department of Health's long-term liabilities represent compensated absences. The debt for compensated absences was $463,097 at June 30, 2002. 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 defined 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, Future minimum lease payments under the leases and the net present value of the minimum lease payments as of December 31,2002 are as follows: Governmental Business-type Activities Activities 2003 $ 2,504,965 $ 749,834 2004 94S,476 261,048 2005 260,483 2006 207,227 2007 124,996 2008 124,996 4, I 71, 143 1,0 I 0,8S2 Less interest: (431,120) Present value of lease payments $ 3,740,023 $ 1,0 I 0,8S2 The Government is lessor of terminal space, land and buildings at Augusta Regional Airport at Bush Field and Daniel Field under various operating leases. Revenues and related expenses for Augusta Regional Airport at Bush Field are recorded in the Augusta Regional Airport at Bush Field Fund while the revenue and related expenses for Daniel Field are recorded in the Daniel Field Airport Fund. Some of the leases provide for additional payments based on usage activity in addition to non-cancelable amounts of fixed rates, During 2002, rental income totaled approximately $2 million and $87,000 in the Augusta Regional Airport at Bush Field and Daniel Field Airport Funds, respectively. 63 I AUGUST A, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 3 - Detailed notes on all funds (Continued) The assets acquired through capital leases as of December 3 I, 2002 are as follows: I Governmental Business-type Activities Activities I Vehicles $ 10,715,324 $ I,644,S49 Machinery and equipment 2,466,705 1,747,129 I Less: accumulated depreciation (8,072,602) (S74,I05) Carrying value $ 5,109,427 $ _" 2.5~7~S73 I I. Changes in long-term liabilities The following is a summary of long-term debt transactions of the year ended December 3 1,2002: I Beginning Ending Current Balances Additions Reductions Balances Portion Governmental activities: I Bonds and notes payable: General obligation bonds payable $ 1,690,000 $ $ (1,340,000) $ 350,000 $ 350,000 Notes payable 1,205,000 (60,000) 1,145,000 65,000 I Revenue bonds payable 5,254,467 (657,409) 4,597,058 479,980 Total bonds and notes payable 8,149,467 (2,057,409) 6,092,058 894,980 Certificates of participation 16,888,000 16,888,000 I Less: original issue discount (1,033,053) 89,831 (943,222) (89,831 ) Total certificates of participation 15,854,947 89,831 15,944,778 (89,831 ) Other liabilities: I Compensated absences 3,464,298 3,943,000 (4,194,000) 3,213,298 3,213,298 Capital leases 6,274,704 1,278,319 (3,813,000) 3,740,023 2,504,965 Claims and judgments 450,000 1,661,912 (1,047,277) 1,064,635 1,064,635 Total other liabilities 10,189,002 6,883,231 (9,054,277) 8,017,956 6,782,898 I Governmental activities long-tenn liabilities $ 34,193,416 $ 6,883,231 $ (11,021,855) $ 30,054,792 $ 7,588,047 I Business-type activities: Revenue debt: Revenue bonds payable $ 164,095,000 $ 149,40,0,000 $ (1,470,000) $ 312,025,000 $ 2,175,000 I Less: deferred refunding amounts (2,530,618) 99,329 (2,431,289) (99,329) Less: bond issue discounts (3,874,948) (1,064,144) (4,939,092) (164,636) Total revenue debt 157,689,434 148,335,856 (1,370,671) 304,654,619 1,911,035 I Other liabilities: Compensated absences 477,484 699,788 (610,544) 566,728 566,728 Notes payable 18,888,695 (9,205,328) 9,683,367 412,199 Capital leases 977,570 787,307 (753,995) 1,0 I 0,882 749,834 . Closure/postclosure accrual 10,121,740 900,760 11,022,500 I Total other liabilities 30,465,489 2,387,855 (10,569,867) 22,283,477 1,728,761 Business-type activities long-ternl I liabilities $ 188,154,923 $ 150,723,711 $ (11,940,538) $ 326,938,096 $ 3,639,796 - - 64 - AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 3 - Detailed notes on all funds (Continued) J. Interfund balances and activities Due Fromffo Other Funds The composition of interfund balances as of December 31, 2002 are as follows: Receivable Fund Payable Fund Amount General fund Water and Sewer System $ 109,236 Bush Field 1,904,260 (c. Nonmajor governmental funds 1,226,26 I Nonmajor enterprise funds 2,399,915 Internal service funds 524,329 Pension Trust Funds 329,570 Agency Funds 2,435,233 Total General Fund 8,92S,S04 Fire Protection Agency fund 191,396 Nonmajor governmental funds Agency fund 1,041,094 Nonmajor enterprise funds Agency fund 232,92 I Pension Trust fund General fund 200,000 $ 10,594,215 Amounts were due to General fund primarily for interfund loaning of cash reserves and timing of payments from agency funds. Amounts were due to other funds primarily for timing of payments from agency funds. Transfers TofFrom Other Funds Transfers in(out) for the year ended December 3 1,2002 are summarized below: Transfers in Fire General Protection Nonmajor Nonmajor Internal Pension Trust Transfers out Fund Fund Governmental Enterprise Service Fund Total General Fund $ $ $ 367,429 $ 169,999 $ $ $ 537,428 Special Sales Tax Phase IV 467,721 729,730 1,197,45] Bush Field 50,000 50,000 Nonmajor governmental 3,120,299 6,044,585 4,742,44] 751,576 1,]97,481 ] 5,856,382 $ Total transfers $ 3, ]20,299 $ 6,512,306 $ 367,429 5,692,170 $ 751,576 $ 1,]97,481 $ 17,641,261 Transfers between the nonmajor governmental funds, the General fund and other nonmajor governmental funds were primarily to support the operation of the funds, 65 I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 4 - Other information A. Risk management I The Government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Government is self-insured. The Risk Management Funds (an internal service fund) are utilized by the Government to account for and fmance its self-insured risks of loss. The Risk Management Funds are maintained to provide general liability insurance, workers' compensation coverage, unemployment coverage and employee health benefits coverage. The Government is self-insured for 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, 2002, include the following: I I I General Fund Fire Protection Fund Internal Service Fund $ 4,705,061 250,000 577,90S I Total reserve $ 5,532,969 I Related liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors, I The following represents the changes in the balance of claim liabilities for the Government from January I, 200 I to December 31, 2002: I Unpaid claims, January 1,2001 Incurred claims (including IBNRs) Claim payments Unpaid claims, December 31, 200 I Incurred claims (including IBNRs) Claim payments $ 600,000 3,4SI,7S7 (3,63 I, 7S7) 450,000 1,661,912 (1,047,277) I I Unpaid claims, December 31, 2002 $ 1,064,635 B. Contingent liabilities I Litigation The Government is party to various legal proceedings which normally occur in governmental operations. The Government follows the practice of recording liabilities resulting from claims and legal actions only when they become probable and measurable. The Government has accrued a liability in the Risk Management Fund (an internal service fund) for all claims for which a loss is probable and measurable. I I Possible unasserted claims The Government participates in a number of Federal and state assisted grant programs, which are subject to program compliance audits under the Single Audit Act Amendments of 1996. An audit of these programs has been performed for the year ended December 31, 2002, in compliance with the Single Audit Act Amendments of 1996 and OMB Circular A- I 33. However, the audit is pending final acceptance by the various grantor agencies. The amount, if any, of expenditures, which may be disallowed by the granting agencies, is expected to be immaterial. I I' I 66 AUGUST A, GEORGIA Notes to Financial Statements - Continued Year Ended December 31,2002 Note 4 - Other information (Continued) C. Contracts and commitments Augusta-Richmond County Coliseum Authority The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt to the extent of the 3% Hotel-Motel Excise Tax and 30% of the Beer Tax collected, D. Richmond County Public Facilities, Inc. The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code Section 50 I (c )(3). The purpose of this nonprofit organization is to construct and maintain buildings and equipment to be leased by the Government, the Department of Family and Children Services, and the Richmond County Board of Education. The Richmond County Public Facilities, Inc. is part of the reporting entity of Augusta, Georgia, due to the degree of control the Government has over the Board of Directors of Richmond County Public Facilities, Inc. Richmond County Public Facilities, Inc. issued Certificates of Participation to provide funds for the Government to refund the 1990 Certificates of Participation issue and for certain capital projects, The related assets are included in the financial statements of the Government in the General Fixed Asset Account Group. The Certificates of Participation were retired during 200 I. In addition, the Richmond County Public Facilities, Inc. issued Certificates of Participation of $13,240,000 for the Richmond County Board of Education in a prior year. These Certificates of Participation are the sole responsibility of the Richmond County Board of Education and the related assets and liabilities have not been included in the financial statements of the Government. Note 5 - Pension plans A. Plan descriptions, contribution information and funding policies The Government has seven single-employer pension plans and one agent multiple-employer pension plan currently in existence. These plans are defmed benefit plans, The Government also has a single-employer, defmed contribution plan. The following is a summary of funding policies, contribution methods, and benefit provisions for each plan. 67 I AUGUST A, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31,2002 I Note 5 - Pension plans (Continued) I Single-employer pension plans 1945 Plan The 1945 Plan was available to all former Richmond County employees hired prior to October I, 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 Govemment 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. I I I I 1977 Plan The 1977 Plan was available to all former Richmond County full-time employees who were not participants in the 1945 Plan provided that they were not hired after reaching age 60, Normal retirement for the Plan is age 65 or the date when age 62 is attained and an employee completes 25 years of credited service. At that time, the employee is entitled to a monthly benefit equal to I % of average earnings multiplied by years of credited service. The Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. The Plan also provides for reduced benefits if the participant elects to retire after attaining age 50 and completing 15 years of service. Employees are required to make 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. I I I I I 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. I I 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 fmancial statement reports. I I I . I 6S AUGUST A, GEORGIA I Notes to Financial Statements - Continued Year Ended December 31, 2002 . . - Note 5 - Pension plans (Continued) I!!!! General Retirement Plan Employees hired after March I, 1949 and before March I, I 9S7, 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, I9S0, must contribute S% 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-emplover pension plan Georgia Municipal Employees Benefit System (GMEBS) Employees hired after March I, 1987 and before consolidation on December 3 I, 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 fmal five-year average salary is the average salary of the employee during the final five years of full-time employment. Pension provisions include deferred allowances, whereby an employee may terminate his or her employment with the Government after accumulating 10 years of service but before reaching the age of 55. If the employee does not withdraw his or her accumulated contributions, the employee is entitled to all pension benefits upon reaching the age of 55, Employees must contribute 3.5% of their gross earnings to the Plan. In addition, the Government must provide annual contributions sufficient to satisfy the actuarially determined contribution requirements as amended by GMEBS. The GMEBS Retirement Fund issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Georgia Municipal Employees Benefit System, 201 Pryor Street, SW, Atlanta, Georgia 30303. 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, 69 I AUGUSTA, GEORGIA Notes to Financial Statements - Continued I Year Ended December 31, 2002 I Note 5 - Pension plans (Continued) Membership of the defined benefit plans are as follows: I Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not yet receiving benefits Active Plan members I 1945 Plan 1977 Plan General Pension Plan Policemen's Pension Plan Firemen's Pension Plan City Employees' Pension Plan General Retirement Plan (City 1949) GMEBS 37 61 I 3 9 15 152 77 o 179 o o o o 5 3 4 693 o o o o 156 239 I I Total 355 IS7 . I 1,092 Includes terminated employees from I99S and 1999 previously counted as active, I The cost of administering the plans are fmanced 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. I Defmed contribution plan Augusta-Richmond County Board of Commissioners Retirement Savings Plan (the" I 99S 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, PPA support. The Plan was organized and may be amended by a majority vote of the full- body of the governing board, the Augusta-Richmond County Commission. Employees contribute four percent (4%) of their salary, and the Government contributes two percent (2%) of the employee's salary, At December 3 1,2002, there were approximately 1,256 plan participants. Participants are considered fully vested in the Government's contributions after completing five (5) years of service. For the year ended December 31,2002, the employees' contributions were approximately $1,228,776, and the Government's contributions were approximately $614,388, I I I Richmond County Department of Health - General Retirement Plan An act approved March 6, 1945 providing for a retirement system and pension plan for the employees of the Richmond County Department of Health was established. There are no active employees of the Department covered under this plan. However, there is one (1) retiree, presently receiving benefits under this plan. The Department's FY 2002 cost to fund this plan was $11,461. All other full-time employees of the Department are members, as a condition of employment, of the Employees Retirement System of Georgia. This is an employee-employer cost-sharing plan. The Department's contribution to the pension fund for fiscal year 2002 was $466,552. I I B. Summary of significant accounting policies I I Pension trust funds are accounted for on the accrual basis. The accrual basis of accounting recognizes revenues when earned. Expenses are recorded when incurred. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and the Government has made a formal commitment to provide the contributions, Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. For information relating to reported investment values, see Note I G. I . . 70 AUGUST A, GEORGIA . n = Notes to Financial Statements - Continued liiiiiii Year Ended December 31, 2002 u Note 5 - Pension plans(Continued) C. Concentrations and reserves There are no assets legally reserved for purposes other than the payment of plan member benefits for any plans. The plans held no individual investments whose market value exceeds five percent or more of net assets available for benefits. There are no long-term contracts for contributions. D. Annual pension cost and net pension obligation - The Government's annual pension cost is determined using the calculation methodology defmed in GASB Statement No. 27. The armual pension cost equals the Government's armual required contribution, plus any adjustments required to reflect defined minimum and maximum amortization periods and any prior period differences between the actual contribution paid into the plans and the annual pension cost. E. Trend information Fiscal Annual Actual Percentage of Net Year Pension . County APC Pension Beginning Cost Contribution Contributed Obligation 2000 1945 Plan 01/0 l/2000 $ $ 100% $ 1977 Plan 01/01/2000 940,054 940,054 100% General Pension Plan o I/O I /2000 102,476 102,476 100% Policemen's Pension Plan 01/0 1/2000 44,S80 44,SSO 100% Firemen's Pension Plan 01/0 1/2000 205,435 205,435 100% City Employees' Pension Plan 01/01/2000 302,169 302,169 100% General Retirement Plan (City 1949) o I/O I /2000 100% GMEBS 01/0 l/2000 204,576 204,576 100% Fiscal Annual Actual Percentage of Net Year Pension County APC Pension Beginning Cost Contribution Contributed Obligation 2001 1945 Plan 01/0 1/200 I $ $ 100% $ 1977 Plan 01/01/200 I 979,131 979,131 100% General Pension Plan 01/01/200 I 89,00S 89,008 100% Policemen's Pension Plan 01/0 1/200 I 64,863 64,863 100% Firemen's Pension Plan 01/0 1/200 I 214,272 214,272 100% City Employees' Pension Plan 01/0 1/200 I 263,OSO 263,080 100% General Retirement Plan (City 1949) 01/0 1/200 I 100% GMEBS 01/0 1/200 I 192,622 192,622 100% 71 I I I I I I I I I I I I I I I I I I I AUGUSTA, GEORGIA Notes to Financial Statements - Concluded Year Ended December 31, 2002 Note 5 - Pension plans(Continued) Fiscal Annual Actual Year Pension County Beginning Cost Contribution 2002 1945 Plan 01/0 1/2002 $ $ 1977 Plan o I/O 1/2002 799,SSS 799,SSS General Pension Plan 01/0 1/2002 23,34S 23,34S Policemen's Pension Plan 01/0 1/2002 66,SSS 66,SS8 Firemen's Pension Plan o I/O I /2002 206,334 206,334 City Employees' Pension Plan 01/0 1/2002 299,512 299,512 General Retirement Plan (City 1949) 01/01/2002 GMEBS o 1/01/2002 168,316 16S,316 Note 6 - Joint venture Percentage of APC Contributed Net Pension Obligation 100% 100% 100% 100% 100% $ 100% 100% 100% 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 fmanced by membership dues and fmancial 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.) ~5S-S-34 with annual dues based on a per capita amount. During the year ended December 31,2002, 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. ~58-S-39. I 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 2123 Wrightsboro Road Augusta, Georgia 30904-0800 Note 7 - Hotel/motel lodging tax The Government has levied a 6% lodging tax, A summary of the transactions for the year ended December 3 I, 2002 follows: Lodging tax receipts $ 2,864,253 Disbursements to the Augusta-Richmond County Coliseum Authority, Augusta Convention and Visitors Bureau, and the Augusta Museum for promotion of tourism (2,864,253) Balance of lodging tax funds on hand at end of year $ The Government has received audit reports from the Augusta-Richmond County Coliseum Authority, Augusta Convention and Visitors Bureau, and the Augusta Museum covering the lodging tax monies. The subcontractor's expenditures were for promotion of tourism as required by O.C.G.A. 948-13-51, 72 AUGUST A, GEORGIA I -- Notes to Financial Statements - Concluded - ~ Year Ended December 31, 2002 - 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 fmancial statements for the refund of grant monies. Claims and judgements The Government is a defendant in various lawsuits. In the opinion of the Government's management and the Government attorney, the ultimate effect of these matters will not have a material adverse effect on the financial condition of the Government. Arbitrage The City's bond issues are subject to federal arbitrage regulations, and the Government has elected to review its potential arbitrage liability armually 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 fmancing 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, 110,000 which qualifies as a conduit debt obligation. The bonds are payable solely from revenues pledged under a lease agreement. As of December 31,2002, the amount outstanding on the Special Facility Airport Revenue Bonds is $3, I 10,000. A - Debt service requirements to maturity for bonds payable The following requirements to amortize debt outstanding as of December 3 I, 2002, including interest are as follows: Revenue Bonds Principal Interest 2003 2004 2005 2006 2007 2008 2009 2010 $ $ 3, 110,000 152,390 152,390 152,390 152,390 152,390 152,390 152,390 152,390 $ 3,110,000 $ 1,219,120 73 I AUGUSTA, GEORGIA Notes to Financial Statements - Concluded I' .-r I Year Ended December 31,2002 Note 10 - Prior period adjustments I In the fmancial statements for the year ended December 3 I, 200 I, an error was made in accounting for grant revenue in a nonmajor governmental fund, resulting in an overstatement of revenues in excess of expenditures of $499,510. The error has been corrected and has had the following effect on the beginning fund balance for the year ended December 31, 2002: I Nonmajor governmental funds Beginning fund balance Adjustment of deferred revenue $ 34,901,261 (499,510) I I Beginning fund balance, as restated $ 34,401,751 In the fmancia1 statements for the year ended December 3 I, 200 I, an error was made in accounting for capital assets in a major enterprise fund, Augusta Regional Airport, resulting in an overstatement of operating income of $2,059,262. The error has been corrected and has had the following effect on the beginning net assets for the year ended December 3 1,2002: . . Augusta Regional Airport Beginning net assets Adjustment of fixed assets $ 34,50 I ,533 (2,059,262) I Beginning net assets, as restated $ 32,442,27 I I I' - I I I: _. 74 I ~ - .:. ~~ '- 75 I I I I I I I I I I I PENSION PLAN REQUIRED SUPPLEMENTARY INFORMATION . . 76 AUGUST A, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information December 31,2002 A. Schedules of funding progress Actuarial (Funded) (FAAL) Accrued Unfunded UAAL as Actuarial Actuarial Liability AAL A%of Valuation Value of AAL (FAAL) 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) % 01/01/93 10,044,942 8,595,037 (1,449,915) 117 620,412 (234 ) 01/01/94 10,047,526 8,927,649 (1,119,877) 113 606,450 (185) 01/01/95 9,936,022 9,440,717 (495,305) 105 598,795 (83) 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) 01/01/01 12,352,795 12,069,544 (283,251 ) 102 180,462 (157) 01/01/02 11,023,816 10,075,638 (948,178) 109 184,511 514 1977 Plan 01/01/91 $ 3,018,241 $ 1,430,898 $ (1,587,343) 211 % $ 3,772,441 (42) % 01/01/93 3,892,816 1,937,061 (1,955,755) 201 4,607,419 (42) 01/01/94 4,262,572 2,813,432 (1,449,140) 152 5,180,438 (28) 01/01/95 4,439,451 3,333,577 (1,105,874) 133 6,797,338 (16) 01/01/96 5,446,380 4,332,024 (1,114,356) 126 8,952,224 (12) 01/01/97 6,285,732 5,510,585 (775,147) 114 11,509,974 (7) 01/01/99 9,976,793 14,137,712 4,160,919 71 24,454,857 17 01/01/00 10,836,439 15,060,421 4,223,982 72 21,709,421 19 01/01/0 I 11,136,602 15,575,523 4,438,921 72 21,705,175 20 01/01/02 14,065,581 16,860,437 2,794,356 83 21,029,237 13 General Pension Plan 12/31/93 $ - $ 629,859 $ 629,859 - % $ - % 12/31/94 619,418 619,418 12/31/95 587,797 587,797 12/31/96 564,008 564,008 12/31/97 637,605 637,605 12/31/98 533,575 533,575 12/3 1/99 511,305 511,305 12/31/00 524,410 524,410 12/31/01 525,089 525,089 12/31/02 114,862 114,862 Policemen's Pension Plan 12/31/93 $ - $ 528,904 $ 528,904 - % $ - % 12/3 1/94 437,814 437,814 12/31/95 422,070 422,070 12/31/96 417,725 417,725 12/3 1/97 391,153 391,153 12/3 1/98 389,072 389,072 12/3 1/99 246,783 246,783 12/31/00 246,217 246,217 12/3 1/01 355,840 355,840 12/31/02 380,143 380,143 77 I AUGUST A, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued I December 31,2002 I A. Schedules of funding progress (Continued) Actuarial (Funded) (F AAL) I Accrued Unfunded VAAL as Actuarial Actuarial Liability AAL A%of Valuation Value of AAL (FAAL) Funded Covered Covered Date Assets Entry Age VAAL Ratio Payroll Payroll I Firemen's Pension Plan 12/31/93 $ - $ 1,475,590 $ 1,475,590 - % $ - % 12/3 1/94 1,342,821 1,342,821 I 12/31/95 1,296,843 1,296,843 12/3 1/96 1,202,831 1,202,S31 12/31/97 1,507,50 I 1,507,501 12/31/98 1,479,472 1,479,472 I 12/31/99 1,276,044 1,276,044 12/3 1/00 1,258,550 1,258,550 12/31/01 1,345,133 1,445,133 12/3 1/02 1,204,513 1,204,513 I City EmDlovees' Pension Plan 12/3 1/93 $ - $ 2,960,183 $ 2,960,183 - % $ - % 12/3 1/94 2,704,129 2,704,129 I 12/31/95 2,598,066 2,598,066 12/3 1/96 2,584,786 2,584,786 12/31/97 2,418,723 2,418,723 12/3 1/98 2,266,704 2,266,704 I 12/3 1/99 2,060,50 I 2,060,501 12/3 1/00 1,911,904 1,911,904 12/31/01 1,914,347 1,914,347 I 12131/02 2,063,450 2,063,450 General Retirement Plan (City 1949) 01/01/93 $ 47,314,256 $ 38,551,529 $ (8,762,727) 123 % $ 7,397,577 (119) % I 01/0 1/94 49,875,350 36,456,408 (13,418,942) 137 7,243,580 (185) 01/01/95 47,710,074 39,699,516 (8,0 10,558) 120 7,053,091 (114) 01/01/96 56,004,033 41,587,715 ( 14,416,318) 135 6,345,073 (227) 01/01/97 59,413,476 42,712,240 (16,701,236) 139 5,165,172 (323 ) I 01101/99 7\,138,8\5 5\ ,388,074 (\9,750,741) \38 5,794,554 (341) 01/01/00 70,974,830 54,306,953 (16,667,877) 13\ 5,1\2,578 (326) 01101/01 70,721,724 54,824,779 ( 15,896,945) 129 5,237,225 (304) 01/01/02 66,542,266 52,471,765 (14,070,50 I) 127 5,473,137 (257) I GMEBS 03/01/94 $ 2,754,9\8 $ 2,903,208 $ 148,290 95 % $ 10,375,830 1.0 % 03/01/95 3,35\ ,907 3,315,936 (35,971 ) 101 10,657,439 (,3) I 03/01/96 3,731,118 3,568,982 (162,136) 105 9,369,684 (2,0) 03/01/97 4,144,704 5,312,277 1,167,573 78 8,082,062 14,0 03/01/98 4,609,848 5,756,304 1,146,456 80 8,913,934 13,0 03/01/00 5,559,655 6,422,50 I 862,846 86 7,719,739 11.2 I 03/01/02 6,308,424 6,887,424 579,000 91 6,913,560 8.4 03/01/03 6,477,885 7,146,314 668,429 90 6,988,509 9,6 . . . - 78 AUGUST A, GEORGIA ~~ Defined Benefit Pension Trusts - Required Supplementary ][nformation - Continued December 31,2002 --- B. Schedules of employer contributions Fiscal Annual Required Percentage Year Contribution Contributed 1945 Plan 1994 $ - % 1995 1996 1998 1999 2000 2001 2002 1977 Plan 1994 $ - % 1995 1996 1997 600,260 100 1998 897,930 100 1999 1,124,928 100 2000 940,054 100 2001 979,131 100 2002 746,287 100 General Pension Plan 1994 $ 111,109 100 % 1995 125,174 100 1996 125,874 100 1997 139,861 100 1998 107,338 100 1999 I13,S07 100 2000 102,476 100 2001 89,008 100 2002 23,348 100 Policemen's Pension Plan 1994 $ 80,866 100 % 1995 69,407 100 1996 69,407 100 1997 79,952 100 1998 63,169 100 1999 53,823 100 2000 44,880 100 2001 64,863 100 2002 66,888 100 Firemen's Pension Plan 1994 $ 212,392 100 % 1995 204,492 100 1996 200,757 100 1997 249,706 100 1998 237,914 100 1999 240,623 100 2000 205,435 100 2001 214,272 100 2002 206,334 100 79 I I I I I I I I I I I I I I I I . . . - AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued December 31,2002 B. Schedules of employer contributions (Continued) Fiscal Annual Required Percentage Year Contribution Contributed City 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 General Retirement Plan (City 1949) 1994 $ % 1995 1996 1997 1998 1999 2000 2001 2002 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 C. Notes to required supplementary information 1945 Plan 1977 Plan Valuation date Actuarial cost method Amortization method Amortization period Actuarial asset valuation method Actuarial assumptions: Investment rate of retum Projected salary increases Post retirement benefit increases Inflation 1/1/02 Attained age aggregate Level percentage of payroll Average future working lifetime Market value 1/1/02 Attained age aggregate Level of percentage of pay Average future working lifetime Market value 8% 5% 5% 5% 8% 5% 5% 5% 80 AUGUSTA, GEORGIA Defined Benefit Pension Trusts - Required Supplementary Information - Continued December 31,2002 C. Notes to required supplementary information (Continued) Valuation date Actuarial cost method Amortization method Amortization period Actuarial asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Post retirement benefit increases Inflation Valuation date Actuarial cost method Amortization method Amortization period Actuarial asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Post retirement benefit increases Inflation Valuation date Actuarial cost method Amortization method Amortization period Actuarial asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Post retirement benefit increases Inflation General Pension Plan 12/3 1/02 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A Firemen's Pension Plan 12/3 1/02 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A General Retirement Pension Plan (City 1949) 01/01/02 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% 5,5% 4% 4% 81 Policemen's Pension Plan 12/31/02 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A City Employees' Pension Plan 12/3 1/02 Actuarial present value of total Projected benefits N/A N/A N/A 8% N/A N/A N/A GMEBS 03/0 I /2003 Projected unit credit Level dollar 30 years open Roll forward prior year's actuarial value with contributions, disbursements, and expended return of investments, plus 10% of investment gains (losses) during 10 prior years, 8% 5.5% None None I I I I I I I I I I I I I COMBINING AND INDIVIDUAL FUND STATEMENTS - S2 = 83 I I I I I I I I I I I I I I I I NONMAJOR GOVERNMENTAL FUNDS . . I - I 84 !! Augusta, Georgia Combining Balance Sheet Nonmajor Governmental Funds December 31, 2002 Special Debt Capital Revenue Service Project Funds Funds Funds Assets Cash and temporary investments $ 9,354,3S9 $ 1,254,812 $ 19,590,038 Receivables (net of allowance for doubtful accounts) Taxes 3,2SI,S55 91,445 Accounts 990,576 1,606 Interest 62,988 55,154 Note 562,005 Intergovernmental 155,253 Restricted assets Reserve account 1,42S,2S5 Sinking fund account 578,922 Perpetual care Due from other funds 1,037,035 4,059 Total assets $ 16,023,023 $ 2,7S0,207 $ 19,645,192 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ S10,865 $ $ I I, I 20 Accrued interest 152,S09 Due to other funds 1,166,373 Accrued salaries and vacation 130,628 Other accrued liabilities 63,952 Deferred revenue 3,248,3S4 90,923 Total liabilities 5,573,011 90,923 I 1,120 Fund balances (deficits): Reserved for: Encumbrances 467,511 754,203 Special sales tax projects 18,371,099 Special purposes 662,747 Debt service 2,6S9,284 Designated for: Capital improvements 244,S33 Unreserved - undesignated 9,319,754 263,937 Total fund balances (deficits) 10,450,012 2,6S9,2S4 19,634,072 Total liabilities and fund balances (deficits) $ 16,023,023 $ 2,780,207 $ 19,645, I 92 85 . . 86 - Augusta, Georgia ~ Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended December 31,2002 - -- Special Debt Capital Revenue Service Project Funds Funds Funds Revenues Taxes - property $ 1O,4S9,999 $ 2 12,S93 $ Taxes - other than property 12,033,360 26 Licenses and permits 2,OS2,30S Use of money and property 456,195 13,S34 428,030 Charges for current services 3,109,71 I 39S Fines and forfeitures 313,301 Intergovernmental 5,SO I ,656 43,SSI Contributions and donations 240,814 Other 373,73 I 7,44S Total revenues 34,90 I ,075 226,753 479,757 Expenditures Current: General government 1,404,192 Judicial 378,582 Public safety 2,894,016 Public works 3,063,764 29,441 Culture and recreation 374,107 Housing and development 9,222,605 Capital outlay 1,059,813 216,414 Debt service 1,296,683 1,527,S89 Total expenditures 19,693,762 1,527,8S9 245,855 Excess (deficiency) of revenues over (under) expenditures 15,207,313 (1,301,136) 233,902 Other financing sources (uses) Transfers in 367,429 Transfers (out) (15,856,382) Transfers between nonmajor governmental funds (275,000) 275,000 Total other fmancing sources (uses) (15,763,953) 275,000 Net change in fund balances (556,640) (1,301,136) 508,902 Fund balance - beginning 11,506,162 3,990,420 19,125,170 Prior period adjustment (499,510) Fund balance - beginning as restated I 1,006,652 3,990,420 19,125,170 Fund balance - ending $ 10,450,012 $ 2,689,284 $ 19,634,072 87 I I I I Permanent Total Nonmajor Fund Governmental Perpetual Care - II Funds I $ $ 10,702,892 12,033,3S6 2,082,30S I 123 S9S, I S2 3,110,109 313,301 I 5,845,537 240,814 381,179 123 35,607,708 I I S95 1,405,OS7 37S,5S2 2,894,016 I 3,093,205 374,107 9,222,605 I 1,276,227 2,824,572 S95 21 ,46S,40 I I (772) 14,139,307 I 367,429 (I5,S56,3S2) I (I 5,4S8,953) (772) (1,349,646) I 279,509 34,90 I ,26 I (499,510) . 279,509 34,401,751 $ 27S,737 $ 33,052,105 - 88 I - Augusta, Georgia Combining Balance Sheet Nonmajor Special Revenue Funds December 31,2002 - e .. !! Emergency Urban Services Telephone Capital Law District System Outlay Enforcement - -- Assets Cash and temporary investments $ 1,707,777 $ $ 2,420,052 $ 440,842 Receivables (net of allowance for doubtful accounts) Taxes 1,996,691 676,663 Accounts 584,817 277,419 5,5S8 5,660 Interest 5,627 Note 42,920 Intergovernmental Restricted assets Sinking fund account Due from other funds 771,188 216,191 Total assets $ 5, I 09,020 $ 277,419 $ 3,3 I 8,494 $ 446,502 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ 118,103 $ 4,415 $ 304,567 $ Accrued interest Due to other funds 322,945 Accrued salaries and vacation 13,753 69,060 Other accrued liabilities 42,525 21,300 Deferred revenue 1,423,27S 460,769 Total liabilities 1,597,659 396,420 786,636 Fund balances (deficits): Reserved for: Encumbrances 8,684 21,358 416,695 Special purposes Unreserved - undesignated 3,502,677 (140,359) 2,115,163 446,502 Total fund balances (deficits) 3,511,361 (119,001) 2,531,858 446,502 Total liabilities and fund balances (deficits) $ 5,109,020 $ 277,419 $ 3,3 I S,494 $ 446,502 89 Augusta, Georgia Combining Balance Sheet Nonmajor Special Revenue Funds - Continued December 31,2002 Downtown State 5% Victim's Development Capital Law Crime Authority Grants Library Assistance Assets Cash and temporary investments $ 95,458 $ $ $ 529,21S Receivables (net of allowance for doubtful accounts) Taxes Accounts 4,744 25,303 Interest Note Intergovernmental Restricted assets Sinking fund account 578,922 Due from other funds Total assets $ 674,380 $ $ 4,744 $ 554,521 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ $ $ 40 $ 326 Accrued interest 152,809 Due to other funds 547,595 27,265 Accrued salaries and vacation 13,917 Other accrued liabilities 127 Deferred revenue Total liabilities 700,404 27,305 14,370 Fund balances (deficits): Reserved for: Encumbrances 33 Special purposes Unreserved - undesignated (26,024) (22,561 ) 540,118 Total fund balances (deficits) (26,024) (22,561 ) 540,151 Total liabilities and fund balances (deficits) $ 674,380 $ $ 4,744 $ 554,521 91 I I I I Supplemental Weed and Total Nonmajor Juvenille Building Seed Federal Wireless Communtiy Perpetual Special Revenue Services Inspection Grant Phase Greenspace Care - I Funds I $ 46,073 $ $ $ 434,553 $ 683,489 $ 672,532 $ 9,354,389 I 3,28 I ,S55 800 2,637 990,576 I 5,304 62,9S8 562,005 155,253 155,253 I 578,922 1,037,035 $ 46,873 $ $ 155,253 $ 434,553 $ 683,489 $ 680,473 $ 16,023,023 I I $ $ $ 1,829 $ $ $ 2,334 $ S10,865 152,809 111,980 1,166,373 7,489 130,628 I 63,952 683,489 3,248,384 12 I ,29S 683,489 2,334 5,573,01 I I I 143 14,543 556 467,511 662,747 662,747 46,730 19,412 434,553 14,836 9,3 I 9,754 46,S73 33,955 434,553 678,139 10,450,012 I $ 46,S73 $ $ 155,253 $ 434,553 $ 683,489 $ 680,473 $ 16,023,023 - . - - 92 -- Augusta, Georgia Combining Statement of Revenues, Expenditures and Changes in Fund Balances NonmajorSpecial Revenue Funds Year Ended December 31, 2002 Emergency Urban Services Telephone Capital Law District System Outlay Enforcement Revenues Taxes - property $ 6,550,084 $ $ 2,829,473 $ Taxes - other than property 7,979,456 Licenses and permits Use of money and property 21,478 3,191 323,281 6,824 Charges for current services 2,562,057 237,445 Fines and forfeitures 80 Intergovernmental Contributions and donations 238,514 Other 263 36,521 Total revenues 14,789,795 2,565,248 3,IS9,355 244,269 Expenditures Current: General government 54,000 305,736 960,559 Judicial 1,829 Public safety 2,399,183 36,041 50,260 Public works 1,639, I 73 76,616 Culture and recreation 57,240 Housing and development 104,917 Capital outlay 6,244 6,738 633,852 18,663 Debt service 267,056 Total expenditures 2,071,390 2,71 1,657 1,766,137 68,923 Excess (deficiency) of revenues over (under) expenditures 12,718,405 (146,409) 1,423,218 175,346 Other financing sources (uses) Transfers in Transfers (out) (11,349,970) (2,641,827) (15,000) Transfers between nonmajor special revenue funds (773,222) 196,638 Total other financing sources (uses) (12,123,192) 196,638 (2,641,827) (15,000) Net change in fund balances (deficits) 595,213 50,229 (1,2 I 8,609) 160,346 Fund balance (deficits) - beginning 2,916,148 (169,230) 3,750,467 286, I 56 Prior period adjustment Fund balance (deficits) - beginning as restated 2,916,148 (169,230) 3,750,467 286,156 Fund balance (deficits) - ending $ 3,511 ,361 $ (119,001) $ 2,531,858 $ 446,502 93 3,037 203,606 23,620 1,042,452 1,545,996 $ 3,057 $ (71,618) $ 18,376 $ 1,162,967 $ 1,28 I ,424 94 ~~ - Augusta, Georgia - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Continued Nonmajor Special Revenue Funds Year Ended December 31,2002 Downtown State 5% Victim's Development Capital Law Crime Authority Grants Library Assistance Revenues Taxes - property $ $ $ $ Taxes - other than property 417,135 Licenses and permits Use of money and property 8,906 Charges for current services 10,906 Fines and forfeitures 313,221 Intergovernmental 29,399 Contributions and donations Other Total revenues 417,135 362,432 Expenditures Current: General government Judicial 212 366,184 Public safety Public works Culture and recreation Housing and development Capital outlay Debt service 858,227 Total expenditures 858,227 212 366, I 84 Excess (deficiency) of revenues over (under) expenditures (441,092) (211) (3,752) Other financing sources (uses) Transfers in Transfers (out) (40,000) Transfers between nonmajor special revenue funds 475,196 Total other financing sources (uses) 475, I 96 (40,000) Net change in fund balances (deficits) 34,104 (2 I I) (43,752) Fund balance (deficits) - beginning (60,128) (22,350) 583,903 Prior period adjustment Fund balance (deficits) - beginning as restated (60,128) (22,350) 583,903 Fund balance (deficits) - ending $ (26,024) $ $ (22,561 ) $ 540,151 95 I .. Augusta, Georgia Urban Services District Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 I . -- iii ;: Actual Variance with Final Budget - Positive (Negative) ;,;;;;;; Budget 2001 Actual Revenues Taxes - property Taxes - other than property Use of money and property Contributions and donations Other Total revenues $ 6,549,838 $ 6,550,084 $ 246 $ 6,371,156 7,783,792 7,979,456 195,664 8,009, I 34 12,000 21,478 9,478 40,087 238,514 238,514 166,415 263 263 194 14,345,630 14,789,795 444,165 14,586,986 Expenditures Current: General government Public works Housing and development Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures 219,682 54,000 165,682 53,124 1,684, I 28 1,639,173 44,955 4,140,305 121,187 104,917 16,270 62,434 120,000 6,244 113,756 444,081 581,426 267,056 314,370 220,170 2,726,423 2,071,390 655,033 4,920,114 11,619,207 12,718,405 1,099,198 9,666,872 (11,619,207) (12,123,192) (503,985) (8,955,211 ) 324,605 (11,619,207) (12,123,192) (503,985) (8,630,606) $ 595,213 $ 595,213 1,036,266 2,916,148 1,879,882 $ 3,511,361 $ 2,916,148 Other financing sources (uses) Transfers (out) Capital lease issuance Total other financing sources (uses) Net change in fund balances Fund balance - beginning Fund balance - ending 97 I I I Augusta, Georgia Emergency Telephone System Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 1\ I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ 12,000 $ 3,191 $ (8,809) $ 2,570,000 2,562,057 (7,943) 2,455,789 1,033 2,582,000 2,565,248 (16,752) 2,456,822 I Revenues Use of money and property 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 I Net change in fund balances 330,800 305,736 25,064 361,000 2,367,164 2,399,183 (32,019) 2,292,184 91,974 6,738 85,236 109,923 2,789,938 2,711,657 78,281 2,763,107 (207,938) (146,409) 61,529 (306,2S5) 207,938 196,638 (11,300) (400,056) 207,938 196,638 (11,300) (400,056) $ 50,229 $ 50,229 (706,341 ) (169,230) 537,111 $ (I 19,00 I) $ (I 69,230) I I Other financing sources (uses) Transfers (out) Total other financing sources (uses) I Fund balance (deficit) - beginning Fund balance (deficit) - ending I I - -. ." ... - 98 ! iiiii Augusta, Georgia Capital Outlay Fund Statement of Revenues, Expenditures and Changes in Fund ]Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Taxes - property $ 3,080,159 $ 2,S29,473 $ (250,686) $ 2,810,650 Use of money and property 2,000 323,281 321,281 1,150 Charges for current services 10,000 (10,000) Fines and forfeitures 80 80 Other 36,521 36,521 Total revenues 3,092, I 59 3,189,355 97,196 2,811,800 Expenditures Current: General government 1,117,097 960,559 156,538 23,031 Judicial 14,265 1,829 12,436 4,466 Public safety 516,741 36,041 480,700 Public works 592,250 76,616 515,634 6,830 Culture and recreation 25,734 57,240 (31,506) Capital outlay 2,229,046 633,852 1,595,194 71,136 Total expenditures 4,495,133 1,766,137 2,728,996 105,463 Excess (deficiency) of revenues over (under) expenditures (1,402,974) 1,423,218 2,826,192 2,706,337 Other financing sources (uses) Transfers (out) 1,402,974 (2,641,827) (4,044,80 I) (2,547,321 ) Total other financing sources (uses) 1,402,974 (2,641,827) (4,044,801) (2,547,321) Net change in fund balances $ (1,218,609) $ (1,218,609) 159,016 Fund balance - beginning 3,750,467 3,591,451 Fund balance - ending $ 2,53 I ,S58 $ 3,750,467 99 I I Augusta, Georgia Law Enforcement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 I I I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ 10,000 $ 6,824 $ (3,176) $ 13,863 118,301 237,445 119,144 91,166 128,301 244,269 115,968 105,029 I Revenues Use of money and property Charges for current services Total revenues I Expenditures Current: General government Public safety Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures I Other financing sources (uses) Transfers (out) Total other financing sources (uses) 44,378 44,378 50,260 50,260 7,481 18,663 18,663 113,301 68,923 44,378 7,481 15,000 175,346 160,346 97,548 (15,000) (15,000) (15,000) (I 5,000) $ 160,346 $ 160,346 97,548 286,156 188,608 $ 446,502 $ 286,156 I I I Net change in fund balances Fund balance - beginning I Fund balance - ending .. ..' .. 100 I .. - ~ Augusta, Georgia Occupation Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Taxes - other than property $ $ $ $ 368 Licenses and permits 2,028,000 2,082,308 54,308 1,942,123 Use of money and property 30,000 12,656 (17,344) 33,703 Other 2,141 2,141 562 Total revenues 2,058,000 2,097,105 39,105 1,976,756 Expenditures Current: General government 12,500 12,500 12,500 Total expenditures 12,500 12,500 12,500 Excess (deficiency) of revenues over (under) expenditures 2,045,500 2,084,605 39,105 1,964,256 Other financing sources (uses) Transfers (out) (2,045,500) (2,084,585) (39,085) (1,961,219) Total other financing sources (uses) (2,045,500) (2,084,585) (39,085) (1,961,219) Net change in fund balances $ 20 $ 20 3,037 Fund balance - beginning 3,037 Fund balance - ending $ 3,057 $ 3,037 101 I I I Augusta, Georgia Special Assessment Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 I I, I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ 1,594,228 $ 1,110,442 $ (483,786) $ 1,397,145 1,332 22 1,594,228 1,110,442 (483,786) 1,398,499 I, Revenues Taxes - property Taxes - other than property Other Total revenues I' Expenditures Current: General government Public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 3,847 3,847 1,515,381 1,347,975 167,406 1,327,433 75,000 37,691 37,309 30,554 1,594,228 1,385,666 208,562 1,357,987 (275,224) (275,224) 40,512 II I I Net change in fund balances $ (275,224) $ (275,224) 40,512 g, Fund balance - beginning 203,606 163,094 Fund balance (deficit) - ending $ (71,618) $ 203,606 u I I I I I, Ii 102 Variance witb I I I I I 2001 Actual !!!! - - ~ Augusta, Georgia Promotiontrourism Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 Budget Actual Final Budget - Positive (Negative) Revenues Taxes - property Taxes - other than property Other Total revenues 3,780,000 3,636,769 10,484 3,647,253 (143,231) 10,484 (132,747) $ 10,891 3,632,325 - $ $ $ 3,780,000 3,643,216 Expenditures Current: Culture and recreation Housing and development Total expenditures Excess (deficiency) of revenues over (under) expenditures 300,000 300,146 (146) 301,480 3,480,000 3,352,351 127,649 3,341,569 3,780,000 3,652,497 127,503 3,643,049 (5,244) (5,244) 167 $ (5,244) $ (5,244) 167 23,620 23,453 $ 18,376 $ 23,620 Net cbange in fund balances Fund balance - beginning Fund balance - ending 103 I I I Augusta, Georgia Housing and Neighborhood Development Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 I I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ $ 2,262 $ 2,262 $ 3,598 6,407,414 5,188,594 (1,218,820) 6,347,006 230,000 324,321 94,321 413,757 6,637,414 5,515, 177 (1 , 122,237) 6,764,361 I Revenues Use of money and property Intergovernmental Other Total revenues I I Expenditures Current: General government Housing and development Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures 131,099 71,397 6,622,941 5,449,891 10,000 171,400 171,400 6,935,440 5,692,688 (298,026) (177,511) 298,026 298,026 298,026 298,026 $ 120,515 $ 1,042,452 $ 1,162,967 59,702 90,042 1,173,050 6,324,402 10,000 37,659 171,419 1,242,752 6,623,522 120,515 140,839 I I Other financing sources (uses) Transfers (out) Total other financing sources (uses) I Net change in fund balances 120,515 140,839 I Fund balance - beginning 901,613 I Fund balance - ending $ 1,042,452 I I I . . 104 .- Augusta, Georgia Urban Development Action Grant Fund (UDAG) Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Use of money and property $ 75,000 $ 31,364 $ (43,636) $ 76,703 Other 150 Total revenues 75,000 31,364 (43,636) 76,853 Expenditures Current: Housing and development 577,000 295,936 281,064 248,067 Capital outlay 3,250,000 Total expenditures 577,000 295,936 281,064 3,498,067 Excess (deficiency) of revenues over (under) expenditures (502,000) (264,572) 237,428 (3,421,214) Other financing sources (uses) Transfers in 502,000 (502,000) Total other financing sources (uses) 502,000 (502,000) Net change in fund balances $ (264,572) $ (264,572) (3,421,214) Fund balance - beginning 1,545,996 4,967,210 Fund balance - ending $ 1,281,424 $ 1,545,996 105 I I Augusta, Georgia Downtown Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 I I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ $ $ $ 4,008 400,000 417,135 17,135 438,515 400,000 417,135 17,135 442,523 I I Revenues Taxes - property Taxes - other than property Use of money and property Total revenues I Expenditures Current: Housing and development Debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers (out) Total other financing sources (uses) 10,443 875,196 858,227 16,969 1,169,461 875,196 858,227 16,969 1,179,904 (475,196) (441,092) 34,104 (737,381) 475,196 475,196 7S3,414 475,196 475,196 783,414 $ 34,104 $ 34,104 46,033 (60,128) (106,161) $ (26,024 ) $ (60,128) I . Net change in fund balances Fund balance (deficit) - beginning Fund balance (deficit) - ending 106 Augusta, Georgia State Capital Grants Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 Budget Actual Variance with Final Budget - Positive (Negative) Other fmancing sources (uses) Transfers (out) Total other financing sources (uses) $ $ $ Net change in fund balances $ $ Fund balance - beginning Fund balance - ending $ 107 2001 Actual $ (665) (665) (665) 665 $ I I Augusta, Georgia Law Library Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 I I I I Budget Actual I Revenues Other Total revenues $ $ I Expenditures Current: Judicial Total expenditures Excess (deficiency) of revenues over (under) expenditures (211 ) I I Other financing sources (uses) Net change in fund balances $ (211) $ I Fund balance (deficits) - beginning (22,350) I Fund balance (deficits) - ending $ (22,561) I I I I I I I 108 Variance with Final Budget - Positive (Negative) $ 212 212 (212) (212) (211) (211) 2001 Actual $ (22,350) $ (22,350) - . .- - Iii Augusta, Georgia 5% Victim's Crime Assistance Fund III Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Nonmajor Special Revenue Funds Year Ended December 31,2002 ~ Variance with Final Budget - - Positive 2001 Budget Actual (Negative) Actual Revenues Use of money and property $ 22,636 $ 8,906 $ (13,730) $ 23,164 Charges for current scrvices 10,906 10,906 Fines and forfeiturcs 368,643 313,221 (55,422) 374,221 Intergovcmmcntal 29,399 29,399 Othcr 151 Total revenues 391,279 362,432 (28,847) 397,536 Expenditures Current General government 21,390 21,390 Judicial 363,696 366,184 (2,488) 316,646 Capital outlay 4 1,693 41,693 198 Total expenditures 426,779 366,184 60,595 316,844 Excess (deficiency) of revenues over (under) expenditures (35,500) (3,752) 31,748 80,692 Other financing sources (uses) Transfcrs in 75,500 (75,500) Transfers (out) (40,000) (40,000) Total other financing sourccs (uscs) 35,500 (40,000) (75,500) Net change in fund balances $ (43,752) $ (43,752) 80,692 Fund balance - beginning 583,903 503,211 Fund balance - ending $ 540,151 $ 583,903 109 I I Augusta, Georgia Supplemental Juvenile Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2002 I I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ 1,000 $ 675 $ (325) $ 1,340 14,000 15,849 1,849 17,550 15,000 16,524 1,524 18,890 I I Revenues Use of money and property Charges for current services Total revenues I Expenditures Current: Judicial Capital outlay Total expenditures Excess (deficiency) ofrevenues over (under) expenditures 15,000 10,357 4,643 5,416 3,289 15,000 10,357 4,643 8,705 6,167 6,167 10,185 $ 6,167 $ 6,167 10,IS5 40,706 30,521 $ 46,873 $ 40,706 I I Net change in fund balances I Fund balance - beginning Fund balance - ending I I I I - 110 Augusta, Georgia Weed and Seed Federal Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Intergovernmental $ 252,263 $ 249,328 $ (2,935) $ 313,651 Contributions and donations 2,300 2,300 1,321 Other 129 Total revenues 252,263 251,628 (635) 315,101 Expenditures Current: General government 634 634 Public safety 221,719 218,062 3,657 224,365 Capital outlay 29,910 30,000 (90) Total expenditures 252,263 248,062 4,201 224,365 Excess (deficiency) of revenues over (under) expenditures 3,566 3,566 90,736 Net change in fund balances $ 3,566 $ 3,566 90,736 Fund balance - beginning 30,389 (60,347) Fund balance - ending $ 33,955 $ 30,389 III I I Augusta, Georgia I Wireless Phase Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds I Year Ended December 31, 2002 I Variance with Final Budget - Positive 2001 I Budget Actual (Negative) Actual Revenues I Use of money and property $ 12,000 $ 3,904 $ (8,096) $ 15,754 Charges for current services 255,000 281,751 26,751 200,992 Total revenues 267,000 285,655 18,655 216,746 I Expenditures Current: General government 70,362 70,362 15,640 I Public safety 191,728 190,470 1,258 65,156 Total expenditures 262,090 190,470 71,620 80,796 Excess (deficiency) of revenues over (under) expenditures 4,910 95,185 90,275 135,950 I Other financing sources (uses) Transfers in 191,728 (191,728) 400,056 I Transfers (out) ( 196,63 8) (196,638) Total other financing sources (uses) (4,910) (196,63S) (191,728) 400,056 I Net change in fund balances $ (101,453) $ (101,453) 536,006 Fund balance - beginning 536,006 - Fund balance - ending $ 434,553 $ 536,006 112 Augusta, Georgia Community Greenspace Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Use of money and property $ $ 11,800 $ 11,800 $ 9,811 Intergovernmental 486,276 334,335 ( 151 ,941 ) 594,699 Total revenues 486,276 346,135 (140,141) 604,510 Expenditures Current: Housing and development 55,000 19,510 35;490 105,000 Capital outlay 431,276 326,625 104,651 Total expenditures 486,276 346,135 140,141 105,000 Excess (deficiency) of revenues over (under) expenditures 499,510 Net change in fund balances $ $ 499,510 Fund balance - beginning 499,510 Prior period adjustment (499,510) $ $ 499,510 Fund balance - ending 113 I I I Augusta, Georgia Perpetual Care - I Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31,2002 I I I Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual $ 39,000 $ 29,854 $ (9,146) $ 44,841 1,703 1,703 2,389 39,000 31,557 (7,443) 47,230 I Revenues Use of money and property Charges for current services Total revenues I Expenditures Current Culture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures I 39,000 16,721 22,279 30,989 212 212 180 39,212 16,721 22,491 31,169 (212) 14,836 15,048 16,061 212 (212) 15,000 212 (212) 15,000 $ 14,836 $ 14,836 31,061 663,303 632,242 $ 678,139 $ 663,303 I Other financing sources (uses) Transfers in Total other financing sources (uses) I I Net change in fund balances Fund balance - beginning I Fund balance - ending I I - 114 Augusta, Georgia Combining Balance Sheet Nonmajor Debt Service Funds December 31, 2002 Total NODmajor Urban Debt Service Debt Service Debt Service Funds Assets Cash and temporary investments $ 673,722 $ 581,090 $ 1,254,SI2 Receivables (net of allowance for doubtful accounts) Taxes 50,696 40,749 91,445 Accounts 1,606 1,606 Certificates of participation investments Reserve account I,42S,2S5 I,428,2S5 Due from other funds 4,059 4,059 Total assets $ 2,15S,36S $ 621,839 $ 2,7S0,207 Liabilities and fund balances Liabilities: Deferred revenue 52,399 38,524 90,923 Total liabilities 52,399 38,524 90,923 Fund balances: Debt service 2,105,969 5S3,315 2,6S9,2S4 Total fund balances 2,105,969 5S3,315 2,6S9,2S4 Total liabilities and fund balances $ 2,158,368 $ 62 I ,839 $ 2,780,207 115 I I I I I I I I I I I I Augusta, Georgia Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year Ended December 31,2002 Total Nonmajor Urban Debt Service Debt Service Debt Service Funds Revenues Taxes - property $ 155,IS2 $ 57,71 I $ 2I2,S93 Taxes - other than property 26 26 Use of money and property 13,S34 13,S34 Total revenues 155,IS2 7 I ,57 I 226,753 Expenditures Debt service 1,141,S27 3S6,062 I,527,SS9 Total expenditures 1,141,827 3S6,062 I,527,SS9 Excess (deficiency) of revenues over (under) expenditures (9S6,645) (314,491) (1,301,136) Net change in fund balances (9S6,645) (314,491) (1,301,136) Fund balance - beginning 3,092,614 S97,S06 3,990,420 Fund balance - ending $ 2, I 05,969 $ 5S3,315 $ 2,689,284 . I - . 116 Augusta, Georgia Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31, 2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Taxes - property $ 972,646 $ 155,IS2 $ (S I 7,464) $ 905,402 Use of money and property Total revenues 972,646 155,IS2 (S I 7,464) 905,402 Expenditures Debt service 1,010,100 1,141,S27 (13 I ,727) 919,607 Total expenditures 1,010,100 1,141,827 (131,727) 919,607 Excess (deficiency) of revenues over (under) expenditures (37,454) (986,645) (949,191 ) (14,205) Transfers in 37,454 (37,454) Total other financing sources (uses) 37,454 (37,454) Net change in fund balances $ (986,645) $ (986,645) (14,205) Fund balance - beginning 3,092,614 3,106,819 Fund balance - ending $ 2,105,969 $ 3,092,614 117 I I I I I I I I I . . -- - - Augusta, Georgia Urban Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31,2002 Variance with Final Budget - Positive 2001 Budget Actual (Negative) Actual Revenues Taxes - property $ 377,875 $ 57,711 $ (320,164) $ 611,975 Taxes - other than property 26 26 Use of money and property 9,000 13,S34 4,S34 25,562 Total revenues 386,875 71,571 (315,304) 637,537 Expenditures Debt service 3S6,875 386,062 SI3 37S,901 Total expenditures 3S6,875 3S6,062 S13 37S,90 I Excess (deficiency) of revenues over (under) expenditures' (314,491) (314,491 ) 258,636 Net change in fund balances $ (314,491 ) $ (314,491) 258,636 Fund balance - beginning S97,S06 639,170 Fund balance - ending $ 583,3 I 5 $ 897,806 118 Augusta, Georgia Combining Balance Sheet Nonmajor Capital Project Funds December 31,2002 Total Nonmajor Community Special Sales Special Sales Capital Project Development Tax Phase I Tax Phase II Funds Assets Cash and temporary investments $ 50S,770 $ 4,304,314 $ 14,776,954 $ 19,590,03S Receivables (net of allowance for doubtful accounts) Interest 55,154 55,154 Total assets $ 50S,770 $ 4,304,314 $ 14,S32,IOS $ 19,645,192 Liabilities and fund balances Liabilities: Accounts payable $ $ $ 11,120 $ 11,120 Total liabilities I I, I 20 11,120 Fund balances: Encumbrances 137,609 616,594 754,203 Special sales tax projects 4, I 66,705 14,204,394 18,371,099 Capital improvements 244,833 244,833 Unreserved - undesignated 263,937 263,937 Total fund balances 508,770 4,304,314 14,S20,98S 19,634,072 Total liabilities and fund balances $ 508,770 $ 4,304,314 $ 14,S32,IOS $ 19,645,192 119 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, 2002 Revenues Use of money and property Charges for current services Intergovernmental Other Total revenues Total Nonmajor Community Special Sales Special Sales Capital Project Development Tax Phase I Tax Phase II Funds $ 1,269 $ 76,793 $ 349,96S $ 428,030 15 3S3 39S 19,5S4 24,297 43,SS I 7,448 7,44S 1,269 103,S40 374,64S 479,757 Expenditures I Current: Public works Capital outlay I Total expenditures - Excess (deficiency) of revenues over (under) expenditures I I I I I 12,332 17,109 29,441 216,414 216,414 12,332 233,523 245,S55 (I 1,063) 103,840 141,125 233,902 275,000 275,000 275,000 275,000 263,937 103,840 141,125 508,902 244,S33 4,200,474 14,679,S63 19,125,170 $ 508,770 $ 4,304,3 14 $ 14,S20,9SS $ 19,634,072 Other financing sources (uses) Transfers (out) Total other financing sources (uses) Net change in fund balances Fund balance - beginning Fund balance - ending I I I I I 120 121 I I I I I I I I I I I I I I I I I I I NONMAJOR ENTERPRISE FUNDS 122 Augusta, Georgia Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2002 Municipal Waste Golf Management Course Transit Assets Current assets Cash and temporary investments $ S,240,227 $ 179 $ 1,150 Receivables Taxes Accounts 1,03 1,209 Interest Intergovernmental 9 I ,666 Inventory 11,150 176,499 Due from other funds Total current assets 9,27 I ,436 I 1,329 269,315 Noncurrent assets Capital assets, net 4,436,659 1,534,339 4,510,900 4,436,659 1,534,339 4,510,900 Total assets $ 13,70S,095 $ 1,545,668 $ 4,7S0,215 Liabilities and net assets Current liabilities Accounts payable $ 109,454 $ 22,S06 $ 23,329 Due to other funds 182,767 1,230,297 Accrued salaries and vacation 62,500 13,999 163,557 Other accrued liabilities 163,548 2,223 Total current liabilities 335,502 221,795 1,417,183 Noncurrent liabilities Closure/postclosure accrual 11,022,500 Total noncurrent liabilities 11,022,500 Total liabilities lI,35S,002 221,795 1,417,183 Net assets Invested in capital assets, net of related debt 4,436,659 1,534,339 4,5 10,900 Unrestricted (2,OS6,566) (210,466) (1,147,S68) Total net assets 2,350,093 1,323,S73 3,363,032 Total liabilities and net assets $ 13,70S,095 $ 1,545,66S $ 4,780,215 123 124 Augusta, Georgia Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds Year Ended December 31, 2002 Municipal Waste Golf Management Course Transit Operating revenues Charges and fees $ 5,465,843 $ 699,745 $ 754,118 Total operating revenues 5,465,S43 699,745 754,118 Operating expenses Personal services and employee benefits 826,090 265,036 2,365,423 Purchased/contracted services S46,516 46,612 73,165 Supplies 242,S96 195,125 292,416 Repairs and maintenance 138,970 21,616 281,357 Interfund/interdepartmental charges 365,766 22,300 239,570 Depreciation 1,046,554 39,463 526,2 I 5 Closure/postclosure accrual 900,760 Total operating expenses 4,367,552 590, 152 3,778,146 Operating income (loss) I ,09S,29 I 109,593 (3,024,028) Nonoperating revenue (expense) Interest revenue 102,913 2,3S6 Sale of property 135,935 27 ,220 Other revenue (expense) 4,OS6 Intergovernmental 36,411 893,698 Interest expense (5 I ,678) (95,015) (22,620) Total nonoperating revenue (expense) 223,581 (SS,543) S98,298 Income (loss) before transfers 1,321,872 21,050 (2,125,730) Transfers in 779,730 1,350,000 Change in net assets 1,32 I ,872 SOO,7S0 (775,730) Total net assets - beginning 1,028,221 523,093 4,138,762 Total net assets - ending $ 2,350,093 $ 1,323,S73 $ 3,363,032 125 Augusta, Georgia Combining Statement of Cash Flows Nonmajor Enterprise Funds Year Ended December 31,2002 Municipal Waste Golf Management Course Transit Operating activities Cash received from customers $ 4,806,776 $ 699,745 $ 754,330 Cash paid to suppliers (1,160,879) (248,367) (663,259) .~ Cash paid to employees (806,067) (269,999) (2,345,437) Cash paid for interfund services used (2S3,2SI ) (363,218) (171,008) Net cash provided by (used in) operating activities 2,556,549 (181,839) (2,425,374) Noncapital financing activities Transfers in 779,730 1,350,000 Operating grants 987,637 Interest expense on operating capital Net cash provided (used) by noncapital financing activities 779,730 2,337,637 Capital and related financing activities Proceeds from grants 36,411 83,137 Proceeds from sale of property 135,935 Other miscellaneous income 4,086 27,220 Purchase of capital assets (405,562) (11,595) Interest on operating capital (51,678) (22,620) Interest paid on capital debt (95,0 I 5) Principal paid on capital debt (682,790) Net cash provided (used) by capital and related financing activities (284,S94) (785,3 14) 87,737 Investing activities Interest received 102,913 2,386 Net cash provided (used) in investing activities 102,913 2,386 Net increase in cash and cash eq uivalen ts/inv estments 2,374,568 (185,037) Cash and cash equivalents/investments Beginning of year 5,865,659 185,216 1,150 End of year $ 8,240,227 $ 179 $ 1,150 127 I I I Newman Total Nonmajor I Daniel Field Tennis Garbage Enterprise Airport Center Collection Riverwalk Funds I $ 53,255 $ 213,122 $ 4,471,225 $ 82,882 $ 11,081,335 (113,073) (I 62,541) (8,006,033) (163,262) (10,517,414) (40,122) (99,873) (54,906) (3,616,404) I (7,100) (6,655) (831,262) (107,040) (55,947) (3,534,808) (135,286) (3,883,745) -'>0 I 50,000 40,000 3,322,440 150,000 5,692,170 987,637 I (2,355) (22,913) (25,268) 50,000 37,645 3,299,527 150,000 6,654,539 I 36,586 15,200 171,334 135,935 I 50,357 3,252 5,514 90,429 (417,157) (74,298) I (95,0 I 5) (682,790) 86,943 18,452 5,514 (871,562) I 8,OS7 252 113,638 S,087 252 113,638 I 37,990 150 (235,281) 20,480 2,012,870 I 335,898 50 235,281 6,623,254 $ 373,8S8 $ 200 $ $ 20,480 $ 8,636,124 I I I I I 128 Augusta, Georgia I Combining Statement of Cash Flows - Continued . Nonmajor Enterprise Funds iiii - Year Ended December 31, 2002 - - Municipal - - Waste Golf Management Course Transit '= Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) $ 1,098,291 $ 109,593 $ (3,024,02S) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 1,046,554 39,463 526,215 Closure/post closure costs 900,760 Change in assets and liabilities Accounts receivable (659,067) 212 Due from other funds 82,485 3,344 Taxes receivable Inventory (424) 3,334 Accounts payable 35,128 13,187 (19,655) Accrued salaries and vacation 20,023 (4,963) 19,986 Other accrued Iiabilites 32,375 2,223 Due to other funds (340,918) 65,218 Unearned revenue Total adjustments 1,458,258 (291,432) 598,654 Net cash provided by (used in) operating activities $ 2,556,549 $ (181,839) $ (2,425,374) 129 I I I Newman Total Nonmajor Daniel Field Tennis Garbage Enterprise I Airport Center Collection Riverwalk Funds I $ (134,293) $ (69,475) $ (2,983,4S7) $ (146,792) (5,150,191) I 53,843 1,666,075 900,760 I (36,250) 52 285,033 (410,020) (203,959) (118,130) I (I, 726,4 76) (1,726,476) (4,716) (1,806) (24,041) (1,646) 674,286 5,324 682,583 I 29S 465 6,182 41,991 (4,845) 29,753 33,403 24,218 634,561 416,482 (214,766) (214,766) I 27,253 13,528 (551,321) 11,506 1,266,446 $ (107,040) $ (55,947) $ (3,534,808) $ ( 135,286) $ (3,883,745) I I I I .. - ~ - 130 - 13 I I I I I I' I I' I I I I I I I I I ........ I I I INTERNAL SERVICE FUNDS 132 . Augusta, Georgia Combining Statement of Net Assets Internal Service Funds December 31,2002 -" ~ Risk Fleet Workers Management Operations Compensation Assets Current assets Cash and temporary investments $ 647,31 I $ 59S,321 $ 92,373 Accounts receivable rotal current assets 647,31 I 59S,321 92,373 Noncurrent assets Restricted investments Capital assets, net 73,634 Total noncurrent assets 73,634 Total assets $ 720,945 $ 598,321 $ 92,373 Liabilities and net assets Current liabilities Accounts payable $ 135,390 $ 632,443 $ S8,408 Due to other funds Accrued salaries and vacation 21,310 10,342 Other accrued liabilities Total current liabilities 156,700 642,785 88,408 Noncurrent liabilities Revenue bonds payable Total noncurrent liabilities Total liabilities 156,700 642,7S5 88,40S Net assets Invested in capital assets, net of related debt 73,634 Unrestricted 490,6 11 (44,464) 3,965 Total net assets 564,245 (44,464) 3,965 Total liabilities and net assets $ 720,945 $ 59S,32 I $ 92,373 133 Augusta, Georgia Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds Year Ended December 31,2002 Risk Fleet Workers Management Operations Compensation Operating revenues Charges and fees $ 1,596,446 $ 4,125,494 $ Total operating revenues 1,596,446 4,125,494 Operating expenses Personal services and employee benefits 220,141 97,217 Purchased/contracted services 403,470 29,13S Supplies 140,647 I I 1,338 Repairs and maintenance 3,S03,015 - - Interfund/interdepartmental charges Other costs 2,961 132,819 Depreciation 13,663 S,856 Risk benefit charges 801,091 Insurance 1,249,966 Total operating expenses 1,5SI,973 4, I S2,3S3 1,249,966 Operating income (loss) 14,473 (56,SS9) (1,249,966) Nonoperating revenue (expense) Interest revenue 2,S47 5,056 Sale of property 66,727 Other revenue (expense) (30,983) 21,462 Interest expense (45,213) (1,915) Total nonoperating revenue (expense) (28,136) 48,032 (1,915) Income (loss) before transfers (13,663) (S,S57) (I,251,SSI) Transfers in (out) 1,280,000 Change in net assets (13,663) (8,857) 2S, I 19 Total net assets - beginning 577,908 (35,607) (24,154) Total net assets - ending $ 564,245 $ (44,464) $ 3,965 135 136 Augusta, Georgia Combining Statement of Cash Flows Internal Service Funds Year Ended December 31,2002 Risk Fleet Workers Management Operations Compensation Operating activities Cash received from contributions $ 2,143,456 $ 4,125,502 $ (1,230,679) Cash paid to suppliers (1,236, I 67) (4,058,672) Cash paid to employees (214,042) (95,951 ) Net cash provided by (used in) operating activities 693,247 (29,121) (1,230,679) Noncapital financing activities Transfers in (out) 1,280,000 Net cash provided (used) by noncapital financing activities ] ,280,000 Capital and related financing activities Proceeds from grants (17,SOO) Proceeds from sale of property 66,727 Other miscellaneous income 21,462 Interest on operating capital (45,213) (1,915) Interest paid on capital debt Other miscellaneous transactions (30,983) Net cash provided (used) by capital and related financing activities (4S,783) 42,976 (1,915) Investing activities Interest received 2,847 5,056 Net cash provided (used) in investing activities 2,847 5,056 Net increase in cash and cash equivalents 647,311 18,91 I 47,406 Cash and cash equivalents/investments Beginning of year 579,410 44,967 End of year $ 647,311 $ 598,321 $ 92,373 137 I I I I Long-term Total Employee Disability GMA Internal Service I Health Benefits Unemployment Insurance Leases Funds I $ I2,S7S,775 $ $ ISl,747 $ 2,135,160 $ 20,233,961 (11,640,655) (16S,615) (197,522) (252,700) (17,554,331) (309,993) I 1,238,120 (168,615) (15,775) I,S82,460 2,369,637 I (1,3S2,000) 102,000 751,576 751,576 I (1,382,000) 102,000 75 I ,576 75 I ,576 I (17,800) 66,727 21,462 I (3S,9S4) (260) (86,372) (625,605) (625,605) (30,9S3) I (3S,9S4) (260) (625,605) (672,571) I 356 320,349 328,608 I 356 320,349 32S,60S I (182,864) (66,259) (16,035) 2,328,7S0 2,777,250 I I S3,6S9 66,377 16,035 9,835,822 10,726,300 I $ S25 $ Il8 $ $ 12,164,602 $ 13,503,550 I I 138 Augusta, Georgia Combining Statement of Cash Flows - Continued Internal Service Funds Year Ended December 31,2002 I I I Change in assets and liabilities: Accounts receivable Due from other funds Accounts payable Accrued salaries and vacation Other accrued liabilites Due to other funds Total adjustments Risk Management Fleet Operations $ $ (56,8S9) $ 14,473 13,663 8,S56 430 S 887,673 112,002 17,638 6,099 1,266 (34 I ,093) 67S,774 27,76S $ $ (29,121) $ Net cash provided by (used in) operating activities 693,247 139 I Workers Compensation I (1,249,966) I 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 I I 19,287 . - - .... - 19,287 (I,230,679) I I I I I I I I I I I I I I I I I I I Long-term Employee Disability Health Benefits Unemployment Insurance Total GMA Internal Service Leases Funds $ 1,423,304 $ (102,356) $ 274 $ (256, I S9) $ (227,349) 22,519 26S,105 2,392,105 2,660,64S 143,701 1,031,374 (600,000) (16,069) 3,489 (463,653) 7,365 3,010 3,010 (66,259) 20 (256,945) (664,277) (1S5, I S4) (66,259) ( 16,049) 2, I 38,649 2,596,9S6 $ 1,23S,120 $ (16S,615) $ (15,775) $ I,SS2,460 $ 2,369,637 140 FIDUCIARY FUNDS I I I I I I . - - - . II 141 I I I PENSION TRUST FUNDS I I I I I I I I I I I I I - - - . I 142 . - - Augusta, Georgia Combining Statement of Fiduciary Net Assets Pension Trust Funds December 31,2002 1945 1977 General Plan Plan Retirement Total Assets Cash and cash equivalents $ 896,622 $ I,592,4S1 $ I,135,67S $ 3,624,7S1 Investments 8,6 I 9,458 12,014,401 5S,690,4S5 79,324,344 Receivables (net of allowance for doubtful accounts) Interest I 16, I 9S 563,814 6S0,012 Restricted investments Due from other funds 200,000 200,000 Total assets 9,716,080 13,723,OSO 60,389,977 S3,S29,137 Liabilities Due to other funds 329,570 329,570 Other accrued liabilities 945 945 Total liabilities 330,515 330,515 Net assets Reserved for employees' retirement benefits $ 9,716,080 $ 13,723,080 $ 60,059,462 $ S3,498,622 143 I I I I I I I I I I I I I I I I I I I Augusta, Georgia Combining Statement of Changes in Fiduciary Net Assets Pension Trust Funds Year Ended December 31, 2002 1945 1977 General Plan Plan Retirement Total Additions Contributions $ 10,438 $ 1,867,665 $ 3S4,975 $ 2,263,078 Net investment income (loss) (S69,293) (890,606) (4,494,210) (6,254,109) Transfers in I,197,4S1 1,197,4SI Total additions (S5S,S55) 977,059 (2,911,754) (2,793,550) Deductions Administration 86,820 I I 1,3 15 38S,524 5S6,659 Benefit payments S9I,2I2 563,971 4,24S,973 5,704,156 Refunds 232,016 6,5S7 23S,603 Total deductions 97S,032 907,302 4,644,OS4 6,529,418 Change in net assets (I,S36,8S7) 69,757 (7,555,838) (9,322,968) Tota~ net assets - beginning 11,552,967 13,653,323 67,615,300 92,S21,590 Total net assets - ending $ 9,716,OSO $ 13,723,080 $ 60,059,462 $ S3,49S,622 144 - - 145 I I I I AGENCY FUNDS I I I I I I I I I I I I I I 146 . . -- -- Augusta, Georgia Combining Statement of Changes in Fiduciary Assets and Liabilities Agency Funds December 31,2002 - - January 1,2002 Additions Deductions December 31,2002 Tax Commisioner Assets Cash and cash equivalents $ 4,550,929 $ 115,775,278 $ 110,983,256 $ 9,342,951 Receivables (net of allowance for doubtful accounts) Taxes 29,555,482 117,727,912 115,775,278 31,508,116 Total assets $ 34,106,411 $ 233,503,190 $ 226,758,534 $ 40,851,067 Liabilities Due to others $ 3,186,392 $ 72,455,730 $ 69,638,674 $ 6,003,448 Due to other funds 1,364,537 43,319,548 41,344,582 3,339,503 Uncollected taxes 29,555,482 117,727,912 115,775,278 31,508,116 Total liabilities $ 34,106,411 $ 233,503,190 $ 226,758,534 $ 40,851,067 Probate Assets Cash and cash equivalents $ 16,407 $ 252,222 $ 262,296 $ 6,333 Total assets $ 16,407 $ 252,222 $ 262,296 $ 6,333 Liabilities Due to others $ 4,314 $ 83,899 $ 82,630 $ 5,583 Due to other funds 12,093 168,323 179,666 750 Total liabilities $ 16,407 $ 252,222 $ 262,296 $ 6,333 Sheriff Assets Cash and cash equivalents $ 1,196,760 $ 2,429,785 $ 2,558,883 $ 1,067,662 Total assets $ 1,196,760 $ 2,429,785 $ 2,558,883 $ 1,067,662 Liabilities Due to others 1,196,760 2,429,785 2,558,883 1,067,662 Total liabilities $ 1,196,760 $ 2,429,785 $ 2,558,883 $ 1,067,662 Civil Court Assets Cash and cash equivalents $ 415,612 $ 2,170,725 $ 2,276,083 $ 310,254 Total assets $ 415,612 $ 2,170,725 $ 2,276,083 $ 310,254 Liabilities Due to others $ 353,607 $ 2,136,192 $ 2,183,899 $ 305,900 Due to other funds 62,005 34,533 92,184 4,354 Total liabilities $ 415,612 $ 2,170,725 $ 2,276,083 $ 310,254 147 I I I I I I I I I I I I I I I I I I Augusta, Georgia Combining Statement of Changes in Fiduciary Assets and Liabilities - Continued Agency Funds December 31,2002 Liabilities January 1,2002 Additions Deductions December 31,2002 $ 2,231,611 $ 14,831,067 $ 14,669,127 $ 2,393,551 $ 2,231,611 $ 14,831,067 $ 14,669,127 $ 2,393,551 $ 1,698,270 $ 7,173,069 $ 7,033,825 $ 1,837,514 533,341 7,657,998 7,635,302 556,037 $ 2,231,611 $ 14,831,067 $ 14,669,127 $ 2,393,551 Clerk of Court Assets Cash and cash equivalents Total assets Due to others Due to other funds Total liabilities TOTAL ALL AGENCY FUNDS: Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts) Taxes Liabilities $ 8,411,319 $ 135,459,077 $ 130,749,645 $ 29,555,482 117,727,912 115,775,278 $ 37,966,801 $ 253,186,989 $ 246,524,923 $ $ 6,439,343 $ 84,278,675 $ 81,497,911 $ 1,971,976 51,180,402 49,251,734 29,555,482 117,727,912 115,775,278 $ 37,966,801 $ 253,186,989 $ 246,524,923 $ 13,120,751 31,508,116 44,628,867 Total assets Due to others Due to other funds Uncollected taxes Total liabilities 9,220,107 3,900,644 31,508,116 44,628,867 . . 148 149 I I I I I I I I I I I I I I I COMPLIANCE SECTION -- - 150 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards 16.592 01-LB-BX-0997 364,477 16.523 0IB-FM-0003 7,911 16.523 00B-FM-0003 19,030 16.523 o I-B-ST -000 I 8,413 16.523 02-B-ST-0002 1,684 37,038 16.579 BO 1-8-004 48,579 16.575 C-99-8-161 29,400 16.575 00- V A-GX-OO 13 28,621 16.575 Ol-V A-GX-0013 13,395 71,416 15.540 00J-12-000-0007 19,545 15.540 00J-02-0 I 03-0006 9,980 29,525 16.595 2002- W0086-GA- WS 19,041 16.595 o l-WS-QX-O 124 220,287 239,328 790,363 Year Ended December 31,2002 Federal Grantor I Pass-through Grantor I Program Title Federal CFDA Number u.s. Department of Housing and Urban Development Direct Programs Community Development Block Grant Emergency Shelter Grant HOME Investment Partnerships Program Supporting Housing Program Total U.S. Department of Housing and Urban Development 14.218 14.231 14.239 14.235 U.s. Department of Justice Direct Programs Local Law Enforcement Block Grant Juvenile Accountability Incentive Block Grant Pass-through from the Office of the Governor Criminal Justice Coordinating Council Drug Control and System Improvement Formula Grants Victims Assistance Grants Children and Youth Coordinating Council Grant Executive Office for Weed & Seed Total U.S. Department of Justice U.S. Department of Transportation Direct Programs Urban Mass Transportation Capital and Operating Assistance Grants 20.507 20.507 20.507 20.507 20.507 151 Agency or Pass-through Number Federal Expenditures B-00-MC-13-0003 $ S-oO-MC-13-0004 M-00-MC-13-0006 GA06B804-002 3,232,015 76,343 1,785,991 94,245 5,188,594 GA-90-XI66 GA-90-XI29 GA-90-XI53 GA-90-X112 GA-90-XI22 720,320 8,095 7,502 59,531 7,581 803,029 I AUGUST A, GEORGIA I Schedule of Expenditures of Federal Awards - Continued I Year Ended December 31,2002 Federal Grantor I Federal Agency or I Pass-through Grantor I CFDA Pass-through Federal Program Title Number Number Expenditures I U.S. Department of Transportation Direct Programs Federal Aviation Administration Airport Improvement Program Grants 20.106 3-13-0011-19 $ . 20,460 I 20.106 3-13-0011-18 16,639 20.106 3-13-0011-20 784 20.106 3-13-0011-22 1,476,262 I 20.106 3-13-0011-21 158,072 20.106 3-13-0011-24 146,655 20.106 3-13-0011-25 57,223 20.106 3-13-0012-08 26,950 I Grant-in-Aid Revised Security Requirement 1,903,045 after September 11, 200 I 20.106 3-13-0011-23 233,454 Total U.S. Department of Transportation 2,939,528 I U.S. Environmental Protection Agency Direct Programs Brownfield Pilots Cooperative Agreements 66.811 BP984866-99-0 56,747 I Emergency Management Agency . Pass-through from the Georgia Emergency I Management Agency Hazard Mitigation Grant 83.548 13 11-000 1 66,055 U.S. Department of Commerce I Economic Adjustment Program 11.307 04-69-04907 6,760 U.S. Department of Interior I Historic Preservation Fund Grant-in-Aid Program 11. 904 13-01-1 MI 0-05 14,760 Total $ 9,062,807 I I I I I The accompanying notes are an integral part of the schedule of expenditures of federal awards. I 152 AUGUSTA, GEORGIA Notes to the Schedule of Expenditures of Federal Awards Year Ended December 31,2002 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-B3, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2 - Non-cash awards Augusta, Georgia did not receive any non-cash federal awards during the year ended December 31, 2002. 153 I AUGUSTA, GEORGIA I Summary Schedule of Prior Audit Findings I Year Ended December 31,2002 I Finding 00-1 (repeat finding) U.S. Department of Justice CFDA 16.592; Local Law Enforcement Block Grant I Criteria The Grant Award Letter Special Conditions number 8, "the recipient agrees to establish a trust fund in which all payments received under this program, including match, must be deposited: For purposes of this grant, a trust fund is an interest-bearing account that is specifically designated for this program...". I Condition noted Augusta, Georgia did not establish a specifically designated trust fund for receipts under this program. Receipts were deposited in the pooled cash account of Augusta, Georgia and were initially recorded as receipts on the trial balance of another fund. I Recommendation Augusta, Georgia should set up a separate interest-bearing account for Local Law Enforcement Block Grant receipts, transfer in unexpended grant balances to this account and notify the Department of Justice to, in the future, wire advances to this account for Local Law Enforcement Block Grant funds only. I I Current Status Repeat rmding this fiscal year. I Finding 00-2 (repeat rmding) U.S. Department of Housing and Urban Development - CFDA 14.218; Community Development Block Grant I Criteria 24 CFR Section 570.201 requires the amount of CDBG funds obligated during the program year for public services must not exceed 15 percent of the grant amount received for that year plus 15 percent of the program income it received during the preceding program year. I Condition noted The amount of CDBG funds obligated during the 2001 program year for public services was equal to 15.8 percent of the grant amount received for 2001 plus 15.8 percent of the program income received during 2000. I Recommendation Augusta, Georgia should reduce CDBG public service expenditures for 2001 by an amount approximately equal to the excess for 200 I in accordance with the Department of Housing and Urban Development current recommendations. I Current Status Corrected during this fiscal year. I Finding 01-1 U.S. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. I Criteria 24CFR Section 92.508(a)(2)(ix) requires a report on match contributions made, using a separate HOME Match Report, HUD-4107-A, for the period covered by the Consolidated Plan Program Year, and must comply with those provisions to indicate resources from private and non-Federal sources. The applicable regulations for this standard are 92.220, 91.220(b)(2), 91.320(b)(2), 91.320(b)(2), and 91.420(b). I I I 154 AUGUST A, GEORGIA Summary Schedule of Prior Audit Findings - Continued Year Ended December 31,2002 Condition noted The 200 I CAPER (Consolidated Annual Performance and Evaluation Report) did not provide evidence of the Augusta-Richmond County's compliance with the match requirements under HOME, as required in the regulation. Recommendation The City's Housing and Neighborhood Development Office should develop a fmancial reporting system that tracks match obligations and match contributions to ensure that the match requirements will be met by the end of the respective program year. Current Status Partially corrected during this fiscal year. Finding 01-2 Internal control over compliance with federal awards. u.s. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. Criteria 24CFR Section 92.508 requires each participating jurisdiction to establish and maintain sufficient records to enable HUD or their agents to determine whether the participating jurisdiction has met the requirement of Program Administration. Condition noted Internal control over record keeping for the HOME Investment Partnership Program was not adequate to ensure that accurate information is accessible to those who need it. There was no evidence that the HOME Program Director established a record keeping system to ensure that accounting records and documentation were retained for the time period required by applicable requirements of the A-102 common rule. Recommendation The City's Housing and Neighborhood Development Office should establish formal internal controls that ensure maintenance, review, and reconciliation of program and project records on a contemporaneous basis with the expenditure of federal funds associated with the program and projects. Current Status Corrected during this fiscal year. 155 I I I I I I I I I I I I I I I I I I. I ! f' CHERRY, BE.KABRT&.} .~ HOLLAND CERTifiED PUBLICI _ ACCOUNT.'I'NTS &; . ; CONSULT Al'TS l I eport on Compliance and on Internal Control over Financial Reporting !Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Augusta-Richmond County Commission Augusta, Georgia We have audited the [mancial statements of Augusta, Georgia as of and for the year ended December 31, 2002, and have issued our report thereon; based on our audit and the report of other auditors, dated June 20, 2003. 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. Comoliance A!; part of obtaining reasonable assurance about whether Augusta, Georgia's [mancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit, we considered Augusta Georgia's internal control ovcr flllancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level thc risk that misstatements in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in dIe normal course of performing their assigned functions. We noted no matters involving the internal control over flllancial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the infornlation and use of the finance committee, management, the Augusta- Richmond County Commission., federal awarding agencies and pass-through entities and is not intended to be and should not be used b~Y anyone ad.e, than gZ1-es~ I!~~ j .~.I. Augusta, Georgia June 20, 2003 156 Report on Compliance with Requirements Applicable to Each Major Program and 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 U.S. OffICe of Management and Budget (OME) Circular A-I33 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2002. Augusta, Georgia's major federal programs are identified in the swnmary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the resp6nsibility of Augusta, Georgia's management. Our responsibility is to express an opinion on Augusta, Georgia's compliance based on our ~~di!- 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-i33, Audits of States. Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Augusta, Georgia's compliance with those requircments 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. As described in items 00-1,01-1, and 02-1 in the accompanying schedule offmdings and questioned costs, Augusta, Georgia did not comply with requirements regarding the Special Conditions that are applicable to its Local Law Enforcement Block Grant Program, and the matching requirements and sub-recipient monitoring requirements that are applicable to its HOME Investment Partnership Program. Compliance with such requirements is necessary, in our opinion, for Augusta, Georgia to comply with the requirements applicable to those programs. In our opinion, except for the noncompliance described in the preceding paragraph, Augusta, Georgia complie~ in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year endcd December 31, 2002. Internal Control Over Compliance The management of Augusta, Georgia is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and pecforming our audit, we considered Augusta, Georgia's intcrnal control over compliance with requirements that could have a direct and material effect on a major federal program in order to detcrmine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. 157 I I I I I I I I I I I I I I I I I I I We noted no matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect Augusta, Georgia's ability to administer a major federal program in accordance with applicable requirements of laws, regulations, contracts and grants. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with the applicable requirements of laws, regulations, contracts and grants that would be material relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the intemal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. This report is intended solely for the information and use of management, the Augusta-Richmond County Commission, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~ g-t1J-f-!-I~iJ-.'-.P. Augusta, Georgia June 20,2003 158 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs Year Ended December 31, 2002 l. Summary of the Auditor's Results The auditor's report expresses an unqualified opinion on the [mancial statements of Augusta, Georgia as of and for the year ended December 31, 2002. No material weaknesses were identified. No reportable conditions in internal control were identified. No instances of noncompliance material to the [mandai statements of Augusta, Georgia, as required to be reported in accordance with Government Auditing Standards, were disclosed by the audit. 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-133. 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, 2002. The audit disclosed [mdings required to be reported in accordance with OMB Circular A-133, Section 51 O(a) as Finding Numbers 00-1, 01-1, and 02-1. Identification of Maior Programs CFDA Number Name of Federal Program or Cluster 14.218 14.239 u.S. Department of Housing and Urban Develooment Community Development Block Grant HOME Investment Partnerships Program 16.592 u.S. Department of Justice Local Law Enforcement Block Grant 20.106 u.s. Department of Transportation Airport Improvement Program Grants We used a threshold of $300,000 to distinguish between Type A and Type B programs. Augusta, Georgia is a low-risk auditee. 159 'I AUGUST A, GlEORGIA 'I Schedule of Findings and Questioned Costs - Continued I Year Ended December 31, 2002 IL Findings for Financial Statements .1 None noted I In. Findings and Questioned Costs for Major Federal Award Programs Audit 1 Finding 00-1 (repeat fmding) U.S. Department of Justice CFDA 16.592; Local Law Enforcement Block Grant .1 Criteria The Grant Award Letter Special Conditions number 8, "the recipient agrees to establish a trust fund in which aU payment received under this program, including match, must be deposited. For purposes of this grant, a trust fund is an interest-bearing account that is specifically designated for this program. ..". I Condition noted Augusta, Georgia did not establish a specifically designated trust fund for receipts under this program. Receipts were deposited in the pooled cash account of Augusta, Georgia and were initially recorded as receipts on the trial balance of another fund. I 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. 1 I Finding 01-1 (repeat fmding) U.S. Department of Housing and Urban Development - CFDA 14.239; HOME Investment Partnership Program. 'I I Criteria 24CFR Section 92.508(a)(2)(ix) requires a report on match contributions made, using a separate HOME Match Report, HUD-4107-A, for the period covered by the Consolidated Plan Program Year, and must comply with those provisions to indicate resources from private and non-Federal sources. The applicable regulations for this standard are 92.220, 91.220(b )(2), 91.320(b )(2), 91.320(b )(2), and 91.420(b). I Condition noted Augusta, Georgia provided evidence of preparing the match report under HOME, as required in the regulation. The City's Housing and Neighborhood Development Office is in the process of developing and refining the system to track match contributions. 1 Recommendation The City's Housing and Neighborhood Development Office should finalize the development of the fmancial reporting system that tracks match obligations and match contributions to ensure that the match requirements will be met by the end of the respective program year. I 1 I 160 1 I Finding 02-1 u.s. Department of Housing and Urban Development CFDA 14.239; HOME Investment Partnership Program I Criteria 24CFR Section 92.508 requires each participating jurisdiction to establish and maintain sufficient records to enable HUD or their agents to determine whether the participating jurisdiction has met the requirements of ensuring that each sub recipient or CHDO complies with the written agreements required by Sec. 92.504. . I 24CFR Section 92.504 requires each participating jurisdiction to ensure that HOME funds are used in accordance with all progranl requirements and written agreements, and to take appropriate action when performance problems arise. - - Condition noted Internal control over record keeping for sub recipient monitoring was not adequate enough to ensure that HOME funds were used in accordance with all program requirements and written agreements. Recommendation The City's Housing and Neighborhood Development Office should establish formal internal controls which ensure proper documentation of sub recipient monitoring, which should at a minimum, consist of obtaining and reviewing the monitoring documents described in written agreements with all sub recipients and community housing development organizations. 161