Pittsylvania, VA Audit Presentation 2025COUNTY OF PITTSYLVANIA,
VIRGINIA
AUDIT PRESENTATION
FOR THE YEAR ENDED JUNE 30, 2025
DECEMBER 16, 2025
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.No material weaknesses or significant deficiencies reported
2.One federal finding related to untimely eligibility verifications at DSS for
Medicaid
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
2021 2022 2023 2024 2025 Growth Rate
Primary Government Total
Current Asset (excluding property tax receivable)69,926,647$ 84,903,629$ 87,512,009$ 101,784,049$ 99,443,670$
Property Tax Receivable 24,651,223 24,236,697 24,444,151 28,308,292 28,981,863
Non-Current Assets 128,846,150 126,665,264 125,259,227 123,746,901 94,823,010
Total Assets 223,424,020$ 235,805,590$ 237,215,387$ 253,839,242$ 223,248,543$ -0.02%
Deferred Outflows of Resources 10,232,987$ 9,079,698$ 7,220,420$ 6,374,754$ 6,437,641$
Current Liabilities 23,597,142$ 17,479,813$ 17,289,393$ 19,020,847$ 25,563,321$
Non-Current Liabilities 73,061,118 61,597,997 61,433,157 55,430,535 48,829,062
Total Liabilities 96,658,260$ 79,077,810$ 78,722,550$ 74,451,382$ 74,392,383$ -6.34%
Deferred Inflows of Resources 21,875,675$ 33,868,669$ 26,586,621$ 29,467,928$ 31,730,809$
Net Investment in Capital Assets 69,293,463$ 72,215,027$ 76,902,527$ 80,603,092$ 55,693,100$
Restricted 7,210,794 6,769,463 7,681,410 11,154,959 5,731,893
Unrestricted 38,618,815 52,954,319 54,542,699 64,536,635 62,137,999 12.63%
Total Net Position 115,123,072$ 131,938,809$ 139,126,636$ 156,294,686$ 123,562,992$ 1.78%
Current Ratio 2.96 4.86 5.06 5.35 3.89
Leverage Ratio 0.84 0.60 0.57 0.48 0.60
Expenses-County 82,373,471 86,254,430 92,254,868 93,222,438 93,222,438
Expenses-School Board 96,816,036 92,283,171 107,876,965 118,037,630 118,037,630
Continuing Service Ratio 22%30%27%31%29%
5-YEAR TREND INFORMATION – GENERAL FUND
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2021 2022 2023 2024 2025 Growth Rate
Revenues:
General property taxes 41,443,346$ 44,099,792$ 45,817,799$ 50,245,845$ 56,597,678$ 8.10%
Other local taxes 9,184,153 9,921,205 10,621,763 14,127,193 15,054,626
Permits, privilege fees, and regulatory licenses 279,987 388,772 425,635 482,013 538,400
Fines and forfeitures 132,512 93,732 85,290 73,677 84,019
Revenue from the use of money and property 316,142 272,376 1,034,037 2,193,919 2,884,240
Charges for services 959,881 1,682,626 1,725,667 1,763,016 2,043,466
Miscellaneous 676,390 703,222 881,145 791,886 1,272,837
Recovered costs 1,950,986 1,562,320 1,619,766 1,817,115 1,726,625
Intergovernmental revenues 29,175,046 35,804,541 26,037,092 27,572,220 29,747,400 0.49%
Total revenues 84,118,443 94,528,586 88,248,194 99,066,884 109,949,291 6.92%
5-YEAR TREND INFORMATION – GENERAL FUND
(CONT’D)
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2021 2022 2023 2024 2025 Growth Rate
Expenditures
General government administration 5,827,459 5,323,131 6,844,899 7,291,019 6,928,163 4.42%
Judicial administration 2,155,413 2,085,108 2,213,592 2,273,398 2,549,776 4.29%
Public safety 23,101,337 23,698,693 23,066,651 26,081,737 29,081,471 5.92%
Public works 2,427,115 963,036 1,028,869 1,225,606 1,136,544 -17.28%
Health and welfare 13,094,638 13,246,319 13,243,570 15,301,373 16,798,150 6.42%
Education 14,522,833 19,279,578 18,305,597 15,966,983 24,094,704 13.49%
Parks, recreation, and cultural 1,970,591 2,031,832 2,278,719 2,528,632 3,159,050 12.52%
Community development 2,201,972 2,204,031 3,318,008 2,115,361 3,002,527 8.06%
Nondepartmental 61,283 10,301 14,049 27,809 10,356
Total operating expenditures 65,362,641 68,842,029 70,313,954 72,811,918 86,760,741 7.34%
Capital projects 1,142,694 4,377,326 1,286,413 4,867,303 19,074,792
Debt service:
Principal retirement 8,110,900 8,603,053 9,005,471 8,304,181 8,597,768
Interest and other fiscal charges 2,372,252 2,143,686 1,800,730 1,539,450 1,219,183
Total Debt Service 10,483,152 10,746,739 10,806,201 9,843,631 9,816,951 -1.63%
Total Expenditures 76,988,487 83,966,094 82,406,568 87,522,852 115,652,484 10.71%
51%
14%
0%
0%
2%
2%
1%
2%
28%
General Fund Revenues for Fiscal
Year 2024
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
51%
14%
0%
0%
3%
2%
1%
2%
27%
General Fund Revenues for Fiscal
Year 2025
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%
32%
1%
18%
19%
3%
3%0%12%
General Fund Operating & Debt
Expenditures for Fiscal Year 2024
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%18%
25%
3%
3%0%
10%
General Fund Operating & Debt
Expenditures for Fiscal Year 2025
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
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).
Compounded
Annual
2021 2022 2023 2024 2025 Growth Rate
Ending General Fund Balance 44,320,577$ 51,927,555$ 57,996,943$ 70,049,191$ 65,167,096$
Ending General Fund Cash Balance 49,884,262$ 53,260,264$ 59,111,816$ 72,311,333$ 72,083,063$
Total County operating expenditures (includes debt)75,845,793$ 79,588,768$ 81,120,155$ 82,655,549$ 96,577,692$
School Board operating expenditures 94,609,529 107,286,809 119,582,781 133,154,863 125,943,969 7.41%
Transfer to School Board shown in County
expenditures (13,847,624) (19,267,844) (18,253,987) (15,313,064) (23,837,276) 14.54%
Net Government Operating Expenditures 156,607,698$ 167,607,733$ 182,448,949$ 200,497,348$ 198,684,385$ 6.13%
Ending Fund Balance as a % of Operating Expenditures 28.30%30.98%31.79%34.94%32.80%
Ending Cash Balance as a % of Operating Expenditures 31.85%31.78%32.40%36.07%36.28%
Unassigned Fund Balance 28,642,621 34,344,071 36,292,488 46,063,975 39,027,672 8.04%
Ending Unassigned FB as a % of Operating Expenditures 18.29%20.49%19.89%22.97%19.64%1.80%
REVIEW OF COUNTY DEBT BALANCES
Source: Audited financial statements of Pittsylvania County, VA for each respective year
Compounded
Annual
2021 2022 2023 2024 2025 Growth Rate
County Long-term Obligations
General Obligation Debt 45,236,205$ 39,068,461$ 32,614,742$ 27,342,293$ 23,200,113$ -15.37%
Deferred Items 1,996,937 2,086,694 1,458,380 391,496 558,732
Financed Purchases 10,563,815 8,200,730 7,022,332 5,547,197 4,528,639
Lease Revenue Notes 3,858,532 9,778,469 8,797,503 7,798,478 6,776,300
Net Pension Liability 13,909,984 3,603,523 7,998,979 7,921,668 6,907,140 -16.06%
Other Long-term Obligations 8,110,902 9,983,903 13,803,561 16,535,138 16,785,924
County Long-term Obligations 83,676,375$ 72,721,780$ 71,695,497$ 65,536,270$ 58,756,848$ -8.46%
School Long-term Obligations
Net Pension Liability 78,431,218 40,108,819 48,873,041 52,901,661 47,273,521 -11.89%
Net OPEB Liabilities 17,009,542 15,843,127 15,773,863 15,984,588 16,505,857
Other Long-term Obligations 1,740,370 2,008,750 2,256,224 2,183,444 11,906,248
School Long-term Obligations 97,181,130$ 57,960,696$ 66,903,128$ 71,069,693$ 75,685,626$ -6.06%
Total Long-term Obligations 180,857,505$ 130,682,476$ 138,598,625$ 136,605,963$ 134,442,474$ -7.15%
Population (census or APA estimate)61,002 60,501 60,501 60,501 60,501
Debt per capita 2,965$ 2,160$ 2,291$ 2,258$ 2,222$
State Averages 4,501$ 3,766$ 4,063$ 4,113$ 4,113$
SIGNIFICANT ESTIMATE – VIRGINIA RETIREMENT
SYSTEM NET PENSION LIABILITY
Source: Audited financial statements of Pittsylvania County, VA for each respective year
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, 2025 were based on measurement at June 30, 2024).
-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).
(5.75%)(6.75%)(7.75%)
Virginia Retirement System Plan
County's net pension liability (asset)18,828,013$ 6,907,139$ (376,343)$
School Board's net pension liability
(asset) (Teachers Pool)87,307,033$ 46,994,750$ 13,980,272$
School Board's net pension liability
(asset) (Non-professional employees)2,185,842$ 278,771$ (1,329,998)$
Discount Rate
UPCOMING STANDARDS FROM GASB
1.Statement No. 103, Financial Reporting Model Improvements, improves key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision
making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15,
2025.
2.Statement No. 104, Disclosure of Certain Capital Assets, requires certain types of assets (lease assets, subscription assets, intangible right-to-use
assets, and other intangible assets) to be disclosed separately in the
capital asset note disclosures by major class of underlying asset. It also requires additional disclosures for capital assets held for sale. The
requirements of this Statement are effective for fiscal years beginning after June 15, 2025.
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.