Report to the Board of Commissioners For the fiscal year ended June 30, 2019 November 18, 2019
AUDIT OPINION – P. 1-3 Habersham County’s Responsibilities The financial statements are the responsibility of Habersham County’s management. Rushton & Company’s Responsibilities As independent auditors for Habersham County, our responsibility is to express opinions on the fair presentation of the financial statements. Auditing Standards We audited the County’s financial statements in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Unmodified Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Habersham County, Georgia as of June 30, 2019, and the respective changes in net position and, where applicable, cash flows for the year then ended. 2
Government-wide Statements These statements provide the reader with information on the County as a whole, using the full accrual basis of accounting. Columns for the governmental activities, the business-type activities, and the component units. Two statements: Statement of Net Position – Pages 16 - 17 Presents the assets, liabilities, and residual net position of the County Statement of Activities – Page 18 Presents the results of operations of the County 3
Net Position – Last 5 Fiscal Years Net Investment Revenues Fiscal in Capital Restricted Unrestricted Total Over (Under) Year Assets Net Position Net Position Net Position Expenses 2015 $ 56,806,117 $ 4,683,131 $ 2,666,623 $ 64,155,871 $ 4,854,138 2016 61,718,644 5,631,360 1,424,225 68,774,229 5,095,057 2017 67,290,142 3,309,625 370,375 70,970,142 2,195,913 1 2018 68,970,336 3,050,910 3,520,784 75,542,030 4,571,888 2 2019 74,196,276 3,082,655 4,466,518 81,745,449 6,203,419 3 Transfer of property to IDA and decrease in airport grant revenue 1 2 Increase in airport grant revenue 3 Increase in tax revenues 4
General Fund – P. 87 Revenues Increased $2,566,827, 12.6% • Taxes increased $1,998,337 • Fines, fees and forfeitures increased $118,546 • Charges for services increased $123,647 • Intergovernmental revenue increased $319,707 Expenditures Increased $1,713,264, 8.5% • Sheriff Dept increased $404,948 • Jail Dept increased $433,157 • Fire Dept increased $465,276 Unrestricted Fund Balance (unassigned and assigned) FY2019, $5,303,040, 22.5% of expenditures & transfers (2.7 months). $1,123,067 of this total has been assigned for future years. FY2018, $5,179,863, 24.5% of expenditures & transfers (2.9 months). $1,192,932 of this total has been assigned for future years. County policy is to maintain a minimum of 17%. 5
General Fund Revenues and Expenditures – Last 5 Fiscal Years 6
General Fund Fund Balance– Last 5 Fiscal Years 7
Landfill Fund – P. 124 Operating Revenue Increased $241,460, 17.4% due to improved economy and increased construction. Operating Expenses Increased $468,684, 36.4% Cost of sales and services increased $345,942 (post-closure care costs increased $196,715) Personal services increased $55,594 Depreciation increased $67,148 8
Landfill Fund Operating Revenues and Expenses – Last 5 Fiscal Years 9
Airport Fund – P. 131 Operating Revenue Increased $25,287, 7.9% Operating Expenses Increased $14,789, 1.2% Cost of sales and services increased $15,154 10
Airport Fund Operating Revenues and Expenses – Last 4 Fiscal Years 11
Other Major Governmental Funds Summary Emergency Medical Services Fund Total revenues of $2,768,022, includes taxes, charges for services and intergovernmental Total expenditures of $2,816,595 SPLOST #6 Fund Total revenues of $12,385,410, includes $6,307,074 SPLOST and $6,043,315 Grants Total expenditures of $12,416,569, includes $6,372,783 of SPLOST and $6,043,315 grant funds (mainly airport grants) Hospital Debt Service Fund $2,654,124 in debt payments funded by property taxes and SPLOST Capital Improvements Fund $5,644,341 in capital expenditures Have 10 other nonmajor governmental funds 12
Report on Internal Control and Other Matters – P. 170-171 In accordance with Government Auditing Standards , we have issued our report on our consideration of Habersham County’s internal controls and our tests of compliance. This report describes the scope of our testing of internal control and compliance, and the results of that testing, but is not intended to provide an opinion on the internal control or compliance. No deficiencies or noncompliance were noted. 13
Report on Compliance and Internal Controls over Major Programs – P. 172-173 In accordance with the Uniform Guidance, we have issued our report on our consideration of Habersham County’s compliance with requirements applicable to each major program and on internal control over compliance. This report describes the scope of our testing of compliance requirements and internal controls over major programs, and the results of that testing. We are required to express an opinion on the County’s compliance with requirements; our opinion is unmodified. This report is not intended to provide an opinion on the internal control. No material weaknesses or significant deficiencies were noted in the internal controls of Habersham County over the compliance requirements applicable to the major programs. 14
Current and Future Reporting Changes GASB 87 The Governmental Accounting Standards Board (GASB) has issued Statement No. 87, Leases . Effective for Habersham County for fiscal year ending June 30, 2021. The statement establishes a single approach to accounting for and reporting leases for state and local governments. The statement requires governments to recognize certain lease assets and liabilities that previously were classified as operating leases. GASB 88 The Governmental Accounting Standards Board (GASB) has issued Statement No. 88, Certain Disclosures Related to Debt, Including Debt Borrowings and Direct Placements . This statement was implemented by Habersham County during fiscal year 2019. The Statement defines debt and increases disclosure in notes to financial statements of all state and local governments. 15
Current and Future Reporting Changes GASB 84 The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities . Effective for Habersham County for fiscal year ending June 30, 2020. This statement establishes criteria for identifying fiduciary activities of all state and local governments. 16
Chris Hollifield, CPA chollifield@rushtonandcompany.com www.RushtonandCompany.com 770.287.7800
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