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HomeMy WebLinkAboutAUGUSTA GEORGIA ANNUAL FINANCIAL STATEMENTS FOR YR ENDED DEC 31, 2010 �� ����L AUGUSTA, GEORGIA Annual Financial Statements For the Year Ended December 31, 2010 AUGUSTA, GEORGIA Annual Financial Report Year Ended December 31, 2010 Table of Contents FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1- 2 MANAGEMENT'S DISCUSSION AND ANALYSIS 4- 14 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Assets 19 Statement of Activities 20-21 Fund Financial Statements: Balance Sheet — Governmental Funds 24-25 Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Assets 27 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 28-29 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of � Governmental Funds to the Statement of Activities 31 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 32 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Fire Protection Fund 33 Statement of Net Assets - Proprietary Funds 34 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 35 Statement of Cash Flows - Proprietary Funds 36-37 Statement of Fiduciary Net Assets - Fiduciary Funds 38 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 39 Notes to Financial Statements 43-83 REQUIRED SUPPLEMENTARY INFORMATION Pension Plans- Required Supplementary Information — Schedules of Funding Progress 85 AUGUSTA, GEORGIA Annual Financial Report Year Ended December 31, 2010 Table of Contents (continued) Paee COMBINING AND INDNIDUAL FUND STATEMENTS NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet - Nonmajor Govemmental Funds 90 — 91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor Governmental Funds 92 — 93 Combining Balance Sheet - Nonmajor Special Revenue Funds 94 — 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Special Revenue Funds 98 — 101 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual — Nonmajor Special Revenue Funds Urban Services District Fund 102 Emergency Telephone System Fund 103 Capital Outlay Fund 104 Law Enforcement Fund 105 Occupation Tax Fund 106 Special Assessment Fund 107 Hotel/Motel and Promotion/Tourism Fund 108 Housing and Neighborhood Development Fund 109 Urban Development Action Grant Fund 110 Federal Drug Fund 111 State Drug Fund 112 5% Victim's Crime Assistance Fund 113 Supplemental Juvenile Service Fund 114 Building Inspection 115 Wireless Phase Fund 116 Perpetual Care - I Fund 117 Downtown Development 118 Canine Forfeitures Fund 119 NPDES Permit Fees Fund 120 Transportation and Tourism Fund 121 Drug Court 122 Urban Redevelopment Projects 123 Combining Balance Sheet - Nonmajar Debt Service Funds 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Debt Service Funds 125 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual — Nonmajor Debt Service Funds 2006 GO Sales Tax Bonds Debt Service Fund 126 2009 GO Sales Tax Bonds Debt Service Fund 127 2010 GO Sales Tax Bonds Debt Service Fund 128 Coliseum Authority Revenue Bonds Debt Service Fund 129 AUGUSTA, GEORGIA Annual Financial Report Year Ended December 31, 2010 Table of Contents (continued) PaQe Combining Balance Sheet - Nonmajar Capital Project Funds 130 - 131 Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Capital Project Funds 132 - 133 NONMAJOR ENTERPRISE FUNDS Combining Statement of Net Assets - Nonmajor Enterprise Funds 136 - 137 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Nonmajor Enterprise Funds 138 - 139 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 140 — 143 INTERNAL SERVICE FUNDS Combining Statement of Net Assets - Internal Service Funds 146 — 147 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Internal Service Funds 148 —149 Combining Statement of Cash Flows - Internal Service Funds 150 — 153 FIDUCIARY FUNDS Combining Statement of Fiduciary Net Assets — Pension Trust Funds 158 Combining Statement of Changes in Fiduciary Net Assets — Pension Trust Funds 159 Combining Statement of Changes in Fiduciary Assets and Liabilities — Agency Funds 162 — 163 COMPLIANCE SECTION ' Report of Independent Certified Public Accountants on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards C-3 — C-4 Schedule of Expenditures of Federal Awards GS — C-9 Notes to Schedule of Expenditures of Federal Awards G10 Report of Independent Certified Public Accountants on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 C-11 — C-12 Schedule of Findings and Questioned Costs G 13 — G24 Summary Schedule of Prior Audit Findings C-25 — C-34 AUGUSTA, GEORGIA Annual Financial Report Year Ended December 31, 2010 Table of Contents (continued) Paee SPECIAL ONE PERCENT SALES AND USE TAX SECTION Report of Independent Certified Public Accountants on the Schedule of Special One Percent Sales and Use TaY Perfarmed in Accordance with Government Auditing Standards S-3 Notes to Schedule of Special One Percent Sales and Use Tax S-4 Schedule of Special One Percent Sales and Use Tatc S-5 - S-9 '� � . r a � ' � REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Augusta-Richmond County Commissioners Augusta, Georgia We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Augusta, Georgia as of December 31, 2010 and for the year then ended, which collectively comprise Augusta, Georgia's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Augusta, Georgia management. Our responsibility is to express opinions on these basic financial statements based on our audit. We did not audit the financial statements of the Augusta-Richmond County Department of Health, Augusta-Richmond County Coliseum Authority or powntown Development Authority, which represent three of the discretely presented component units. Those financial statements were audited by other auditors whose reports thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Department of Health, Augusta-Richmond County Coliseum Authority and Downtown Development Authority, is based solely on the reports of the other auditors. We conducted our audit in accardance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governrr�ent Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions. In our opinion, based upon our audit and the report of other auditors, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Augusta, Georgia, as of December 31, 2010, and the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparison for the General Fund and Fire Protection Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated September 6, 2011 on our consideration of Augusta, Geargia's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the schedules of funding progress and employer contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion ar provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of farming opinions on the financial statements that collectively comprise Augusta, Georgia's basic financial statements as a whole. The combining and individual fund statements and the accompanying schedule of expenditures of Federal awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations for the year ended December 31, 2010, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the accompanying schedule of expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied by us in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit and the report of other auditors, the information is fairly stated in all material respects in relation to the financial statements as a whole. ���� 1 ���� � �°''^�`�, �-� � {J Augusta, Georgia September 6, 2011 2 Management's Discussion & Analysis (unaudited) The Management's Discussion and Analysis of the Annual Financial Statements of Augusta, Georgia (the "Government") provides an overall narrative and analysis of the Government's financial statements for the fiscal year ended December 31, 2010. This discussion and analysis is designed to look at the Government's financial performance as a whole. Readers should also review the additional information provided in the transmittal letter, which can be found preceding this narrative, and the complete financial statements, with notes, which follow this narrative, to enhance their understanding of the Government's financial performance. Financial Highlights Key financial highlights for the year ended December 31, 2010 are as follows: • The Government's combined net assets totaled $871.9 million. • The Government's total net assets increased by $21,7 million, primarily due to capital spending funded by the Special Purpose Local Option Sales TaY revenues, federal aviation grants, and other tax revenues. • As of the close of the current fiscal year, the Government's governmental funds reported combined ending fund balances of $281.5 million, an increase of $1.3 million from the prior year. Approximately 49% of this total amount, or $139.4 million, is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, total fund balance for the General Fund was $32.8 million, or 27% of total General Fund expenditures for the fiscal year. Of this amount, $4.4 million has been designated for other purposes, leaving $28.4 million, or 87% of total General Fund balance, as undesignated. • Combined Revenue totaled $352.4 million, of which governmental activities totaled $219.4 million and business- type activities totaled $133 million. Current year revenues increased approximately 32.6% from those of the prior year. • Overall expenses totaled $319.7 million of which governmental activities totaled $192.7 million and business-type activities totaled $127.0 million. Current year expenses decreased approximately 5.2% over those of the prior year. • Expenses of governmental activities exceeded program revenue by $145.2 million, resulting in the use of general revenues (mostly taxes). • Total Outstanding Long-Term Debt, excluding compensated absences, increased approximately $37.9 million. 4 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the GovernmenYs basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The basic financial statements present two different views of the Government through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial condition of the Government. Required Components of Annual Financial Report Figure 1 ManagemenY s Basic Discussion and Financial Analysis Statements Government- Fund Notes to the Wide Financial Financial Financial Statements Statements Statements Detail Summary Basic Financial Statements The first two statements in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the Government's financial status. The next statements are Fund Financial Statements. These statements focus on the activities of the individual parts of Augusta, Georgia's government. These statements provide more detail than the government-wide statements. There are four parts to the Fund Financial Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; 3) the proprietary fund statements; and 4) the fiduciary fund statements. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Government's non-major governmental funds and internal service funds, all of which are added together in one column on the appropriate basic financial statements. Government Financial Statements The Government-wide financial statements provide a broad view of the Government's operations in a manner similar to a private-sector business. The statements provide both short-term and long-term information about the Government's financial position, which assists in assessing the economic condition at the end of the fiscal year. These statements are � prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This means the statements take into account all revenues and expenses connected with the fiscal year even if cash involved has not been received or paid. The government-wide financial statements include the following two statements: The Statement of Net Assets presents information on all of the Government's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Government is improving or deteriorating. The Statement of Activities presents information showing how the GovernmenYs net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). This statement also presents a comparison between direct expense and program revenues for each function of the Government. 5 The government-wide statements are divided into three categaries: 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 services that the Government charges a fee to customers in order to provide. These include Water and Sewer, Augusta Regional Airport, Waste Management, Municipal Golf Course, Transit, Daniel Field Airport, and Garbage Collection. The final category is component units. The Augusta-Richmond County Board of Health is a public health department. Although legally separate from the Government, the Government appoints a voting majority of the board. Augusta Canal Authority and Downtown Development Authority are also component units for which the Government is fiscally responsible. Fund Financial Statements A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Government, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the Government, reporting the GovernmenYs operations in more detail than the government-wide statements. All of the funds of the Government can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. These fund categories use different accounting approaches and should be interpreted differently. Governmental Funds Most of the basic services provided by the Government are financed through governmental funds. Governmental funds are used to account for essentially the same functions reported as government activities in the government-wide financial statements. However, unlike the government-wide statements, these funds focus on how assets can readily be converted into cash and the amount of funds left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting, which focuses on current financial resources. Such information may be useful in evaluating the government's short-term financing requirements. These statements provide a detailed short-term view of the GovernmenYs finances that assists in determining whether there will be adequate financial resources available to meet the Government's current needs. The relationship between government activities in the government-wide financial statements and the governmental funds financial statements is described in a reconciliation that is a part of the fund financial statements. The Government has five governmental fund types: the General Fund, Special Revenue Funds, Debt Service Funds, the Capital Projects Funds, and the Permanent Fund. Only five individual funds are being considered major funds — the General Fund, Fire Protection, Special Purposes Local Option Sales Tax Fund (SPLOST) Phase III, Special Purposes Local Option Sales Tax Fund (SPLOST) Phase IV and Special Purposes Local Option Sales Tax Fund (SPLOST) Phase V. Proprietary Funds The Govemment has two types of proprietary funds used to account for activities that operate similar to commercial enterprises found in the private sector. Funds that charge fees for services provided to outside customers including other local governments are known as Enterprise Funds. These funds are used to report the same functions presented as business- type activities in the government-wide financial statements. Funds that charge fees for services provided to departments within the reporting government are known as Internal Service Funds. Proprietary funds use the accrual basis of accounting, thus there is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements, except for the allocation of intemal service fund activity. The Government has seven enterprise funds: Water and Sewer, Augusta Regional Airport, Waste Management, Municipal Golf Course, Transit, Daniel Field Airport, and Garbage Collection. The Government has seven internal service funds: Risk Management, Fleet Operations, Workers Compensation, Employee Health Benefits, Unemployment, Long-Term Disability Insurance and GMA Leases. The Water and Sewerage Fund and Augusta Regional Airport are the only funds being considered major funds for presentation purposes. 6 Fiduciary Funds The Fiduciary Funds are used to account for assets held by the Government as an agent for individuals, private organizations, other governments and other departments. The Government is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and only by those to whom the assets belong. These funds are not reflected in the government-wide financial statements because the resources are not available to support the Government's operations or programs. Government Financial Analysis Comparative data for the entity governmental activities and the business activities is provided below. Figure 2 Governmental Busmess-type Govenvnental Business-type Act i vi ties Activities Total Acti vities Activ ities To t a l 20 10 2010 20 10 2 2 009 20 09 Current and other asseu $ 324,825,577 145,276,235 $ 470,101,812 $ 319,816,593 $ 148,997,935 $ 468,814,528 Caprtalassets 404,851,431 699,750,171 1,104,601,602 335,639,193 676,273,663 1,011,912,856 Total assets 729,677,008 845,026,406 1,574,703,414 655,455,786 825,271,598 1,480,72'7,384 Long-termliab�lities 85,215,880 517,890,205 603,106,085 60,815,329 510,855,784 571,671,113 Otherliabilities 71,178,282 28,563,481 99,741,763 43,101,202 26,821,059 69,922,261 Totalliabilites 156,394,162 546,453,686 702,847,848 103,916,531 537,676,843 641,593,374 Net assets: Invested 'm capital assets, net ofrelated debt 392,520,278 194,948,749 587,469,027 316,625,846 208,865,726 525,491,572 Restricted 12'7,645,294 27,648,425 155,293,719 169,810,821 17,717,103 187,527,924 Unrestricted 53,117,274 75,975,546 129,092,820 65,102,588 61,011,926 126,114,514 Total net assets $ 573,282,846 $ 298,572,720 $ 871,855,566 $ 551,539,255 $ 287,594,755 $ 839,134,010 7 Net Assets Net assets may serve over time as one useful indicator of a government's financial condition. The assets of the Government exceeded liabilities by $871.9 million as ofDecember 31, 2010. The largest portion of the Government's net assets, $587.5 million or 67.4%, reflects its investment in capital assets such as land, buildings, eyuipment and infrastructure (road, bridges, sidewalks, water lines and sewer lines) less any related debt used to acquire those assets that is still outstanding. The Government uses these capital assets to provide services to its citizens; therefore, these assets are not available for future spending. Although the Government's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Government's net assets, $1553 million or 17.9%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $1291 million or 14.7%, may be used to meet the Government's ongoing obligations to citizens and creditors. Several particular aspects of the Government's financial operations positively influenced the total unrestricted governmental net assets: • Continued diligence in the maintenance of 75 -90 days unreserved fund balance in the General Fund. • Continued diligence in the collection of property taxes by maintaining a collection percentage of 99% for real and personal property. • Continued low cost of debt due to the County's high bond rating. 8 The Government's Changes in Net Assets For the Years Ended December 31, 2010 and 2009 Figure 3 Governmental Business-type Govemmental Busmess-type Activities Activities Total Activities ActiviGes Total 2010 2010 2010 2009 2009 2009 Revenues: Prog am revenues: Charges for services $ 35,960,014 127,336,857 $ 163,296,871 $ 35,528,497 $ 114,444,934 $ 149,973,431 Operating granu and conmbutions 11,541,378 181,717 11,723,095 9,489,973 563,865 1Q053,838 Capital grants and confibutions - 4,084,129 4,084,129 - 1,615,277 1,615,277 Generalrevenues: PropeRyta�ces 53,931,423 - 53,931,423 53,131,398 - 53,131,398 Othertaaces 112,576,281 - 112,576,281 113,766,336 - 113,766,336 Unrestrictedgovemmentalrevenues 1,117,472 - 1,117,472 952,413 - 952,413 Rev�nues from use of money and property 3,419,228 395,40'7 3,814,635 6,757,096 926,056 7,683,152 Miscellaneous 855,819 1,023,328 1,879,147 3,302,450 834,159 4,136,609 Totalrevenues 219,401,615 133,021,438 352,423,053 222,928,163 ll8,384,291 341,312,454 Expenses: Generalgovemment 41,420,563 - 41,42Q563 32,303,249 - 32,303,249 Judicial 17,197,271 - 17,197,271 17,133,889 - 17,133,889 PubGcsafety 82,198,232 - 82,198,232 84,927,821 - 84,927,821 PubGc works 16,010,143 - 16,010,143 14,844,645 - 14,844,645 Health and welfare 1,934,339 - 1,934,339 2,218,245 - 2,218,245 Cuhure and recreation 20,351,136 - 20,351,136 19,876,636 - 19,876,636 Housrtig and developmem 12,054,659 - 12,054,659 11,418,135 - ll,418,135 IMerest on long-Ceim debt 1,539,180 - 1,539,180 885,661 - 885,661 Waste management - 6,192,260 6,192,260 - 10,992,158 10,992,158 Water and sewer - 81,438,293 81,438,293 - 73,677,334 73,677,334 Artports - 18,281,091 18,281,091 - 14,928,202 14,928,202 Mimic�algoffcowse - 629,179 629,179 - 579,601 579,601 Transit - 4,935,179 4,935,179 - 4,847,776 4,847,776 Crubage Colleclion - 15,519,972 15,519,972 - 15,202,611 ]5,202,611 Totalexpenses 192,705,523 126,995,974 3]9,701,497 183,608,281 120,227,682 303,835,963 Increase rc� net assets before rransfers 26,696,092 6,025,464 32,721,556 39,319,882 (1,843,39]) 37,476,491 Transfers (4,952,501) 4,952,501 - (6,305,390) 6,305,390 - Increase in ne[ assets 21,743,591 1Q977,965 32,721,556 33,014,492 4,461,999 37,476,491 Net assets, January 1 551,539,255 287,594,755 839,134,010 518,524,763 283,132,756 801,657,519 Net assets, December 31 $ 573,282,846 $ 298,572,720 $ 871,855,566 $ 551,539,255 $ 287,594,755 $ 839,134,010 9 Changes in Net Assets Governmental activities. Governmental activities increased the Government's net assets by $21.7 million, and thereby accounting for 66.5% of the total growth in the net assets of the Government. Key elements of this increase are as follows: Governmental Revenues. Property tax (40%) and other taxes (60%) continue as the main source of revenue of the Government amounting to 75.9% in 2010, compared to 75% in 2009. Sales tax revenues contributed approximately $72.6 million to the increase in net assets. Governmental Functional Expenses: As reflected in the summary of changes in Net Assets, the Government expended 51.6°/a of the appropriations for judicial and public safety expenditures. The Government continues to commit substantial financial resources for the safety of its citizens. Other expenditures accounted for the remaining 48.4%. Business-type activitles: Business-type activities increased the Government's net assets by approximately $10.9 million accounting for 33.5% of the total growth in the governmenYs net assets. Key elements of this increase are as follows: • The Waste Management Fund reported an increase in net assets of $3.2 million. This increase was due to maintaining volumes similar to 2009 volumes. The increase in volumes was stemmed from a volume based discount issued in 2004. The increase was also due to an increased investment in capital assets specifically an upgrade to the Compressed Natural Gas collection system. • The Water and Sewer Fund reported an increase in net assets of $33 million. This increase was largely due to an increase in user charges due to rate increases approved upon issuance of the most recent Water & Sewer Revenue Bonds in 2004. • The Augusta Regional Airport Fund reported a decrease in net assets of $70 thousand. This decrease was due to operating expenses slightly exceeding operating and non-operating revenues. • Garbage Collection net assets increase of $423 thousand. Financial Analysis of the Government's Individual Funds Augusta, Georgia uses fund accounting to demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the Government's governmental funds is to provide information on near-term inflows, outflows and balances of usable resources. Such information is useful in assessing the Government's financial requirements. In particular, the unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The combined fund balance of all the governmental funds is $281.6 million, of which $124 million, or 44%, is unreserved and undesignated. General Fund The General Fund is the primary operating fund of the Government. At the end of the current fiscal year, total fund balance of the General Fund was $32.8 million, of which $28.4 million, or 87%%, was unreserved. A portion of the unreserved fund balance in the General Fund is designated for risk benefit, in the amount of $4.7 million. As a measure of the General Fund's liquidity, it may be useful to compare both undesignated and designated fund balance to total fund expenditures. As of December 31, 2010, total unreserved fund balance, both undesignated and designated, represents 24% of total general fund expenditures. The fund balance of the General Fund increased $1.6 million (5.1%). Key factors to this result include cost reduction measures that were implemented and observed throughout the year. This increase in fund balance represents 1.29% of the 2010 budget. Also a reduced transfer of funds to the transit department due to the receipt and recognition as revenue of grant reimbursements was a contributing factor. 10 General Fund Budgetary Highlights During the year, the Government revised the budget on several occasions. Generally, budget amendments fall into one of five categories: 1) amendments to appropriate fund balance for encumbrances from the prior year; 2) amendments made to adjust the estimates that are used to prepare the original budget resolution once exact information is available; 3) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; 4) increases in appropriations that become necessaty to maintain services; and 5) amendments to transfer appropriations between departments. The fifth category has no effect on the final budget and, therefore, is not addressed in this narrative. The actual operating revenues for the General Fund were less than the budgeted amount by $3.3 million, or 2.7%. The individual sources within the revenues fluctuated both positively and negatively. No individual source materially varied from the final budget. The 2010 adopted budget (November 17, 2009) projected Ad Valorem tax revenues remain at 20091evels with no projected growth in the tax digest and a decrease of 1% in sales tax revenues. As the economy continued to struggle, the Augusta Commission was unwilling to compound the effects on its citizens by considering a tax increase and approved significant expenditure reduction and use of $1.8 million in fund balance to fund a budgeted deficit. In July 2010 the Augusta Commission voted to reduce the 2010 mill rate by .093 mills to the roll back rate levels. Capital Projects Funds The Government uses Capital Projects Funds to account for the acquisition and construction of major capital facilities that are not financed by Proprietary Funds. Major funds included in the fund financial statements are the SPLOST Fund Phase III, SPLOST Fund Phase IV and SPLOST Fund Phase V. The proceeds of the special purpose 1% sales tax are accounted for in Capital Projects Funds until improvement projects are completed. The SPLOST Fund Phase IV's fund balance is $53.2 million and the SPLOST Fund Phase V's fund balance is $65.3 million, all of which is held for specific construction and improvement projects and capital acGuisitions. Proprietary Funds The activities of the Government that render services to the general public on a user charge basis, or that require periodic determination of revenues for public policy are accounted for as Enterprise Funds. The Government's proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net assets at the end of the year were as follows: Water and Sewer System Fund, $61.2 million; Augusta Regional Airport, $8.2 million; Nonmajor Enterprise funds, $6.9 million. The total growth (reduction) in net assets for previously mentioned funds were $3.2 million, ($70) thousand and $7.8 million, respectively. Other factors concerning the finances of these funds have already been addressed in the discussion of the Government's business-type activities. 11 Capital Assets and Debt Administration Capital Assets The GovernmenYs investment in capital assets for its governmental and business-type activities as of December 31, 2010 amounts to $11 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the Government, such as roads, bridges, streets and sidewalks, drainage systems and other similar items. Major capital asset transactions during the year included construction of infrastructure, buildings, acyuisition of public safety vehicles, construction of water and sewerage systems, and construction of a new airport terminal and building. Additional information on the Government's capital assets can be found in Note 3 of the notes to the financial statements of this report. The Government's Capital Assets (net of depreciation) December 31, 2010 Figure 4 Govemmental Business-type Activities Activities Total 2010 2009 2010 2009 2010 2009 Land $ 21,332,064 $ 21,157,064 $ 18,813,269 $ 18,390,781 $ 40,145,333 $ 39,547,845 Buildings 49,568,318 50,213,709 44,606,449 46,033,568 94,174,767 96,247,277 Improvements otherthan buildings 27,358,784 25,054,129 6,549,685 7,293,392 33,908,469 32,347,521 Waterand sewerage systems - - 549,769,283 45Q032,294 549,769,283 45Q032,294 Infrastructure 77,214,291 80,493,928 11,314,785 12,021,355 88,529,076 92,515,283 Vehicles, machinery and equipment 15,600,631 16,483,023 17,394,301 17,918,860 32,994,932 34,401,883 Richmond County Public Facilities 2,109,247 2,109,247 - - 2,109,247 2,109,247 Construction in progress 211,668,096 140,128,093 51,302,399 124,583,413 262,970,495 264,711,506 $ 404,851,431 $ 335,639,193 $ 699,750,171 $ 676,273,663 $1,104,601,602 $1,011,912,856 12 Long-Term Debt As of December 31, 2010, the Government had a total of $648.9 million in outstanding long-term debt. Of this amount, $476.5 million consists of revenue bonds backed by the revenues of the water and sewer system. The Government's Outstanding Debt General Obligation and Revenue Bonds December 31, 2010 Figure 5 _ _ __ __ _ ' Goremmental Businesss-type ' Acti�ities Activities Total ' 2010 2009 2010 ' 2009 2010 ' 2009 ' General obligation bonds ! $ 67,431,441 $ 51,458,058 $ - $ - $ 67,431,441 $ 51,458,058 ' Re�enue bonds 22,120,000 - 476,580,544 475,597,884 498,700,544 475,597,884 Otherdebt 28,020,300 28,289,184 54,832,231 48,319,708 82,852,531 ' 76,608,892 ! Total debt ' $ 117,571,7 $ 79,747,24 ;, $ 531,412,775 $ 523,917,59 I$ 648,984,516 '$ 603,664 i �amparative debt $ ���,�,�,, o �, �_ __ -- ___..�.__ _ . - . _ . m _ � __.. � 5�oo,oao,00� r-- .__.. _._. __ � __._� .. _ _. ....._ .._ _ _ ______ 1 � � u � S400,oao,o� F � _ _ _. _ . _ .. . _w � , � $300,0OO,OE� ; _ _ _ � _e_ �_ � _._ _... _.._._...__ __ __..__,..,, . _.,,_._.�___ � 201Q � �2�4 $200,006,Q(� j .° �-° — a. _.�.� _�_�� .� ,..,.,._.,.. _._._._. _.._.__ 1 $gUO,t�Of�,O� �—. . __ ___ -- . .....___� _ . .. ............ ...._„_,,,., — , � �. ' . .___._. _. ...._�_ __ _._______ � Ge�eral obligation bonds Reuenue bqnds Oc�er deb�# ; The Government bond rating was upgrade from A1 by Moody's Investor Service to Aa2 in June 2010, this bond rating was also confirmed by Fitch Rating Service. The bond ratings are clear indications of the sound financial condition of the Government. The 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 $452 million based on the 2010 County-wide bond digest of $4.52 billion Additional information regarding the Government's long-term debt can be found in Note 3 of the notes to the financial statements of this report. 13 Economic Factors and Next Year's Budget and Rates The following key economic indicators reflect the continued stability of the Government. • There is a budgeted use of existing fund balance in the 2010 adopted budget, and a decrease of the county wide millage rate. • The downtown area has with in a one mile radius the following capital projects under construction o The Government backed project • Trade, Event and Exhibit Center -$38 Million ■ Reynolds Street Parking Deck -$10 Million • Library - $24 Million • Judicial Center - $67 Million o Private / Other Development ■ KROC Center - $98 Million ■ GHSU School of Dentistry —$112 Million • The Government has received the following national rankings o Where to Retire Magazine: 8 Enticing Money-Saver Towns o RelocateAmerica: Top 10 Places to Live for 20ll (ranked 7` o The Brookings Institute: One of the nation's most resilient cities for the eighth straight time. o RelocateAmerica: Top Places to Live o Business Insider : The 20 Cities That Are Having An Awesome Recovery (ranked #6 ) • The Government has an unemployment rate of 103 %, slightly higher than the state average of 10.2%. • The 2010 tax digest increased by 114%, with .O1% of this from normal factors such as increased exemptions and the remaining 1.13% from reassessments. • In 2010 the monthly Local Option Sales Tax collections increased at a rate of 1.52% over 2009, as compared to • other similar governments whose sales tax collection changed at rates of -.065% to 5.93%. Budget Highlights for the Fiscal Year Ending December 31, 2010 Each year, the County's overall goal is to provide essential services to our citizens as cost effectively and professionally as possible. The Augusta Commission works diligently to plan for the future while insuring current programs and services are working as smoothly as possible. We continually seek to improve. We are pleased that through our fiscal responsibility we are able to maintain our current level of service without an increase in taxes. Governmental Activlties: The Ad Valorem Taxes are projected to remain steady at the 2009 level. The 2010 tax digest has shown a increase of approximately 1.14%. Other taxes are expected to remain steady or slightly decrease with an expected 1% decrease in sales tax revenues. The FY 2010 budget for the general fund is expected to be slightly above the 2009 level due to funding for the operating deficit of the transit department, and the continued rise in the cost of fuel and operating supplies. Several new public facilities began operations in 2010 increasing building operational costs. The general economic climate for the city government of 2010 is expected to be stable. The undesignated fund balance should decrease slightly by $1.8 million due budgeted use of fund balance to balance the General fund instead of increasing the county's millage rate. Business — type Activities: Overall Water and Sewer revenue is projected to increase by more than 3% due to the increased rates. Requests for Information This report is designed to provide an overview of the Government's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Finance Director, Augusta-Richmond County, Georgia, 530 Greene Street, Augusta, Georgia 30901. Questions concerning any of the information found in this report relating to the Richmond County Board of Health should be directed to the Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901. Questions concerning any of the information found in this report relating to Augusta Canal Authority should be directed to Augusta Canal Authority, 1450 Greene Street, Suite 400, Augusta, Georgia 30903. Questions concerning any of the information found in this report relating to Downtown Development Authority should be directed to Downtown Development Authority, 936 Broad Street, Suite 107, Augusta, Georgia 30901. 14 AUGUSTA, GEORGIA Statement of Net Assets December 31, 2010 Primary Government Component Units Augusta- Richmond Business Primary Department Augus[a Downtown Urban County Governmental Type Government of Canal Development Redevelopment Coliseum Activities Activities Total Health Authority Authority Authority Authoriry Assets Cash and temporary investments $ 181,679,772 $ SQ049,712 $ 231,729,484 $ 2,046,801 $ 819,555 $ 170,170 $ 1,664,425 $ 2,185,457 Receivables (net of allowance (for doubtful accounts) Taxes 5,625,942 - 5,625,942 - - - - - Accounts 18,09$983 24,695,884 42,794,867 68,690 19Q494 3,533 - 1ll,074 Interest 265,204 7,125 272,329 - - - - - Notes 3,362,263 - 3,362,263 - - - - - Intergovernmental - 202,603 202,603 781,296 - - - - Prepaid expenses 764,629 249,935 1,014,564 - 32,213 - - 41,789 Inventory 82,341 3,366,213 3,448,554 - 42,391 - - - Restricted cash and investments 108,629,833 51,206,893 159,836,706 - 1,892,008 - 3,896,848 - Intemal balances 5,583,295 (5,583,295) - - - - - - . Capital assets Land and construc[ion in progress 233,000,160 70,ll 5,668 303,115,828 1,947,997 827,826 - - 1,674,426 Other capital assets, net of . accumulateddepreciation 171,851,271 629,634,503 801,485,774 7,855,468 13,461,878 3,159,500 - 8,204,317 Otherassets 733,315 21,081,185 21,814,500 258,240 Total assets 729,677,008 845,026,406 1,574,703,414 12,70Q252 17,266,365 3,331,203 5,819,513 12,22Q063 Liabilities Accounts payable 13,375,656 8,713,676 22,089,332 1,25Q928 81,243 96,726 98Q836 Accrued interest 637,566 5,710;020 6,347,586 - - - - - Accrued salazies and vacation 1,959,031 , 398,456 2,357,487 359,832 48,464 - - - Other accrued liabilities 21,823,556 218,759 22,042,615 6,376 2,015 33,313 - Unearned revenue 1,026,312 - 1,026,312 - 21,860 - - - Liabilities due in less than one year 32,355,861 13,522,570 45,878,431 40,731 144,092 315,000 - Liabilities due in greater than one year 85,215,880 517,89Q205 603,106,085 497,575 623,036 7,685,000 Totalliabilities 156,394,162 546,453,686 702,847,848 2,155,442 920,710 13Q039 S,OOQ000 98Q836 Net assets Invested in capital assets net of � relateddebt 392,52Q278 194,948,749 587,469,027 9,442,389 13,522,576 3,157,500 - 9,878,743 Restricted for. Capital projects 127,306,669 15,416,712 142,723,381 - 1,87Q148 - - - Debtservice - 12,231,713 12,231,773 - - - - - Perpetual care 338,625 - 338,625 - - - - - Health and welfare - - - 1,378,578 - - - - Unrestricted 53,117,274 75,975,546 129,092,820 (296,157) 952,931 43,664 (2,18Q487) 1,360,484 Totalnetassets $ 573,282,846 $ 298,572,920 $ 871,855,566 $ IQ544,810 $ 16,345,655 $ 3,201,164 $ (2,18Q489) $ 11,239,227 The notes to the financial statements are an integral part of this statement. 19 AUGUSTA, GEORGIA Statement of Activities Year Ended December 31, 2010 Program Revenues Operating Capital Functions/Proerams Charges for Grants and Grants and Expenses Services Contributions Contributions Primary government: Govemmental activities: General government $ 41,420,563 $ 17,544,891 $ 3,061,604 $ - Judicial 17,197,271 7,797,373 233,11] - Publicsafery 82,198,232 7,236,047 1,024,014 - Public works 16,010,143 2,307,975 - - Health and welfaze 1,934,339 83,904 498,339 - Culture and recreation 20,351,136 989,824 1,203,581 - Housing and development 12,054,659 - 5,520,729 - Interest on Iong-term debt 1,539,180 - - - Total governmental activities 192,705,523 35,960,014 11,541,378 - Business-type activities: Waste management 6,192,260 9,715,639 - - Water and sewer 81,438,293 84,460,784 - - Airports 18,281,091 16,430,053 78 532,542 Municipalgolfcourse 629,179 376,667 - - Transit 4,935,179 727,297 181,639 3,551,587 Gazbage collection 15,519,972 15,626,417 - - Total business-type activities 126,995,974 127,336,857 181,717 4,084,129 Total primary governmem $ 319,701,497 $ 163,296,871 $ 11,723,095 $ 4,084,129 Component units: Richmond County Department of Health $ 16,274,599 $ 4,060,070 $ 10,733,243 $ - Augusta Canal Authority 1,724,050 853,681 392,694 66,700 Downtown Development Authority 536,602 59,257 207,194 626,710 Urban Redevelopment Authority 2,204,653 - - - Augsuta-Ricmond County Coliseum Authority 4,919,828 2,644,442 - - Total component units $ 25,659,732 $ 7,617,450 $ 11,333,131 $ 693,410 General revenues: Property taxes Sales taaces Franchise taxes Other taxes Unrestricted governmental revenues Revenues from use of money and property Miscellaneous Transfers Total general revenues and transfers Change in neY assets Net assets - beginning, Net assets - ending The notes to the financial statements are an integral part of this statement. 20 Net (Expense) Revenue and Changes in Net Assets Primary Government Component Units Augusta- Richmond Department Augusta Downtown Urban County Governmental Business-type of Canal Development Redevelopment Coliseum Activities Activities Total Health Authority Authority Authority Authority $ (20 $ - $ (20,814,068) $ - $ - $ - $ - $ - (9,166,787) - (9,166,787) - - - - - (73,938,171) - (73,938,171) - - - - - (13,702,168) - (13,702,168) - - - - - (1,352,096) - (1,352,096) - - - - - �is,is�,�3�) - (ia,is�,�3i� - - - - - (6,533,930) - (6,533,930) - - - - - (1,539,180) - (1,539,180) - - - - - (145,204,131) - (145,204,131) - - - - - - 3,523,379 3,523,379 - - - - - - 3,022,491 3,022,491 - - - - - - (1,318,418) (1,318,418) - - - - - - �2s2,siz� �zsz,siz� - - - - - - (474,656) (474,656) - - - - � - - 106,445 106,445 - - - - - - 4,606,729 4,606,729 - - - - - $ (145,204,131) $ 4,606,729 $ (140,597,402) $ - $ - $ - $ - $ - - - - (1,481,286) - - - - - - - - (410,975) - - - - - - - - 356,559 - - - - - - - - (2,204,653) - - - - - - - - (2,275,386) - - - (1,481,286) (410,975) 356,559 (2,204,653) (2,275,386) 53,931,423 - 53,931,423 - - - - - 72,629,786 - 72,629,786 - - - - - 2Q906,985 - 2Q906,985 - - - - - 19,039,510 - 19,039,510 - - - - 1,281,206 1,117,472 - 1,117,472 1,291,600 - - - 3,419,228 395,407 3,814,635 14,818 7,419 2,391 24,166 12,439 855,819 1,023,328 1,879,147 - 51,512 - - - (4,952,501) 4,952,501 - . - - - - 166,947,722 6,371,236 173,318,958 1,306,418 58,931 2,391 24,166 1,293,645 21,743,591 10,977,965 32,721,5% (174,868) (352,044) 358,950 (2,180,487) (981,741) 551,539,255 287,594,755 839,134,010 10,719,678 16,697,699 2,842,214 - 12,220,968 $ 573,282,846 $ 298,572,720 $ 871,855,566 $ 10,544,810 $ 16,345,655 $ 3,201,164 $ (2,180,487) $ ll,239;227 21 AUGUSTA, GEORGIA Balance Sheet Governmental Funds December 31, 2010 Fire Special Sales General Protection Tax Phase IV Assets Cash and temporary investments $ 22,618,769 $ 14,521,433 $ 53,827,392 Receivables (net of allowance for doubtful accounts) Taxes 3,649,985 496,985 - Accounts 8,399,497 - 11,868 Interest - - - Note - - - Prepaid items 763,944 - - Inventory 82,341 - - Restricted assets Reserve account - - - Perpetual care - - - Due from other funds 7,489,309 - - Total assets $ 43,003,845 $ 15,018,418 $ 53,839,260 Liabilities and fund balances Liabilities: Accounts payable $ 3,793,421 $ 333,594 $ 584,336 Due to other funds - - - Accrued salaries 1,449,876 370,423 28,378 Other accrued liabilities 2,200,607 - - Deferredrevenue 2,774,403 257,152 - Totalliabilities 10,218,307 961,169 612,714 Fund balances: Reserved for: Encumbrances 3,569,423 75,930 20,328,940 Inventory/prepaid items 846,285 - - Bond Projects - - - Unreserved - designated for; Other - 10,506,999 - Risk benefit 4,705,061 250,000 - Unreserved - undesignated 23,664,769 3,224,320 32,897,606 Unreserved, reported in nonmajor: Special revenue - - - Debt service _ - - Capital projects - - Permanent - - - Total fund balances 32,785,538 14,057,249 53,226,546 Total liabilities and fund balances $ 43,003,845 $ 15,018,418 $ 53,839,260 The notes to the financial statements are an integral part of this statement. 24 Other Total Special Sales Governmental Governmental Tax Phase V Funds Funds $ 36,495,613 $ 52,736,130 $ 180,199,337 - 1,478,972 5,625,942 3,582,769 2,467,447 14,461,581 265,204 - 265,204 - 3,362,263 3,362,263 - 685 764,629 - - 82,341 30,837,234 63,797,296 94,634,530 - 338,625 338,625 - - 7,489,309 $ 71,180,820 $ 124,181,418 $ 307,223,761 $ 5,873,990 $ 2,012,017 $ 12,597,358 - 1,665,580 1,665,580 - 100,687 1,949,364 - 17,508 2,218,115 - 4,196,039 7,227,594 5,873,990 7,991,831 25,658,011 29,743,463 10,534,668 64,252,424 - 685 846,970 10,139,388 66,843,594 76,982,982 - - 10,506,999 - - 4,955,061 25,423,979 - 85,210,674 - 14,265,514 14,265,514 - 213,082 213,082 - 23,812,091 23,812,091 - 519,953 519,953 65,306,830 116,189,587 281,565,750 $ 71,180,820 $ 124,181,418 $ 307,223,761 25 AUGUSTA, GEORGIA Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets December 31, 2010 Amounts reported for governmental activities in the statement of net assets are different because: Ending fund balance - governmental funds $ 281,565,750 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Historical cost of capital assets 535,659,031 Accumulated depreciation (130,807,600) 404,851,431 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. Adjustment of deferred revenue 6,201,282 Bond issue costs capitalized 731,790 6,933,072 Net assets of internal service funds 1,340,961 Less: cumulative amounts allocated to business-type activities 465,441 Less: capital assets included in adjustment for capital assets (376,713) 1,429,689 Long-term liabilities, inciuding bonds payable and accrued interest, are not due and payable in the current period and therefore are not reported in the funds. General obligation bonds payable (67,431,441) Revenue bonds payable (22,120,000) Compensated absences (4,617,061) Capital leases (1,070,201) Claims and judgements (6,028,938) Other post employement benefits liability (19,569,950) Annual pension liability (21,939) Accrued interest (637,566) (121,497,096) Net assets of governmental activities $ 573, 2 8 2,846 The notes to the financial statements are an integral part of this statement 27 AUGUSTA, GEORGIA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2010 Fire Special Sales General Protection Tax Phase IV Revenues Ta�ces - property $ 37,841,223 $ 5,686,403 $ - Taxes - other than property 52,052,628 10,506,999 - Licenses and permits 1,516,948 - - Use of money and property 1,370,898 89,808 368,060 Charges far current services 18,524,472 151,936 - Fines and forfeitures 4,970,334 - - Intergovernmental 3,844,271 - 851,445 Contributions and donations 48,610 - - Other 73,828 - - Total revenues 120,243,212 16,435,146 1,219,505 Expenditures Current: General government 27,454,137 - 549,523 Judicial 15,652,278 - - Public safety 55,757,652 21,320,486 334,220 Public works 5,726,070 - 4,586,206 Health and welfare 1,838,640 - 32,551 Culture and recreation 12,855,994 - 37,287 Housing and development 1,369,858 - - Capital outlay - 544,500 8,574,994 Debt service - - - Intergovernmental - - 210,172 Total expenditures 120,654,629 21,864,986 14,324,953 Excess (deficiency) of revenues over (under) exPenditures (411,417) (5,429,840) (13,105,448) Other financing sources (uses) Transfers in 3,636,100 4,960,000 - Transfers (out) (2,522,347) - - Capital lease proceeds 917,469 - - Bonds proceeds - - - Premium on bonds sold - - - Total other financing sources (uses) 2,031,222 4,960,000 - Net change in fund balances 1,619,805 (469,840) (13,105,448) Fund balance - beginning 31,165,733 14,527,089 66,331,994 Fund balance - ending $ 32,785,538 $ 14,057,249 $ 53,226,546 The notes to the financial statements are an integral part of this statement. 28 Other Total Special Sales Governmental Governmental Tax PhaseV Funds Funds $ - $ 11,077,927 $ 54,605,553 36,724,791 13,291,863 112,576,281 - 2,999,479 4,516,427 983,753 625,404 3,437,923 - 7,207,207 25,883,615 - 562,883 5,533,217 - 5,787,968 10,483,684 - 2,144,780 2,193,390 - 826,311 900,139 37,708,544 44,523,822 220,130,229 543,540 3,955,979 32,503,179 - 331,702 15,983,980 - 4,041,053 81,453,411 731,294 6,291,124 17,334,694 30,503,798 - 32,374,989 418,174 3,799,824 17,111,279 - 10,623,060 11,992,918 25,623,121 5,688,206 40,430,821 - 12,348,318 12,348,318 13,144 250,000 473,316 57,833,071 47,329,266 262,006,905 (20,124,527) (2,805,444) (41,876,676) - 10,776,470 19,372,570 �9,69�,900� �i2,s42,9i9� �2a,�63,166� - - 917,469 - 44,070,000 44,070,000 - 3,635,264 3,635,264 (9,697,900) 45,938,815 43,232,137 (29,822,427) 43,133,371 1,355,461 95,129,25'7 73,056,216 280,210,289 $ 65,306,830 $ 116,189,587 $ 281,565,750 29 AUGUSTA, GEORGIA Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2010 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ 1,355,461 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. Capital outlay 81,080,521 Depreciation expense (ll,843,994) 69,236,52� Governmental funds recognize revenues when current resources are provided; the Statement of Activities recognizes revenue when earned, resulting in a timing difference of current period revenues relating to converting from modified-accrual basis to full accrual basis. (788,272) The change in the net pension obligation or asset does not affect current financial resources and are not reported as a revenue or expense in the funds. 539,176 The change in the net other post employment benefit obligation or asset does not affect current financial resources and are not reported as a revenue or expense in the funds. (11,035,931) The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related accounts. General obligation bonds payable (15,973,383) Revenue bonds payable (22,120,000) Compensated absences 73,354 Capital leases 161,885 Claims and judgements 78,560 Bond issue costs capitalized 419,051 Accrued interest (301,148) (37,661,681) The net revenue of certain activities of the internal service fund is reported with governmental 98,311 Change in net assets of governmental activities $ 21,743,591 The notes to the financial statements are an integral part of this statement. 31 AUGUSTA, GEORGIA General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Budgeted Amounts Final Budget - Actual Positive 2009 Original Final Amounts (Negative) Actual Revenues Taxes - property $36,775,370 $ 36,775,370 $ 37,841,223 $ 1,065,853 $ 39,531,917 Taxes - other than property 52,683,820 52,683,820 52,052,628 (631,192) 52,604,037 Licenses and permits 1,582,000 1,582,000 1,516,948 (65,052) 1,396,547 Use of money and property 1,978,100 1,978,100 1,370,898 (607,202) 1,741,840 Charges for current services 18,804,420 18,820,420 18,524,472 (295,948) 17,676,616 Fines and forfeitures 5,439,820 5,439,820 4,970,334 (469,486) 4,967,862 Intergovernmental 4,984,210 6,156,943 3,844,271 (2,312,672) 4,253,024 Contributions and donations 10,640 34,405 48,610 14,205 16,097 Other 37,000 38,776 73,828 35,052 62,798 Total revenues 122,295,380 123,509,654 120,243,212 (3,266,442) 122,250,738 Expenditures Current: General government 25,325,162 28,633,988 27,454,137 1,179,851 26,807,908 Judicial 16,835,160 16,025,051 15,652,278 372,773 15,496,291 Public safety 57,698,515 57,936,155 55,757,652 2,178,503 57,767,154 Public works 6,839,929 6,529,488 5,726,070 803,418 5,972,836 Health and welfare 1,846,770 1,856,440 1,838,640 17,800 2,106,402 Culture and recreation 13,785,374 13,352,830 12,855,994 496,836 13,088,770 Housing and development 1,545,920 1,589,132 1,369,858 219,2�4 2,163,830 Total expenditures 123,876,830 125,923,084 120,654,629 5,268,455 123,403,191 Excess (deficiency) of revenues over (under) expenditures (1,581,450) (2,413,430) (411,417) 2,002,013 (1,152,453) Other financing sources (uses) Transfers in 3,944,540 3,858,720 3,636,100 (222,620) 14,3'75,443 Transfers (out) (4,159,300) (4,199,300) (2,522,347) 1,676,953 (2,399,116) Capital lease proceeds - - 917,469 917,469 1,127,154 Total other financing sources (uses) (214,760) (340,580) 2,031,222 2,371,802 13,103,481 Net change in fund balances $(1,796,210) $ (2,754,010) 1,619,805 $ 4,373,815 l 1,951,028 Fund balance - beginning 31,165,733 19,214,705 Fund balance - ending $ 32,785,538 $ 31,165,733 The notes to the financial statements are an integral part of this statement. 32 AUGUSTA, GEORGIA Fire Protection Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Budgeted Amounts Final Budget - Actual Positive 2009 Original Final Amounts (Negative) Actual Revenues Taxes - property $ 5,475,820 $ 5,475,820 $ 5,686,403 $ 210,583 $ 5,869,215 Taxes - other than property 10,880,000 10,880,000 10,506,999 (373,001) 10,821,499 Use of money and property 340,000 340,000 89,808 (250,192) 173,709 Charges for current services 127,000 127,000 151,936 24,936 168,844 Contributions and donations - - - 1,000 Total revenues 16,822,820 16,822,820 16,435,146 (387,674) 17,034,267 Expenditures Current: Public safety 21,604,720 21,689,745 21,320,486 369,259 21,068,619 Capital outlay 178,100 1,129,788 544,500 585,288 1,135,655 Total expenditures 21,782,820 22,819,533 21,864,986 954,547 22,204,274 Excess (deficiency) of revenues over (under) expenditures (4,960,000) (5,996,713) (5,429,840) 566,873 (5,170,007) Other financing sources (uses) Transfers in 4,960,000 4,960,000 4,960,000 - 4,960,000 Total other financing sources (uses) 4,960,000 4,960,000 4,960,000 - 4,960,000 Net change in fund balances $ - $ (1,036,713) (469,840) $ 566,873 $ (210,007) Fund balance - beginning 14,527,089 14,737,096 Fund balance - ending $ 14,057,249 $ 14,527,089 The notes to the financial statements are an integral part of this statement. 33 AUGUSTA, GEORGIA Statement of Net Assets Proprietary Funds December 31, 2010 Enterprise Funds Water Augusta Other Internal and Sewer Regional Enterprise Service Assets System Airport Funds Total Funds Current assets Cash and temporary investments $ 19,247,877 $ 10,363,508 $ 20,438,327 $ 50,049,712 $1,480,435 Receivables (net of allowance for doubtful � accounts) Accounts 18,516,850 375,681 5,803,353 24,695,884 3,637,402 Interest 6,542 - 583 7,125 - Intergovernmental - 202,603 - 202,603 - Prepaid expenses 249,935 - - 249,935 1,525 Inventory 2,794,536 331,584 240,093 3,366,213 - Total current assets 40,815,740 11,273,376 26,482,356 78,571,472 5,119,362 Noncurrent assets Restricted cash and investments 21,412,265 20,280,543 9,514,065 51,206,873 13,656,678 Deferred bond issuance costs 5,302,755 889,935 584,783 6,777,473 - Prepaid bond interest 13,930,212 - - 13,930,212 - Capital assets, net 599,623,343 52,448,837 47,677,991 699,750,171 376,713 Other assets 373,500 - - 373,500 - Total noncurrent assets 640,642,075 73,619,315 57,776,839 772,038,229 14,033,391 Total assets 681,457,815 84,892,691 84,259,195 850,609,701 19,152,753 Liabilities Current liabilities Accounts payable 4,920,152 1,394,540 2,398,984 8,713,676 778,298 Accrued interest 5,710,020 - - 5,710,020 - Due to other funds 1,896,474 2,249,979 971,401 5,117,854 705,875 Accrued salaries and vacation 741,690 254,685 256,651 1,253,026 9,667 Other accrued liabilities - - 218,759 218,759 13,852 Current portion of notes payable 2,555,048 - - 2,555,048 - Current portion of leases payable 942,309 - 1,100,643 2,042,952 - Current portion of revenue bonds payable 7,285,000 - 785,000 8,070,000 - Total current liabiliries 24,050,693 3,899,204 5,731,438 33,681,335 1,507,692 Noncurrent liabilities Closure/postclosure accrual - - 16,245,410 16,245,410 - Revenue bonds payable 438,115,990 19,605,000 10,789,554 468,510,544 16,304,100 Notes payable 26,510,625 - - 26,510,625 - Capitalleases 5,503,461 - 1,120,165 6,623,626 - Total noncurrent liabilities 470,130,076 19,605,000 28,155,129 517,890,205 16,304,100 Totalliabilities 494,180,769 23,504,204 33,886,567 551,571,540 17,811,792 Net assets Invested in capital assets, net of related debt 118,710,910 32,843,837 43,394,002 194,948,749 376,713 Restricted for debt service 7,365,190 4,863,831 2,692 12,231,713 - Restricted for capital projects - 15,416,712 - 15,416,712 - Unrestricted 61,200,946 8,264,107 6,975,934 76,440,987 964,248 Total net assets $ 187,277,046 $ 61,388,487 $ 50,372,628 $ 299,038,161 $1,340,961 Some amounts reported for busirzess-type activities in the statement of net assets are different because of the following: Certain internal fund assets and liabilities are included with business-type activities. $ (361,921) Certain internal fund expenses are allocated to business-type activities. (103,520) Total net assets for business-type activities $ 298,572,720 The notes to the financial statements are an integral part of this statement. 34 AUGUSTA, GEORGIA Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds Year Ended December 31, 2010 Enterprise Funds Water Augusta Other Internal and Sewer Regional Enterprise Service System Airport Funds Total Funds Operating revenues Charges and fees $ 84,460,784 $ 15,503,504 $ 26,547,274 $ 126,511,562 $ 31,630,650 Total operating revenues 84,460,784 15,503,504 26,547,274 126,511,562 31,630,650 Operating expenses Personal services and employee benefits 13,180,215 3,782,661 4,962,092 21,924,968 457,534 Purchased/contracted services 7,012,770 1,222,503 14,802,532 23,037,805 561,140 Supplies 8,603,711 9,035,531 1,843,447 19,482,689 226,758 Repairs and maintenance 5,088,167 277,196 2,022,156 7,387,519 4,518,483 Interfund/interdepartmental charges 2,188,950 221,460 628,615 3,039,025 - Other costs 770 - - 770 66,886 Depreciation 22,791,229 2,181,241 2,664,930 27,637,400 21,169 Closure/postclosure accrual - - 750,675 750,675 - Lease expense - - - - 2,147,048 Risk benefit charges - - - - 1,061,508 Insurance - - - - 23,064,804 Total operating expenses 58,865,812 16,720,592 27,674,447 103,260,851 32,125,330 Operating income (loss) 25,594,972 (1,217,088) (1,127,173) 23,250,711 (494,680) NonoPerating revenue (expense) Interest revenue 165,056 81,900 170,646 417,602 277,012 Saleofproperty 32,104 42,737 18,334 93,175 4,669 Other revenue - 1,683,019 63,098 1,746,117 78,353 Intergovernmental - 377,018 3,888,828 4,265,846 - Interest expense (22,497,445) (1,037,088) (109,934) (23,644,467) (308,658) Total nonoperatingrevenue (expense) (22,300,285) 1,147,586 4,030,972 (17,121,727) 51,376 Income (loss) before transfers 3,294,687 (69,502) 2,903,799 6,128,984 (443,304) Transfers in - - 5,077,501 5,077,501 438,095 Transfers out - - (125,000) (125,000) - C6ange in net assets 3,294,687 (69,502) 7,856,300 11,081,485 (5,209) Total net assets - beginning 183,982,359 61,457,989 42,516,328 1,346,170 Total net assets - ending $ 187,277,046 $ 61,388,487 $ 50,372,628 $ 1,3 40,961 Some amounts reported for business-type activities in the statement of net assets are different because of the following: Certain internal fund expenses are allocated to business-type activities. (103,520) Total change in net assets for business-type activities $ 10,977,96 The notes to the financial statements are an integral part of this statement. 35 AUGUSTA, GEORGIA Statement of Cash Flows Proprietary Funds Year Ended December 31, 2010 Enterprise Funds Water Augusta Other Internal & Sewer Regional Enterprise Service System Airport Funds Total Funds Operating activities Cash received from customers $ 78,021,959 $15,828,236 $ 25,801,953 $119,652,148 $ - Cash received from contributions - - - - 30,044,114 Cash advanced from other funds - - 230,134 230,134 704,350 Cash paid to suppliers (16,712,213) (11,008,074) (18,731,806) (46,452,093) (29,544,497) Cash paid to employees (13,183,418) (3,761,654) (4,941,733) (21,886,805) (485,272) Cash paid for interfund services used (8,442,109) - (5,245) (8,447,354) - Net cash provided by (used in) operating activities 39,684,219 1,058,508 2,353,303 43,096,030 718,695 Noncapital financing activities Transfers in - - 5,077,501 5,077,501 439,643 Transfers out - - (125,000) (125,000) (1,548) Operating grants - - 72,070 72,070 - Interest expense on operating capital - - 22,393 22,393 (28,908) Otherrevenue - - - - 77,953 Otherexpense - 26,928 - 26,928 - Net cash provided by (used in) noncapital financing activities - 26,928 5,046,964 5,073,892 487,140 Capital and related financing activities Proceeds from grants 336,116 2,317,034 2,653,150 - Proceeds from sale of property 32,104 - 160,454 192,558 7,791 Proceeds from notes payable borrowings 8,840,668 - - 8,840,668 - Proceeds from capital leases 346,393 - 528,705 875,098 - Interest on bond funds 8,614 - - 8,614 - Loan origination fee (373,500) - - (373,500) - Other miscellaneous income 1,735,336 40,288 1,775,624 400 Proceeds from bond issuance - - 9,390,734 9,390,734 - Purchase of capital assets (38,095,367) (1,ll5,623) (12,045,038) (51,256,028) - Bond issuance costs paid - - (285,629) (285,629) - Payments on bonds issued - (1,700,000) (1,700,000) - Interest paid on capital debt (21,121,471) (1,037,088) (123,496) (22,282,055) (234,611) Payments on capital leases (1,339,153) - (970,180) (2,309,333) - Principal paid on revenue bonds (6,455,000) - - (6,455,000) - Net cash used in capital and related financing activities (58,156,712) (81,259) (2,687,128) (60,925,099) (226,420) Investing activities Interest received 163,693 81,900 170,755 416,348 276,788 Net cash provided by investing activities 163,693 81,900 170,755 416,348 276,788 Net decrease in cash and cash eguivalents/investments (18,308,800) 1,086,077 4,883,894 (12,338,829) 1,256,203 Cash and cash equivalents/investments Beginning of year 58,968,942 29,557,974 25,068,498 113,595,414 13,880,910 End of year $ 40,660,142 $30,644,051 $ 29,952,392 $101,256,585 $15,137,113 The notes to the financial statements are an integral part of this statement. 36 AUGUSTA, GEORGIA Statement of Cash Flows Proprietary Funds Year Ended December 31, 2010 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) $ 25,594,972 $ (1,217,088) $ (1,127,173) $ 23,250,711 $ (494,680) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 22,791,224 2,181,241 2,664,930 27,637,400 21,168 Closure/post closure costs - - 750,675 750,675 - Department of the Army loan (2,455,980) - - (2,455,980) - Net change in assets and liabiliries: Accounts receivable (3,982,845) 324,732 (745,321) (4,403,434) 276,517 Inventory (350,907) 1,813 (24,935) (374,029) - Prepaid expenses (5,968) - - (5,968) 1,612,515 Accounts payable 749,443 551,159 2,326 1,302,928 225,226 Accrued salaries and vacation (3,203) 27,291 20,359 44,447 (27,738) Other accrued liabilites - - (41,062) (41,062) 13,852 Due to other funds (2,652,522) (810,640) 853,504 (2,609,658) (908,165) Total adjustments 14,089,247 2,275,596 3,480,476 19,845,319 1,213,375 Net cash provided by (used in) operating activities $ 39,684,219 $ 1,058,508 $ 2,353,303 $ 43,096,030 $ 7 18,695 Reconciliation of cash and cash equivalents to the balance sheets Cash and cash equivalents in current assets $ 19,247,877 $10,363,508 $ 20,438,327 $ 50,049,712 $ 1,480,435 Restricted cash and cash equivalents included in noncurrent cash and investments 21,412,265 20,280,543 9,514,065 51,206,873 13,656,678 Net cash and cash equivalents 0,660,142 0,644,051 29,952, 9 101,256,585 15, 137,113 Noncash transactions Amortization of interest expense $ 1,233,297 $ 36,508 $ - $ - $ - Accrued interest on notes payable (7,032) - - - - Principal and interest reduction of note payable - Department of Army 2,455,980 - - - - Premiums on bonds sold 644,243 The notes to the financial statements are an integral part of this statement. 37 AUGUSTA, GEORGIA Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2010 Private-purpose Pension Trust Fund Agency Trust Funds Joseph R. Lamar Funds Assets Cash and cash equivalents $ 5,775,907 $ 1,284 $ 10,586,935 Investments U.S. Government securities 12,136,837 - - Corporate bonds 6,054,555 - - Equity securities 41,539,691 - - Receivables (net of allowance for doubtful accounts) Taxes - - 21,274,839 Accounts 1,608,547 - - Interest 233,251 - - Perpetual care - 5,000 - Total assets 67,348,788 6,284 31,861,774 Liabilities Accounts payable 272 - - Due to other funds - - 10,586,935 Deferred revenue - - 21,274,839 272 - 31,861,774 Net assets Held in trust for pension benefits and other purposes (See Schedules of Funding Progress) $ 67,348,516 $ 6,284 The notes to the financial statements are an integral part of this statement. 38 AUGUSTA, GEORGIA Statement of Changes in Fiduciary Net Assets Fiduciary Funds Year Ended December 31, 2010 Private-purpose Pension Trust Fund Trust Funds Joseph R. Lamar Additions Contributions Contributions - employer $ 3,069,309 $ - Contributions - plan member 338,309 - Total contributions 3,407,618 - Investment earnings Interest and dividend income 6,189 307 Net increase (decrease) in fair value of investments 3,787,543 - Total Investment earnings 3,793,732 307 Less investment expense (433,467) - Net investment earnings 3,360,265 307 Total additions 6,767,883 307 Deductions Benefit payments 7,007,619 - Total deductions 7,007,619 - Net increase (decrease) in plan net assets (239,736) 307 Total net assets - beginning 67,588,252 5,977 Total net assets - ending $ 67,348,516 $ 6,284 The notes to the financial statements are an integral part of this statement. 39 AUGUSTA, GEORGIA Notes to Financial 5tatements Year Ended December 31, 2010 Note 1- Summary of signifcant accounting policies Augusta, Georgia ("the Government") accounts for its 6nancial position and results of operations in accordance with accounting principles generally accepted in the United States of America (GAAP) applicable to governmental units. The GovernmenYs reporting entity applies all relevant Government Accounting Standards Board (GASB) pronouncements. In the government-wide financial statements and in the proprietary fund financial statements, the Government applies Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Accordingly, the Government has adopted accounting policies, as described below. A. Reporting entity Augusta is located in the east central section of the state on the south bank of the Savannah River, which serves as the boundary between Georgia and South Carolina. Augusta is on the fall line and has a landscape dotted with foothills which descend to the coastal plain. Augusta is the head of the navigation on the Savannah River and is 135 miles east of Atlanta, 127 miles northwest of the port of Savannah, and 72 miles southwest of Columbia, South Carolina. Augusta is the trade center for 13 counties in Georgia and five in South Carolina, a section known as the Central Savannah River Area. The Government was created by legislative act in the State of Georgia in 1995 from the unification of the two governments, the City of Augusta, Georgia and Richmond County, Georgia. On June 20, 1995, the citizens of Richmond County and the City of Augusta voted to consolidate into one government named Augusta, Georgia. The officials for the new government were elected and, based on the charter, took office on January 1, 1996. The unified government combined all functions and began financial operations January l, 1996. The Government is governed by a full-time Mayor, with a term of four years, and a ten member Commission, who serve on a part-time basis and are elected to staggered terms of four years. The Mayar and Commission appoint an Administrator who serves as a full-time administrative officer and is responsible for the daily operations of the Government. The Government's financial statements include the accounts of all Augusta and Richmond County operations. The criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether: • the organization is legally separate (can sue and be sued in their own name) • the Government holds the corporate powers of the organization • the Government appoints a voting majority of the organization's board • the Government is able to impose its will on the organization • the organization has the potential to impose a financial benefit/burden on tbe Government • there is fiscal dependency by the organization on the Government Utilizing the above criteria, the following agencies and commissions were included using the blending method in the financial statements: Augusta Port Authority, due to degree of fiscal dependency on the Government, and Richmond County Public Facilities, Ina (see Note 4D). Complete financial statements for the individual component units may be obtained at the following address: Augusta, Georgia, Finance Department, 530 Greene Street, Augusta, Georgia 30901. The Government's other component units; the Department of Health, Urban Redevelopment Authority, Augusta- Richmond County Coliseum Authority, Augusta Canal Authority and Downtown Development Authority are included in separate columns in the accompanying government-wide financial statements. These units are reported in separate columns to emphasize that they are legally separate from the Government. Separate financial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901. Separate financial statements for the Augusta-Richmond County Coliseum Authority may be obtained from the Civic Center, 601 Seventh St., Augusta, Georgia 30901. Separate financial statements for the Downtown Development 43 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) Authority may be obtained from the Downtown Development Authority at 936 Broad Street, Suite 107, Augusta, Georgia, 30901. Separate financial statements for the Augusta Canal Authority may be obtained from the Augusta Canal Authority at 1450 Greene Street, Suite 400, Augusta, Georgia, 30903. Information for the Department of Health and Augusta-Richmond County Coliseum Authority is presented for the year ended June 30, 2010, which were the latest financial statements available. The Department of Health and Augusta- Richmond County Coliseum Authority operate with the June 30 fiscal year end, which is different from the governments fiscal year end. Urban Redevelopment Authority — A voting majority of the board is appointed by the Government, and fiscal dependency. Augusta Canal Authority — A voting majority of the board is appointed by the Government, and fiscal dependency. Richmond County Department of Health - A voting majority of the board is appointed by the Government. Downtown Development Authority — A voting majority of the board is appointed by the Government. Augusta-Richmond County Coliseum Authority — A voting majority of the board is appointed by the Government, and fiscal dependency. B. Basis of presentation Government-wide statements: The statement of net assets and the statement of activities display information about the primary government. These statements include the financial activities of the overall government. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the Government. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. Likewise, the primary governrrrent is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Government and for each function of the Government's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund financial statements: The fund financial 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 eyual 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. 44 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) 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 IV Fund — This fund was established for expenditures specifically budgeted from revenue from the one percent (1%) sales tax (Phase N) collected from the years 2001 - 2006 to be used primarily for public works, recreation and outside agency projects. Special Sales Tax Phase V Fund — This fund is a capital projects fund that accounts for receipts and disbursements of the one percent (1%) sales tax collected beginning March 2006 and expiring the quarter after the total of $160 million has been collected. The revenue sources are sales tax and earned interest, and expenditures will be for capital outlay projects, primarily for public facilities, public works, recreation, and outside agency projects. The funds will also be used to repay $44 million bonds issued for the expansion at the Webster Detention Center and the construction of the Trade, Event and Exhibit Center. Additionally the funds will be used for the repayment of $8 million bonds issued by the Canal Authority. The Government reports the following nonmajor governmental funds: Snecial 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 StreeY', "Urban Street Lights", and "Sanitation". Emergency Telephone System Fund - This fund accounts for the receipt and disbursement of revenues of the emergency telephone response system. Capital Outlay Fund - This fund accounts for the disbursement of revenues for all capital expenditures in General Fund departments. Capital expenditures are defined as any non-disposable item over $500 which includes vehicles, office and computer equipment, communications equipment, building renovations and office furniture. Law Enforcement Fund - This fund accounts for revenue and expenditures of the Sheriff s Department and Jail. Occupational Tax Fund - This fund accounts far the receipt and disbursement of taac revenues restricted for fire protection services in the unincorporated area only. 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. Hotel/Motel tax and Promotion/Tourism Fund - This fund accounts for the receipt and disbursement of hotel/motel and beer/wine taY revenues to the Augusta-Richmond County Convention & Visitors Bureau and the Augusta-Richmond County Coliseum Authority. Housing and Neighborhood Development Fund - This fund accounts for the financing and construction of various community development projects from grants received from the U.S. Department of Housing and Urban Development. Urban Development Action Grant (UDAG) Fund - This fund accounts far 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. Federal Drug Fund - This fund accounts for activities associated with drug education and enforcement. State Drug Fund - This fund accounts for activities associated with drug education and enforcement. 45 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) Law Library — This fund accounts for receipt and disbursement of the 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 licensing and fees revenue and related expenditures. Wireless Phase Fund — This fund accounts for activities associated with 911 charges for wireless service. Perpetual Care I Fund - This fund accounts for monies collected from sale of perpetual care contracts at Government-owned cemeteries after October 1, 1970, as well as receipt of investment earnings on all perpetual care investments and payment of cemetery maintenance expenditures. Downtown Development Fund — This fund accounts for excise taxes collected on rental motor vehicles, and debt payments made and appropriations given to the Downtown Development Authority. Canine Forfeitures - This fund accounts for proceeds recovered from drug arrests, which are allocated to the canine unit in return for their assistance. NPDES Permit Fees - This fund accounts for a per acre environmental fee charged to all contractors who disturb more than one acre of land at a building site. Transportation and Tourism Fund — This fund accounts for a fee to provide enhanced public transportation services and to enhance the tourism opportunities in the Historic Heritage District The Government has implemented a$1.00 per night room fee. In exchange for the transportation fee, payers of the fee shall be entitled to free use of the public transportation systems for the duration of their hotel stay in Augusta. The revenues generated by the transportation fee shall be used to fund and enhance public transportation operation, management of the Trade Exhibit and Event Center, and to revitalize the Historic Heritage Districts of Augusta to enhance the transportation and tourism services available in Augusta. Drug Court — This fund accounts for activities associated with drug education and enfarcement. Urban Redevelopment Projects — This fund accounts for the use of the related loan funds to assist the City in alleviating economic deterioration by means of increasing public and private investments in order to aid in economic recovery to strengthen the economics, employment, and tax base of the City. More specifically, the proceeds will finance the development of the Laney-Walker and Bethlehem Urban Redevelopment Area. Debt Service Funds 2006 GO Sales Tax Bonds Debt Service Fund — This fund accounts for the general obligation bonds related to the General Obligation Sales Tax Bonds, Series 2006. The bonds are to be repaid with funds from SPLOST Phase V. 2009 GO Sales Tax Bonds Debt Service Fund — This fund account for the general obligation bonds related to the General Obligation Sales Tax Bonds, Series 2009. The bonds are to be repaid with funds from SPLOST Phase VI. 2010 GO Sales Tax Bonds Debt Service Fund - This fund accounts for the general obligation bonds related to the General Obligation Sales Tax Bonds, Series 2010. The bonds are to be repaid with funds from SPLOST Phase VII. Coliseum Authority Revenue Bonds Debt Service — This fund accounts for the costs of certain acquisitions and capital improvements to the Augusta Entertainment Center Complex and the TEE Center Project. 46 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) 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 II Fund - This fund accounts for financing and construction of various construction and road improvements, drainage, jail improvements, and museums. Financing is to be provided by receipts from a 1991 special one percent local option sales tax referendum. Special Sales Tax Phase III Fund — The Special Sales Tax Phase III Fund is a capital projects fund that accounts for the receipts and disbursements of one percent (1%) sales tax currently collected from 1996 through 2000. The primary revenue sources are sales taxes, and the primary expenditures are capital outlay projects, primarily for the public works, recreation and outside agency projects. Special Sales Tax Phase VI Fund — This fund is a capital projects fund that accounts for the receipts and disbursements of the one percent (1%) sales tax approved by the taxpayers on June 16, 2009. Collections are projected to start January 1, 2011. In 2009 the City of Augusta bonded $30.5 million of the estimated 184.7 million SPLOST. The revenue sources are sales tax and earned interest and expenditures will be primarily for the following: $10 million dollars was returned to the general fund as a reimbursement for the one time use of general fund balance for the purchase and demolition of the Gilbert Manor Housing projects by the Medical College of Georgia for the expansion of MCG's dental school, $18 million for renovations to the municipal building, $17 million to replace emergency services vehicles and 10.9 million to parks and recreation. Of the estimated $184.7 million dollars, $124 million will go towards infrastructure and $60.7 million will go towards non infrastructure projects. Coliseum and TEE Center Capital Projects — This fund is a capital projects fund that accounts for the costs of acquiring, constructing, and installing certain capital improvements to the existing multi-use coliseum and civic center type facility, known as the Augusta Entertainment Center Complex, a portion of the costs of acquiring, constructing, and installing a new multi-use coliseum and civic center type facility, to be known as the "Augusta Trade, Exhibition, and Event Center" (TEE Center Project). Permanent Fund Perpetual Care II Fund - This fund accounts for the principal originally donated for the sale of perpetual care contracts at government-owned cemeteries after October 1, 1970. The principal must be maintained intact and invested. The Government reports the following major enterprise funds: Water and Sewer System Fund — This fund is used to account for the activity of providing water and sewer services to the residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, operations, maintenance, 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 majar airlines is available. The Government reports the following nonmajar enterprise funds: 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 18-hole golf course located within the city limits. 47 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) Transit Fund - This fund accounts for the operations of the Augusta Public Transit which provides scheduled bus service within Richmond and Columbia counties. Daniel Field Airport Fund - This fund accounts for revenue and expenses related to Daniel Field Airport. Garbage Collection Fund - This fund accounts for receipt and expenses related to the Government's garbage collection contract. The Government also reports the following internal service funds: Risk Management Fund — This fund accounts for the receipt and disbursement of settlement exposure and damage expense claims, commercial insurance premiums and bond on certain employees and elected officials. Fleet Operations Fund — This fund accounts for the operation and maintenance of County vehicles. The Fund bills other County funds at amounts that will approximately recover all the cost of the services provided. Workers' Compensation Fund — This fund accounts for the receipt and disbursement of self-insured workers' compensation claims. Employee Health Benefits Fund — This fund accounts for the receipt and disbursement of self-insured employee group health insurance claims. Unemployment Fund — This fund accounts for the receipt and disbursement of unemployment benefits. Long-term Disability Insurance Fund — This fund accounts for the receipt and disbursement of long-term disability claims. GMA Leases Fund — This fund accounts for the receipt and disbursement of the lease pool agreement with the Georgia Municipal Association. Additionally, the Government reports the following fund types: Pension Trust Fund — The Government has pension trust funds that account for the GovernmenYs employees' pension plans. The Government maintains the following pension trust funds: 1945 Pension Trust Fund, 1977 Pension Trust Fund, and the General Retirement Fund. Private Purpose Trust Fund — The Government has a private-purpose trust fund that accounts for resources legally held in trust to finance awards for children attending Joseph R. Lamar School. The principal amount of the gift is to be maintained intact and invested. Investment earnings are used for the awards. The Government maintains the foliowing private-purpose trust fund: Joseph R. Lamar Fund. 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 taac 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. 48 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of signiCcant accounting policies (Continued) C. Measurement focus and basis of accounting Government-wide, Proprietary and Fiduciary Fund Financial Statements — The government-wide, proprietary fund and fiduciary financial statements are reported using the economic resources measurement focus, except for agency funds which have no measurement focus. The government-wide, proprietary fund and fiduciary financial statements are reported using the accrual basis of 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 taaces, 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 reyuirements have been satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Government enterprise funds are charges to customers for sales and services. The Government also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Governmental Fund Financial Statements — Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period. The Government considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, expect for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual are property taxes, licenses, interest revenues and charges for services. State- shared revenues collected and held by the state at year-end on behalf of the Government also are recognized as revenue. Fines, fees and permits are not susceptible to accrual because generally they are not measurable until received in cash. Grant revenues which are unearned at year-end are recorded as unearned revenues. Under the terms of grant agreements, the Government funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Government's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. D. Budgets and budgetary accounting The Government generally follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Budgetary hearings are held in August to discuss departmental budgets. 2. The Administrator presents the tentative budget to the Commission in October. 3. The permanent budget is legally adopted by the Commission prior to the start of the next fiscal year. 49 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) 4. All budget revisions or changes must be approved as required by Georgia law and administrative policy. Transfer of budgeted amounts within operating categories within departments can be requested by department directors. Transfer of budget amounts involving capital outlay or salaries require approval of the Augusta-Richmond County Commission. The Augusta-Richmond County Commission must approve revisions that alter the total expenditures of any department or fund. Budgets for capital items may be reappropriated in the ensuing year's budget. Departments may request for other budget items to be reappropriated in the form of a budget 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. Far the purposes of financial statement presentation, the Government considers all highly liyuid investments with an original maturity of three months or less, or with insignificant early withdrawal penalties, to be cash equivalents. Exceptions include the GovernmenYs 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 e�ent that they are secured by the Federal Deposit Insurance Corporation. G. Investments Investments are reported at fair value. Fair value is determined as follows: short-term investments are reported at cost, which approximates fair value; securities traded on national exchanges are valued at current prices or current prices of similar securities; securities for which an established market does not exist are reported at estimated fair value using selling prices for similar investments for which there is an active market; fair value of real estate is based on appraised values. H. Inventories and prepaid expenses Inventories in the governmental funds are valued at cost using the first-in, first-out method. Inventories in the proprietary funds are valued at the lower of cost (first-in, first-out) or market. The costs of governmental fund-type inventories and prepaid expenses are recorded as expenditures when consumed rather than when purchased. Reported inventories and prepaid expenses are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources". 50 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 1- Summary of significant accounting policies (Continued) 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 asset 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 7anuary 1, 2001, consist of the streets network that were acquired or that received substantial improvements subsequent to January 1, 1980. The streets network is reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Depreciation is computed using the straight-line method. A summary of the estimated useful lives is as follows: Vehicles 5 years Furniture and fixtures 7 years Machinery and equipment 10 years Buildings and improvements 30 years Water and Sewer systems 30 - 70 years Infrastructure 30 years M. Compensated absences The vacation policy of the Government provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Government's government-wide financial statements and proprietary fund financial statements, an expense and a liability for compensated absences and the salary-related payments are recorded as leave is earned. The Government has assumed a first-in, first-out method of using accumulated compensated time. The portion of that time that is estimated to be used in the ne� fiscal year has been designated as a current liability in the government-wide financial statements. No accrual has been established for accumulated sick leave of employees since it is the Government's policy to record the cost of sick leave only when it is used. N. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. O. Reclassification Certain 2009 amounts have been reclassified to conform to the 2010 financial statement presentation. 51 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 2- Stewardship, compliance and accountability A. Excess of expenditures over appropriations Expenditures Variance Budget Actual (Negative) Nonmajor Governmental Funds Urban Services District Fund General government $ 1,439,120 $ 1,502,226 $ (63,106) Public works 434,140 447,350 (13,210) Capital Outlay Fund Judicial 2,600 2,621 (21) Urban Development Action Grant Fund Housing and development 11,800 23,116 (11,316) 5% Victim's Crime Assistance Fund Judicial 300,750 325,581 (24,831) Urban Redevelopment Projects Debt service 0 7,523 (7,523) 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 Hotel/Motel Tax and Promotion/Tourism $ (1) Housing and Neighborhood Development (121,341) Urban Redevelopment Projects (7,523) Internal Service Funds Fleet Operations (127,121) GMA Leases (31,800) Note 3— Detailed notes on all funds A. Deposits and investments Primar�government Deposits: Custodial Credit Risk for deposits is the risk that, in the event of bank failure, a government's deposits may not be returned to it. At December 31, 2010 approximately $278,400,000 of the Government's approximate $288,500,000 bank balance was uninsured. Of these uninsured deposits, none were collateralized with securities held by the financial institution's trust department or agent in the GovernmenYs name, approximately $240,100,000 were collateralized with securities held by the financial institution, by its trust department or agency, but not in the GovernmenYs name, and approximately $38,300,000 were uncollateralized. Investments: Primary Government (Other than Pension Trust Funds) The investment policy of the Government is consistent with the State of Georgia's policy, which is to maximize the protection of State funds on deposit while accruing an advantageous yield on those funds in excess of those required for cunent operating expenses (Official Code of Georgia Annotated [OCGA] 50-17-51). 52 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (continued) Authorized pool investments are limited to the following in accordance with State statutes: 1) Obligations of the State of Georgia or of other states; 2) Obligations issued by the United States government; 3) Obligations fully insured or guaranteed by the United States government or a United States government agency; 4) Obligations of any corporation of the United States government; 5) Prime banker's acceptances; 6) Repurchase Agreements; 7) Obligations of other political subdivisions of the State; and 8) Commercial paper issued by domestic corporations. Authorized investments are subject to certain restrictions. Pooled cash and cash equivalents and investments are grouped into portfolios for investment purposes according to the operating needs of the State of Georgia and other pool contributors. Pension Trust Funds In accordance with Official Code of Georgia Annotated Public Retirement System Investment Authority Law, Public Retirement Systems may invest in the following: 1) United States or Canadian corporations or their obligations with limits as to the corporations' size and credit rating. 2) Repurchase and reverse repurchase agreements for direct obligations of the United States government and for obligations unconditionally guaranteed by agencies. 3) FDIC insured cash assets or deposits. 4) Bonds, notes, warrants, loans or other debt issued or guaranteed by the United States government. 5) Taxable bonds, notes warrants or other securities issued and guaranteed by any state, the District of Columbia, Canada or any province in Canada. 6) Bonds, debentures or other securities issued or insured or guaranteed by an agency, authority, unit, or corporate body created by the government of the United States of America. 7) Investment grade collateralized mortgage obligations. 8) Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development or the International Financial Corpararion. 9) Bonds, debentures, notes and other evidence of indebtedness issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States of America or of Canada, or any state or province thereof, which are not in default and are secured to a certain level. 10) Secured and unsecured obligations issued by any solvent institution existing under the laws of the United States of America or of Canada, or any state or province thereof, bearing interest at a fixed rate, with mandatory principal and interest due at a specified time with additional limits. 11) Equipment trust obligations or interests in transportation equipment, wholly or in part within the United States of America, and the right to receive determinated portions or related income. 12) Loans that are secured by pledge or securities eligible for investment. 13) Purchase money mortgages or like securities received upon the sale or exchange of real property acquired. 14) Secured mortgages or mortgage participation, pass-through, conventional pass-through, trust certificate, or other similar securities with restrictions. 15) Land and buildings on such land used or acquired for use as a fund's office for the convenient transaction of its own business with restrictions. 16) Real property and equipment acquired under various circumstances. In addition, large retirement systems have restrictions as to the concentration of investments in corporations and equities and additional stipulations exist related to decreases in a fund's asset value. At December 31, 2010, the Government had two outstanding repurchase agreements. One agreement was to resell $11,933,373 of U.S. Government securities with a fair value of $11,933,373. The agreement yield is zero percent and 53 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (continued) matures June 1, 2028. The other agreement was to resell $1,576,512 of U.S. Government securities with a fair value of $1,576,512. The ageement yield is 5.63% and matures June 1, 2028. As of December 31, 2010 the investments of the Government were: Type of Investment Fair Value 4-12 Months 1— 5 Years 6— 10 Years Greater than 10 Years U.S. Government securities $ 12,136,836 $ 3,317,465 $ 8,282,738 $ 400,295 136,338 Corporate securities 6,054,555 208,097 5,846,458 - - $ 3,525,562 $ 14,129,196 $ 400,295 136,338 Equity securities a1,539,691 Georgia Fund 1 78,907,972 Georgia Bxtended Asset Pool 12,832,570 Total investments $ 151,471,624 The exposure of the GovernmenYs debt securities to credit quality risk is indicated below (as rated by Standard & Poor's): Type of investment Fair Value AAA AA AA- A+ A BBB+ U.S.Govemmentsecurities $ 12,136,836 $ _ $ - $ - $ - � - $ - Corporate securities 6,054,555 634,039 324,042 667,806 1,507,027 2,921,642 - $ 18,191,391 $ 634,039 $ 324,042 $ 667,806 $ 1,507,027 $ 2,921,642 $ Additionally, as of December 31, 2010, the Government has money market funds in the amount of $1,562,871 and $38,175,931 included in cash and temporary inveshnents and restricted cash and investments, respectively, on the Statement of Net Assets. The Government money market funds in the amount of $3,897,004 are included in cash and cash equivalents on the Statement of Fiduciary Net Assets. The balance of these money market funds was categorized as follows as of December 31, 2010: Average Fair Maturity Period Type of Investment Credit Rating Value Less than 1 Year Money market funds AAAm $ 37,752,923 $ 37,752,923 Money marketfunds Notrated 5,882,884 5,882,884 The local government investment pool "Georgia Fund 1", created by O.C.G.A. §36-83-8, is a stable net asset value investment pool. Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company; the regulatory oversight of the pool is assigned to the State of Georgia's Office of Treasury and Fiscal Services. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. As a public fund, Georgia Fund 1 is exempt from any disclosure of custodial credit risk. The Georgia Extended Asset Pool (GEAP) is offered by the State of Georgia to counties, municipalities, public colleges and universities, board of education, special districts, state agencies, and other authorized entities as an alternative to Georgia Fund I. A primary objective of GEAP is the prudent management of public funds on behalf of state and local governments. GEAP was designed for those investors seeking taxable income higher than money market rates and willing to accept price fluctuations. Deposit and investment transactions are subject to a variety of risks. The Government's adopted investment policies seek to promote the safety of principal, provide adequate IiyuidiTy far operation needs, earn market rates of return on investments consistent with liquidity needs and investment quality, and conform with legal requirements. 54 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (continued) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. The Government's investment policy states that the Government will structure its portfolio to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities prior to their maturity. The policy also emphasizes the purchase of shorter term or more liquid investment. The policy does not place formal limits on investment maturities. The Georgia Fund 1 has an interest rate risk of 24 day weighted average maturity. Credit risk is the risk that an issuer or counterparty to an investment will not fulfill its obligations. The Government's investment policy seeks to minimize credit risk through diversification of investments within the choices allowed under state statutes. Investments in all corporate securities are limited to investment grade or higher as rated by a nationally recognized rating agency. All of the Government's investments in U.S. Government securities carry the explicit guarantee of the U.S. government. U.S. Agency securities underlie the repurchase agreements. Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Disclosures are required for any issuer that represents 5% or more of total investments, exclusive of mutual funds, external investment pools and investments issued or guaranteed by the U.S. government. No single issuer represented more than 5% of the total portfolio. The Government does not have a formally adopted policy for managing concentration of credit risk. There are no limits on fixed income securities issued directly by the U.S. government or any agency thereof. Deposits and investments are reconciled between the financial statements and note disclosure as follows: Basic financial statements: Cash and temporary investments $ 231,729,484 Restricted cash and investments 159,836,706 Pension and agency funds 76,093,925 Total $ 467,660,ll5 Notes to the financial statements: � Cash on hand $ 27,485 Deposits 316,161,006 Investments 151,471,624 Total $ 467,660,115 Denartment of Health At June 30, 2010, all of the Department of Health's deposits were either secured by Federal Depository Insurance Corporation (FDIC) ar by collateral held by the agent in the GovernmenYs name. Urban Redevelopment Authoritv At December 31, 2010, all of the Urban Redevelopment Authority's deposits were either secured by Federal Depository Insurance Corporation (FDIC) or by collateral held by the agent in the Government's name. A�u.,usta-Richmond Countv Coliseum Authority At June 30, 2010, the bank balance totaled $2,249,276. Of the total bank balance, $888,430 was insured or collateralized with securities held by the Authority of by its agent in the Authority's name. $1,360,846 was collateralized with securities held by piedging financial institution's trust department or agent in the Authority's name. Au�usta Canal Authority At December 31, 2010, the bank balance totaled $2,712,246. Of the total bank balance, $500,000 was insured through the Federal Depository Insurance Corporation (FDIC). $2,178,052 was collateralized with pooled securities held by the financial institutions' trust departments. These securities are held in the name of the financial institution and not that of the Authority. The remaining $34,193 was uncollateralized. 55 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Downtown Development Authority At December 31, 2010, all of the Downtown Development Authority's deposits were secured by the Federal Depository Insurance Corporation (FDIC). B. Receivables Property taxes are administered on a calendar year basis subject to the following dates: Lien date January 1 Levy date August 9 Collection period September 10 - November 15 Due date November 15 Receivables at December 31, 2010, including the applicable allowances for uncollectible accounts, consist of the following: Special Special Fire Sales Tax Sales TaY Water and General Protection Phase IV Phase V Sewer Receivables: Ta�ces $ 4,182,934 $ 578,399 $ - $ - $ - Accounts 8,697,216 - 11,868 3,582,769 19,171,394 Interest - - - 265,204 6,542 Note - - - - - tntergovernmental - - - - - Gross receivables 12,880,150 578,394 11,868 3,847,973 19,177,936 Less: allowance for uncollectibles (830,668) (81,414) - - (654,544) Net total receivables $ 12,049,482 $ 496,985 $ l 1,868 $ 3,847,973 $ 18,523,392 Nonmajor Nonmajor Bush Governmental Enterprise Adjustments to Statement of Field Funds Funds Total Full Accrual Net Assets Receivables (Cont.): Ta�ces $ - $ 1,650,965 $ - $ 6,412,298 $ - $ 6,412,298 Accounts 415,520 2,502,728 6,255,399 40,636,894 3,637,402 44,274,296 Interest - - 583 272,329 - 272,329 Note - 3,423,378 - 3,423,378 - 3,423,378 Intergovemmental 202,603 - - 202,603 - 202,603 Gross receivables 618,123 7,577,071 6,255,982 50,947,502 3,637,402 54,584,904 Less: allowance for uncollectibles (39,839) (268,389) (452,046) (2,326,900) - (2,326,900) Net total receivables $ 578,284 $ 7,308,682 $ 5,803,936 $ 48,620,602 $ 3,637,402 $ 52,258,004 Adjustments to full accrual relate to internal service funds. Internal service funds predominately serve the governmental funds. Accordingly, the internal service funds receivables balances are included in governmental activities on the accompanying government-wide financial statement. 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 HLJD's Housing Rehabilitation Program. The Housing Rehabilitation Program is designed to fund improvements to homes owned and occupied by persons in low to moderate-income ranges. In 1993, loans were also made to owners of rental units under a deferred loan arrangement as part of the Housing Rehabilitation Program. Loans made for these projects vary as to amounts and interest rates based on the level of income of the owner/occupiers. In the governmental fund financial statements, repayments of these loans are recorded as other revenue in the Housing and Neighborhood Development Fund, a nonmajor special revenue fund. 56 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (continued) Finally, the Fiduciary fund financial statements include $21,274,839 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 flnancial statements and excluded from the foregoing schedule are interest receivable totaling $233,251 �and accounts receivable totaling $1,608,547 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 far the GRFA program have not been included in the financial statements. C. Capital assets A summary of changes in capital assets is as follows: Governmental Activities December 31, December 31, 2009 Additions Disposals 2010 Capital assets, not being depreciated Land $ 21,157,064 $ 175,000 $ - $ 21,332,064 Construction in process 140,128,093 80,410,124 (8,870,121) 211,668,096 Total capital assets not being depreciated 161,285,157 80,585,124 (8,870,121) 233,000,160 Capital assets being depreciated: Land and Site Improvements 11,680,812 1,422,127 � - 13,102,939 Buildings 83,230,434 1,900,392 (39,940) 85,090,886 Building improvements 21,469,004 2,322,489 - 23,791,493 Vehicles 36,293,199 2,502,504 (1,112,109) 37,683,594 Machinery and equipment 16,195,782 751,035 (34,532) 16,912,285 IT—hardware 3,996,550 204,553 - 4,201,103 IT — software 3,266,722 132,923 (11,018) 3,388,627 Furniture and fixtures 1,962,107 - (28,090) 1,934,017 Other capital 20,980 27,295 - 48,275 Infrastructure 103,762,769 87,400 - 103,850,169 Richmond County Public Facilities 12,655,483 - - 12,655,483 Total capital assets being depreciated 294,533,842 9,350,718 (1,225,689) 302,658,871 Less accumulated depreciation for: Land and site improvements (3,696,134) (593,455) - (4,289,589) Buildings (33,016,725) (2,545,783) 39,940 (35,522,568) Building improvements (4,399,553) (846,506) - (5,246,059) Vehicles (28,635,947) (2,684,789) 1,106,979 (30,213,757) Machinery and equipment (8,867,071) (1,160,198) 30,173 (9,997,096) IT — hardware (3,485,254) (302,131) - (3,787,385) IT — software (2,843,305) (222,036) 11,0] 8 (3,054,323) Fumiture and fixtures (1,410,308) (114,383) 2$,040 (1,496,601) � Othercapital (10,432) (7,67� - (18,108) Infrastructure (23,268,841) (3,367,037) - (26,635,878) Richmond County Public Facilities (10,546,236) - - (10,546,236) Total accumulated depreciation (12Q179,806) (11,843,994) 1,216,200 (130,807,600) Capital assets being depreciated, net 174,354,036 (2,493,276) (9,489) 171,851,271 Governmental activities capital assets, net $ 335,639,193 $ 78,091,848 $ (8,879,610) $ 404,851,431 57 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Depreciation expense was charged to functions as follows: Governmental activities General government $ 815,883 Judicial 1,284,098 Public safety 3,421,034 Public works 4,225,364 Health and welfare 95,699 " Culture and Recreation 1,925,118 Housing and development 55,630 Fleet 19,446 Risk 1,722 $ 11,843,994 Balance Balance December 31, December 31, 2009 Additions Disposals 2010 Business-tvpe activities Capital assets, not being depreciated Land $ 18,390,781 $ 422,488 $ - $ 18,813,269 Construction in process 124,583,413 9,863,173 (83,144,187) 51,302,399 Total capital assets not being depreciated 142,974,194 10,285,661 (83,144,187) 70,115,668 Capital assets being depreciated: Site improvements 5,813,471 - - 5,813,471 Building improvements 1,854,648 255,392 - 2,110,040 Landfill Cell IIC 9,399,876 - - 9,399,876 Landfill Cell IIIC 5,616,841 - - 5,616,841 Buildings 82,609,012 646,236 - 83,255,248 Vehicles 16,541,377 2,024,024 (121,768) 18,443,633 Machinery and equipment 26,125,503 1,477,177 (325,556) 27,277,124 Fuiniture and fixtures 1,148,211 73,465 - 1,221,676 Other capital 6,377,033 212,237 - 6,589,270 Water and sewerage systems 592,073,141 119,365,428 - 711,438,569 Contributed water and sewerage systems 10,563,423 - - 10,563,423 Infrastructure 26,777,737 - - 26,777,737 Information tech — hardware 268,113 19,563 - 287,676 Information tech — software 518,855 41,033 - 559,888 Total capital assets being depreciated 785,687,241 124,114,555 (447,324) 909,354,472 Less accumulated depreciation for: Site improvements (3,020;932) (330,666) - (3,351,598) Building improvements (1,289,849) (54,925) - (1,344,774) Landfill Cell IIC (9,399,876) - - (9,399,876) Landfill Cell IIIC (1,154,573) (374,456) - (1,529,029) Buildings � (37,101,658) (2,312,407) - (39,414,065) Vehicles (12,600,702) (1,351,095) 121,768 (13,830,029) Machinery and equipment (13,338,560) (2,365,938) 183,435 (15,521,063) Furniture and fixtures (859,254) (8],069) - (940,323) Other capital (5,598,165) (385,896) - (5,984,061) Water and sewerage systems (144,931,889) (19,376,460) - (164,308,349) Contributed water and sewerage systems (7,672,381) (251,979) - (7,924,360) Infrastructure (14,756,382) (706,570) - (15,462,952) Information tech — hardware (151,445) (43,053) - (194,498) Informarion tech — software (512,106) (2,886) - (514,992) Total accumulated depreciation (252,387,772) (27,637,400) 305,203 (279,719,969) Total capital assets being depreciated, net 533,299,469 96,477,155 (142,121) 629,634,503 Business-type activities capital assets, net $ 676,273,663 $ 106,762,816 $(83,286,308) $ 699,750,171 58 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Depreciation expense was charged to enterprise funds as follows: Water and Sewer $ 22,791,230 Augusta Regional Airport 2,181,240 Waste management and garbage collection 1,950,664 Transit 597,252 Daniel Field Airport 84,504 Municipal golf course 32,510 $ 27,637,400 Construction costs include, among other things, capitalized interest costs. Capitalized net interest costs were approximately $1,800,000 for the year ended December 31, 2010. Department of Health Capital asset activity for the Department of Health for the year ended June 30, 2010 was as follows: June 30, 2009 Additions Disposals June 30, 2010 Capital assets, not being depreciated Land $ 1,947,997 $ - $ $ 1,947,997 Other capital assets: Buildings 9,846,066 - - 9,846,066 Improvements 556,193 - - 556,193 Equipment 708,182 - - 708,182 Vehicles 152,393 - - 152,393 11,262,834 - - 11,262,834 Less accumulated depreciation for: Buildings (2,251,893) (251,255) - (2,503,148) Improvements (410,194) (27,810) - (438,004) Equipment (262,622) (91,864) - (354,486) Vehicles (99,889) (11,839) - (111,728) Total accumulated depreciation (3,024,598) (382,768) - (3,407,366) Other capital assets, net 8,238,236 (382,768) - 7,855,468 Governmental activities capital assets, net $ 10,186,233 $ (382,768) $ - $ 9,803,465 59 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Aueusta Canal Authoritv Capital asset activity for the Augusta Canal Authority for the year ended December 31, 2010 was as follows: December 31, December 31, 2009 Additions Deletions 2010 Capital assets not being depreciated: Land $ 467,000 $ 191,643 $ - $ 658,643 Construction in process 205,014 152,709 (188,540) 169,183 Total capital assets not being depreciated 672,014 344,352 (188,540) 827,826 Capital assets being depreciated: � Buildings - 936,783 - 936,783 Leasehold improvements 3,968,156 - - 3,968,156 Boats 697,071 - - 697,071 Vehicles 24,621 - - 24,621 Machinery and equipment 19,575 - - 19,575 Computer equipment 18,649 - - 18,649 Office equipment 4,601 - - 4,601 Furniture and fixtures 32,676 - - 32,676 Infrastructure 10,197,044 - - 10,197,044 Total capital assets being depreciated 14,962,393 936,783 - 15,899,176 Less accumulated depreciation for: Buildings - (8,985) - (8,985) Leasehold improvements (975,402) (147,082) - (1,122,484) Boats (168,459) (27,883) - (196,342) Vehicles (18,849) (2,676) - (21,525) Machinery and equipment (15,137) (2,346) - (17,483) Computer equipment (16,980) (578) - (17,558) Office equipment (4,508) (94) - (4,602) Furniture and fixtures (24,115) (2,509) - (26,624) Infrastructure (771,048) (250,647) - (1,021,695) Total accumulated depreciation (1,994,498) (442,800) - (2,437,298) Total capital assets being depreciated - net 12,967,895 493,983 - 13,461,878 Governmental activities capital assets, net $ 13,639,909 $ 838,335 $ (188,540) $ 14,289,704 Depreciation expense for the year ended December 31, 2010 was $442,800. Downtown Development Authoritv Capital asset activity for the year ended December 31, 2010 was as follows: December 31, December 31, 2009 Additions Deletions 2010 Capital assets: Port Royal parking deck $ 2,600,000 $ -$ - $ 2,600,000 Riverfront parking deck 3,816,000 - - 3,816,000 Clock 41,393 - - 41,393 Furniture and equipment 7,920 - - 7,920 Total capital assets 6,465,313 - - 6,465,313 Less accumulated depreciation for: Port Royal parking deck (1,300,000) (65,000) - (1,365,000) Riverfront parking deck (1,812,600) (95,400) - (1,908,000) Clock (23,988) (4,139) - (28,127) Furniture and equipment (5,555) (1,131) - (6,686) Total accumulated depreciation (3,142,143) (165,670) - (3,307,813) Capital assets, net $ 3,323,170 $ (165,670) $ - $ 3,157,500 60 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Depreciation expense for the year ended December 31, 2010 was $165,670. The Downtown Development Authority (the "Authority") owns additional properties which were contributed in prior years. The Authority did not obtain valuations of the properties at the date of contribution and records are not available to reflect the correct fair market value of the properties on the date contributed. Therefore, the Autharity's financial statements do not reflect the value of these properties. If the property values were attainable, the net assets of the Authority would increase by the respective property values. The assets that are excluded from the financial statements are as follows: Date Properiy was Transferred Property Description October 18, 1993 18 Eighth Street, Augusta, GA Apri127, 1994 1 Fifth Street, Augusta, GA November 12, 1999 1 James Brown Blvd., Augusta, GA December 20, 1999 925 Reynolds Street, Augusta, GA April 11, 2000 3 Eighth Street, Augusta, GA Coliseum Authoritv Capital asset activity for the Coliseum Authority for the year ended June 30, 2010 was as follows: June 30, June 30, 2009 Additions Deletions 2010 Capital assets not being depreciated: Land $ 1,674,426 $ - $ - $ 1,674,426 Construction in process 50,306 3,858 (54,164) - Total capital assets not being depreciated 1,724,732 3,858 (54,164) 1,674,426 Capital assets being depreciated: Buildings and facilities 25,794,078 210,024 - 26,004,102 Machinery, equipment and other 1,780,351 731,772 - 1,912,123 Total capital assets being depreciated 27,574,429 341,796 - 27,916,225 Less accumulated depreciation for: Buildings and facilities (15,667,898) (950,267) - (16,618,165) Machinery, equipment and other (3,093,743) - - (3,093,743) Total accumulated depreciation (18,761,641) (950,267) - (19,711,908) Total capital assets being depreciated - net $ 10,537,520 $ (604,613) $ (54,164) $ 9,878,743 Depreciation expense for the year ended June 30, 2010 was $950,267. D. Accounts payable and accrued liabilities Payables for the Government at December 31, 2010 were as follows: Governmental Enterprise Adjustments Statement of Funds Funds Total To Full Accrual Net Assets Payables: Accounts payable $ 12,597,358 $ 8,713,676 $ 21,311,034 $ 778,298 $ 22,089,332 Accrued interest - 5,710,020 5,710,020 637,566 6,347,586 Accrued salaries and vacation 1,949,364 1,253,026 3,202.390 (844,903) 2,357,487 Other accrued liabilities 2,218,115 218,759 2,436,874 19,605,741 22,042,615 Total accounts payable and accrued liabilities $ 16,764,837 $ 15,895,481 $ 32,660,318 $ 20,176,702 $ 52,837,020 61 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Adjustments to full-accrual basis include $637,566 related to accrued interest on governmental long-term debt, $19,569,950 to other liabilities related to unfunded health insurance contribution for retirees, $21,939 to other liabilities related to unfunded annual pension cost, $(854,570) relating to the reclassification of accrued vacation from accrued liabilities to liabilities due within one year, and account payable, other accrued liabilities and accrued salaries and vacation of $7�8,298, $13,852 and $9,667, respectively, related to internal service funds. Internal service funds predominately serve the governmental funds. Accordingly, the accounts payable and accrued liability balances for the internal service funds are included in the governmental activities on the accompanying government-wide financial statement. E. Deferred/Unearned Revenues The balance of defened 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 Taxes receivable net of allowance — General Fund $ 1,748,091 $ - Taxes receivable net of allowance — Fire Protection Fund 257,152 - Taxes receivable net of allowance — Nonmajor governmental funds 819,783 - Grant income received in advance of being earned — General Fund - 28,616 Business license income received in advance of being earned — General Fund - 997,696 Housing and Development long-term notes receivable — Nonmajor governmental funds 3,376,256 $ 6,201,282 $ 1,026,312 F. Land611 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 � $16,245,410 as of December 31, 2010, which is based on 93.60% usage (filled) of Cell II C and 5.03% usage (filled) of Cell III, which are operating currently, and 100% usage (filled) of Cells II A and II B. This liabiliry is recorded in the Waste Management Enterprise Fund. It is estimated that an additional $11,523,413 be recognized as closure and postclosure care expenses between the date of the statement of net assets and the date the landfills are expected to be filled to capacity, which is in 2015 and 2165, respectively. The estimated total current cost of the landfill closure and postclosure care, $27,768,823, 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, 2010. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The Government expects to finance the costs for the estimated landfill closure and postclosure care costs as they become due during the coming thirty years through the regular operations of the Government. G. Long-term debt Primary �overnment 1. Governmental activities In a prior year, a portion of the Certificates of Participation (Series 1993) was defeased by the creation of an irrevocable trust fund. Original proceeds remaining from the issue were used to purchase U.S. Government securities that were placed in a trust fund. The investments and fixed earnings from the investment are sufficient to 62 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) fully service the defeased debt until the debt matures. For financial reporting purposes, the debt is considered defeased and, therefore, not included as a liability in the government-wide financial statements Funds. As of December 31, 2010 the amount of defeased debt outstanding but removed from the governmental debt is $475,000. In 2007, the Housing and Neighborhood Development Section 108 loan was defeased by the creation of an irrevocable trust fund. Funds received from repayment of a loan to a local hotel were used to purchase U.S. Government securities that were placed in a trust fund. The investments and fixed earnings from the investment are sufficient to fully service the defeased debt until the debt matures. For financial reporting purposes, the debt is considered defeased and, therefore, not included as a liability in the government-wide financial statements Funds. As of December 31, 2010, the amount of defeased debt outstanding but removed from the governmental debt is $2,500,000. General obligation bonds $44,000,000 2006 sales tax bonds — due in annual installments of $8,125,000 to $9,505,000, plus interest at 4% through December 2011. $ 9,505,000 $30,550,000 2009 sales tax bonds — due in annual installments of $5,000,000 to $11,800,000, plus interest at 3% to 5% through October 2015. 30,550,000 $21,950,000 2010 sales tax bonds — due in periodic installments of $1,250,000 to $5,700,000, plus interest at 2% to 4% through October of 2015. 21,950,000 Revenue bonds $22,120,000 series 2010 revenue bonds — due in annual installments of $710,000 to $1,645,000, plus interest at 2% to 5% through October 2030. 22,120,000 Total bonds payable 84,125,000 Add: Bond issue premiums 5,426,441 $ 89,551,441 Certificates of Participation GMA Leases Fund: $16,888,000 Certificates of Participation — principal due in a lump sum payment on June 1, 2028. Interest only payments are due annually at a rate of 4.75%, through June 1, 2028. Original issue amount $ 16,888,000 � Original issue discount (583,900) � Total $ 16,604,100 General Obligation Bonds Revenue Bonds Year ending December 31 Principal Interest Principal Interest 2011 $ 19,505,000 $ 1,916,044 $ 710,000 $ 1,016,290 2012 - 1,411,000 800,000 926,325 2013 12,500,000 1,411,000 815,000 910,325 2014 12,500,000 1,036,000 850,000 889,950 2015 17,500,000 586,000 865,000 864,450 2016 — 2020 - - 4,745,000 3,888,950 2021 — 2025 - - 5,860,000 2,776,250 2026 — 2030 - - 7,475,000 1,157,500 $ 62,005,000 $ 6,360,044 $ 22,120,000 $ 12,430,040 63 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Continued Certificates of Participation Total Year ending December 31 Principal Interest Principal Interest 2011 $ - $ 802,180 $ 20,215,000 $ 3,734,514 2012 - 802,180 800,000 3,139,505 2013 - 802,180 13,315,000 3,123,505 2014 - 802,180 13,350,000 2,728,130 2015 - 802,180 18,365,000 2,252,630 2016 — 2020 - 4,010,900 4,745,000 7,899,850 2021 —2025 - 4,010,900 5,860,000 6,787,150 2026 — 2030 16,888,000 1,938,602 24,363,000 3,096,102 $ 16,888,000 $ 13,971,302 $ 101,013,000 $ 32,761,386 Certificates of Participation In June 1998, the Government entered into a lease pool agreement with the Georgia Municipal Association (the "Association"). The funding of the lease pool was provided by the issuance of $150,126,000 Certificates of Participation by the Association. The Association passed the net proceeds of $15,765,117 through to the participating municipalities with the GovernmenYs participation totaling $16,888,000, net of original issue discount of $1,122,883. The lease pool agreement with the Association provides that the Government owns their portion of the assets invested by the pool and is responsible for the payment of their portion of the principal and interest of the Certificates of Participation. The principal of $16,888,000 is due in a lump sum payment on June 1, 2028. Interest is payable at a rate of 4.75% each year. The Government draws from the investment to lease eyuipment from the Association. The lease pool agreement requires the Government to make lease payments back into its investment account to fund the principal and interest requirements of the 1998 GMA Certificates of Participation. Equipment in the amount of $1,896,551 was leased during 2010. 2. Business-type activities Revenue bonds Water and Sewer $160,000,000 2004 Water and Sewer Bonds — due in interest only payments of $8,400,000 through October 2032. Principal due in annual installments beginning October 2033 through October 2039. From $19,500,000 to $26,510,000, plus interest of 5,25%. $ 160,000,000 $149,400,000 2002 Water and Sewer Bonds — due in annual installments of $235,000 to $20,610,000 starting October 2002 through October 2032, plus interest varying from 2.50% to 5.75% on $57,840,000 serial bonds, with interest of 5.0% on $91,560,000 term bonds. 101,890,000 $97,080,000 2000 Water and Sewer Bonds — due in annual installments of $355,000 to $11,105,000, plus interest at 4.4% to 5.25% through October 2030. 4,860,000 $177,010,000 2007 Water and Sewer Bonds — due in annual installments of $2,060,000 to $12,260,000 plus interest at 4.0% to 5.0% through October 2030 (this liability is reflected in the Water and Sewer Fund net of deferred refunding amount of $6,543,874). 171,384,999 Total 43 8,134,999 Less: Deferred refunding amounts (6,543,874) Less: Bond issue discounts (738,853) Add: Bond issue premiums 14,548,718 Total revenue bonds — Water and sewer $ 445,400,990 64 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) Augusta Regional Airport at Bush Field Airport Passenger Facility Charge and General Revenue Bonds (Series 2005A) — issued in the original amount of $8,990,OOQ in 2005 with interest of 5.15% payable semi-annually beginning July 1, 2005 and principal payable annually beginning January 2031 ranging from $540,000 to $2,165,000 through 2034 and principal payable of $2,275,000 on January 1, 2035. $ 8,990,000 Airport Passenger Facility Charge and General Revenue Bonds (Series 2005B) — issued in the original amount of $4,415,000 in 2005 with interest of 5.35% payable semi-annually beginning July 1, 2005 and principal payable annually beginning January 1, 2025 ranging from $1,355,000 to $1,505,000 through 2027 and principal payable of $130,000 on maturity at January 1, 2028. 4,415,000 Airport Passenger Facility Charge and General Revenue Bonds (Series 2005C) — issued in the original amount of $6,200,000 in 2005 with interest of 5.45% payable semi-annually beginning July 1, 2005 and principal payable annually beginning January 1, 2028 ranging from $1,455,000 to $1,760,000 through 2030 and principal payable of $1,315,000 on maturity at January 1, 2031. 6,200,000 Total revenue bonds — Bush Field $ 19,605,000 Waste Mana e� ment: $11,475,000 Solid Waste Management Authority of Augusta Revenue Bonds, Series 2004 — due in annual installments of $170,000 to $1,700,000, starting December 1, 2005 through December 1, 2019, plus interest of 3.0% to 4.0% payable semi-annually on June 1 and December 1, beginning December 1, 2004. $ 2,065,000 $9,165,000 Solid Waste Management Authority of Augusta Revenue Bonds, Series 2010 — Due in annual installments of $250,000 to $660,000 starting October 1, 2011 through October 1, 2030, plus interest from 3.0% to 4.5% payable semi-annually on April 1 and October 1, beginning April 1, 2011. 9,165,000 Add: Bond issue premium 344,554 Total revenue bonds — Waste Management $ 11,574,554 Total revenue bonds $ 476,580,544 Notes �a,yable Water and Sewer Fund: $5,143,272 State revolving loan — due in quarterly principal and interest installments of $94,668, bearing interest at 4%, through May 2016. $ 1,861,207 $6,493,318 State revolving loan — due in monthly principal and interest installments of $36,125, bearing interest at 3%, through May 2031 6,493,318 $6,553,217 State revolving loan — principal and interest due in quarterly installments of $119,392, bearing interest at 4%, through July 2019. � 3,511,151 $2,347,350 State revolving loan — due in monthly principal and interest installments of $13,027, including interest at 3%, through October 2031 2,347,350 $19,196,880 Federal Government loan — due in monthly principal and interest installments of $204,665, bearing interest at 511%, through March 2018. 14,852,647 Total $ 29,065,673 65 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) � Business-type Activities Year ending Notes Payable Revenue Bonds Total December 31 Principal Interest Principal Interest Principal Interest 2011 $ 2,555,048 $ 1,049,125 $ 8,070,000 $ 23,566,470 $ 10,625,048 $ 24,615,595 2012 2,839,588 1,062,447 8,090,000 23,317,242 10,929,588 24,379,689 2013 2,972,925 929,111 8,435,000 22,975,851 11,407,925 23,904,962 2014 3,112,695 790,332 8,845,000 22,563,113 11,957,695 23,353,445 2015 3,259,214 642,823 9,285,000 22,128,813 12,544,214 22,771,636 2016-2020 9,053,201 1,402,054 53,495,000 ]03,345,090 62,548,201 104,747,144 2021-2025 2,325,272 623,812 68,335,000 88,943,228 70,660,272 89,567,040 2026-2030 2,701,075 248,010 93,869,999 69,371,269 96,571,074 69,619,279 2031-2035 246,655 2,061 112,175,000 43,56�,580 112,421,655 43,569,641 2036-2040 _ _ 98,370,000 13,241,025 98,370,000 13,241,025 $ 29,065,673 $ 6,749,775 $ 468,969,999 $ 433,019,681 $ 498,035,672 $ 439,769,456 Series 2007 Water and Sewera,ge Revenue Bonds During 2007, the Government issued $177,010,000 in Series 2007 Water and Sewerage Revenue Bonds. A portion of the proceeds from the sale of these bonds was used to refund all of the former Series 1996 and 1997 Water and Sewerage Revenue Bonds in the amount of $56,875,000. The remaining portion of the bond proceeds of $120,135,000 was used to advance refund a portion of the Series 2000 and 2002 Water and Sewerage Revenue Bonds. The current refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of approximately $4,300,000. This difference, reported in the accompanying financial statements as a deduction from bonds payable, is being charged to operations through the year 2030 using the effective-interest method. The refunding decreased the total debt service payments over the next 21 years by approximately $5,600,000 and produced an economic gain of approximately $3,700,000. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of approximately $3,200,000. This difference, reported in the accompanying financial statements as a deduction from bonds payable, is being charged to operations through the year 2030 using the effective-interest method. The refunding decreased the total debt service payments over the next 23 years by approximately $7,200,000 and produced an economic gain of approximately $4,600,000. Proceeds of approximately $126,793,000 from the defeased issues were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust fund with an escrow agency to provide for all future debt service payments on the above mentioned bonds. As of December 31, 2010, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund is $37,010,000 . Series 2004 Water and Seweraee Bonds During 2004, the Government issued $160,000,000 in Series 2004 Water and Sewerage Revenue Bonds for the purpose of financing the costs of making additions, extensions and improvement to the Utilities' water and sewer system. Series 2004 Solid Waste Mana�ement Authoritv of Augusta Revenue Bonds During 2004, the Government issued $11,475,000 in Series 2004 Solid Waste Management Authority of Augusta Revenue Bonds for the purpose of paying all or a portion of the costs of improving and equipping the Government's municipal solid waste landfill. Series 2002 Water and Sewera�e Revenue Bonds During 2002, the Government issued $149,400,000 in Series 2002 Water and Sewerage Revenue Bonds. A portion of the proceeds from the sale of these bonds was used to pay the outstanding balance of the Georgia Environmental Facilities Authority revolving loan in the amount of $8,815,000 with an interest rate of 5.5%. The remaining portion of the bond proceeds of $140,585,000 was issued for the purpose of financing the costs of making additions, extensions and improvements to the Utilities' water and sewer system. A portion of the net proceeds of $8,692,368 (after payment of $153,574 of underwriting fees and other issuance costs) was used to repay the Georgia Environmental Facilities Authority revolving loan. 66 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) The remaining portion of the proceeds of $125,691,320 (after payment of $2,748,066 of underwriting fees and other issuance costs) plus an additional $11,753,672 of funds from a capitalized interest fund is to be used for improvements to the Utilities' water and sewer system. No difference resulted in the current refunding between the reacyuisition 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. Series 2000 Water and Seweraee Revenue Bonds During 2000, the Government issued $97,080,000 in Series 2000 Water and Sewerage Revenue Bonds for the purpose of financing the costs of making additions, extensions and improvements to the Utilities' water and sewer system. Series 1996 Water and Seweraee Revenue Bonds During 1996, the Government issued $66,600,000 in Series 1996 Water and Sewerage Revenue Bonds. A portion of the proceeds from the sale of these bonds was used to advance refund all of the former City of Augusta's Series 1972 and 1991 Water and Sewerage Revenue Bonds and the former Richmond County's Series 1987 and 1991 Water and Sewer Revenue Bonds. Proceeds of $19,400,000 plus an additional $4,900,000 of sinking fund monies from the defeased issues were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above-mentioned bonds. As a result, the bonds are considered to be defeased and the liabilities for those bonds have been removed from the Water and Sewer Fund. The advance refunding during 1996 resulted in a difference between the reacquisition price and the net carrying amount of the old debt of approximately $2,500,000. This difference, reported in the accompanying financial statements as a deduction from bonds payable, is being charged to operations through the year 2028 using the effective- interest method. The refunding increased the total debt service payments over the next 30 years by approximately $8,600,000 and produced an economic gain of approximately $260,000. Series 1997 Water and SeweraQe Revenue Bonds In 1997, the Government issued $5,900,000 in Series 1997 Water and Sewerage Revenue Bonds. A portion of the proceeds from the sale of these bonds was used to advance refund all of the former Richmond County's Series 1986 Water and Sewerage Revenue Bond. Proceeds of approximately $5,600,000 plus an additional $900,000 of sinking fund monies from the defeased issues were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust fund with an escrow agent to provide for all future debt service payments on the above- mentioned bonds. As a result, the bonds are considered defeased and the liability for those bonds have been removed from the Water and Sewer Fund. The advance refunding during 1997 resulted in a difference between the reacquisition price and the net carrying amount of the old debt of approximately $540,000. This difference, reported in the accompanying financial statements as a deduction from bonds payable, is being charged to operations through the year 2021 using the effective-interest method. The refunding will increase total debt service payments over the next 24 years by approximately $2,100,000 and will produce an economic gain of approximately $110,000. As of December 31, 2010, the amount of these defeased debts outstanding but removed from the Water and Sewer Fund is $350,000. Revenues Pled� The Water and Sewer Fund has pledged future water customer revenues, net of specified operating expenses, to repay $438.1 million remaining in water system revenue bonds issued in 2000, 2002, 2004 and 2007. Proceeds from the bonds provided financing for the construction of making additions, extensions and improvements to the Utilities' water and sewer system. The bonds are payable solely from water customer net revenues and are payable through 2043. Annual principal and interest payments on the bonds are expected to require less than 39.9 percent of net revenues. The total principal and interest remaining to be paid on the bonds is $845.2 million. Principal and interest paid for the current year and total customer net revenues were $27.6 million and $69.1 million, respectively. The Augusta Regional Airport has pledged certain future revenues to repay $19,605,000 in Airport Revenue Bonds issued in 2005. Proceeds from the bonds provided financing for the acquisition, construction and installation of a new airline passenger terminal and certain other capital improvements. 67 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (Continued) The Airport Passenger Facility Charge and General Revenue Bonds Series 2005A and 2005B are payable through 2035 primarily from Passenger Facility Charge No. 99-01-C-AGS approved by the Federal Aviation Administration in 2004. Should the proceeds of the Passenger Facility Charge not be sufficient to pay when due interest and principal on Series 2005A and 2005B, the interest and principal shortfall will be paid from Airport Net General Revenues, derived by the Government from the ownership and operation of the Airport, remaining after the payment of expenses of operating, maintaining, and repairing the Airport ("Net General Revenues"), and (2) those passenger facility charge revenues that are allocable to the 2005 Project ("PFC Revenues"). The total principal and interest remaining to be paid on the Series 2005A and 2005B Revenue Bonds was approximately $28,044,000 as of December 31, 2010. There were no principal payments in the current year, while interest paid was approximately $699,000. Total Passenger Facility Charge revenue was $909,816 for the year ended December 31, 2010. The Series 2005C Revenue Bonds are payable through 2031 solely from and secured by a first priority pledge or and lien on Net General Revenues only. Annual principal and interest payments on the bonds are expected to require less than 35 percent of net revenues through 2012. The total principal and interest remaining to be paid on the bonds was approximately $12,780,000 as of December 31, 2010. There were no principal payments in the current year, while interest paid was approximately $338,000. Total net general revenues were $1,713,292 for the year ended December 31, 2010. Financial Covenants Pursuant to the Bond Resolution, the Augusta Regional Airport is subject to meeting certain financial covenants related to the Airport Revenue Bonds. The financial covenants include requirements to (i) provide for 100 percent of the Expenses of Operation and Maintenance and for the accumulation in the Operation and Maintenance Reserve Fund of the Operating Reserve; and (ii) produce Net General Revenues, together with Other Available Moneys, in each fiscal year which will (a) equal at least 125 percent of the Debt Service Requirement on all General Revenue Bonds then outstanding for the sinking fund year ending on the next January 1 and at least 100 percent of the debt service or other amounts payable on all Subardinate Bonds and Other Airport Obligations payable from Net General Revenues then outstanding for the year of computation, (b) enable the Aviation Commission to make all required payments, if any, into the Debt Service Reserve Account, the PFC Debt Service Reserve Account, the Rebate Fund, the Renewal and Replacement Fund and on any Contract or Other Airport Obligation, (c) enable the Aviation Commission to accumulate an amount to be held in the Capital Improvement Fund, which in the judgment of the Aviation Commission is adequate to meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the Airport, necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction over the Airport, and (d) remedy all deficiencies in reyuired payments from the Revenue Fund from prior fiscal years. As of December 31, 2010 the Airport was in compliance with all covenants. Urban Redevelopment Aeency Urban Redevelopment Agency of Augusta (Georgia) Taxable Revenue Bonds (Laney Walker and Bethlehem Project, Series 2010: In June of 2010, the Urban Redevelopment Agency of Augusta issued $8,000,000 Urban Redevelopment Agency Revenue Bonds, Series 2010. The proceeds of these bonds were used to fund projects of the Laney-Walker and Bethlehem Urban Redevelopment Plan. Interest on the bonds is variable from 1.215% to 3.100%. Interest is payable semiannually on April 1 and October 1 of each year and principal payable annually beginning October 1, 2010 ranging from $315,000 to $6,710,000 through October 1, 2015. At December 31, 2010, the amount of principal outstanding was $8,000,000. 68 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (Continued) Revenue Bond Year ending December 31 Principal Interest 2011 $ 315,000 $ 232,328 2012 320,000 228,501 2013 325,000 233,304 2014 330,000 216,541 2015 6,710,000 208,010 2016 — 2020 - - 2021 — 2025 - - 2026 — 2030 - - $ 8,000,000 $ 1,118,684 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. The Government has lease agreements are through the Georgia Municipal Association and are accounted far in an internal service fund. They also have lease agreements other the Georgia Municipal Association agreements that are accounted for within the business-type activities and far governmental activities within the general long-term debt account group. Future minimum lease payments under the leases and the net present value of the minimum lease payments as of December 31, 2010 are as follows: Governmental Business-type Activities Activities 2011 $ 683,666 $ 2,271,590 2012 346,179 1,791,614 2013 40,356 1,451,800 2014 - 1,047,033 2015 - 955,221 2016 — 2020 - 2,051,095 Total minimum lease payment 1,070,201 9,568,353 Less: Amount representing interest - 901,776 Present value of lease payments $ 1,070,201 $ 8,666,577 Interest amounts are not material to the financial statements. 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 2010, rental income totaled approximately $2,398,000 and $101,000 in the Augusta Regional Airport at Bush Field and Daniel Field Airport Funds, respectively. 69 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (Continued) The assets acquired through capital leases as of December 31, 2010 are as follows: Governmental Business-type Activities Activities � Vehicles $ 2,131,711 $ 230,425 Machinery and eyuipment - 13,660,072 2,131,711 13,890,497 Less: accumulated depreciation (265,707) (4,807,236) Carrying value $ 1,866,004 $ 9,083,261 L Changes in long-term liabilities Primary �overnment The following is a summary of long-term debt transactions of the year ended December 31, 2010: Beginning Ending Current Balances Additions Reductions Balances Portion Governmenta] activities; Bonds and notes payable: Revenue bonds payable $ -$ 22,120,000 $ -$ 22 $ 710,000 General obligation bonds payable 49,190,000 21,950,000 9,135,000 62,005,000 19,505,000 Add: Bond issue premiums 2,268,058 3,635,264 476,881 5,426,441 856,1 ll Total bonds and notes payable 51,458,058 47,705,264 9,611,881 89,551,441 21,071,111 Certificates ofparticipation 16,888,000 - - 16,888,000 - Less: original issue discount (628,815) - (44,915) (583,900) (44,915) � Total certificates of participation 16,259,185 - (44,915) 16,304,100 (44,915) Other liabilities: Compensated absences 4,696,888 4,617,061 4,696,888 4,617,061 4,617,061 Capitalleases 1,225,613 917,469 1,072,881 1,070,201 683,666 Claims and judgments 6,107,498 2,440,382 2,518,942 6,028,938 6,028,938 Total other liabilities 12,029,999 7,974,912 8,288,711 11,716,200 l 1,329,665 Governmental activities long-term liabilities $ 79,747,242 $ 55,680,176 $ 17,855,677 $ 117,571,741 $ 32,355,861 Business-type activities: Revenue debt: Revenue bonds payable $ 467,959,999 $ 9,165,000 $ 8,155,000 $ 468,969,999 $ 8,070,000 Less: deferred refunding amounts (6,874,618) - (330,744) (6,543,873) - Less: bond issue discounts (813,257) - (74,403) (738,853) - Add: bond issue premiums 15,325,760 225,734 658,222 14,893,272 - Total revenue debt 475,597,884 9,390,734 8,408,074 476,580,544 8,070,000 Other liabilities: Compensated absences 848,501 854,570 848,501 854,570 854,570 Notes payable 22,420,295 8,840,668 2,195,289 29,065,673 2,555,048 Capitalleases 9,556,177 979,082 1,868,681 8,666,578 2,042,952 Closure/postclosure accrual 15,494,735 750,675 - 16,245,410 - Total other liabilities 48,319,708 11,424,995 4,912,471 54,832,231 5,452,570 Business-type activities long-term liabilities $ 523,917,592 $ 20,815,729 $ 13,320,545 $ 531,412,775 $ 13,522,570 70 AUGUSTA, GEORGIA Notes to Financial Statements - Continued Year Ended December 31, 2010 Note 3- Detailed notes on all funds (Continued) The total interest incurred for the year ended December 31, 2010 was approximately $25,900,000. Of this amount, approximately $1,800,000 was capitalized as a component of the cost of capital assets constructed during the year and approximately $24,100,000 was charged to expense. Typically, the General Fund has been used to liquidate claims and judgments. Compensated absences are liquidated by the fund which recorded the related salary costs, primarily the General Fund, Fire Protection Fund, and the Water and Sewer System Fund. Capital leases are liquidated by the fund which received the benefit of the related asset. Department of Health At June 30, 2010, the Department of Health's long-term liabilities consisted of obligations for compensated absences and an obligation under capital lease. Capital lease The Department has entered into a long-term lease agreement for land and buildings. The lease meets the criteria of a capital lease as defined by Statement of Financial Accounting Standards No. 13 (SFAS 13) Accounting for Leases. The future minimum lease payments under the lease and the net present value of the value of minimum lease payments at June 30, 2010 are as follows: Fiscal Year � Ending Principal Interest Total 2011 $ 40,731 $ 23,985 $ 64,716 2012 43,675 21,041 64,716 2013 46,832 17,884 64,716 2014 50,218 14,498 64,716 2015 53,848 10,868 64,716 2016-2020 125,772 9,815 135,587 Totals $ 361,076 $ 98,091 $ 459,167 Long-term liability activity for the year ended June 30, 2010 was as follows: Beginning Ending Current Balances Additions Reductions Balances Portion Compensated absences $ 566,568 $ 285,918 $ (315,424) $ 537,062 $ 358,832 Obligations under capital lease 399,061 - (37,985) 361,076 40,731 Totals $ 965,629 $ 285,918 $ 353,409 $ 898,138 $ 400,563 Downtown Development Authoritv Long-term debt activity for the year ended December 31, 2010 was as follows: General Long-term Debt Development Authority Revenue Bonds, Series 2003 Debt outstanding at December 31, 2009 $ 615,000 Principal payments (615,000) Debt outstanding at December 31, 2010 $ - Current portion $ - 71 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 3— Detailed notes on all funds (Continued) J. Due from/to other funds The composition of interfund balances as of December 31, 2010 are as follows: Due to other funds Water and Nonmajor Nonmajor Internal Due from other funds Sewer Fund Bush Field Govemmental Enterprise Service Funds Total General Fund $ 1,896,474 $ 2,249,979 $ 1,665,580 $ 971,401 $ 705,875 $ 7,489,309 Total interfund balances $ 1,896,474 $ 2,249,979 $ 1,665,580 $ 971,401 $ 705,875 $ 7,489,309 Amounts were due to other funds primarily for timing of payments from agency funds. Note 4 — Other information A. Risk management The Government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Government is self-insured. The Risk Management Funds (an internal service fund) are utilized by the Government to account for and finance its self-insured risks of loss. The Risk Management Funds are maintained to provide general liability insurance, workers' compensation coverage, and unemployment coverage. The Government is self-insured for workers' compensation coverage through a self- insurance program that is administered under contracts with a third party administrator. Future claims can be paid from designated funds established in 1987 from previously unrestricted-unreserved funds. Balances as of December 31, 2010, include the following: General Fund - undesignated $ 2,156,790 General Fund — Transit asset reserve 2,548,271 Total General Fund 4,705,061 Fire Protection Fund 250,000 Risk Management Fund 1,008,865 Total reserve $ 5,963,926 Related liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. The following represents the changes in the balance of claim liabilities for the Government from January 1, 2009 to December 31, 2010: Unpaid claims, January 1, 2009 $ 3,171,222 Incurred claims (including IBNRs) 2,471,780 Claim payments (1,786,916) Unpaid claims, December 31, 2009 3,856,086 Incurred claims (including IBNRs) 2,440,382 Claim payments (1,833,833) Unpaid claims, December 31, 2010 $ 4,462,635 72 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 4 — Other information (Continued) Transfers to/from other funds Transfers in (out) for the year ended December 31, 2010 are summarized below: Transfers out Special Sales General Nonmajor Tax Nonmajor Transfers in Fund Governmental Phase V Enterprise Total General Fund $ - $ 3,511,100 $ - $ 125,000 $ 3,636,100 Fire Protection Fund - 4,960,000 - - 4,96Q000 Nonmajor Govemmental 1,078,570 - 9,697,900 - ]0,776,470 Nonmajor Enterprise 1,030,200 4,047,301 - - 5,077,501 Internal Service 413,577 24,518 - - 438,095 Total transfers $ 2,522,347 $ 12,542,919 $ 9,697,900 $ 125,000 $ 24,888,166 Transfers are used to move unrestricted revenues in the general fund and nonmajor governmental funds to finance various programs that the Government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies far nonmajor governmental funds, nonmajor enterprise, funds and internal service funds. B. Contingent liabilities Liti aQ tion The Government is party to various legal proceedings which normally occur in governmental operations. The Government follows the practice of recording liabilities resulting from claims and legal actions only when they become probable and measurable. The Government has accrued a liability in the Risk Management Fund (an internal service fund) for all claims for which a loss is probable and measurable. Possible unasserted claims The Government participates in a number of Federal and state assisted grant programs, which are subject to program compliance audits under the Single Audit Act Amendments of 1996. An audit of these programs has been performed for the year ended December 31, 2010, in compliance with the Single Audit Act Amendments of 1996 and OMB Circular A-133. However, the audit is pending final acceptance by the various grantor agencies. The amount, if any, of expenditures, which may be disallowed by the granting agencies, is expected to be immaterial. C. Contracts and commitments Aueusta-Richmond Countv Coliseum Authoritv The Government has committed to provide funds to service the Augusta-Richmond County Coliseum Authority's debt to the extent of the 50% Hotel-Motel Excise Tax and 30% of the Beer Tax collected. D. Richmond County Public Facilities, Inc. The Richmond County Public Facilities, Inc. is a nonprofit organization, tax exempt under Internal Revenue Code Section 501(c)(3)The purpose of this nonprofit arganization 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, Geargia, 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 Govemment in the governmental activities. The Certificates of Participation were retired during 2001. 73 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 4 — Other information (Continued) 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 six single-employer pension plans and one agent multiple-employer pension plan currently in existence. The Government has a single-employer post-retirement plan that provides medical and death benefits to eligible retirees and their spouses. These plans are defined benefit plans. The Government also has a single-employer, defined contribution plan. The following is a summary of funding policies, contribution methods, and benefit provisions for each plan. Sin lg e-emplover pension nlans 1945 Plan The 1945 Plan was available to all former Richmond County employees hired prior to October 1, 1975 that met the Plan's age and length of service requirements. Participants in the Plan who retired at or after age 60 are entitled to a monthly benefit equal to 2% of average earnings multiplied by years of service. Also, the benefit is not to exceed 60% of the average earnings. The Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. The Plan also provides for reduced benefits if the participant elects to retire after attaining age 50 and completing 15 years of service. Employees are required to make contributions to the Plan equal to 5% of earnings. The Government is required to contribute the remaining amounts necessary to fund the Plan. If a participant terminates employment prior to completion of ten years of credited service, the participant receives a lump-sum amount equal to his total contributions to the Plan, with 5% interest computed from January 1, 1997. After completion of at least ten years of credited service, the participant receives a monthly benefit deferred to his normal retirement date, eyual 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. The funding policies for the 1945 Plan provides for actuarially determined periodic contributions at rates that, for individual employees, remain stable over time so that sufficient assets will be available to pay benefits when due. The attained age aggregate cost method has been used to compute the normal cost for the plan. Any unfunded plan costs are spread over the average future working lifetime of the participants as a level percentage of payroll. The significant actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standard measure of the pension obligation. General Pension Plan Policemen's Pension Plan Firemen's Pension Plan and the Citv Emplovees' Pension Plan These Plans covered former City of Augusta employees. Policemen and firemen hired before 1945 are covered under the General Pension Plan. Policemen hired between 1945 and 1949 are covered under the Policemen's Pension Plan. Firemen hired between 1945 and 1949 are covered under the Firemen's Pension Plan. Other former City of Augusta employees hired between 1945 and 1949 are covered by the City Employees' Pension Plan. Pension benefits are being paid under these Plans to retired employees and beneficiaries. These are closed retirement plans (new employees may not participate in the plans). These plans do not issue stand-alone financial statement reports. 74 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) General Retirement Plan Employees hired after March 1, 1949 and before March 1, 1987, whose age did not exceed thirty-five years at the time of their employment and are not participants of the 1977 Plan are covered under the General Retirement Plan. Pension benefits vest after an employee is 45 years of age and has 15 years of full-time employment. An employee may retire at age 60 with 25 years of service and receive annual pension benefits equal to 2% of the employee's average salary earned during the last three years of employment, multiplied by the number of full-time years of employment. The Plan provides death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. All full-time employees hired before July 1, 1980, must contribute 8% of gross earnings to the Plan, with the Government contributing remaining amounts sufficient to provide future pensions. This is a closed retirement plan (new employees may not participate in the Plan). The General Retirement Plan does not issue a stand-alone financial statement report. Employer contributions are determined as part of the January 1, 2011 actuarial valuation using the frozen entry age cost method. The unfunded accrued liability is composed of pieces that are amortized over various periods to comply with Georgia law as a level percentage of payroll. When the actuarial value of assets exceeds 150% of the present value of accrued benefits, the Official Code of Georgia Annotated states that there is no minimum reyuired 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-emplo�pension plan Georgia Municipal Employees Benefit S�tem (GMEBSI Employees hired after March 1, 1987 and before consolidation on December 31, 1996, and who were not participants in any other employer-sponsored retirement plan are covered under the Georgia Municipal Employees Benefit System. The Plan provides pension benefits, deferred allowances, and death and disability benefits. These benefit provisions and all other requirements including amendments are established by Government ordinance. A participant may retire after reaching the age of 65 if the participant is not classified as public safety personnel; participating public safety personnel may retire at age 65 or age 55 with 25 years of total credited service, whichever is earlier. Early retirement may be taken at age 55 with 10 years of credited service. Benefits vest after 10 years of service. Employees who retire at or after age 55 with 10 or more years of service are entitled to pension payments for the remainder of their lives equal to 1'/4% of their final five-year average salary times the number of years of which they were employed as a participant in the GMEBS. The final five-year average salary is the average salary of the employee during the final five years of full-time employment. Pension provisions include deferred allowances, whereby an employee may terminate his or her employment with the Government after accumulating 10 years of service but before reaching the age of 55. If the employee does not withdraw his or her accumulated contributions, the employee is entitled to all pension benefits upon reaching the age of 55. Employees must contribute 3.5% of their gross earnings to the Plan. In addition, the Government must provide annual contributions sufficient to satisfy the actuarially determined contribution requirements as amended by GMEBS. The GMEBS Retirement Fund issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Georgia Municipal Employees Benefit System, 201 Pryor Street, SW, Atlanta, Georgia 30303. The employer contributions are determined as part of a July 1, 2010 actuarial valuation using the projected unit credit actuarial cost method. The actuarial value of plan assets are computed with a smoothing method that uses a roll forward of prior year's actuarial value with contributions, disbarsements, and expended return of investments, plus 10% of investment gains (losses) during 10 prior years. Normal cost is funded on a current basis. The Plan is subject to the minimum funding standards of the Public Retirement Systems Standards Law. Since the Government's policy is to contribute the pension expense in each year, the funding strategy should provide sufficient resources to pay employee 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. The plan's unfunded actuarial accrued liability is being amortized over 30 years as a level dollar. 75 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) Membership of the defined benefit plans are as follows: Terminated plan members Active Retirees and beneficiaries entitled to but not yet Plan receiving benefits receiving benefits members 1945 Plan 30 0 4 General Pension Plan 0 0 0 Policemen's Pension Plan 1 0 0 Firemen's Pension Plan 5 0 0 City Employees' Pension Plan 7 0 0 General Retirement Plan (City 1949) 158 7 122 GMEBS 263 130 2,031 Total 464 137 2,157 The costs of administering the plans are financed through investment earnings. Defined contribution nlan Aueusta-Richmond County Board of Commissioners Retirement Savin s� Plan (the "1998 Plan") All full-time employees with more than one month of service are eligible to participate in the Retirement Savings Plan. The Plan is a defined contribution plan under Section 401(a) of the Internal Revenue Code, and is administered by Nationwide Life Insurance, 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. Contribution requirements may be amended by a majority vote of the full-body of the governing board, the Augusta-Richmond County Commission. At December 31, 2010, there were approximately 258 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, 2010, the employees' contributions were $383,823, and the Government's contributions were $191,911. This is a closed retirement plan (new employees may not participate in the Plan). Richmond Countv Department of Health — General Retirement Plan All current full-time employees of the Department of Health participate in the Employees' Retirement System of Georgia (ERS), which is a cost-sharing multi-employer, defined benefit, public employee retirement system. The Department contributes at a specified percentage of active members payroll determined by actuarial valuation. The contribution requirements of plan members and the Department are established and may be amended by the ERS Board of Trustees. Retirement contributions made on behalf of eligible participants for the year ended June 30, 2010 were $580,599. Members become fully vested after ten years of service. B. Summary of significant accounting policies Basis of Accountine Pension trust funds are accounted for on the accrual basis. The accrual basis of accounting recognizes revenues when earned. Expenses are recorded when incurred. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and the Government has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. For information relating to reported investment values, see Note 1 G. Method used to Value Investments Investments are reported at fair value. Money market mutual funds are reported at cost, which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price or exchange rate. Net appreciation (depreciation) in fair value of investments includes the difference between cost and fair value of investments held as well as the net realized gains ar losses from securities sold. Interest and dividend income is recognized on the accrual basis when earned. Purchases and sales of investments are recorded on a trade date basis. 76 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 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 Employer contributions have been determined as follows: General Retirement 1945 Plan Pension Plan (City 1949) Valuation date 12/31/2010 12/31/2010 Actuarial cost method Attained age aggregate Aggregate cost method Amortization method Level percentage of payroll Level percentage of payroll (closed) (closed) Amortization period Average future working lifetime Various periods to comply with state law Actuarial asset valuation method Market value plus receivables Market Value plus receivables Actuarial assumptions: Investment rate of return 8.0% 8.0% Projected salary increases 5.0% 5.5% Post retirement benefit increases 5.0% 4.0% Inflation 5.0% 4.0% General Policemen's Pension Plan Pension Plan Valuation date 12/31/2010 12/3]/2010 � Actuarial cost method Actuarial present value of total Actuarial present value of total Projected benefits Projected benefits Amortization method N/A N/A Amortization period N/A N/A Actuarial asset valuation method N/A N/A Actuarial assumptions: Investment rate of return 8.0% 8.0% Projected salary increases N/A N/A Post retirement benefit increases N/A N/A Inflation N/A N/A 77 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) Firemen's City Employees' Pension Plan Pension Plan Valuation date 12/31/2010 12/31/2010 Actuarial cost method Actuarial present value of total Actuarial present value of total Projected benefits Projected benefits Amortization method N/A N/A Amortization period N/A N/A Actuarial asset valuation method N/A N/A Actuarial assumptions: Investment rate of return 8.0% 8.0% Projected salary increases N/A N/A Post retirement benefit increases N/A N/A Inflation N/A N/A GMEBS Valuation date 07/O1/10 Actuarial cost method Projected unit credit Amortization method Closed level dollar for remaining unfunded liability Amortization period Varies for the bases Actuarial asset valuation method Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10% of the amount that the value exceeds or is less than the market value at end of year. The actuarial value is adjusted, if necessary, to be within 44% of market value. Actuarial assumptions: Investment rate of return 7.75% Projected salary increases 3.50% Post retirement benefit increases None Inflation None The aggregate actuarial cost method is used to determine the annual required contribution of the employer for the General Retirement Pension Plan (City 1949). Because the method does not identify or separately amortize unfunded actuarial liabilities, information about the Plan's funded status and funding progress has been prepared using the entry age actuarial cost method for that purpose, and the information presented is intended to serve as a surrogate for the funded status and funding progress of the Plan. 78 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) Three-year trend information is as follows: Fiscal Annual Actual Percentage of Net Pension Year Pension County APC (Asset) Beginning Cost Contribution Contributed Obligation 2008 1945 Plan O1/O1/2008 $ 143,673 $ 191,465 133% $ (41,874) General Pension Plan O1/0 U2008 6,610 6,610 100% - Policemen's Pension Plan OU01/2008 48,960 48,960 100% - Firemen's Pension Plan O1/O1/2008 131,558 131,558 100% - City Employees' Pension Plan O1/O1/2008 276,009 276,009 100% - General Retirement Plan (City 1949) 01/O1/2008 - - 0% - GMEBS O1/O1/2008 2,527,165 1,912,558 76% 614,607 Fiscal Annual Actual Percentage of Net Pension Year Pension County APC (Asset) Beginning Cost Contribution Contributed Obligation 2009 1945 Plan O1/O1/2009 $ 340,951 $ 302,173 89% $ (ll3,621) General Pension Plan O1/O1/2009 - - 0% - Policemen's Pension Plan O1/Ol/2009 39,026 39,026 100% - Firemen's Pension Plan O1/O1/2009 131,558 131,558 100% - City Employees' Pension Plan O1/O1/2009 253,852 253,852 100% - General Retirement Plan (City 1949) Ol/O1/2009 1,403,253 1,306,374 100% - GMEBS O1/Ol/2009 1,673,213 1,673,213 100% 614,607 Fiscal Annual Actual Percentage of Net Pension Year Pension County APC (Asset) Beginning Cost Contribution Contributed Obligation 2010 1945 Plan O1/O1/2010 $ 340,781 $ 340,451 100% $ (74,843) General Pension Plan Ol/O1/2010 - - 0% - Policemen's Pension Plan O1/O1/2010 28,238 28,238 100% - Firemen's Pension Plan O1/O1/2010 134,737 134,737 100% - City Employees' Pension Plan O1/Ol/2010 223,322 223,322 100% - General Retirement Plan (City 1949) O1/O1/2010 1,402,826 1,403,253 100% 96,879 GMEBS O1/O1/2010 1,855,271 2,469,878 100% - 79 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) The net pension obligation (asset) has been calculated as follows: General 1945 Plan Pension Plan Annual required contribution $ 340,451 $ - Interest on net pension obligation (5,987) - Adjustment on annual required contribution 6,317 - Annual pension cost 340,781 - Contributions made (340,451) - Increase (decrease) in net obligation $ 330 $ -� Net pension obligation (asset) (beginning of year) $ (74,843) $ - Net OPEB obligation (asset) (end of year) $ (74,513) $ - Policeman's Fireman's Pension Plan Pension Plan Annual required contribution $ 28,238 $ 134,737 Interest on net pension obligation - - Adjustment on annual reyuired contribution - - Annual pension cost 28,238 134,737 Contributions made (28,238) (134,737) Increase (decrease) in net obligation $ - $ - Net pension obligation (asset) (beginning of year) $ - $ - Net OPEB obligation (asset) (end of year) $ - $ - General City Retirement Employees' Pension Plan Pension Plan (City 1949) GNIEBS Annual required contribution $ 232,322 $ 1,403,253 $ 1,855,271 Interest on net pension obligation - 7,750 - Adjustment on annual required contribution - (8,177) - Annual pension cost 232,322 1,402,826 1,855,271 Contributions made (232,322) (1,403,253) (2,469,878) Increase (decrease) in net obligation $ - $ (427) $ (614,607) Net pension obligation (asset) (beginning of year) $ -$ 96,879 $ 614,607 Net OPEB obligation (asset) (end of year) $ -$ 96,452 $ - 80 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) E. Funded status The funded status of each plan as of the most recent valuation date is as follows: Actuarial (Funded) (FAAL) Accrued Unfunded UAAL as Actuarial Actuarial Liability AAL A% of Valuation Value of AAL (FAAL) Funded Covered Covered Date Assets Enhy Age UAAL Ratio Payroll Payroll 1945 Plan 12/31/10 $ 7,860,568 $ 11,366,929 $ 3,506,361 69 %$ 125,359 2,797 % Policemen's Pension Plan 12/31/10 - 101,504 101,504 - - - Firemen's Pension Plan 12/31/10 - 532,748 532,748 - - City Emplovees' Pension Plan 12/31/10 - 953,250 953,250 - - - General Retirement Plan (Ci ,t�� 12/31/10 68,221,054 79,243,698 11,022,644 86 4,707,547 234 GMEBS 07/O1/10 60,004,921 82,560,251 22,555,330 73 73,248,453 31 The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability. F. Post-employment retirement benefits Plan description. Augusta-Richmond County sponsors a single-employer post-retirement plan provides medical and death benefits to eligible retirees and their spouses. Annual OPEB cost and net OPEB obligation. The Government's annual other post-retirement benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the GovernmenYs annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Government's net OPEB obligation: Components of net OPEB obligation Annual required contribution $ 7,735,722 Interest on net OPEB obligation 789,286 Adjustment on annual required contribution (987,410) Annual OPEB cost (expense) 7,537,598 Contributions made or accrued (2,318,304) Increase in net obligation $ 5,219,294 Net OPEB obligation (beginning of year) $ 14,350,656 Net OPEB obligation (end of year) $ 19,569,950 81 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 5 — Pension plans (Continued) The GovernmenYs annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010 is as follows: Fiscal Year Ended Annual OPEB Cost Percentage of OPEB Cost Net OPEB Obligation , 12/31/2010 $ 7,537,598 30.8% $ 19,569,950 12/31/2009 6,958,580 16.4% 14,350,656 12/31/2008 7,064,158 16.2% 8,534,019 Funding policy. The Government intends to continue to fund the OPEB on an actual pay-as-you-go expense. OPEB is fully funded by the Government and plan members are not required to contribute. Contribution requirements may be amended by a majority vote of the full-body of the governing board, the Augusta-Richmond County Commission. Funded status and funding progress. As of January 1, 2010, the most recent actuarial valuation date, the plan was 0% funded. The actuarial accrued liability for benefits was $91,479,290 and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $ 91,479,290. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Actuarial methods and assumptions. Projections of benefits for financial reporting purposes are based on substantive plan (the plan as understood by the employer and the plan members) and includes the type of benefits provided at the time of each valuation and the historical pattern of sharing the benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2010 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions include a 5.5% investment rate of return (net of administrative expenses), based on the employer's own investments and used to discount liabilities at the valuation date, and an annual healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate rate of 5% after three years. The UAAL is being amortized as a leve! percentage of payroll on an open basis. The remaining amortization period at January 1, 2010 was 27 years. Note 6— Joint venture and related organization Joint venture Under Georgia law, the Government, in conjunction with the sixteen counties and fifty-four cities in east Georgia known as the Central Savannah River Area (CSRA), is a member of the CSRA Regional Development Center (CSRA RDC). The CSRA RDC is a public organization that assists local governments in planning for common needs, cooperating far mutual benefit, and coordinating for sound regional development. The operations are mainly financed by membership dues and financial assistance provided by the State of Georgia. Membership in the CSRA RDC is required by the Official Code of Georgia Annotated (O.C.G.A.) §58-8-34 with annual dues based on a per capita amount. During the year ended December 31, 2010, the Government paid $193,270 in such dues, which was based on a per capita amount of $1.00. 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. §58-8-39.1 provides that the Government is liable far any debts or obligations of the CSRA RDC. The Comprehensive Annual Financial Report of the CSRA RDC may be obtained from: CSRA Regional Development Center 3023 River Watch Pkwy Augusta, Georgia 30907 82 AUGUSTA, GEORGIA Notes to Financial Statements — Continued Year Ended December 31, 2010 Note 6— Joint venture and related organization (Continued) Related oreanization The Government officials are responsible for appointing the members of the boards of another organization, but the Government's accountability for these organizations do not extend beyond making the appointments. The Government commission appoints the voting majority of the members of the Augusta-Richmond County Coliseum Authority and the Housing Authority of the City of Augusta, Georgia. Note 7— HoteUmotel lodging tax The Government has levied a 6% lodging tax. A summary of the transactions for the year ended December 31, 2010 follows: Lodging tax receipts $ 3,969,575 Disbursements to the Augusta-Richmond County Coliseum Authority and the Augusta (3,706,039) Convention and Visitors Bureau -for promotion of tourism Balance of lodging tax funds on hand at end of year $ 263,536 The Government has received audit reports from the Augusta-Richmond County Coliseum Authority and the Augusta Convention and Visitors Bureau, covering the lodging tax monies. The subcontractor's expenditures were for promotion of tourism as required by O.C.G.A. §48-13-51. Note 8 — Significant contingencies Federal and State assisted programs The Government has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies. Arbitrage The Government's bond issues are subject to federal arbitrage regulations, and the Government has elected to review its potential arbitrage liability annually on the bond issue dates. The arbitrage rebate payments are payable on the fifth anniversary of the bond issue date and every fifth year subsequent to the date. As of December 31, 2010, the estimate arbitrage payable of $1,566,303 has been included in claims and judgments in the accompanying financial statements. Note 9— Expenditure of federal grant funds General deficiencies applicable to all federal grants have been identified, and specific deficiencies have been identified for grants from the U. S. Department of Housing and Urban Development, U. S. Department of Justice, and the U. S. Department of Transportation, all of which are more fully described in the City's Single Audit report for the year ended December 31, 2010. These deficiencies may result in federal claims for refunds for these grants. The City has not estimated or recorded a liability for any potential claim. Note 10 — New accounting pronouncements GASB issued GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which, among other things, enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2010. The Government's management is currently evaluating the impact GASB No. 54 will have on the Government's financial statements. 83 AUGUSTA, GEORGIA Defined Benefit Pension Trusts — Required Supplementary Information (Unaudited) December 31, 2010 Schedules of funding progress Actuarial (Funded) (FAAL) Accrued Unfunded UAAL as Actuarial Actuazial Liability AAL A% of Valuation Value of AAL (FAAL) Funded Covered Covered Date Assets Entry Age UAAL Ratio Payroll Payroll 1945 Plan 12/31/2008 $ 9,839,493 $ 11,083,498 $ 1,244,005 89 %$ 252,660 492 % 12/31/2009 8,127,448 11,403,336 3,275,888 7] 244,941 1,337 12/31/2010 7,860,568 11,366,929 3,506,361 69 125,359 2,797 Policemen's Pension Plan 12/31/08 $ - $ 188,987 $ 188,987 - % $ - - % 12/31/09 - 145,368 145,368 - - - 12l31/10 - 101,504 101,504 - - - Firemen's Pension Plan 12/31/08 $ - $ 558,594 $ 558,594 - % $ - - % 12/31/09 - 539,044 539,044 - - - 12/31/10 - 532,748 532,748 - - - City Emplovees' Pension Plan 12/31/08 $ - $ 1,265,155 $ 1,265,155 - % $ - - % 12/31/09 - 1,122,867 1,122,867 - - - 12/31/10 - 953,250 953,250 - - - General Retirement Plan (Citv 1949) 12/31/2008 $ 74,862,875 $ 70,398,531 $ (4,464,344) 106 % $ 6,416,602 (70) % 12/31/2009 65,807,023 74,884,813 9,077,790 88 5,775,104 157 12/31/2010 68,221,054 79,243,698 11,022,644 86 4,707,547 234 GMEBS 11/O1/08 $ 48,945,634 $ 69,899,757 $ 2Q954,123 70 %$ 60,618,181 35 % 07/O1/09 52,223,077 66,712,927 14,489,850 78 72,194,233 20 07/O1/10 60,004,921 82,560,251 22,555,330 73 73,248,453 31 85 AUGUSTA, GEORGIA Combining Balance Sheet Nonmajor Governmental Funds December 31, 2010 Special Capital Debt Revenue Project Service Funds Funds Funds Assets Cash and temparary investments $ 14,330,725 $ 38,208,871 $ 15,206 Receivables (net of allowance far doubtful accounts) Taxes 1,478,972 - - Accounts 2,467,447 - - Note 3,362,263 - - Prepaid items 685 - - Restricted assets Reserve account - 62,572,089 1,225,207 Perpetual care - - - Total assets $ 21,640,092 $ 100,780,960 $ 1,240,413 Liabilities and fund balances Liabilities: Accounts payable $ 1,508,285 $ 503,732 $ - Due to other funds 638,249 - 1,027,331 Accrued salaries and vacation 100,687 - - Other accrued liabilities 17,508 - - Deferred revenue 4,196,039 - - Totalliabilities 6,460,768 503,732 1,027,331 Fund balances : Reserved for: Encumbrances 913,125 9,621,543 - Inventory/prepaid items 685 - - Bond Projects - 66,843,594 - Unreserved - undesignated 14,265,514 23,812,091 213,082 Total fund balances 15,179,324 100,277,228 213,082 Total liabilities and fund balances $ 21,640,092 $ 100,780,960 $ 1,240,413 90 Permanent Fund Total Nonmajor Governmental Perpetual Care - II Funds $ 181,328 $ 52,736,130 - 1,478,972 - 2,467,447 - 3,362,263 - 685 - 63,797,296 338,625 338,625 $ 519,953 $ 124,181,418 $ - $ 2,012,017 - 1,665,580 - 100,687 - 17,508 - 4,196,039 - 7,991,831 - 10,534,668 - 685 - 66,843,594 519,953 38,810,640 519,953 116,189,587 $ 519,953 $ 124,181,418 91 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended December 31, 2010 Special Capital Debt Revenue Project Service Funds Funds Funds Revenues Taxes - property $ 11,077,927 $ - $ - Taxes - other than property 13,291,863 - - Licenses and permits 2,999,479 - - Use of money and property 180,515 373,079 50,748 Charges for current services 7,206,807 - - Fines and forfeitures 562,883 - - Intergovernmental 5,512,521 275,447 - Contributions and donations 2,144,780 - - Other 826,311 - - Total revenues 43,803,086 648,526 50,748 Expenditures Current: General government 3,413,362 542,617 - Judicial 331,702 - - Public safety 3,827,503 213,550 - Public works 4,861,006 1,430,118 - Culture and recreation 3,736,927 62,897 - Housing and development 10,623,060 - - Capital outlay 2,176,628 3,511,578 - Debt service 1,088,310 - 11,260,008 Intergovernmental - 250,000 - Total expenditures 30,058,498 6,010,760 11,260,008 Excess (deficiency) of revenues over (under) expenditures 13,744,588 (5,362,234) (11,209,260) Other financing sources (uses) Transfers in 1,078,570 - 9,697,900 Transfers (out) (12,542,919) - - Transfers in (out) between nonmajor funds (1,796,027) 48,689,377 (46,893,350) Bonds proceeds - - 44,070,000 Premium on bonds sold - - 3,635,264 Total other financing sources (uses) � (13,260,376) 48,689,377 10,509,814 Net change in fund balances 484,212 43,327,143 (699,446) Fund balance - beginning 14,695,112 56,950,085 912,528 Fund balance - ending $ 15,179,324 $ 100,277,228 $ 213,082 92 Permanent Fund Total Nonmajor Governmental P erpetual Care - I Funds $ - $ 11,077,927 - 13,291,863 - 2,999,479 21,062 625,404 400 7,207,207 - 562,883 - 5,787,968 - 2,144,780 - 826,311 21,462 44,523,822 - 3,955,979 - 331,702 - 4,041,053 - 6,291,124 - 3,799,824 - 10,623,060 - 5,688,206 - 12,348,318 - 250,000 - 47,329,266 21,462 (2,805,444) - 10,776,470 - (12,542,919) - 44,070,000 - 3,635,264 - 45,938,815 21,462 43,133,371 498,491 73,056,216 $ 519,953 $ 116,189,587 93 AUGUSTA, GEORGIA Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2010 Emergency Urban Services Telephone Capital Law District System Outlay Enforcement Assets Cash and temporazy investments $ 3,193,989 $ 715,163 $ 3,151,967 $ 271,763 Receivables (net of allowance for doubtful accounts) Taxes 1,122,171 - 356,801 - Accounts 842,999 493,283 99,492 5,926 Note - - - - Prepaid items - - - - Total assets $ 5,159,159 $ 1,208,446 $ 3,608,260 $ 277,689 Liabilities and fund balances (deficits) Liabilities: Accountspayable $ 119,735 $ 51,159 $ 408,465 $ - Due to other funds - - - - Accrued salaries and vacation 4,491 50,841 - - Other accrued liabilities 17,381 - - - Deferred revenue 452,827 - 172,538 - Totalliabilities 594,434 102,000 581,003 - Fund balances (deficits): Reserved for: Encumbrances - 2,013 876,942 8,325 Inventory/prepaid items - - - - Unreserved - undesignated 4,564,725 1,104,433 2,150,315 269,364 Total fund balances (deficits) 4,564,725 1,106,446 3,027,257 277,689 Total liabilities and fund balances (deficits) $ 5,159,159 $ 1,208,446 $ 3,608,260 $ 277,689 94 Hotel/Motel Tax and Housing and Urban Federal State Oceupational Special Promotion/ Neighborhood Development Drug Drug Tax Assessment Tourism Development Action Grant Fund Fund $ - $ 1,044,661 $ 262,535 $ 182,589 $ 42,372 $ 717,480 $ 605,624 - 256,193 - 643,982 15,855 - - - - - 3,256,502 ]05,761 - - - - - 685 - - - $ - $ 1,300,854 $ 262,535 $ 4,083,758 $ 163,988 $ 717,480 $ 605,624 $ - $ 298,690 $ 262,536 $ 229,749 $ 142 $ 11,906 $ 639 - - - 576,716 31,749 - - - 3,836 - 22,378 - - - - 194,418 - 3,376,256 - - - - 496,944 262,536 4,205,099 31,891 11,906 639 - 1,296 - 15,435 200 7,350 1,495 - - - 685 - - - - 802,614 (1) (137,461) 131,897 698,224 603,490 - 803,910 (1) (121,341) 132,097 705,574 604,985 $ - $ 1,300,854 $ 262,535 $ 4,083,758 $ 163,988 $ 717,480 $ 605,624 95 AUGUSTA, GEORGIA Combining Balance Sheet Nonmajor Special Revenue Funds - Continued December 31, 2010 5% Victim's Supplemental Law Crime Juvenille Building Library Assistance Services Inspection Assets Cash and temporary investments $ - $ 93,421 $ 49,034 $ 714,736 Receivables (net of allowance for doubtful accounts) Taxes - - - - Accounts 1,547 30,963 1,190 - Note - - - - Prepaid items - - - - Total assets $ 1,547 $ 124,384 $ 50,224 $ 714,736 Liabilities and fund balances (deficits) Liabilities: Accounts payable $ - $ 2,481 $ - $ 11,601 Due to other funds 1,547 - - - Accrued salaries and vacation - 5,458 - 13,683 Other accrued liabilities - 127 - - Deferred revenue - - - - Totalliabilities 1,547 8,066 - 25,284 Fund balances (deficits): Reserved for: Encumbrances - - - 69 Inventory/prepaid items - - - - Unreserved - undesignated - 116,318 50,224 689,383 Total fund balances (deficits) - ll6,318 50,224 689,452 Total liabilities and fund balances (deficits) $ 1,547 $ 124,384 $ ' S0,224 $ 714,736 96 Total Nonmajor NPDES Urban Special Wireless Perpetual Downtown Canine Permit Transportation Drug Redevelopment Revenue Phase Care - I Development Forfeitures Fees and Tourism Court Projects Funds $ 1,901,296 $ 358,646 $ - $ 21,694 $ 124,900 $ 682,263 $ 105,501 $ 91,091 $ 14,330,725 - - - - - - - - 1,478,972 - 3,327 28,449 - - - 44,241 - 2,467,447 - - - - - - - - 3,362,263 - - - - - - - - 685 $ 1,901,296 $ 361,973 $ 28,449 $ 21,694 $ 124,900 $ 682,263 $ 149,742 $ 91,091 $ 21,640,092 $ 8,503 $ 4,065 $ - $ - $ - $ - $ - $ 98,614 $ 1,508,285 - - 28,237 - - - - - 638,249 - - - - - - - - 100,687 - - - - - - - - 17,508 - - - - _ - - - 4,196,039 8,503 4,065 28,237 - - - - 98,614 6,460,768 - - - - - - - - 913,125 - - - - - - - - 685 1,892,793 357,908 212 21,694 124,900 682,263 149,742 (7,523) 14,265,514 1,892,793 357,908 212 21,694 124,900 682,263 149,742 (7,523) 15,179,324 $ 1,901,296 $ 361,973 $ 28,449 $ 21,694 $ 124,900 $ 682,263 $ 149,742 $ 91,09] $ 21,640,092 97 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended December 31, 2010 Emergency Urban Services Telephone Capital Law District System Outlay Enforcement Revenues Taxes - property $ 7,478,635 $ - $ 3,599,292 $ - Taxes- otherthan property 8,663,069 - - - Licenses and permits - - - - Use of money and propeRy 32,275 5,724 51,180 1,835 Charges for current services 339,345 3,134,629 - 79,332 Fines and forfeitures - - - - Intergovernmental - - - - Contributions and donations - - - - Other - - - - Totalrevenues I6,513,324 3,140,353 3,650,472 81,167 Expenditures CurrenY. � General govemment 1,502,226 3,323 1,042,971 - Judicial - - 2,621 - Public safety - 3,157,174 2,150 37,070 Publicworks 447,350 - 204,135 - Culture and recreation 6,674 - 156,470 - Housing and development 320,009 - 48,981 - Capital outlay - - 1,78'7,226 - Debt service - - 1,079,354 - � Total expenditures 2,276,259 3,160,497 4,323,908 37,070 Excess (de6ciency) of revenues over (under) expenditures 14,237,065 (20,144) (673,436) 44,097 Other financing sources (uses) Transfers in - 340,000 - - Transfers (out) (9,977,051) - - - Transfers in (out) between nonmajor funds (2,834,836) - (1,250,000) - Total other financing sources (uses) (12,811,887) 340,000 (1,250,000) - Net change in fund balances (de6cits) 1,425,178 319,856 (1,923,436) 44,097 Fund balance (deficits) - beginning 3,139,547 786,590 4,950,693 233,592 Fund balance (deficits) - ending $ 4,564,725 $ 1,10 $ 3,0 27,257 $ 2 98 Hotel/Motel Tax and Housing and Urban Federal State Occupational Special Promotion/ Neighborhood Development Drug Drug Tax Assessment Tourism Development Action Grant Fund Fund $ - $ - $ - $ - $ - $ - $ - - - 4,094,575 - - - - 2,186,476 - - - - - - 1,262 - - - 3,250 5,027 35,290 - 2,059,052 - - - - - - - - - - 33,311 112,560 - - - 5,512,521 - - - 9,642 - - 811,348 5,321 - - 2,197,380 2,059,052 4,094,575 6,323,869 8,571 38,338 147,850 6,030 15,749 - 152,250 4,070 - - - - - - - 41,557 32,959 - 4,207,771 - - - - - - - 3,548,549 - - - - - - - 6,703,710 23,116 - - - 95,366 - - - - 288,690 6,030 4,318,886 3,548,549 6,855,960 27,186 41,557 321,649 2,191,350 (2,259,834) 546,026 (532,091) (18,615) (3,219) (173,799) - 738,570 - - - - - �2,i91,sso� - - (i2,369� - - - - 2,037,270 (546,027) 544,460 - - - (2,191,350) 2,775,840 (546,027) 532,091 - - - - 516,006 (I) - (18,615) (3,219) (173,799) - 287,904 - (121,341) 150,712 708,793 778,784 $ - $ 803,910 $ (1) $ (121,341) $ 132,097 $ 705,5�4 $ 604,985 99 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Continued Nonmajor Special Revenue Funds Year Ended December 31, 2010 5% Victim's Supplemental Law Crime Juvenille Building Wireless Library Assistance Services Inspection Phase Revenues Taxes - property $ - $ - $ - $ - $ - Taxes - other than property - - - - - Licenses and permits - - - 798,040 - Use of money and property - 681 319 5,689 12,549 Charges for current services - - 14,425 - 527,362 Fines and forfeitures - 266,741 - - - Intergovernmental - - - - - Contributions and donations - - - - - Other - - - - - Total revenues - 267,422 14,744 803,729 539,911 Expenditures Current: General government - 6,750 1,040 32,680 - Judicial - 325,581 3,500 - - Public safety - - - - 556,593 Public works - - - - - Culture and recreation - - - - - Housing and development - - - 947,727 - Capital outlay - - - - - Debt service - - - - - Total expenditures - 332,331 4,540 980,407 556,593 Excess (deficiency) of revenues over (under) expenditures - (64,909) 10,204 (176,678) (16,682) Other financing sources (uses) Transfers in - - - - - Transfers (out) - - - (12,149) - Transfers in (out) between nonmajor funds - - - - - Total other financing sources (uses) - - - (12,149) - Net change in fund balances (deficits) - (64,909) 10,204 (188,827) (16,682) Fund balance (deficits) - beginning - 181,227 40,020 878,279 1,909,475 Fund balance (deficits) - ending $ - $ 116,318 $ 50,224 $ 689 ,452 $ 1,89 2,793 100 Urban Total Nonmajor Perpetual Downtown Canine NPDES Transportation Drug Redevelopment Special Revenue Care - I Development Forefeitures Permit Fees and Tourism Court Projects Funds $ - $ - $ - $ - $ - $ - $ - $ 11,077,927 - 534,219 - - - - - 13,291,863 - - - 14,963 - - - 2,999,479 20,254 - 147 843 3,601 589 - 180,515 - - - - 1,052,662 - - 7,206,807 - - 1,883 - - 148,388 - 562,883 - - - - - - - 5,512,521 - - - - - - 2,144,780 2,144,780 - - - - - - - 826,311 20,254 534,219 2,030 15,806 1,056,263 148,977 2,144,780 43,803,086 - 631,282 - - - 14,991 - 3,413,362 - - - - - - - 331,'702 - - - - - - - 3,827,503 - - - 1,750 - - - 4,861,006 25,234 - - - - - - 3,736,927 - 154,610 - - 280,127 - 2,144,780 10,623,060 5,346 - - - - - - 2,176,628 - 1,433 - - - - 7,523 1,088,310 30,580 787,325 - 1,750 28Q127 14,991 2,152,303 30,058,498 (]0,326) (253,106) 2,030 14,056 776,136 133,986 (7,523) 13,744,588 - - - - - - - 1,078,570 - - - - �3so,000> - - �i2,s4z,9i9> - 253,106 - - - - - (1,796,027) - 253,106 - - (350,000) - - (13,260,376) (10,326) - 2,030 14,056 426,136 133,986 (7,523) 484,212 368,234 212 19,664 110,844 256,127 15,756 - 14,695,112 $ 357,908 $ 212 $ 21,694 $ 124,900 $ 682,263 $ 149,742 $ (7,523) $ 15,179,324 101 AUGUSTA, GEORGIA Urban Services District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Taxes - property $ 7,466,983 $ 7,478,635 $ 11,652 $ 7,839,331 Taxes - other than property 8,220,000 8,663,069 443,069 8,637,125 Use of money and property 75,000 32,275 (42,725) 64,746 Charges for current services 315,000 339,345 24,345 376,887 Total revenues 16,076,983 16,513,324 436,341 16,918,089 Expenditures Current: General government 1,439,120 1,502,226 (63,106) 1,360,254 Public works 434,140 447,350 (13,210) 373,455 Culture and recreation 7,350 6,674 676 6,672 Housing and development 345,638 320,009 25,629 341,525 Total expenditures 2,226,248 2,276,259 (50,011) 2,081,906 Excess (deficiency) of revenues over (under) expenditures 13,850,735 14,237,065 386,330 14,836,183 Other financing sources (uses) Transfers (out) (11,260,590) (9,977,051) 1,283,539 (11,440,280) Transfers in (out) between nonmajor funds (2,590,145) (2,834,836) (244,691) (2,614,983) Total other financing sources (uses) (13,850,735) (12,811,887) 1,038,848 (14,055,263) Net change in fund balances $ - 1,425,178 $ 1,425,178 780,920 Fund balance - beginning 3,139,547 2,358,627 Fund balance - ending $ 4,564,725 $ 3,139,547 102 AUGUSTA, GEORGIA Emergency Telephone System Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 8,000 $ 5,724 $ (2,276) $ 10,241 Charges for current services 2,928,180 3,134,629 206,449 2,794,286 Total revenues 2,936,180 3,140,353 204,173 2,804,527 Expenditures Current: General government 3,670 3,323 347 3,326 Public safety 3,433,890 3,157,174 276,716 3,389,542 Capital outlay 10,000 - 10,000 89,543 Total expenditures 3,447,560 3,160,497 287,063 3,482,411 Excess (deficiency) of revenues over (under) expenditures (511,380) (20,144) 491,236 (677,884) Other financing sources (uses) Transfers in 340,000 340,000 - 340,000 Total other financing sources (uses) 340,000 340,000 - 340,000 Net change in fund balances $ (171,380) 319,856 $ 491,236 (337,884) Fund balance - beginning 786,590 1,124,474 Fund balance - ending $ 1,106,446 $ 786,590 103 AUGUSTA, GEORGIA Capital Outlay Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Taxes - property $ 3,511,344 $ 3,599,292 $ 87,948 $ 3,784,415 Use of money and property - 51,180 51,180 58,336 Total revenues 3,511,344 3,650,472 139,128 3,842,751 ExPenditures Current: General government 1,403,115 1,042,971 360,144 1,227,771 Judicial 2,600 2,621 (21) 62,130 Public safety 2,160 2,150 10 - Public works 315,079 204,135 110,944 62,738 Culture and recreation 190,825 156,470 34,355 203,202 Housing and development 50,000 48,981 1,019 103,699 Capital outlay 3,093,204 1,787,226 1,305,978 1,052,661 Debt service 1,079,358 1,079,354 4 1,438,340 Total expenditures 6,136,341 4,323,908 1,812,433 4,150,541 Excess (deficiency) of revenues over (under) expenditures (2,624,997) (673,436) 1,951,561 (307,790) Other financing sources (uses) Transfers in 1,250,000 - (1,250,000) - Transfers (out) - - - (179,815) Transfers in (out) between nonmajor funds (1,250,000) (1,250,000) - - Total other financing sources (uses) - (1,250,000) (1,250,000) (179,815) Net change in fund balances $ (2,624,997) (1,923,436) $ 701,561 (487,605) Fund balance - beginning 4,950,693 5,438,298 Fund balance - ending $ 3,027,257 $ 4,950,693 104 AUGUSTA, GEORGIA Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 1,835 $ 1,835 $ 3,315 Charges for current services 200,000 79,332 (120,668) 391,459 Total revenues 200,000 81,167 (118,833) 394,774 Expenditures Current: Public safety 200,000 37,070 162,930 70,149 Capital outlay - - - 55,570 Total expenditures 200,000 37,070 162,930 125,719 Excess (deficiency) of revenues over (under) expenditures - 44,097 44,097 269,055 Other financing sources (uses) Transfers (out) - - - (500,000) Total other financing sources (uses) - - - (500,000) Net change in fund balances $ - 44,097 $ 44,097 (230,945) Fund balance - beginning 233,592 464,537 Fund balance - ending $ 277,689 $ 233,592 105 AUGUSTA, GEORGIA Occupation Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Licensesandpermits $ 2,400,000 $ 2,186,476 $ (213,524) $ 2,193,810 Use of money and property 20,000 1,262 (18,738) 3,022 Other - 9,642 9,642 5,226 Total revenues 2,420,000 2,197,380 (222,620) 2,202,058 Expenditures Current: General government 6,030 6,030 - 5,360 Total expenditures 6,030 6,030 - 5,360 Excess (deficiency) of revenues over(under)expenditures 2,413,970 2,191,350 (222,620) 2,196,698 Other financing sources (uses) Transfers (out) (2,413,970) (2,191,350) 222,620 (2,196,698) Total other financing sources (uses) (2,413,970) (2,191,350) 222,620 (2,196,698) Net change in fund balances $ - - $ - - Fund balance - beginning - - Fund balance - ending $ - $ - 106 AUGUSTA, GEORGIA Special Assessment Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Charges for current services $ 2,030,000 $ 2,059,052 $ 29,052 $ 2,051,472 Use of money and property - - - 750 Total revenues 2,030,000 2,059,052 29,052 2,052,222 Expenditures Current: General government 45,000 15,749 29,251 15,660 Public works 4,660,840 4,207,771 453,069 4,231,407 Capital outlay 100,000 95,366 4,634 30,866 Total expenditures 4,805,840 4,318,886 486,954 4,277,933 Excess (deficiency) of revenues over (under) expenditures (2,775,840) (2,259,834) 516,006 (2,225,711) Other financing sources (uses) Transfers in 738,570 738,570 - 750,000 Transfers in (out) between nonmajor funds 2,037,270 2,037,270 - 1,719,860 Total other financing sources (uses) 2,775,840 2,775,840 - 2,469,860 Net change in fund balances $ - 516,006 $ 516,006 244,149 Fund balance - beginning 287,904 43,755 Fund balance - ending $ 803,910 $ 287,904 107 AUGUSTA, GEORGIA HoteUMotel Tax and Promotion/Tourism Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Ta7ces - other than property $ 4,245,000 $ 4,094,575 $ (150,425) $ 4,637,904 Total revenues 4,245,000 4,094,575 (150,425) 4,637,904 Expenditures Current: Culture and recreation 4,245,000 3,548,549 696,451 4,637,903 Total expenditures 4,245,000 3,548,549 696,451 4,637,903 Excess (deficiency) of revenues over (under) expenditures - 546,026 546,026 1 Transfers in (out) between nonmajor funds - (546,027) (546,027) - Total other financing sources (uses) - (546,027) (546,027) - Net change in fund balances $ - (1) $ (1) 1 Fund balance (deficit) - beginning - (1) Fund balance (deficit) - ending $ (1) � $ - 108 AUGUSTA, GEORGIA Housing and Neighborhood Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues � Intergovernmental $ 10,602,740 $ 5,512,521 $ (5,090,219) $ 4,879,990 Other 1,098,290 811,348 (286,942) 1,018,694 Total revenues 11,701,030 6,323,869 (5,377,161) 5,898,684 Expenditures Current General government 152,250 152,250 - 154,270 Housing and development 11,769,145 6,703,710 5,065,435 6,560,064 Total expenditures 11,921,395 6,855,960 5,065,435 6,714,334 Excess (deficiency) of revenues over (under) expenditures (220,365) (532,091) (311,726) (815,650) Other financing sources (uses) � Transfers (out) - (12,369) (12,369) (12,410) Transfers in (out) between nonmajor funds 220,365 544,460 324,095 580,123 Total other financing sources (uses) 220,365 532,091 311,726 567,713 Net change in fund balances $ - - $ - (247,937) Fund balance - beginning (121,341) 126,596 Fund balance (deficit) - ending $ (121,341) $ (121,341) 109 AUGUSTA, GEORGIA Urban Development Action Grant Fund (UDAG) Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 5,300 $ 3,250 $ (2,050) $ 4,789 Intergovernmental - - - 35,000 Other - 5,321 5,321 1,450 Total revenues 5,300 8,571 3,271 41,239 Expenditures Current: General government 4,070 4,070 - 8,100 Housing and development 11,800 23,116 (11,316) 836,186 Total expenditures 15,870 27,186 (11,316) 844,286 Excess (deficiency) of revenues over (under) expenditures (10,570) (18,615) (8,045) (803,047) Other financing sources (uses) Transfers in (out) between nonmajor funds - - - 803,818 Total other financing sources (uses) - - - 803,818 Net change in fund balances $ (10,570) (18,615) $ (8,045) 771 Fund balance - beginning 150,712 149,941 Fund balance - ending $ 132,097 $ 150,712 110 AUGUSTA, GEORGIA Federal Drug Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 5,027 $ 5,027 $ 8,045 Fines and forfeitures 600,000 33,311 (566,689) 167,897 Total revenues 600,000 38,338 (561,662) 175,942 Expenditures Current: Public safety 592,650 41,557 551,093 2,862 Capital outlay 7,350 - 7,350 50,661 Total expenditures 600,000 41,557 558,443 53,523 Excess (deficiency) of revenues over (under) expenditures - (3,219) (3,219) 122,419 Net change in fund balances $ - (3,219) $ (3,219) 122,419 Fund balance - beginning 708,793 586,374 Fund balance - ending $ 705,574 $ 708,793 111 AUGUSTA, GEORGIA State Drug Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 35,290 $ 35,290 $ 10,241 Fines and forfeitures 800,000 112,560 (687,440) 120,219 Intergovernmental - - - 215,703 Total revenues 800,000 147,850 (652,150) 346,163 Expenditures Current: Public safety 507,374 32,959 474,415 158,129 Housing and development - - - 238,656 Capital outlay 292,626 288,690 3,936 253,855 Total expenditures 800,000 321,649 478,351 650,640 Excess (deficiency) of revenues over (under) expenditures - (173,799) (173,799) (304,477) Net change in fund balances $ - (173,799) $ (173,799) (304,47'7) Fund balance - beginning 778,784 1,083,261 Fund balance - ending $ 604,985 $ 778,784 112 AUGUSTA, GEORGIA 5% Victim's Crime Assistance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 5,000 $ 681 $ (4,319) $ 2,161 Fines and forfeitures 302,500 266,741 ' (35,759) 280,492 Total revenues 307,500 267,422 (40,078) 282,653 Expenditures Current: General government 6,750 6,750 - 7,740 Judicial 300,750 325,581 (24,831) 350,844 Total expenditures 307,500 332,331 (24,831) 358,584 Excess (deficiency) of revenues over (under) expenditures - (64,909) (64,909) (75,931) Net change in fund balances $ - (64,909) $ (64,909) (75,931) Fund balance - beginning 181,227 257,158 Fund balance - ending $ 11 $ 181,227 113 AUGUSTA, GEORGIA Supplemental Juvenile Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 319 $ 319 $ 438 � Charges for current services 15,000 14,425 (575) 6 475 , Total revenues 15,000 14,744 (256) 6,913 Expenditures Current: General government 1,040 1,040 - 1,580 Judicial 15,000 3,500 I1,500 2,990 Total expenditures 16,040 4,540 11,500 4,570 Excess (deficiency) of revenues over (under) expenditures (1,040) 10,204 11,244 2,343 Net change in fund balances $ (1,040) 10,204 $ 11,244 2,343 Fund balance - beginning 40,020 37,677 Fund balance - ending $ 50,224 $ 40,020 114 AUGUSTA, GEORGIA Building Inspection Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Licenses and permits $ 1,084,140 $ 798,040 $ (286,100) $ 1,024,801 Use of money and property 8,000 5,689 (2,311) 11,664 Total revenues 1,092,140 803,729 (288,411) 1,036,465 Expenditures Current: General government 93,145 32,680 60,465 26,030 Housing and development 998,995 947,727 51,268 935,310 Capital outlay - - - 185,508 Total expenditures 1,092,140 980,407 111,733 1,146,848 Excess (deficiency) of revenues over (under) expenditures - (176,678) (176,678) (110,383) Other financing sources (uses) Transfers (out) - (12,149) (12,149) (12,410) Total other financing sources (uses) - (12,149) (12,149) (12,410) � Net change in fund balances $ - (188,827) $ (188,827) (122,793) Fund balance - beginning 878,279 1,001,072 Fund balance - ending $ 689,452 $ 878,279 I15 AUGUSTA, GEORGIA Wireless Phase Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 9,000 $ 12,549 $ 3,549 $ 17,627 Charges for current services 594,540 527,362 (67,178) 867,354 Total revenues 603,540 539,911 (63,629) 884,981 Expenditures Current: Public safety 603,540 556,593 46,947 273,407 Total expenditures 603,540 556,593 46,947 273,407 Excess (deficiency) of revenues over (under) expenditures - (16,682) (16,682) 611,574 Net change in fund balances $ - (16,682) $ (16,682) 611,574 Fund balance - beginning 1,909,475 1,297,901 Fund balance - ending $ 1,892,793 $ 1,909,475 116 AUGUSTA, GEORGIA Perpetual Care - I Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 79,800 $ 20,254 $ (59,546) $ 27,387 Total revenues 79,800 20,254 (59,546) 27,387 Expenditures Current: Culture and recreation 58,800 25,234 33,566 46,380 Capital outlay 21,000 5,346 15,654 - Total expenditures 79,800 30,580 49,220 46,380 Excess (deficiency) of revenues over (under) expenditures - (10,326) (10,326) (18,993) Net change in fund balances $ - (10,326) $ (10,326) (18,993) Fund balance - beginning 368,234 387,227 Fund balance - ending $ 357,908 $ 368,234 117 AUGUSTA, GEORGIA Downtown Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Taxes - other than property $ 497,870 $ 534,219 $ 36,349 $ 497,832 Total revenues 497,870 534,219 36,349 497,832 Expenditures Current: General government 657,770 631,282 26,488 628,214 Housing and development 154,610 154,610 - 181,090 Debt service 18,000 1,433 16,567 3,318 Total expenditures 830,380 787,325 43,055 812,622 Excess (deficiency) of revenues over (under) expenditures (332,510) (253,106) 79,404 (314,790) Other financing sources (uses) Transfers in (out) between nonmajor funds 332,510 253,106 (79,404) 315,000 Total other financing sources (uses) 332,510 253,106 (79,404) 315,000 Net change in fund balances (deficit) $ - - $ - 210 Fund balance (deficit) - beginning 212 2 Fund balance - ending � $ 2l2 $ 212 118 AUGUSTA, GEORGIA Canine Forfeitures Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 147 $ 147 $ 212 Fines and farfeitures 20,000 1,883 (18,117) 595 Total revenues 20,000 2,030 (17,970) 807 Expenditures Current: Public safety 20,000 - 20,000 - Total expenditures 20,000 - 20,000 - Excess (deficiency) of revenues over (under) expenditures - 2,030 2,030 807 Net change in fund balances $ - 2,030 $ 2,030 807 Fund balance - beginning 19,664 18,857 Fund balance - ending $ 21,694 $ 19,664 119 AUGUSTA, GEORGIA NPDES Permit Fees Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Licenses and permits $ 30,000 $ 14,963 $ (15,037) $ 6,391 Use of money and property 1,370 843 (527) 1,299 Total revenues 31,370 � 15,806 (15,564) 7,690 Expenditures Current: Public works 31,370 1,750 29,620 - Total expenditures 31,370 1,750 29,620 - Excess (deficiency) of revenues over (under) expenditures - 14,056 14,056 7,690 Net change in fund balances $ - 14,056 $ 14,056 7,690 Fund balance - beginning ll 0,844 103,154 Fund balance - ending $ 124,900 $ 110,844 120 AUGUSTA, GEORGIA Transportation and Tourism Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and properry $ - $ 3,601 $ 3,601 $ 2,795 Charges for current services 930,000 1,052,662 122,662 997,000 Total revenues 930,000 1,056,263 126,263 999,795 Expenditures Current: Housing and development 280,127 280,127 - - Total expenditures 280,127 280,127 - - Excess (deficiency) of revenues over (under) expenditures 649,873 776,136 126,263 999,795 Other financing sources (uses) Transfers (out) (900,000) (350,000) 550,000 (350,000) Transfers in (out) between nonmajor funds - - - (803,818) Total other financing sources (uses) (900,000) (350,000) 550,000 (1,153,818) Net change in fund balances $ (250,127) 426,136 $ 676,263 (154,023) Fund balance - beginning 256,127 410,150 Fund balance - ending $ 682,263 $ 256,127 121 AUGUSTA, GEORGIA Drug Court Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actuai Revenues Use of money and property $ - $ 589 $ 589 $ 60 Fines and forfeitures 135,000 148,388 13,388 26,096 Total revenues 135,000 148,977 13,977 26,156 Expenditures Current: General government 135,000 14,991 120,009 10,400 Total expenditures 135,000 14,991 120,009 10,400 Excess (deficiency) of revenues over (under) expenditures - 133,986 133,986 15,756 Net change in fund balances $ - 133,986 $ 133,986 15,756 Fund balance - beginning 15,756 - Fund balance - ending $ 149,742 $ 15,756 122 AUGUSTA, GEORGIA Urban Redevelopment Projects Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Amended Positive 2009 Budget Actual (Negative) Actual Revenues Contributions and donations $ 3,851,000 $ 2,144,780 $ (1,706,220) $ - Total revenues 3,851,000 2,144,780 (1,706,220) - Expenditures Housing and development 3,851,000 2,144,780 1,706,220 - Debt service - 7,523 (7,523) - Total expenditures 3,851,000 2,152,303 1,698,69? - Excess (deficiency) of revenues over (under) expenditures - (7,523) (7,523) - Net change in fund balances $ - (7,523) $ (7,523) - Fund balance - beginning - - Fund balance - ending $ (7,523) $ - 123 AUGUSTA, GEORGIA Combining Balance Sheet Nonmajor Debt Service Funds December 31, 2010 Coliseum 2006 GO Sales 2009 GO Sales Authority Total Nonmajor Tax Bonds Tax Bonds 2010 GO Bonds Revenue Bonds Debt Service Debt Service Debt Service Debt Service Debt Service Funds Assets Cash and temporary investments $ 15,206 $ - $ - $ - $ 15,206 Restricted assets Reserve account � - 1,028,749 125,108 71,350 1,225,207 Total assets $ 15,206 $ 1,028,749 $ 125,108 $ 71,350 $ 1,240,413 Liabilities and fund balances Liabilities: Due to other funds $ - $ 1,027,331 $ - $ - $ 1,027,331 Totalliabilities - 1,027,331 - - 1,027,331 Fund balances: Unreserved - undesignated 15,206 1,418 125,108 71,350 213,082 Total fund balances 15,206 1,418 125,108 71,350 213,082 Total liabilities and fund balances $ 15,206 $ 1,028,749 $ 125,108 $ 71,350 $ 1,240,413 124 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds Year Ended December 31, 2010 Coliseum 2006 GO Sales 2009 GO Sales Authority Total Nonmajor Tax Bonds Tax Bonds 2010 GO Bonds Revenue Bonds Debt Service Debt Service Debt Service Debt Service Debt Service Funds Revenues Use of money and property $ - $ 40,575 $ - $ 10,173 $ 50,748 Total revenues - 40,575 - 10,173 50,748 Expenditures Debt service 9,698,400 935,979 247,986 377,643 11,260,008 Total expenditures 9,698,400 935,979 247,986 377,643 11,260,008 Excess (deficiency) of revenues over (under) expenditures (9,698,400) (895,404) (247,986) (367,470) (11,209,260) Other financing sources (uses) Transfers in 9,697,900 - - - 9,697,900 Transfers in (out) between nonmajor funds - - (22,893,350) (24,000,000) (46,893,350) Bondsproceeds - - 21,950,000 22,120,000 44,070,000 Premium on bondssold - - 1,316,444 2,318,820 3,635,264 Total other financing sources (uses) 9,697,900 - 373,094 438,820 10,509,814 � Net change in fund balances (500) (895,404) 125,108 71,350 (699,446) Fund balance - beginning 15,706 896,822 - - 912,528 Fund balance - ending $ 15,206 $ 1 ,418 $ 125 ,108 $ 71,350 $ 213 , 0 82 125 AUGUSTA, GEORGIA 2006 GO Sales Tax Bonds Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 750 $ - $ (750) $ - Total revenues 750 - (750) - Expenditures Debt service 9,698,650 9,698,400 250 9,706,800 Total expenditures 9,698,650 9,698,400 250 9,706,800 Excess (de�ciency) of revenues over (under) expenditures (9,697,900) (9,698,400) (500) (9,706,800) Other financing sources (uses) Transfers in 9,697,900 9,697,900 - 9,707,050 Total other financing sources (uses) 9,697,900 9,697,900 - 9,707,050 Net change in fund balances $ - (500) $ (500) 250 Fund balance - beginning 15,706 15,456 Fund balance - ending $ 15,206 $ 15,706 126 AUGUSTA, GEORGIA 2009 GO Sales Tax Bonds Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ 41,500 $ 40,575 $ (925) $ - Total revenues 41,500 40,575 (925) - Expenditures Debt service 937,180 935,979 1,201 91,352 Total expenditures 937,180 935,979 1,201 91,352 Excess (de�ciency) of revenues over (under) expenditures (895,680) (895,404) 276 (91,352) Other financing sources (uses) Transfers in (out) between nonmajor funds - - - (31,533,270) Bonds proceeds - - - 30,550,000 Premium on bonds sold - - - 1,971,444 Total other financing sources (uses) - - - 988,174 Net change in fund balances $ (895,680) (895,404) $ 276 896,822 Fund balance - beginning 896,822 - Fund balance - ending $ 1,418 $ 896,822 127 __ _ AUGUSTA, GEORGIA 2010 GO Sales Tax Bonds Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Positive 2009 Budget Actual (Negative) Actual Expenditures Debt service $ 373,095 $ 247,986 $ 125,109 $ - Total expenditures 373,095 247,986 125,109 - Excess (deficiency) of revenues over (under) expenditures (373,095) (247,986) 125,109 - Other financing sources (uses) Transfers in (out) between nonmajor funds (22,893,350) (22,893,350) - - Bonds proceeds 21,950,000 21,950,000 - - Premium on bonds sold 1,316,445 1,316,444 (1) - Total other financing sources (uses) 373,095 373,094 (1) - Net change in fund balances $ - 125,108 $ 125,108 - Fund balance - beginning - - Fund balance - ending $ 125,108 $ - 128 AUGUSTA, GEORGIA Coliseum Authority Revenue Bonds Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual _ Nonmajor Debt Service Funds Year Ended December 31, 2010 With comparative amounts for December 31, 2009 Variance with Final Budget - Positive 2009 Budget Actual (Negative) Actual Revenues Use of money and property $ - $ 10,173 $ 10,173 $ - _ Total revenues - 10,173 10,173 - Expenditures Debt service 438,820 377,643 61,177 - Total expenditures 438,820 377,643 61,177 - Excess (deficiency) of revenues over (under) expenditures (438,820) (367,470) 71,350 - Other financing sources (uses) Transfers in (out) between nonmajor funds (24,000,000) (24,000,000) - - Bonds proceeds 22,120,000 22,120,000 - - Premium on bonds sold 2,318,820 2,318,820 - - Total other financing sources (uses) 438,820 438,820 - - Net change in fund balances $ - 71,350 $ 71,350 - Fund balance - beginning - - Fund balance - ending $ 71 ,350 $ - 129 AUGUSTA, GEORGIA Combining Balance Sheet Nonmajor Capital Project Funds December 31, 2010 Commu�ity Special Sales Special Sales Development Tax Phase II Tax Phase III Assets Cash and temporary inveshnents $ 137,697 $ 2,511,121 $ 28,478,123 Restricted assets Reserve account - - - Total assets 137,697 2,511,121 28,478,123 Liabilities and fund balances Liabilities: Accounts payable $ - $ 19,374 $ 240,611 Totalliabilities � - 19,374 240,6ll Fund balances: Encumbrances - 275,162 6,603,864 Bond Projects - - - Unreserved - undesignated 137,697 2,216,585 21,633,648 Total fund balances 137,697 2,491,747 28,237,512 Total liabilities and fund balances $ 137,697 $ 2,511,121 $ 28,478,123 130 Coliseum and Total Nonmajor Special Sales TEE Center Capital Project Tax Phase VI Capital Projects Funds $ 6,535,903 $ 546,027 $ 38,208,871 38,572,089 24,000,000 62,572,089 45,107,992 � 24,546,027 100,780,960 $ 243,747 $ - $ 503,732 243,747 - 503,732 2,742,517 - 9,621,543 42,843,594 24,000,000 66,843,594 (721,866) 546,027 23,812,091 44,864,245 24,546,027 100,277,228 $ 45,107,992 $ 24,546,027 $ 100,78Q960 131 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Project Funds Year Ended December 31, 2010 Community Special Sales Special Sales Development Tax Phase II Tax Phase III Revenues Use of money and property $ - $ 37,575 $ 302,529 Intergovernmental - - 275,447 Total revenues - 37,575 577,976 Expenditures Current: General government - 4,010 217,960 Public safety - - - Public works - 129,867 1,30Q251 Culture and recreation - - 250 Capital outlay - - 3,511,578 Intergovernmental - - - Total expenditures - 133,877 5,030,039 Excess (deficiency) of revenues over(under)expenditures - (96,302) (4,452,063) Other financing sources (uses) Transfers in (out) between nonmajor funds - - - Total other financing sources (uses) - - - Net change in fund balances - (96,302) (4,452,063) Fund balance - beginning 137,697 2,588,049 32,689,575 Fund balance - ending $ 1 $ 2, 491,747 $ 28, 132 Coliseum and Total Nonmajor Special Sales TEE Center Capital Project Tax Phase VI Capital Projects Funds ' $ 32,975 $ - $ 373,079 - - 275,447 32,9'75 - 648,526 320,647 - 542,617 213,550 - 213,550 - - 1,430,118 62,647 - 62,897 - - 3,511,578 250,000 - 250,000 846,844 - 6,010,760 (813,869) - (5,362,234) 24,143,350 24,546,027 48,689,377 24,143,350 24,546,027 48,689,377 23,329,481 24,546,027 43,327,143 21,534,764 - 56,950,085 $ 44,864,245 $ 24,546,027 $ 100,277,228 133 AUGUSTA, GEORGIA Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2010 Municipal Waste Golf Management Course Transit Assets Current assets Cash and temporary investments $ 12,877,551 $ - $ 150 Receivables Accounts 1,190,983 20,302 2,254,120 Interest - - - Inventory - 6,617 233,476 Total cunent assets 14,068,534 26,919 2,487,746 Noncurrent assets Restricted cash and investments 9,514,065 - - Deferred bond issuance costs 584,783 - - Capital assets, net 38,377,308 1,335,289 4,563,358 Total noncurrent assets 48,476,156 1,335,289 4,563,358 Total assets 62,544,6 0 1,3 2,208 7,051,10 Liabilities Current liabilities Accounts payable 1,059,208 19,915 299,527 Due to other funds - 31,166 649, ll 1 Accrued salaries and vacation 66,562 5,719 162,183 Other accrued liabilities 218,759 - - Current portion of leases payable to GMA Lease Fund 294,364 - - Current portion of revenue bonds payable 785,000 - - Total current liabilities 2,423,893 56,800 1,110,821 Noncurrent liabilities Closure/postclosure accrual 16,245,410 - - Revenue bonds payable 10,789,554 - - Capital leases payable to GMA Lease Fund 648,202 - - Total noncurrent liabilities 27,683,166 - - Totalliabilities 30,107,059 56,800 1,110,821 Net assets (deficit) Invested in capital assets, net of related debt 35,371,561 1,335,289 4,563,358 Restricted for debt service 2,692 - - Unrestricted (2,936,622) (29,881) 1,376,925 Total net assets (deficit) $ 32,437,631 $ 1,305,408 $ 5,940,283 136 Daniel Total Nonmajor Field Garbage Enterprise Airport Collection Fu $ 581,965 $ 6,978,661 $ 20,438,327 114,407 2,223,541 5,803,353 583 - 583 - - 240,093 696,955 9,202,202 26,482,356 - - 9,514,065 - - 584,783 1,747,621 1,654,415 47,677,991 1,747,621 1,654,415 57,776,839 2,4 4,57 1,856,617 84, 5,195 42,450 977,884 2,398,984 291,124 - 971,401 - 22,187 256,651 - - 218,759 - 806,279 1,100,643 - - 785,000 333,574 1,806,350 5,731,438 - - 16,245,410 - - 10,789,554 - 471,963 1,120,165 - 471,963 28,155,129 333,574 2,278,313 33,886,567 1,747,621 376,173 43,394,002 - - 2,692 363,381 8,202,131 6,975,934 $ 2,111,002 $ 8,578,304 $ 50,372,628 137 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds Year Ended December 31, 2010 Municipal Waste Golf Management Course Transit Operating revenues Charges and fees $ 9,715,639 $ 376,892 $ 727,297 Total operating revenues 9,715,639 376,892 727,297 Operating expenses Personal services and employee benefits 1,185,571 317,264 3,080,446 Purchased/contracted services 276,487 66,751 141,622 Supplies 965,490 132,455 657,491 Repairs and maintenance 1,709,227 30,184 250,619 Interfund/interdepartmental charges 309,647 48,890 211,884 Depreciation 1,154,380 32,510 597,252 Closure/postclosure accrual 750,675 - - Total operating expenses 6,351,477 628,054 4,939,314 Operating income (loss) 3,364,162 (251,162) (4,212,017) Nonoperating revenue (expense) Interest revenue 99,258 - 18,496 Sale of property 14,828 - 3,506 Other revenue (11) 23,383 846 Intergovernmental - - 3,733,226 Interest expense (109,517) (417) - Total nonoperating revenue (expense) 4,558 22,966 3,756,074 Income (loss) before transfers 3,368,720 (228,196) (455,943) Transfers in - 230,200 1,900,000 Transfers out (125,000) - - Change in net assets 3,243,720 2,004 1,444,057 Total net assets (deficit) - beginning 29,193,911 1,303,404 4,496,226 Total net assets (deficit) - ending $ 32,437,631 $ 1,305,408 $ 5,940,283 138 Daniel Field Garbage Airport Collection Total $ 101,029 $ 15,626,417 $ 26,547,274 101,029 15,626,417 26,547,274 25,165 353,646 4,962,092 14,791 14,302,881 14,802,532 13,347 74,664 1,843,447 26,843 5,283 2,022,156 15,844 42,350 628,615 84,504 796,284 2,664,930 - - 750,675 180,494 15,575,108 27,674,447 (79,465) 51,309 (1,127,173) 2,097 50,795 170,646 - - 18,334 38,880 - 63,098 155,602 - 3,888,828 - - (109,934) 196,579 50,795 4,030,972 117,114 102,104 2,903,799 � - 2,947,301 5,077,501 - - (125,000) 117,114 3,049,405 7,856,300 1,993,888 5,528,899 42,516,328 $ 2,111,002 $ 8,578,304 $ 50,372,628 139 AUGUSTA, GEORGIA Combining Statement of Cash Flows Nonmajor Enterprise Funds Year Ended December 31, 2010 Municipal Waste Golf Management Course Transit Operating activities Cash received from customers 9,514,149 $ 375,629 $ 727,297 Cash advanced from other funds - - - Cash paid to suppliers (2,689,641) (225,888) (1,418,707) Cash paid to employees (1,166,924) (328,276) (3,069,821) Cash paid for interfund services used (309,647) (74,631) 437,227 Net cash provided by (used in) operating activities 5,347,937 (253,166) (3,324,004) Noncapital financing activities Transfers in - 230,200 1,900,000 Transfers out (125,000) - - Operating grants - - 72,070 Interest expense on operating capital - 22,393 - Net cash provided by noncapital financing activities (125,000) 252,593 1,972,070 Capital and related financing activities Proceeds from sale of property 156,948 - 3,506 Proceeds from grants - - 2,161,432 Proceeds from capital leases 353,318 - - Proceeds from bonds issued 9,390,734 - - Payments on bonds issued (1,700,000) - - Payments on capital leases (193,316) - - Payment of bond issue costs (285,629) - - Purchase of capital assets (9,934,738) - (1,713,886) Interest paid on capital debt (123,496) - � - Other miscellaneous income (11) � 573 846 Net cash provided by (used in) capital and related financing activites (2,336,190) 573 451,898 Investing activities Interest received 99,258 - 18,496 Net cash provided by investing activities 99,258 - 18,496 Net increase (decrease) in cash and cash equivalents/investments 2,986,005 - (881,540) Cash and cash equivalents/investments Beginning of year 19,405,611 - 881,690 End of year $ 22,391,616 $ - $ 1 140 Total Nonmajor Daniel Field Garbage Enterprise Airport Collection Funds $ (13,378) $ 15,198,256 $ 25,801,953 230,134 - 230,134 (12,353) (14,385,217) (18,731,806) (26,299) (350,413) (4,941,733) (15,844 (42,350) (5,245) 162,260 420,276 2,353,303 - 2,947,301 5,077,501 - - (125,000) - - 72,070 - - 22,393 - 2,947,301 5,046,964 - - 160,454 155,602 - 2,317,034 - 175,387 528,705 - - 9,390,734 - - (1,700,000) - (776,864) (970,180) - - (285,629) (156,356) (240,058) (12,045,038) - - (123,496) 38,880 - 40,288 38,126 (841,535) (2,687,128) 2,206 50,795 170,755 2,206 50,795 170,755 202,592 2,576,837 4,883,894 379,373 4,401,824 25,068,495 $ 581,965 $ 6,978,661 $ 29,952,392 141 AUGUSTA, GEORGIA Combining Statement of Cash Flows - Continued Nonmajor Enterprise Funds Year Ended December 31, 2010 Municipal Waste Golf Management Course Transit Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) $ 3,364,162 $ (251,162) $ (4,212,017) Adjustments to reconcile operating income (loss) to net cash proided by (used in) operating activities: Depreciation and amortization 1,154,380 32,510 597,252 Closure/post closure costs 750,675 - - Accounts receivable � (201,490) (1,263) - Inventory - 2,941 (27,876) Accounts payable 302,625 561 (341,099) Accrued salaries and vacation 18,647 (11,012) 10,625 Other accrued liabilites (41,062) - - Due to other funds - (25,741) 649,111 Total adjustments 1,983,775 (2,004) 888,013 Net cash provided by (used in) operating activities $ 5,347,937 $ (253,166) $ (3,324,004) Reconciliation of cash and cash equivalents to the balance sheets Cash and cash equivalents in current assets $ 12,877,551 $ - $ 150 Restricted cash and cash equivalents included in noncurrent cash and investments 9,514,065 - - Net cash and cash equivalents $ 22,391,616 $ - $ 150 142 Total Nonmajor Daniel Field Garbage Enterprise Airport Collection Funds $ (79,465) $ 51,309 (1,127,173) 84,504 796,284 2,664,930 - - 750,675 (114,407) (428,161) (745,321) - - (24,935) 42,628 (2,389) 2,326 � (1,134) 3,233 20,359 - - (41,062) 230,134 - 853,504 241,725 368,967 3,480,476 $ 162,260 $ 420,276 $ 2,353,303 $ 581,965 $ 6,978,661 20,438,327 - - 9,514,065 $ 581,965 $ 6,978,661 $ 29,952,392 143 AUGUSTA, GEORGIA Combining Statement of Net Assets Internal Service Funds December 31, 2010 Risk Fleet Workers Management Operations Compensation Assets Current assets Cash and temporary investments $ 1,066,055 $ 223,275 $ 175,447 Capital leases receivable from other funds - - - Prepaid expenses - - - Total current assets 1,066,055 223,275 175,447 Noncurrent assets Restricted investments - - 137,769 Capital assets, net 312,721 63,992 - Total noncurrent assets 312,721 63,992 137,769 Total assets 1,378,776 287,267 313,216 Liabilities Current liabilities Accounts payable 50,018 407,065 150,578 Due to other funds - - - Accrued salaries and vacation 7,172 2,495 - Other accrued liabilities - 4 - Total current liabilities 57,190 414,388 150,578 Noncurrent liabilities Revenue bonds payable - - - Total noncurrent liabilities - - - Totalliabilities 57,190 414,388 150,578 Net assets (deficit) � Invested in capital assets, net of related debt 312,721 63,992 - Unrestricted 1,008,865 (191,113) 162,638 - Total net assets (deficit) $ 1,321,586 $ (127,121) $ 1 146 Long-term Employee Disability GMA Health Bene Unemploym Insurance Leases Total $ - $ - $ 15,658 $ - $ 1,480,435 - - - 3,637,402 3,637,402 1,525 - - - 1,525 1,525 - 15,658 3,637,402 5,119,362 - - - 13,518,909 13,656,678 - - - - 376,713 - - - 13,518,909 14,033,391 1,525 - 15,658 17,156,311 19,152,753 - - - 170,637 778,298 1,525 - - 704,350 705,875 _ _ - - 9,667 - - - 9,024 13,852 1,525 - - 884,011 1,507,692 - - - 16,304,100 16,304,100 - - - 16,304,100 16,304,100 1,525 - - 17,188,ll1 17,811,792 _ _ - - 376,713 - - 15,658 (31,800) 964,248 $ - $ - $ 15,658 $ (31,800) $ 1,340,961 147 AUGUSTA, GEORGIA Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds Year Ended December 31, 2010 Risk Fleet Workers Mana�ement Operations Compensation Operating revenues Charges and fees $ 1,690,097 $ 5,026,670 $ 2,170,030 Total operating revenues 1,690,097 5,026,670 2,170,030 Operating expenses Personal services and employee benefits 337,806 119,728 - Purchased/contracted services 452,208 25,974 - Supplies 67,439 159,319 - Repairs and maintenance 220 4,518,263 - Other costs 3,519 63,367 - Depreciation 1,722 19,447 - Lease expense - - - Risk benefit charges 914,278 125,440 4,600 lnsurance - - 2,165,837 Total operating expenses 1,777,192 5,031,538 2,170,437 Operating income (loss) (87,095) (4,868) (407) Nonoperating revenue (expense) Interest revenue 10,030 - 408 Sale of property - 4,669 - Other revenue 72,320 400 - Interestexpense - (665) - Total nonoperating revenue (expense) 82,350 4,404 408 Income (loss) before transfers (4,'745) (464) 1 Transfers in - - - Transfers between Internal Service Funds - - - Change in net assets (4,745) (464) 1 Total net assets (deficit) - beginning 1,326,331 (126,657) 162,637 Total net assets (de6cit) - ending $ 1,321,586 $ (127,121) $ 162,638 148 Long-term Employee Disability GMA Health Benefits Unemployment Insurance Leases Total $ 19,830,842 $ 266,580 $ 486,432 $ 2,159,999 $ 31,630,650 19,830,842 266,580 486,432 2,159,999 31,630,650 - - - - 457,534 82,958 - - - 561,140 - - - - 226,758 - - - - 4,518,483 - - - - 66,886 - - - - 21,169 - - - 2,147,048 2,147,048 15,870 - 1,320 - 1,061,508 20,147,454 265,077 486,436 - 23,064,804 20,246,282 265,077 487,756 2,147,048 32,125,330 (415,440) 1,503 (1,324) 12,951 (494,680) - - - 266,574 277,012 - - - - 4,669 5,633 - - - 78,353 (26,740) (1,503) (224) (279,526) (308,658) (21,107) (1,503) (224) (12,952) 51,376 (436,547) - (1,548) (1) (443,304) 438,095 - - - 438,095 (1,548) - 1,548 - - - - - (1) (5,209) - - 15,658 (31,799) 1,346,170 $ - $ - $ 15,658 $ (31,800) $ 1,340,961 149 AUGUSTA, GEORGIA Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 2010 Risk Fleet Workers Management Operations Compensation Operating activities Cash received from contributions $ 1,715,322 $ 5,027,424 $ 2,170,030 Cash received from General Fund - - - Cash paid to suppliers (1,397,787) (4,872,000) (2,171,261) Cash paid to employees (356,723) (128,549) - Net cash provided by (used in) operating activities (39,188) 26,875 (1,231) Noncapital financing activities Transfers in - - - Transfers out - - - Interest earned (expensed) on operating capital - (665) - Other miscellaneous income 72,320 - - Net cash provided by (used in) noncapital financing activities 72,320 (665) - Capital and related Gnancing activities Proceeds from sale of property - 7,791 - Other miscellaneous income � - 400 - Interest paid on capital debt - - - Net cash provided by (used in) capital and related financing activities - 8,191 - Investing activities Interest received 10,030 - 408 Net cash provided by investing activities 10,030 - 408 Net increase (decrease) in cash and cash equivalents 43,162 34,401 (823) Cash and cash equivalents/investments Beginning of year 1,022,893 188,874 314,039 End of year $ 1,066,055 $ 223,275 $ 313,216 150 Long-term Total Employee Disability GMA Internal Service Health Benefits Unemployme Insurance Leases Funds $ 18,218,327 $ 266,580 $ 486,432 $ 2,159,999 $ 30,044,114 - - - 704,350 704,350 (18,633,767) (265,077) (487,756) (1,716,849) (29,544,497) - - - - (485,272) (415,440) 1,503 (1,324) 1,147,500 718,695 438,095 - 1,548 - 439,643 (1,548) - - - (1,548) �a6,�4o� �l,so3� - - (ag,9os� 5,633 - - - 77,953 415,440 (1,503) 1,548 - 487,140 - - - - 7,791 - - - - 400 - - - (234,611) (234,611) - - - (234,611) (226,420) - - (224) 266,574 276,788 - - (224) 266,574 276,788 - - - 1,179,463 1,256,203 - - 15,658 12,339,446 13,880,910 $ - $ - $ 15,658 $ 13,518,909 $ 15,137,113 151 AUGUSTA, GEORGIA Combining Statement of Cash Flows - Continued Internal Service Funds Year Ended December 31, 2010 Risk Fleet Workers Management Operatio Compensation Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) $ (87,095) $ (4,868) $ (407) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,721 19,447 - Change in assets and liabilities: Accounts receivable 25,225 754 - Prepaid expenses - - - Accounts payable 39,878 15,535 (824) Accrued salaries and vacation (18,917) (8,821) - Other accrued liabilites 4,828 Due to other funds - - - 47,907 31,743 (824) Net cash provided by (used in) operating activities $ (39,188) $ 26,875 $ (1,231) Reconciliation of cash and cash equivalents to the balance sheets Cash and cash equivalents in current assets $ 1,066,055 $ 223,275 $ 175,447 Restricted cash and cash equivalents included in noncurrent cash and investments - - 137,769 Net cash and cash equivalents $ 1,066,055 $ 223,275 $ 313,216 152 Long-term Total Employee Disability GMA Internal Service Health Benefits Unemployment Insurance Leases Funds $ (415,440) $ 1,503 $ (1,324) $ 12,951 $ (494,680) _ _ _ - 21,168 - - - 250,538 276,517 1,612,515 - - - 1,612,515 - - - 170,637 225,226 - - - - (27,738) 9,024 13,852 (1,612,515) - - 704,350 (908,165) - - - 1,134,549 1,213,375 $ (415,440) $ 1,503 $ (1,324) $ 1,147,500 $ 718,695 $ - $ - $ 15,658 $ - $ 1,480,435 - - - 13,518,909 13,656,678 $ - $ - $ 15,658 $ 13,518,909 $ 15,137,113 153 AUGUSTA, GEORGIA Combining Statement of Fiduciary Net Assets Pension Trust Funds December 31, 2010 1945 General , Plan Retirement Total Assets Cash and cash equivalents $ 1,502,017 $ 4,273,890 $ 5,775,907 Investments U.S. Government securities 769,979 11,366,858 12,136,837 Corporate bonds 1,047,811 5,006,744 6,054,555 Equity securities 3,573,714 37,965,977 41,539,691 Receivables (net of allowance for doubtful accounts) Accounts 302,173 1,306,374 1,608,547 Interest 21,302 211,949 233,251 Total assets 7,216,996 60,131,792 67,348,788 Liabilities Accounts payable 136 136 272 Total liabilities 136 136 272 Net assets Reserved for employees' retirement benefits $ 7,216,860 $ 60,131,656 $ 67,348,516 158 AUGUSTA, GEORGIA Combining Statement of Changes in Fiduciary Net Assets Pension Trust Funds Year Ended December 31, 2010 1945 General Plan Retirement Total Additions Contributions Contributions - employer $ 302,173 $ 2,767,136 $ 3,069,309 Contributions - plan member 9,913 328,396 338,309 Total contributions 312,086 3,095,532 3,407,618 Investment earnings Interest and dividend income 6,189 - 6,189 Net increase (decrease) in fair value of investments (189,326) 3,976,869 3,787,543 Total investment earnings (183,137) 3,976,869 � 3,793,732 Lessinvestmentexpense (33,116) (400,351) (433,467) Net investment earnings (216,253) 3,576,518 3,360,265 Total additions 95,833 6,672,050 6,767,883 Deductions Benefit payments 979,295 6,028,324 7,007,619 Netincrease(decrease)in plan netassets (883,462) 643,726 (239,736) Total net assets - beginning 8,100,322 59,487,930 67,588,252 Total net assets - ending $ 7,216,860 $ 60,131,656 $ 67,348,516 159 AUGUSTA, GEORGIA Combining Statement of Changes in Fiduciary Assets and Liabilities Agency Funds December 31, 2010 January 1, 2010 Additions Deductions December 31, 2010 Tax Commisioner Assets Cash and cash eyuivalents $ 2,332,167 $ 88,141,306 $ 88,280,741 $ 2,192,732 Receivables (net of allowance for doubtful accounts) Taxes 21,639,055 162,192,669 162,556,885 21,274,839 Total assets $ 23,971,222 $ 250,333,975 $ 250,837,626 $ 23,467,571 Liabilities Due to others $ 2,332,167 $ 88,141,306 $ 88,280,741 $ 2,192,732 Uncollected taxes 21,639,055 162,192,669 162,556,885 21,274,839 Totalliabilities $ 23,971,222 $ 250,333,975 $ 250,837,626 $ 23,467,571 Probate Assets Cash and cash eyuivalents $ 14,920 $ 196,185 $ 188,799 $ 22,306 Total assets $ 14,920 $ 196,185 $ 188,799 $ 22,306 Liabilities Due to others $ 14,920 $ 196,185 $ 188,799 $ 22,306 Totalliabilities $ 14,920 $ 196,185 $ 188,799 $ 22,306 Sheriff Assets Cash and cash equivalents $ 1,690,ll6 $ 2,417,199 $ 2,325,354 $ 1,781,961 Total assets $ 1,690,116 $ 2,417,199 $ 2,325,354 $ 1,781,961 Liabilities Due to others $ 1,690,116 $ 2,417,199 $ 2,325,354 $ 1,781,961 Totalliabilities $ 1,690,116 $ 2,417,199 $ 2,325,354 $ 1,781,961 Civil Court Assets Cash and cash equivalents $ 422,077 $ 2,936,854 $ 2,918,812 $ 440,119 Total assets $ 422,077 $ 2,936,854 $ 2,918,812 $ 440,119 Liabilities Due to others $ 422,077 $ 2,936,854 $ 2,918,812 $ 440,119 Totalliabilities $ 422,077 $ 2,936,854 $ 2,918,812 $ 440,ll9 162 AUGUSTA, GEORGIA Combining Statement of Changes in Fiduciary Assets and Liabilities - Continued Agency Funds December 31, 2010 Clerk of Court January 1, 2010 Additions Deductions December 31, 2010 Assets Cash and cash equivalents $ 4,958,063 $ 6,238,733 $ 5,046,979 $ 6,149,817 Total assets $ 4,958,063 $ 6,238,733 $ 5,046,979 $ 6,149,817 Liabilities Due to others $ 4,958,063 $ 6,238,733 $ 5,046,979 $ 6,149,817 Totalliabilities $ 4,958,063 $ 6,238,733 $ 5,046,979 $ 6,149,817 TOTAL ALL AGENCY FUNDS: Assets Cash and cash equivalents $ 9,41'7,343 $ 99,930,277 $ 98,760,685 $ 10,586,935 Receivables (net of allowance for doubtful accounts) Taaces 21,639,055 162,192,669 162,556,885 21,274,839 Total assets $ 31,056,398 $ 262,122,946 $ 261,317,570 $ 31,861,774 Liabilities Due to others $ 9,417,343 $ 99,930,2�7 $ 98,760,685 $ 10,586,935 Uncollected taxes 21,639,055 162,192,669 162,556,885 21,274,839 Totalliabilities $ 31,056,398 $ 262,122,946 $ 261,317,570 $ 31,861,774 163 ' . � � ` �' REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS Augusta-Richmond County Commission Augusta, Geargia We ha�e audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Augusta, Georgia as of December 31, 2010 and for the year then ended, which collectively comprise Augusta, Georgia's basic financial statements and have issued our report thereon dated September 6, 2011. 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. We did not audit the financial statements of the Augusta-Richmond County Department of Health, Auugsta-Richmond County Coliseum Authority or Downtown Development Authority, which represent three of the discretely presented component units. Those financial statements were audited by other auditors whose reports thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Department of Health, Coliseum Authority and Downtown Development Authority, is based solely on the reports of the other auditors. Internal Control over Financial Reporting In planning and performing our audit, we considered Augusta, Georgia's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not far the purpose of expressing an opinion on the effectiveness of Augusta, Georgia's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Augusta, Geargia's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. A deficiency in internal control exists when the design ar operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs to be material weaknesses, as described in 10-FS-01. C-3 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompany schedule of findings and questioned costs to be significant deficiencies, as described in 10-FS-02 and 10-FS-03. Compliance and Other Matters As part of obtaining reasonable assurance about whether Augusta, Georgia's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of 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 or other matters that are required to be reported under Government Auditing Standards. Augusta, Georgia's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit Augusta, Georgia's response and, accordingly, we express no opinion on it. We noted certain matters that we reported to management of Augusta, Georgia, in a separate letter dated September 6, 2011. � This report is intended solely for the information and use of the audit committee, management, others within Augusta, Georgia, 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. �-��,G2� �G�:� � ����� L:`�-� � Augusta, Georgia September 6, 2011 C-4 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards Year Ended December 31, 2010 Federal Grantor/ Federal Pass-through Grantor/ CFDA Agency or Pass-through Federal Program Title Number ARRA Number Expenditures U.S._D_epartment of Housine and Urban Deveioament CDBG Entitlement Grants Cluster <Direct Programs> Community Development Block Grants/Entitlement Grants 14.218 $ 3,369,114 Community Development Block Grants ARRA Entitlement Grants 14.253 ARRA 538,767 Total CDBG Entitlement Grants Cluster 3,907,881 Other Department of Housing and Urban Development Programs: <Direct Programs> Emergency Shelter Grants Program 14.231 61,152 Supporting Housing Program 14.235 95,604 Home Investment Partnerships Program ]4.239 1,319,634 Housing Opportunities for Persons with AIDS 14.241 363,066 Homelessness Prevention and Rapid Re-Housing Program ARRA Grants 14.257 ARRA 477,121 Total Other Department of Housing and Urban Development Programs 2,316,577 Total U.S. Department of Housing and Urban Development 6,224,458 U.S. National Park Service. Department of Interior <Pass Through From Georgia Department of Natural Resources> Historic Preservation Fund Grants-in-Aid: Historic Preservation Fund Historical Survey Harrisburg/West End 15.904 13-08-21715 8,208 Preserve America-Web Based Downtown Augusta Walking Tour 15.904 4.6E+07 10,000 Total CFDA# 15.904 18,208 Total U.S. National Park Service, Department of Interior 18,208 U.S. Deaartment of Justice Justice Assistance Grant Cluster <Direct Programs> Edward Byrne Memorial Justice Assistance Grant Program 16.738 111,875 See notes to Schedule of Expenditures of Federal Awards C-5 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards - continued Year Ended December 31, 2010 Federal Grantor/ Federal Pass-through Grantor/ CFDA Agency or Pass-through Federal Program Title Number ARRA Number Expenditures <Pass-through from the Criminal Justice Coordinating Council> Edward Byrne Memarial Justice Assistance Grant Program / ARRA Grants to States and Territories: CrimeNictim Assistance Grants DA 16.803 2009-SU-B9-0003/B82-8-001 25,249 Crime/Victim Assistance Grants DA 16.803 2009-SU-B9-0003882-8-261 9,242 Augusta JGVeteran's Treatment Court 16.803 2009-SU-B9-0003882-8-260 8,007 Augusta JC Magistrate Court 16.803 2009-SU-B9-0003882-8-262 7,500 Augusta JC Jail Clearing Initiative 16.803 2009-SU-B9-0003882-8-263 20,381 Augusta JC Warrant Project 16.803 2009-SU-B9-0003882-8-264 23,494 Total CFDA# 16.803 93,873 Edward Byrne Memorial Justice Assistance Grant Program / ARRA Grants to Units of Local Government 16.804 ARRA 2009-SB-B9-2464 107,215 Total Justice Assistance Grant Cluster 312,963 Other Department of Justice Programs: <Direct Programs> Juvenile Accountability Incentive Block Grants 16.523 6,089 Public Safety Partnership and Community Policing Grants 16.710 18,404 <Pass-through from the Criminal Justice Coordinating Council> Gime/Victim Assistance Grants 16.575 2008-VA-GX-0045/C09-8-010 26,418 Crime/Victim Assistance Grants 16.575 2009-VA-GX-0045/C09-8-009 11,666 Crime/Victim Assistance Grants 16.575 2010-VA-GX-0073/C10-8-008 8,806 Total CFDA# 16.575 46,890 Edward Byrne Memorial Formula Grant Program 16.579 2008-DJ-BX-0011/B08-8-019 2,634 Edward Byrne Memorial Formula Grant Program 16.579 2009-DJ-BX-0077/B09-8-019 42,713 Total CFDA# 16.579 45,347 Total Other Department of Justice Programs 116,730 Total U.S. Department of Justice 429,693 U.S. Deoartment of Transportation Highway Planning and Construction Cluster <Pass-through from the Georgia Department of Transportation> Highway Planning and Construction Cluster: Walton Way/Laney Walker Resurfacing - ARRA 20.205 ARRA 0009609 898,260 Off-System Safety Project 20.205 CSSFT-0008-00(876) 165,690 James Brown Blvd Streetscape 20.205 9126 5,285 Total CFDA# 20.205 1,069,235 See notes to Schedule of Expenditures of Federal Awards C-6 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards - continued Year Ended December 31, 2010 Federal Grantor/ Federal Pass-through Grantor/ CFDA Agency or Pass-through Federal Program Title Number ARRA Number Expenditures <Pass Through Georgia Department of Natural Resources> Recreational Trails & Parking 20.219 NRT-OS(4) 8,500 Total Highway Planning and Construction Cluster 1,077,735 Federal Transit Cluster <Direct Programs> Federal Transit Formula Grants 20.507 1,182,882 Federal Transit Formula ARRA Grants 20.507 ARRA 2,329,394 Total CFDA# 20.507 3,512,276 Total Federal Transit Cluster 3,512,276 Other Department of Transportation Programs: <Direct Programs> Airport Improvement Program Grants 20.106 532,542 <Pass-through from the Georgia Department of Transportation> Formula Grants for Other than Urbanized Areas: Section 5311 Rural Transit Grant -ARRA 20.509 ARRA MTG00-0143-00-064 72,070 Section 5311 Rural Transit Grant -ARRA 20.509 ARRA GA-86-X001 109,569 Total CFDA# 20.509 181,639 Total Other Department of Transportation Programs 714,181 Total U.S. Department of Transportation 5,304,192 U.S. Deaartment of Ener¢v <Direct Programs> Energy Efficiency & Block Grant Program-ARRA 81.128 ARRA 864,574 Total U.S. Department of Energy 864,574 Federal Emer¢encv Mana$ement Aeencv <Pass-through from the State of Georgia Emergency Manangement Agency> Hazard Mitigation Grant 83.548 17PDMCO3012245 4,000 LEOP Grant EMA 83.562 ema-202-gr-5072 13,243 Total Federal Emergency Management Agency 17,243 U.S. Department of Health and Human Services See notes to Schedule of Expenditures of Federal Awards C-7 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards - continued Year Ended December 31, 2010 Federal Grantor/ Federal Pass-through Grantor/ CFDA Agency or Pass-through Federal Program Title Number ARRA Number Expenditures Aging Cluster <Pass-through from the CSRA Regional Development Center> Grants for Supportive Services and Senior Centers 93.044 09-08-1128 / 10-08-1128 26,684 Nutrition Services 93.045 N/A 236,433 Nutrition Services Incentive Program 93.053 N/A 95,186 Total Aging Cluster 358,303 Other Department of Health and Human Services Programs: <Pass-through from the CSRA Regional Development Center> Disaster Prevention and Health Promotion Services 93.043 09-08-1128 / 10-08-1128 2,530 Total Other Department of Health and Human Services Programs 2,530 Total U.S.Health and Human Services 360,833 U.S. Department of Homeland Securitv Homeland Security Cluster <Pass-through from the Georgia Emergency Management Agency> Law Enforcement Terrarism Prevention Program 97.067 2007-GE-T7-0054 80,246 Homeland Security Grant Program 97.067 2006-GE-T6-0066-0853 904 Homeland Security Grant Program 97.067 2006-GE-T6-0066-0869 1,061 K-9 Explosive Program 97.067 2008-GE-T8-0017 WS2289 12,800 K-9 Explosive Program 97.067 2008-G&T8-0017 WS2288 9,390 State Homeland Security Program 97.067 2008-GE-T8-0017 WS2249 152,723 OJP State Domestic Preparedness Equipment Program 97.067 2008-GE-T8-0017 WS2248 14,940 Total CFDA# 97.067 272,064 Total Homeland Security Cluster 272,064 Other Department of Homeland Security Programs: <Direct Programs> Law Enforcement Officer Reimbursement Agreement Program 97.090 HSTS02-08-H-SLR007 57,248 <Pass-through from the Georgia Emergency Management Agency> FY2009 Performance Partnership Award 97.042 P09-9-123 59,933 FY2010 Performance Partnership Award 97.042 OEM-10-123 59,933 Total CFDA# 97.042 119,866 GEMA - Georgia Search and Rescue 97.073 GA-2007-GE-T7-0054 315,903 See notes to Schedule of Expenditures of Federal Awards C-8 AUGUSTA, GEORGIA Schedule of Expenditures of Federal Awards - continued Year Ended December 31, 2010 Federal Grantor/ Federal Pass-through Grantor/ CFDA Agency or Pass-through Federal Program Title Number ARRA Number Expenditures Buffer Zone Protection Program 97.078 2007-BZ-T7-0035 129,693 Buffer Zone Protection Program 97.078 2009-BF-T9-0030 43,400 Total CFDA# 97.078 173,093 Total Other Department of Homeland Security Programs 666,110 Total U.S. Department of Homeland Security 938,174 Total Federal Expenditures $ 14,157,375 See notes to Schedule of Expenditures of Federal Awards C-9 AUGUSTA, GEORGIA Notes to the Schedule of Expenditures of Federal Awards Year Ended December 31, 2010 Note 1- Basis of presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Augusta, Georgia, (the "GovernmenY'), and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accardance with the requirements of OMB Circular A-133, 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 — Reporting entity The accompanying schedule of expenditures of federal awards includes the accounts of all Augusta and Richmond County operations. The Government uses the criteria for including organizations as component units within Augusta's reporting entity, as set forth in Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting Standards. Excluded from the accompanying schedule of federal awards is the Government's discretely presented component unit, Richmond County Department of Health. Separate financial statements may be obtained from the Richmond County Department of Health at 950 Laney Walker Blvd., Augusta, Georgia 30901. Note 3 - Non-cash awards Augusta, Georgia did not receive non-cash federal awards during the year ended December 31, 2010. G10 i ' � � � � REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PORGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Augusta-Richmond County Commission Augusta, Georgia Compliance We have audited Augusta, Georgia's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Augusta, Georgia's majar federal programs for the year ended December 31, 2010. Augusta, Georgia's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Augusta, Georgia's management. Our responsibility is to express an opinion on Augusta, Georgia's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Augusta, Georgia's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Augusta, Georgia's compliance with those requirements. In our opinion, Augusta, Georgia complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2010. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 10-02, 10-04, 10-05, 10-06, 10-07, and 10-08 Internal Control over Compliance Management of Augusta, Georgia is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Augusta, Georgia's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Augusta, Georgia's internal control over compliance. G11 Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies ar material weaknesses and therefare, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 10-01 to be a material weakness. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 10-03 to be a significant deficiency. Augusta, Georgia's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit Augusta, Georgia's responses and, accordingly, we express no opinion on the responses. This report is intended solely for the information and use of the audit committee, management, others within Augusta, Georgia, 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. �-���.,'r�,��� � ��'�, �.� P Augusta, Georgia September 6, 2011 C-12 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs For the Year Ended December 31, 2010 Section I. Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? T yes X no • Significant deficiency(ies) identified? X yes none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over majar federal programs: • Material weakness(es) identified? X yes no • Significant deficiency(ies) identified? X yes none reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 520(a) of Circular A-133 X yes _ no Identification of Maior Pro�rams CFDA Number Name of Federal Pro�r� U.S. Department of Housing and Urban Development 14.218, 14.253 Community Development Block Grant-Entitlement Grants Cluster U.S. Department of Housing and Urban Development 14.257 Homelessness Prevention and Rapid Re-housing Program G13 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section I. Summary of Auditor's Results - continued U.S. Department of Transportation 20.106 Airport Improvement Program U.S. Department of Transportation 20.205, 20.219 Highway Planning and Construction U.S. Department of Transportation 20.500, 20.507 Federal Transit Cluster U.S. Department of Ener�v 81.128 Energy Efficiency and Conservation Block Grant Program U.S. Department of Health and Human Services 93.044, 93.045, 93.053 Aging Cluster We used a threshold of $424,721 to distinguish between Type A and Type B programs. Augusta, Georgia did not qualify as a low-risk auditee. Section II. Findings in relation to the Audit of the Financial Statements Finding 10-FS-01 CONDITION: The Government did not prepare its financial statements for the year ended December 31, 2010 or its conversion entries related to converting the Fund Financial Statements to the Statement of Net Assets and Statement of Activities. The Government also did not reconcile certain balance sheet accounts during the year on a timely basis. During our audit procedures, significant adjustments were posted to the internal financial statements in order for the financial statements to be in accordance with Generally Accepted Accounting Principles ("GAAP"). Based upon the Government's request, we prepared the conversion entries to convert the Fund Financial Statements to the Statement of Net Assets and Statement of Activities, and other year-end adjustments and reclassifications. Also, during our audit procedures as accounts were reconciled to supporting documentation, we proposed adjustments to correct balance sheet accounts to the supporting schedules. CA USE: The Government does not have sufficient resources with the financial statement expertise which would allow the Government to internally prepare its conversion entries for the Fund Financial Statements to the Government-wide financial statements, in accordance with GAAP. Historically, due to the cost-benefit analysis made by management of internal control over financial reporting, the Government has engaged its auditor to assist in the conversion to GAAP basis and financial statement preparation. G14 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section II. Findings in relation to the Audit of the Financial Statements - continued The Government also has not had sufficient resources in the accounting and finance departments which would allow sufficient time to be spent on reconciling balance sheet accounts for all funds to the supporting documentation on a timely basis. RECOMMENDATION: We recommend that management consider the cost-benefit analysis of the preparation of its financial statements in accordance with GAAP. We also recommend that management continue the training and supervision of its finance and accounting staff in order to reconcile all balance sheet accounts to supporting documentation on a timely basis. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the findings. Management reviews the cost benefit of internal control over financial reporting and has determined the most prudent course of action is to engage the auditors to assist in the conversion to GAAP basis and financial statement preparation. Finding 10-FS-02 CRITERIA: A properly designed internal control structure includes proper approval of disbursements prior to incurring obligations. CONDITION: During our testing of internal controls, we noted two (2) purchase orders that were issued after the date of the related invoice indicating that a purchase was made without the proper approval through the procurement process of purchase orders. CAUSE: The procurement process was circumvented. Article 6, Sec. 1-10-42 of the Procurement policy states that no employee shall request a vendor deliver supplies except upon the issuance of a regular purchase order by a procurement agent. EFFECT: The Government became obligated to pay for supplies prior to disbursement being properly approved. RECOMMENDATION.� We recommend that the Government provide additional training to its employees on the requirements of the Procurement policy. We further recommend that the Government implement measures to monitor compliance and to ensure enforcement of the provisions of the Procurement policy. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.� Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. C-15 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section II. Findings in relation to the Audit of the Financial Statements - continued Finding 10-FS-03 CRITERIA: Proper internal control requires the preparation and review of reconciliations for balance sheet accounts and bank accounts. CONDITION: During our financial statement audit, we noted errars in the preparation and review of two balance sheet accounts resulting in adjusting journal entries. CA Z/SE.� For one cash account, an entry was posted after the account was reconciliation that resulted in the account being misstated. For the second cash account, the Individual preparing a check did not record this when it was written and it was not discovered during the reconciliation process due to the check not clear the bank until January 2011 EFFECT: Two journal entries were required during the course of the audit to adjust the balances of accounts properly. RECOMMENDATION.• We recommend management perform detailed reviews of all balance sheet account reconciliations after the trial balance has been finalized, and follow up timely for matters necessary for adjustments and record all checks as soon as they are written. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources Section IIL Federal Awards Findings and Questioned Costs Findin� 10-01 Federal Agency: Federal Programs: All federal and federal pass-through grants Compliance Requirement: Grants Management Type of finding: Material Deficiency CRITERIA OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires recipients of federal awards to maintain internal control over Federal programs that provides reasonable assurance that the recipient is managing Federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its Federal programs. CONDITION: During our audit procedures, we noted significant deficiencies in the design or operation of internal controls that resulted in noncompliance with laws and regulations having a direct and material effect on federal awards. C-16 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued QUESTIONED COSTS: N/A CONTEXT: The Government does not have sufficient resources devoted to the overall management of grants in order to properly centralize the information and ensure personnel involved with federal grants are aware of and trained on the related laws and regulations which have a direct and material effect on the award. EFFECTS Personnel involved in federal grants may not be aware of or be in compliance with federal laws concerning the management, spending, and reporting of the grants. As a result, all federal grants may be in jeopardy for future funding. RECOMMENDATIONS: The Government should strengthen its controls over the management of its federal awards. We recommend the Grant Administrator obtain and review all Government grant contracts and document for each grant all compliance requirements to which the Government must adhere, including any special tests and provisions. The Grant Administrator should then provide training and assistance to departments responsible for managing the grants and perform periodic monitoring to ensure the departments are managing the grant in accordance with applicable laws and regulations. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. Findin� 10-02 CFDA # 93.044, 93.045, 93.053 Federal Agency: U.S. Department of Health and Human Services Pass-through entity CSRA Regional Development Center Federal Programs: Aging Cluster Compliance Requirement: Allowable Costs Type of finding: Material Noncompliance CRITERIA: Title 45 CFR 92.20(2)(b)(1) sets standards for financial management systems. It requires that Grantees and Subgrantees maintain records which adequately identify the source and application of funds provided for financially-assisted activities. These records must contain information pertaining to grant or subgrant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. Allowable Costs and Cost Principles for the Aging Cluster are also covered by OMB Circular A-87. To be allowable under Federal awards, a cost must be allocable. A cost is allocable to a particular cost objective if the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefits received. OMB Circular A-87 also requires costs to be adequately documented. The Government did not maintain records to adequately identify the expenditures incurred related to the Health and Wellness grant program. G17 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued CONDITION: The Government's books are not maintained to track all expenditures related to the Wellness and Recreation Grant. The pass-through entity reimbursed the Government based upon the grant budget. Q UESTIONED COSTS: Could not be determined. Though the auditors believe sufficient expenditures were incurred to support the grant funds expended, these expenditures were not identified appropriately in the accounting records of the Government. CONTEX'T.• The Government was not consistent in recording eligible expenditures to the grant accounts set up to track the grant expenditures. EFFECTS.• Not maintaining proper support for grant expenditures and not maintaining adequate records to identify the spending of grant funds could result in questioned costs. RECOMMENDATIONS: We recommend the Government strengthen its controls over tracking grant expenditures allowable under the Recreation and Wellness grants. MANAGEMENT 'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. Findin� 10-03 CFDA # 93.044, 93.045, 93.053 Federal Agency: U.S. Department of Health and Human Services Pass-through entity CSRA Regional Development Center Federal Programs: Aging Cluster Compliance Requirement: Reporting Type of finding: Significant Deficiency CRITERIA: According to the contract between Augusta-Richmond County and the CSRA Regional Development Center (the "RDC"), the pass-through entity, the Government is to report monthly to the RDC the actual number of service units provided during that month for each eligible participant. CONDITION: In performing tests of the underlying data to verify that the data was accumulated and summarized in accordance with the required methodology, the Government could not adequately support the number of meals served to congregate and to home-bound participants of the Nutrition Program. QUESTIONED COSTS: Could not be determined. C-18 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued CONTEXT: Staff turnover and lack of maintaining orderly files account for much of the Government's problems related to supporting the number of ineals served to participants. Each Senior Center reconciles the number of meals received to the meals disbursed daily. The support, however, may be misfiled or lost or the information may be transferred to the monthly report in error. EFFECTS: Lack of supporting documentation indicating the participants receiving meals purchased with federal funding could result in meals served to ineligible participants or meals reported inaccurately. This would result in non-compliance with the grant reporting requirements and possibly questioned costs if the meals were given to ineligible participants. RECOMMENDATIONS: We recommend someone outside of the Senior Centers receive a copy of the daily sign-in sheets and driver's log and spot check for accuracy. This will also ensure the support is maintained. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.� Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. Findin� 10-04 CFDA # 20.205, 20.219 Federal Agency: U.S. Department of Transportation Federal Programs: Highway Planning and Construction Cluster Compliance Requirement: Davis Bacon Act Type of finding: Material Noncompliance CRITERIA: The requirements of the Da�is-Bacon Act are applicable to construction projects on highways functionally classified as arterials and collectors but not applicable to projects located on highways functionally classified as local roads or rural minor collectors. (23 U.S.C. 113) Non-federal entities shall include in their construction contracts subject to the Davis-Bacon Act a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the DOL regulations (29 CFR part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) CONDITION: Compliance with Davis-Bacon requirements was not monitored far certain construction projects funded with federal grants. One out of two contracts tested was not properly monitored. The Government is not ensuring receipt of certified payrolls, nor are they ensuring the prevailing wage rates are paid by the contractors. C-19 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued QUESTIONED COSTS: Could not be determined. Certified payrolls were not obtained from one construction contractor, as required to comply with the Davis-Bacon Act. As a result, it is not possible to determine whether the contractor and/ar subcontractors paid their employees at minimum levels set by the Davis-Bacon Act. CONTEXT: When testing for controls over and compliance with the Davis Bacon Act, the Government could not provide documentation supporting the contractors were paying the laborers the prevailing wage rates. For the few payroll certifications that could be located, Government personnel noted they did not review the documents to ensure compliance with Davis Bacon. EFFECTS: Failure to monitor payments to laborers can lead to non-compliance and potential questioned costs. RECOMMENDATIONS: We recommend the Government's Grant Administrator obtain and review all grant contracts and document for each grant all compliance requirements to which the Government must adhere, including any special tests and provisions. The Grant Administrator should then provide training and assistance to departments responsible for managing the grants and perform periodic monitoring to ensure the departments are managing the grant in accordance with applicable laws and regulations. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. Findin� 10-OS CFDA # 20.106 Federal Agency: U.S. Department of Transportation Federal Progams: Airport Improvements Program Compliance Requirement: Reporting Type of finding: Material Noncompliance CRITERIA: Recipients of federal funds have certain reporting requirements that must be met to ensure that use of the funds are monitared and properly reported at the federal level. According to the OMB A-133 Compliance Supplement, the Airport Improvements Program requires quarterly financial reports. CONDITION: The Government's Daniel Field Airport had two active Airport lmprovements Program grants during FY 2010. For one of these grants, which began November 2010, no quarterly report far the fourth quarter was submitted. For the other grant, which began in FY 2008, the Government had copies of unsigned reports for the first three quarters which were all dated November 10, 2010. It is unclear as to who prepared these reports. Per discussion with the sponsor, the unsigned reports were filed with the FAA. The reports are not the standard reports required by the Compliance Supplement. Though the disbursements reported on the reports agreed to the disbursements for the reporting period, other infarmation reported was inaccurate. C-20 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued QUESTIONED COSTS: N/A CONTEX7'� The Government did not have a grant manager familiar with the OMB Compliance Supplement and compliance requirements to oversee the Daniel Field Airport grants and ensure the required reports were filed accurately and timely. EFFECTS: A violation or failure to comply with Federal laws and regulations may result in the Federal agency withholding payments to the Government, withholding approval of further grants with the Government, and any other action deemed necessary to gain compliance. RECOMMENDATIONS: We recommend the Government's grant manager be involved in the compliance management of all the Government's grants that are managed by departments that do not have a financial directar. This would include Daniel Field Airport. The grants manager should maintain a copy of the grant application, award, and all applicable agency requirements. The grants manager should review and approve all financial reports. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. Findin� 10-06 CFDA # 20.507 Federal Agency: U.S. Department of Transportation Federal Programs: Federal Transit Cluster Compliance Requirement: Procurement Type of finding: Material Noncompliance CRITERIA: 2 CFR 215.40 — 215.48 sets forth the procurement standards that must be used by recipients expending federal funds. The code states that all procurement transactions must be conducted in a manner to provide, to the maYimum extent practical, open and free competition. Procurement recards and files for purchases in excess of the small purchase threshold ($25,000) shall include the following at a minimum: (a) Basis for contractor selection; (b) Justification for lack of competition when competitive bids or offers are not obtained; and (c) Basis for award cost or price. C-21 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued CONDITION: The Government's Procurement Policy states that when the procurement transaction involves the expenditure of State or Federal Assistance, the transaction shall be conducted in accordance with any applicable mandatory State or Federal laws and authorized regulations. According to the State of Georgia' Procurement Policy, all purchases in excess of $5,000 should be based on competitive bidding whenever possible, unless a Statewide contract exists for the purchase. The Government relies on the departments to ensure procurement policies are followed. The departments are required to maintain documentation supporting the basis for vendor selection. The Government received a Federal Transit Grant for the purchase of three new buses. The grant also included funds for the replacement of four engines on existing buses. Bids were solicited and a contract was entered into for the purchase of the three new buses. Prior to the construction of the buses, new federal regulations were to be implemented that would affect the types of engines placed in new buses. As such, at the direction of the FTA, the Government purchased the engines for the new buses and had them delivered directly to the bus manufacturer priar to the implementation date of the new requirements. An adjustment was made to the Purchase Order for the buses, which decreased the amount of the three buses by $84,000, the amount of the three engines, and a new Purchase Order was created far the amount of these engines. The engines, however, were applied to the old purchase order. When the buses were subsequently purchased, the purchase overspent the Purchase Order by $98,401, which was allowed, as it was less than 10% of the Purchase Order. When the Government purchased the replacement engines, they we charged to the amended Purchase Order that was specific to the purchase of the new engines for the new buses. As a result, proper procurement procedures were not followed. Neither bids nor sole source documentation were obtained for the replacement engines. QUESTIONED COSTS: $81,724 - the cost of the four replacement engines for which proper procurement procedures were not followed. CONTEXT.� From a sample of ten procurements, one procurement consisting of four separate transactions did not follow the Government's procurement policies. EFFECTS: A violation or failure to comply with Federal laws and regulations may result in the Federal agency withholding payments to the Government, withholding approval of further grants with the Government, and any other action deemed necessary to gain compliance. In addition, failure to implement adequate internal controls related to procurement could result in favoritism and cast doubts on the integrity and impartiality of the purchasing process. RECOMMENDATIONS: We recommend the Government ensure its personnel who are responsible for making procurement decisions are aware of and comply with all federal and state purchasing rules and regulations. We also recommend that the government strengthen controls over the overspending of purchase orders. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the GovernmenYs resources. C-22 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued Findin� 10-07 CFDA # 20.507 81.128 Federal Agency: U.S. Department of Transportation U.S. Department of Energy Federal Programs: Federal Transit Cluster Energy Efficiency and Conservation Block Grant Program Compliance Requirement: Reporting Type of finding: Material Noncompliance CRITERIA: The Recipient Reporting Data Model states that the amount to be reported as Total Federal Amount of ARRA Expenditures for reports prepared on an accrual basis should be the sum of cash disbursements for direct charges for property and services; the amount of indirect expense incurred; the value of in-kind contributions applied; and the net increase or decrease in the amounts owed by the recipient for (1) goods and other property received; (2) services performed by employees, contractors, subcontractors, Subawardees, and other payees; and (3) programs for which no current services or perfarmance are required. CONDITION: The Government included encumbrances, which have not yet been incurred, in the amounts reported pursuant to Section 1512 of the Recovery Act on the Recovery.gov website. For one Department of Energy grant, encumbrances in the amount of $4,750 were reported at 03/31/10 and $1,000,070 were reported at 12/31/10. For one Department of Transportation grant, encumbrances in the amount of $1,105,833.46 were reported at 06/30/10 and $38,107.07 were reported at 12/31/10. QUESTIDNED COSTS: None CONTEX7'.• The Government consistently reported obligated funds that were not incurred in their quarterly ARRA reporting. EFFECTS: A violation or failure to comply with Federal laws and regulations may result in the Federal agency withholding payments to the Government, withholding approval of further grants with the Government, and any other action deemed necessary to gain compliance. RECOMMENDATIONS.� We recommend the Government review the Recipient Reporting Data Model and include only the required information as specified. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. C-23 AUGUSTA, GEORGIA Schedule of Findings and Questioned Costs - Continued Year Ended December 31, 2010 Section III. Federal Awards Findings and Questioned Costs - continued Findin� 10-08 CFDA # 81.128 Federal Agency: U.S. Department of Energy Federal Programs: Energy Efficiency and Conservation Block Grant Program Compliance Requirement: Procurement Type of finding: NonMaterial Noncompliance CRITERIA: Section 1605 of ARRA prohibits the use of ARRA funds for a project for the construction, alteration, maintenance, or repair of a public building or work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States. ARRA provides for waiver of these requirements under specified circumstances. An award term is required in all ARRA-funded awards for construction, alteration, maintenance, or repair of a public building or public. CONDITION: The Government did not include in its application/proposal or award for the HVAC replacement the required award terms related to the Buy America requirement. The Government obtained documentation, as a result of the auditors' request, that the vendor complied with the Buy American provision. QUESTIONED COSTS: N/A CONTEXT: The Government was unaware of the Buy American provision that should be included in all procurement proposals and award contracts that are funded with American Recovery and Reinvestment funds. EFFECTS.• Non-compliance with the Buy American provision could result in questioned costs. RECOMMENDATIONS: We recommend the Government retain documentation that supports their compliance with the Buy American provisions. Such documentation could include: (1) language in contractual documents that obligates contractors or sub-recipients to comply with the Buy American provisions; (2) a documented certification from the applicable contractor, vendor, or manufacturer verifying that the product was manufactured domestically; and/or (3) other reasonable documentation demonstrating compliance with the Buy American provisions. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the GovernmenYs resources. C-24 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs Year Ended December 31, 2010 Finding 06-FS-01 (reueat finding) CONDITION: The Government did not prepare its financial statements for the year ended December 31, 2009, nor its conversion entries related to converting the Fund Financial Statements to the S,tatement of Net Assets and Statement of Activities. The Government also did not reconcile certain balance sheet accounts during the year on a timely basis. During our audit procedures, significant adjustments were posted to the internal financial statements in order for the financial statements to be in accordance with Generally Accepted Accounting Principles ("GAAP"). Based upon the Government's request, we prepared the conversion entries to convert the Fund Financial Statements to the Statement of Net Assets and Statement of Activities, and other year-end adjustments and reclassifications. Also, during our audit procedures as accounts were reconciled to supporting documentation, we proposed adjustments to correct balance sheet accounts to the supporting schedules. CA USE: The Government does not have sufficient resources with the financial statement expertise which would allow the Government to internally prepare its conversion entries for the Fund Financial Statements to the Government-wide financial statements, in accordance with GAAP. Historically, due to the cost-benefit analysis made by management of internal control over financial reporting, the Government has engaged its auditor to assist in the conversion to GAAP basis and financial statement preparation. The Government also has not had sufficient resources in the accounting and finance departments which would allow sufficient time to be spent on reconciling balance sheet accounts for all funds to the supporting documentation on a timely basis. RECOMMENDATION.• We recommend that management consider the cost-benefit analysis of the preparation of its financial statements in accordance with GAAP. We also recommend that management continue the training and supervision of its finance and accounting staff in order to reconcile all balance sheet accounts to supporting documentation on a timely basis. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the findings. Management reviews the cost benefit of internal control over financial reporting and has determined the most prudent course of action is to engage the auditors to assist in the conversion to GAAP basis and financial statement preparation. CURRENT STATUS: The Government did not prepare its financial statements for the year ended December 31, 2010, nor its conversion entries related to converting the Fund Financial Statements to the Statement of Net Assets and Statement of Activities; repeat finding this fiscal year. See current year finding 10-FS-01. Finding 07-FS-Ol CONDITION: During our testing of compliance with procurement policies, we noted instances of non-compliance with procurement policies. We noted instances of inconsistent knowledge of Government personnel regarding the policy for obtaining bids for procured items. We noted more than one instance of purchases made when a bid should have been obtained and was not at the department level. We noted instances of lack of documentation at the department level to support the bids obtained or sole sourced items. C-25 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 CA USE: Their policies and procedures that were distributed to the employees are inconsistent with the "working" policy. The policies and procedures are inconsistent with the Augusta-Richmond County Code ("Code"). There is no evidence that employees refer to the policies and procedures in order to consistently follow the procedures. The Government does not have sufficient resources devoted to monitoring compliance with the purchasing policy at the Procurement Department level. RECOMMENDATION.• We recommend that the Procurement Department make corrections to the Policies and Procedures manual in accordance with the Code as well as make the document consistent in words and in numbers. We also suggest continuing to educate Department Heads on the importance of obtaining bids for all items in accordance with the Procurement Policy as well as the need to retain supporting documentation or indicate on the PO the bids obtained. Furthermore, we suggest reviewing purchase orders in more detail prior to approving and sending all incomplete purchase orders back to the department without approval when they are in non-compliance of policies and procedures. We recommend bid files are kept up to date and that all purchases made on current and prior year bid contracts are reviewed to ensure the documentation is present and purchases made are allowable and supporting documentation is available. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. CURRENT STATtIS: We did not note a lack of documentation for sole source purchases or lack of retention/obtaining contracts from departmental agreements in 2010. Findin� 08-FS-01 CRITERIA: A properly designed internal control structure includes internal controls over compensation for hours works for hourly employees. CONDITION: During our testing of payroll transactions, we noted errors in the recording of hours worked resulted in the overpayment of one (1) individual. CA USE.• Time cards are transferred to a timesheet to be entered into the payroll system and, in most cases, ihis is performed at the department level. An employee changed from eighty (80) standard hours to seventy-five (75) standard hours per a bi-weekly pay period. During our review, we noted an employee at the department level added an additional five (5) hours of work per pay period for approximately four (4) years to increase the total hours paid to eighty (80). EFFECT: Consequently, the individual was consistently overpaid for a period of approximately four (4) years. C-26 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 RECOMMENDATION.� We recommend individuals at the department level consult with the Human Resources function or the Payroll department when making the same change on an employee timesheet on a weekly basis as the need for a change may be an indication of a change in standard hours. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.� Management concurs with the finding. Through the normal course of operation there are occurrences where an employee has a seventy-five (75) hour bi-weekly pay period but normally works eighty (80) hours. The additional five hours are paid at a normal pay rate not at an overtime rate. Procedures are being developed and implemented to review the number of times this happens for any individual employee and to alert management if this is a consistent event. CURRENT STATUS.• This has been corrected for fiscal year 2010. Findin� 08-FS-03 (Repeat Finding) CRITERIA: A properly designed internal control structure includes proper approval of disbursements prior to incurring obligations. CONDITION: During our testing of internal controls, we noted one (1) purchase arder that was issued after the date of the related invoice indicating that a purchase was made without the proper approval through the procurement process of purchase orders. CA tISE: The procurement process was circumvented. Article 6, Sec. 1-10-42 of the Procurement policy states that no employee shall request a vendor deliver supplies except upon the issuance of a regular purchase order by a procurement agent. EFFECT: The Government became obligated to pay for supplies prior to disbursement being properly approved. RECOMMENDATION.• We recommend that the Government provide additional training to its employees on the requirements of the Procurement policy. We further recommend that the Government implement measures to monitor compliance and to ensure enfarcement of the provisions of the Procurement policy. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. CURRENT STATtIS.� We noted one (1) purchase that occurred without the creation of a purchase arder for fiscal year 2010. Repeat finding. See current year finding 10-FS-02. G27 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 Finding 09-F5-01 CRITERIA: Proper internal control structure includes properly supported pay raises. CONDITION: During our testing of payroll transactions we examined the supporting human resources data for the pay rate changes noting documentation was not retained. CA Z/SE.� The human resources department entered pay rate changes without appropriate supporting documentation. We noted two employees that received increases with only the signed approval from the department head that require documentation in addition to approval as Augusta-Richmond County does not give merit raises. EFFECT: Approval for pay raises were not properly documented for two (2) employees in 2009 increasing the risk of unapproved pay raises. RECOMMENDATION.• We recommend the human resources department obtain proper support for all pay raise requests prior to making pay raise adjustments. MANAGEMENT'S RESPONSE AND CORRECTNE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. CURRENT STATUS: This has been correct in 2010. Finding 09-FS-02 (Reneat Findin�) CRITERIA: Proper internal control requires the preparation and review of reconciliations for balance sheet accounts and bank accounts. CONDITION: During our financial statement audit, we noted errors in the preparation and review of two balance sheet accounts resulting in adjusting journal entries. CA USE: Individuals preparing reconciliations are not performing reconciliations in a timely manner. Significant reconciling items were not identified and carrected in a timely manner. EFFECT: Multiple journal entries were required during the course of the audit to adjust the balances of accounts properly. RECOMMENDATION: We recommend management perform detailed reviews of all balance sheet account reconciliations, and follow up timely for matters necessary for adjustments. C-28 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources CURRENT STATUS: We noted two bank accounts that had errars that had to be corrected for 2010. Repeat finding. See current year finding 10-FS-03. , FindinE 09-F5-03 CRITERIA: Proper financial statement reporting requires all completed capital projects to be capitalized in a timely manner. CONDITIDN: During our financial statement audit, we noted several complete SPLOST projects that were not capitalized in the capital asset system when placed into service as required by generally accepted accounting principles. CA t1SE: There is lack of timely review of the status of projects on the SPLOST report, as compared to the physical placement into service of the asset. EFFECT: A significant audit adjusting entry was required to properly capitalize the projects in the carrect budget year. RECOMMENDATION: We recommend management implement a detail review process that includes departmental communication to the City's Assistant Controller to ensure all completed capital projects are properly capitalized in the correct period. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the GovernmenYs resources CURRENT STATUS: This it has been correct in 2010. Findin� 07-02 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: CFDA # 14.218 Community Development Block Grant; CFDA #14.239 HOME Investment Partnerships Program; CFDA #14.241 Housing Opportunities for Persons with AIDS Compliance Requirement: Reporting Type of finding: Weakness in internal control (significant deficiency) and compliance (non- material noncompliance) C-29 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 CONDITION: The Government inaccurately prepared the "HUD 60002, Section 3 Summary Report, Economic Opportunities for Low and Very Low-Income Persons" for the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, and the Housing Opportunities for Persons with AIDS (HOPWA) Program for the year ended December 31, 2007. The Government did not have procedures in place to ensure amounts reported on the Section 3 Summary Report were complete and accurate. CRITERIA: The Government is required to submit an annual Section 3 Summary Report to report the number and amount of Construction and Non-construction contracts awarded on CDBG, HOME, and HOPWA projects, the number and amount of these contracts that were awarded to Section 3 businesses, and information regarding employment and other economic opportunities provided to low and very low income persons under Section 3 that resulted from these contracts. EFFECTS.� Inaccurate Section 3 Summary Reports were filed with the U.S. Housing and Urban Development Agency. QUESTIONED COSTS: None Staff is not trained on completing the Section 3 Summary Reports. There is also no effective internal control in place to ensure these performance reports are complete and accurate. RECOMMENDATIONS: We recommended the Government implement procedures to ensure information reported in the annual Section 3 Summary Report is complete and accurate. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN.• Management concurs with the finding. New procedures have been developed and implemented procedures requiring contract recipients to complete required reporting upon completion of projects. The submitted reports will be review and approved by management before submittal to the requiring authority. CURRENT STATUS.• No further action warranted Finding 09-04 Federal Agency: U.S. Department of Transportation Federal Programs: Airport Improvements Program Compliance Requirement: Activities Allowed/Matching Type of finding: Nonmaterial Noncompliance, Significant Deficiency CRITERIA Title 49 CFR 18.40 - Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments — states that Grantees must monitor grant supported activities to assure compliance with applicable Federal requirements and that performance goals are being achieved. Grantee monitoring must cover each program, function or activity. The Government did not monitor the Daniel Field Airport grants to ensure ineligible activities were not supported with federal funds. Lack of monitoring also resulted in matching requirements not being met. C-30 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 CONDITION: The Government did not have anyone designated to oversee the management of the Daniel Field Airport grants who was familiar with grant compliance requirements. A third-party consultant had to supply the Government's grant manager with relevant information pertaining to the grants, including grant award letters, reports, and matching worksheets. The grant included federal funds to support the lighting improvements on one airport runway at Daniel Field Airport. The contract for the lighting improvements included work related to a second runway not supported with federal funds. State funds were secured for this second runway project. The individual designated to draw down grant funds was not familiar with the activities allowed by the federal grant. As a result, the total amount of the vendor invoices for the lighting improvements for both runways were drawn from the federal agency instead of only the portion related to the federally funded runway. The person responsible for drawing the federal funds was also not familiar with the matching requirements of the federal grant. As a result, the total expenditures were drawn down, including the State and local cost share. QUESTIONED COSTS: Questioned costs were calculated as $30,702. These costs were computed as federal funds drawn for the portion of the runway lighting that was not funded with federal money, and the State and local matching amounts that were not deducted from the federal draw. CONTEXT: The Government did not have a grant manager familiar with the OMB Compliance Supplement and compliance requirements to oversee the Daniel Field Airport grants. EFFECTS: Possible effects are unallowable costs can be charged to the program, resulting in federal funds being drown down improperly. RECOMMENDATIONS: We recommend the Government's grant manager be involved in the compliance management of all the Government's grants that are managed by departments that do not have a financial director. This would include Daniel Field Airport. The grants manager should maintain a copy of the grant application, award, and all applicable agency requirements. The grants manager should review and approve all federal draw downs and financial reports. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. CURRENT STATUS Fully corrected. The Government refunded the questioned costs in FY 2010. Internal controls were strengthened to ensure draws were net of the Governments required match. FindinE 09-OS (Repeat Findin�) Federal Agency: U.S. Department of Transportation Federal Programs: Airport Improvements Program Compliance Requirement: Reporting Type of finding: Nonmaterial Noncompliance, Significant Deficiency C-31 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 CRITERIA: Recipients of federal funds have certain reporting requirements that must be met to ensure that use of the funds are monitored and properly reported at the federal level. According to the OMB A-133 Compliance Supplement, the Airport Improvements Program requires quarterly financial reports. The Government did not comply with this requirement. CONDITION: Required quarterly financial reports were not prepared or submitted to the Federal Aviation Administration during FY 2009 for activity at Daniel Field Airport. QUESTIONED COSTS: N/A CONTEXT: The Government did not have a grant manager familiar with the OMB Compliance Supplement and compliance requirements to oversee the Daniel Field Airport grants and ensure the required reports were filed accurately and timely. EFFECTS: A violation or failure to comply with Federal laws and regulations may result in the Federal agency withholding payments to the County, withholding approval of further grants with the County, and any other action deemed necessary to gain compliance. RECOMMENDATIONS: We recommend the Government's grant manager be involved in the compliance management of all the Government's grants that are managed by departments that do not have a financial director. This would include Daniel Field Airport. The grants manager should maintain a copy of the grant application, award, and all applicable agency requirements. The grants manager should review and approve all federal draw downs and financial reports. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding. New procedures and policies are being developed and implemented. Additional training for the staff has been developed and implemented on the importance of following the proper reporting procedures. CURRENT STATUS Repeat finding. See current year finding 10-05. Finding 09-06 (Repeat Findin�) Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Program Compliance Requirement: Procurement Type of finding: Nonmaterial Noncompliance, Material Weakness C-32 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 CRITERIA 2 CFR 215.40 — 215.48 sets forth the procurement standards that must be used by recipients expending federal funds. The code states that all procurement transactions must be conducted in a manner to provide, to the maximum extent practical, open and free competition. Procurement records and files for purchases in excess of the small purchase threshold ($25,000) shall include the following at a minimum: (a) Basis for contractor selection; (b) Justification for lack of competition when competitive bids or offers are not obtained; and (c) Basis for award cost or price. CONDITION: The Government did not have adequate internal control policies and procedures to ensure compliance with procurement requirements. The Government's Procurement Policy states that when the procurement transaction involves the expenditure of State or Federal Assistance, the transaction shall be conducted in accardance with any applicable mandatory State ar Federal laws and authorized regulations. According to the State of Georgia' Procurement Policy, all purchases in excess of $5,000 should be based on competitive bidding whenever possible, unless a Statewide contract exists for the purchase. The Government relies on the departments to ensure procurement policies are followed. The departments are required to maintain documentation supporting the basis for vendor selection. Our examination of equipment funded with the Federal Transit Autharity expenditures in the amount of $84,000 for three bus engines that were purchased under a State Contract. No State Contract, however, was made available for our review, nor were any documentation of bids provided. QUESTIONED COSTS: N/A CONTEXT: The Government relies on the departments for compliance with the procurement policy. Though the departments are trained on the policies and procedures, there is no review to ensure the individual departments are adhering to the policies. EFFECTS: The lack of support documenting the procurement process may result in purchases that may not have been priced competitively. RECOMMENDATIONS: We recommend the Government ensure its personnel who are responsible for making procurement decisions are aware of and comply with all federal and state purchasing rules and regulations. We also recommend that personnel in the Procurement Department ensure proper documentation is available to support the procurement of goods and services funded with federal and state money. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding and has already taken steps to implement the recommendations as practically possible within the Government's resources. CURRENT STATZIS Repeat finding. C-33 AUGUSTA, GEORGIA Summary Schedule of Prior Audit Findings and Questioned Costs - Continued Year Ended December 31, 2010 Findin� 09-07 Federal Agency: U.S. Department of Health and Human Services Pass-through entity CSRA Regional Development Center Federal Programs: Aging Cluster Compliance Requirement: Allowable Costs, Reporting Type of finding: Nonmaterial Noncompliance, Material Weakness CRITERIA: According to the contract between the Government and the CSRA Regional Development Center (the "RDC"), the pass-through entity, the Government is to report monthly to the RDC the actual number of service units provided during that month for each eligible participant. OMB — 87, Cost Principles for State, Local, and Tribal Governments, also requires that costs be properly supported. CONDITIDN: During the 2008 audit results, communicated in October 2009, weaknesses and questioned costs were identified, due to a lack of controls regarding documentation sufficient to meet compliance requirements. During the 2009 audit procedures, it was noted that management had implemented additional controls over compliance for this program, however for the 2009 financial statement year, the changes had not yet been implemented. Therefore the conditions noted in the 2008 audit and reported as Finding 08-06 existed for the 2009 year as well. QUESTIONED COSTS: Not determinable. CONTEX7'.• We selected a sample of ineals reported to the pass-through entity. Though we noted improvements related to maintaining sign-in sheets to support the participants receiving meals, we still noted sign-in sheets were not maintained for each month during FY 2009 to support 2009 expenditures. We also noted that participants receiving more than one meal do not indicate their receipt through signature. Thus, we could not test those meals as being given to eligible participants. For FY 2009, changes were not implemented until late in the year with regard to parricipants verifying their receipt of a meal. Discrepancies were still noted in November 2009. A new sign-in sheet was developed and started use in January 2010. EFFECTS: Lack of supporting documentation indicating the participants receiving meals purchased with federal funding could result in meals served to ineligible participants. This would result in non-compliance with the grant and questioned costs. RECOMMENDATIONS.• Management should continue to implement the changes which were implemented during early 2010. MANAGEMENT'S RESPONSE AND CORRECTIVE ACTION PLAN: Management concurs with the finding, and has already begun implementing recommendations. CURRENT STATUS.• Substantially corrected. C-34 r x � � ..... . , � . REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON THE SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX PERFORMED IN ACCCORANCE WITH GOVERNMENT A UDITING STANDARDS Augusta-Richmond County Commission Augusta, Georgia Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Augusta, Georgia's basic financial statements as a whole. The accompanying Schedule of Special One Percent Sales and Use Tax of Augusta, Georgia, as of and for the year ended December 31, 2010, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Special One Percent Sales and Use Tax of Augusta, Georgia is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied by us and the other auditors in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit the information is fairly stated in all material respects in relation to the financial statements as a whole. ��� �� � ���� ��� f Augusta, Georgia September 6, 2011 S-3 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX Notes to Schedule of Special One Percent Sales and Use Tax Year Ended December 31, 2010 Note 1- Summary of significant accounting policies The accounting policies of Augusta's Special One Percent Sales and Use Ta�c conform to accounting principles generally accepted in the United States of America as applicable to governments. These financial statements present only the activity of the Special One Percent Sales and Use Tax projects and are not intended to be a complete presentation of Augusta's assets, liabilities, revenues, and expenses. Basis df accountine The Special One Percent Sales and Use Tax projects are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. Estimates I The preparation of this Schedule requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results may differ from these estimates. S-4 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX YEAR ENDED DECEMBER 31, 2010 EsUmated Prior Current Percentage SPLOST Original Cost Current Cost Years' Year Total of Phase Projects Esdmate Estimate Cost Cost Cost Compleuon Phase III Sand Hills Park $ 50,000 $ 48,256 $ 48,256 $ - $ 48,286 100% Phase III Reynolds Park renovation 63,000 48,000 47,243 - 47,243 98� Phase III Tanglewood Park renovation 30,000 30,000 25,849 - 25,849 86% Phase III Wood Park 45,000 45,002 45,002 - 45,002 100 % Phase III Lake Olmstead Bike Trail 90,000 90,000 90,000 - 90,000 100% Phase III Radford Paric renovation 34,868 32,679 32,679 - 32,679 100% Phase III Katherine Street 145,178 152,855 153,855 - 153,855 101 % Phase III Georgia Regional 927 7 7 - 7 100% Phase VII Augusta Canal - hand rail 50,000 50,133 50,133 - 50,133 100%, Phase II Radio Control RR Switches - 100,000 100,000 - 100,000 100% Phase II Parham Rd Improvement - 7,334 7,361 - 7,367 100q Phase II Camp Angehele Road - 12,343 12,343 - 12,343 100% Phase II Corridor & Gateway Entrance - - - - - �� Phase III Suburban Forces Capital Equipment II 1,411,000 1,428,614 1,391,675 - 1,391,675 97% Phase III Butts Memorial Bridge repair 245,000 184,540 184,899 - 184,599 100% Phase III Phinizy swamp drainage improvement I 273,884 1,443 1,443 - 1,443 100% Phase III Alexander Drive culvert repair 36,870 34,219 34,219 - 34,219 100% Phase III Alexander Drive Culvert Repair II 18,500 18,570 18,597 - 18,597 100% Phase III Raes Creek Channelization IV 13,325 13,194 13,194 - 13,194 100q Phase III Traffic engineering improvement Phase 11 460,000 aso,57a a5a,ss0 - a5a,960 �Oi% Phase III Paving various roads 1,026,875 518,021 518,021 - 518,021 100% Phase III Paving Various Roads � - 829,506 562,299 - 562,299 68% Phase III Lovers Lane land Acquisition - 357,111 193,174 2,820 195,994 55q Phase III Resurfacing Hephzibah McBean Road � - 330,088 333,OS9 - 333,089 101 % Phase III Canal Authority 500,000 501,801 501,801 - 501,801 100% Phase III Arts Council 100,000 100,000 97,618 - 97,618 98% Phaselll ForeAugusta 100,000 100,000 100,000 - 700,000 100% Phase III HistoricAugusta 100,000 100,000 100,000 - 100,000 100% Phase III Museum 200,000 200,000 200,000 - 200,000 100% Phase III New Hope Community Center 100,000 - - - - �� Phase lll Imperial Theater 150,000 150,000 150,000 - 150,000 100% Phase III Augusta Mini Theater 150,000 879,174 879,174 - 879,174 100% Phase III 4-H Club Road 41,000 65,415 62,892 - 62,892 96q Phase III Riverwalk Playground 40,000 41,353 40,412 - 40,412 98% Phase IV 8ob Baurle Boat Landing 150,000 103,728 77,944 9,535 87,479 84% Phase IV May Park 120,000 130,022 124,773 - 124,773 96% Phase IV Old Government House 120,000 123,716 107,103 1,864 708,967 88% Phase III Sand Hills Park 1,080,000 1,199,464 1,195,646 - 1,195,646 100q Phase IV The Boathouse 90,000 105,866 104,471 66 104,537 99q Phase IV Elliot Park 400,000 418,785 403,898 - 403,898 96q . Phase IV Savannah Place Park 455,000 859,919 838,001 518 838,519 9S % Phase IV Augusta Soccer Complex 120,000 131,SSS 130,610 - 130,610 99 % Phase IV Diamond Lakes Regional Park 5,800,000 1,697,163 1,698,254 920 1,699,174 100� Phase IV McDuffie Woods Center 90,000 7,188 8,161 - 8,161 114% Phase IV Augusta Aquatics Center 180,000 187,263 184,783 - 184,783 99% Phase IV Augusta Golf Course (`1) 1,600,000 1,612,422 1,611,649 - 1,611,649 100% Phase IV Belle Tertace Park 120,000 51,529 50,479 - 50,479 9Sq Phase IV Blythe Recreation Center 120,000 124,157 110,685 - 110,685 89% Phase IV Brookfield Park 1,200,000 1,254,681 1,252,082 - 1,252,082 100% Phase IV Warren Road Center 120,000 147,228 131,499 - 131,499 S9% Phase IV McBean Community Center 1,020,000 1,161,469 1,161,467 - 1,161,467 700� Phase IV Transit (purchase buses) 250,000 385,336 77,681 - 77,681 20% Phase IV Additional funds required to build a newShelter 1,000,000 1,256,184 1,256,183 - 1,256,183 100% Phase IV Board of Health 2,000,000 2,000,000 2,000,000 - 2,000,000 100% PhaselV Materialsfornewfacilities 1,000,000 1,027,405 1,027,404 - 1,027,404 100q Phase IV JLEC (Re-roofing at 401 Walton Way) 395,500 399,982 112,207 - 112,207 28� Phase IV Phinizy Road Jail, JLEC and 911 282,500 202,034 796,410 - 196,410 97% Phase IV Records Retention Building Roof 107,400 110,546 110,547 - 110,547 700% Phase IV JLEC (Replace exterior (inish) 565,000 973,302 612,439 5,449 617,888 63q Phase IV Judicial/Courts Building 20,000,000 27,737,684 13,492,155 846,419 14,338,574 52% Phase IV Tree replacement 398,000 387,635 387,291 - 387,291 100% Phase IV Irrigation automation 102,000 124,343 8,960 10,244 19,204 15% Phase IV . Payoff existing leases 4,084,637 3,430,393 3,430,388 - 3,430,388 100% Phase IV Construction of Station N 7(Willis Foreman Road Area) 1,500,000 1,510,886 1,410,852 • 1,410,552 93% Phase IV Combine Station # land #19 (East Boundary 8 Broad Area) 1,521,000 1,635,180 1,633,737 - 1,633,737 100% Phase IV Consvuction of Station # 19 1,479,000 1,489,679 1,425,037 - 1,425,037 96% Phase VII Laney Walker Boulevard - 2,486,984 2,486,984 - 2,486,984 t00M, Phase VII Adjusting Roadway Structure V - 72,369 72,369 - 72,369 100% Phase II SR 121 @ Wndsor Spring Tra�c 85,800 28,399 28,399 - 28,399 100% Phase III ARC drainage improvements Phase I 116,750 94,260 94.260 - 94,260 100q Phase III ARC drainage improvements Phase II 53,100 50,729 50,729 - 50,729 100% Phase III SR 56 @ Goshen Road 88,000 362,718 362,718 - 362,718 100q Phase 111 Belair Road improvement 2,361,000 2,373,721 184,281 750,096 334,377 14% Phase III Berckman's Road 2,713,000 14,284 14,284 - 14,284 100% Phase III Courtneys Detention Pond Emer Rep 70,805 71,074 69,923 - 69,923 98 k Phase III Travis/ Plantation Road 2,361,000 368,255 183,366 - 183,366 50% Phase IV Counry Forces 3,672,500 4,435,959 3,903,339 201,943 4,105,282 93q Phase N Miscellaneous grading & drainage 4,650,000 3,514,221 2,756,889 425,830 3,182,719 83� Phase IV Resudacing County Forces 5,975,000 1,404,943 1,049,929 54,474 1,104,403 79% Phase IV Resurfacing 8,500,000 10,238,378 7,586,848 3,496,420 5,083,268 50% Phase IV Paving various dirt roads �,000,000 3,450,668 3,392,355 - 3,392,355 98% Phase IV Rail Road crossing improvement 750,000 825,258 101,238 - 101,238 12 % Phase 1V Area) 2,656,200 2,848,419 1,184,278 101,113 1,285,391 45� Phase IV Area) 7,469,OOQ 1,486,979 186,977 - 186,977 13% Phase IV East Boundary improvements 1,318,700 6,497,352 6,315,047 3,521 6,318,568 97% Phase IV Wheeler Road operational 433,600 52,674 52,674 - 52,674 100% Phase IV Wrights6oro Road Widening Phase I 3,143,700 3,201,850 427,829 88,707 516,536 16% Phase IV Washington Road intersection 849,800 1,546,517 1,234,704 87,309 1,322,013 85�0 Phase IV Hollywood S/D Area 2,640,800 325,163 325,160 - 325,160 t00�O Phase IV Telephone system upgrade 527,082 535,811 535,812 - 535,872 100% Phase IV GIS 474,400 482,274 475,060 - 475,060 99q Phase IV Document imaging system 416,518 425,586 425,588 • 425,588 100q Phase IV Springfield Village 200,000 200,000 81,284 - 81,284 41q Phase IV Dyess Park 60,000 65,882 65,�43 - 65,743 100 % Phase IV Newman Tennis Center 120,000 122,703 85,680 17,346 103,026 84 % Phase IV South Augusta Brench Library 1,625,000 5,926,028 5,713,015 - 5,713,015 96�0 Phase N Library-main branch 7,375,000 9,713,194 7,528,438 2,105,791 9,634,229 99% Phase IV Greene Street Property Purchase - 1,084,585 1,084,585 - 1,084,585 100% S-5 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Continued YEAR ENDED DECEMBER 31, 2010 Estimated Prior CuRent Percentage SPLOST Original Cost Current Cost Years' Year Total of Phase Projects Estlmate Esdmate Cost Cost Cost Completlon Phase IV Construttion otStation #8 1,500,000 1,500,$57 1,438,500 - 1,438,500 96% Phase IV Station 15 (Wrightsboro Road) 1,500,000 1,699,791 1,690,789 - 1,690,789 99% PhaselV Engines 3,484,000 3,454,544 3,454,540 - 3,454,540 100% Phase IV Aerials 1,300,000 1,312,973 1,311,971 - 1,311,971 100% Phase IV Construction of Station #12 (Heph Mcbean Area) 1,500,000 1,341,361 1,275,233 - 1,275,233 95q Phase IV Paving various dirt roads 1,000,000 920,725 346,883 - 346,883 38 % Phase IV East Boundary Street 8 drainage improvements 1,318,700 203,632 171,413 - 171,413 84�0 Phase IV Wrightsbom Road improvements 1,500,000 1,514,969 14,968 - 14,968 1% Phase IV Walton Way Extension / Davis Road 350,000 356,940 82,892 - 82,892 23 % Phase IV Windsor Spring Road Section IV 1,250,000 1,300,500 307,298 - 307,298 24� Phase IV Windsor Spring Rd Section V(SR88 Hepzibah - 1,257,484 7,484 - 7,484 1% Phase III Washington Road Sidewalk 276,000 1,311 1,311 - 1,311 100% Phase IV SL Sebastian Way/Greene SV 15th Street 3,457,800 13,581,620 13,391,541 198,954 13,590,495 100� Phase IV T�affic improvement 621,500 763,556 307,699 261,876 569,575 75� Phase N ANIC/Hopkins Street Improvements 2,000,000 1,330,363 906,908 154,431 1,061,339 80% Phase IV Windsor Spring Road Section IV (Willis Foreman to Tobacco Road) 678,000 767,825 765,556 2,060 767,616 100q Phase IV Ri(le Range Road @ Belair Road 62,200 5,981 5,981 - 5,957 100% Phase IV Lake Olmstead Park 425,000 456,222 456,221 - 456,221 100% Phase IV Bernie Ward - 106,111 95,267 - 95,267 90q Phase IV Fleming Tennis - 100,195 100,195 - 100,195 100Y Phase IV Meadowbrook Park - 90,899 91,633 - 91,633 101Y Phase IV Hepzibah Community Ctr - 84,361 57,020 2,129 59,149 70% Phase IV DDA - 856,709 682,098 75,037 757,135 88% Phase IV St Sebastian Way/Greene St - 675,543 543 - 543 Oq Phase IV Belair Hills Est Imp(W8S) - 112,603 112,605 - 112,605 100% Phase II Pinnacle Place Drg Imp - 688,025 688,026 - 688,026 100q Phase III SR 4/15th @cr 2207(Central Ave) - 117,434 28,557 3,676 32,233 27q Phase III Richmond Hill Rd Sidewalks - 117,645 117,645 - 117,645 100% Phase III Alexander Dr Emerqency Repair - 74,688 75,077 - 75,077 101% Phase III Powell Rd Culvert Replacement - 234,036 234,464 - 234,464 100% Phase III Point West Drainage - 1,023,399 868,790 47,502 916,292 90% Phase III Oates Creek Rehab Proj - 843,266 213,266 - 213,266 25 % Phase IV ARC Drainage - 1,185,200 1,185,200 - 7,185,200 100% Phase IV Resurfacing PH VIII - 1,088,851 1,088,852 - 1.088,852 100% Phase IV Lake Aumond Dam Improvements - 120,787 107,450 - 107,450 89% Phase IV Belair Hills Estate • 6,745,283 2,711,963 2,716,471 5,425,434 80% Phase IV Walton Way Extension/pavis Rd - 84,357 84,357 - 84,357 100% Phase IV Windsor Spring Rd Section V(SR88 Hepzibah - 844,559 795,222 18,099 813,321 96q Phase IV Apple Valley Park - 34,571 34,104 - 34,104 98q Phase IV Pension Property Purchase 1,272,514 1,272,514 - 1,272,514 100 % Phase IV Replacement ot Old Equipment - 577,908 577,605 2,301 579,906 100q Phase IV Remodel Stations 3,4,11,13,14 8 17 - 656,585 324,729 - 324,729 49% Phase I Pineview Drive - 136,416 136,416 - 136,416 100 % Phase II ARC Drainage Imp Phase I - - - - - 0% Phase II Walton Way Extension - 544,470 544,473 - 544,473 100% Phase II State Rd 121/US25 Windsor 886,258 212,244 - 212,244 24q � Phase III Wilkerson Garden - 409,037 254,332 144,191 398,523 97% Phase IV Remodel Station #4 - 171,629 111,629 - 111,629 100% Phase IV Remodel Station #6 - 1,405,386 1,360,818 - 1,360,818 97% Phase N Fire Training Center - 737,607 737,607 - 737,607 100% Phase II Traffic Signs Upgrade - 50,273 50,274 - 50,274 100% Phase I Flood Control Feasabiltiy Study - 20,796 20,796 - 20,796 100% Phase II Storm Pipe Replacement - 143,068 141,146 - 141,146 99% Phase II Warren Lake - Rock Creek - 13,243 13,243 - 13,243 100% Phase II Winchester Drainage Improvement - 441,261 220,453 - 220,453 50% Phase IV Laney Stadium - 3,521,074 3,521,074 - 3,521,074 100� Phase IV Augusta Museum of History - 1,134,430 1,123,368 - 1,123,368 99`Y Phase IV 13th Street Streetscape - 100,125 3,625 - 3,625 4% Phase IV Barten Plaza Lighting - 95,470 95,470 - 95,470 100� Phase IV Pension Property Cleanup - 2,490,068 2,490,062 - 2,490,062 100q Phase IV Remodel Station #3 - 258,128 238,175 - 238,175 92q Phase IV Willis Foreman Road Bridge Study - 101,942 92,834 8,432 101,266 99% Phase IV Willis Foreman Road Bridge 2,224,636 22,944 736,805 759,749 34q Phase N Remodel Station #11 - 153,666 106,435 - 106,435 69q Phase N Construction Station #10 - Land 728,491 491,946 236,545 728,491 100q Phase IV Training Tower and Burn Simulator - 1,754,149 1,438,886 112,964 7,551,850 88% Phase IV Renovation of Administrative Center - 2,418,309 2,174,448 75,609 2,190,057 91 % PhaselV PavingVariousRoads-PhaseX 1,047,876 19,211 198,982 278,193 21�0 Phase N Construction Station #10 1,253,864 11,106 107,014 118,120 9% Phase VI Albion Acres ' 142,534 142,534 142,534 - 142,534 100 % Phase VI Sth Street storm sewer improvements 154,250 70,584 70,584 - 70,584 100% Phase VI 3rd Level Canal cleaning 700,000 728,939 540,2D1 41,726 581,927 80% Phase VI Walton Way Reconstruction 600,000 600,000 600,000 - 600,000 100% Phase VI 15th St Utility Relocation 350,000 - - - - 0% Phase VI 9th Street Parking renovation 50,000 1,736 1,736 - 1,736 100q PhaseVl Laney-Walkerreconstruction 96,600 180,600 146,923 - 146,923 Stq Phase VI Rae's Creek 440,000 1,163,167 989,578 - 989,578 85% Phase VI Eisenhower Emergency Driveway - 41,754 14,346 - 14,346 34% Phase I Small Projects 181,230 181,230 181,230 - 181,230 700% Phase I Adjusting roadway structure 100,289 82,700 82,700 - 82,700 100% Phase I Phinizy Swamp drainage 163,998 58,617 58,617 - 58,617 100% Phase I Stevens Creek /Clausen Road 358,584 361,SSS 299,329 - 299,329 83% Phase I Jackson Road widening 105,776 108,776 108,776 - 108,776 100% Phase I Berckmans Road 1,793,000 9,441 9,441 - , 9,441 100 % Phase I 8elair Road Extension 666,005 741,074 741,074 - 741,074 100q Phase I Turpin Hill Rdwy. 1,102,076 1,020,879 1,020,879 - 1,020,879 100% Phase I Doug Bernard Parkway 2,170,763 1,874,524 1,874,524 - 1,874,524 100% Phase I Rocky Creek Tributary 130,832 132,038 63,706 • 63,706 48 % Phase I Hyde Park Drg 94,945 94,945 94,945 - 94,945 100% Phase I Belair Hills Estate 33,�00 33,700 33,700 - 33,700 100% Phase I Windsor Spnng Road, Section I 2,780,104 2,780,704 2,780,104 - 2,780,104 100� Phase I WindsorSpring Road, Section II 1,708,213 1,707,397 1,707,396 - 1,707,396 100% Phase I Windsor Spring Road OH-site 69,793 69,793 69,793 - 69,793 100% Phase I Tobacco Raod-Phase II 1,591,127 1,511,764 1,511,764 - 1,511,764 100q Phase I Barton Chapel Road, Phase I 1,488,591 963,324 992,624 - 992,624 103% Phase I Peppreidge Drive 4,150 4,150 4,150 - 4,150 100% Phase I Boykin Rd Drainage 62,500 62,500 62,500 - 62,500 100% Phase I Hephzibah-McBean/Brothersville 329,440 364,875 364,874 - 364,874 100% Phase II Small projects 417,978 239,172 239,162 - 239,162 100% S-6 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Contlnued YEAR ENDED DECEMBER 31, 2010 EsUmated Prior CurreM Percentage SPLOST Original Cost Current Cost Years' Year Total of Phase Projects Estlmate Esdmate Cost Cost Cost Completlon Phase II NPDES 504,705 515,992 515,378 - 515, 78 100�0 Phase II JLEC 2,000,000 1,886,471 1,809,182 - 1,809,182 96% Phase II Bobby Jones Expressway 284,286 237,618 237,618 - 237,618 100% Phase II Bobby Jones @SR 56 187,000 171,457 171,457 - 177,457 100% Phase II fury's Ferry Rd 126,500 - - - - 0% Phase II Jackson Road widening 2,537,671 2,315,812 2,318,812 - 2,318,812 100% Phase II PerimeterParkway Improvements 981,820 870,614 870,614 - 870,614 100% Phase II Wrightsboro Road Operational 251,000 210,210 210,210 - 210,210 100% Phase II Belair Road 555,851 88,600 88,600 - 88,600 100% Phase II Wheeler Road widening 1,576,000 1,015,885 974,456 - 974,456 96%, Phasell CaneCreekChannellmp 1p21,720 1,105,881 1,105,SSt - 1,105,881 100% Phase II Rae's CreekChannel Improvement 1,758,382 1,756,878 1,756,878 - 1,756,878 100% Phase II Olive Road realignment 134,796 134,796 7,996 - 7,996 6% Phase II North Leg Bridge Widening 22,000 - - - - �� Phase II Wheeless Road 819,500 819,500 566,348 - 566,348 69% Phase II Lakeside Drainage 323,447 265,389 265,389 - 265,389 100 % Phase II Hyde Park 1,716,000 1,048,444 1,048,444 - 1.048,444 700% Phase II Apple Valley drainage improvements 769,061 769,061 755,779 - 755,779 98q Phasell SR4/US1 16,500 12,413 12,413 - 12,413 100% Phase II Windsor Spring Road 1,055,386 919,146 919,146 - 919,146 100% Phase II Tobacco Road 3,046,858 2,736,545 2,736,545 - 2,736,545 100% Phase II Lock 8 Dam Road 404,522 364,826 364,826 - 364,826 100� Phase II Barton Chapel Rd, Phase 1 29,300 29,300 29,300 - 29,300 100% Phase II Barton Chapel Road, Phase II 2,036,000 2,769,553 2,769,553 - 2,769,553 100% � Phase II SR 10/US 223 Gordon Highway 84,500 74,893 74,893 - 74,893 100% Phase II Pepperidege Drive Intersection 172,177 156,358 156,358 - 156,358 100% Phase II SR 56 at Phinizy 399,425 342,695 342,695 - 342,695 100% Phase II Fall Line Freeway 77,000 - - - - 0 � Phase II Paving Various Rd., Phase V 1,200,000 725,423 725,423 - 725,423 100% Phase II Boykin Road Drg. 1,466,609 1,367,118 1,367,118 - 1,367,118 100% Phase II SR 56 @Old Waynesboro Rd 416,000 461,687 461,686 - 461,686 100% Phase II Willis Foreman Road Dc 350,100 440,304 440,302 - 440,302 100% � Phase II Sand Ridge Smrm 341,800 218,682 218,682 - 218,682 100q Phase II SR 56 Old Savannah Road 552,500 375,003 375,004 - 375,004 100% Phase III Kimberly Clark Industrial Park 2,215,000 2,215,633 350,210 - 350,210 16% Phase III Municipal Building 6,721,250 8,599,865 7,245,825 178,549 7,424,374 86% Phase III Library (South Richmond) 700,000 709,881 654,985 - 654,985 92% Phase III Board of Health 7,000,000 7,000,000 7,000,000 - 7,000,000 100N, Phase III Augusta Mini Theater 850,000 856,245 816,593 - 816,593 95% Phase III Lucy Crak Laney Museum 800,000 762,295 762,295 - 762,295 100% Phase III Georgia Golf Hall of Fame 4,000,000 4,000,000 4,000,000 - 4,000,000 100% Phase III Bethlehem Community Ctr 27,194 61,320 61,320 - 61,320 100% Phase III Administration 182,795 181,816 181,816 - 181,816 100q Phase III Warren Rd Renovation 373,249 373,249 373,249 - 373,249 100% Phase III Bennie Ward 110,000 109,508 109,508 - 709,508 100% � Phase III Riverfront Pavilion 655,648 655,561 655,561 - 655,561 100% Phase III May Park 525,000 522,779 522,779 - 522,779 100% Phaselll WestAugustaSoccerField 1,000,000 999,739 999,739 - 999,739 100% Phase III WT Johnson renovation 306,500 305,831 305,831 - 305,831 100% Phase III BelaidFlager Road renovations 112,650 112,602 N2,602 - 112,602 100% Phase III Dyess Park renovation 192,993 192,993 192,773 - 192,773 100% Phase III South Augusta Recreation Administrative Complex 7,550,000 7,552,419 7,552,419 - 7,552,419 100% Phaselll AquaticNatatorium 5,143,000 5,140,093 5,740,093 - 5,140,093 100q Phase III Golden Camp/Belle TERR 929,119 927,295 927,925 - 927,925 100 % Phase III Belle Terrace Renovation . 232,111 233,169 233,169 - 233,169 100� Phase III Elliott Park 100,000 100,089 99,911 - 99,911 100� Phase 111 Heath Pool 5,000 - - - - 0� Phase III Jones Pool 35,000 35,017 35,017 - 35,017 100% Phase III Doughty Park 50,000 50,479 50,479 - 50,479 100 % Phaselll EastviewPark 227,500 169,161 169,161 - 169,161 100% Phase III Hephizah/Carroll Park 175,358 175,185 175,185 - 175,785 700% Phase III Jamestown Park 112,566 112,566 112,566 - 112,566 100� Phase III McBean Park 140,000 140,949 139,735 - 139,735 99% Phaselll MinnickPark 55,000 53,849 53,849 - 53,849 700% Phase III Savannah Place 245,000 248,769 244,942 - 244,942 98 % Phase III Blythe Community Center 708,000 703,302 703,302 - 703,302 100% Phase III Chafee Park Gym renovation 124,889 14,374 14,374 - 14,374 100% Phase III Hillside Park renovation 50,000 47,400 . 45,594 - 45,894 97% Phase III Lock & Dam renovation 75,000 34,992 34,993 - 34,993 100 % Phase III Julian Smith renovation 742,207 742,182 742,182 - 742,182 100% , Phase III Fleming Building renovation 100,000 90,SS4 90,883 - 90,883 700q Phase III Gracewood Park renovation 152,076 152,242 202,373 - 202,373 133q Phase III Lake Olmstead Park 43,793 43,793 43,793 - 43,793 700% Phaselll FlemingAthleticComplex 133,850 133,170 133,770 - 133,170 100% Phase III ChesterAvenue renovation 151,500 151,500 147,926 - 747,926 98% Phase III Boykin Road Park 40,000 39,811 39,517 - 39,811 100q Phaselll EisenhowerParkGym 1,477,000 1,476,000 1,476,000 - 1,476,000 100% Phase VII Discovery Center Ent 353,137 352,954 352,954 - 352,954 100% Phase VII SC Sebastian Extension 1,368,969 7,651,504 1,647,366 - 1,647,366 100% PhaseVll 2ndStreetOutlall 762,760 1,546,089 1,546,089 - 1,546,089 100% Phase VII 6th Street handicap ramp 517,347 625,358 611,J66 - 611,966 98�0 PhaseVll TurknettSpringsDetention 225,161 337,300 306,132 - 306,132 91M Phase VII Augusta Commons 1,825,291 3,652,638 3,652,638 - 3,652,638 100% Phase VII Martin Luther King drainage 273,794 727 727 - 727 100% Phase VII Inter Ciry Arts - Imperial 300,000 300,000 225,000 - 225,000 75% Phase VII CSO 10,500,000 10,546,852 9,629,637 - 9,629,637 91% PhaseVll Wetlands 10,500,000 10,508,941 9,591,726 - 9,591,726 91% Phase VII Third Level Canal Cleaning 491,506 500,339 495,478 - 495,478 99% Phase VII Walton Way reconstruction 1,273,638 1,275,936 1,277,021 - 1,277,021 t00q Phase VII Augusta Canal 950,000 1,955,937 1,885,044 - 1,885,044 96� Phase VII Goodale Landing 124,030 101,706 101,706 - 101,706 t00q Phase VII Resurfacing various streets 3,406,729 214,225 214,225 - 214,225 100% Phase VII Resurfacing various sveets 1996 127,935 128,275 128,275 - 128,275 100% Phase VII Resurfacing Various Roads 756,500 519,928 519,928 - 519,928 100q Phase VII Street & drainage improvement 694,599 145,550 145,550 - 145,550 100% Phase VII Administration 2,774,251 2,779,256 2,376,389 - 2,376,389 86Y Phase VII East Augusta drainage 35,450 - - 0% Phase VII Jackson Road widening � 200,000 200,000 200,000 - 200,000 100% Phase VII Perimeter Parkway 25,000 9,458 9,458 - 9,458 100% S-7 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Continued YEAR ENDED DECEMBER 31, 2010 EsUmated Prior CurteM Percentage SPLOST Original Cost Curtent Cost Years' Year Total of Phase Projects Estimate Estimate Cost Cost Cost Completlon Phase VII Crane Creek 150,00 399 399 ---� 1�� Phase VII Belair Rd Ext 75,000 75,005 75,005 - 75,005 . 100% Phase VII Rae's Creek Channel Phase II 257,000 683 683 - 683 100% Phase VII Centennial Park Fountain 85,000 85,594 81,443 - 81,443 95 % Phase VII Paving various roads 50,000 50,090 133 - 133 0� PhaseVll Rae'sCreekTrunk/Sewer - 1,112,325 808,993 - 808,993 73% PhaseVll StreetDrainagelmprovement-EastAugusta - 963,516 154,669 160,265 314,934 33% Phase VII eerckman Road Sidewalk - 3,809 3,809 - 3,809 100� Phase VII 3rd Ave / Nellieville Guardrail - 27,320 24,420 - 24,420 89% Phase VII Floyd Creek Drainage Improvement - 10,180 � - - - o� Phase III Surburtan Forces Widening 150,000 150,570 1,580 - 1,580 1N Phaselll Suburbanforces 4,143,317 1,895,070 1,861,072 - 1,861,072 98� Phase III Suburban Forces 5,000,000 192,327 160,929 - 160,929 84q Phase III Resurfacing various roads Phase V 633,250 602,707 603,587 - 603,587 100% Phase III General Easement 50,000 50,858 14,853 75,546 30,399 60% Phase III Administration 5,720,000 5,902,501 5,930,993 - 5,930,993 100M, Phase III Administration 1,780,000 1,785,159 1,682,271 - 1,682,211 94q Phase III New Savannah Road 1,431,000 7,535 7,535 - 7,535 t00M Phase III Sidewalk Contract Phase II 296,000 354,116 354,116 - 354,716 100% Phase III Fury's Ferry Road 22,000 116 116 - 176 100q Phase III Alexander Drive 2,022,795 5,774,559 5,171,560 145,576 5,317,436 92� Phase III Washington Road Sidewalk III 200,000 348 348 - 348 100% Phase III Old Savannah Road/ Twigg Street 2,060,000 2,081,610 - 126,183 377,050 503,233 24% Phase III Stevens Creek/Claussen Road 1,421,250 1,127,009 1,127,009 - 1,1D,009 100�0 , Phase III Forest Park Subdivision drainage 815,348 698,269 698,269 - 698,269 100% Phase III Bobby Jones Expressway 165,000 440,983 27,146 - 27,146 6� Phase III Wrightsboro Road 1,984,000 2,038,835 1,215,868 776,093 1,391,961 68� Phase III Warren Road 1,271,000 3,213,799 2,604,674 42,624 2,647,298 82% Phase III Miscellaneous 155,425 157,013 157,073 - 157,013 100% Phase III Tanglewood 8 Kingston s/d drianage 797,500 695,996 695,996 - 695,996 100q Phase III Hillwood CresUWhitehead Drive 358,856 247,177 247,177 - 247,177 100% Phase III Skinner Mill Road Extension 1,517,311 1,519,459 1,519,459 - 1,519,459 100% Phase III Cook Road 8 Glendale 2,811,281 1,713,330 1,713,330 - 1,713,330 100% Phase III Sibley Road Railroad Crossing 129,950 130,444 685 - 685 1% Phase III Wylds Road Railroad Crossing 129,950 130,444 685 - 685 tq Phase III Windsor Spring Road 2,133,000 5,906,213 3,253,646 1,103,325 4,356,971 74% Phase III Old Savannah Road 961,000 1,171,425 100,275 - 100,275 9% Phase III Richmond Hill Road 1,028,500 784,660 784,660 - 784,660 100q Phase III Bobby Jones Expressway 110,000 36,618 36,618 - 36,618 100% Phase III Dunham Coun 127,000 97,178 97,178 - 97,178 100� Phase III Wheeles Road Bridge 13,200 73,250 13,231 - 13,231 100Y Phase III Traffc engineering improvements 111,000 91,657 91.657 - 91,657 100% Phase III SR 4/US 1 55,000 290 290 - 290 100� Phase III Marvin Gri(fin Road 1,375,600 3,451,415 249,550 38,668 288,218 8% Phase III Antler Drive West drainage improvements 377,000 244,932 245,290 - 245,290 100% Phase III Morgan Road 1,571,000 5,400,927 1,108,257 1,821.959 2,930,216 54� Phaselll Woodcrest/CSXDrainage 175,400 923 923 - 923 100% Phase III Deans Bridge @Tobacco 165,000 78,613 78,613 - 78,613 100 % Phase III Fall Line Freeway Section II 55,000 290 290 - 290 100% Phase III Paving various roatls Phase IV & V 269,209 270,627 270,627 - 270,627 100 % Phase III Paving various roads Phase VI 950,000 176,130 176,130 - 176,130 100% Phase III Willis Foreman Road 147,751 138,533 138,533 - 135,533 100M Phase III Birdwell Road Wetlands Bank 11,000 58 58 - 58 100 % Phase III McCombs Road Section I J90,884 712,838 712,838 - 712,838 100% Phase III McCombs Road Section II 961,665 �22,511 722,511 - 722,511 100% Phase III Library 1,700,000 1,701,742 1,701,649 - 1,701,649 100% Phase III Animal Control renovation 1,220,946 979,527 979,528 - 979.528 100� Phase III New administretive of(ices 2,350,000 2,377,325 1,028,937 • 1 A28,937 43% Phase III Shiloh Community Center 575,000 575,000 560,948 - 560,948 98% Phaselll SpringfieldBaptistChurch 1,300,000 1,D5,732 1,275,732 - 1,275,732 100% Phase 111 New Hope Community Ctr 250,000 250,000 250,000 - 250,000 100 % Phase III Beulah Grove 200,000 200,000 200,000 - 200,000 100% Phase III Hyde Park renovation 122,350 97,402 91,955 - 91,955 94% Phase III Central Park renovation 70,000 65,375 65,375 - 65,375 100% Phase III Bayvale Park renvoation 26,000 9,021 6,984 - 6,984 77% Phase III Heard Avenue Park renovation 6,000 3,883 3,883 - 3,883 100 % Phase III Troup St Pk Renovation 10,000 - - - - 0 � Phase III Hickman Park renovation 100,000 91,044 80,831 - 80,831 89 % Phase III McDuffie Woods Park renovation 150,000 145,330 148,330 - 148,330 100 % Phase III Meadowbrook Park renovation 45,000 47,554 47,216 - 47,216 99� � Phase III Julian Smith BBQ renovation 187,000 186,558 186,558 - 186,555 100�0 Phase III Blount Park renovation 19,000 2,600 2,600 - 2,600 100Y Phase III Augusta Canal Master 100,000 103,312 103,312 - 103,312 100% Phase III Big Oak Park renovation 65,000 65,230 47,118 - 47,118 72q Phase III Wood Street South Ball Field 47,000 47,234 44,858 - 44,858 95� Phase III Wood Lake Park renovation 100,000 100,834 95,963 - 98.963 98% Phase III Royal (Barrett) Park renovation 12,000 5,086 5,086 - 5,086 100% Phase III Garrett 500,000 500,000 500,000 - 500,000 100% Phaselll WestVinelandParkrenovation 20,000 20,119 20,119 - 20,119 100% Phase III Bedford Heighis 35,000 35,215 32,262 - 32,262 92q Phase III 4- H Camp Park renovation 20,000 18,630 17,478 - 17,478 93 % Phase VII Adjusting RdNVay Structure 200,000 62,498 62,498 - 62,498 100% Phase I International Boulevard Eztension 340,000 289,800 289,800 - 289,800 700% . Phase II Walton Way Extension 1,385,000 - - - - �q Phase II Skinner Mill Roatl CuWert Extension 153,100 11,876 11,876 - 11,876 100% Phase II Rocky Creek Hazard Mitigatio 717,860 62,064 62,064 - 62,064 100% Phase III Resurfacing various roads Phase VI � 1,350,000 1,123,739 1,123,739 - 1,123,739 t00q Phase III Suhurban Forces Capital Equipment 1,664,000 1,670,778 1,777,688 - 1,717.688 103� Phase III Railroad Street slope repair 289,500 33,459 33,459 - 33,459 t00q Phase III Wheeler Road Signal Plan Analysis 10,000 7,799 7,799 - 7,799 100% Phase III Gordon Highway median barrier 185,000 185,703 1,256 - 1,256 1% Phase III Mason Road Bndge @ Claudia 275,000 197,329 197,329 - 197,329 100q Phaselll BungalowRoad 776,000 3,964,567 2,994,291 31,820 3,026,111 76� Phase III Woodlake Subdivision 939,000 942,567 43,817 - 43,817 5� Phase III Pepperidge Point Retention Pond 50,000 32,667 32,677 - 32,677 100% Phase III Windsor Spring Rd Sec IV - 1,572,174 331,815 225,387 557,202 35 % Phase III Windsor Spring Rd Sec V - 1,565,032 457,344 58,002 575,346 33% Phase III Flood control feasibility 1,637,649 2,778,036 2,614,087 163,949 2,778,036 100% Phase V Judicial Center- County Court House 40,016,200 40,225,604 16,248,735 22,027,997 35,276,732 95q S-8 AUGUSTA, GEORGIA SCHEDULE OF SPECIAL ONE PERCENT SALES AND USE TAX - Contlnued YEAR ENDED DECEMBER 31, 2010 Estlmated Prior Current Percentage SPLOST Original Cost Current Cost Years' Year Total of Phase Projects Estlmate Estimate Cost Cost Cost Completion Phase V Webster Detention enter 36,00�,000 36,190,982 15,592,460 20,090,112 35,682,572 99q Phase V Exhibit Hall 20,000,000 20,085,160 933,520 8,958,251 9,891.771 49% Phase V SheriHAdministation Relocation 3,000,000 3,001,957 36,513 205,839 242,352 S% Phase V RCCI Renovations 750,000 752,893 64,507 304,335 368,842 49% Phase V Main Library 14,700,000 14,724,150 12,067,033 2,540,427 14,607,460 99� Phase V Augusta Canal Improvements 2,500,000 2,500,000 2,500,000 - 2,500,000 100% Phase V Augusta Canal Bond Repayment 8,200,555 8,200,555 8,200,555 - 8,200,555 100� Phase V Bond Debt Service 5,417,800 5,417,800 - - - �� Phase V Redundant Fiber Ring 1,000,000 1,000,280 - 29,409 29,409 3% PhaseV Di9italOthophotography 286,480 286,539 - 281,371 281,371 98% PhaseV Pictometry 773,520 114,398 - 113,313 113,313 99% Phase V Wireless Access Point 200,000 201,745 - 783,566 183,566 91% Phase V Disaster Recovery Plan 400,000 401,809 - 190,347 190,347 47M Phase V Flood Land Acquisition 500,000 500,000 - - • 0% Phase V Wrightsboro Road Project 4,000,000 3,500,000 - - - 0% PhaseV D'AntignacStreetFloodAVOidance 1,000,000 4,179,118 800,351 1,771,261 2,571,612 62q PhaseV Administration-Engineering 2,500,000 3,000,000 2,271,994 409,338 2,681,332 89% Phase V Marks Church Road Improvement 2,500,000 2,503,363 146,052 353,799 499,851 20q Phase V Fire Stations 8 Training Center 6,000,000 6,000,000 - - - �� Phase V Lake Olmstead Stadium � 360,000 400,000 399,927 - 399,927 100% Phase V Augusta Soccer Park 180,000 180,077 157,502 . 8,127 165,629 92% Phase V The Boat House 90,000 90,000 90,000 - 90,000 100% Phase V Apple Valley Park 315,000 315,000 283,994 - 283,994 90� Phase V WT Johnson Park 67,500 67,500 63,636 - 63,636 94q Phase V MM Scott Park 270,000 270,674 123,550 70,897 194,447 72% Phase V Diamond Lakes Park 720,000 785,020 780,204 2,120 782,324 100% Phase V Jamestown Park 135,000 198,989 184,369 13,569 197,938 99�0 Phase V Wood Park 270,000 270,000 270,946 - 270,946 100�0 Phase V Valley Park 22,500 22,500 9,032 - 9,032 40 % Phase V Goshen/Brown Road Park 135,000 135,000 - - - �� Phase V McDuffie Woods Park 90,000 90,018 51,515 1,923 53,438 59 % Phase V McBean Park 180,000 180,000 175,175 - 175,175 97% Phase V Pleming Tennis Center 112,500 112,598 101,090 10,347 111,437 99% Phase V Lock and Dam Park 49,500 49,528 45,573 2,915 48,488 98% Phase V May Park 67,500 67,500 67,500 - 67,500 100% Phase V HH Brigham Park 117,000 117,000 116,283 - 116,283 99 % Phase V Land Acquisition 180,000 166,390 129,931 26,250 156,181 94 % Phase V Dyess Park 63,000 63,007 26,386 762 27,148 43 % Phase V Brookfield Park 45,000 45,005 40,400 480 40,880 91% Phase V Lake Olmstead Park 207,000 207,000 200,888 • 200,SS8 97% Phase V Blythe Park 180,000 180,138 150,009 14,489 164,498 91M Phase V Newman Tennis Center 108,000 108,277 89,106 19,764 108,870 101� Phase V Meadowbrook Park 108,000 108,000 81,203 - 81,203 75Mo PhaseV Adminisiration-Recreation 500,000 651,000 475,246 157,423 632,669 97% Phase V Augusta Marina 67,500 67,500 67,103 - 67,103 99% Phase V Old Government House 45,000 45,000 40,700 - 40,700 90 % Phase V Doughry Park 27,000 27,093 � - 9,793 9,793 36% Phase V Fleming Park 67,500 67,514 61,394 1,488 62,882 93q Phase V Hickman Park 27,000 27,040 - 4,240 4,240 76q Phase V Aquatics Center 90,000 90,041 82,218 4,356 86,574 96% Phase V Boykin Road Park 27,000 27,000 - - - 0� PhaseV EisenhowerPark 45,000 45,106 16,717 11,165 27,882 62q � Phase V Warren Road Park 31,500 31,506 29,368 608 29,976 95% Phase V Imperial Theater 500,000 500,000 500,000 - 500,000 100% Phase V Augusta Mini Theater 500,000 500,000 500,000 - 500,000 100% Phase V Lucy Craft Laney Museum 200,000 200,000 109,043 13,144 122,187 61q Phase V The MACH Academy 100,000 100,000 100,001 - 100,001 100% Phase V Recreation, Historic, Cultural and Other Buildings 400,000 400,000 - - - 0% Phase V Augusta Museum 400,000 400,000 400,000 - 400,000 100% PhaseV CityofHephzibah 3,104,000 3,104,000 3,104,000 - 3,104,000 100�0 Phase V City of Blythe 972,000 912,000 972,000 - 912,000 100�0 Phase II Rock Creek / Warren Lake Restoration - 1,216,778 45,596 92,150 137,746 11M Phase III Dover-Lyman Project - 2,000,076 218 321 539 0% Phase IV Augusta Levee Certifiction - 1,009,874 832,503 90,448 922,951 91% Phase IV Rocky Creek Drainage Project - 3,627,900 - - - 0% Phase IV Broad Street Improvements@ Bus Terminal - 213,963 80 211,295 211,375 99% PhaselV TurknettSpringsDetention - 299,700 - 141,465 741,465 47% Phase IV Bus Barn - 3,397,219 1,713,818 1,072,818 2,786,636 82°/a Phase IV Industry Infrastructure - 803,358 85,534 19,475 105,009 13% Phase III Wrightsboro Road Adaptive Traf(ic Control - 129,120 - - - �� Phase III Washington Road Adaptive Traffice CoNrol - 50,990 - - - �`� Phase III Broad Street Sanitary Sewer - 118,000 - - - Q� Phase III Interstate Parkway Storm Drainage - 56,807 - 56,790 56,790 100�0 PhaselV BulterCreekPark - 86,204 - 86,204 86,204 100% Phase IV On Call Construction Services - 164,190 - 64,441 64,441 39q Phase IV Village West Storm Drainage - "413,144 - 409,381 409,381 99% Phase VI Sheriffs New Adminisiration Building 6,000,000 6,000,000 - 208,630 208,630 3% Phase VI Webster Detention Center- Phase IIA 2,000,000 2,000,000 - 14,548 14,548 1% Phase VI Boathouse Community Facility 300,000 300,000 - 18,155 15,158 6q Phase VI Lake Olmstead Casino 100,000 100,000 - 12,651 12,651 13% Phase VI Lake Olmstead BBQ Pit 50,000 50,000 - 18,373 15,373 37 % Phase VI Bulter Creek Park 40,000 40,000 - 13,465 13,465 34% Phase VI Baurle Boat Ramp 55,000 55,000 - - - 0% Phase VI Bush Field 8,500,000 8,500,000 - 151,690 151,690 2% Phase VI Daniel Field 2,000,000 2,000,000 - 168,954 168,954 8% Phase VI Golden Harvest Food Bank Building 250,000 250,000 - 250,000 250,000 100% Phase III Immaculate Conception 250,000 503,281 253,281 - 253,281 50% Phase II Delta Cost Sharing 144,267 288,534 144,267 - 144,267 50q Phase III NSC Discovery Center 1,500,000 1,500,000 1,500,000 - 1,500,000 100% Phase III P and 2 Handicap Access 26,250 26,250 26,250 - 26,250 100 % Phase II EastAugusta drainage - 1,147,379 1,147,379 - 1,147,379 100% Phase III Willow Creek 40,000 70 70 - 70 100q Phase II Council Drive 102,459 102,459 102,459 - 102,459 100% Phase II General Roadway 361,393 361,393 361,393 - 361,393 100q Phase II Trees and landscaping 96,000 55,477 55,476 - 55,476 100� Phase III Georgia Golf Hall of Fame 2,000,000 2,000,000 2,000,000 - 2,000,000 100 % Phase VII Laney Walker @ East B 15,000 34 34 34 100 % TOTAL S 516,688,629 S 597,372,573 S 384,178,387 E 78,188,784 S 462,345,171 S-9 Lena Bonner From: Donna Williams Sent: Tuesday, September 13, 2011 11:55 AM To: Geri Sams; Tameka Allen; Fred Russell Cc: Lena Bonner; Andrew G. Mackenzie Subject: RE: AUDIT REPORTS Attachments: 2010 Signed Financial Statements with Single Audit.pdf ��� �r�'s e�r� ����r�r�i� �cs�� �f ��� ��1� r���r� s�r�� �y � � d��r�� From: Donna Williams Sent: Monday, September 12, 2011 5:13 PM To: Geri Sams; Tameka Allen; Fred Russell Cc: Lena Bonner; Andrew G. Mackenzie Subject: RE: AUDIT REPORTS �ri, I'I� b� ����� fi� �r��i�� � �c��� �r�r ���a� r� T��sc�c��, �h� ��"��h� �r�r�t�d ��s���s ��d r��� ��r� c��l���r��, � �c�� �a��� �h� ��c� ���° us�a�� sca����r� �s tc� ���� c� �a��r� ���� ���r �c� th� �r�r�� sh�� tc� hc��� ���i�s �d� fc��° s�a . I�s I�ss ����r�si�r� �hc�r� h��in� ��[ �r�c�c��� a I�r�g� ��a ��r �� ��s�r�� ���i�s� �1r��ac�i� will b� �cai�� �h�t �grs� �hin� tc� �rr��. �'�I c��� i� �� �c�� �s st��� t�s �t c� �� �acs��, �'�I s�c�d ���9 a�c� �� �� �rr��. ��r�r�� From: Geri Sams Sent: Monday, September 12, 2011 5:01 PM To: Donna Williams; Tameka Allen; Fred Russell Cc: Lena Bonner; Andrew G. Mackenzie Subject: AUDIT REPORTS Donna, Per my request on Tuesday, September 6, 2011 after Commission Meeting concerning the 2010 Audit Report. I requested a copy of the report because the Procurement Department was not informed of any Departmental Findings. I had a meeting with Ms. Nancy Williams, who worked with the auditors and other staff inembers who also stated that they were unaware of any Procurement Findings. Please consider this to be my second request for the 2010 Audit Report. Per Commissioner Wayne Guilfoyle request today for the past three years of audit findings of the Procurement Department. Please send the report in PDF or the best possible way to address Procurement findings. 1 Please note - We are not a department that receive an audit report. However, I have requested copies. To assist the Administrator with the requested Work Session and to address Commissioner Guilfoyle's concerns, please consider this request under the Georgia Open Record Request — O.C.G.A. 50-18-70. Thanks C'.T�rl A. �aI11S, Director Procurement Department 530 Greene Street, Room 605 Augusta, GA 30901 (�o6)szi-za22 (706) 821-2811 Fax Thank You for poing Business with Us.... We cannat be 5 CCESSFUL without U! Please consider the environment before printing this email. This e-mail coi�tai�s r:c�r�fidential infarmation and is inte��n�i�:d e���ly for th� ii�divid�iai namcd. lf y�u ar�e nc�t th� r2�med �ddressee, yau shoulci not diss�rninate disfiribute r3r copy ihis e-matl. Pi��se notify the ser3der ire2�r�eciiat�ly by e-rr�ail iE yc�u have received tt�is e mail by mist�ke �r�d delete this e-mail from yaur system. The City c�f �Giqusta accepfs nc� li�bili�y f€}r tE��: <x�nient of this e-mail or for the cansequences of ar�y actions E�ken ori ihe basis of th� information provided. un€ess kh�t ir�f�rrrnatiai� is subsequentEy contir��ied in writir�g. A��y vi�ws or apii�ions prss�nted in fhis e-ma1 are soi�ly ttzosc� af thc aist��or and do r�af n�cess�rily represet�t thase of the City oP�uc�ust�r. F.mail tr�r�smissians canr7c�f ba g�r�ranf�ed to b� secure or r�rror-free as ii�forrn�tion cc���id b� ir�i�rc;epf�d. corr�apted, lost. destroyed, arrive €ate or ii�carnpl�fe or confain virus�:s. The serider thereiore does not accept liability fior any errt�rs ctr ornissic�r7s ia th� coi�tent of ftus message ��hiet� arise as � res�Elt esf fhe e-m�ii tr�nsmission, If verifir,�tic�n is r�quirad, please reqcz�st a hard co�y v�rsic�n. A�t�:10�.1 2