Pittsylvania VA Audit Presentation 2023COUNTY OF PITTSYLVANIA,
VIRGINIA
AUDIT PRESENTATION
FOR THE YEAR ENDED JUNE 30, 2023
DECEMBER 19, 2023
CONTACT INFORMATION:
SCOTT WICKHAM, CPA, CFE
SWICKHAM@RFCA.COM
(540) 552-7322 (RFCA)
TABLE OF CONTENTS
1.Overview of audit results and brief explanation of financial statements
2.Reported Findings and Significant Recommendations
3.5-year trend information –Government Wide (Exhibit 1 full accrual basis)
4.5-year trend information –General Fund (Exhibit 5 modified accrual basis)
5.Review of County Reserves
6.Review of County Debt Balances
7.Significant Estimate –Virginia Retirement System Net Pension Liability
8.Upcoming Standards from GASB
OVERVIEW OF AUDIT RESULTS & EXPLANATION OF
FINANCIAL STATEMENTS
1.Independent Auditors’ Report –opinion on the financial statements; the County received an unmodified opinion
2.Management’s Discussion & Analysis –brief summary of the overall
financial picture prepared by the County staff; includes good comparative data
3.Exhibit 1 –Statement of Net Position –full accrual
4.Exhibit 3 –Balance Sheet –modified accrual
5.Exhibit 9 –Statement of Cash Flows
6.Other opinions
7.Schedule of Expenditures of Federal Awards –SEFA
8.Schedule of Findings & Questioned Costs
REPORTED FINDINGS AND SIGNIFICANT
RECOMMENDATIONS
1.Federal qualified opinion on Workforce Board subrecipient monitoring
2.No other findings/qualifications issued
3.Other recommendations provided in separate letter
5-YEAR TREND INFORMATION –GOVERNMENT WIDE
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2019 2020 2021 2022 2023 Growth Rate
Primary Government Total
Current Asset (excluding property tax receivable)38,727,038$ 54,428,794$ 69,926,647$ 84,903,629$ 87,512,009$
Property Tax Receivable 26,627,615 24,651,223 24,651,223 24,236,697 24,444,151
Non-Current Assets 97,130,026 94,813,200 128,846,150 126,665,264 125,259,227
Total Assets 162,484,679$ 173,893,217$ 223,424,020$ 235,805,590$ 237,215,387$ 9.92%
Deferred Outflows of Resources 5,705,749$ 7,283,153$ 10,232,987$ 9,079,698$ 7,220,420$
Current Liabilities 17,153,038$ 18,659,622$ 23,597,142$ 17,479,813$ 17,289,393$
Non-Current Liabilities 80,744,050 72,128,572 73,061,118 61,597,997 61,433,157
Total Liabilities 97,897,088$ 90,788,194$ 96,658,260$ 79,077,810$ 78,722,550$ -5.30%
Deferred Inflows of Resources 20,015,134$ 21,500,593$ 21,875,675$ 33,868,669$ 26,586,621$
Net Investment in Capital Assets 24,620,896$ 31,813,351$ 69,293,463$ 72,215,027$ 76,902,527$
Restricted 6,513,536 7,740,400 7,210,794 6,769,463 7,681,410
Unrestricted 19,143,774 29,333,832 38,618,815 52,954,319 54,542,699 29.92%
Total Net Position 50,278,206$ 68,887,583$ 115,123,072$ 131,938,809$ 139,126,636$ 28.98%
Current Ratio 2.26 2.92 2.96 4.86 5.06
Leverage Ratio 1.95 1.32 0.84 0.60 0.57
Expenses-County 75,918,447 67,098,124 82,373,471 86,254,430 92,254,868
Expenses-School Board 92,296,158 91,590,447 96,816,036 92,283,171 107,876,965
Continuing Service Ratio 11%18%22%30%27%
5-YEAR TREND INFORMATION –GENERAL FUND
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2019 2020 2021 2022 2023 Growth Rate
Revenues:
General property taxes 40,423,061$ 41,191,363$ 41,443,346$ 44,099,792$ 45,817,799$ 3.18%
Other local taxes 7,728,921 8,062,226 9,184,153 9,921,205 10,621,763
Permits, privilege fees, and regulatory licenses 138,128 212,697 279,987 388,772 425,635
Fines and forfeitures 190,695 133,108 132,512 93,732 85,290
Revenue from the use of money and property 368,727 421,115 316,142 272,376 1,034,037
Charges for services 310,882 277,254 959,881 1,682,626 1,725,667
Miscellaneous 522,031 1,159,821 676,390 703,222 881,145
Recovered costs 1,281,594 1,161,558 1,950,986 1,562,320 1,619,766
Intergovernmental revenues 20,961,404 22,850,057 29,175,046 35,804,541 26,037,092 5.57%
Total revenues 71,925,443 75,469,199 84,118,443 94,528,586 88,248,194 5.25%
5-YEAR TREND INFORMATION –GENERAL FUND
(CONT’D)
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2019 2020 2021 2022 2023 Growth Rate
Expenditures
General government administration 3,878,872 3,887,073 5,827,459 5,323,131 6,844,899 15.26%
Judicial administration 1,963,583 2,115,096 2,155,413 2,085,108 2,213,592 3.04%
Public safety 17,956,692 18,566,102 23,101,337 23,698,693 23,066,651 6.46%
Public works 1,085,493 1,114,173 2,427,115 963,036 1,028,869 -1.33%
Health and welfare 11,218,198 10,785,961 13,094,638 13,246,319 13,243,570 4.24%
Education 19,104,624 15,567,265 14,522,833 19,279,578 18,305,597 -1.06%
Parks, recreation, and cultural 1,975,372 2,053,465 1,970,591 2,031,832 2,278,719 3.64%
Community development 1,851,148 1,770,753 2,201,972 2,204,031 3,318,008 15.71%
Nondepartmental 11,121 35,031 61,283 10,301 14,049
Total operating expenditures 59,045,103 55,894,919 65,362,641 68,842,029 70,313,954 4.46%
Capital projects 1,010,825 1,549,326 1,142,694 4,377,326 1,286,413
Debt service:
Principal retirement 8,128,744 7,985,897 8,110,900 8,603,053 9,005,471
Interest and other fiscal charges 2,995,640 2,683,249 2,372,252 2,143,686 1,800,730
Total Debt Service 11,124,384 10,669,146 10,483,152 10,746,739 10,806,201 -0.72%
Total Expenditures 71,180,312 68,113,391 76,988,487 83,966,094 82,406,568 3.73%
52%
12%
0%0%
1%
2%
1%
2%
30%
General Fund Revenues for Fiscal
Year 2023
General property taxes
Other local taxes
Permits, privilege fees,
and regulatory licenses
Fines and forfeitures
Revenue from the use
of money and property
Charges for services
Miscellaneous
Recovered costs
Intergovernmental
revenues
47%
10%
0%
0%
0%
2%
1%
2%
38%
General Fund Revenues for Fiscal
Year 2022
General property taxes
Other local taxes
Permits, privilege fees, and
regulatory licenses
Fines and forfeitures
Revenue from the use of
money and property
Charges for services
Miscellaneous
Recovered costs
Intergovernmental
revenues
9%3%
28%
1%16%
23%
3%
4%
0%13%
General Fund Operating & Debt
Expenditures for Fiscal Year 2023
General government
administration
Judicial administration
Public safety
Public works
Health and welfare
Education
Parks, recreation, and
cultural
Community
development
Nondepartmental
Total Debt Service
7%
3%
30%
1%17%
24%
2%
3%0%13%
General Fund Operating & Debt
Expenditures for Fiscal Year 2022
General government
administration
Judicial administration
Public safety
Public works
Health and welfare
Education
Parks, recreation, and
cultural
Community
development
Nondepartmental
Total Debt Service
REVIEW OF COUNTY RESERVES
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2019 2020 2021 2022 2023 Growth Rate
Ending General Fund Balance 25,233,399$ 32,183,029$ 44,320,577$ 51,927,555$ 57,996,943$
Ending General Fund Cash Balance 22,454,453$ 34,954,361$ 49,884,262$ 53,260,264$ 59,111,816$
Total County operating expenditures (includes debt)70,169,487$ 66,564,065$ 75,845,793$ 79,588,768$ 81,120,155$
School Board operating expenditures 92,421,846 90,204,267 94,609,529 107,286,809 119,582,781 6.65%
Transfer to School Board shown in County
expenditures (19,094,304) (14,602,564) (13,847,624) (19,267,844) (18,253,987) -1.12%
Net Government Operating Expenditures 143,497,029$ 142,165,768$ 156,607,698$ 167,607,733$ 182,448,949$ 6.19%
Ending Fund Balance as a % of Operating Expenditures 17.58%22.64%28.30%30.98%31.79%
Ending Cash Balance as a % of Operating Expenditures 15.65%24.59%31.85%31.78%32.40%
Unassigned Fund Balance 20,427,416 26,177,140 28,642,621 34,344,071 36,292,488 15.45%
Ending Unassigned FB as a % of Operating Expenditures 14.24%18.41%18.29%20.49%19.89%8.72%
GFOA recommends a minimum unassigned fund balance of 2 months (or 16.67%) of general
operating expenditures as well as considering each local governments economics and
planning (www.gfoa.org/fund-balance-guidelines-general-fund).
REVIEW OF COUNTY DEBT BALANCES
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2019 2020 2021 2022 2023 Growth Rate
General Long-term Obligations
General Obligation Debt 56,785,157$ 51,136,112$ 45,236,205$ 39,068,461$ 32,614,742$ -12.94%
Deferred Items 3,554,063 2,637,114 1,996,937 2,086,694 1,458,380
Financed Purchases 8,835,120 7,912,215 10,563,815 8,200,730 7,022,332
Lease Revenue Notes 5,362,544 4,537,159 3,858,532 9,778,469 8,797,503
Net Pension Liability 5,168,026 8,219,431 13,909,984 3,603,523 7,998,979 11.54%
Other Long-term Obligations 8,439,230 7,912,401 8,110,902 9,983,903 13,803,561
County Long-term Obligations 88,144,140$ 82,354,432$ 83,676,375$ 72,721,780$ 71,695,497$ -5.03%
School Long-term Obligations
Net Pension Liability 65,056,964 71,456,346 78,431,218 40,108,819 48,873,041 -6.90%
Net OPEB Liabilities 18,331,829 18,587,007 17,009,542 15,843,127 15,773,863
Other Long-term Obligations 1,683,656 1,790,215 1,740,370 2,008,750 2,256,224
School Long-term Obligations 85,072,449$ 91,833,568$ 97,181,130$ 57,960,696$ 66,903,128$ -5.83%
Total Long-term Obligations 173,216,589$ 174,188,000$ 180,857,505$ 130,682,476$ 138,598,625$ -5.42%
Population (census or APA estimate)61,640 61,002 61,002 60,501 60,501
Debt per capita 2,810$ 2,855$ 2,965$ 2,160$ 2,291$
State Averages 3,991$ 4,222$ 4,501$ 3,766$ 3,766$
SIGNIFICANT ESTIMATE –VIRGINIA RETIREMENT
SYSTEM NET PENSION LIABILITY
Source: Audited financial statements of Pittsylvania County, VA for each respective year
(5.75%)(6.75%)(7.75%)
Virginia Retirement System Plan
County's net pension liability (asset)19,273,177$ 7,998,979$ (1,291,897)$
School Board's net pension liability
(asset) (Teachers Pool)87,290,993$ 48,873,041$ 17,592,380$
School Board's net pension liability
(asset) (Non-professional employees)1,569,472$ (213,720)$ (1,693,320)$
Discount Rate
The following table presents the net pension (asset) liability of the County and School Board using
discount rates utilized by each pension plan as well as what the net pension (asset) liability would be if
it were calculated using a discount rate that is one percentage point lower or one percentage point
higher than the current rate:
-The County and School Board will present a net pension asset or liability for the difference between investments held in trust and the present
value of projected pension benefits owed. Normally, the reported net pension asset or liability will be based on an actuarial valuation from the
prior fiscal year. (i.e. net pension assets and liabilities reported at June 30, 2022 were based on measurement at June 30, 2021).
-Contributions to pension plans after the valuation date, but before the end of the fiscal year are not reported as expenses, rather they are
reported as deferred outflows in the statement of net position (balance sheet).
-Investment earnings in any given year that exceed or fall short of each pension plan’s projected earnings rate (6.75% for VRS) are reported as
deferred inflows or outflows in the statement of net position (balance sheet) and amortized over future periods (currently 5 years).
-Changes in expected and actual experience and changes in proportion are reported as deferred inflows or outflows in the statement of net
position and amortized over future periods (currently 5 years).
UPCOMING STANDARDS FROM GASB
1.Statement No.99,Omnibus 2022,addresses (1)practice issues that havebeenidentifiedduringimplementationandapplicationofcertainGASBStatementsand(2)accounting and financial reporting for financial
guarantees.The effective dates differ based on the requirements of theStatement,ranging from April 2022 to for fiscal years beginning after
June 15,2023.
2.Statement No.100,Accounting Changes and Error Corrections –anamendmentofGASBStatementNo.62,provides more understandable,
reliable,relevant,consistent,and comparable information for making
decisions or assessing accountability for accounting change and errorcorrections.The requirements of this Statement are effective for fiscal
years beginning after June 15,2023.
3.Statement No.101,Compensated Absences,updates the recognitionandmeasurementguidanceforcompensatedabsences.It aligns the
recognition and measurement guidance under a unified model andamendscertainpreviouslyrequireddisclosures.The requirements of
this Statement are effective for fiscal years beginning after December
15,2023.
QUESTIONS?
We appreciate the opportunity to work with the
County and really appreciate the efforts of the County
staff to assist us during the audit.