12-17-2019 Work Session Packet
BOARD OF SUPERVISORS
WORK SESSION
Tuesday, December 17, 2019 – 4:30 PM
Main Conference Room
County Administration Building, 1 Center Street
Chatham, Virginia 24531
AGENDA
1. CALL TO ORDER (4:30 PM)
2. ROLL CALL
3. AGENDA ITEMS TO BE ADDED
4. APPROVAL OF AGENDA
For the citizens’ convenience, all Work Session and Committee Meetings are now being
recorded and can be viewed on the same YouTube location as the Board of Supervisor’s
Business Meetings. Please remember that the Board’s Work Session is designed for
internal Board and County Staff communication, discussion, and work. It is not a
question and answer session with the audience. Accordingly, during the Work Session,
no questions or comments from the audience will be entertained. Respectfully, any
outbursts or disorderly conduct from the audience will not be tolerated and may result in
the offending person’s removal from the Work Session. As a reminder, all County
citizens, and other appropriate parties as designated by the Board’s Bylaws, are permitted
to make comments under the Hearing of the Citizens’ Section of tonight’s Business
Meeting.
5. PRESENTATIONS
a. 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Associates); (Staff Contact: Kimberly G. Van Der Hyde); (30 minutes)
b. VDOT Update (Presenter: Jay Craddock); (20 minutes)
6. STAFF, COMMITTEE, AND/OR CONSTITUTIONAL OFFICER REPORTS
a. Silver Creek No-Through Trucks Discussion (Supervisor Scearce); (15 minutes)
b. Sheriff Off-Duty Management Update (Staff Contact: Kimberly G. Van Der Hyde);
(20 minutes)
c. Broadband Survey Update (Staff Contact: R. Scott Budd); (15 minutes)
Work Session - December 17, 2019
d. Committee Reports (Legislative Committee); (Staff Contact: J. Vaden Hunt, Esq.); (5
minutes)
7. BUSINESS MEETING DISCUSSION ITEMS
8. ADJOURNMENT
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Associates); (Staff Contact: Kimberly G. Van Der Hyde); (30 minutes)
Staff Contact(s): Kimberly G. Van Der Hyde
Agenda Date: December 17, 2019 Item Number: 5.a
Attachment(s): Pittsylvania County FINAL Audit 2019 with Cover
Reviewed By:
Scott Wickham, CPA, CFE, with Robinson, Farmer, Cox & Associates, will present the Board
the County’s 2019 Financial Statement Report.
5.a
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Annual Financial Report
Fiscal Year Ended June 30, 2019
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Packet Pg. 4 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
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Packet Pg. 5 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
INTRODUCTORY SECTION
Page
List of Elected and Appointed Officials 1
FINANCIAL SECTION
Page
Independent Auditors' Report 2-4
Management's Discussion and Analysis 5-14
Basic Financial Statements:Exhibit Page
Government-wide Financial Statements:
115
216
Fund Financial Statements:
Balance Sheet - Governmental Funds 317
418
519
620
721
822
923
10 24
Notes to the Financial Statements 25-102
Required Supplementary Information:
General Fund 11 103
Special Revenue Fund - Industrial Development 12 104
Special Revenue Fund - Workforce Investment Act 13 105
OPEB Related Funding:
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios - Primary Government 14 106
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios - School Board 15 107
Notes to Required Supplementary Information - Health Insurance OPEB 16 108
Schedule of County's Share of Net OPEB Liability - Group Life Insurance Program 17 109
Schedule of Employer Contributions - County - Group Life Insurance Program 18 110
Schedule of School Board Teacher's Share of Net OPEB Liability - Group Life Insurance Program 19 111
Schedule of Employer Contributions - School Board Teacher's - Group Life Insurance Program 20 112
Schedule of School Board Nonprofessional's Share of Net OPEB Liability - Group Life Insurance Program 21 113
Schedule of Employer Contributions - School Board Nonprofessional - Group Life Insurance Program 22 114
Notes to Required Supplementary Information - Group Life Insurance Program 23 115
Schedule of Changes in the County's Net OPEB Liability and Related Ratios - Health Insurance Credit (HIC) 24 116
Schedule of Employer Contributions - County - Health Insurance Credit Program (HIC) 25 117
Schedule of Changes in the School Nonprofessional's Net OPEB Liability and Related Ratios - Health
26 118
Schedule of Employer Contributions - School Board Nonprofessional - Health Insurance Credit Program (HIC) 27 119
Notes to Required Supplementary Information
County and School Nonprofessional Health Insurance Credit Program (HIC) 28 120
Schedule of School Board's Share of Net OPEB Liability - Teacher Employee
Health Insurance Credit Program (HIC)29 121
Schedule of Employer Contributions - Teacher Health Insurance Credit Program (HIC) 30 122
Notes to Required Supplementary Information - Teacher Health Insurance Credit Program (HIC) 31 123
Pension Related Funding:
Schedule of Changes in Net Pension Liability and Related Ratios:
Primary Government 32 124
Component Unit - School Board (nonprofessional) 33 125
Schedule of Employer's Share of Net Pension Liability - VRS Teacher Retirement Plan 34 126
35 127
Notes to Required Supplementary Information 36 128
Funds to the Statement of Activities
Statement of Fiduciary Net Position - Fiduciary Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
Schedule of Employer Contributions
Statement of Net Position
Statement of Activities
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental
Statement of Net Position - Proprietary Fund
Statement of Cash Flows - Proprietary Fund
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
Insurance Credit Program (HIC)
COUNTY OF PITTSYLVANIA, VIRGINIA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
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FINANCIAL SECTION (continued)
Other Supplementary Information:Exhibit Page
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 37 129
Combining Statement of Revenues, Expenses, and Changes in Fund Balances - Nonmajor
Governmental Funds 38 130
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Nonmajor Special Revenue Fund 39 131
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Nonmajor Debt Service Reserve Fund 40 132
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Nonmajor Capital Projects Fund - School Capital Improvements Fund 41 133
Combining Statement of Net Position - Internal Service Funds 42 134
Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 43 135
Combining Statement of Cash Flows - Internal Service Funds 44 136
Combining Statement of Fiduciary Net Position - Fiduciary Funds 45 137
Combining Statement of Changes in Assets and Liabilities - Agency Funds 46 138
Discretely Presented Component Unit - School Board:
Balance Sheet 47 139
Statement of Revenues, Expenditures, and Changes in Fund Balances 48 140
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 49 141
Supporting Schedules:Schedule Page
Schedule of Revenues - Budget and Actual - Governmental Funds 1 142-147
Schedule of Expenditures - Budget and Actual - Governmental Funds 2 148-151
Other Statistical Information:Table Page
Government-wide Information:
Government-wide Expenses by Function 1 152
Government-wide Revenues 2 153
Fund Information:
General Governmental Expenditures by Function 3 154
General Governmental Revenues by Source 4 155
Property Tax Levies and Collections 5 156
Assessed Value of Taxable Property 6 157
Property Tax Rates 7 158
Ratios of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 8 159
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures 9 160
Assessed Valuation of Top Ten Taxpayers 10 161
COMPLIANCE SECTION
Page
162-163
164-165
Schedule of Expenditures of Federal Awards 166-167
Schedule of Findings and Questioned Costs 168
TABLE OF CONTENTS (continued)
Independent Auditors' Report on Compliance for Each Major Program and on Internal Control over Compliance
Required by the Uniform Guidance
Independent Auditors' Report 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
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
COUNTY OF PITTSYLVANIA, VIRGINIA
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Packet Pg. 7 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
INTRODUCTORY SECTION
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COUNTY OF PITTSYLVANIA, VIRGINIA
BOARD OF SUPERVISORS
Joe Davis,Chair
Dr. Charles Miller, Jr., Vice Chair Ben Farmer
Elton W. Blackstock Tim R. Barber
Ronald Scearce Robert “Bob” Warren
COUNTY SCHOOL BOARD
Calvin D. Doss, Chair
J. Samuel Burton, Vice Chair Cassandra Crump
George Henderson Raymond Ramsey
Don C. Moon R. Todd Sanders
Janet Hancock, Clerk
SOCIAL SERVICES BOARD
Joseph Bray, Chairperson
Nancy Eanes, Vice Chairperson Patricia Evans
Lee Cameron Robert “Bob” Warren
Andrea Johnson Phillip Andrews
OTHER OFFICIALS
Clerk of the Circuit Court .........................................................Mark W. Scarce
Commonwealth's Attorney...............................................Robert “Bryan” Haskins
Commissioner of the Revenue ..............................................Shirley Y. Hammock
Treasurer .........................................................................Vincent E. Shorter
Sheriff..............................................................................Michael W. Taylor
Superintendent of Schools...........................................................Mark R. Jones
Director of Social Services......................................................Christopher Spain
County Administrator........................................................David M. Smitherman
County Attorney......................................................................J.Vaden Hunt
County Finance Director..............................................Kimberly G. Van Der Hyde
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Board of Supervisors
County of Pittsylvania, Virginia
Chatham, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit-School Board, each major fund, and the
aggregate remaining fund information of County of Pittsylvania, Virginia, as of and for the year ended
June 30, 2019, and the related notes to the financial statements, which collectively comprise the
County’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the Industrial Development Authority of Pittsylvania County, Virginia
or the Pittsylvania County Service Authority. Those financial statements were audited by other
auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts
included for the Industrial Development Authority of Pittsylvania County, Virginia and the Pittsylvania
County Service Authority is based solely on the report of the other auditors. We conducted our audit 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 the Specifications for Audits of Counties, Cities, and Towns, issued
by the Auditor of Public Accounts of the Commonwealth of Virginia. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component unit-School Board, each
major fund, and the aggregate remaining fund information of the County of Pittsylvania, Virginia, as of
June 30, 2019, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Change in Accounting Principle
As described in Note 26 to the financial statements, in 2019, the County adopted new accounting
guidance, GASB Statement Nos. 88 Certain Disclosures Related to Debt, Including Direct Borrowing and
Direct Placements and early implemented GASB Statement No. 89, Accounting for Interest Cost
Incurred Before the End of a Construction Period. Our opinion is not modified with respect to this
matter.
Restatement of Beginning Balances
As described in Note 28 to the financial statements, in 2019, the County restated beginning balances to
reflect reinstating the solid waste fee and corresponding fund. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and schedules related to
pension and OPEB funding on pages 5-14, 103-105, and 106-128 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 and other auditors 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 about 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 or 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. The budgetary comparison information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects in relation to the basic financial statements taken as a whole.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County of Pittsylvania, Virginia’s basic financial statements. The introductory
section, other supplementary information and other statistical information are presented for purposes
of additional analysis and are not a required part of the basic financial statements. The schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards, and is also not a required part of the basic financial
statements.
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Supplementary and Other Information (Continued)
The other supplementary information and 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 basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America by us and other auditors. In our opinion, based on our audit, the
procedures performed as described above, and the report of the other auditors, the other
supplementary information and schedule of expenditures of federal awards are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The introductory section and other statistical information have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not express
an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
27, 2019,on our consideration of the County of Pittsylvania, Virginia’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely 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 effectiveness of County of Pittsylvania, Virginia’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering County of Pittsylvania, Virginia’s
internal control over financial reporting and compliance.
Blacksburg, Virginia
November 27, 2019
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Packet Pg. 13 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Management’s Discussion and Analysis
The following is a narrative overview and analysis of the financial activities of the County of
Pittsylvania, Virginia for the fiscal year ended June 30, 2019. The purpose of this Management
Discussion and Analysis is to provide an overview of the County’s financial activity, to assist the
reader in understanding significant financial issues and to provide information concerning changes in
the County’s financial position. This narrative provides additional information that should be read in
conjunction with reviewing the County’s Financial Statements.
Financial Highlights
Government-wide Financial Statements
The governmental activities assets and deferred outflows of resources of the County of Pittsylvania,
Virginia exceeded its liabilities and deferred inflows of resources at the close of the most recent
fiscal year by $49,424,056 (net position). Of this amount, $20,625,332 is unrestricted, or may be
used to meet the government’s ongoing obligations to creditors and citizens. Information concerning
net position for the County, its business-type activities and its component units is located on Exhibit
1.The business-type activities include the Solid Waste Enterprise Fund. The business-type activities’
assets and deferred outflows exceeded its liabilities and deferred inflows of resources by $854,150.
The component units include the School Board’s net position totaling $(41,210,231)of which
$(79,904,990) is unrestricted, the Industrial Development Authority’s net position totaling $2,114,278
all of which is unrestricted and Pittsylvania County Service Authority’s net position totaling
$36,133,897 of which $3,471,246 is unrestricted. (See Exhibit 1.) This exhibit provides insight into
the future by using a full accrual accounting method. This model considers all factors when showing
the financial position of the County.
The County’s governmental activities net position increased by $5,528,592 (after restatement –Note
28). In addition, the School Board’s net position increased $1,879,179 and the IDA’s net position
decreased by $58,279 and the PCSA’s net position increased by $1,242,308.Business-type activities’
net position decreased by $774,819 (after restatement –Note 28).(See Exhibit 2.)
Fund Financial Statements
Unlike the Government-wide Financial Statements which use a full accrual accounting approach, the
Fund Financial Statements use a modified accrual method of accounting. This method differs from
the full accrual method by showing a picture of the County’s financial position at the present time.
A reconciliation of the two methods is provided in Exhibit 4 and Exhibit 6. At the end of the current
fiscal year, unassigned fund balance for the general fund was $20,427,416 or 29 percent of total
general fund expenditures. (See Exhibit 3.) This amount includes taxes, accounts and notes
receivable reflected in the fiscal year 2019 budget as well as County Capital Improvement Projects
for fiscal year 2020.It is important to note that the School Board carryover amount totaling
$1,366,422 has been assigned for fiscal year 2019, which helps to demonstrate a more accurate
unassigned fund balance than in prior years.
As of the close of the current fiscal year, the County’s governmental funds reported combined ending
fund balances of $27,151,992, a decrease of $2,517,688 from last year. Approximately 90%percent
of this total amount, or $24,314,295 (which includes committed, assigned and unassigned funds), is
available for spending at the government’s discretion. This unrestricted balance has three parts,(1)
committed funds which represents $653,112, (2) assigned funds which represent $3,233,767 and (3)
unassigned funds which represents $20,427,416. (See Exhibit 3.)
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Overview of the Financial Statements
The Annual Financial Report consists of four sections: introductory, financial, statistical and
compliance.
The introductory section provides a listing of principal officers for 2018-2019.
The financial section has three component parts –managements’ discussion and analysis (this
section), the basic financial statements which include government-wide financial statements
and fund financial statements, and required supplemental information.
The other statistical information includes selected financial and demographic data related to
the County, generally presented on a multi-year basis.
The compliance section is required under the provisions of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements for Federal Awards (Uniform
Guidance).
Local government accounting and financial reporting originally focused on funds which were designed
to enhance and demonstrate fiscal accountability. Now to be accompanied by government-wide
financial statements, the objective of operational accountability will also be met. These objectives
will provide financial statement users with both justification from the government that public monies
have been used to comply with public decisions and as to whether operating objectives have been
met efficiently and effectively and can continued to be met in the future.
Government-wide Financial Statements
Government-wide financial statements provide financial statement users with a general overview of
County finances. The statements include all assets and liabilities using the accrual basis of
accounting. All current year revenue and expenses are taken into account regardless of when cash is
received or paid. Both the financial overview and accrual accounting factors are used in the
reporting of a private-sector business. Two financial statements are used to present this information:
1) the statement of net position and 2) the statement of activities.
The statement of net position presents all of the County’s permanent accounts, or assets, deferred
outflows of resources, liabilities, deferred inflows of resources,and net position. The difference
between assets (and deferred outflows of resources)and liabilities (and deferred inflows of
resources)is reported as net position. Increases or decreases in net position may serve as a useful
indicator of whether the financial position of the County is improving or deteriorating. Other non-
financial factors will also need to be considered to determine the overall financial position of the
County.
The statement of activities presents information showing how the government’s net position changed
during the fiscal year. The statement is focused on the gross and net cost of various government
functions which are supported by general tax and other revenue. The statement of activities
presents expenses before revenues, emphasizing that in government revenues are generated for the
express purpose of providing services rather than as an end in themselves.
Both government-wide financial statements separate governmental activities and business-type
activities of the County. Governmental activities are principally supported by taxes and
intergovernmental revenues. They include general government administration; judicial
administration; public safety; public works; health and welfare; parks, recreation and cultural; and
community development. Business-type activities recover all or a significant portion of their costs
through user fees and charges. The County currently has one business-type activity which is the Solid
Waste Enterprise Fund.
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Overview of the Financial Statements (continued)
Government-wide Financial Statements (continued)
The government-wide financial statements include, in addition to the primary government or County,
three component units: 1) the Pittsylvania County School Board, 2) Industrial Development Authority
and 3) Pittsylvania County Service Authority. Although these component units are legally separate
entities, the County is accountable or financially accountable for them. A primary government is
accountable for an organization if the primary government appoints a majority of the organization’s
governing body. A primary government is financially accountable if, in addition, either the
government is able to impose its will on the organization or the organization is capable of imposing
specific financial burdens on the primary government.For example, the primary government may
approve debt issuances, rate structures and/or provide significant funding for operations of the
component units.
Fund Financial Statements
The fund financial statements will be more familiar to past financial statement users. The only
difference from prior year presentation of the fund statements is that only major, or significant,
funds will be presented. A fund is a group of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Fund accounting is used to
ensure and demonstrate compliance with finance-related legal requirements. The County’s funds
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds:
Governmental funds are used to account for essentially the same functions, or services, reported as
governmental activities in the government-wide financial statements. Whereas the government-
wide financial statements are prepared on the accrual basis of accounting, the governmental fund
financial statements are prepared on the modified accrual basis of accounting. The focus of
modified accrual reporting is on near-term inflows and outflows of financial resources and the
balance of financial resources available at the end of the fiscal year. Since the governmental funds
focus is narrower than that of the government-wide financial statements, reconciliations between
the two methods are presented in exhibits 4 and 6 of the financial section of this report.
Proprietary funds:
There are two types of proprietary funds: enterprise funds which are established to account for the
delivery of goods and services to the general public and internal service funds which account for the
delivery of goods and services to other departments or agencies of the government. Proprietary
funds use accrual basis accounting, similar to private sector business.
The County of Pittsylvania has one enterprise fund (Solid Waste)but has two internal service funds:
Central Stores Fund and the Self-Insurance Fund. The Central Stores Fund accounts for the
government’s consolidated purchasing of office supplies and telephone charges. The Self-Insurance
Fund accounts for insurance premiums paid by the County and School Board for all departments.
Both internal service funds are combined into a single, aggregated presentation in the proprietary
fund financial statements. Individual fund data for the internal service funds is provided in the form
of combining statements elsewhere in this report.
Fiduciary funds:
Fiduciary funds account for assets held by the government as a trustee or agent for another
organization or individual. The County is responsible for ensuring that the assets reported in these
funds are used for their intended purposes. Fiduciary funds are not reflected in the government-
wide financial statement because the funds are not available to support the County’s own activities.
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Overview of the Financial Statements (continued)
Notes to the financial statements
The notes provide additional information that is needed to fully understand the data provided in the
government-wide and fund financial statements.
Government-wide Financial Analysis
Governmental Activities
As previously noted, net position may serve as a useful indicator of a government’s financial position.
Again, the full accrual accounting method is used to derive these figures. For the County,the
governmental activities assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by $49,424,056 at the end of the fiscal year. The County’s net position is
divided into three categories: (1) net investment in capital assets; (2) restricted; and (3)
unrestricted.
County of Pittsylvania’s Net Position
2019 2018
Governmental
Activities
Governmental
Activities
Current and other assets $63,068,440 $63,271,275
Capital assets 93,040,890 100,119,269
Total assets $156,109,330 $163,390,544
Deferred Outflows of Resources $ 5,481,313 $5,525,999
Long-term liabilities $85,263,200 $99,608,776
Other liabilities 6,918,414 6,336,084
Total liabilities $92,181,614 $105,944,860
Deferred Inflows of Resources $ 19,984,973 $ 19,722,191
Net Position:
Net investment in capital assets $22,285,188 $23,610,189
Restricted 6,513,536 7,337,948
Unrestricted 20,625,332 12,301,355
Total net position $49,424,056 $43,249,492
For the County, investment in capital assets (i.e., land, buildings, machinery, and equipment), net of
related debt used to acquire those assets that is still outstanding, represents 45 percent of total net
position. The County uses these capital assets to provide services to citizens; therefore, these assets
are not available for future spending. Although the County’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.
The restricted net position represents resources that are subject to external restrictions on how they
may be used. These assets include funds restricted for construction, grants and health insurance.
Also included in these restricted assets are assets seized by the Sheriff’s Department and can only be
used for law enforcement.The County’s restricted net position accounts for 13 percent of the total
net position.
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Packet Pg. 17 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Government-wide Financial Analysis (continued)
Governmental Activities (continued)
The remaining balance of unrestricted net position, which is $20,625,332 or 42 percent of total net
position, may be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the fiscal year, the County is able to report positive balances in all three categories of
net position.
The government’s net position increased by $5,528,592 during the current fiscal year (see
restatement –Note 28). The County’s net position increased primarily because of the board’s
concerted effort to be more forward thinking in terms of preparing financially for the County’s
future. During the FY2019 budget process, rates and fees were reviewed and increased in an attempt
to cover much needed improvements to equipment and infrastructure and to start to build the
County’s unassigned fund balance to a more acceptable level.The following tax rates/fees were
increased to help fund the FY2019 budget: Real increased from 59¢ per $100 to 62¢ per $100,
personal property increased from $8.75 per $100 to $9.00 per $100, Vehicle License fee increased
from $38.75 per vehicle to $40.75 per vehicle.
Governmental activities increased the County’s net position by $5,528,592. Key elements of this
increase are as follows:
2019 2019 2018
Governmental Business-type Governmental
Activities Activities Activities
Revenues:
Program revenues:
Charges for services $639,705 $5,104,351 $908,173
Operating grants and contributions 20,829,443 - 19,512,825
Capital grants and contributions 179,825 - 2,176
General revenues:
General property taxes 40,737,447 - 39,899,114
Other local taxes 7,728,921 - 7,375,931
Use of money and property 807,024 12,855 530,617
Miscellaneous 548,625 67,710 403,055
Grants and contributions not spec.6,420,102 - 6,534,738
Transfers (140,148) 140,148 -
Total Revenues $77,750,944 $5,325,064 $75,166,629
Expenses:
General government $3,231,084 $- $3,887,279
Judicial administration 1,884,640 - 1,858,800
Public safety 18,360,059 - 18,156,348
Public works 1,610,567 3,696,095 4,010,797
Health and welfare 13,146,418 - 15,621,570
Education 21,053,924 - 18,851,498
Parks, recreation, and cultural 2,010,342 - 1,885,619
Community development 7,912,185 - 3,187,057
Interest on long-term debt 3,013,133 - 3,163,604
Total Expenses $72,222,352 $3,696,095 $70,622,572
Increase/(Decrease) in net position $5,528,592 $1,628,969 $4,544,057
Net position, beginning (as restated)$43,895,464 $(774,819) $38,705,435
Net position, ending $49,424,056 $854,150 $43,249,492
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Packet Pg. 18 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Financial Analysis of the Government’s Funds
Governmental funds
The focus of the County’s governmental funds is to provide information on near-term inflows,
outflows, and balances of financial resources. Such information is useful in assessing the County’s
financing requirements. Unassigned fund balance may serve as a useful measure of a government’s
net resources available for spending at the end of the fiscal year.
At the end of the fiscal year, the County’s governmental funds reported combined ending fund
balances of $27,151,992. Approximately 75 percent of this total amount constitutes unassigned fund
balance, which is available for spending at the government’s discretion. The remainder of fund
balance is reserved to indicate that it is not available for new spending because it is legally
restricted for a specific purpose.
The general fund is the chief operating fund of the County. As of June 30, 2019, total fund balance
of the general fund was $25,233,399 of which $20,427,416 was unassigned. As a measure of the
general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund
balance to total fund expenditures. Unassigned fund balance represents 29 percent of total general
fund expenditures, which includes transfers to and expenses on behalf of the School Board
component unit of $19,094,304.
An analysis of the supporting schedules (modified accrual) for fiscal year 2019 and 2018 reveals:
Revenues: Real property taxes experienced an increase of 6%, public service corporations
experienced an increase of 10%and personal property taxes experienced an increase of 5%. The
increases were due to realizing the effect of receiving a full fiscal year of increased tax rates
that were implemented January 1, 2018.
Revenues: Other local taxes experienced an overall increase of 5% from FY2018 with both
increases and decreases in various categories. Increases in other local tax revenues occurred in
the following categories: Local Sales and Use Tax (12%), Meals Tax (3%), Motor Vehicle Licenses
(1%), Bank Stock Tax (8%)and Taxes on Recordation and Wills (12%). Decreases occurred in the
following other local taxes categories: Consumers’Utility Tax (less than 1%), Consumption Tax
(Less than 1%), Franchise License Tax (1%), Business Licenses (7%).
Expenses: Overall primary government expenditures decreased by 8% from FY2018.This decrease
resulted from several factors with both increases and decreases in various categories. Workforce
Investment Act Expenditures decreased 22% over the prior year.Decreases also occurred in the
following categories: General government administration,Public Works, Health and welfare,
Community development, Capital Projects and Interest on long-term debt.A major increase in
expenditure occurred in the Industrial Development Fund over the prior since the County made
efforts to complete a large sewer project in the Southern Virginia Multimodal Park at Berry Hill.
Other increases occurred in the following categories: Judicial administration, Public Safety,and
Education,Parks, recreation and cultural.
Expenses: Education increased 3% from FY2018. Increased expenditures occurred in the
following educational categories: Administration and health services (3%), Instructional Costs
(3%), Pupil Transportation (5%), Operation and maintenance of school plant (13%)and Food
service and non-instructional costs (4%). Decreases occurred in the following educational
category: Technology (21%).
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Packet Pg. 19 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Financial Analysis of the Government’s Funds (continued)
Governmental funds (continued)
The Following is a reconciliation of the Treasurer’s books to the Audited Financial Statements.
Per Treasurer Per Treasurer
6/30/2018 6/30/2019
Cash Balance Cash Balance
General Fund 22,349,168 17,372,590
Beautification Fund 11,300 5,662
Pet Center Fund 3,472 49,070
Debt Reserve - Human Services Fund 38,482 38,594
Jail Inmate Management Fund 223,315 266,729
Bond Fund 2,400 2,400
Grants Fund 624,213 677,331
Capital Improvements Fund 1,507,186 564,908
E911 Bond Fund 1,368,368 905,266
Rural Roads Fund 268,781 268,781
Courthouse Construction Fund - 20,754
Courthouse Security Fund 366,977 242,218
Jail Processing Fee Fund 19,926 23,136
Library Gifts Fund 76,257 100,752
Courthouse Maintenance Fund 47,404 57,604
Law Library Fund 28,861 34,459
Rescue Billing Fund 18,670 6,783
Total cash per Treasurer 26,954,780 20,637,037
Audit Adjustments to Cash:
Tax collections held in bank 178,342 328,115
Entry to cash for overdraft Central Stores (22,043) (37,086)
Adjustments to cash by Finance - (122)
Reversion of School Salaries Payable Fund 2,599,821 2,624,646
Total cash as adjusted 29,710,900 23,552,590
Other Adjustments:
Taxes and fees receivable (3,020,629) 1,497,314
Accounts receivables 479,376 600,780
Due (to)/from other funds 22,043 (256,274)
Due from School Board (1,417,520) (1,431,926)
Due from the other governments 3,041,940 3,254,433
Accounts payables (1,654,769) (1,856,060)
Salaries payable (127,426) (127,458)
Total accrual adjustments (2,676,985) 1,680,809
Ending General Fund - Fund Balance 27,033,915 25,233,399
The fund balance of the County’s general fund decreased by $1,800,516 during the current fiscal
year. The majority of this decrease can be attributed to the depletion of loan proceeds as
construction projects are nearing the end of construction as well as the re-establishment of the Solid
Waste Enterprise Fund, which resided in the General Fund in FY2018. It is important to note the
difference in the cash balance of the General Fund was due to the change in the tax due date from
June 5 to June 20, which resulted in a large amount of tax not recorded before year-end.
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Packet Pg. 20 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
General Fund Budgetary Highlights
Differences between the original budgeted appropriations and the final amended budgeted
appropriations were net increase of $5,572,440. This increase occurred because of various budget
increases/reductions that occurred after the 2019 budget process was complete. There were also
increases that were made to the 2019 budget because of unforeseen events that occurred during the
year. Significant budgetary supplements are included below:
A major factor that attributed to the increased budget was due to the inclusion of carryover
appropriations from the prior year. These carryover amounts totaled $4,202,284,of which
$3,647,048 was for schools.
Re-appropriated refunds and donations received totaled $38,785
Funds appropriated for change order to E911 Tower Site Project not covered by loan proceeds
$191,200
Budget appropriation carried forward for the E911 tower project $425,168
Additional Grant Fund Appropriations totaled $247,449
Capital Asset and Debt Administration
Capital assets
The County’s investment in capital assets for its governmental activities as of June 30, 2019 is
$93,040,890 (net of accumulated depreciation). This investment in capital assets includes land
buildings and system, machinery and equipment, and construction in progress.
Major capital asset events during the current fiscal year included the following:
-Purchase and renovations to Hancock Building -$134,904
-Improvements to the Armory -$16,302
-Improvements to the Community Development -$10,828
-E911 Parking Lot Repair -$6,100
-E911 Tower Site Construction -$1,039,297 (amount to date)
-Fire &Rescue Equipment -$43,928
-Jail Camera System Upgrade -$86,065
-Server Upgrades -$100,237 (amount to date)
County of Pittsylvania, Virginia Capital Assets
(net of depreciation)
2019
Governmental
Activities
2019
Business-type
Activities
2018
Governmental
Activities
Land $5,510,544 $ 95,000 $ 5,605,544
Buildings and system 75,622,843 -77,755,651
Machinery and equipment 10,408,025 1,270,449 13,397,450
Infrastructure - 2,723,687 2,778,274
Construction in progress 1,499,478 -582,350
Total $93,040,890 $4,089,136 $100,119,269
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Packet Pg. 21 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Capital Asset and Debt Administration (continued)
Capital assets (continued)
School Board Assets financed with debt are considered assets of the General government until debt
on these assets has been defeased. As such, the above listed assets include School Board Assets net
of related depreciation of $64,337,229. Additional information on the County’s capital assets can be
found in the notes to the financial statements.
Long-term debt
At the end of the fiscal year the County had the following outstanding debt:
County of Pittsylvania’s Outstanding Debt (As Restated)
Legislations enacted in fiscal year ended June 30, 2002 requires that debt historically reported by
the School Board has been assumed by the Primary Government. The legislation affects the
reporting of local school capital assets as well.
Additional information on the County’s long-term debt can be found in the notes to the financial
statements.
2019 2019 2018 2018
Governmental
activities
Business-type
activities
Governmental
activities
Business-
type activities
General obligation bonds $56,785,157 -$62,204,987 -
Lease Revenue Notes 3,486,901 $1,875,643 4,029,133 $2,237,281
Deferred Amounts:
Bond Premium 6,101,539 87,996 6,370,544 123,195
Landfill closure/post-
closure -
3,169,490 -
3,046,215
Capital leases 8,835,120 -10,848,512 -
Net pension liability 5,168,026 219,657 5,141,587 -
Net OPEB Obligation 3,020,520 128,381 3,529,000 -
Compensated absences 1,365,937 35,245 1,284,206 44,116
Contingency for CSA 500,000 -750,000 -
Total $85,263,200 $5,516,412 $94,157,969 $5,450,808
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Packet Pg. 22 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Economic Factors and Next Year’s Budgets and Rates
At June 30, 2019, the unemployment rate for the County was 3.1 percent, which is a decrease
from the rate of 4.0 percent a year ago. This compares unfavorably to the state’s average
unemployment rate of 2.9 percent and unfavorably to the national average rate of 3.7
percent.
Pittsylvania County continues to work jointly with the City of Danville through a joint
authority known as the Danville-Pittsylvania County Regional Industrial Facilities Authority
and recently became a member of the newly formed Staunton-River Regional Industrial
Facilities Authority in FY2019. This authority works to attract industry and business to
Southside Virginia.
Pittsylvania County has a median household income of $44,356 compared to the State median
household income of $68,766.
Pittsylvania County’s population was estimated at 60,949 in 2018 compared with 63,506 based
on US Census Bureau information from 2010.
All of these factors were considered in preparing the County’s budget for the 2019 fiscal year.
Appropriations for County funds lapse at fiscal year end, with the exception of the Capital Projects
Fund, therefore, it is not anticipated that fund balance will be used to finance daily operations for
the 2020 budget year.
Requests for Information
This financial report is designed to provide readers with a general overview of the County of
Pittsylvania’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Finance Office, P.O. Box
426, Chatham, Virginia 24531. The County’s website at www.pittgov.org may also be visited to
obtain valuable information about the County.
Information relative to the Pittsylvania County Public Service Authority and the Pittsylvania County
Industrial Development Authority financial statements may be obtained from those organizations
directly.
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Packet Pg. 23 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Basic Financial Statements
5.a.a
Packet Pg. 24 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 1
Industrial Pittsylvania
Governmental Business-type Development County Service
Activities Activities Total School Board Authority Authority
ASSETS
Cash and cash equivalents 18,761,750$ 1,660,147$ 20,421,897$ 1,570,741$ 963,150$ 511,074$
Investments 10,192,274 - 10,192,274 - - 300,360
Receivables (net of allowance for uncollectibles):
Taxes receivable 26,627,615 - 26,627,615 - - -
Accounts receivable 2,031,682 415,855 2,447,537 427,434 - 433,576
Notes receivable - - - - 460,715 -
Capital lease receivable - - - - - 20,359
Due from primary government - - - 1,431,926 - -
Due from other governmental units 4,350,248 - 4,350,248 2,035,208 - -
Inventories 6,734 - 6,734 - - 37,887
Assets held for resale - Industrial sites - - - - 1,894,163 -
Prepaid items - - - 878,013 - 53,530
Restricted assets:
Cash and cash equivalents 1,098,137 - 1,098,137 - - -
Investments - 210,211 210,211 - - 2,744,022
Noncurrent assets:
Notes receivable - - - - 4,737,457 -
Capital lease receivable - - - - - 158,132
Capital assets (net of accumulated depreciation):
Land 5,510,544 95,000 5,605,544 2,709,971 - -
Buildings and improvements 75,622,843 - 75,622,843 31,459,181 - -
Machinery and equipment 10,408,025 1,270,449 11,678,474 2,680,385 - -
Infrastructure - 2,723,687 2,723,687 - - -
Utility plant in service - - - - - 32,662,651
Construction in progress 1,499,478 - 1,499,478 283,507 - -
Total assets 156,109,330$ 6,375,349$ 162,484,679$ 43,476,366$ 8,055,485$ 36,921,591$
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 3,586,465$ -$ 3,586,465$ -$ -$ -$
OPEB related items 265,915 10,350 276,265 2,177,099 - -
Pension related items 1,628,933 214,086 1,843,019 10,895,416 - 84,837
Total deferred outflows of resources 5,481,313$ 224,436$ 5,705,749$ 13,072,515$ -$ 84,837$
LIABILITIES
Accounts payable 2,728,702$ 77,620$ 2,806,322$ 1,105,036$ -$ 173,557$
Salaries payable 127,458 24,128 151,586 2,624,646 - 8,158
Customer deposits - - - - - 195,448
Retainage payable 231,587 - 231,587 - - -
Estimate of incurred but unreported health claims 1,189,092 - 1,189,092 - - -
Accrued interest payable 909,506 24,963 934,469 - - -
Amounts held for rescue squads 6,783 - 6,783 - - -
Internal balances 293,360 (293,360) - - - -
Due to component units 1,431,926 - 1,431,926 - - -
Unearned revenue - 365,711 365,711 173,912 147,493 65,169
Long-term liabilities:
Due within one year 9,598,864 436,698 10,035,562 1,262,742 356,472 -
Due in more than one year 75,664,336 5,079,714 80,744,050 83,809,707 5,437,242 328,625
Total liabilities 92,181,614$ 5,715,474$ 97,897,088$ 88,976,043$ 5,941,207$ 770,957$
DEFERRED INFLOWS OF RESOURCES
Deferred revenue - property taxes 18,568,534$ -$ 18,568,534$ -$ -$ -$
OPEB related items 507,432 21,568 529,000 1,136,591 - -
Pension related items 909,007 8,593 917,600 7,646,478 - 101,574
Total deferred inflows of resources 19,984,973$ 30,161$ 20,015,134$ 8,783,069$ -$ 101,574$
NET POSITION
Net investment in capital assets 22,285,188$ 2,335,708$ 24,620,896$ 37,133,044$ -$ 32,662,651$
Restricted:
Construction 9,355 - 9,355 - - -
Grant funds 1,219,810 - 1,219,810 - - -
Asset forfeiture funds 510,395 - 510,395 - - -
Health insurance 4,773,976 - 4,773,976 - - -
School nutrition - - - 1,561,715 - -
Unrestricted 20,625,332 (1,481,558) 19,143,774 (79,904,990) 2,114,278 3,471,246
Total net position 49,424,056$ 854,150$ 50,278,206$ (41,210,231)$ 2,114,278$ 36,133,897$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Net Position
June 30, 2019
Component UnitsPrimary Government
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Packet Pg. 25 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 2Operating CapitalIndustrial PittsylvaniaCharges for Grants and Grants and Governmental Business-type Development County ServiceFunctions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotalSchool BoardAuthorityAuthorityPRIMARY GOVERNMENT:Governmental activities:General government administration3,231,084$ 86,343$ 386,944$ -$ (2,757,797)$ -$ (2,757,797)$ -$ -$ -$ Judicial administration1,884,640 15,491 1,112,782 - (756,367) - (756,367) - - - Public safety18,360,059 451,325 4,946,848 179,825 (12,782,061) - (12,782,061) - - - Public works1,610,567 15,881 52,159 - (1,542,527) - (1,542,527) - - - Health and welfare13,146,418 - 10,560,993 - (2,585,425) - (2,585,425) - - - Education21,053,924 - - - (21,053,924) - (21,053,924) - - - Parks, recreation, and cultural2,010,342 70,665 159,945 - (1,779,732) - (1,779,732) - - - Community development 7,912,185 - 3,609,772 - (4,302,413) - (4,302,413) - - - Interest on long-term debt3,013,133 - - - (3,013,133) - (3,013,133) - - - Total governmental activities72,222,352$ 639,705$ 20,829,443$ 179,825$ (50,573,379)$ -$ (50,573,379)$ -$ -$ -$ Business-type activities:Landfill 3,696,095$ 5,104,351$ -$ -$ -$ 1,408,256$ 1,408,256$ -$ -$ -$ Total primary government75,918,447$ 5,744,056$ 20,829,443$ 179,825$ (50,573,379)$ 1,408,256$ (49,165,123)$ -$ -$ -$ COMPONENT UNITS:School Board92,296,158$ 1,607,152$ 70,575,432$ -$ (20,113,574)$ -$ -$ Industrial Development Authority274,811 - - - - (274,811) - Pittsylvania County Service Authority3,638,114 2,797,860 - 2,015,065 - - 1,174,811 Total component units96,209,083$ 4,405,012$ 70,575,432$ 2,015,065$ (20,113,574)$ (274,811)$ 1,174,811$ General revenues: General property taxes40,737,447$ -$ 40,737,447$ -$ -$ -$ Other local taxes: Local sales and use taxes2,633,244 - 2,633,244 - - - Consumers' utility taxes1,299,471 - 1,299,471 - - - Motor vehicle licenses2,347,943 - 2,347,943 - - - Meals taxes773,714 - 773,714 - - - Other local taxes674,549 - 674,549 - - - Unrestricted revenues from use of money and property 807,024 12,855 819,879 29,897 216,532 67,497 Miscellaneous548,625 67,710 616,335 623,344 - - Payments from the County of Pittsylvania- - - 21,339,512 - - Grants and contributions not restricted to specific programs 6,420,102 - 6,420,102 - - - Transfers(140,148) 140,148 - - - - Total general revenues and transfers56,101,971$ 220,713$ 56,322,684$ 21,992,753$ 216,532$ 67,497$ Change in net position 5,528,592 1,628,969 7,157,561 1,879,179 (58,279) 1,242,308 Net position - beginning, as restated43,895,464 (774,819) 43,120,645 (43,089,410) 2,172,557 34,891,589 Net position - ending49,424,056$ 854,150$ 50,278,206$ (41,210,231)$ 2,114,278$ 36,133,897$ The accompanying notes to the financial statements are an integral part of this statement.County of Pittsylvania, VirginiaStatement of ActivitiesFor the Year Ended June 30, 2019Net (Expense) Revenue andComponentUnitsGovernmentProgram Revenues Changes in Net PositionPrimary-16-
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Packet Pg. 26 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 3
Other
Industrial Workforce Governmental
General Development Investment Act Funds Total
ASSETS
Cash and cash equivalents 12,262,179$ 756,861$ 301,030$ 733,690$ 14,053,760$
Investments 10,192,274 - - - 10,192,274
Receivables (net of allowance for uncollectibles):
Taxes receivable 26,627,615 - - - 26,627,615
Accounts receivable 614,873 9,917 115,644 - 740,434
Due from other funds 37,086 - - - 37,086
Due from other governmental units 3,240,340 822,639 287,269 - 4,350,248
Restricted assets:
Cash and cash equivalents 1,098,137 - - - 1,098,137
Total assets 54,072,504$ 1,589,417$ 703,943$ 733,690$ 57,099,554$
LIABILITIES
Accounts payable 1,849,277$ 704,718$ 162,304$ 9,848$ 2,726,147$
Salaries payable 127,458 - - - 127,458
Retainage payable - 231,587 - - 231,587
Amounts held for rescue squads 6,783 - - - 6,783
Due to other funds 293,360 - - - 293,360
Due to component unit 1,431,926 - - - 1,431,926
Total liabilities 3,708,804$ 936,305$ 162,304$ 9,848$ 4,817,261$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 25,130,301$ -$ -$ -$ 25,130,301$
FUND BALANCES
Restricted:
Construction 1,098,137$ -$ -$ 9,355$ 1,107,492$
Grant funds 678,171 - 541,639 - 1,219,810
Asset Forfeiture Fund - - - 510,395 510,395
Committed:
Special revenue funds - 653,112 - - 653,112
Assigned:
Pet Center Fund 49,070 - - - 49,070
Beautification Fund 5,662 - - - 5,662
Law Library Fund 34,459 - - - 34,459
Library Gifts Fund 100,752 - - - 100,752
Capital Outlay Fund 564,908 - - - 564,908
Jail Inmate Management Fund 266,246 - - - 266,246
Courthouse Maintenance Fund 57,604 - - - 57,604
Courthouse Security Fund 230,887 - - - 230,887
Courthouse Construction Fund 20,754 - - - 20,754
Jail Processing Fund 23,136 - - - 23,136
Rural Road Addition Fund 268,781 - - - 268,781
Debt Service Reserve Fund - - - 204,092 204,092
Social Services Bond Fund 38,594 - - - 38,594
School Carryover 1,366,422 - - - 1,366,422
Schools Bond Fund 2,400 - - - 2,400
Unassigned 20,427,416 - - - 20,427,416
Total fund balances 25,233,399$ 653,112$ 541,639$ 723,842$ 27,151,992$
Total liabilities, deferred inflows of resources,
and fund balances 54,072,504$ 1,589,417$ 703,943$ 733,690$ 57,099,554$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Balance Sheet
Governmental Funds
June 30, 2019
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Packet Pg. 27 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 4
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances per Exhibit 3 - Balance Sheet - Governmental Funds 27,151,992$
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. Jointly owned assets are
included in the total capital assets.
Land 5,510,544$
Buildings and improvements 75,622,843
Machinery and equipment 10,408,025
Construction in progress 1,499,478 93,040,890
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the funds.
Unavailable revenue - property taxes 6,561,767
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and telecommunications, to individual funds. The assets and
liabilities of the internal service funds are included in governmental activities in the
statement of net position.4,777,239
Deferred outflows of resources are not available to pay for current-period expenditures and,
therefore, are not reported in the funds.
Deferred charge on refunding 3,586,465$
Pension related items 1,628,933
OPEB related items 265,915 5,481,313
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the funds.
Bonds payable (60,272,058)$
Capital leases (8,835,120)
Unamortized premiums (6,101,539)
Accrued interest payable (909,506)
Net OPEB liabilities (3,020,520)
Net pension liability (5,168,026)
Compensated absences (1,365,937)
Due to the Commonwealth - CSA (500,000) (86,172,706)
Deferred inflows of resources are not due and payable in the current period and, therefore,
are not reported in the funds.
Pension related items (909,007)$
OPEB related items (507,432) (1,416,439)
Net position of governmental activities 49,424,056$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2019
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Packet Pg. 28 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 5
Workforce Other
Industrial Investment Governmental
General Development Act Funds Total
REVENUES
General property taxes 40,423,061$ -$ -$ -$ 40,423,061$
Other local taxes 7,728,921 - - - 7,728,921
Permits, privilege fees, and regulatory licenses 138,128 - - - 138,128
Fines and forfeitures 190,695 - - - 190,695
Revenue from the use of money and property 368,727 - 437,847 450 807,024
Charges for services 310,882 - - - 310,882
Miscellaneous 522,031 22,615 3,979 - 548,625
Recovered costs 1,281,594 35,497 - - 1,317,091
Intergovernmental 20,961,404 3,609,772 2,428,083 180,111 27,179,370
Total revenues 71,925,443$ 3,667,884$ 2,869,909$ 180,561$ 78,643,797$
EXPENDITURES
Current:
General government administration 3,878,872$ -$ -$ -$ 3,878,872$
Judicial administration 1,963,583 - - - 1,963,583
Public safety 17,956,692 - - 233,211 18,189,903
Public works 1,085,493 - - - 1,085,493
Health and welfare 11,218,198 - 2,564,673 - 13,782,871
Education 19,104,624 - - - 19,104,624
Parks, recreation, and cultural 1,975,372 - - - 1,975,372
Community development 1,851,148 6,261,236 - - 8,112,384
Nondepartmental 11,121 - - - 11,121
Capital projects 1,010,825 - - - 1,010,825
Debt service:
Principal retirement 8,128,744 - - - 8,128,744
Interest and other fiscal charges 2,995,640 - - - 2,995,640
Total expenditures 71,180,312$ 6,261,236$ 2,564,673$ 233,211$ 80,239,432$
Excess (deficiency) of revenues over
(under) expenditures 745,131$ (2,593,352)$ 305,236$ (52,650)$ (1,595,635)$
OTHER FINANCING SOURCES (USES)
Transfers in 389$ 1,623,594$ -$ -$ 1,623,983$
Transfers out (1,764,131) - - - (1,764,131)
Issuance of capital leases 153,290 - - - 153,290
Total other financing sources (uses)(1,610,452)$ 1,623,594$ -$ -$ 13,142$
Net change in fund balances (865,321)$ (969,758)$ 305,236$ (52,650)$ (1,582,493)$
Fund balances - beginning, as restated 26,098,720 1,622,870 236,403 776,492 28,734,485
Fund balances - ending 25,233,399$ 653,112$ 541,639$ 723,842$ 27,151,992$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2019
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5.a.a
Packet Pg. 29 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 6
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds (1,582,493)$
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 depreciation expense exceeded
the capital outlays in the current period.
Capital outlays 1,589,637$
Depreciation expense (4,888,161) (3,298,524)
The net effect of various miscellaneous transactions involving capital assets (I.e., sales, trade-ins, and
donations) is to decrease net capital assets.
Loss on disposal of assets (10,138)
Revenues in the statement of activities that do not provide current financial resources are
not reported as revenues in the funds.
Property taxes 314,386
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 position. Also, governmental funds report the effect of 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 items.
Debt Issued or Incurred:
Issuance of capital lease (153,290)$
Principal Payments
Bonds payable 5,962,062
Capital leases 2,166,682
Due to Commonwealth - CSA 250,000 8,225,454
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore are not reported as expenditures in governmental funds.
Change in compensated absences (81,731)$
Change in accrued interest payable 84,910
Change in net OPEB liabilities and related items 241,505
Change in net pension liability and related items 682,946
Amortization of bond premium 269,005
Amortization of loss on refunding (371,408) 825,227
Internal service funds are used by management to charge the costs of certain activities, such as
insurance and telecommunications, to individual funds. The net revenue (expense) of certain
internal service funds is reported with governmental activities. 1,054,680
Change in net position of governmental activities 5,528,592$
The accompanying notes to the financial statements are an integral part of this statement.
For the Year Ended June 30, 2019
County of Pittsylvania, Virginia
Reconciliation of Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
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5.a.a
Packet Pg. 30 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 7
Enterprise
Fund Internal
Solid Waste Service
Fund Funds
ASSETS
Current assets:
Cash and cash equivalents 1,660,147$ 4,707,990$
Accounts receivables, net of allowances for uncollectibles 415,855 1,291,248
Due from other funds 293,360 -
Inventories - 6,734
Total current assets 2,369,362$ 6,005,972$
Noncurrent assets:
Restricted assets:
Investments 210,211$ -$
Total restricted current assets 210,211$ -$
Capital assets: (net of related depreciation)
Land 95,000$ -$
Machinery and equipment 1,270,449 -
Infrastructure 2,723,687 -
Total capital assets 4,089,136$ -$
Total noncurrent assets 4,299,347$ -$
Total assets 6,668,709$ 6,005,972$
DEFERRED OUTFLOWS OF RESOURCES
OPEB related items 10,350$ -$
Pension related items 214,086 -
Total deferred outflows of resources 224,436$ -$
LIABILITIES
Current liabilities:
Accounts payable 77,620$ 2,555$
Estimate of incurred but unreported health claims - 1,189,092
Accrued salaries 24,128 -
Due to other funds - 37,086
Interest payable 24,963 -
Unearned revenue 365,711 -
Compensated absences - current portion 26,434 -
Bonds payable - current portion 410,264 -
Total current liabilities 929,120$ 1,228,733$
Noncurrent liabilities:
Landfill closure/postclosure liability 3,169,490$ -$
Bonds payable - net of current portion 1,553,375 -
Compensated absences - net of current portion 8,811 -
Net pension liability 219,657 -
Net OPEB liabilities 128,381 -
Total noncurrent liabilities 5,079,714$ -$
Total liabilities 6,008,834$ 1,228,733$
DEFERRED INFLOWS OF RESOURCES
OPEB related items 21,568$ -$
Pension related items 8,593 -
Total deferred inflows of resources 30,161$ -$
NET POSITION
Net investment in capital assets 2,335,708$ -$
Restricted for health insurance claims - 4,773,976
Unrestricted (1,481,558) 3,263
Total net position 854,150$ 4,777,239$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Net Position
Proprietary Fund
June 30, 2019
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Packet Pg. 31 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 8
Enterprise
Fund Internal
Solid Waste Service
Fund Funds
OPERATING REVENUES
Charges for services:
Materials and supplies -$ 461,454$
Insurance premiums - 13,764,336
Recycling 4,444 -
Solid waste collections 5,075,422 -
Penalties and interest 24,485 -
Miscellaneous 67,710 -
Total operating revenues 5,172,061$ 14,225,790$
OPERATING EXPENSES
Supplies, insurance and telephone -$ 432,744$
Insurance claims and expenses - 12,738,366
Salaries 520,667 -
Fringes 424,201 -
Contractual services 1,412,878 -
Utilities 51,782 -
Insurance 23,112 -
Fuel 192,496 -
Supplies 164,360 -
Landfill monitoring 126,129 -
Improvements and closure costs 183,175 -
Miscellaneous 169,571 -
Depreciation 382,318 -
Total operating expenses 3,650,689$ 13,171,110$
Change in Net Position 1,521,372$ 1,054,680$
NONOPERATING REVENUES (EXPENSES)
Investment income 12,855$ -$
Interest expense (45,406) -
Total nonoperating revenues (expenses) (32,551)$ -$
Income before transfers 1,488,821 1,054,680
Transfers in 140,537$ -$
Transfers out (389) -
Change in Net Position 1,628,969$ 1,054,680$
Total net position - beginning, as restated (774,819) 3,722,559
Total net position - ending 854,150$ 4,777,239$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended June 30, 2019
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5.a.a
Packet Pg. 32 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 9
Enterprise
Fund Internal
Solid Waste Service
Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 5,151,148$ -$
Receipts for materials and supplies - 440,031
Receipts for insurance premiums - 13,659,816
Payments to suppliers (2,155,843) (455,074)
Payments to employees (795,019) -
Payments for insurance premiums - (12,817,774)
Net cash provided by (used for) operating activities 2,200,286$ 826,999$
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Interfund borrowings (153,212)$ 15,043$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Purchase of utility plant (701,737)$ -$
Principal payments on bonds (361,638) -
Interest expense (84,565) -
Net cash provided by (used for) capital and related
financing activities (1,147,940)$ -$
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends received 12,855$ -$
Net increase (decrease) in cash and cash equivalents 911,989$ 842,042$
Cash and cash equivalents - beginning 958,369 3,865,948
Cash and cash equivalents - ending (including investments of $210,211)1,870,358$ 4,707,990$
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)1,521,372$ 1,054,680$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation 382,318 -
(Increase) decrease in accounts receivable (386,624) (125,943)
(Increase) decrease in inventories - (844)
Increase (decrease) in accrued salaries 4,957 -
Increase (decrease) in closure/postclosure liability 123,274 -
Increase (decrease) in accounts payable 44,386 (100,894)
Increase (decrease) in compensated absences (8,871) -
Increase (decrease) in unearned revenue 365,711 -
Increase (decrease) in net pension liability 219,657 -
Increase (decrease) in net OPEB liabilities 128,381 -
Changes in deferred outflows related to pension (214,086) -
Changes in deferred inflows related to pension 8,593 -
Changes in deferred outflows related to OPEB (10,350) -
Changes in deferred inflows related to OPEB 21,568 -
Total adjustments 678,914 (227,681)
Net cash provided by (used for) operating activities 2,200,286$ 826,999$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2019
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Packet Pg. 33 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 10
Agency
Funds
ASSETS
Cash and cash equivalents 297,075$
Cash in custody of others 17,971
Total assets 315,046$
LIABILITIES
Amounts held for social services clients 29,475$
Amounts held for developers 267,600
Amounts held for land sales 2,634
Amounts held for inmates 15,337
Total liabilities 315,046$
The accompanying notes to the financial statements are an integral part of this statement.
County of Pittsylvania, Virginia
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2019
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Packet Pg. 34 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies:
The financial statements of the County of Pittsylvania,Virginia conform to generally accepted
accounting principles (GAAP) applicable to governmental units promulgated by the Governmental
Accounting Standards Board (GASB). The following is a summary of the more significant policies:
A.Financial Reporting Entity
The County of Pittsylvania, Virginia is a municipal corporation governed by an elected seven-
member Board of Supervisors. The accompanying financial statements present the government and
its component units, entities for which the government is considered to be financially accountable.
Blended component units, although legally separate entities, are, in substance, part of the
government’s operations. Each discretely presented component unit is reported in a separate
column in the government-wide financial statements (see note below for description) to emphasize
that it is legally separate from the government.
Blended component units -None
Discretely Presented Component Units -The component unit columns in the financial statements
include the financial data of the County's discretely presented component units.
The Pittsylvania County School Board operates the elementary and secondary public schools in the
County. School Board members are popularly elected. The School Board is fiscally dependent upon
the County because the County approves all debt issuances of the School Board and provides
significant funding to operate the public schools since the School Board does not have separate
taxing powers. The School Board is presented as a governmental fund type and does not issue a
separate financial statement.
The Industrial Development Authority of Pittsylvania County (IDA) encourages and provides financing
for industrial development in Pittsylvania County. The IDA is deemed to be a discretely presented
component unit of the County. The IDA’s fiscal year end is December 31st and financial data
presented herewith for the Authority is for the fiscal year ended December 31, 2018. The IDA issues
separate financial statements that may be obtained from the County of Pittsylvania, 21 North Main
Street, Chatham, Virginia 24531.
The Pittsylvania County Service Authority (Service Authority) provides water and sewer service to
residents of Pittsylvania County. The Service Authority is deemed to be a discretely presented
component unit of the County. The Service Authority’s fiscal year end is December 31st and
financial data presented herewith for the Service Authority is for the fiscal year ended December
31, 2018. The Service Authority issues separate financial statements that may be obtained from the
County of Pittsylvania, 21 North Main Street, Chatham, Virginia 24531.
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Packet Pg. 35 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
A.Financial Reporting Entity (continued)
Related Organizations -The County's officials are also responsible for appointing the members of the
boards of other organizations, but the County's accountability for these organizations does not
extend beyond making the appointment.
Jointly Governed Organizations -The County, in conjunction with the City of Danville, participates
in supporting the Danville-Pittsylvania Community Services Board. The governing bodies of these
organizations are appointed by the respective governing bodies of the participating jurisdictions.
During the year, the County contributed $357,612 to the Community Services Board.
The County in conjunction with the City of Danville participates in supporting the Danville-
Pittsylvania Regional Industrial Facilities Authority (DPRIFA). The governing bodies of these
organizations are appointed by the respective governing bodies of the participating jurisdictions.
During the year, the County contributed $233,684 to DPRIFA. The County has a moral obligation to
continue to provide funding to the IFA for debt service and ongoing construction projects.
The County along with the Town of Altavista, Town of Hurt, and City of Danville are part of the
jointly governed organization Staunton River Regional Industrial Facility Authority (SRRIFA).
SRRIFA’s mission is to improve the regional economy through the attraction of global industry.
B.Government-wide and Fund Financial Statements
Government-wide financial statements -The reporting model includes financial statements prepared
using full accrual accounting for all of the government’s activities. This approach includes not just
current assets and liabilities but also capital assets and long-term liabilities (such as buildings and
general obligation debt).
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on
fees and charges for support. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially accountable.
Statement of Net Position -The Statement of Net Position is designed to display financial position of
the primary government (governmental and business-type activities) and its discretely presented
component units. Governments will report all capital assets in the government-wide Statement of
Net Position and will report depreciation expense –the cost of “using up” capital assets –in the
Statement of Activities. The net position of a government will be broken down into three categories
–1) net investment in capital assets; 2) restricted; and 3) unrestricted.
Statement of Activities -The government-wide Statement of Activities reports expenses and
revenues in a format that focuses on the cost of each of the government’s functions. The expense
of individual functions is compared to the revenues generated directly by the function (for instance,
through user charges or intergovernmental grants).
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Packet Pg. 36 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
B.Government-wide and Fund Financial Statements (continued)
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a
given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead 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, if any, are reported as
separate columns in the fund financial statements.
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The accompanying financial statements are prepared in accordance with pronouncements issued by
the Governmental Accounting Standards Board. The principles prescribed by GASB represent
generally accepted accounting principles applicable to governmental units.
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as
all eligibility requirements imposed by the provider have been met.
The government-wide Statement of Activities reflects both the gross and net cost per functional
category (public safety, public works, health and welfare, etc.) which are otherwise being supported
by general government revenues (property, sales and use taxes, certain intergovernmental revenues,
fines, permits and charges, etc.) The Statement of Activities reduces gross expenses (including
depreciation) by related program revenues, operating and capital grants, and contributions. The
program revenues must be directly associated with the function (public safety, public works, health
and welfare, etc.) or a business-type activity.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the government considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
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Packet Pg. 37 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Accordingly, real and personal property taxes are recorded as revenues and
receivables when billed, net of allowances for uncollectible amounts. Property taxes not collected
within 60 days after year-end are reflected as unavailable revenues.
Sales and utility taxes, which are collected by the state or utilities and subsequently remitted to the
County, are recognized as revenues and receivables upon collection by the state or utility, which is
generally in the month preceding receipt by the County.
Licenses, permits, fines and rents are recorded as revenues when received. Intergovernmental
revenues, consisting primarily of federal, state and other grants for the purpose of funding specific
expenditures, are recognized when earned or at the time of the specific expenditure. Revenues
from general-purpose grants are recognized in the period to which the grant applies. All other
revenue items are considered to be measurable and available only when the government receives
cash.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for and reports all
financial resources of the general government, except those required to be accounted for in other
funds. The General Fund includes the activities of the Social Services, Debt Reserve, Bond,
Zoning, Grants, CIP, Jail Operations, Rural Roads,Building Code Academy, Courthouse Security,
Jail Inmate Management, Landfill Bond, Library Gifts, Courthouse Maintenance,Law Library,
Animal Friendly Plates, and Jail Processing Funds.The aforementioned Funds have been merged
with the General Fund for financial reporting purposes.
The Industrial Development and Workforce Investment Act Funds serve as the County’s major
Special Revenue Funds. The Industrial Development Fund accounts for and reports the proceeds of
specific revenue sources that are restricted or committed to expenditure for industrial and
community development benefiting the County. The Industrial Development Fund includes the
activities of the cyclical and non-cyclical industrial development funds. The Workforce Investment
Act Fund accounts for and reports the proceeds of specific revenue sources that are restricted or
committed to expenditure for administering programs to improve the workforce of Pittsylvania
County and surrounding jurisdictions.
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Packet Pg. 38 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
The government reports the following nonmajor governmental funds:
The Forfeited Assets is a Special Revenue Fund that accounts for and reports financial resources to
be used in connection with the Sheriff and Commonwealth Attorney’s asset forfeiture funds.
The School Capital Improvements Fund is the County’s capital projects fund related to school
improvements.
The Debt Service Reserve Fund is the County’s only Debt Service Fund. It accounts for and reports
financial resources to be used for the payment of debt of the County as well as jointly governed
organizations.
The government reports the following major enterprise funds:
The Solid Waste Fund accounts for the activities of the landfill, including charges for services,
expenses, assets, and related debts.
Additionally, the government reports the following fund types:
Internal Service Funds account for the financing of goods and services provided to other
departments or agencies of the government, or to other governments, on a cost reimbursement
basis. The Internal Service Funds consist of the Central Stores and Self Insurance Funds.
Fiduciary funds (Trust and Agency funds) account for assets held by the government in a trustee
capacity or as agent or custodian for individuals,private organizations, other governmental units,
or other funds. Agency funds include the Special Welfare, Cash Bond, Land Sales, and Sheriff’s
Inmate Trust and Canteen Account Funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are other charges between the government’s
functions. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
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 County’s Internal Service Funds are charges to departments for sales and health
insurance. Operating expenses for Internal Service Funds include the cost of sales and services,
administrative expense, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
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Packet Pg. 39 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
1.Cash and Cash Equivalents
The government’s cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and
Collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”).
2.Investments
Money market investments, participating interest-earning investment contracts (repurchase
agreements) that have a remaining maturity at time of purchase of one year or less,
nonparticipating interest-earning investment contracts (nonnegotiable certificates of deposit
(CDs))and external investment pools are measured at amortized cost.All other investments
are reported at fair value.
3.Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year is referred to as “due to/from other funds” (i.e. the current
portion of interfund loans). All other outstanding balances between funds are reported as
“advances to/from other funds” (i.e. the noncurrent portion of interfund loans).
4.Property Taxes
Property is assessed at its value on January 1st. Property taxes attach as an enforceable lien on
property as of January 1st. Real estate taxes are payable in installments on June 20th and
December 20th. Personal property taxes are due and collectible in installments on June 20th and
December 20th. The County bills and collects its own property taxes.
5.Allowance for Uncollectible Accounts
The County calculates its allowance for uncollectible accounts using historical collection data
and, in certain cases, specific account analysis. The allowance amounted to approximately
$508,078 at June 30, 2019 and is comprised solely of property taxes.
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Packet Pg. 40 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
(continued)
6.Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
7.Prepaid Items
Certain payments to vendors represent costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The
cost of prepaid items is recorded as expenditures/expenses when consumed rather than when
purchased.
8.Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental column in
the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of more than $5,000 (amount not rounded) and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend the asset’s life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, and equipment and infrastructure of the primary government, as well as the
Component Unit –School Board, are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 40
Building improvements 40
Structures, lines, and accessories 20-40
Machinery and equipment 4-30
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Packet Pg. 41 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
(continued)
9.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The County has multiple items that qualify for reporting in this category.One item is the
deferred charge on refunding reported in the government-wide statement of net position. A
deferred charge on refunding results from the difference in the carrying value of refunded debt
and its reacquisition price. This amount is deferred and amortized over the shorter of the life
of the refunded or refunding debt. The other item is comprised of certain items related to the
measurement of the net pension liability and net OPEB liability(ies) and/or contributions to the
pension and OPEB plan(s) made during the current year and subsequent to the net pension
liability and net OPEB liability measurement date. For more detailed information on these
items, reference the related notes.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s)
and so will not be recognized as an inflow of resources (revenue) until that time. The County
has multiple items that qualify for reporting in this category. Under a modified accrual basis of
accounting, unavailable revenue representing property taxes receivable is reported in the
governmental funds balance sheet. This amount is comprised of uncollected property taxes due
prior to June 30, 2nd half installments levied during the fiscal year but due after June 30th, and
amounts prepaid on the 2nd half installments and is deferred and recognized as an inflow of
resources in the period that the amount becomes available. Under the accrual basis, 2nd half
installments levied during the fiscal year but due after June 30th and amounts prepaid on the
2nd half installments are reported as deferred inflows of resources. In addition, certain items
related to the measurement of the net pension liability and net OPEB liability(ies) are reported
as deferred inflows of resources. For more detailed information on these items, reference the
related notes.
10.Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond
premiums and discounts are deferred and amortized over the life of the bonds using the
effective interest method. Bonds payable are reported net of the applicable bond premium or
discount.
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Packet Pg. 42 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
(continued)
10.Long-term Obligations (continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses.
11.Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with expendable
available financial resources is reported as an expenditure and a fund liability of the
governmental fund that will pay it. In accordance with the current accounting standards, no
liability is recorded for non-vesting accumulating rights to receive sick pay benefits. The County
accrues salary-related payments associated with the payment of compensated absences. All
vacation pay is accrued when incurred in the government-wide and proprietary fund financial
statements.
12.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary
net position of the County’s and School Board’s Retirement Plan and the additions to/deductions
from the County’s and School Board’s Retirement Plan’s net fiduciary position have been
determined on the same basis as they were reported by the Virginia Retirement System (VRS).
For this purpose, benefit payments (including refunds of employee contributions) are recognized
when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
13.Other Postemployment Benefits (OPEB)
For purposes of measuring the net VRS related OPEB liabilities, deferred outflows of resources
and deferred inflows of resources related to the OPEB, and OPEB expense, information about the
fiduciary net position of the VRS GLI, HIC, and Teacher HIC OPEB Plans and the additions
to/deductions from the VRS OPEB Plans’ net fiduciary position have been determined on the
same basis as they were reported by VRS. In addition, benefit payments are recognized when
due and payable in accordance with the benefit terms. Investments are reported at fair value.
Health Insurance
The County and School Board offer retirees the option to remain on the health insurance plan
resulting in an implicit subsidy OPEB liability. For more information see the related note
disclosure.
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Packet Pg. 43 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
(continued)
14.Fund Balance
The County reports fund balance in accordance with current financial reporting standards. The
following classifications describe the relative strength of the spending constraints placed on the
purposes for which resources can be used:
Nonspendable fund balance –amounts that are not in spendable form (such as inventory
and prepaid expenditures) or are required to be maintained intact (corpus of a permanent
fund);
Restricted fund balance –amounts constrained to specific purposes by their providers
(such as grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation;
Committed fund balance –amounts constrained to specific purposes by a government
itself, using its highest level of decision-making authority; to be reported as committed,
amounts cannot be used for any other purpose unless the government takes the same
highest level action to remove or change the constraint;
Assigned fund balance –amounts a government intends to use for a specific purpose;
intent can be expressed by the governing body or by an official or body to which the
governing body delegates the authority;
Unassigned fund balance –amounts that are available for any purpose; positive amounts
are only reported in the general fund.
The Board of Supervisors is the County’s highest level of decision-making authority and a
resolution is required prior to the last day of the fiscal year in order to establish, modify, or
rescind a fund balance commitment. The amount subject to the constraint may be determined in
the subsequent period.
The County’s Board of Supervisors has authorized the Finance Director to assign fund balance in
accordance with the County’s fund balance policy.
The County will maintain an unassigned fund balance in the general fund equal to 10% of
expenditures/revenues. The County considers a balance of less than 10% to be cause for concern,
barring unusual, or deliberate circumstances.
The County considers restricted fund balance to be spent when an expenditure is incurred for
purposes for which restricted and unassigned, assigned, or committed fund balances are
available, unless prohibited by legal documents or contracts. When an expenditure is incurred
for purposes for which committed, assigned or unassigned amounts are available, the County
considers committed fund balance to be spent first, then assigned fund balance, and lastly
unassigned fund balance.
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Packet Pg. 44 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 1-Summary of Significant Accounting Policies: (continued)
D.Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
(continued)
15.Net Position
Net position is the difference between a) assets and deferred outflows of resources and (b)
liabilities and deferred inflows of resources. Net investment in capital assets represents capital
assets, less accumulated depreciation, less any outstanding debt related to the acquisition,
construction or improvement of those assets. Deferred outflows of resources and deferred
inflows of resources that are attributable to the acquisition, construction, or improvement of
those assets or related debt are also included in this component of net position.
16.Net Position Flow Assumption
Sometimes the County will fund outlays for a particular purpose from both restricted (e.g.,
restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts
to report as restricted –net position and unrestricted –net position in the government-wide and
proprietary fund financial statements, a flow assumption must be made about the order in which
the resources are considered to be applied. It is the County’s policy to consider restricted –net
position to have been depleted before unrestricted –net position is applied.
Note 2-Stewardship, Compliance, and Accountability:
A.Budgetary Information
The following procedures are used by the County in establishing the budgetary data reflected in the
financial statements:
1.Prior to March 30, the County Administrator submits to the Board of Supervisors a proposed
operating and capital budget for the fiscal year commencing the following July 1. The operating
and capital budget includes proposed expenditures and the means of financing them. All Funds
of the County have legally adopted budgets with the exception of Agency Funds.
2.Public hearings are conducted to obtain citizen comments.
3.Prior to June 30, the budget is legally enacted through passage of an Appropriations Resolution.
4.The Appropriations Resolution places legal restrictions on expenditures at the function level.
Only the Board of Supervisors can revise the appropriation for each department or category.
The County Administrator is authorized to transfer budgeted amounts within general
government departments; however, the School Board is authorized to transfer budgeted
amounts within the school system's categories.
5.Formal budgetary integration is employed as a management control device during the year for
the General Fund, Special Revenue Funds (except the School Fund) and the School Capital
Projects Funds. The School Operating Fund and School Capital Projects Fund are integrated
only at the level of legal adoption.
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Packet Pg. 45 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 2-Stewardship, Compliance, and Accountability:(Continued)
A.Budgetary Information (Continued)
6.All budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
7.Appropriations lapse on June 30, for all County units. The County's practice is to appropriate
Capital Projects by Project. Several supplemental appropriations were necessary during this
fiscal year.
8.Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to commit that portion of the applicable
appropriations, is not part of the County's accounting system.
B.Excess of expenditures over appropriations
At June 30, 2019, no departments had expenditures in excess of its appropriations.
C.Deficit fund equity
At June 30, 2019,no funds had deficit fund equity.
Note 3-Deposits and Investments:
Deposits
Deposits with banks are covered by the Federal Deposit Insurance Corporations (FDIC) and
collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section 2.2-
4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding public
deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth of
Virginia Treasury Board. Financial institutions may choose between two collateralization
methodologies and depending upon that choice, will pledge collateral that ranges in the amounts
from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized.
Investments
Statutes authorize the County to invest in obligations of the United States or agencies thereof,
obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank,
the African Development Bank, “prime quality” commercial paper and certain corporate notes,
banker's acceptances, repurchase agreements, and the State Treasurer's Local Government
Investment Pool (LGIP).
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Packet Pg. 46 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 3-Deposits and Investments: (Continued)
Custodial Credit Risk (Investments)
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the County will
not be able to recover the value of its investments or collateral securities that are in the possession
of an outside party. Neither the County nor its discretely presented component unit has an
investment policy for custodial credit risk. As of June 30, 2019, the County and the Component Unit
–School Board did not hold any investments that were subject to custodial credit risk.
Concentration of Credit Risk
At June 30, 2019, the County did not have any investments meeting the definition requiring
concentration of credit risk disclosures that exceeded 5% of total investments.
Credit Risk of Debt Securities
The County has not adopted an investment policy for credit risk. The County’s rated debt
investments as of June 30, 2019 were rated by Standard and Poor’s and/or an equivalent national
rating organization and the ratings are presented below using the Standard and Poor’s rating scale.
Rated Debt Investments Fair Quality Ratings
AAAm
SNAP 210,211$
County's Rated Debt Investments' Values
External Investment Pools
The value of the positions in the external investment pools (State Non-Arbitrage Pool) is the same as
the value of the pool shares. As SNAP is not SEC registered, regulatory oversight of the pool rests
with the Virginia State Treasury. SNAP is an amortized cost basis.There are no withdrawal
limitations or restrictions imposed on participants.
Interest Rate Risk
The County has not adopted an investment policy for interest rate risk. Investments subject to
interest rate risk are presented below along with their corresponding maturities.
Investment Type Fair Value Less than 1 year 1 - 5 years
SNAP 210,211$ 210,211$ -$
Certificates of Deposit 10,192,274 8,075,414 2,116,860
Total 10,402,485$ 8,285,625$ 2,116,860$
Investment Maturities (in years)
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Packet Pg. 47 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 4-Due from Other Governmental Units:
The following amounts represent receivables from other governments at year-end:
Primary Component Unit
Government School Board
Commonwealth of Virginia:
Local sales tax $422,912 $-
Communication sales tax 307,417 -
State sales tax - 1,198,474
Noncategorical aid 138,620 -
Categorical aid - shared expenses 466,927 -
Categorical aid - Virginia Public Assistance funds 112,165 -
Categorical aid - CSA funds 1,421,380 -
Categorical aid - other 914,483 13,665
Federal Government:
Categorical aid - Virginia Public Assistance funds 209,349 -
Categorical aid - Workforce Investment Act funds 287,269 -
Categorical aid - other 69,726 823,069
Totals $4,350,248 $2,035,208
Note 5-Interfund/Component-Unit Obligations:
Due from Due to
Primary Government/Primary Government/
Component Unit Component Unit
Primary Government:
General Fund -$ 1,431,926$
Component Unit - School Board:
School Fund 1,431,926$ -$
Fund
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Packet Pg. 48 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 5-Interfund/Component-Unit Obligations:(continued)
Interfund balances for the year ended June 30, 2019, consisted of the following:
Fund Due from Due to
Primary Government:
Major Governmental Funds:
General Fund $ 37,086 $ 293,360
Enterprise Funds:
Solid Waste Fund 293,360 -
Internal Service Funds:
Central Stores Fund - 37,086
Total $ 330,446 $ 330,446
All balances are the results of time lag between dates that interfund goods and services are provided or
reimbursable expenditures occur, transactions are recorded in the accounting system, and payments
between funds are made. The County expects all balances to be repaid within one year.
Interfund transfers for the year ended June 30, 2019, consisted of the following:
Transfers In Transfers Out
Primary Government:
Major Governmental Funds:
General Fund 389$ 1,764,131$
Industrial Development Fund 1,623,594 -
Enterprise Funds:- -
Solid Waste Fund 140,537 389
Total 1,764,520$ 1,764,520$
Fund
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in
the General Fund to finance various programs accounted for in other funds in accordance with budgeting
authorization.
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Packet Pg. 49 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 6-Long-Term Obligations:
Primary Government -Governmental Activities Indebtedness
The following is a summary of long-term obligation transactions of the County for the year ended
June 30, 2019:
Beginning
Balance,Increases/Decreases/Ending
as restated Issuances Retirements Bala nce
General obligation bonds $62,204,987 $- $(5,419,830)$56,785,157
Direct borrowings:
Lease revenue bonds 4,029,133 - (542,232) 3,486,901
Unamortized bond premiums 6,370,544 - (269,005) 6,101,539
Capital leases 10,848,512 153,290 (2,166,682) 8,835,120
Due to Commonwealth (CSA)750,000 - (250,000) 500,000
Compensated absences 1,284,206 1,044,886 (963,155) 1,365,937
Net pension liability 5,141,587 6,608,179 (6,581,740) 5,168,026
Net OPEB liabilities 3,529,000 406,580 (915,060) 3,020,520
Total $94,157,969 $8,212,935 $(17,107,704)$85,263,200
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending
June 30,Principal Interest Principal Interest
2020 5,649,045$ 2,358,693$ $450,319 $118,817
2021 5,899,907 2,085,304 285,116 105,572
2022 6,167,744 1,797,469 287,997 95,578
2023 6,453,720 1,493,991 290,966 85,480
2024 5,272,448 1,207,464 294,025 75,276
2025-2029 21,792,293 2,960,620 1,432,113 220,131
2030-2034 5,550,000 209,214 446,365 23,355
Totals 56,785,157$12,112,755$$3,486,901 $724,209
General Obligation Bonds Lease Revenue Bonds
Direct Borrowing
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Packet Pg. 50 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 6-Long-Term Obligations: (continued)
Primary Government -Governmental Activities Indebtedness:(continued)
Details of long-term indebtedness:
Final Amount of
Interest Issue Maturity Installment Original Total Amount Due
Rates Date Date Amounts Issue Amount Within One Year
General Obligation Bonds:
General obligation bond (2)3.00-5.00%8/21/2015 2/1/2030 $625,000-3,600,000 a+ $ 37,660,000 34,745,000$ 2,850,000$
General obligation bond (1)3.00-5.00%6/2/2016 6/15/2031 $605,000-1,150,000 a+ 13,275,000 11,320,000 725,000
General obligation bond (1)4.10-5.60%11/10/2004 7/15/2024 $999,906-1,010,000 a+ 15,735,749 5,585,157 879,045
General obligation bond 2.00-5.00%4/22/2010 3/1/2023 $1,189,963-1,414,500 a+ 12,485,000 5,135,000 1,195,000
Total general obligation bonds 56,785,157$ 5,649,045$
Direct Borrowings - Lease Revenue Bonds:
Revenue bond - IDA 3.59%1/30/2018 2/1/2028 $152,730-315,936 a+ $ 1,803,802 660,429$ 63,378$
Revenue bond - SSB 3.99%4/27/2006 7/15/2019 $244,017-271,292 a+ 2,900,000 168,000 168,000
QECB Energy Revenue Bond 3.47%1/20/2016 3/1/2031 $216,581-224,519 a+ 3,313,595 2,658,472 218,941
Total direct borrowings - lease revenue bonds 3,486,901$ 450,319$
Deferred amounts:
Plus:
Unamortized Premium 6,101,539$ 664,177$
Other Obligations:
Capital leases (Note 7)8,835,120$ 1,560,870$
Due to Commonwealth (CSA)500,000 250,000
Compensated absences 1,365,937 1,024,453
Net pension liability 5,168,026 -
Net OPEB liability 3,020,520 -
Total other obligations 18,889,603$ 2,835,323$
Total long-term obligations 85,263,200$ 9,598,864$
(1)Refunding bond
(2)Advanced refunding bond
(a+)annual principal installments shown does not include semi-annual interest installments
The remainder of this page left blank intentionally.
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Packet Pg. 51 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 6-Long-Term Obligations:(continued)
Primary Government –Business-type Activities Indebtedness
The following is a summary of long-term obligation transactions of the County for the year ended
June 30, 2019:
Beginning
Balance,Increases/Decreases/Ending
as restated Issuances Retirements Balance
Direct borrowings:
Lease revenue bonds $2,237,281 $- $(361,638) $1,875,643
Unamortized bond premiums 123,195 - (35,199) 87,996
Landfill closure/post-closure liability 3,046,216 123,274 - 3,169,490
Compensated absences 44,116 24,216 (33,087) 35,245
Net pension liability - 490,489 (270,832) 219,657
Net OPEB liabilities - 161,160 (32,779) 128,381
Total $5,450,808 $799,139 $(733,535) $5,516,412
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending
June 30,Principal Interest
2020 $375,066 $69,868
2021 393,510 53,689
2022 412,079 35,642
2023 105,776 24,001
2024 109,609 20,169
2025-2029 479,603 39,505
Totals $1,875,643 $242,874
Lease Revenue Bonds
Direct Borrowings
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 6-Long-Term Obligations:(continued)
Primary Government –Business-type Activities Indebtedness (continued)
Details of long-term indebtedness:
Final Amount of
Interest Issue Maturity Installment Original Total Amount Due
Rates Date Date Amounts Issue Amount Within One Year
Direct Borrowing - Lease Revenue Bonds:
Lease revenue bond 2.125-5.125%11/16/2011 11/1/2021 $268,616-317,944 a+ $ 2,555,000 885,000$ 280,000$
Lease revenue bond 3.59%1/30/2018 2/1/2028 $152,730-315,936 a+ $ 1,803,802 990,643 95,066
Total direct borrowing- lease revenue bonds 1,875,643$ 375,066$
Deferred amounts:
Plus:
Unamortized Premium 87,996$ 35,198$
Other Obligations:
Landfill closure/post-closure liability 3,169,490$ -$
Compensated absences 35,245 26,434
Net pension liability 219,657 -
Net OPEB liability 128,381 -
Total other obligations 3,552,773$ 26,434$
Total long-term obligations 5,516,412$ 436,698$
Collateral: The County’s lease revenue bond issued August 5, 2006 and the lease revenue bond issued
January 30, 2018 are secured by the Human Services building. The County’s lease revenue bond issued
November 16, 2011 for the landfill construction is secured by the County Administration (Moses) building.
Events of Default:The County’s general obligation bonds are subject to the state aid intercept
program.Under terms of the program, the County’s State aid is redirected to bond holders to cure any
event(s) of default.
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Packet Pg. 53 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 7-Capital Leases:
Primary Government
The School Board issued a lease purchase agreement to purchase school buses. The County entered into
a capital lease agreement to upgrade its E-911 equipment as well as improve its IT network. These lease
agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the
present value of their minimum lease payments at the date of inception.
The assets acquired through capital leases are as follows:
School County E-911
Buses Network Equipment Totals
Machinery and equipment $1,608,471 $ - $14,616,410 $16,224,881
Construction in progress - 153,290 - 153,290
Less: Accumulated depreciation (468,121) - (6,700,937) (7,169,058)
Net capital assets $1,140,350 $153,290 $7,915,473 $9,209,113
In addition to the above assets, the County has $1,098,137 cash and cash equivalents at year end relating
to the E-911 equipment lease issuance that will be used for improving the E-911 towers.
The future minimum lease obligations and the net present value of minimum lease payments as of June
30, 2019, were as follows:
Year Ending School County E-911
June 30, Buses Network Equipment Total
2020 $229,637 $53,053 $1,478,544 $1,761,234
2021 - 53,053 1,481,632 1,534,685
2022 - - 1,484,796 1,484,796
2023 - - 1,488,039 1,488,039
2024 - - 1,491,360 1,491,360
2025-2026 - - 1,806,967 1,806,967
Sub-total $229,637 $106,106 $9,231,338 $9,567,081
Less: Amount representing interest (3,416) (5,869) (722,676) (731,961)
Present Value of Lease Agreements $226,221 $100,237 $8,508,662 $8,835,120
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Packet Pg. 54 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 8-Long-Term Obligations-Component Unit School Board:
Discretely Presented Component Unit-School Board-Indebtedness
The following is a summary of long-term obligation transactions of the Component-Unit School Board for
the year ended June 30, 2019:
Beginning Increases/Decreases/Ending
Balance Issuances Retirements Balance
Compensated absences $1,683,975 $1,262,662 $(1,262,981) $1,683,656
Net pension liability 65,183,821 17,570,369 (17,697,226) 65,056,964
Net OPEB liabilities 18,712,000 2,403,869 (2,784,040) 18,331,829
Total $85,579,796 $21,236,900 $(21,744,247) $85,072,449
Details of long-term indebtedness:
Total Amount Due
Amount Within One Year
Other Obligations:
Compensated absences 1,683,656$ 1,262,742$
Net pension liability 65,056,964 -
Net OPEB liabilities 18,331,829 -
Total other obligations 85,072,449$ 1,262,742$
Total long-term obligations 85,072,449$ 1,262,742$
The remainder of this page left blank intentionally.
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Packet Pg. 55 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans:
Plan Description
All full-time, salaried permanent employees of the County and (nonprofessional) employees of public
school divisions are automatically covered by a VRS Retirement Plan upon employment. This is an agent
multiple-employer plan administered by the Virginia Retirement System (the System) along with plans for
other employer groups in the Commonwealth of Virginia. Members earn one month of service credit for
each month they are employed and for which they and their employer pay contributions to VRS. Members
are eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as
amended. Eligible prior service that may be purchased includes prior public service, active military
service, certain periods of leave, and previously refunded service.
Benefit Structures
The System administers three different benefit structures for covered employees –Plan 1, Plan 2 and
Hybrid.Each of these benefit structures has different eligibility criteria, as detailed below.
a.Employees hired before July 1, 2010, vested as of January 1, 2013, and have not taken a refund,
are covered under Plan 1, a defined benefit plan. Non-hazardous duty employees are eligible for
an unreduced retirement benefit beginning at age 65 with at least 5 years of creditable service or
age 50 with at least 30 years of creditable service. Non-hazardous duty employees may retire
with a reduced benefit as early as age 55 with at least 5 years of creditable service or age 50
with at least 10 years of creditable service. Hazardous duty employees (law enforcement officers,
firefighters, and sheriffs) are eligible for an unreduced benefit beginning at age 60 with at least 5
years of creditable service or age 50 with at least 25 years of creditable service. Hazardous duty
employees may retire with a reduced benefit as early as age 50 with at least 5 years of creditable
service.
b.Employees hired on or after July 1, 2010, or their membership date is before July 1, 2010, and
they were not vested as of January 1, 2013 are covered under Plan 2, a defined benefit plan.
Non-hazardous duty employees are eligible for an unreduced benefit beginning at their normal
social security retirement age with at least 5 years of creditable service or when the sum of their
age and service equals 90. Non-hazardous duty employees may retire with a reduced benefit as
early as age 60 with at least 5 years of creditable service.Hazardous duty employees are eligible
for an unreduced benefit beginning at age 60 with at least 5 years of creditable service or age 50
with at least 25 years of creditable service. Hazardous duty employees may retire with a reduced
benefit as early as age 50 with at least 5 years of creditable service.
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Packet Pg. 56 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Benefit Structures (continued)
c.Non-hazardous duty employees hired on or after January 1, 2014 are covered by the Hybrid Plan
combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan
2 members also had the option of opting into this plan during the election window held January 1
–April 30, 2014 with an effective date of July 1, 2014.Employees covered by this plan are
eligible for an unreduced benefit beginning at their normal social security retirement age with at
least 5 years of creditable service, or when the sum of their age and service equal 90. Employees
may retire with a reduced benefit as early as age 60 with at least 5 years of creditable service.
For the defined contribution component, members are eligible to receive distributions upon
leaving employment, subject to restrictions.
Average Final Compensation and Service Retirement Multiplier
The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage
of the employee’s average final compensation multiplied by the employee’s total creditable service.
Under Plan 1, average final compensation is the average of the employee’s 36 consecutive months of
highest compensation and the multiplier is 1.7% for non-hazardous duty employees, 1.85% for sheriffs and
regional jail superintendents,and 1.7% or 1.85% for hazardous duty employees as elected by the
employer. Under Plan 2, average final compensation is the average of the employee’s 60 consecutive
months of highest compensation and the retirement multiplier is 1.65% for non-hazardous duty
employees, 1.85% for sheriffs and regional jail superintendents,and 1.7% or 1.85% for hazardous duty
employees as elected by the employer. Under the Hybrid Plan, average final compensation is the average
of the employee’s 60 consecutive months of highest compensation and the multiplier is 1.00%. For
members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for
those plans will be used to calculate the retirement benefit for service credited in those plans.
Cost-of-Living Adjustment (COLA) in Retirement and Death and Disability Benefits
Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of creditable service
are eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date.
Retirees with a reduced benefit and who have less than 20 years of creditable service are eligible for an
annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility
date.Under Plan 1, the COLA cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA cannot
exceed 3.00%. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia, as
amended, assigns the authority to establish and amend benefit provisions to the General Assembly of
Virginia.
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Packet Pg. 57 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Employees Covered by Benefit Terms
As of the June 30, 2017 actuarial valuation, the following employees were covered by the benefit terms
of the pension plan:
Component Unit
Primary School Board
Government Nonprofessional
Inactive members or their beneficiaries currently receiving benefits 238 173
Inactive members:
Vested inactive members 38 12
Non-vested inactive members 73 40
Inactive members active elsewhere in VRS 90 32
Total inactive members 201 84
Active members 344 141
Total covered employees 783 398
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as
amended, but may be impacted as a result of funding options provided to political subdivisions by the
Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward
their retirement.
The County’s contractually required employee contribution rate for the year ended June 30, 2019 was
9.60% of covered employee compensation. This rate was based on an actuarially determined rate from
an actuarial valuation as of June 30,2017.
This rate, when combined with employee contributions, was expected to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the County were $1,353,100 and $1,392,480 for the
years ended June 30, 2019 and June 30, 2018, respectively.
The Component Unit School Board’s contractually required employee contribution rate for
nonprofessional employees for the year ended June 30, 2019 was 7.52%of covered employee
compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of
June 30, 2017.
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Packet Pg. 58 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Contributions (continued)
This rate, when combined with employee contributions, was expected to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the Pittsylvania County School Board’s nonprofessional
employees were $203,666 and $214,640 for the years ended June 30, 2019 and June 30, 2018,
respectively.
Net Pension Liability
The net pension liability (NPL) is calculated separately for each employer and represents that particular
employer’s total pension liability determined in accordance with GASB Statement No. 68, less that
employer’s fiduciary net position.The County’s and Component Unit School Board’s (nonprofessional) net
pension liabilities were measured as of June 30, 2018. The total pension liabilities used to calculate the
net pension liabilities were determined by an actuarial valuation performed as of June 30, 2017, and
rolled forward to the measurement date of June 30, 2018.
Actuarial Assumptions –General Employees
The total pension liability for General Employees in the County’s and Component Unit School Board’s
(nonprofessional) Retirement Plan was based on an actuarial valuation as of June 30, 2017, using the
Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in
the measurement and rolled forward to the measurement date of June 30, 2018.
Inflation 2.5%
Salary increases, including inflation 3.5% - 5.35%
Investment rate of return 7.0%, net of pension plan investment
expenses, including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0%to simplify preparation of pension liabilities.
Mortality rates:
Largest 10 –Non-Hazardous Duty: 20% of deaths are assumed to be service related
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with
scale BB to 2020; males 95% of rates; females 105% of rates.
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Packet Pg. 59 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Actuarial Assumptions –General Employees (continued)
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected
with scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from
ages 70 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years,
110% of rates; females 125% of rates.
All Others (Non 10 Largest) –Non-Hazardous Duty: 15% of deaths are assumed to be service related
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with
scale BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to
90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years,
110% of rates; females 125% of rates.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Largest 10 –Non-Hazardous Duty:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered rates at older ages and changed final
retirement from 70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates Lowered rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 20%
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Packet Pg. 60 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Actuarial Assumptions –General Employees (continued)
All Others (Non 10 Largest) –Non-Hazardous Duty:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered rates at older ages and changed final
retirement from 70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates Lowered rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 15%
Actuarial Assumptions –Public Safety Employees with Hazardous Duty Benefits
The total pension liability for Public Safety employees with Hazardous Duty Benefits in the County’s
Retirement Plan was based on an actuarial valuation as of June 30, 2017, using the Entry Age Normal
actuarial cost method and the following assumptions, applied to all periods included in the measurement
and rolled forward to the measurement date of June 30, 2018.
Inflation 2.5%
Salary increases, including inflation 3.5% – 4.75%
Investment rate of return 7.0%, net of pension plan investment
expenses, including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0% to simplify preparation of pension liabilities.
Mortality rates:
Largest 10 –Hazardous Duty: 70% of deaths are assumed to be service related
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with
scale BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected
with scale BB to 2020; males set forward 1 year, 1.0% increase compounded from ages 70 to
90; females set forward 3 years.
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Packet Pg. 61 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Actuarial Assumptions –Public Safety Employees with Hazardous Duty Benefits (continued)
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years;
unisex using 100% male.
All Others (Non 10 Largest) –Hazardous Duty: 45% of deaths are assumed to be service related
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with
scale BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 1 year, 1.0%increase compounded from ages 70 to 90;
females set forward 3 years.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years;
unisex using 100% male.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Largest 10 –Hazardous Duty:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered rates at older ages
Withdrawal Rates Adjusted rates to better fit experience
Disability Rates Increased rates
Salary Scale No change
Line of Duty Disability Increased rate from 60% to 70%
All Others (Non 10 Largest) –Hazardous Duty:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Increased age 50 rates, and lowered rates at older ages
Withdrawal Rates
Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates Adjusted rates to better fit experience
Salary Scale No change
Line of Duty Disability Decreased rate from 60% to 45%
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Packet Pg. 62 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Long-term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of pension System investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.
The target asset allocation and best estimate of arithmetic real rates of return for each major asset class
are summarized in the following table:
Arithmetic Weighted Average
Target Expected Long-term Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return
Public Equity 40.00%4.54%1.82%
Fixed Income 15.00%0.69%0.10%
Credit Strategies 15.00%3.96%0.59%
Real Assets 15.00%5.76%0.86%
Private Equity 15.00%9.53%1.43%
Total 100.00%4.80%
Inflation 2.50%
*Expected arithmetic nominal return 7.30%
* The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for
the system, stochastic projections are employed to model future returns under various economic
conditions. The results provide a range of returns over various time periods that ultimately provide a
median return of 6.83%, including expected inflation of 2.50%.
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows
used to determine the discount rate assumed that System member contributions will be made per the
VRS Statutes and the employer contributions will be made in accordance with the VRS funding policy at
rates equal to the difference between actuarially determined contribution rates adopted by the VRS
Board of Trustees and the member rate. Consistent with the phased-in funding provided by the General
Assembly for state and teacher employer contributions; the County and Component Unit School Board
(nonprofessional)was also provided with an opportunity to use an alternative employer contribution
rate. For the year ended June 30, 2018, the alternate rate was the employer contribution rate used in FY
2012 or 90% of the actuarially determined employer contribution rate from the June 30, 2015 actuarial
valuations, whichever was greater. Through the fiscal year ended June 30, 2018, the rate contributed by
the school division for the VRS Teacher Retirement Plan was subject to the portion of the VRS Board-
certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially
determined contribution rate.
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Packet Pg. 63 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Discount Rate (continued)
From July 1, 2018 on, participating employers and school divisions are assumed to continue to contribute
100% of the actuarially determined contribution rates. Based on those assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore,the long-term expected rate of return was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2017 $66,801,952 $61,660,365 $5,141,587
Changes for the year:
Service cost $1,552,874 $- $1,552,874
Interest 4,557,967 - 4,557,967
Benefit changes 260,443 - 260,443
Differences between expected
and actual experience 474,277 - 474,277
Contributions - employer - 1,392,480 (1,392,480)
Contributions - employee - 716,663 (716,663)
Net investment income - 4,533,806 (4,533,806)
Benefit payments, including refunds
of employee contributions (3,376,271) (3,376,271) -
Administrative expenses - (39,457) 39,457
Other changes - (4,027) 4,027
Net changes $3,469,290 $3,223,194 $246,096
Balances at June 30, 2018 $70,271,242 $64,883,559 $5,387,683
Primary Government
Increase (Decrease)
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Packet Pg. 64 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Changes in Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2017 $14,098,040 $13,429,219 $668,821
Changes for the year:
Service cost $284,563 $- $284,563
Interest 953,988 - 953,988
Differences between expected
and actual experience 107,647 - 107,647
Contributions - employer - 214,640 (214,640)
Contributions - employee - 133,817 (133,817)
Net investment income - 976,204 (976,204)
Benefit payments, including refunds
of employee contributions (939,281) (939,281) -
Administrative expenses - (8,749) 8,749
Other changes - (857) 857
Net changes $406,917 $375,774 $31,143
Balances at June 30, 2018 $14,504,957 $13,804,993 $699,964
Component Unit - School Board (nonprofessional)
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the County and Pittsylvania County School Board
(nonprofessional)using the discount rate of 7.00%, as well as what the County’s and Pittsylvania County
School Board’s (nonprofessional) net pension liability would be if it were calculated using a discount rate
that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.00%) (7.00%)(8.00%)
County
Net Pension Liability (Asset)$14,029,300 $5,387,683 $(1,841,007)
Component Unit School Board (nonprofessional)
Net Pension Liability (Asset)$2,256,556 $699,964 $(621,223)
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Packet Pg. 65 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2019, the County and Component Unit School Board (nonprofessional)
recognized pension expense of $685,130 and ($147,169), respectively. At June 30, 2019, the County and
Component Unit School Board (nonprofessional) reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual
experience $332,702 $168,374 $58,493 $32,119
Change in assumptions - 75,131 - 19,410
Net difference between projected and actual
earnings on pension plan investments - 516,878 - 101,949
Changes in proportion and differences between employer
contributions and proportionate share of contributions 157,217 157,217 - -
Employer contributions subsequent to the
measurement date 1,353,100 - 203,666 -
Total $1,843,019 $917,600 $262,159 $153,478
Component Unit-School
Primary Government Board (nonprofessional)
$1,353,100 and $203,666 reported as deferred outflows of resources related to pensions resulting from
the County’s and Component Unit School Board’s (nonprofessional)contributions, respectively,
subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the
fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized in pension expense in future reporting periods
as follows:
Component Unit
Primary School Board
Year Ended June 30 Government (nonprofessional)
2020 $165,525 $52,142
2021 44,081 3,394
2022 (584,596) (139,087)
2023 (52,691) (11,434)
2024 - -
Thereafter - -
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Packet Pg. 66 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued
VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR may be
downloaded from the VRS website at http:www.varetire.org/Pdf/Publications/2018-annual-report.pdf,
or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500.
Component Unit School Board (professional)
Plan Description
All full-time, salaried permanent (professional) employees of public school divisions are automatically
covered by the VRS Teacher Retirement Plan upon employment. This is a cost-sharing multiple employer
plan administered by the Virginia Retirement System (the system). Additional information related to the
plan description is included in the first section of this note.
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as
amended, but may be impacted as a result of funding provided to school divisions by the Virginia General
Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.
Each school division’s contractually required employer contribution rate for the year ended June 30,
2019 was 15.68% of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2017. The actuarially determined rate, when combined
with employee contributions, was expected to finance the costs of benefits earned by employees during
the year, with an additional amount to finance any unfunded accrued liability. Contributions to the
pension plan from the school division were $6,854,257 and $7,075,682 for the years ended June 30, 2019
and June 30, 2018, respectively.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2019, the school division reported a liability of $64,357,000 for its proportionate share of the
Net Pension Liability. The Net Pension Liability was measured as of June 30, 2018 and the total pension
liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that
date. The school division’s proportion of the Net Pension Liability was based on the school division’s
actuarially determined employer contributions to the pension plan for the year ended June 30, 2018
relative to the total of the actuarially determined employer contributions for all participating employers.
At June 30, 2018, the school division’s proportion was 0.54725% as compared to 0.52460% at June 30,
2017.
For the year ended June 30, 2019, the school division recognized pension expense of $4,774,000. Since
there was a change in proportionate share between measurement dates, a portion of the pension
expense was related to deferred amounts from changes in proportion and from differences between
employer contributions and the proportionate share of employer contributions.
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Packet Pg. 67 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Component Unit School Board (professional)(continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions (continued)
At June 30, 2019, the school division reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $- $5,503,000
Change in assumptions 768,000 -
Net difference between projected and actual earnings
on pension plan investments - 1,365,000
Changes in proportion and differences between employer
contributions and proportionate share of contributions 3,011,000 625,000
Employer contributions subsequent to the
measurement date 6,854,257 -
Total $10,633,257 $7,493,000
Board (professional)
Component Unit-School
$6,854,257 reported as deferred outflows of resources related to pensions resulting from the school
division’s contributions subsequent to the measurement date will be recognized as a reduction of the Net
Pension Liability in the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense in
future reporting periods as follows:
Component Unit
School Board
Year Ended June 30 (professional)
2020 $(71,000)
2021 (987,000)
2022 (2,421,000)
2023 (297,000)
2024 62,000
Thereafter -
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Packet Pg. 68 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Component Unit School Board (professional)(continued)
Actuarial Assumptions
The total pension liability for the VRS Teacher Retirement Plan was based on an actuarial valuation as of
June 30, 2017, using the Entry Age Normal actuarial cost method and the following assumptions, applied
to all periods included in the measurement and rolled forward to the measurement date of June 30,
2018.
Inflation 2.5%
Salary increases, including inflation 3.5% – 5.95%
Investment rate of return 7.0%, net of pension plan investment
expenses, including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0% to simplify preparation of pension liabilities.
Mortality rates:
Pre-Retirement:
RP-2014 White Collar Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81
and older projected with scale BB to 2020.
Post-Retirement:
RP-2014 White Collar Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50
and older projected with scale BB to 2020; males 1% increase compounded from ages 70 to 90;
females set back 3 years with 1.5% increase compounded from ages 65 to 75 and 2.0% increase
compounded from ages 75 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with Scale BB to 2020; 115% of rates for males and
females.
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Packet Pg. 69 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Component Unit School Board (professional)(continued)
Actuarial Assumptions (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates
Lowered rates at older ages and changed final
retirement from 70 to 75
Withdrawal Rates
Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Net Pension Liability
The net pension liability (NPL) is calculated separately for each system and represents that particular
system’s total pension liability determined in accordance with GASB Statement No. 67, less that system’s
fiduciary net position. As of June 30, 2018, NPL amounts for the VRS Teacher Employee Retirement Plan
is as follows (amounts expressed in thousands):
Teacher Employee
Retirement Plan
Total Pension Liability $46,679,555
Plan Fiduciary Net Position 34,919,563
Employers' Net Pension Liability (Asset)$81,599,118
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 74.81%
The total pension liability is calculated by the System’s actuary, and each plan’s fiduciary net position is
reported in the System’s financial statements. The net pension liability is disclosed in accordance with
the requirements of GASB Statement No. 67 in the System’s notes to the financial statements and
required supplementary information.
The long-term expected rate of return and discount rate information previously described also apply to
this plan.
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Packet Pg. 70 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 9―Pension Plans: (continued)
Component Unit School Board (professional)(continued)
Sensitivity of the School Division’s Proportionate Share of the Net Pension Liability to Changes in
the Discount Rate
The following presents the school division’s proportionate share of the net pension liability using the
discount rate of 7.00%, as well as what the school division’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or
one percentage point higher (8.00%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.00%) (7.00%)(8.00%)
School division's proportionate share of the
VRS Teacher Employee Retirement Plan
Net Pension Liability (Asset)$98,307,000 $64,357,000 $36,256,000
Pension Plan Fiduciary Net Position
Detailed information about the VRS Teacher Retirement Plan’s Fiduciary Net Position is available in the
separately issued VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2018-annual-
report.pdf,or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-
2500.
Primary Government and Component Unit School Board
Aggregate Pension Information
Net Pension Net Pension
Deferred Deferred Liability Pension Deferred Deferred Liability Pension
Outflows Inflows (Asset)Expense Outflows Inflows (Asset)Expense
VRS Pension Plans:
Primary Government 1,843,019$917,600$5,387,683$685,130$-$ -$ -$ -$
School Board Nonprofessional - - - - 262,159 153,478 699,964 (147,169)
School Board Professional - - - - 10,633,257 7,493,000 64,357,000 4,774,000
Totals 1,843,019$917,600$5,387,683$685,130$10,895,416$7,646,478$65,056,964$4,626,831$
Primary Government Component Unit School Board
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Packet Pg. 71 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 10―Other Postemployment Benefits –Health Insurance:
Plan Description
In addition to the pension benefits described in Note 9, the County and School Board participate in a
cost-sharing defined benefit healthcare plan, the Pittsylvania County Post-Retirement Medical Plan
(PPRMP). Several entities participate in the defined benefit healthcare plan through the County of
Pittsylvania, Virginia and the participating entities report their proportionate information on the basis of
a cost-sharing plan. The benefit provisions, including employer and employee contributions, are
governed by the Board of Supervisors and can be amended through board action. The PPRMP does not
issue a publicly available financial report.
Benefits Provided
PPRMP provides health insurance benefits to eligible retirees and their spouses. To be eligible,
employees must meet the age and service criteria for retirement benefits under VRS, which requires that
the employee be (1) age 50 with 10 years of service; (2) age 55 with 5 years of service; or (3) age 65 with
5 years of service. Additionally, the employee must be of full-time status in VRS and must be covered by
the active plan at the time of retirement. Coverage continues as documented below:
County:
Medical Coverage:
o Retiree pays 100% of Pre-65 premium.
o Retiree pays 100% of spousal premium.
o Medicare eligible retirees pay 100% of carve out premium for retiree and spouse.
o Effective 10/1/2017, the County no longer allows post 65 retirees to elect coverage
but still has 4 retirees that are grandfathered into the plan.
Dental Coverage:
o Retiree pays 100% of employee premium less $12 monthly County credit.
o Retiree pays 100% of premium for spouse.
o Coverage stops at death.
School Board:
Medical Coverage:
o Retiree pays 100% of employee premium.
o Retiree pays 100% of spousal premium.
o Coverage stops at age 65.
Dental Coverage:
o Retiree pays 100% of employee premium less $12 monthly County credit.
o Retiree pays 100% of premium for spouse.
o Coverage stops at death.
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Packet Pg. 72 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 10―Other Postemployment Benefits –Health Insurance: (Continued)
Contributions
The County and School Board do not pre-fund benefits; therefore, no assets are accumulated in a trust
fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis.
The funding requirements are established and may be amended by the Board of Supervisors. The amount
paid by the County and School Board for OPEB as the benefits came due during the year ended June 30,
2019 was $104,000 and $741,000, respectively.
Actuarial Assumptions
The total OPEB liability in the July 1, 2018 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate
Mortality Rates The mortality rates were based on the RP-2014 Mortality Table fully
generational,with base year 2006,projected using two-dimensional mortality
improvement scale MP-2018.
Medical Trend Rate The healthcare trend rate assumption starts at 7.00%for 2019 decreasing by
0.33% per year to an ultimate rate of 5.00%
Salary Increase Rates The salary increase is 2.50% as of July 1, 2018
3.62% as of July 1, 2018
Retirement Age Retirement is assumed to occur beginning once a participant attains age 55
and completes 5 years of service or age 50 and completes 10 years of service.
Participation Percentage 50%of active participants who retire at age 50 or greater are assumed to elect
coverage in retirement.25%of their spouses are assumed to elect coverage
in retirement.100%of actives who become disabled are assumed to elect
coverage.
The actuarial assumptions used in the July 1, 2018 valuation were based on July 1, 2017 valuation data
rolled forward to the measurement date. The methods, assumptions, and participant data used can be
found in the July 1, 2018 actuarial valuation report.
Discount Rate
The discount rate used to measure the total OPEB liability was 3.62% based on the Fidelity Index’s “20-
year Municipal GO AA Index” as of July 1, 2018.
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Packet Pg. 73 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 10―Other Postemployment Benefits –Health Insurance: (Continued)
Sensitivity of the Employer’s Proportionate Share of the Total OPEB Liability to Changes in the
Discount Rate
The following amounts present the total OPEB liability of the County and School Board, as well as what
the total OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower (2.62%) or one percentage point higher (4.62%) than the current discount rate:
1% Decrease Current 1% Increase
(2.62%)(3.62%)(4.62%)
Primary Government 1,917,908$ 1,741,000$ 1,582,432$
Component Unit - School Board 8,015,337 7,276,000 6,613,312
Discount Rate
Sensitivity of the Employer’s Proportionate Share of the Total OPEB Liability to Changes in the
Healthcare Cost Trend Rates
The following presents the total OPEB liability of the County and School Board, as well as what the total
OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage
point lower or one percentage point higher than the current healthcare cost trend rates:
1% Decrease Current 1% Increase
Primary Government 1,566,575$ 1,741,000$ 1,946,756$
Component Unit - School Board 6,547,043 7,276,000 8,135,898
Healthcare Cost Trend
Net OPEB Liabilities, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources
At June 30, 2019, the County and School Board reported a liability of $1,741,000 and $7,276,000,
respectively, for their proportionate share of the total OPEB Liability. The total OPEB Liability was
measured as of July 1, 2018 and the total OPEB liability used to calculate the total OPEB Liability was
determined by an actuarial valuation as of July 1, 2018 and rolled forward to that date. At June 30, 2019
and 2018, the County’s proportion was 19.10% and 20.79%, respectively. At June 30, 2019 and 2018, the
School Board’s proportion was 79.84% and 78.20%,respectively.
For the year ended June 30, 2019, the County and School Board recognized OPEB expense in the amount
of $113,000 and $498,000, respectively.
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Packet Pg. 74 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 10―Other Postemployment Benefits –Health Insurance: (Continued)
At June 30, 2019, the employer reported deferred outflows of resources and deferred inflows of
resources related to the OPEB from the following sources:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual
experience $- $345,000 $89,000 $-
Change in assumptions - 65,000 - 627,000
Net difference between projected and actual
earnings on OPEB plan investments - - - -
Employer contributions subsequent to the
measurement date 104,000 - 741,000 -
Total $104,000 $410,000 $830,000 $627,000
Component Unit
Primary Government School Board
$104,000 and $741,000, respectively, are reported as deferred outflows of resources related to OPEB
resulting from the County’s and School Board’s contributions subsequent to the measurement date will
be recognized as a reduction of the total OPEB liability in the fiscal year ending June 30, 2020.Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to the
OPEB will be recognized in the OPEB expense in future reporting periods as follows:
Primary Component Unit
Year Ended June 30 Government School Board
2020 $(61,000) $(80,000)
2021 (61,000) (80,000)
2022 (61,000) (80,000)
2023 (61,000) (80,000)
2024 (61,000) (80,000)
Thereafter (105,000) (138,000)
Additional disclosures on changes in total OPEB liability, related ratios, and employer contributions can
be found in the required supplementary information following the notes to the financial statements.
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11―Group Life Insurance (GLI) Program (OPEB Plan):
Plan Description
The Group Life Insurance (GLI) Program was established pursuant to §51.1-500 et seq.of the Code of
Virginia, as amended, and which provides the authority under which benefit terms are established or
may be amended. All full-time, salaried permanent employees of the state agencies, teachers, and
employees of participating political subdivisions are automatically covered by the VRS GLI Program upon
employment. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement
System (the System), along with pensions and other OPEB plans, for public employer groups in the
Commonwealth of Virginia.
In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for
themselves as well as a spouse or dependent children through the Optional GLI Program. For members
who elect the optional group life insurance coverage, the insurer bills employers directly for the
premiums. Employers deduct these premiums from members’ paychecks and pay the premiums to the
insurer. Since this is a separate and fully insured program, it is not included as part of the GLI Program
OPEB.
The specific information for GLI OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
The GLI Program was established July 1, 1960, for state employees, teachers, and employees of political
subdivisions that elect the program. Basic GLI coverage is automatic upon employment. Coverage ends
for employees who leave their position before retirement eligibility or who take a refund of their
accumulated retirement member contributions and accrued interest.
Benefit Amounts
The GLI Program is a defined benefit plan with several components. The natural death benefit is equal to
the employee’s covered compensation rounded to the next highest thousand and then doubled. The
accidental death benefit is double the natural death benefit. In addition to basic natural and accidental
death benefits, the program provides additional benefits provided under specific circumstances that
include the following: accidental dismemberment benefit, safety belt benefit, repatriation benefit,
felonious assault benefit, and accelerated death benefit option. The benefit amounts are subject to a
reduction factor. The benefit amount reduces by 25% on January 1 following one calendar year of
separation. The benefit amount reduces by an additional 25% on each subsequent January 1 until it
reaches 25% of its original value. For covered members with at least 30 years of creditable service, the
minimum benefit payable was set at $8,000 by statute. The amount is increased annually based on the
VRS Plan 2 cost-of-living adjustment and was increased to $8,279 effective July 1, 2018.
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Packet Pg. 76 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Contributions
The contribution requirements for the GLI Program are governed by §51.1-506 and §51.1-508 of the Code
of Virginia, as amended, but may be impacted as a result of funding provided to state agencies and
school divisions by the Virginia General Assembly. The total rate for the GLI Program was 1.31% of
covered employee compensation. This was allocated into an employee and an employer component using
a 60/40 split. The employee component was 0.79% (1.31% x 60%) and the employer component was 0.52%
(1.31% x 40%). Employers may elect to pay all or part of the employee contribution; however, the
employer must pay all of the employer contribution. Each employer’s contractually required employer
contribution rate for the year ended June 30, 2019 was 0.52% of covered employee compensation. This
rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2017. The
actuarially determined rate, when combined with employee contributions, was expected to finance the
costs of benefits payable during the year, with an additional amount to finance any unfunded accrued
liability.
Contributions to the Group Life Insurance Program from the County were $76,404 and $76,806 for the
years ended June 30, 2019 and June 30, 2018, respectively.
Contributions to the Group Life Insurance Program from the Component Unit School Board
(nonprofessional) were $14,898 and $14,609 for the years ended June 30, 2019 and June 30, 2018,
respectively.
Contributions to the Group Life Insurance Program from the Component Unit School Board (professional)
were $231,359 and $229,700 for the years ended June 30, 2019 and June 30, 2018, respectively.
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to the GLI Program OPEB
Primary Government
At June 30, 2019,the entity reported a liability of $1,181,000 for its proportionate share of the Net GLI
OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2018 and the total GLI OPEB
liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation as of that
date. The covered employer’s proportion of the Net GLI OPEB Liability was based on the covered
employer’s actuarially determined employer contributions to the GLI Program for the year ended June
30, 2018 relative to the total of the actuarially determined employer contributions for all participating
employers. At June 30, 2018, the participating employer’s proportion was 0.0777%as compared to
0.0776% at June 30, 2017.
For the year ended June 30, 2019, the participating employer recognized GLI OPEB expense of $11,000.
Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB
expense was related to deferred amounts from changes in proportion.
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Packet Pg. 77 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to the GLI Program OPEB (continued)
Component Unit School Board (nonprofessional)
At June 30, 2019, the entity reported a liability of $224,000 for its proportionate share of the Net GLI
OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2018 and the total GLI OPEB
liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation as of that
date. The covered employer’s proportion of the Net GLI OPEB Liability was based on the covered
employer’s actuarially determined employer contributions to the GLI Program for the year ended June
30, 2018 relative to the total of the actuarially determined employer contributions for all participating
employers. At June 30, 2018, the participating employer’s proportion was 0.0148% as compared to
0.0154% at June 30, 2017.
Component Unit School Board (professional)
At June 30, 2019, the entity reported a liability of $3,529,000 for its proportionate share of the Net GLI
OPEB Liability.The Net GLI OPEB Liability was measured as of June 30, 2018 and the total GLI OPEB
liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation as of that
date. The covered employer’s proportion of the Net GLI OPEB Liability was based on the covered
employer’s actuarially determined employer contributions to the GLI Program for the year ended June
30, 2018 relative to the total of the actuarially determined employer contributions for all participating
employers. At June 30, 2018, the participating employer’s proportion was 0.2324% as compared to
0.2242% at June 30, 2017.
For the year ended June 30, 2019, the participating employer recognized GLI OPEB expense of $47,000.
Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB
expense was related to deferred amounts from changes in proportion.
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Packet Pg. 78 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to the GLI Program OPEB (continued)
At June 30, 2019, the employer reported deferred outflows of resources and deferred inflows of
resources related to the GLI OPEB from the following sources:
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
Differences between expected
and actual experience 58,000$ 22,000$ 11,000$ 5,000$ 173,000$ 63,000$
Net difference between projected
and actual earnings on GLI OPEB
program investments - 38,000 - 7,000 - 115,000
Change in assumptions - 49,000 - 9,000 - 147,000
Changes in proportion 6,000 - - 9,000 116,000 -
Employer contributions subsequent
to the measurement date 76,404 - 14,898 - 231,359 -
Total 140,404$ 109,000$ 25,898$ 30,000$ 520,359$ 325,000$
Component Unit School Component Unit School
Primary Government Board (nonprofessional)Board (professional)
$76,404, $14,898, and $231,359 reported as deferred outflows of resources related to the GLI OPEB
resulting from the employer’s contributions subsequent to the measurement date will be recognized as a
reduction of the Net GLI OPEB Liability in the fiscal year ending June 30, 2020. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to the GLI OPEB will be
recognized in the GLI OPEB expense in future reporting periods as follows:
Component Unit Component Unit
Primary School Board School Board
Year Ended June 30 Government (nonprofessional)(professional)
2020 (16,000)$ (5,000)$ (30,000)$
2021 (16,000) (5,000) (30,000)
2022 (16,000) (5,000) (30,000)
2023 (5,000) (4,000) 3,000
2024 6,000 - 33,000
Thereafter 2,000 - 18,000
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Packet Pg. 79 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Actuarial Assumptions
The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2017, using the Entry Age
Normal actuarial cost method and the following assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2018. The assumptions include
several employer groups as noted below. Mortality rates included herein are for relevant employer
groups. Information for other groups can be referenced in the VRS CAFR.
Inflation 2.5%
Salary increases, including inflation:
General state employees 3.5%–5.35%
Teachers 3.5%-5.95%
SPORS employees 3.5%-4.75%
VaLORS employees 3.5%-4.75%
JRS employees 4.5%
Locality - General employees 3.5%-5.35%
Locality - Hazardous Duty employees 3.5%-4.75%
Investment rate of return 7.0%, net of investment expenses,
including inflation*
*Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0% to simplify preparation of OPEB liabilities.
Mortality Rates –Teachers
Pre-Retirement:
RP-2014 White Collar Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81
and older projected with scale BB to 2020.
Post-Retirement:
RP-2014 White Collar Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50
and older projected with scale BB to 2020; males 1% increase compounded from ages 70 to 90;
females set back 3 years with 1.5% increase compounded from ages 65 to 70 and 2.0% increase
compounded from ages 75 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; 115% of rates for males and
females.
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Packet Pg. 80 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Actuarial Assumptions (continued)
Mortality Rates –Teachers (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an
actuarial experience study for the period from July 1, 2012 through June 30, 2016. Changes to the
actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered rates at older ages and changed final
retirement from 70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Mortality Rates –Largest Ten Locality Employers –General Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to
90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years,
110% of rates; females 125% of rates.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages and extended
final retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at
each age and service year
Disability Rates Lowered disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 20%
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Packet Pg. 81 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Actuarial Assumptions (continued)
Mortality Rates –Non-Largest Ten Locality Employers –General Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to
90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years,
110% of rates; females 125% of rates.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages and extended
final retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at
each age and service year
Disability Rates Lowered disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 15%
Mortality Rates –Largest Ten Locality Employers –Hazardous Duty Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90;
females set forward 3 years.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years;
unisex using 100% male.
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5.a.a
Packet Pg. 82 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI)Program (OPEB Plan):(continued)
Actuarial Assumptions (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at
each age and service year
Disability Rates Increased disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 60% to 70%
Mortality Rates –Non-Largest Ten Locality Employers –Hazardous Duty Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90;
females set forward 3 years.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years;
unisex using 100% male.
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Packet Pg. 83 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Actuarial Assumptions (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Increased age 50 rates and lowered rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at
each age and service year
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Line of Duty Disability Decreased rate from 60% to 45%
Net GLI OPEB Liability
The net OPEB liability (NOL) for the GLI Program represents the program’s total OPEB liability
determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of
the measurement date of June 30, 2018, NOL amounts for the GLI Program are as follows (amounts
expressed in thousands):
GLI OPEB
Program
Total GLI OPEB Liability $3,113,508
Plan Fiduciary Net Position 1,594,773
Employers' Net GLI OPEB Liability (Asset)$1,518,735
Plan Fiduciary Net Position as a Percentage
of the Total GLI OPEB Liability 51.22%
The total GLI OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position
is reported in the System’s financial statements. The net GLI OPEB liability is disclosed in accordance
with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and
required supplementary information.
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Packet Pg. 84 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System’s investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of System’s investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target asset allocation and best estimate of arithmetic real rates of return for each major asset class
are summarized in the following table:
Arithmetic Weighted Average
Long-term Long-term
Target Expected Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return
Public Equity 40.00%4.54%1.82%
Fixed Income 15.00%0.69%0.10%
Credit Strategies 15.00%3.96%0.59%
Real Assets 15.00%5.76%0.86%
Private Equity 15.00%9.53%1.43%
Total 100.00%4.80%
Inflation 2.50%
*Expected arithmetic nominal return 7.30%
*The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for
the system, stochastic projections are employed to model future returns under various economic
conditions. The results provide a range of returns over various time periods that ultimately provide a
median return of 6.83%, including expected inflation of 2.50%.
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 7.00%. The projection of cash flows
used to determine the discount rate assumed that member contributions will be made per the VRS
guidance and the employer contributions will be made in accordance with the VRS funding policy at rates
equal to the difference between actuarially determined contribution rates adopted by the VRS Board of
Trustees and the member rate. Through the fiscal year ended June 30, 2018, the rate contributed by the
entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are funded by
the Virginia General Assembly which was 100%of the actuarially determined contribution rate. From July
1, 2018 on, employers are assumed to continue to contribute 100% of the actuarially determined
contribution rates. Based on those assumptions, the GLI OPEB’s fiduciary net position was projected to
be available to make all projected future benefit payments of eligible employees.
Therefore,the long-term expected rate of return was applied to all periods of projected benefit
payments to determine the total GLI OPEB liability.
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Packet Pg. 85 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 11-Group Life Insurance (GLI) Program (OPEB Plan):(continued)
Sensitivity of the Employer’s Proportionate Share of the Net GLI OPEB Liability to Changes in the
Discount Rate
The following presents the employer’s proportionate share of the net GLI OPEB liability using the
discount rate of 7.00%, as well as what the employer’s proportionate share of the net GLI OPEB liability
would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one
percentage point higher (8.00%)than the current rate:
1% Decrease Current Discount 1% Increase
(6.00%)(7.00%)(8.00%)
County's proportionate
share of the GLI Program
Net OPEB Liability 1,543,000$ 1,181,000$ 887,000$
Component Unit School Board's
(nonprofessional) proportionate
share of the GLI Program
Net OPEB Liability 293,000 224,000 168,000
Component Unit School Board's
(professional) proportionate
share of the GLI Program
Net OPEB Liability 4,612,000 3,529,000 2,650,000
Rate
GLI Program Fiduciary Net Position
Detailed information about the GLI Program’s Fiduciary Net Position is available in the separately issued
VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR may be
downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2018-annual-report.pdf,
or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
The remainder of this page is left blank intentionally.
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Packet Pg. 86 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan):
Plan Description
The Political Subdivision Health Insurance Credit (HIC) Program was established pursuant to §51.1-1400
et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms
are established or may be amended. All full-time,salaried permanent employees of participating
political subdivisions are automatically covered by the VRS Political Subdivision HIC Program upon
employment.This is an agent multiple-employer plan administered by the Virginia Retirement System
(the System),along with pension and other OPEB plans, for public employer groups in the Commonwealth
of Virginia. Members earn one month of service credit toward the benefit for each month they are
employed and for which their employer pays contributions to VRS. The HIC is a tax-free reimbursement
in an amount set by the General Assembly for each year of service credit against qualified health
insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or
dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death.
The specific information about the Political Subdivision HIC Program OPEB, including eligibility, coverage
and benefits is described below:
Eligible Employees
The Political Subdivision Retiree HIC Program was established July 1, 1993 for retired political subdivision
employees of employers who elect the benefit and retire with at least 15 years of service credit. Eligible
employees include full-time permanent salaried employees of the participating political subdivision who
are covered under the VRS pension plan. These employees are enrolled automatically upon employment.
Benefit Amounts
The Political Subdivision Retiree HIC Program is a defined benefit plan that provides a credit toward the
cost of health insurance coverage for retired political subdivision employees of participating employers.
For employees who retire, the monthly benefit is $1.50 per year of service per month with a maximum
benefit of $45.00 per month. For employees who retire on disability or go on long-term disability under
the Virginia Local Disability Program (VLDP), the monthly benefit is $45.00 per month.
HIC Program Notes
The monthly HIC benefit cannot exceed the individual premium amount. There is no HIC for premiums
paid and qualified under LODA; however, the employee may receive the credit for premiums paid for
other qualified health plans. Employees who retire after being on long-term disability under VLDP must
have at least 15 years of service credit to qualify for the HIC as a retiree.
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Packet Pg. 87 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Employees Covered by Benefit Terms
As of the June 30, 2017 actuarial valuation, the following employees were covered by the benefit terms
of the HIC OPEB plan:
Component Unit
Primary School Board
Government (nonprofessional)
Inactive members or their beneficiaries currently
receiving benefits 107 44
Inactive members:
Vested inactive members 1 -
Active members 344 141
Total covered employees 452 185
Contributions
The contribution requirements for active employees is governed by §51.1-1402(E) of the Code of Virginia,
as amended, but may be impacted as a result of funding options provided to political subdivisions by the
Virginia General Assembly. The County and School Board’s (nonprofessional)contractually required
employer contribution rate for the year ended June 30, 2019 was 0.19%and 1.02%, respectively, of
covered employee compensation. This rate was based on an actuarially determined rate from an
actuarial valuation as of June 30, 2017. The actuarially determined rate was expected to finance the
costs of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. Contributions from the County to the HIC Program were $27,861 and $28,652
for the years ended June 30, 2019 and June 30, 2018, respectively.Contributions from the School Board
(nonprofessional)to the HIC Program were $28,931 and $26,330 for the years ended June 30, 2019 and
June 30, 2018, respectively.
Net HIC OPEB Liability
The County’s net HIC OPEB liability was measured as of June 30, 2018. The total HIC OPEB liability was
determined by an actuarial valuation performed as of June 30, 2017, using updated actuarial
assumptions, applied to all periods included in the measurement and rolled forward to the measurement
date of June 30, 2018.
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Packet Pg. 88 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Actuarial Assumptions
The total HIC OPEB liability was based on an actuarial valuation as of June 30, 2017, using the Entry Age
Normal actuarial cost method and the following assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2018.
Inflation 2.50%
Salary increases, including inflation:
Locality - General employees 3.50%-5.35%
Locality - Hazardous Duty employees 3.50%-4.75%
Investment rate of return 7.0%, net of investment expenses,
including inflation*
*Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0% to simplify preparation of the OPEB liabilities.
Mortality Rates – Largest Ten Locality Employers – General Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to
90.
Post-Disablement:
RP-2014 Disability Life Mortality Table projected with scale BB to 2020; males set forward 2
years, 110% of rates; females 125% of rates.
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5.a.a
Packet Pg. 89 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Actuarial Assumptions: (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Disability Rates Lowered disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 20%
Mortality Rates –Non-Largest Ten Locality Employers –General Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 95% of rates; females 105% of rates.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to
90.
Post-Disablement:
RP-2014 Disability Life Mortality Table projected with scale BB to 2020; males set forward 2
years, 110% of rates; females 125% of rates.
The actuarial assumptions used in the June 30,2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Disability Rates Lowered disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 14% to 15%
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Packet Pg. 90 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Actuarial Assumptions: (continued)
Mortality Rates –Largest Ten Locality Employers –Hazardous Duty Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90;
females set forward 3 years.
Post-Disablement:
RP-2014 Disability Life Mortality Table projected with scale BB to 2020; males set forward 2
years; unisex using 100% male.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Disability Rates Increased disability rates
Salary Scale No change
Line of Duty Disability Increased rate from 60% to 70%
Mortality Rates –Non-Largest Ten Locality Employers –Hazardous Duty Employees
Pre-Retirement:
RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale
BB to 2020; males 90% of rates; females set forward 1 year.
Post-Retirement:
RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with
scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90;
females set forward 3 years.
Post-Disablement:
RP-2014 Disability Life Mortality Table projected with scale BB to 2020; males set forward 2 years;
unisex using 100% male.
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5.a.a
Packet Pg. 91 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Actuarial Assumptions: (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Increased age 50 rates and lowered rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Line of Duty Disability Decreased rate from 60% to 45%
Long-Term Expected Rate of Return
The long-term expected rate of return on the System’s investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of System’s investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target asset allocation and best estimate of arithmetic real rates of return for each major asset class
are summarized in the following table:
Weighted
Arithmetic Average
Long-term Long-term
Target Expected Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return
Public Equity 40.00%4.54%1.82%
Fixed Income 15.00%0.69%0.10%
Credit Strategies 15.00%3.96%0.59%
Real Assets 15.00%5.76%0.86%
Private Equity 15.00%9.53%1.43%
Total 100.00%4.80%
Inflation 2.50%
*Expected arithmetic nominal return 7.30%
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Packet Pg. 92 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Long-Term Expected Rate of Return (continued)
*The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for
the system, stochastic projections are employed to model future returns under various economic
conditions. The results provide a range of returns over various time periods that ultimately provide a
median return of 6.83%, including expected inflation of 2.50%.
Discount Rate
The discount rate used to measure the total HIC OPEB liability was 7.00%. The projection of cash flows
used to determine the discount rate assumed that employer contributions will be made in accordance
with the VRS funding policy at rates equal to the difference between actuarially determined contribution
rates adopted by the VRS Board of Trustees and the member rate. Through the fiscal year ended June
30, 2018, the rate contributed by the entity for the HIC OPEB will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly,which was 100% of the
actuarially determined contribution rate. From July 1, 2018 on, employers are assumed to continue to
contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the HIC
OPEB’s fiduciary net position was projected to be available to make all projected future benefit
payments of eligible employees. Therefore,the long-term expected rate of return was applied to all
periods of projected benefit payments to determine the total HIC OPEB liability.
The remainder of this page is left blank intentionally.
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Packet Pg. 93 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Changes in Net HIC OPEB Liability
Total HIC OPEB Plan Fiduciary Net HIC OPEB
Liability Net Position Liability (Asset)
(a)(b)(a) - (b)
Balances at June 30, 2017 $606,480 $388,578 $217,902
Changes for the year:
Service cost $10,816 $- $10,816
Interest 40,909 - 40,909
Differences between expected
and actual experience 9,815 - 9,815
Contributions - employer - 28,042 (28,042)
Net investment income - 27,141 (27,141)
Benefit payments (44,133) (44,133) -
Administrative expenses - (624) 624
Other changes - (2,018) 2,018
Net changes $17,407 $8,408 $8,999
Balances at June 30, 2018 $623,887 $396,986 $226,901
Increase (Decrease)
Primary Government
The remainder of this page is left blank intentionally.
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Packet Pg. 94 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
Changes in Net HIC OPEB Liability (continued)
Total HIC OPEB Plan Fiduciary Net HIC OPEB
Liability Net Position Liability (Asset)
(a)(b)(a) - (b)
Balances at June 30, 2017 $389,235 $(9,753) $398,988
Changes for the year:
Service cost $9,246 $- $9,246
Interest 13,464 - 13,464
Differences between expected
and actual experience (6,419) - (6,419)
Contributions - employer - 26,449 (26,449)
Net investment income - 1 (1)
Benefit payments (22,067) (22,067) -
Net changes $(5,776) $4,383 $(10,159)
Balances at June 30, 2018 $383,459 $(5,370) $388,829
Component Unit School Board (nonprofessional)
Increase (Decrease)
Sensitivity of the County’s HIC Net OPEB Liability to Changes in the Discount Rate
The following presents the County’s and School Board’s (nonprofessional) HIC Program net HIC OPEB
liability using the discount rate of 7.00%, as well as what the County’s and School Board’s
(nonprofessional) net HIC OPEB liability would be if it were calculated using a discount rate that is one
percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:
1% Decrease Current Discount 1% Increase
(6.00%)(7.00%)(8.00%)
County's
Net HIC OPEB Liability $290,368 $226,901 $172,550
Component Unit School Board's (nonprofessional)
Net HIC OPEB Liability $431,141 $388,829 $352,785
Rate
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Packet Pg. 95 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
HIC Program OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to HIC Program OPEB
For the year ended June 30, 2019, the County and School Board (nonprofessional) recognized HIC
Program OPEB expense of $22,350 and $14,685, respectively.At June 30, 2019, the County and School
Board (nonprofessional) reported deferred outflows of resources and deferred inflows of resources
related to the County’s and School Board’s (nonprofessional) HIC Program from the following sources:
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual experience 4,000$ -$ -$ 5,036$
Net difference between projected and actual
earnings on HIC OPEB plan investments - 10,000 - 948
Change in assumptions - - - 18,607
Employer contributions subsequent to the
measurement date 27,861 - 28,931 -
Total 31,861$ 10,000$ 28,931$ 24,591$
Primary Government Board (nonprofessional)
Component Unit School
$27,861 and 28,931 reported as deferred outflows of resources related to the HIC OPEB resulting from
the County’s and School Board’s (nonprofessional) contributions subsequent to the measurement date
will be recognized as a reduction of the Net HIC OPEB Liability in the fiscal year ending June 30, 2020.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
the HIC OPEB will be recognized in the HIC OPEB expense in future reporting periods as follows:
Component Unit
Primary School Board
Year Ended June 30 Government (nonprofessional)
2020 $1,000 $(8,555)
2021 (3,000) (8,555)
2022 (4,000) (6,487)
2023 - (994)
2024 - -
Thereafter - -
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Packet Pg. 96 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 12―Health Insurance Credit (HIC) Program (OPEB Plan): (continued)
HIC Program Plan Data
Information about the VRS Political Subdivision HIC Program is available in the separately issued VRS 2018
Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR may be downloaded from
the VRS website at http://www.varetire.org/Pdf/Publications/2018-annual-report.pdf, or by writing to
the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):
Plan Description
The Virginia Retirement System (VRS)Teacher Employee Health Insurance Credit (HIC) Program was
established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the
authority under which benefit terms are established or may be amended. All full-time,salaried
permanent (professional) employees of public school divisions are automatically covered by the VRS
Teacher Employee HIC Program.This is a cost-sharing multiple-employer plan administered by the
Virginia Retirement System (the System),along with pension and other OPEB plans, for public employer
groups in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit
for each month they are employed and for which their employer pays contributions to VRS. The HIC is a
tax-free reimbursement in an amount set by the General Assembly for each year of service credit against
qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the
spouse or dependents.The credit cannot exceed the amount of the premiums and ends upon the
retiree’s death.
The specific information for the Teacher HIC Program OPEB, including eligibility, coverage,and benefits
is described below:
Eligible Employees
The Teacher Employee Retiree HIC Program was established July 1, 1993 for retired Teacher Employees
covered under VRS who retire with at least 15 years of service credit.Eligible employees include full-
time permanent (professional) salaried employees of public school divisions covered under VRS. These
employees are enrolled automatically upon employment.
Benefit Amounts
The Teacher Employee HIC Program is a defined benefit plan that provides a credit toward the cost of
health insurance coverage for retired teachers. For Teacher and other professional school employees
who retire with at least 15 years of service credit, the monthly benefit is $4.00 per year of service per
month with no cap on the benefit amount.For Teacher and other professional school employees who
retire on disability or go on long-term disability under the Virginia Local Disability Program (VLDP), the
monthly benefit is either: $4.00 per month, multiplied by twice the amount of service credit, or $4.00
per month, multiplied by the amount of service earned had the employee been active until age 60,
whichever is lower.
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Packet Pg. 97 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
HIC Program Notes
The monthly HIC benefit cannot exceed the individual premium amount. Employees who retire after
being on long-term disability under VLDP must have at least 15 years of service credit to qualify for the
HIC as a retiree.
Contributions
The contribution requirements for active employees is governed by §51.1-1401(E) of the Code of Virginia,
as amended, but may be impacted as a result of funding provided to school divisions by the Virginia
General Assembly. Each school division’s contractually required employer contribution rate for the year
ended June 30, 2019 was 1.20% of covered employee compensation for employees in the VRS Teacher
Employee HIC Program. This rate was based on an actuarially determined rate from an actuarial
valuation as of June 30, 2017. The actuarially determined rate was expected to finance the costs of
benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. Contributions from the school division to the VRS Teacher Employee HIC Program were
$533,911 and $541,549 for the years ended June 30, 2019 and June 30, 2018, respectively.
Teacher Employee HIC Program OPEB Liabilities, Teacher Employee HIC Program OPEB Expense,
and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher
Employee HIC Program OPEB
At June 30, 2019, the school division reported a liability of $6,914,000 for its proportionate share of the
VRS Teacher Employee HIC Program Net OPEB Liability. The Net VRS Teacher Employee HIC Program
OPEB Liability was measured as of June 30, 2018 and the total VRS Teacher Employee HIC Program OPEB
liability used to calculate the Net VRS Teacher Employee HIC Program OPEB Liability was determined by
an actuarial valuation as of that date. The school division’s proportion of the Net VRS Teacher Employee
HIC Program OPEB Liability was based on the school division’s actuarially determined employer
contributions to the VRS Teacher Employee HIC Program OPEB plan for the year ended June 30, 2018
relative to the total of the actuarially determined employer contributions for all participating employers.
At June 30, 2018, the school division’s proportion of the VRS Teacher Employee HIC Program was 0.5446%
as compared to 0.5232% at June 30, 2017.
For the year ended June 30, 2019, the school division recognized VRS Teacher Employee HIC Program
OPEB expense of $594,000. Since there was a change in proportionate share between measurement
dates, a portion of the VRS Teacher Employee HIC Program Net OPEB expense was related to deferred
amounts from changes in proportion.
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Packet Pg. 98 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
Teacher Employee HIC Program OPEB Liabilities, Teacher Employee HIC Program OPEB Expense,
and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher
Employee HIC Program OPEB (continued)
At June 30, 2019, the school division reported deferred outflows of resources and deferred inflows of
resources related to the VRS Teacher Employee HIC Program OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $- $35,000
Net difference between projected and actual
earnings on Teacher HIC OPEB plan investments - 5,000
Change in assumptions - 60,000
Change in proportion 238,000 30,000
Employer contributions subsequent to the
measurement date 533,911 -
Total $771,911 $130,000
$533,911 reported as deferred outflows of resources related to the Teacher Employee HIC OPEB resulting
from the school division’s contributions subsequent to the measurement date will be recognized as a
reduction of the Net Teacher Employee HIC OPEB Liability in the fiscal year ending June 30, 2020. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to the
Teacher Employee HIC OPEB will be recognized in the Teacher Employee HIC OPEB expense in future
reporting periods as follows:
Year Ended June 30
2020 $12,000
2021 12,000
2022 12,000
2023 15,000
2024 14,000
Thereafter 43,000
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Packet Pg. 99 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
Actuarial Assumptions
The total Teacher Employee HIC OPEB liability for the VRS Teacher Employee HIC Program was based on
an actuarial valuation as of June 30, 2017, using the Entry Age Normal actuarial cost method and the
following assumptions, applied to all periods included in the measurement and rolled forward to the
measurement date of June 30, 2018.
Inflation 2.5%
Salary increases, including inflation 3.5%-5.95%
Investment rate of return 7.0%, net of investment expenses,
including inflation*
*Administrative expenses as a percent of the market value of assets for the last experience study were
found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an
assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However,
since the difference was minimal, and a more conservative 7.0% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected
rate of return on investments was assumed to be 7.0% to simplify preparation of OPEB liabilities.
Mortality Rates –Teachers
Pre-Retirement:
RP-2014 White Collar Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81
and older projected with scale BB to 2020.
Post-Retirement:
RP-2014 White Collar Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50
and older projected with scale BB to 2020; males 1% increase compounded from ages 70 to 90;
females set back 3 years with 1.5% increase compounded from ages 65 to 70 and 2.0% increase
compounded from ages 75 to 90.
Post-Disablement:
RP-2014 Disability Mortality Rates projected with scale BB to 2020; 115% of rates for males and
females.
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Packet Pg. 100 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
Actuarial Assumptions (continued)
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial
assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered rates at older ages and changed final
Withdrawal Rates Adjusted rates to better fit experience at each year age
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Net Teacher Employee HIC OPEB Liability
The net OPEB liability (NOL) for the Teacher Employee HIC Program represents the program’s total OPEB
liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net
position. As of June 30, 2018, NOL amounts for the VRS Teacher Employee HIC Program is as follows
(amounts expressed in thousands):
Teacher
Employee HIC
OPEB Plan
Total Teacher Employee HIC OPEB Liability $1,381,313
Plan Fiduciary Net Position 111,639
Teacher Employee net HIC OPEB Liability (Asset)$1,269,674
Plan Fiduciary Net Position as a Percentage
of the Total Teacher Employee HIC OPEB Liability 8.08%
The total Teacher Employee HIC OPEB liability is calculated by the System’s actuary, and the plan’s
fiduciary net position is reported in the System’s financial statements. The net Teacher Employee HIC
OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s
notes to the financial statements and required supplementary information.
Long-Term Expected Rate of Return
The long-term expected rate of return on the VRS System investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of VRS System investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
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Packet Pg. 101 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
Long-Term Expected Rate of Return (continued)
The target asset allocation and best estimate of arithmetic real rates of return for each major asset class
are summarized in the following table:
Weighted
Arithmetic Average
Long-term Long-term
Target Expected Expected
Asset Class (Strategy)Allocation Rate of Return Rate of Return
Public Equity 40.00%4.54%1.82%
Fixed Income 15.00%0.69%0.10%
Credit Strategies 15.00%3.96%0.59%
Real Assets 15.00%5.76%0.86%
Private Equity 15.00%9.53%1.43%
Total 100.00%4.80%
Inflation 2.50%
*Expected arithmetic nominal return 7.30%
*The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into
account the volatility present in each of the asset classes. In setting the long-term expected return for
the system, stochastic projections are employed to model future returns under various economic
conditions. The results provide a range of returns over various time periods that ultimately provide a
median return of 6.83%, including expected inflation of 2.50%.
Discount Rate
The discount rate used to measure the total Teacher Employee HIC OPEB was 7.00%. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the VRS funding policy and at rates equal to the actuarially determined contribution
rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2018, the rate
contributed by each school division for the VRS Teacher Employee HIC Program will be subject to the
portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was
100% of the actuarially determined contribution rate. From July 1, 2018 on, all agencies are assumed to
continue to contribute 100% of the actuarially determined contribution rates. Based on those
assumptions, the Teacher Employee HIC OPEB plan’s fiduciary net position was projected to be available
to make all projected future benefit payments of current active and inactive employees.Therefore,the
long-term expected rate of return was applied to all periods of projected benefit payments to determine
the total Teacher Employee HIC OPEB liability.
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Packet Pg. 102 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 13-Teacher Employee Health Insurance Credit (HIC) Program (OPEB Plan):(continued)
Sensitivity of the School Division’s Proportionate Share of the Teacher Employee HIC Net OPEB
Liability to Changes in the Discount Rate
The following presents the school division’s proportionate share of the VRS Teacher Employee HIC
Program net HIC OPEB liability using the discount rate of 7.00%, as well as what the school division’s
proportionate share of the net HIC OPEB liability would be if it were calculated using a discount rate that
is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:
1% Decrease Current Discount 1% Increase
(6.00%)(7.00%)(8.00%)
School division's proportionate
share of the VRS Teacher
Employee HIC OPEB Plan
Net HIC OPEB Liability 7,722,000$ 6,914,000$ 6,227,000$
Rate
Teacher Employee HIC OPEB Fiduciary Net Position
Detailed information about the VRS Teacher Employee HIC Program’s Fiduciary Net Position is available
in the separately issued VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS
CAFR may be downloaded from the VRS website at http://www.varetire.org/Pdf/ Publications/2018-
annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA,
23218-2500.
Note 14-Line of Duty Act (LODA)(OPEB):
The Line of Duty Act (LODA) provides death and healthcare benefits to certain law enforcement and
rescue personnel, and their beneficiaries, who were disabled or killed in the line of duty. Benefit
provisions and eligibility requirements are established by Title 9.1 Chapter 4 of the Code of Virginia.
Funding of LODA benefits is provided by employers in one of two ways: (a) participation in the Line of
Duty and Health Benefits Trust Fund (LODA Fund), administered by the Virginia Retirement System (VRS)
or (b) self-funding by the employer or through an insurance company.
The County has elected to provide LODA benefits through an insurance company. The obligation for the
payment of benefits has been effectively transferred from the County to VACORP. VACORP assumes all
liability for the County’s LODA claims that are approved by VRS. The pool purchases reinsurance to
protect the pool from extreme claims costs.
The current-year OPEB expense/expenditure for the insured benefits is defined as the amount of
premiums or other payments required for the insured benefits for the reporting period in accordance
with the agreement with the insurance company for LODA and a change in liability to the insurer equal
to the difference between amounts recognized as OPEB expense and amounts paid by the employer to
the insurer. The County’s LODA coverage is fully covered or “insured” through VACORP. This is built into
the LODA coverage cost presented in the annual renewals. The County’s LODA premium for the year
ended June 30, 2019 was $187,789.
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Packet Pg. 103 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 15-Summary of Other Postemployment Benefits (OPEB):
Deferred Deferred Net OPEB OPEB Deferred Deferred Net OPEB OPEB
Outflows Inflows Liability Expense Outflows Inflows Liability Expense
Stand-Alone Plan (Note 10)
County 104,000$410,000$1,741,000$113,000$-$ -$ -$ -$
School Board - - - - 830,000 627,000 7,276,000 498,000
VRS OPEB Plans:
GLI Program (Note 11)
County 140,404 109,000 1,181,000 11,000 - - - -
School Board Nonprofessional - - - - 25,898 30,000 224,000 -
School Board Professional - - - - 520,359 325,000 3,529,000 47,000
HIC Program (Note 12)
County 31,861 10,000 226,901 22,350 - - - -
School Board Nonprofessional - - - - 28,931 24,591 388,829 14,685
Teacher HIC Program (Note 13)- - - - 771,911 130,000 6,914,000 594,000
Totals 276,265$529,000$3,148,901$146,350$2,177,099$1,136,591$18,331,829$1,153,685$
Primary Government Component Unit School Board
Note 16-Capital Assets:
Capital asset activity for the year ended June 30, 2019 was as follows:
Primary Government:
Beginning
Balance,Ending
as restated Increases Decreases Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $5,510,544 $- $- $5,510,544
Construction in progress 582,350 1,063,534 (146,406) 1,499,478
Total capital assets not being depreciated $6,092,894 $1,063,534 $(146,406) $7,010,022
Capital assets, being depreciated:
Buildings and improvements $106,070,052 $162,033 $- $106,232,085
Machinery and equipment 31,697,385 510,476 (375,128) 31,832,733
Total capital assets being depreciated $137,767,437 $672,509 $(375,128) $138,064,818
Accumulated depreciation:
Buildings and improvements $(27,919,032)$(2,690,210)$- $(30,609,242)
Machinery and equipment (19,591,747)(2,197,951)364,990 (21,424,708)
Total accumulated depreciation $(47,510,779)$(4,888,161)$364,990 $(52,033,950)
Total capital assets being depreciated, net $90,256,658 $(4,215,652)$(10,138) $86,030,868
Governmental activities capital assets, net $96,349,552 $(3,152,118)$(156,544) $93,040,890
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Packet Pg. 104 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 16-Capital Assets:(continued)
Primary Government:(continued)
Beginning
Balance,Ending
as restated Increases Decreases Balance
Business-type Activities:
Capital assets, not being depreciated:
Land $95,000 $- $- $95,000
Construction in progress - 102,866 (102,866) -
Total capital assets not being depreciated $95,000 $102,866 $(102,866) $95,000
Capital assets, being depreciated:
Infrastructure $8,333,984 $102,866 $- $8,436,850
Machinery and equipment 3,571,025 598,871 (468,816) 3,701,080
Total capital assets being depreciated $11,905,009 $701,737 $(468,816) $12,137,930
Accumulated depreciation:
Infrastructure $(5,555,710) $(157,453) $- $(5,713,163)
Machinery and equipment (2,674,582) (224,865) 468,816 (2,430,631)
Total accumulated depreciation $(8,230,292) $(382,318) $468,816 $(8,143,794)
Total capital assets being depreciated, net $3,674,717 $319,419 $- $3,994,136
Business-type activities capital assets, net $3,769,717 $422,285 $(102,866) $4,089,136
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government administration 92,362$
Judicial administration 15,430
Public safety 1,806,319
Public works 451,572
Health and welfare 98,252
Education 2,245,208
Parks, recreation, and cultural 109,379
Community development 69,639
Total depreciation expense-governmental activities 4,888,161$
Business-type Activities:
Landfill fund 382,318$
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Packet Pg. 105 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 16-Capital Assets: (continued)
Capital asset activity for the School Board for the year ended June 30, 2019 was as follows:
Discretely Presented Component Unit:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $2,709,971 $- $- $2,709,971
Construction in progress - 358,367 (74,860) 283,507
Total capital assets not being depreciated $2,709,971 $358,367 $(74,860) $2,993,478
Capital assets, being depreciated:
Buildings and improvements $67,601,337 $92,260 $- $67,693,597
Machinery and equipment 18,064,929 303,153 (75,168) 18,292,914
Total capital assets being depreciated $85,666,266 $395,413 $(75,168) $85,986,511
Accumulated depreciation:
Buildings and improvements $(34,746,512)$(1,487,904) $- $(36,234,416)
Machinery and equipment (15,074,350)(607,947) 69,768 (15,612,529)
Total accumulated depreciation $(49,820,862)$(2,095,851) $69,768 $(51,846,945)
Total capital assets being depreciated, net $35,845,404 $(1,700,438) $(5,400) $34,139,566
Governmental activities capital assets, net $38,555,375 $(1,342,071) $(80,260) $37,133,044
Note 17-Risk Management:
The County and its Component Unit –School Board are exposed to various risks of loss related to torts;
theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The County
participates with other localities in a public entity risk pool for their coverage of general liability,
property, crime and auto insurance with the Virginia Association of Counties Risk Pool. Each member of
each of this risk pool jointly and severally agrees to assume, pay and discharge any liability. The County
pays the Risk Pool contributions and assessments based upon classification and rates into a designated
cash reserve fund out of which expenses of the pool, claims and awards are to be paid. In the event of a
loss,deficit,or depletion of all available excess insurance, the pool may assess all members in the
proportion to which the premium of each bears to the total premiums of all members in the year in
which such deficit occurs. The County and its Component Unit –School Board continue to carry
commercial insurance for all other risks of loss. Settled claims resulting from these risks have not
exceeded commercial insurance coverage in any of the past three fiscal years.
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 18-Contingent Liabilities:
Federal programs in which the County participates were audited in accordance with the provisions of
Uniform Guidance. Pursuant to the provisions of this guidance all major programs and certain other
programs were tested for compliance with applicable grant requirements. While no matters of
noncompliance were disclosed by audit, the Federal Government may subject grant programs to
additional compliance tests, which may result in disallowed expenditures. In the opinion of
management, any future disallowances of current grant program expenditures, if any, would be
immaterial.
Note 19-Comprehensive Services Act-Amount Due to Commonwealth:
In an Order entered December 16, 2011, the State Executive Council (“SEC”) found that Pittsylvania
County is liable for $7,699,933 in reimbursement for CSA funds used for ineligible students and services
based on an audit conducted by the Auditor of Public Accounts. The SEC agreed to allow the CPMB to
pay the Commonwealth of Virginia $250,000 per year for a ten (10) year period, and if the CPMB abides
by several probationary actions during the ten (10) year period, the SEC will forgo requiring the CPMB to
repay the balance of the amount due and owing. At the December 20, 2011, Pittsylvania County Board
of Supervisors’ (“BOS”) meeting, the BOS objected to the findings in the SEC’s Order, but agreed to its
disposition of the matter, i.e. repayment of $2.5 million dollars over a ten (10) year period with
probationary measures.
Note 20-Surety Bonds:
Primary Government:
Fidelity & Deposit Company of Maryland-Surety:
Mark Scarce, Clerk of the Circuit Court 25,000$
Vincent Shorter, Treasurer 750,000
Shirley Y. Hammock, Commissioner of the Revenue 3,000
Michael W. Taylor, Sheriff 30,000
All constitutional officers' employees: blanket bond 50,000
VACo Insurance Programs:
All County employees - blanket bond 250,000$
National Grange Mutual Insurance Company:
All Social Services employees - blanket bond 100,000$
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 21-Landfill Closure and Postclosure Care Cost:
State and federal laws and regulations require the County to place a final cover on its landfill site when
it stops accepting waste and to perform certain maintenance and monitoring functions at the site after
closure. $5,085,667 is the total estimated closure and postclosure care liability at June 30, 2019. This
represents the cumulative amount based on the use of 100% of the estimated capacity of the landfill and
is based on what it would cost to perform all remaining closure and postclosure in 2019. The liability on
the statement of net position of $3,169,490 is based on the County’s estimate that the landfill has
reached 100%of Phase I and 37% of Phase II of capacity with a remaining useful life of 17 years for phase
II. Actual costs for closure and postclosure monitoring may change due to inflation, deflation, changes in
technology or changes in regulations. The County uses the Commonwealth of Virginia’s financial
assurance mechanism to meet the Department of Environmental Quality’s assurance requirements for
landfill closure and postclosure costs. The County demonstrated financial assurance requirements for
closure, post-closure care and corrective action costs through the submission of a Local Government Test
to the Virginia Department of Environmental Quality in accordance with Section 9VA C20-70 of the
Virginia Administrative Code.
Note 22-Self Health Insurance:
The County of Pittsylvania, Virginia established a limited risk management program for health insurance.
Premiums are paid into the health plan fund from the County and are available to pay claims, and
administrative costs of the program. During the fiscal year 2019, a total of $12,738,366 was paid in
benefits and administrative costs. The risk assumed by the County is based on the number of
participants in the program. The risk varies by the number of participants and their specific plan type
(Keycare, Bluecare, etc.). Incurred but not reported claims of $1,189,092 have been accrued as a
liability based primarily on actual cost incurred prior to June 30 but paid after year-end. Interfund
premiums are based primarily upon the insured funds’ claims experience and are reported as quasi-
external interfund transactions. Changes in the claims liability during fiscal year 2019 and the two
previous years were as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claim End of
Fiscal Year Fiscal Year Estimates Payments Fiscal Year
2018-19 $1,268,500 $12,658,958 $(12,738,366)$1,189,092
2017-18 1,121,900 13,751,037 (13,604,437) 1,268,500
2016-17 1,206,700 11,639,644 (11,724,444) 1,121,900
The remainder of this page left blank intentionally.
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Packet Pg. 108 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 23-Deferred/Unavailable Revenue:
Unavailable revenue represents amounts for which asset recognition criteria have been met, but for
which revenue recognition criteria have not been met. Under the modified accrual basis of accounting,
such amounts are measurable, but not available. Under the accrual basis, assessments for future periods
are deferred. Unavailable revenue is comprised of the following:
Delinquent property taxes receivable - 2nd half 2019 $15,058,418
Prepaid taxes 3,510,116
Total deferred revenue for governmental activities $18,568,534
Taxes receivable due prior to June 30, 2019, not
collected within 60 days 6,561,767
Total unavailable revenue for governmental funds $25,130,301
Note 24-Commitments and Contingencies:
The Board of Supervisors of Pittsylvania County and the City Council of the City of Danville, Virginia
approved support agreements with the Danville-Pittsylvania Regional Industrial Facility Authority to
provide funding (subject to annual appropriations) sufficient to meet principal and interest payments on
the Authority’s $7,300,000 revenue bonds. As described in Note 1,the County contributed $233,684
towards these agreements in fiscal year 2019.
The County has obligated funds for the projects described below as of June 30, 2019:
Original Amount Paid Retainage Remaining
Contract As of 6/30/2019 Payable Contract Amount
Courthouse and Jail Study 179,255$ 146,233$ -$ 33,022$
Mega Park Phase I Sanitary Sewer 5,132,404 3,914,941 231,587 1,217,463
E911 Tower Project 2,145,953 827,486 - 1,318,467
Total Contracts 7,457,612$ 4,888,660$ 231,587$ 2,568,952$
The County has also obligated funds for the development of projects initiated by the Regional Industrial
Facilities Authority. The County’s share of the projects as described below was 50% as of June 30, 2019:
Service Total Paid as Contract
Contractor Provided Project Contract of 6/30/2019 Remaining
Dewberry Engineering SOVA Megasite at Berry Hill 990,850$ 987,879$ 2,971$
Dewberry Engineering SOVA Berry Hill Park-Amend. #4-#8 (Lot 4)1,707,563 1,569,513 138,050
Dewberry Engineering Cane Creek-Wetland Monitoring 71,881 38,757 33,124
Haymes Brothers, Inc.Construction Construction on Phase I Graded Pad-SOVA Megasite 4,250,475 4,243,151 7,324
Appalachian Power Company Construction Construction-SOVA Megasite at Berry Hill 1,655,000 180,000 1,475,000
DEQ Permitting Permitting at SOVA Megasite at Berry Hill 11,000 9,600 1,400
Dewberry Engineering Berry Hill Industrial Park-Lot 8 Site Development 89,300 82,800 6,500
Dewberry Engineering/DesignBerry Hill Water Line Phase II Design 149,600 34,905 114,695
C.W. Cauley & Son Construction SOVA Megasite-Phase I Water 1,843,540 - 1,843,540
Totals 10,769,209$ 7,146,605$ 3,622,604$
County's 50% obligation 5,384,605$ 3,573,303$ 1,811,302$
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 24-Commitments and Contingencies: (continued)
School Board Early Retirement Incentive Program:
The Component Unit –School Board administers an early retirement incentive program for School Board
employees. Early retirement is available to those employees with a minimum of twenty years of service
in the Pittsylvania School System,including the five consecutive years immediately preceding the
effective date of retirement. In addition, employees must be at least 55 years of age and less than 65
years of age to be eligible for the program. To participate, the employee must be a vested member of
the Virginia Retirement System (VRS). In addition, employees may not work for any other agency
covered under the VRS during their tenure in the program. The program allows for payment of 20% of an
employee’s final contracted salary, earned before the effective date of retirement, for a period of 7
years or until the participant reaches the age of sixty-five. The School Board reserves the right to amend
or terminate the program. Employees are required to work twenty days per year to receive their
payment. At June 30, 2019 the commitment related to the Early Retirement Incentive Program was
$4,073,129.
Note 25—Litigation:
At June 30, 2019, there were no matters of litigation involving the County which would materially affect
the County’s financial position should any court decision on pending matters not be favorable.
Note 26—Adoption of Accounting Principles:
The County implemented the financial reporting provisions of Governmental Accounting Standards Board
Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct
Placements during the fiscal year ended June 30, 2019. This Statement clarifies which liabilities
governments should include when disclosing information related to debt. It also requires that additional
essential information related to debt be disclosed in notes to financial statements. No restatement was
required as a result of this implementation.
The County early implemented provisions of Governmental Accounting Standards Board Statement No.
89, Accounting for Interest Cost Incurred Before the End of a Construction Period during the fiscal year
ended June 30, 2019. This Statement simplifies accounting for interest cost incurred before the end of a
construction period. Interest cost incurred during construction is expensed and no longer capitalized as
part of project costs. No restatement was required as a result of this implementation.
Note 27—Economic Incentive Tax Abatement Programs:
A tax abatement consists of “a reduction in tax revenues that results from an agreement between one
or more governments and an individual or entity in which (a) one or more governments promise to forgo
tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a
specific action after the agreement has been entered into that contributes to economic development or
otherwise benefits the governments or the citizens of those governments.”
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 27—Economic Incentive Tax Abatement Programs:(continued)
Pittsylvania County has multiple agreements, all for the purpose of economic development, that
conform to that definition. Tax abatements related to real estate and machinery and tools taxes of
$108,600 and $144,319, respectively, have been agreed to in aggregate and are applied over the next 3-
5 years on a declining scale. The entities regularly pay their taxes and on an annual basis prove they
have met certain requirements for the grant program on an individual basis. These requirements
include new jobs, which is verified by the Virginia Employment Commission,and taxable improvements
to real estate or machinery and tools tax. Any entity failing to maintain their end of the agreement will
forfeit any further abatement reimbursements. During fiscal year 2019, there were no new tax rebate
incentives provided to companies.
Note 28—Restatement:
Primary Government
General
Fund
Fund Balance, July 1, 2018, as previously stated 27,033,915$
Move cash to Solid Waste Fund (958,369)
Move accounts receivable to Solid Waste Fund (29,231)
Move accrued payroll to Solid Waste Fund 19,171
Move acccounts payable to Solid Waste Fund 33,234
Fund Balance, July 1, 2018, as restated 26,098,720$
Primary Government Primary Government
Governmental Business-type
Activities Activities
Net Position, July 1, 2018, as previously stated 43,249,492$ -$
Implementation of business-type fund:
Fund restatement (above)(935,195) 935,195
Capital assets, net of accumulated depreciation (3,769,717) 3,769,717
Interest payable 28,923 (28,923)
Long-term obligations 5,450,808 (5,450,808)
Deferred trash fee (128,847) -
Net Position, July 1, 2018, as restated 43,895,464$ (774,819)$
Note 29—Subsequent Events:
On September 19, 2019, the School Board issued a capital lease for the purchase of 11 school buses
totaling $963,565. The capital lease carries an interest rate of 2.18% and matures on September 19,
2021.
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COUNTY OF PITTSYLVANIA, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2019
Note 30—Upcoming Pronouncements:
Statement No. 84,Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state
and local governments for accounting and financial reporting purposes and how those activities should be
reported. The requirements of this Statement are effective for reporting periods beginning after
December 15, 2018.
Statement No. 87, Leases, requires recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract. It establishes a single model for lease
accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. The requirements of this Statement are effective for reporting periods beginning after
December 15, 2019.
Statement No. 90, Majority Equity Interests –An Amendment of GASB Statements No, 14 and No. 61,
provides guidance for reporting a government’s majority equity interest in a legally separate
organization and for reporting financial statement information for certain component units. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2018.
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt
obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2020.
Management is currently evaluating the impact these standards will have on the financial statements
when adopted.
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Required Supplementary Information
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Packet Pg. 113 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 11
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
General property taxes 39,811,591$ 39,811,597$ 40,423,061$ 611,464$
Other local taxes 7,576,777 7,576,777 7,728,921 152,144
Permits, privilege fees, and regulatory licenses 138,350 138,350 138,128 (222)
Fines and forfeitures 220,000 220,000 190,695 (29,305)
Revenue from the use of money and property 362,500 362,500 368,727 6,227
Charges for services 215,800 215,800 310,882 95,082
Miscellaneous 169,630 369,404 522,031 152,627
Recovered costs 750,200 1,144,957 1,281,594 136,637
Intergovernmental 24,020,629 23,847,159 20,961,404 (2,885,755)
Total revenues 73,265,477$ 73,686,544$ 71,925,443$ (1,761,101)$
EXPENDITURES
Current:
General government administration 4,065,932$ 4,085,086$ 3,878,872$ 206,214$
Judicial administration 2,039,053 2,106,703 1,963,583 143,120
Public safety 18,073,846 19,322,783 17,956,692 1,366,091
Public works 1,256,590 1,277,521 1,085,493 192,028
Health and welfare 13,726,345 13,348,433 11,218,198 2,130,235
Education 18,097,029 21,744,078 19,104,624 2,639,454
Parks, recreation, and cultural 1,938,563 2,099,258 1,975,372 123,886
Community development 2,142,175 2,125,619 1,851,148 274,471
Nondepartmental 471,919 204,913 11,121 193,792
Capital projects 1,307,144 2,376,339 1,010,825 1,365,514
Debt service:
Principal retirement 7,154,905 7,155,126 8,128,744 (973,618)
Interest and other fiscal charges 2,636,756 2,636,838 2,995,640 (358,802)
Total expenditures 72,910,257$ 78,482,697$ 71,180,312$ 7,302,385$
Excess (deficiency) of revenues over (under) expenditures 355,220$ (4,796,153)$ 745,131$ 5,541,284$
OTHER FINANCING SOURCES (USES)
Transfers in 30,000$ 184,662$ 389$ (184,273)$
Transfers out (1,653,594) (2,035,826) (1,764,131) 271,695
Issuance of capital leases - - 153,290 153,290
Total other financing sources (uses)(1,623,594)$ (1,851,164)$ (1,610,452)$ 240,712$
Net change in fund balances (1,268,374)$ (6,647,317)$ (865,321)$ 5,781,996$
Fund balances - beginning, as restated 1,268,374 6,647,317 26,098,720 19,451,403
Fund balances - ending -$ -$ 25,233,399$ 25,233,399$
Budgeted Amounts
County of Pittsylvania, Virginia
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2019
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Exhibit 12
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Miscellaneous -$ 14,697$ 22,615$ 7,918$
Recovered costs - 35,497 35,497 -
Intergovernmental 5,623,940 7,201,682 3,609,772 (3,591,910)
Total revenues 5,623,940$ 7,251,876$ 3,667,884$ (3,583,992)$
EXPENDITURES
Current:
Community development 7,792,727$ 10,748,803$ 6,261,236$ 4,487,567$
Excess (deficiency) of revenues over (under) expenditures (2,168,787)$ (3,496,927)$ (2,593,352)$ 903,575$
OTHER FINANCING SOURCES (USES)
Transfers in 1,623,594$ 1,623,594$ 1,623,594$ -$
Net change in fund balances (545,193)$ (1,873,333)$ (969,758)$ 903,575$
Fund balances - beginning 545,193 1,873,333 1,622,870 (250,463)
Fund balances - ending -$ -$ 653,112$ 653,112$
Budgeted Amounts
County of Pittsylvania, Virginia
Special Revenue Fund - Industrial Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2019
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Exhibit 13
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Revenue from the use of money and property 250,000$ 250,000$ 437,847$ 187,847$
Miscellaneous 1,000 2,625 3,979 1,354
Intergovernmental 3,755,884 5,113,865 2,428,083 (2,685,782)
Total revenues 4,006,884$ 5,366,490$ 2,869,909$ (2,496,581)$
EXPENDITURES
Current:
Health and welfare 4,006,884$ 5,372,479$ 2,564,673$ 2,807,806$
Excess (deficiency) of revenues over (under) expenditures -$ (5,989)$ 305,236$ 311,225$
Net change in fund balances -$ (5,989)$ 305,236$ 311,225$
Fund balances - beginning - 5,989 236,403 230,414
Fund balances - ending -$ -$ 541,639$ 541,639$
Budgeted Amounts
County of Pittsylvania, Virginia
Special Revenue Fund - Workforce Investment Act
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2019
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Exhibit 14
2018 2017
Total OPEB liability
Service cost $94,000 $92,000
Interest 78,000 75,000
Changes in assumptions (75,000) -
Differences between expected and actual experience (396,000) -
Benefit payments (104,000) (64,000)
Net change in total OPEB liability $(403,000) $103,000
Total OPEB liability - beginning 2,144,000 2,041,000
Total OPEB liability - ending $1,741,000 $2,144,000
Covered employee payroll $11,659,905 $11,312,022
County's total OPEB liability (asset) as a percentage of
covered employee payroll 14.93%18.95%
County of Pittsylvania, Virginia
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
Primary Government
For the Measurement Dates of July 1, 2018 and 2017
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
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Packet Pg. 117 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 15
2018 2017
Total OPEB liability
Service cost $285,000 $278,000
Interest 284,000 287,000
Changes in assumptions (720,000) -
Differences between expected and actual experience 102,000 -
Benefit payments (741,000) (555,000)
Net change in total OPEB liability $(790,000) $10,000
Total OPEB liability - beginning 8,066,000 8,056,000
Total OPEB liability - ending $7,276,000 $8,066,000
Covered employee payroll $48,729,160 $42,557,261
Pittsylvania School Board's total OPEB liability (asset) as a percentage of
covered employee payroll 14.93%18.95%
County of Pittsylvania, Virginia
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
School Board
For the Measurement Dates of July 1, 2018 and 2017
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
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Exhibit 16
County and School Board
Valuation Date:7/1/2018
Measurement Date:7/1/2018
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
Methods and assumptions used to determine OPEB liability:
County of Pittsylvania, Virginia
Notes to Required Supplementary Information - Health Insurance OPEB
For the Year Ended June 30, 2019
Mortality Rates The mortality rates were based on the RP-2014 Mortality
Table fully generational,with base year 2006,projected
using two-dimensional mortality improvement scale MP-2018.
Inflation 2.50% per year as of July 1, 2018
Healthcare Trend Rate The healthcare trend rate assumption starts at 7.00%for
2019 decreasing by 0.33%per year to an ultimate rate of
5.00%
Salary Increase Rates The salary increase is 2.50% as of July 1, 2018
Actuarial Cost Method Entry age normal
Discount Rate 3.62% as of July 1, 2018
Retirement Age Retirement is assumed to occur beginning once a participant
attains age 55 and completes 5 years of service or age 50 and
completes 10 years of service.
Participation Percentage 50%of active participants who retire at age 50 or greater are
assumed to elect coverage in retirement.25%of their
spouses are assumed to elect coverage in retirement.100%
of actives who become disabled are assumed to elect
coverage.
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Exhibit 17
Employer's
Proportionate Share
Employer's of the Net GLI OPEB
Employer's Proportionate Liability (Asset)Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset)Payroll (3)/(4)GLI OPEB Liability
(2)(3)(4)(5)(6)
0.0777%$1,181,000 $14,778,504 7.99%51.22%
0.0776%1,167,000 14,305,441 8.16%48.86%
County of Pittsylvania, Virginia
Schedule of County's Share of Net OPEB Liability
Group Life Insurance Program
For the Measurement Dates of June 30, 2018 and 2017
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
Date
(1)
2017
2018
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Exhibit 18
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $76,404 $76,404 $- $14,700,404 0.52%
2018 76,806 76,806 - 14,778,504 0.52%
2017 74,388 74,388 - 14,305,441 0.52%
2016 66,525 66,525 - 13,859,466 0.48%
2015 63,900 63,900 - 13,312,443 0.48%
2014 62,160 62,160 - 12,950,023 0.48%
2013 60,070 60,070 - 12,514,511 0.48%
2012 34,649 34,649 - 12,374,704 0.28%
2011 34,463 34,463 - 12,308,181 0.28%
2010 24,960 24,960 - 9,244,521 0.27%
County of Pittsylvania, Virginia
Schedule of Employer Contributions - County
Group Life Insurance Program
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 121 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 19
Employer's
Proportionate Share
Employer's of the Net GLI OPEB
Employer's Proportionate Liability (Asset)Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset)Payroll (3)/(4)GLI OPEB Liability
(2)(3)(4)(5)(6)
0.2324%$3,529,000 $44,186,097 7.99%51.22%
0.2242%3,374,000 41,346,360 8.16%48.86%
2018
2017
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
(1)
County of Pittsylvania, Virginia
Schedule of School Board Teacher's Share of Net OPEB Liability
Group Life Insurance Program
For the Measurement Dates of June 30, 2018 and 2017
Date
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Packet Pg. 122 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 20
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $231,359 $231,359 $- $44,492,645 0.52%
2018 229,700 229,700 - 44,186,097 0.52%
2017 215,001 215,001 - 41,346,360 0.52%
2016 193,522 193,522 - 40,317,085 0.48%
2015 191,106 191,106 - 39,813,789 0.48%
2014 183,735 183,735 - 38,278,122 0.48%
2013 178,288 178,288 - 37,143,367 0.48%
2012 108,737 108,737 - 38,834,816 0.28%
2011 110,003 110,003 - 39,286,727 0.28%
2010 80,691 80,691 - 29,885,790 0.27%
County of Pittsylvania, Virginia
Schedule of Employer Contributions - School Board Teacher
Group Life Insurance Program
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 123 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 21
Employer's
Proportionate Share
Employer's of the Net GLI OPEB
Employer's Proportionate Liability (Asset)Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset)Payroll (3)/(4)GLI OPEB Liability
(2)(3)(4)(5)(6)
0.0148%$224,000 $2,810,568 7.97%51.22%
0.0154%232,000 2,843,865 8.16%48.86%
2018
2017
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available. However,
additional years will be included as they become available.
(1)
County of Pittsylvania, Virginia
Schedule of School Board Nonprofessional's Share of Net OPEB Liability
Group Life Insurance Program
For the Measurement Dates of June 30, 2018 and 2017
Date
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Packet Pg. 124 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 22
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $14,898 $14,898 $- $2,865,151 0.52%
2018 14,609 14,609 - 2,810,568 0.52%
2017 14,788 14,788 - 2,843,865 0.52%
2016 13,408 13,408 - 2,793,343 0.48%
2015 13,009 13,009 - 2,710,136 0.48%
2014 14,744 14,744 - 3,071,713 0.48%
2013 14,191 14,191 - 2,956,535 0.48%
2012 8,470 8,470 - 3,024,896 0.28%
2011 8,699 8,699 - 3,106,938 0.28%
2010 6,213 6,213 - 2,301,072 0.27%
County of Pittsylvania, Virginia
Schedule of Employer Contributions - School Board Nonprofessional
Group Life Insurance Program
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 125 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 23
Teachers
Largest Ten Locality Employers - General Employees
Non-Largest Ten Locality Employers - General Employees
Largest Ten Locality Employers - Hazardous Duty Employees
Non-Largest Ten Locality Employers - Hazardous Duty Employees
Changes of benefit terms –There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Changes of assumptions –The following changes in actuarial assumptions were made effective June 30, 2016
based on the most recent experience study of the System for the four-year period ending June 30, 2016:
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Retirement Rates Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
No change
Increased rate from 14% to 20%
Retirement Rates Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at each age
and service year
Disability Rates Lowered disability rates
Updated to a more current mortality table - RP-2014 projected
to 2020
Retirement Rates Lowered retirement rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at each age
and service year
Withdrawal Rates Adjusted termination rates to better fit experience at each age
and service year
Disability Rates
Salary Scale
Line of Duty Disability
Lowered disability rates
No change
Increased rate from 14% to 15%
County of Pittsylvania, Virginia
Notes to Required Supplementary Information
Group Life Insurance Program
For the Year Ended June 30, 2019
Salary Scale
Line of Duty Disability
Retirement Rates Increased age 50 rates and lowered rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at each age
and service year
Disability Rates Adjusted rates to better match experience
No change
Decreased rate from 60% to 45%
Disability Rates
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Increased disability rates
No change
Increased rate from 60% to 70%
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Adjusted rates to better match experience
No change
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Retirement Rates Lowered rates at older ages and changed final retirement from
70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year age and
service through 9 years of service
Disability Rates
Salary Scale
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Packet Pg. 126 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 24
2018 2017
Total HIC OPEB Liability
Service cost $10,816 $12,454
Interest 40,909 40,771
Changes of benefit terms - -
Differences between expected and actual experience 9,815 -
Changes in assumptions - (16,465)
Benefit payments (44,133) (25,441)
Net change in total HIC OPEB liability $17,407 $11,319
Total HIC OPEB Liability - beginning 606,480 595,161
Total HIC OPEB Liability - ending (a)$623,887 $606,480
Plan fiduciary net position
Contributions - employer $28,042 $27,160
Net investment income 27,141 40,026
Benefit payments (44,133) (25,441)
Administrative expense (624) (650)
Other (2,018) 2,018
Net change in plan fiduciary net position $8,408 $43,113
Plan fiduciary net position - beginning 388,578 345,465
Plan fiduciary net position - ending (b)$396,986 $388,578
County of Pittsylvania's net HIC OPEB liability - ending (a) - (b)$226,901 $217,902
Plan fiduciary net position as a percentage of the total
HIC OPEB liability 63.63%64.07%
Covered payroll $14,759,147 $14,294,169
County of Pittsylvania's net HIC OPEB liability as a percentage of
covered payroll 1.54%1.52%
County of Pittsylvania, Virginia
Schedule of Changes in the County's Net OPEB Liability and Related Ratios
Health Insurance Credit (HIC) Program
For the Measurement Dates of June 30, 2018 and 2017
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available.However,
additional years will be included as they become available.
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Packet Pg. 127 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 25
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $27,861 $27,861 $- $14,663,677 0.19%
2018 28,652 28,652 - 14,759,147 0.19%
2017 27,160 27,160 - 14,294,169 0.19%
2016 26,313 26,313 - 13,848,961 0.19%
2015 25,288 25,288 - 13,309,410 0.19%
2014 16,808 16,808 - 12,928,613 0.13%
2013 16,235 16,235 - 12,488,170 0.13%
2012 19,766 19,766 - 12,353,575 0.16%
2011 19,650 19,650 - 12,280,999 0.16%
2010 - - - 12,308,072 0.00%
County of Pittsylvania, Virginia
Schedule of Employer Contributions - County
Health Insurance Credit (HIC) Program
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 128 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 26
2018 2017
Total HIC OPEB Liability
Service cost $9,246 $10,897
Interest 13,464 12,310
Differences between expected and actual experience (6,419) -
Changes in assumptions - (32,389)
Benefit payments (22,067) (21,078)
Net change in total HIC OPEB liability $(5,776) $(30,260)
Total HIC OPEB Liability - beginning 389,235 419,495
Total HIC OPEB Liability - ending (a)$383,459 $389,235
Plan fiduciary net position
Contributions - employer $26,449 $26,507
Net investment income 1 -
Benefit payments (22,067) (21,078)
Net change in plan fiduciary net position $4,383 $5,429
Plan fiduciary net position - beginning (9,753) (15,182)
Plan fiduciary net position - ending (b)$(5,370) $(9,753)
Pittsylvania School Board's net HIC OPEB liability - ending (a) - (b)$388,829 $398,988
Plan fiduciary net position as a percentage of the total
HIC OPEB liability -1.40%-2.51%
Covered payroll $2,803,851 $2,819,928
Pittsylvania School Board's net HIC OPEB liability as a percentage of
covered payroll 13.87%14.15%
County of Pittsylvania, Virginia
Schedule of Changes in the School's Nonprofessional Net OPEB Liability and Related Ratios
Health Insurance Credit (HIC) Program
For the Measurement Dates of June 30, 2018 and 2017
Schedule is intended to show information for 10 years.Information prior to the 2017 valuation is not available.However,
additional years will be included as they become available.
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Packet Pg. 129 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 27
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $28,931 $28,931 $- $2,849,165 1.02%
2018 26,330 26,330 - 2,803,851 0.94%
2017 26,507 26,507 - 2,819,928 0.94%
2016 13,371 13,371 - 2,785,662 0.48%
2015 12,750 12,750 - 2,656,294 0.48%
County of Pittsylvania, Virginia
Schedule of School Board Nonprofessional Employer Contributions
Health Insurance Credit (HIC) Program
For the Years Ended June 30, 2015 through June 30, 2019
This Schedule is intended to show 10 years of information but the School Board only started participating in
fiscal year 2015. Additional years will be added as they are available.
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Packet Pg. 130 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 28
Largest Ten Locality Employers - General Employees
Non-Largest Ten Locality Employers - General Employees
Largest Ten Locality Employers - Hazardous Duty Employees
Non-Largest Ten Locality Employers - Hazardous Duty Employees
Lowered disability rates
No change
Increased rate from 14% to 15%
Decreased rate from 60% to 45%
No change
Adjusted rates to better match experience
Increased rate from 60% to 70%
No change
Increased disability rates
Updated to a more current mortality table - RP-2014
projected to 2020
Lowered retirement rates at older ages
County of Pittsylvania, Virginia
Notes to Required Supplementary Information
Health Insurance Credit (HIC) Program
For the Year Ended June 30, 2019
Lowered disability ratesDisability Rates
Changes of assumptions –The following changes in actuarial assumptions were made effective June 30, 2016
based on the most recent experience study of the System for the four-year period ending June 30, 2016:
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Increased age 50 rates and lowered rates at older ages
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Disability Rates
Disability Rates
Salary Scale
Line of Duty Disability
Disability Rates
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Retirement Rates
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014
projected to 2020
Retirement Rates Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Withdrawal Rates Adjusted termination rates to better fit experience at each
age and service year
Salary Scale
Line of Duty Disability
Updated to a more current mortality table - RP-2014
projected to 2020
Lowered retirement rates at older ages and extended final
retirement age from 70 to 75
Adjusted termination rates to better fit experience at each
age and service year
No change
Increased rate from 14% to 20%
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Retirement Rates
Withdrawal Rates
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Packet Pg. 131 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 29
Employer's
Proportionate Share
Employer's of the Net HIC OPEB
Employer's Proportionate Liability (Asset)Plan Fiduciary
Proportion of the Share of the Employer's as a Percentage of Net Position as a
Net HIC OPEB Net HIC OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset)Payroll (3)/(4)HIC OPEB Liability
(2)(3)(4)(5)(6)
0.5446%$6,914,000 $44,028,760 15.70%8.08%
0.5232%6,637,000 41,273,292 16.08%7.04%
County of Pittsylvania, Virginia
Schedule of School Board's Share of Net OPEB Liability
Teacher Employee Health Insurance Credit (HIC) Program
For the Measurement Dates of June 30, 2018 and 2017
Date
(1)
2017
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available.
However, additional years will be included as they become available.
2018
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Packet Pg. 132 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 30
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)Payroll Payroll
Date (1)(2)(3)(4)(5)
2019 $533,911 $533,911 $- $44,492,580 1.20%
2018 541,549 541,549 - 44,028,760 1.23%
2017 458,330 458,330 - 41,273,292 1.11%
2016 425,552 425,552 - 39,808,563 1.07%
2015 420,878 420,878 - 39,414,097 1.07%
2014 424,044 424,044 - 38,164,275 1.11%
2013 410,850 410,850 - 37,015,327 1.11%
2012 232,157 232,157 - 38,692,772 0.60%
2011 235,121 235,121 - 39,186,784 0.60%
2010 309,737 309,737 - 41,857,232 0.74%
County of Pittsylvania, Virginia
Schedule of Employer Contributions
Teacher Employee Health Insurance Credit (HIC) Program
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 133 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 31
Changes of assumptions –The following changes in actuarial assumptions were made effective June 30, 2016
based on the most recent experience study of the System for the four-year period ending June 30, 2016:
County of Pittsylvania, Virginia
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions
since the prior actuarial valuation.
Withdrawal Rates Adjusted rates to better fit experience at each year age and
service through 9 years of service
Notes to Required Supplementary Information
Teacher Employee Health Insurance Credit (HIC) Program
For the Year Ended June 30, 2019
Disability Rates
Salary Scale
Mortality Rates (pre-retirement, post-
retirement healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected
to 2020
Retirement Rates Lowered rates at older ages and changed final retirement from
70 to 75
Adjusted rates to better match experience
No change
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Packet Pg. 134 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 32
2018 2017 2016 2015 2014
Total pension liability
Service cost $ 1,552,874 $ 1,627,407 $ 1,592,178 $ 1,561,447 $ 1,597,926
Interest 4,557,967 4,386,198 4,226,561 4,054,448 3,853,717
Changes of benefit terms 260,443 - - - -
Differences between expected and actual experience 474,277 (157,351) (430,827) (255,709) -
Changes in assumptions - (171,451) - - -
Benefit payments, including refunds of employee contributions (3,376,271) (3,085,649) (3,129,127) (2,673,712) (2,494,405)
Net change in total pension liability $ 3,469,290 $ 2,599,154 $ 2,258,785 $ 2,686,474 $ 2,957,238
Total pension liability - beginning 66,801,952 64,202,798 61,944,013 59,257,539 56,300,301
Total pension liability - ending (a)$ 70,271,242 $ 66,801,952 $ 64,202,798 $ 61,944,013 $ 59,257,539
Plan fiduciary net position
Contributions - employer $ 1,392,480 $ 1,358,939 $ 1,259,536 $ 1,217,249 $ 1,162,861
Contributions - employee 716,663 705,141 684,974 666,219 649,664
Net investment income 4,533,806 6,785,854 950,219 2,482,371 7,499,569
Benefit payments, including refunds of employee contributions (3,376,271) (3,085,649) (3,129,127) (2,673,712) (2,494,405)
Administrative expense (39,457) (39,392) (35,171) (34,270) (40,586)
Other (4,027) (6,026) (410) (526) 396
Net change in plan fiduciary net position $ 3,223,194 $ 5,718,867 $ (269,979) $ 1,657,331 $ 6,777,499
Plan fiduciary net position - beginning 61,660,365 55,941,498 56,211,477 54,554,146 47,776,647
Plan fiduciary net position - ending (b)$ 64,883,559 $ 61,660,365 $ 55,941,498 $ 56,211,477 $ 54,554,146
County's net pension liability - ending (a) - (b)$ 5,387,683 $ 5,141,587 $ 8,261,300 $ 5,732,536 $ 4,703,393
Plan fiduciary net position as a percentage of the total
pension liability 92.33%92.30%87.13%90.75%92.06%
Covered payroll $ 14,759,147 $ 14,294,168 $ 13,848,961 $ 13,309,411 $ 12,928,614
County's net pension liability as a percentage of
covered payroll 36.50%35.97%59.65%43.07%36.38%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they
become available.
County of Pittsylvania, Virginia
Schedule of Changes in Net Pension Liability and Related Ratios
Primary Government
For the Measurement Dates of June 30, 2014 through June 30, 2018
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Packet Pg. 135 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 33
2018 2017 2016 2015 2014
Total pension liability
Service cost $ 284,563 $ 287,778 $ 288,380 $ 346,582 $ 331,124
Interest 953,988 959,558 965,041 944,972 918,214
Changes of benefit terms - - - - -
Differences between expected and actual experience 107,647 (246,249) (413,256) (93,323) -
Changes in assumptions - (148,814) - - -
Benefit payments, including refunds of employee contributions (939,281) (924,400) (912,609) (910,435) (823,734)
Net change in total pension liability $ 406,917 $ (72,127) $ (72,444) $ 287,796 $ 425,604
Total pension liability - beginning 14,098,040 14,170,167 14,242,611 13,954,815 13,529,211
Total pension liability - ending (a)$ 14,504,957 $ 14,098,040 $ 14,170,167 $ 14,242,611 $ 13,954,815
Plan fiduciary net position
Contributions - employer $ 214,640 $ 217,553 $ 295,254 $ 283,578 $ 228,996
Contributions - employee 133,817 135,498 135,599 132,471 152,042
Net investment income 976,204 1,494,086 212,712 570,904 1,768,407
Benefit payments, including refunds of employee contributions (939,281) (924,400) (912,609) (910,435) (823,734)
Administrative expense (8,749) (9,014) (8,145) (8,196) (9,813)
Other (857) (1,312) (92) (120) 93
Net change in plan fiduciary net position $ 375,774 $ 912,411 $ (277,281) $ 68,202 $ 1,315,991
Plan fiduciary net position - beginning 13,429,219 12,516,808 12,794,089 12,725,887 11,409,896
Plan fiduciary net position - ending (b)$ 13,804,993 $ 13,429,219 $ 12,516,808 $ 12,794,089 $ 12,725,887
School Division's net pension liability - ending (a) - (b)$ 699,964 $ 668,821 $ 1,653,359 $ 1,448,522 $ 1,228,928
Plan fiduciary net position as a percentage of the total
pension liability 95.17%95.26%88.33%89.83%91.19%
Covered payroll $ 2,803,851 $ 2,819,928 $ 2,785,662 $ 2,656,294 $ 3,045,724
School Division's net pension liability as a percentage of
covered payroll 24.96%23.72%59.35%54.53%40.35%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they
become available.
County of Pittsylvania, Virginia
Schedule of Changes in Net Pension Liability and Related Ratios
Component Unit School Board (nonprofessional)
For the Measurement Dates of June 30, 2014 through June 30, 2018
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Packet Pg. 136 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 34
2018 2017 2016 2015 2014
Employer's Proportion of the Net Pension Liability 0.5473% 0.5246% 0.5265% 0.5340% 0.5224%
Employer's Proportionate Share of the Net Pension Liability $ 64,357,000 $ 64,515,000 $ 73,790,000 $ 67,217,000 $ 63,129,000
Employer's Covered Payroll $ 44,028,760 $ 41,273,292 $ 39,808,563 $ 39,414,097 $ 38,164,275
Employer's Proportionate Share of the Net Pension Liability as a
Percentage of its Covered Payroll 146.17% 156.31% 185.36% 170.54% 165.41%
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 74.81% 72.92% 68.28% 70.68% 70.88%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become
available.
County of Pittsylvania, Virginia
Schedule of Employer's Share of Net Pension Liability VRS Teacher Retirement Plan
For the Measurement Dates of June 30, 2014 through June 30, 2018
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Packet Pg. 137 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 35
Contributions in
Relation to Contributions
Contractually Contractually Contribution Employer's as a % of
Required Required Deficiency Covered Covered
Contribution Contribution (Excess)* Payroll Payroll
Date (1) (2) (3) (4) (5)
Primary Government
2019 $ 1,353,100 $ 1,353,100 $ - $ 14,663,677 9.23%
2018 1,392,480 1,392,480 - 14,759,147 9.43%
2017 1,358,939 1,358,939 - 14,294,168 9.51%
2016 1,592,630 1,261,351 331,279 13,848,961 9.11%
2015 1,530,582 1,217,249 313,333 13,309,411 9.15%
2014 1,595,391 1,163,575 431,816 12,928,614 9.00%
2013 1,542,684 1,125,134 417,550 12,501,494 9.00%
2012 1,111,822 1,111,822 - 12,353,575 9.00%
2011 1,105,290 1,105,290 - 12,280,999 9.00%
2010 1,095,418 1,095,418 - 12,308,072 8.90%
Component Unit School Board (nonprofessional)
2019 $ 203,666 $ 203,666 $ - $ 2,849,165 7.15%
2018 214,640 214,640 - 2,803,851 7.66%
2017 217,553 217,553 - 2,819,928 7.71%
2016 295,656 295,656 - 2,785,662 10.61%
2015 283,578 283,578 - 2,656,294 10.68%
2014 327,415 229,343 98,072 3,045,724 7.53%
2013 316,132 221,440 94,692 2,940,764 7.53%
2012 201,188 201,188 - 2,980,557 6.75%
2011 208,691 208,691 - 3,091,713 6.75%
2010 210,680 210,680 - 3,135,115 6.72%
Component Unit School Board (professional)
2019 $ 6,854,257 $ 6,854,257 $- $ 44,492,580 15.41%
2018 7,075,682 7,075,682 - 44,028,760 16.07%
2017 5,997,754 5,997,754 - 41,273,292 14.53%
2016 5,597,084 5,597,084 - 39,808,563 14.06%
2015 5,715,044 5,715,044 - 39,414,097 14.50%
2014 5,430,544 5,430,544 - 38,164,275 14.23%
2013 6,167,731 6,167,731 - 37,015,327 16.66%
2012 4,383,891 4,383,891 - 38,692,772 11.33%
2011 3,499,380 3,499,380 - 39,186,784 8.93%
2010 4,716,692 4,716,692 - 41,857,232 11.27%
County of Pittsylvania, Virginia
Schedule of Employer Contributions
For the Years Ended June 30, 2010 through June 30, 2019
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Packet Pg. 138 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 36
Largest 10 – Non-Hazardous Duty:
All Others (Non 10 Largest) – Non-Hazardous Duty:
Largest 10 – Hazardous Duty:
All Others (Non 10 Largest) – Hazardous Duty:
Component Unit School Board - Professional Employees
Notes to Required Supplementary Information
County of Pittsylvania, Virginia
Retirement Rates Lowered rates at older ages and changed final retirement from 70 to
75
For the Year Ended June 30, 2019
Changes of assumptions – The following changes in actuarial assumptions were made effective June 30, 2016 based on the most
recent experience study of the System for the four-year period ending June 30, 2016:
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the prior
actuarial valuation.
Increased rate from 14% to 20%
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected to
2020
Lowered rates
No change
Increased rate from 14% to 15%
Increased rates
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Disability Rates
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected to
2020
Lowered rates
No change
Line of Duty Disability
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected to
2020
Retirement Rates Lowered rates at older ages and changed final retirement from 70 to
75
No change
Increased rate from 60% to 70%
Adjusted rates to better fit experience
Disability Rates
Salary Scale
Disability Rates
Salary Scale No change
Salary Scale
Line of Duty Disability
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Updated to a more current mortality table - RP-2014 projected to
2020
Retirement Rates Lowered rates at older ages
Withdrawal Rates
No change
Adjusted rates to better match experience Disability Rates
Salary Scale
Mortality Rates (pre-retirement, post-retirement
healthy, and disabled)
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Updated to a more current mortality table - RP-2014 projected to
2020
Retirement Rates Lowered rates at older ages and changed final retirement from 70 to
75
Line of Duty Disability
Adjusted rates to better fit experience
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Disability Rates
Decreased rate from 60% to 45%
Retirement Rates Increased age 50 rates, and lowered rates at older ages
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
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Packet Pg. 139 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Other Supplementary Information
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Packet Pg. 140 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 37
Total
Debt School Capital Nonmajor
Forfeited Assets Service Reserve Improvements Governmental
Fund Fund Fund Funds
ASSETS
Cash and cash equivalents 520,243$ 204,092$ 9,355$ 733,690$
Total assets 520,243$ 204,092$ 9,355$ 733,690$
LIABILITIES
Accounts payable 9,848$ -$ -$ 9,848$
Total liabilities 9,848$ -$ -$ 9,848$
FUND BALANCES
Restricted:
Construction -$ -$ 9,355$ 9,355$
Forfeited Assets Fund 510,395 - - 510,395
Assigned:
Debt service - 204,092 - 204,092
Total fund balances 510,395$ 204,092$ 9,355$ 723,842$
Total liabilities and fund balances 520,243$ 204,092$ 9,355$ 733,690$
County of Pittsylvania, Virginia
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2019
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Packet Pg. 141 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 38
Total
Debt School Capital Nonmajor
Forfeited Assets Service Reserve Improvements Governmental
Fund Fund Fund Funds
REVENUES
Revenue from the use of money and property 450$ -$ -$ 450$
Intergovernmental 180,111 - - 180,111
Total revenues 180,561$ -$ -$ 180,561$
EXPENDITURES
Current:
Public safety 233,211$ -$ -$ 233,211$
Total expenditures 233,211$ -$ -$ 233,211$
Excess (deficiency) of revenues over (under)
expenditures (52,650)$ -$ -$ (52,650)$
Net change in fund balances (52,650)$ -$ -$ (52,650)$
Fund balances - beginning 563,045 204,092 9,355 776,492
Fund balances - ending 510,395$ 204,092$ 9,355$ 723,842$
County of Pittsylvania, Virginia
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2019
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Packet Pg. 142 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 39
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Revenue from the use of money and property 300$ 300$ 450$ 150$
Intergovernmental 62,000 62,000 180,111 118,111
Total revenues 62,300$ 62,300$ 180,561$ 118,261$
EXPENDITURES
Current:
Public safety 145,000$ 305,000$ 233,211$ 71,789$
Excess (deficiency) of revenues over (under)
expenditures (82,700)$ (242,700)$ (52,650)$ 190,050$
Net change in fund balances (82,700)$ (242,700)$ (52,650)$ 190,050$
Fund balances - beginning 82,700 242,700 563,045 320,345
Fund balances - ending -$ -$ 510,395$ 510,395$
Forfeited Assets Fund
Budgeted Amounts
County of Pittsylvania, Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Fund
For the Year Ended June 30, 2019
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Packet Pg. 143 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 40
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Total revenues -$ -$ -$ -$
EXPENDITURES
Total expenditures -$ -$ -$ -$
Excess (deficiency) of revenues over (under) expenditures -$ -$ -$ -$
Net change in fund balances -$ -$ -$ -$
Fund balances - beginning - - 204,092 204,092
Fund balances - ending -$ -$ 204,092$ 204,092$
County of Pittsylvania, Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Debt Service Reserve Fund
For the Year Ended June 30, 2019
Budgeted Amounts
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Packet Pg. 144 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 41
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Total revenues -$ -$ -$ -$
EXPENDITURES
Total expenditures -$ -$ -$ -$
Excess (deficiency) of revenues over (under)
expenditures -$ -$ -$ -$
Net change in fund balances -$ -$ -$ -$
Fund balances - beginning - - 9,355 9,355
Fund balances - ending -$ -$ 9,355$ 9,355$
County of Pittsylvania, Virginia
Nonmajor Capital Projects Fund - School Capital Improvements
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2019
School Capital Improvements
Budgeted Amounts
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Packet Pg. 145 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
INTERNAL SERVICE FUNDS
Central Stores -The Central Stores fund accounts for the Primary
Government's consolidated purchasing. The Primary Government
bills internally for the department's usage.
Self-Insurance -The Self-Health Insurance fund accounts for
insurance premiums paid by the County and for all departments.
Internal billings are prepared for all departments.
5.a.a
Packet Pg. 146 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 42
Central Self-
Stores Insurance
Fund Fund Total
ASSETS
Current assets:
Cash and cash equivalents -$ 4,707,990$ 4,707,990$
Accounts receivables, net of allowances for uncollectibles 36,170 1,255,078 1,291,248
Inventories 6,734 - 6,734
Total assets 42,904$ 5,963,068$ 6,005,972$
LIABILITIES
Current liabilities:
Accounts payable 2,555$ -$ 2,555$
Estimate of incurred but unreported health claims - 1,189,092 1,189,092
Due to other funds 37,086 - 37,086
Total liabilities 39,641$ 1,189,092$ 1,228,733$
NET POSITION
Restricted for health insurance claims -$ 4,773,976$ 4,773,976$
Unrestricted 3,263 - 3,263
Total net position 3,263$ 4,773,976$ 4,777,239$
Internal Service Funds
County of Pittsylvania, Virginia
Combining Statement of Net Position
June 30, 2019
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Packet Pg. 147 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 43
Central Self-
Stores Insurance
Fund Fund Total
OPERATING REVENUES
Charges for services:
Materials and supplies 461,454$ -$ 461,454$
Insurance premiums - 13,764,336 13,764,336
Total operating revenues 461,454$ 13,764,336$ 14,225,790$
OPERATING EXPENSES
Supplies, insurance and telephone 432,744$ -$ 432,744$
Insurance claims and expenses - 12,738,366 12,738,366
Total operating expenses 432,744$ 12,738,366$ 13,171,110$
Operating income (loss) 28,710$ 1,025,970$ 1,054,680$
Total net position - beginning (25,447) 3,748,006 3,722,559
Total net position - ending 3,263$ 4,773,976$ 4,777,239$
County of Pittsylvania, Virginia
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2019
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Packet Pg. 148 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 44
Central Self-
Stores Insurance
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts for materials and supplies 440,031$ -$ 440,031$
Receipts for insurance premiums - 13,659,816 13,659,816
Payments to suppliers (455,074) - (455,074)
Payments for premiums - (12,817,774) (12,817,774)
Net cash provided by (used for) operating activities (15,043)$ 842,042$ 826,999$
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Interfund borrowings 15,043$ -$ 15,043$
Net increase (decrease) in cash and cash equivalents -$ 842,042$ 842,042$
Cash and cash equivalents - beginning - 3,865,948 3,865,948
Cash and cash equivalents - ending -$ 4,707,990$ 4,707,990$
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss) 28,710$ 1,025,970$ 1,054,680$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
(Increase) decrease in accounts receivable (21,423) (104,520) (125,943)
(Increase) decrease in inventories (844) - (844)
Increase (decrease) in accounts payable (21,486) (79,408) (100,894)
Total adjustments (43,753)$ (183,928)$ (227,681)$
Net cash provided by (used for) operating activities (15,043)$ 842,042$ 826,999$
County of Pittsylvania, Virginia
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2019
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Packet Pg. 149 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
FIDUCIARY FUNDS
Special Welfare Fund –The Special Welfare fund accounts for those
funds belonging to individuals entrusted to the local social services
agency, such as foster care children.
Cash Bond Fund –The Cash Bond fund accounts for those escrow
funds received from developers or contractors which, upon
satisfactory project completion, are returned to the developer or
contractor.
Sheriff Inmate Trust and Canteen Funds –The Sheriff Inmate Trust
and Canteen funds account for the inmate commissary, inmate
trust, and inmate monitoring funds.
Land Sales Fund –The County’s attorneys have established an
account to account for funds received as the result of land sales for
delinquent taxes. Funds are kept in this account until transferred
to the County’s Clerk’s office for processing.
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Packet Pg. 150 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 45
Sheriff's
Inmate Trust
Cash Land and Canteen
Special Bond Sales Account
Welfare Fund Fund Fund Total
ASSETS
Cash and cash equivalents 29,475$ 267,600$ -$ -$ 297,075$
Cash in custody of others - - 2,634 15,337 17,971
Total assets 29,475$ 267,600$ 2,634$ 15,337$ 315,046$
LIABILITIES
Amounts held for social services clients 29,475$ -$ -$ -$ 29,475$
Amounts held for developers - 267,600 - - 267,600
Amounts held for land sales - - 2,634 - 2,634
Amounts held for inmates - - - 15,337 15,337
Total liabilities 29,475$ 267,600$ 2,634$ 15,337$ 315,046$
Agency Funds
County of Pittsylvania, Virginia
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2019
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Packet Pg. 151 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 46
Beginning Ending
Balance Additions Deletions Balance
ASSETS
Cash and cash equivalents:
Special Welfare Fund 14,952$ 55,385$ 40,862$ 29,475$
Cash Bond Fund 332,565 4,035 69,000 267,600
Land Sales Fund 64,434 42,829 104,629 2,634
Cash in Custody of Others:
Sheriff Inmate Trust Fund 4,453 157,393 153,494 8,352
Sheriff Canteen Fund 7,799 58,810 59,624 6,985
Total assets 424,203$ 318,452$ 427,609$ 315,046$
LIABILITIES
Amounts held for social services clients 14,952$ 55,385$ 40,862$ 29,475$
Amounts held for developers 332,565 4,035 69,000 267,600
Amounts held for land sales 64,434 42,829 104,629 2,634
Amounts held for inmates 12,252 216,203 213,118 15,337
Total liabilities 424,203$ 318,452$ 427,609$ 315,046$
Agency Funds
County of Pittsylvania, Virginia
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2019
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Packet Pg. 152 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
DISCRETELY PRESENTED COMPONENT UNIT –SCHOOL BOARD
MAJOR GOVERNMENTAL FUNDS
School Operating Fund -The School Operating Fund accounts for
the operations of the County's school system. Financing is provided
by the State and Federal governments as well as contributions from
the General Fund.
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Packet Pg. 153 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 47
School
Operating
Fund
ASSETS
Cash and cash equivalents 1,570,741$
Receivables (net of allowance for uncollectibles):
Accounts receivable 427,434
Due from primary government 1,431,926
Due from other governmental units 2,035,208
Total assets 5,465,309$
LIABILITIES
Accounts payable 1,105,036$
Salaries payable 2,624,646
Unearned revenue 173,912
Total liabilities 3,903,594$
FUND BALANCES
Restricted:
School cafeteria 1,561,715$
Total fund balances 1,561,715$
Total liabilities and fund balances 5,465,309$
Amounts reported for governmental activities in the statement of net position (Exhibit 1) are different because:
Total fund balances per above 1,561,715$
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.
Land 2,709,971$
Construction in progress 283,507
Buildings and improvements 31,459,181
Machinery and equipment 2,680,385 37,133,044
Other long-term assets are not available to pay for current period expenditures, and, therefore are
reported as unavailable revenue in the funds.
Prepaid items 878,013
Deferred outflows of resources are not available to pay for current-period expenditures and,
therefore, are not reported in the funds.
Pension related items 10,895,416$
OPEB related items 2,177,099 13,072,515
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds.
Net pension liability (65,056,964)$
Net OPEB liabilities (18,331,829)
Compensated absences (1,683,656) (85,072,449)
Deferred inflows of resources are not due and payable in the current period and, therefore,
are not reported in the funds.
Pension related items (7,646,478)$
OPEB related items (1,136,591) (8,783,069)
Net position of governmental activities (41,210,231)$
County of Pittsylvania, Virginia
Balance Sheet
Discretely Presented Component Unit - School Board
June 30, 2019
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Packet Pg. 154 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 48
School
Operating
Fund
REVENUES
Revenue from the use of money and property 29,897$
Charges for services 1,607,152
Miscellaneous 623,344
Recovered costs 733,758
Intergovernmental 89,669,736
Total revenues 92,663,887$
EXPENDITURES
Current:
Education 92,421,846$
Excess (deficiency) of revenues over (under)
expenditures 242,041$
Net change in fund balances 242,041
Fund balances - beginning 1,319,674
Fund balances - ending 1,561,715$
Amounts reported for governmental activities in the statement of activities (Exhibit 2) are different because:
Net change in fund balances - total governmental funds - per above 242,041$
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 the depreciation expense exceeded
capital asset additions in the current period.
Capital asset additions 678,920$
Depreciation expense (2,095,851) (1,416,931)
The net effect of various miscellaneous transactions involving capital assets (i.e. sales and donations) is
to decrease net assets.(5,400)
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore are not reported as expenditures in governmental funds.
Change in compensated absences 319$
Change in net pension liabilities and related deferred items 2,431,089
Change in net OPEB liabilities and related deferred items 593,491 3,024,899
Certain items reported as expenditures in the fund statements are deferred and shown as assets on
the statement of net position.
Change in prepaid items 34,570
Change in net position of governmental activities 1,879,179$
County of Pittsylvania, Virginia
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds - Discretely Presented Component Unit - School Board
For the Year Ended June 30, 2019
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Packet Pg. 155 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Exhibit 49
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Revenue from the use of money and property 32,950$ 32,950$ 29,897$ (3,053)$
Charges for services 1,823,155 1,938,155 1,607,152 (331,003)
Miscellaneous 406,500 488,795 623,344 134,549
Recovered costs 532,950 532,950 733,758 200,808
Intergovernmental 91,868,482 96,270,953 89,669,736 (6,601,217)
Total revenues 94,664,037$ 99,263,803$ 92,663,887$ (6,599,916)$
EXPENDITURES
Current:
Education 94,664,037$ 99,263,803$ 92,421,846$ 6,841,957$
Excess (deficiency) of revenues over (under)
expenditures -$ -$ 242,041$ 242,041$
Net change in fund balances - - 242,041 242,041
Fund balances - beginning - - 1,319,674 1,319,674
Fund balances - ending -$ -$ 1,561,715$ 1,561,715$
Budgeted Amounts
School Operating Fund
County of Pittsylvania, Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Discretely Presented Component Unit - School Board
For the Year Ended June 30, 2019
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Packet Pg. 156 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 1 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
General Fund:
Revenue from local sources:
General property taxes:
Real Property Tax 25,860,488$ 25,860,494$ 25,901,314$ 40,820$
Real and Personal PSC Tax 2,702,336 2,702,336 3,002,022 299,686
Personal Property Tax 7,933,740 7,933,740 8,112,473 178,733
Mobile Home Tax 241,316 241,316 245,715 4,399
Machinery and Tools Tax 1,992,428 1,992,428 1,933,516 (58,912)
Merchants Capital 382,283 382,283 400,533 18,250
Penalties 374,000 374,000 445,305 71,305
Interest 325,000 325,000 382,183 57,183
Total general property taxes 39,811,591$ 39,811,597$ 40,423,061$ 611,464$
Other local taxes:
Local Sales and Use Tax 2,563,830$ 2,563,830$ 2,633,244$ 69,414$
Consumers' Utility Tax 1,300,000 1,300,000 1,299,471 (529)
Consumption Taxes 200,000 200,000 204,994 4,994
Franchise License Tax - - 33,710 33,710
Business License Tax 500 500 700 200
Meals Tax 750,000 750,000 773,714 23,714
Motor Vehicle Licenses 2,393,447 2,393,447 2,347,943 (45,504)
Bank Stock Tax 70,000 70,000 85,746 15,746
Taxes on Recordation and Wills 299,000 299,000 349,399 50,399
Total other local taxes 7,576,777$ 7,576,777$ 7,728,921$ 152,144$
Permits, privilege fees, and regulatory licenses:
Building permits 70,000$ 70,000$ 76,359$ 6,359$
Cellular tower fees 18,250 18,250 21,900 3,650
Animal licenses 30,000 30,000 26,152 (3,848)
Permits and other licenses 20,100 20,100 13,717 (6,383)
Total permits, privilege fees, and regulatory licenses 138,350$ 138,350$ 138,128$ (222)$
Fines and forfeitures:
Court fines and forfeitures 220,000$ 220,000$ 190,695$ (29,305)$
Revenue from use of money and property:
Revenue from use of money 205,000$ 205,000$ 208,779$ 3,779$
Revenue from use of property 157,500 157,500 159,948 2,448
Total revenue from use of money and property 362,500$ 362,500$ 368,727$ 6,227$
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
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Packet Pg. 157 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 2 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
General Fund: (Continued)
Revenue from local sources: (Continued)
Charges for services:
Charges for courthouse security 65,000$ 65,000$ 57,780$ (7,220)$
Charges for parks and recreation 45,000 45,000 45,192 192
Charges for jail inmates 26,200 26,200 62,830 36,630
Charges for administration 42,000 42,000 42,000 -
Charges for library 8,000 8,000 25,473 17,473
Charges for sanitation and waste removal - - 83 83
Charges for courthouse maintenance - - 15,798 15,798
Charges for law library 8,000 8,000 11,402 3,402
Charges for fire prevention 4,000 4,000 1,250 (2,750)
Charges for commonwealth's attorney 4,500 4,500 4,089 (411)
Charges for law enforcement 4,500 4,500 5,013 513
Charges for animal control - - 31,246 31,246
Other charges for services 8,600 8,600 8,726 126
Total charges for services 215,800$ 215,800$ 310,882$ 95,082$
Miscellaneous:
Tax sales -$ -$ 121,244$ 121,244$
Miscellaneous other 113,730 193,471 217,627 24,156
Gifts and donations 12,900 132,933 137,692 4,759
City of Danville, Virginia revenue sharing 43,000 43,000 45,468 2,468
Total miscellaneous 169,630$ 369,404$ 522,031$ 152,627$
Recovered costs:
Jail reimbursements 248,365$ 248,365$ 274,594$ 26,229$
Sheriffs extra duty 130,000 130,000 202,212 72,212
Soil and water conservation district 120,339 120,339 101,596 (18,743)
School resource officer 109,000 109,000 110,375 1,375
City of Danville, Virginia 35,000 35,000 27,092 (7,908)
Health department 30,000 30,000 118,748 88,748
Social Services 48,000 48,000 60,997 12,997
Other recovered costs 29,496 424,253 385,980 (38,273)
Total recovered costs 750,200$ 1,144,957$ 1,281,594$ 136,637$
Total revenue from local sources 49,244,848$ 49,839,385$ 50,964,039$ 1,124,654$
Intergovernmental:
Revenue from the Commonwealth:
Noncategorical aid:
Motor vehicles carriers' tax 89,500$ 89,500$ 88,056$ (1,444)$
Mobile home titling tax 70,000 70,000 91,895 21,895
Motor vehicle rental tax 3,500 3,500 3,065 (435)
State recordation tax 78,997 78,997 84,419 5,422
State communications tax 2,100,000 2,100,000 1,926,051 (173,949)
Personal property tax relief act funds 4,139,277 4,139,277 4,139,277 -
Total noncategorical aid 6,481,274$ 6,481,274$ 6,332,763$ (148,511)$
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Packet Pg. 158 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 3 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
General Fund: (Continued)
Intergovernmental: (Continued)
Revenue from the Commonwealth: (Continued)
Categorical aid:
Shared expenses:
Commonwealth's Attorney 586,520$ 586,520$ 567,129$ (19,391)$
Sheriff 4,297,097 4,297,097 4,244,495 (52,602)
Commissioner of Revenue 160,305 160,305 162,946 2,641
Treasurer 175,083 175,083 176,412 1,329
Registrar/electoral board 47,000 47,000 47,586 586
Clerk of the Circuit Court 428,133 428,133 436,060 7,927
Circuit Court 65,500 65,500 72,046 6,546
Total Shared Expenses 5,759,638$ 5,759,638$ 5,706,674$ (52,964)$
Other categorical aid:
Victim witness grant 27,461$ 27,461$ 26,418$ (1,043)$
VJCCA grant 41,765 41,765 41,765 -
Records preservation grant 9,500 11,129 11,129 -
E-911 grants 627,435 443,337 244,488 (198,849)
EMS grants 65,000 64,777 66,884 2,107
Fire program funds 206,300 212,822 210,022 (2,800)
Library grants 158,296 159,945 159,945 -
Litter control grants 24,240 24,240 12,701 (11,539)
Public assistance 2,012,872 2,012,872 1,364,422 (648,450)
Children's Services Act 5,365,470 5,365,470 3,868,719 (1,496,751)
School resource officer 151,140 151,140 - (151,140)
Total other categorical aid 8,689,479$ 8,514,958$ 6,006,493$ (2,508,465)$
Total categorical aid 14,449,117$ 14,274,596$ 11,713,167$ (2,561,429)$
Total revenue from the Commonwealth 20,930,391$ 20,755,870$ 18,045,930$ (2,709,940)$
Revenue from the federal government:
Noncategorical aid:
QCEB interest rebate -$ -$ 87,339$ 87,339$
Categorical aid:
Transportation enhancement grant 111,512$ 111,512$ 39,458$ (72,054)$
Emergency management preparedness 22,803 32,803 24,160 (8,643)
Law enforcement block grants 226,617 217,668 35,494 (182,174)
Crime victim assistance 82,383 82,383 79,254 (3,129)
Bureau of justice assistance 44,800 44,800 - (44,800)
Public assistance 2,602,123 2,602,123 2,649,769 47,646
Total categorical aid 3,090,238$ 3,091,289$ 2,828,135$ (263,154)$
Total revenue from the federal government 3,090,238$ 3,091,289$ 2,915,474$ (175,815)$
Total General Fund 73,265,477$ 73,686,544$ 71,925,443$ (1,761,101)$
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Packet Pg. 159 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 4 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
Special Revenue Funds:
Industrial Development Fund:
Revenue from local sources:
Miscellaneous revenue:
Donations -$ 14,697$ 22,615$ 7,918$
Recovered costs:
Industrial Development Authority -$ 35,497$ 35,497$ -$
Total revenue from local sources -$ 50,194$ 58,112$ 7,918$
Intergovernmental:
Revenue from the Commonwealth:
Categorical aid:
Tobacco indemnification funds 5,623,940$ 6,946,682$ 3,354,772$ (3,591,910)$
Governor's opportunity funds - 255,000 255,000 -
Total revenue from the Commonwealth 5,623,940$ 7,201,682$ 3,609,772$ (3,591,910)$
Total Industrial Development Fund 5,623,940$ 7,251,876$ 3,667,884$ (3,583,992)$
Special Revenue Funds:
Workforce Investment Act Fund:
Revenue from local sources:
Revenue from use of money and property:
Revenue from the use of property 250,000$ 250,000$ 437,847$ 187,847$
Total revenue from use of money and property 250,000$ 250,000$ 437,847$ 187,847$
Miscellaneous:
Other miscellaneous 1,000$ 2,625$ 3,979$ 1,354$
Total revenue from local sources 251,000$ 252,625$ 441,826$ 189,201$
Intergovernmental:
Revenue from the federal government:
Categorical aid:
WIA adult programs, youth activities, and dislocated workers 3,755,884$ 5,113,865$ 2,428,083$ (2,685,782)$
Total Workforce Investment Act Fund 4,006,884$ 5,366,490$ 2,869,909$ (2,496,581)$
Nonmajor Special Revenue Funds:
Forfeited Assets Fund:
Revenue from local sources:
Revenue from use of money and property:
Revenue from the use of money 300$ 300$ 450$ 150$
Total revenue from local sources 300$ 300$ 450$ 150$
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Packet Pg. 160 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 5 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
Nonmajor Special Revenue Funds: (Continued)
Forfeited Assets Fund: (Continued)
Intergovernmental:
Revenue from the Commonwealth:
Categorical aid:
Asset forfeiture funds 22,000$ 22,000$ 286$ (21,714)$
Revenue from the federal government:
Categorical aid:
Asset forfeiture funds 40,000$ 40,000$ 179,825$ 139,825$
Total Forfeited Assets Fund 62,300$ 62,300$ 180,561$ 118,261$
Total Primary Government 82,958,601$ 86,367,210$ 78,643,797$ (7,723,413)$
Discretely Presented Component Unit - School Board:
School Operating Fund:
Revenue from local sources:
Revenue from use of money and property:
Revenue from the use of money 2,000$ 2,000$ 10,637$ 8,637$
Revenue from the use of property 30,950 30,950 19,260 (11,690)
Total revenue from use of money and property 32,950$ 32,950$ 29,897$ (3,053)$
Charges for services:
School food 1,716,525$ 1,831,525$ 1,455,636$ (375,889)$
Tuition and payments from other divisions 106,630 106,630 151,516 44,886
Total charges for services 1,823,155$ 1,938,155$ 1,607,152$ (331,003)$
Miscellaneous:
Other miscellaneous 406,500$ 488,795$ 623,344$ 134,549$
Recovered costs:
Other recovered costs 532,950$ 532,950$ 733,758$ 200,808$
Total revenue from local sources 2,795,555$ 2,992,850$ 2,994,151$ 1,301$
Intergovernmental:
Revenues from local governments:
Contribution from County of Pittsylvania, Virginia 18,086,709$ 21,733,758$ 19,094,304$ (2,639,454)$
Revenue from the Commonwealth:
Categorical aid:
Share of state sales tax 10,483,893$ 10,483,893$ 10,128,995$ (354,898)$
Basic Aid 29,700,116 29,700,116 29,739,123 39,007
Remedial summer education 220,587 220,587 213,996 (6,591)
Regular foster care 45,132 45,132 13,882 (31,250)
Gifted and talented 320,201 320,201 321,161 960
Remedial education 1,178,341 1,178,341 1,181,873 3,532
Special education 3,842,417 3,842,417 3,853,934 11,517
Textbook payment 644,822 644,822 646,754 1,932
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Packet Pg. 161 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 1
Page 6 of 6
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Revenues - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Major and Minor Revenue Source
Discretely Presented Component Unit - School Board: (Continued)
School Operating Fund: (Continued)
Intergovernmental: (Continued)
Revenue from the Commonwealth: (Continued)
Categorical aid: (Continued)
Enrollment loss 280,943$ 280,943$ -$ (280,943)$
Alternative education 209,014 209,014 219,014 10,000
Algebra readiness 161,417 161,417 163,794 2,377
Mentor teacher program 4,757 4,757 4,540 (217)
Social security fringe benefits 1,889,188 1,889,188 1,894,851 5,663
Group life 128,081 128,081 128,464 383
Retirement fringe benefits 4,169,023 4,169,023 4,181,518 12,495
Governor's school 17,630 17,630 17,630 -
Early reading intervention 219,762 219,762 186,924 (32,838)
Homebound education 117,652 117,652 107,861 (9,791)
Vocation education 1,172,557 1,172,557 1,136,175 (36,382)
JROTC 225,493 277,999 268,550 (9,449)
Special education - foster children - - 15,495 15,495
At risk payments 1,271,093 1,302,991 1,448,848 145,857
Primary class size 1,445,549 1,445,549 1,413,303 (32,246)
Technology 544,000 544,000 545,653 1,653
At risk four-year olds 999,137 999,137 999,137 -
School Food 245,018 245,018 129,684 (115,334)
English as a second language 178,958 178,958 173,874 (5,084)
Other state funds 25,612 71,663 138,479 66,816
GED prep program 23,576 23,576 25,065 1,489
Lottery payments 1,758,971 1,876,103 2,339,017 462,914
Total categorical aid 61,522,940$ 61,770,527$ 61,637,594$ (132,933)$
Total revenue from the Commonwealth 61,522,940$ 61,770,527$ 61,637,594$ (132,933)$
Revenue from the federal government:
Categorical aid:
Title I 2,647,031$ 2,647,031$ 2,303,856$ (343,175)$
Special education 1,911,491 1,911,491 1,876,366 (35,125)
Special education, preschool 23,137 23,137 27,386 4,249
Vocational education 184,351 158,868 158,937 69
School food program 6,578,296 7,111,614 3,926,059 (3,185,555)
Adult education 131,074 131,074 84,356 (46,718)
Improving teacher quality 378,609 378,609 275,865 (102,744)
Rural and low income 174,648 174,648 163,261 (11,387)
Language acquisition 14,673 14,673 23,279 8,606
Other federal funds 215,523 215,523 98,473 (117,050)
Total categorical aid 12,258,833$ 12,766,668$ 8,937,838$ (3,828,830)$
Total revenue from the federal government 12,258,833$ 12,766,668$ 8,937,838$ (3,828,830)$
Total Discretely Presented Component Unit - School Board 94,664,037$ 99,263,803$ 92,663,887$ (6,599,916)$
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Packet Pg. 162 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 2
Page 1 of 4
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
General Fund:
General government administration:
Legislative:
Board of supervisors 228,986$ 231,094$ 210,987$ 20,107$
General and financial administration:
County administrator 604,102$ 557,119$ 542,623$ 14,496$
Legal services 213,459 264,500 262,352 2,148
Independent auditor 88,500 92,500 85,330 7,170
Human resources 107,550 112,635 102,392 10,243
Commissioner of revenue 689,486 696,709 652,526 44,183
Reassessment 256,500 71,556 10,540 61,016
Treasurer 746,198 751,740 669,124 82,616
Central accounting 467,838 475,935 473,524 2,411
Information technology 407,286 571,496 621,255 (49,759)
Total general and financial administration 3,580,919$ 3,594,190$ 3,419,666$ 174,524$
Board of elections:
Electoral board 256,027$ 259,802$ 248,219$ 11,583$
Total general government administration 4,065,932$ 4,085,086$ 3,878,872$ 206,214$
Judicial administration:
Courts:
Circuit court 146,940$ 154,816$ 143,413$ 11,403$
General district court 11,706 12,815 12,596 219
Special magistrates 4,500 4,500 3,978 522
Juvenile and domestic relations court 17,350 17,350 12,199 5,151
Clerk of the circuit court 701,799 753,523 730,071 23,452
Sheriff - courts 224,493 224,493 183,925 40,568
Law Library 23,000 23,000 10,559 12,441
Victim and witness assistance 109,844 109,844 105,671 4,173
Commissioner of accounts 1,850 1,850 1,738 112
Total courts 1,241,482$ 1,302,191$ 1,204,150$ 98,041$
Commonwealth's attorney:
Commonwealth's attorney 797,571$ 804,512$ 759,433$ 45,079$
Total judicial administration 2,039,053$ 2,106,703$ 1,963,583$ 143,120$
Public safety:
Law enforcement and traffic control:
Sheriff - law enforcement 6,664,417$ 7,058,492$ 7,174,330$ (115,838)$
Sheriff - grants 432,787 523,198 68,498 454,700
Sheriff - E911 system 596,720 434,890 184,832 250,058
Total law enforcement and traffic control 7,693,924$ 8,016,580$ 7,427,660$ 588,920$
Fire and rescue services:
Fire marshall -$ 2,000$ -$ 2,000$
Volunteer fire and rescue agencies 3,278,720 3,836,519 3,636,004 200,515
Total fire and rescue services 3,278,720$ 3,838,519$ 3,636,004$ 202,515$
County of Pittsylvania, Virginia
Schedule of Expenditures - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Function, Activity and Element
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5.a.a
Packet Pg. 163 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 2
Page 2 of 4
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Expenditures - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Function, Activity and Element
General Fund: (Continued)
Public safety: (Continued)
Correction and detention:
Sheriff - correction and detention 4,881,953$ 4,948,319$ 4,506,205$ 442,114$
Court services unit 426,808 428,277 435,911 (7,634)
Other correction and detention 27,600 27,600 25,150 2,450
Total correction and detention 5,336,361$ 5,404,196$ 4,967,266$ 436,930$
Other protection:
Animal control 560,274$ 490,891$ 462,925$ 27,966$
Pet Center - 449,388 384,487 64,901
Medical examiner 2,500 2,500 2,020 480
E911 System 1,159,164 1,077,806 1,054,865 22,941
Emergency management 22,803 22,803 21,465 1,338
Emergency Services 20,100 20,100 - 20,100
Total other protection 1,764,841$ 2,063,488$ 1,925,762$ 137,726$
Total public safety 18,073,846$ 19,322,783$ 17,956,692$ 1,366,091$
Public works:
Maintenance of general buildings and grounds:
Maintenance of general buildings and grounds 1,047,090$ 1,065,486$ 947,074$ 118,412$
Fleet management 209,500 212,035 138,419 73,616
Total maintenance of general buildings and grounds 1,256,590$ 1,277,521$ 1,085,493$ 192,028$
Total public works 1,256,590$ 1,277,521$ 1,085,493$ 192,028$
Health and welfare:
Health:
Local health department 517,570$ 517,570$ 517,570$ -$
Behavioral Health and Development Services:
Behavioral health and development services 357,612$ 357,612$ 357,612$ -$
Welfare:
Welfare administration 4,575,715$ 4,576,666$ 3,793,725$ 782,941$
Public assistance 994,824 994,824 833,106 161,718
Children's Services Act 7,280,624 6,901,761 5,716,185 1,185,576
Total welfare 12,851,163$ 12,473,251$ 10,343,016$ 2,130,235$
Total health and welfare 13,726,345$ 13,348,433$ 11,218,198$ 2,130,235$
Education:
Other instructional costs:
Contribution to local school board 18,086,709$ 21,733,758$ 19,094,304$ 2,639,454$
Contributions to community college 10,320 10,320 10,320 -
Total education 18,097,029$ 21,744,078$ 19,104,624$ 2,639,454$
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Packet Pg. 164 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 2
Page 3 of 4
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Expenditures - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Function, Activity and Element
General Fund: (Continued)
Parks, recreation, and cultural:
Parks and recreation:
Administration of parks and recreation 448,619$ 478,878$ 384,420$ 94,458$
State Forestry 33,600 34,375 34,375 -
Total parks and recreation 482,219$ 513,253$ 418,795$ 94,458$
Library:
Library administration 1,456,344$ 1,586,005$ 1,556,577$ 29,428$
Total parks, recreation, and cultural 1,938,563$ 2,099,258$ 1,975,372$ 123,886$
Community development:
Planning and community development:
Planning commission -$ 21,772$ 21,572$ 200$
Community & industry development 390,204 389,693 377,074 12,619
Community development 656,383 645,959 638,064 7,895
Economic development 861,801 745,918 548,478 197,440
Total planning and community development 1,908,388$ 1,803,342$ 1,585,188$ 218,154$
Environmental management:
Soil and water conservation district 120,339$ 116,505$ 100,676$ 15,829$
Other environmental management 24,240 48,584 16,291 32,293
Total environmental management 144,579$ 165,089$ 116,967$ 48,122$
Cooperative extension program:
Cooperative extension program 89,208$ 157,188$ 148,993$ 8,195$
Total community development 2,142,175$ 2,125,619$ 1,851,148$ 274,471$
Nondepartmental:
Other nondepartmental 471,919$ 204,913$ 11,121$ 193,792$
Capital projects:
E911 Towers 943,200$ 1,559,569$ 736,688$ 822,881$
Other capital projects 363,944 816,770 274,137 542,633
Total capital projects 1,307,144$ 2,376,339$ 1,010,825$ 1,365,514$
Debt service:
Principal retirement 7,154,905$ 7,155,126$ 8,128,744$ (973,618)$
Interest and other fiscal charges 2,636,756 2,636,838 2,995,640 (358,802)
Total debt service 9,791,661$ 9,791,964$ 11,124,384$ (1,332,420)$
Total General Fund 72,910,257$ 78,482,697$ 71,180,312$ 7,302,385$
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5.a.a
Packet Pg. 165 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Schedule 2
Page 4 of 4
Variance with
Final Budget -
Original Final Positive
Budget Budget Actual (Negative)
County of Pittsylvania, Virginia
Schedule of Expenditures - Budget and Actual
Governmental Funds
For the Year Ended June 30, 2019
Fund, Function, Activity and Element
Special Revenue Funds:
Industrial Development Fund:
Community development:
Planning and community development:
Industrial development 1,623,594$ 3,468,080$ 1,771,598$ 1,696,482$
Sova Vineyard Grant 739,500 750,730 - 750,730
Berry Hill Projects 5,423,825 5,024,185 4,387,080 637,105
Cane Creek shell building - 1,500,000 102,558 1,397,442
Hurt Klopman Mills water and sewer improvements 5,808 5,808 - 5,808
Total planning and community development 7,792,727$ 10,748,803$ 6,261,236$ 4,487,567$
Total Industrial Development Fund 7,792,727$ 10,748,803$ 6,261,236$ 4,487,567$
Workforce Investment Act Fund:
Health and welfare:
Welfare:
Workforce investment act 4,006,884$ 5,372,479$ 2,564,673$ 2,807,806$
Total Workforce Investment Act Fund 4,006,884$ 5,372,479$ 2,564,673$ 2,807,806$
Nonmajor Special Revenue Funds:
Forfeited Assets Fund:
Public safety:
Law enforcement and traffic control:
Sheriff 145,000$ 305,000$ 233,211$ 71,789$
Total Forfeited Asset Fund 145,000$ 305,000$ 233,211$ 71,789$
Total Primary Government 84,854,868$ 94,908,979$ 80,239,432$ 14,669,547$
Discretely Presented Component Unit - School Board
School Operating Fund:
Education:
Administration of schools:
Administration and health services 3,735,359$ 3,843,520$ 3,807,731$ 35,789$
Instruction costs:
Instructional costs 64,522,199$ 66,572,566$ 65,677,866$ 894,700$
Technology 2,891,029 3,152,632 2,693,969 458,663
Total instruction costs 67,413,228$ 69,725,198$ 68,371,835$ 1,353,363$
Operating costs:
Pupil transportation 6,676,716$ 6,699,420$ 6,134,718$ 564,702$
Operation and maintenance of school plant 7,607,801 9,510,964 8,541,539 969,425
Food service and non-instructional 9,230,933 9,484,701 5,566,023 3,918,678
Total operating costs 23,515,450$ 25,695,085$ 20,242,280$ 5,452,805$
Total Discretely Presented Component Unit - School Board 94,664,037$ 99,263,803$ 92,421,846$ 6,841,957$
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5.a.a
Packet Pg. 166 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Other Statistical Information
5.a.a
Packet Pg. 167 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Table 1GeneralParks, InterestFiscal Government Judicial Public Public Health and Recreation, Community on Long-Year Administration Administration Safety Works (2) Welfare Education (1) and Cultural Development Term Debt Total2018-19 3,231,084$ 1,884,640$ 18,360,059$ 5,306,662$ 13,146,418$ 21,053,924$ 2,010,342$ 7,912,185$ 3,013,133$ 75,918,447$ 2017-18 3,887,279 1,858,800 18,156,348 4,010,797 15,621,570 18,851,498 1,885,619 3,187,057 3,163,604 70,622,572 2016-17 3,481,098 1,728,160 16,607,010 3,681,562 15,056,995 16,754,289 2,279,169 2,639,500 3,723,137 65,950,920 2015-16 3,120,093 1,630,364 17,388,780 2,974,772 13,295,781 20,654,247 1,625,932 3,050,989 4,600,151 68,341,109 2014-15 2,761,239 1,570,134 15,971,461 4,208,049 11,762,632 20,144,745 1,653,432 4,328,560 4,156,131 66,556,383 2013-14 2,779,007 1,616,010 15,412,321 3,676,518 11,203,241 17,456,021 1,544,778 3,595,993 4,462,480 61,746,369 2012-13 3,151,761 1,577,467 14,150,804 1,367,550 11,742,309 17,610,398 1,519,663 4,541,281 5,044,241 60,705,474 2011-12 2,352,270 1,604,516 14,004,881 4,504,438 11,725,859 17,483,731 1,389,794 5,297,007 4,852,814 63,215,310 2010-11 2,317,903 1,521,622 13,492,424 5,199,400 15,013,208 16,068,919 1,212,790 6,009,715 5,052,047 65,888,028 2009-10 3,008,491 1,289,615 13,884,135 5,552,474 18,784,848 11,601,833 1,179,959 5,879,792 5,658,339 66,839,486 (1) Debt financed assets are transferred to the School Board upon defeasance of debt. This amounts includes assets (net of related depreciation) that were transferred to the School Board during the fiscal year.(2) In FY 2012, the County implemented a Solid Waste Fund and in FY 2017 the County closed same to the General Fund. In FY 2019, the County reimplemented the Solid Waste fund. All expenditures have been reported here in Public Works for comparability.County of Pittsylvania, VirginiaLast Ten Fiscal YearsGovernment-Wide Expenses by Function-152-
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Packet Pg. 168 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Table 2Grants andOperating CapitalContributionsCharges Grants Grants General Other Unrestricted Not RestrictedFiscal for and and Property Local Investment to SpecificYear Services (1) Contributions Contributions Taxes Taxes Earnings Miscellaneous (2) Programs Total2018-19 5,744,056$ 20,829,443$ 179,825$ 40,737,447$ 7,728,921$ 819,879$ 616,335$ 6,420,102$ 83,076,008$ 2017-18 908,173 19,512,825 2,176 39,899,114 7,375,931 530,617 403,055 6,534,738 75,166,629 2016-17 887,208 18,054,322 34,726 36,635,453 7,255,197 534,540 2,597,060 6,657,163 72,655,669 2015-16 1,867,410 17,849,640 25,446 36,527,161 6,985,878 760,917 698,427 6,580,065 71,294,944 2014-15 2,587,105 16,442,410 884,983 34,348,146 6,929,692 729,073 273,313 6,647,166 68,841,888 2013-14 2,716,427 16,833,132 234,754 32,312,752 7,058,150 817,859 303,887 6,674,699 66,951,660 2012-13 2,952,151 16,862,088 - 31,959,232 6,759,321 640,925 449,990 6,781,594 66,405,301 2011-12 924,023 15,633,076 2,405,211 31,373,406 6,805,947 651,947 409,617 6,698,703 64,901,930 2010-11 861,632 16,037,575 3,564,213 28,781,337 6,696,327 646,849 673,095 6,760,306 64,021,334 2009-10 885,248 21,413,814 3,006,599 27,907,392 6,414,085 1,174,002 758,424 6,748,918 68,308,482 (1) The Solid Waste fund created in fiscal year 2012 started billings in fiscal year 2013. These billings subsequently ended in fiscal year 2016 but were implemented again in fiscal year 2019.(2) During fiscal year 2017 a local nonprofit donated a community center valued at $2,306,900.County of Pittsylvania, VirginiaGovernment-Wide RevenuesLast Ten Fiscal YearsPROGRAM REVENUESGENERAL REVENUES-153-
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Table 3GeneralParks,Fiscal Government Judicial Public Public Health and Recreation, Community Capital Non- DebtYear Administration Administration Safety Works (3) Welfare Education (2) and Cultural Development Projects departmental Service Total2018-19 3,878,872$ 1,963,583$ 18,189,903$ 1,085,493$ 13,782,871$ 92,432,166$ 1,975,372$ 8,112,384$ 1,010,825$ 11,121$ 11,124,384$ 153,566,974$ 2017-18 (4) 4,277,067 1,872,516 17,759,838 3,140,876 15,624,190 89,879,252 1,820,633 3,207,041 2,893,567 17,203 11,306,433 151,798,616 2016-17 3,885,062 1,742,237 15,612,859 4,060,175 15,405,524 86,583,587 1,853,468 2,658,745 5,917,781 - 13,168,887 150,888,325 2015-16 (4) 3,274,249 1,629,683 16,035,366 1,467,351 13,227,647 84,200,723 1,606,150 2,437,884 4,346,659 - 17,299,326 145,525,038 2014-15 3,165,000 1,565,244 15,181,758 1,380,874 11,818,253 86,172,273 1,635,900 4,456,982 939,715 - 11,896,121 138,212,120 2013-14 3,294,816 1,575,143 15,788,738 1,113,579 11,225,531 84,740,262 1,497,279 3,842,302 4,840,641 - 11,946,638 139,864,929 2012-13 (4) 3,495,374 1,566,578 14,763,371 1,300,429 11,927,840 84,680,673 1,509,918 7,586,932 5,794,131 - 9,450,033 142,075,279 2011-12 2,768,169 1,566,584 14,222,860 1,215,984 11,862,939 85,983,611 1,384,918 5,540,095 3,705,766 - 9,948,658 138,199,584 2010-11 2,784,289 1,494,085 13,806,655 3,244,763 12,690,342 82,087,870 1,178,396 6,502,580 398,872 - 9,436,325 133,624,177 2009-10 (4) 3,149,941 1,536,157 14,173,636 3,634,763 18,836,521 82,202,930 1,116,757 6,385,274 - 8,342 10,609,182 141,653,503 (1) Includes General and Special Revenue funds of the Primary Government and its Discretely Presented Component Unit-School Board. Excludes Capital Projects fund.(2) Excludes contribution from Primary Government to Discretely Presented Component Unit.(3) In FY 2012, the County implemented a Solid Waste Fund which decreased the Public Works expenditures. In FY 2017, the Solid Waste Fund was merged back into the General Fund. In FY 2019, the Solid Waste Fund was reinstated.(4) Refunding debt excluded from Debt Service.County of Pittsylvania, VirginiaGeneral Governmental Expenditures by Function (1)Last Ten Fiscal Years-154-
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Table 4RevenuePermits,from theGeneral Other Privilege Fees, Fines Use of ChargesFiscal Property Local Regulatory and Money and for Recovered Inter-Year Taxes Taxes Licenses Forfeitures Property Services (3) Miscellaneous Costs governmental (2) Total2018-19 40,423,061$ 7,728,921$ 138,128$ 190,695$ 836,921$ 1,918,034$ 1,171,969$ 2,050,849$ 97,754,802$ 152,213,380$ 2017-18 38,092,864 7,375,931 157,376 205,021 567,380 2,319,128 1,991,736 1,917,836 95,725,521 148,352,793 2016-17 36,433,274 7,255,197 157,900 200,936 555,870 2,505,571 1,959,508 1,996,942 92,762,102 143,827,300 2015-16 35,693,771 6,985,878 157,941 207,431 809,547 2,243,356 1,991,633 1,566,935 90,268,791 139,925,283 2014-15 34,603,292 6,929,692 153,455 174,184 771,975 2,079,998 1,530,400 1,959,553 89,836,994 138,039,543 2013-14 32,986,528 7,058,150 175,564 224,057 858,598 2,076,001 1,385,352 4,932,637 87,106,346 136,803,233 2012-13 31,732,883 6,759,321 188,607 197,581 638,443 2,509,379 1,250,731 7,523,537 87,096,527 137,897,009 2011-12 29,536,089 6,805,947 162,287 173,265 670,207 2,393,242 1,270,149 4,672,806 88,822,247 134,506,239 2010-11 29,100,604 6,696,327 178,650 170,237 688,107 2,877,131 1,173,698 5,320,326 88,957,513 135,162,593 2009-10 29,247,029 6,414,085 179,480 166,937 740,864 2,801,689 981,228 1,779,199 100,511,627 142,822,138 (1) Includes General and Special Revenue funds of the Primary Government and its Discretely Presented Component Unit-School Board. Excludes Capital Projects fund.(2) Excludes contribution from Primary Government to Discretely Presented Component Unit.(3) The Solid Waste fund created in fiscal year 2012 started billings in fiscal year 2013. These billings subsequently ended in fiscal year 2016 but were implemented again in fiscal year 2019.County of Pittsylvania, VirginiaGeneral Governmental Revenues by Source (1)Last Ten Fiscal Years-155-
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Table 5Percent of Percent ofTotal Current Percent Delinquent Total Total Tax Outstanding DelinquentFiscal Tax Tax of Levy Tax Tax Collections Delinquent Taxes toYear Levy (1,2) Collections (1) Collected Collections (1) Collections (2) to Tax Levy Taxes (1) Tax Levy2018-19 44,387,221$ 40,913,333$ 92.17% 2,821,517$ 43,734,850$ 98.53% 10,187,974$ 22.95%2017-18 43,537,449 40,436,259 92.88% 1,030,852 41,467,111 95.24% 6,333,913 14.55%2016-17 39,605,816 38,409,842 96.98% 1,343,284 39,753,126 100.37% 4,664,208 11.78%2015-16 39,880,759 38,231,862 95.87% 1,601,186 39,833,048 99.88% 4,842,100 12.14%2014-15 38,263,674 35,807,738 93.58% 2,291,993 38,099,731 99.57% 5,987,436 15.65%2013-14 38,160,477 35,105,305 91.99% 1,417,570 36,522,875 95.71% 5,996,958 15.72%2012-13 35,706,993 34,265,018 95.96% 908,882 35,173,900 98.51% 4,969,523 13.92%2011-12 34,990,189 32,026,677 91.53% 1,158,500 33,185,177 94.84% 4,388,377 12.54%2010-11 32,592,883 31,183,881 95.68% 1,432,717 32,616,598 100.07% 4,024,379 12.35%2009-10 31,940,215 30,753,521 96.28% 2,000,871 32,754,392 102.55% 4,372,838 13.69%(1) Exclusive of penalties and interest.(2) Includes amount received under the Personal Property Tax Relief Act.County of Pittsylvania, VirginiaProperty Tax Levies and CollectionsLast Ten Fiscal Years-156-
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Packet Pg. 172 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Table 6MachineryFiscal Real Personal and Merchant's Mobile PublicYear Estate (1) Property Tools Capital (3) Homes Service (2) Total2018-19 4,260,148,100$ 142,182,223$ 42,933,670$ 11,605,436$ 42,125,545$ 458,174,427$ 4,957,169,401$ 2017-18 4,220,028,900 137,754,840 38,436,500 15,126,580 41,331,258 430,745,366 4,883,423,444 2016-17 3,936,640,945 134,812,310 32,929,860 13,133,790 45,246,180 426,950,518 4,589,713,603 2015-16 3,944,880,745 129,084,080 30,643,700 18,824,710 44,879,870 399,383,840 4,567,696,945 2014-15 3,923,602,695 123,687,595 33,048,510 11,472,330 44,465,390 374,927,366 4,511,203,886 2013-14 3,880,009,003 122,969,818 39,320,240 9,880,649 44,322,009 355,616,806 4,452,118,525 2012-13 3,765,453,474 119,660,633 39,087,600 8,899,321 47,871,206 338,873,822 4,319,846,056 2011-12 3,701,567,643 116,972,188 35,378,260 8,856,290 46,913,277 316,586,962 4,226,274,620 2010-11 3,703,464,286 112,839,901 34,298,350 8,580,130 47,038,600 326,907,505 4,233,128,772 2009-10 3,658,961,545 111,212,898 30,661,670 8,358,600 46,670,090 302,840,801 4,158,705,604 (1) Real estate is assessed at 100% of fair market value.(2) Assessed values are established by the State Corporation Commission-includes all property types.(3) In FY 2017, the County changed the tax assessment methodology for merchant's capital from 30% original cost to a tiered approach based on the total original cost. The tiers consist of 30%, 10% and 5% of original cost.County of Pittsylvania, VirginiaAssessed Value of Taxable PropertyLast Ten Fiscal Years-157-
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Table 7
Fiscal Real Personal Machinery Merchant's Mobile Generating
Year Estate Property & Tools Capital Homes Equipment (2)
2018-19 $ 0.62 $ 9.00 $ 4.50 $ 2.75 $ 0.62 $ 0.62
2017-18 0.59/0.62 8.75/9.00 4.50 2.75 0.59/0.62 0.59/0.62
2016-17 0.59 8.75 4.50 2.75 0.59 0.59
2015-16 0.59 8.75 4.50 2.75 0.59 0.59
2014-15 0.59 8.75 4.50 2.75 0.59 0.59
2013-14 0.56/0.59 8.75 4.50 2.75 0.56/0.59 0.56/0.59
2012-13 0.56 8.75 4.50 2.75 0.56 0.56
2011-12 0.52/0.56 8.75 4.50 2.75 0.52/0.56 0.52/0.56
2010-11 0.52 8.50 4.50 2.75 0.52 0.52
2009-10 0.56/0.52 8.50 4.50 2.75 0.56/0.52 0.56/0.52
(1) Per $100 of assessed value. Property taxes are assessed on January 1 of each year and therefore, the rates for amounts due
on December 5th, may be different from the rates for amounts due on June 5th.
(2) Included as part of Public Service Corporations in other schedules
County of Pittsylvania, Virginia
Property Tax Rates (1)
Last Ten Fiscal Years
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Table 8
Ratio of
Net Bonded Net
Assessed Gross Net Debt to Bonded
Fiscal Value (in Bonded Bonded Assessed Debt per
Year Population (1) thousands) (2) Debt (3) Debt Value Capita
2018-19 63,506 4,957,169$ 59,489,229$ 59,489,229$ 1.20% 937$
2017-18 63,506 4,883,423 65,594,489 65,594,489 1.34% 1,033
2016-17 63,506 4,589,714 69,495,208 69,495,208 1.51% 1,094
2015-16 63,506 4,567,697 76,753,162 76,753,162 1.68% 1,209
2014-15 63,506 4,511,204 89,007,609 89,007,609 1.97% 1,402
2013-14 63,506 4,452,119 95,451,194 95,451,194 2.14% 1,503
2012-13 63,506 4,319,846 101,616,973 101,616,973 2.35% 1,600
2011-12 63,506 4,226,275 107,562,022 107,562,022 2.55% 1,694
2010-11 63,506 4,233,129 110,332,166 110,332,166 2.61% 1,737
2009-10 61,745 4,158,706 114,021,227 114,021,227 2.74% 1,847
(1) Bureau of the Census.
(2) Real property assessed at 100% of fair market value.
(3) Includes all long-term general obligation bonded debt, bonded anticipation notes, and literary fund loans.
Excludes revenue bonds, landfill closure/post-closure care liability, capital leases, and compensated absences.
County of Pittsylvania, Virginia
Ratio of Net General Bonded Debt to
Last Ten Fiscal Years
Assessed Value and Net Bonded Debt Per Capita
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Table 9
Ratio of
Total Debt Service
Total General to General
Fiscal Debt Governmental Governmental
Year Service Expenditures Expenditures
2018-19 11,124,384$ 153,566,974$ 7.24%
2017-18 (2) 11,306,433 151,798,616 7.45%
2016-17 13,168,887 150,888,325 8.73%
2015-16 (2) 17,299,326 145,525,038 11.89%
2014-15 11,896,121 138,212,120 8.61%
2013-14 11,946,638 139,864,929 8.54%
2012-13 (2) 9,450,033 142,075,279 6.65%
2011-12 9,948,658 138,199,584 7.20%
2010-11 9,436,325 133,624,177 7.06%
2009-10 (2) 10,609,182 141,653,503 7.49%
(1) Includes all governmental funds of the Primary Government and Special
Revenue funds of the Discretely Presented Component Unit-School Board.
(2) Excludes refunding debt.
County of Pittsylvania, Virginia
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures (1)
Last Ten Fiscal Years
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Table 10
Percentage of Total
Taxpayer Type of Business 2019 Assessed Valuation Assessed Valuation
Virginia Electric & Power Electric Utility 137,958,442$ 3.07%
Transcontinental Gas Pipeline Gas Utility 83,799,087 1.86%
Appalachian Power Company Electric Utility 83,232,663 1.85%
IKEA Manufacturer 32,840,890 0.73%
Intertape Polymer Corp Manufacturer 31,617,780 0.70%
Colonial Pipeline Gas Utility 30,467,958 0.68%
Mecklenburg Electric Coop, Inc. Electric Utility 26,352,679 0.59%
Sartomer Manufacturer 12,611,950 0.28%
Owens Brockway Manufacturer 12,079,480 0.27%
DanChem Technologies Manufacturer 8,395,090 0.19%
Total 459,356,019$ 10.21%
All Others 4,039,638,932$ 89.79%
Total Assessed Valuation 4,498,994,951$ 100.00%
County of Pittsylvania, Virginia
Assessed Valuation of Top Ten Taxpayers
Fiscal Year 2019
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COMPLIANCE SECTION
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Packet Pg. 178 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Independent Auditors’ Report 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
To the Board of Supervisors
County of Pittsylvania, Virginia
Chatham, Virginia
We have audited, in accordance with the 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 the Specifications for Audits of Counties, Cities, and
Towns,issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements
of the governmental activities, the business-type activities,the discretely presented component unit-
School Board, each major fund, and the aggregate remaining fund information of the County of
Pittsylvania, Virginia, as of and for the year ended June 30, 2019, and the related notes to the financial
statements, which collectively comprise the County of Pittsylvania, Virginia’s basic financial statements,
and have issued our report thereon dated November 27, 2019.Our report includes a reference to other
auditors who audited the financial statements of Pittsylvania County Service Authority and Pittsylvania
County Industrial Development Authority, as described in our report on the County of Pittsylvania,
Virginia’s financial statements. This report does not include the results of the other auditors’ testing of
internal control over financial reporting or compliance and other matters that are reported on separately
by those auditors.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered County of Pittsylvania,
Virginia’s internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of County of
Pittsylvania,Virginia’s internal control. Accordingly, we do not express an opinion on the effectiveness of
County of Pittsylvania,Virginia’s internal control.
A deficiency in internal control exists when the design or 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. 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.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether County of Pittsylvania,Virginia’s financial
statements are free from 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Blacksburg, Virginia
November 27, 2019
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Independent Auditors’ Report on Compliance for Each Major Program and
on Internal Control over Compliance Required by the Uniform Guidance
To the Board of Supervisors
County of Pittsylvania, Virginia
Chatham, Virginia
Report on Compliance for Each Major Federal Program
We have audited County of Pittsylvania, Virginia’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material
effect on each of County of Pittsylvania, Virginia’s major federal programs for the year ended June 30,
2019. County of Pittsylvania, Virginia’s major federal programs are identified in the summary of
auditor’s results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of County of Pittsylvania, Virginia’s
major federal programs based on our audit of the types of compliance requirements referred to above.
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 the audit requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the
Uniform Guidance 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 County of Pittsylvania, Virginia’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 on compliance for each major
federal program. However, our audit does not provide a legal determination of County of Pittsylvania,
Virginia’s compliance.
Opinion on Each Major Federal Program
In our opinion, County of Pittsylvania, Virginia, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2019.
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Packet Pg. 181 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Report on Internal Control over Compliance
Management of County of Pittsylvania, Virginia, is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered County of Pittsylvania, Virginia’s
internal control over compliance with the types of requirements that could have a direct and material
effect on each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal program
and to test and report on internal control over compliance in accordance with the Uniform Guidance,
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 County of Pittsylvania,
Virginia’s internal control over compliance.
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 a 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.
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.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Blacksburg, Virginia
November 27, 2019
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Page 1 of 2
Pass-through
Federal Entity
Federal Grantor/State Pass - Through Grantor/CFDA Identifying Federal Subrecipient
Program or Cluster Title Number Number Expenditures Expenditures
Department of Health and Human Services:
Pass Through Payments:
Department of Social Services:
Promoting Safe and Stable Families 93.556 0950117, 0950118 16,527$
TANF Cluster:
Temporary Assistance for Needy Families 93.558 0400118, 0400119 485,934
Refugee and Entrant Assistance - State Administered Programs 93.566 0500118, 0500119 300
Low-Income Home Energy Assistance 93.568 0600418, 0600419 75,632
Child Care and Development Fund Cluster:
Child Care Mandatory and Matching Funds of the Child Care
and Development Fund 93.596 0760118, 0760119 83,334
Chafee Education and Training Vouchers Program (ETV)93.599 9160118 360
Stephanie Tubbs Jones Child Welfare Services Program 93.645 0900118, 0900119 550
Foster Care - Title IV-E 93.658 1100118, 1100119 359,002
Adoption Assistance 93.659 1120118, 1120119 91,806
Social Services Block Grant 93.667 1000118, 1000119 341,118
Chafee Foster Care Independence Program 93.674 9150118, 9150119 4,482
Children's Health Insurance Program 93.767 0540118, 0540119 16,200
Medicaid Cluster:
Medical Assistance Program 93.778 1200118, 1200119 651,456
Total Department of Health and Human Services 2,126,701$
Department of Agriculture:
Pass Through Payments:
Child Nutrition Cluster:
Virginia Department of Agriculture & Consumer Services:
Food Distribution-Schools (Note C)10.555 Not applicable 365,199$
Department of Education:
National School Lunch Program 10.555 APE40254 2,520,566 2,885,765$
Virginia Department of Agriculture & Consumer Services:
Summer Food Service Program for Children (Note C)10.559 Not applicable 1,270
Department of Education:
School Breakfast Program 10.553 APE40253 1,019,361
Total Child Nutrition Cluster 3,906,396$
Child Nutrition Discretionary Grants Limited Availability 10.579 DOE86804 19,541
State Administrative Expenses for Child Nutrition 10.560 DOE86507 122
Department of Social Services:
SNAP Cluster:
State Administrative Matching Grants for Supplemental Nutrition
Assistance Program 10.561 0010118, 0010119,554,827
0030118, 0030119,
0040118, 0040119,
0050118, 0050119
Total Department of Agriculture 4,480,886$
Department of Justice:
Direct payments:
Equitable Sharing Program 16.922 Not applicable 212,875$
Pass Through Payments:
Department of Criminal Justice Services:
Bulletproof Vest Partnership Program 16.607 Not available 6,491
Crime Victim Assistance 16.575 17VAGX0018 79,254
Total Department of Justice 298,620$
Department of Transportation:
Pass Through Payments:
Virginia Department of Transportation:
Highway Planning and Construction 20.205 EN03-187-105 39,458$
Department of Motor Vehicles:
Alcohol Open Container Requirements 20.607 154AL-2018-58282-8282 22,303
154AL-2019-59207-9207
Highway Safety Cluster:
State and Community Highway Safety 20.600 FOP-2018-58305-8305 6,700
FSC-2018-58301-8301
Total Department of Transportation 68,461$
County of Pittsylvania, Virginia
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2019
-166-
5.a.a
Packet Pg. 183 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Page 2 of 2County of Pittsylvania, Virginia
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2019
Pass-through
Federal Entity
Federal Grantor/State Pass - Through Grantor/CFDA Identifying Federal Subrecipient
Program or Cluster Title Number Number Expenditures Expenditures
Department of Labor:
Pass Through Payments:
Virginia Community College System:
Workforce Innovation and Opportunity Act Cluster:
WIOA Adult Program 17.258 534027 581,954$ 523,759$
WIOA Dislocated Worker Formula Grants 17.278 534027 373,358 336,022
WIOA Youth Activities 17.259 534027 1,109,649 998,684
Total Workforce Innovation and Opportunity Act Cluster 2,064,961$
H-1B Job Training Grants 17.268 534027 104,795
Workforce Innovation Fund 17.283 534027 226,568
Total Department of Labor 2,396,324$
Department of Education:
Pass Through Payments:
Department of Education:
Adult Education - Basic Grants to States 84.002 APE42801 84,356$
Title I Grants to Local Educational Agencies 84.010 APE42901 2,303,856
Special Education Cluster:
Special Education: Grants to States 84.027 APE43071 1,876,366$
Special Education: Preschool Grants 84.173 APE62521 27,386
Total Special Education Cluster 1,903,752
Career and Technical Education Basic Grants to States 84.048 APE61095 158,937
English Language Acquisition State Grants 84.365 APE60512 23,279
Supporting Effective Instruction State Grant 84.367 APE61480 275,865
Rural and Low-income Schools 84.358 APE43481 163,261
Student Support and Academic Enrichment Program 84.424 APE60019 98,473
Total Department of Education 5,011,779$
Department of Homeland Security:
Pass Through Payments:
Department of Emergency Management:
Emergency Management Performance Grants 97.042 EMP-2017-EP-00006 24,160$
Total Expenditures of Federal Awards 14,406,931$ 1,858,465$
Notes to the Expenditures of Federal Awards
Note A -- Basis of Presentation
Note B -- Summary of Significant Accounting Policies
Note C -- Food Donation
Note D -- Relationship to Financial Statements
Primary government:
General Fund 2,915,474$
Less: QCEB interest subsidy (87,339)
Workforce Investment Act Fund 2,428,083
Forfeited Assets Fund 179,825
Plus: Use of federal Forfeited Assets fund balance 33,050
Total primary government:5,469,093$
Component Unit School Board:
School Operating Fund 8,937,838$
Total federal expenditures per the Schedule of Expenditures of Federal Awards 14,406,931$
(2) Pass-through entity identifying numbers are presented where available.
Federal expenditures, revenues, and capital contributions are reported in the County's financial statements (Schedule 1) as follows:
(3) The County did not elect an indirect cost rate because they only request direct costs for reimbursement.
(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and disbursed. At June 30, 2019, The Pittsylvania County School Board had
food commodities totaling $0 in inventory.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the County of Pittsylvania, Virginia and its discretely presented
component unit - School Board under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform
Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net
position, or cash flows of the County.
(4) The County did not have any outstanding loans at year end as described in 2 CFR section 200.502(b).
(5) The County passed funds of $1,858,465 to subrecipients as noted above.
-167-
5.a.a
Packet Pg. 184 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Section I - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued:Unmodified
Internal control over financial reporting:
Material weakness(es) identified?No
Significant deficiency(ies) identified?None reported
Noncompliance material to financial statements noted?No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?No
Significant deficiency(ies) identified?None reported
Type of auditors' report issued on compliance for major programs:Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR section 200.516(a)?No
Identification of major programs:
CFDA #Name of Federal Program or Cluster
84.010 Title I - Grants to Local Education Agencies
93.658 Title IV-E Foster Care
93.667 Social Services Block Grant
Dollar threshold used to distinguish between Type A
and Type B programs $750,000
Auditee qualified as low-risk auditee?Yes
Section II - Financial Statement Findings
There are no financial statement findings to report.
Section III - Federal Award Findings and Questioned Costs
There are no federal award findings or questioned costs.
Section IV - Status of Prior Audit Findings and Questioned Costs
There were no prior year audit findings.
For the Year Ended June 30, 2019
Schedule of Findings and Questioned Costs
County of Pittsylvania, Virginia
-168-
5.a.a
Packet Pg. 185 Attachment: Pittsylvania County FINAL Audit 2019 with Cover (1829 : 2019 Financial Statement Report Presentation (Robinson, Farmer, Cox &
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: VDOT Update (Presenter: Jay Craddock); (20 minutes)
Staff Contact(s): Gregory L. Sides
Agenda Date: December 17, 2019 Item Number: 5.b
Attachment(s): Pittsylvania Table of Contents
Pittsylvania 11x17 SHV
Reviewed By:
Jay Craddock, with VDOT, will provide the Board an update on new bridge weight restrictions
throughout the County.
5.b
Packet Pg. 186
Federal Id CountyVA Structure Number Route NumberFacility Carried Featured Intersection Traffic Count (ADT)Year of ADT% TrucksCurrent Posting (Tons)SHV Posting (Tons)13527 71 6006 605 Toshes Rd Potter Creek 80 2012 0 Not Posted 2713528 71 6007 605 Toshes Rd Frying Pan Creek 170 2015 0 26 2213559 71 6491 635 Armstrong Rd Jonnikin Creek 150 2015 0 26 2013581 71 6034 649 Sheva Rd Trib. Banister River 290 2015 0 21 1913608 71 6504 670 Deer View Rd N. Fork Stinking River 370 2017 2 Not Posted 2713626 71 6100 686 Markham Rd Shokoe Creek 140 2015 0 20 1913659 71 6127 719 West Witt Rd Fall Creek 1700 2017 2 21 1913691 71 6031 751 Grassland Rd Jonnikin Creek 20 2017 24 23 1913692 71 6159 756 Paisley Rd Old Womans Creek 400 2015 0 20 1913700 71 6165 761 Straigstone Creek Rd Trib. Straightstone Creek 310 2017 5 20 1913701 71 6905 761 Straightstone Rd S. Channel Staunton River 480 2017 5 Not Posted 27 & 4013707 71 6273 783 Tomahawk Mill Rd Crooked Run Creek 50 2012 0 27 & 37 2213720 71 6520 802 Hodnetts Mill Rd Cherrystone Creek 270 2015 0 26 2313724 71 6010 808 Tate's Mill Rd Stinking River 50 2012 0 22 & 34 1913727 71 6184 813 Glenview Drive Banister River 120 2015 0 25 1913732 71 6522 817 Mountain Rd Turkeycock Creedk 70 2015 0 Not Posted 2713748 71 6524 834 Hopewell Rd White Oak Creek 490 2015 0 Not Posted 2613757 71 6202 845 Hinesville Rd Sandy River 120 2012 0 26 2113766 71 6212 856 Cobbs Knob Rd Pumkin Creek 460 2015 0 22 1925802 71 6499 614 Sandy Creek Rd Glady Fork 370 2012 0 22 195.b.aPacket Pg. 187Attachment: Pittsylvania Table of Contents (1828 : VDOT Update (Presenter: Jay Craddock); (20 minutes))
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Esri, Garmin, GEBCO, NOAA NGDC, and other contributors
¯
Map Prepared by the VDOT Lynchburg District Structure & Bridge Department September, 2019.
Pittsylvania County SHV and Postings
0 2.5 5 7.5 101.25 Miles
Legend
GF New Posting
#*Change Existing Posting
!?No Change in Posting
5.b.b
Packet Pg. 188 Attachment: Pittsylvania 11x17 SHV (1828 : VDOT Update (Presenter: Jay Craddock); (20 minutes))
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Silver Creek No-Through Trucks Discussion (Supervisor Scearce); (15
minutes)
Staff Contact(s): Supervisor Scearce
Agenda Date: December 17, 2019 Item Number: 6.a
Attachment(s):
Reviewed By:
The Honorable Ronald S. Scearce, Supervisor, Westover District, will facilitate discussion
regarding potentially limiting through trucks on Silver Creek Road.
6.a
Packet Pg. 189
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Sheriff Off-Duty Management Update (Staff Contact: Kimberly G. Van
Der Hyde); (20 minutes)
Staff Contact(s): Kimberly G. Van Der Hyde
Agenda Date: December 17, 2019 Item Number: 6.b
Attachment(s): Copy of Extra Duty - Schools Pitt Co. Departments
Reviewed By:
Kimberly G. Van Der Hyde, Finance Director, will provide the Board a Sheriff Off-Duty
Management update.
6.b
Packet Pg. 190
Total Received 130,136.90 125,714.18 101,351.47 163,276.69
Schools/County Departments FY17 FY18 FY19 FY20
Chatham High 17,012.50$ 18,020.00$ 16,837.50$ 2,662.50$
Dan River Middle -$ -$ 150.00$ -$
Dan River High 14,375.00$ 15,365.00$ 15,150.00$ 1,940.00$
Gretna High 12,267.50$ 11,700.00$ 12,982.50$ 500.00$
Tunstall High 14,887.50$ 14,135.00$ 15,671.25$ 1,050.00$
Pittsylvania Co. Parks & Rec.2,312.50$ 7,987.50$ 6,200.00$ -$
Total Paid by Schools/County 60,855.00$ 67,207.50$ 66,991.25$ 6,152.50$
% of County/Schools to total 47%53%66%4%
Outside County Organizations 14,120.00 12,921.50 8,805.00 2,600.00
% of Outside to total 11%10%9%2%
Federal/State Agencies 55,161.90 36,780.18 25,555.22 19,423.44
% of Federal/State Agencies 42%29%25%12%
Mount Valley Pipeline - - - 135,100.75
% of Mount Valley Pipeline 0%0%0%83%
Amounts based on 8.5% Fee
Schools/County Departments
FICA Costs 4,655.41$ 5,141.37$ 5,124.83$ 470.67$
ODM Fee at 10.5%6,389.78$ 7,056.79$ 7,034.08$ 646.01$
Additional Cost (2.85%)1,734.37$ 1,915.41$ 1,909.25$ 175.35$ 5,734.38$
Outside County Organizations
Savings on not paying FICA Costs 1,080.18$ 988.49$ 673.58$ 198.90$ 2,941.16$
Use of Car 660.00$ 720.00$ 520.00$ 300.00$ 2,200.00$
Use of Car-Mtn Valley Pipeline -$ -$ -$ 1,240.00$ 1,240.00$
Total Savings per Year 1,740.18$ 1,708.49$ 1,193.58$ 1,738.90$ 6,381.16$
Net Savings 646.78$
Sheriff Extra Duty
Costs Using Off-Duty Management
6.b.a
Packet Pg. 191 Attachment: Copy of Extra Duty - Schools Pitt Co. Departments (1847 : Sheriff Off-Duty Management Update (Staff Contact: Kimberly G. Van
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Broadband Survey Update (Staff Contact: R. Scott Budd); (15 minutes)
Staff Contact(s): R. Scott Budd
Agenda Date: December 17, 2019 Item Number: 6.c
Attachment(s):
Reviewed By:
R. Scott Budd, Director of Information Technology, will provide the Board with a Broadband
Survey update.
6.c
Packet Pg. 192
Board of Supervisors
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Committee Reports (Legislative Committee); (Staff Contact: J. Vaden
Hunt, Esq.); (5 minutes)
Staff Contact(s): J. Vaden Hunt, Esq.
Agenda Date: December 17, 2019 Item Number: 6.d
Attachment(s):
LEGISLATIVE COMMITTEE AFTER
Animal Code Revisions 2019
Legislative Priority List 2020
Reviewed By:
J. Vaden Hunt, Esq., County Attorney, will review recommendations from the December 4,
2019, Legislative Committee Meeting. For the Board’s reference and review, please see attached
related materials.
6.d
Packet Pg. 193
LEGISLATIVE COMMITTEE AFTER-ACTION REPORT
Below is an After-Action Report detailing what occurred at the Board’s December 4, 2019,
Legislative Committee Meeting:
(A) Discussion of Potential Revisions to PCC § Chapter 2 (Animals and Fowl):
The LC Members present unanimously recommended to the full BOS the attached
revisions to PCC Chapter 2 (Animals and Fowls). Per Mr. McLaughlin, the Code changes are
minor and primarily designed to bring the County’s Ordinance into compliance with recent related
changes to the Code of Virginia.
(B) Discussion of Potential Revisions to Solar Ordinance/Regulations:
The LC Members present took no action on the presented potential County Solar Ordinance
revisions stating that they support the current County’s Solar Ordinance.
(C) Discussion of 2020 Legislative Priorities:
The LC Members present unanimously recommended the attached 2020 Legislative
Priorities to the full BOS.
6.d.a
Packet Pg. 194 Attachment: LEGISLATIVE COMMITTEE AFTER (1834 : Committee Reports (Legislative Committee); (Staff Contact: J. Vaden Hunt, Esq.); (5
Page 1 of 17
PITTSYLVANIA COUNTY CODE
CHAPTER 2
Article II.
DOGS
SEC. 2-4. DEFINITIONS GENERALLY.
For the purpose of this article, the following words and phrases shall have the meanings
respectively ascribed to them by this section.
(a) Animal Control Officer. Any Animal Control Officer or deputy Animal Control Officer
appointed pursuant to Section 2-5.
(b) Enclosure. A structure used to house or restrict animals from running at large.
(c) Livestock. Cattle, horses, sheep, goats, swine and enclosed domesticated rabbits or hares.
(d) County Administrator. The duly appointed County Administrator, his deputy, or other person
authorized to perform the duties imposed by this ordinance. (B.S.M. 5-2-88)
(e) Owner. Any person having a right of property in any dog, subject to the provisions of this
article, and any person who keeps or harbors such dog, or has the dog in his care, or who acts as
its custodian, and any person who permits a dog to remain on or about any premises occupied by
him.
(f) Poultry. All domestic fowl, and game birds raised in captivity.
(g) Pound. A facility operated by the County for the prevention of cruelty to animals or for the
purpose of impounding or harboring seized, stray, homeless, abandoned, or unwanted animals.
(h) Boarding Kennel. A place or establishment other than a pound or shelter where animals not
owned by the proprietor are fed, sheltered and watered for a fee, but shall not include training or
show kennels.
(i) Person. Any individual, partnership, firm, joint-stock company, corporation, association, trust,
estate, or other legal entity.
(j) Other Officer. All other persons employed or elected by the people of Virginia, or by any
municipality, county, or incorporated town therefore, whose duty is to preserve the peace, to make
arrests, or to enforce the law.
(k) Treasurer. The County Treasurer and his assistants or other officer designated by law to collect
taxes in the County.
(l) To Run at Large. A dog shall be deemed “to run at large” while roaming, running or self-hunting
off the property of its owner or custodian and not under its owner’s or custodian’s immediate
control, including chasing motor vehicles on a highway. (B.S.M. 5-2-88)
6.d.b
Packet Pg. 195 Attachment: Animal Code Revisions 2019 (1834 : Committee Reports (Legislative Committee); (Staff Contact: J. Vaden Hunt, Esq.); (5 minutes))
Page 2 of 17
(m)Vaccinate, Vaccinated, or Vaccination. The immunization of a dog against rabies, whether by
inoculation, vaccination, or any other method of treatment approved by the County Health Officer.
(n) Veterinarian. Any licensed veterinarian authorized to practice veterinary medicine in the State.
(o) Guide Dog, Lead Dog or Hearing Dog. Any dog that is trained and serves as a guide dog for a
blind person or that is trained and serves as a guide dog for a blind person or that is trained and
serves as a lead dog or guide dog for a deaf person or a hearing-impaired person. A hearing dog
means a dog trained to alert its owner by touch to sounds of danger and sounds to which the owner
should respond.
SEC. 2-5. POSITIONS OF ANIMAL CONTROL OFFICER CREATED.
There is hereby created the position of Animal Control Officer, who shall have the power to
enforce, Chapter 64, Title 3.2 Code of Virginia of 1950, as amended, all laws for the protection of
domestic animals, the provisions of this ordinance and the Comprehensive Animal Laws of the
Commonwealth of Virginia. There is also created the position of Deputy Animal Control Officer
who shall assist the Animal Control Officer in dog inspection activities and in the enforcement of
dog laws, animal control and protection laws of Virginia. When in uniform or upon displaying a
badge or other credentials of office, Animal Control Officers and Deputy Animal Control Officers
shall have the power to issue a summons to any person found in the act of violating any such law
or any ordinance enacted pursuant to such law of the County for which the Animal Control Officer
or Deputy Animal Control Officer is appointed.
Animal Control Officers shall have knowledge of the comprehensive laws of Virginia governing
animals, and basic animal care, and shall complete training as required by the Commonwealth as
set forth in Section 3.2-6556 of the Code of Virginia. (B.S.M. 5-2-88)
Upon taking into custody any dog, the Animal Control Officer or the Deputy Animal Control
Officer shall fill out and complete in detail the Pittsylvania County Animal Custody Record, as
then in current use, together with such signatures thereon as may be necessary. (B.S.M. 5-2-88)
For authority of this section, refer to Section 3.2-6555, Code of Virginia, 1950, as amended.
Adopted by the Board of Supervisors, 3/7/05.
SEC. 2-6. AMOUNT OF LICENSE TAX.
It shall be unlawful for any person to own a dog four (4) months old or older in this county unless
such a dog is licensed, as required by the provisions of this ordinance. Dog licenses shall run by
the calendar year, namely, from January 1st, to December 31st, inclusive, and the license tax shall
be payable at the Office of the Treasurer and shall be:
A. Male. For a male dog; tenfive ($105.00) dollars perfor dogs; and five ($5.00) dollars for
neutered dogs per dog.
B. Female. For a female dog; tenfive ($105.00) dollars perfor a female dog, and five ($5.00)
dollars for an unsexed (successfully spayed) female.
6.d.b
Packet Pg. 196 Attachment: Animal Code Revisions 2019 (1834 : Committee Reports (Legislative Committee); (Staff Contact: J. Vaden Hunt, Esq.); (5 minutes))
Page 3 of 17
C. Kennel.
(1). For a kennel of 1-20 dogs, forty ($40.00) dollars, regardless of sex.
(2). For a kennel of 21 or more dogs, fifty ($50.00) dollars, regardless of sex.
D. No license tax shall be levied against the owners of any guide dog, lead dog, or hearing
dog.
For authority of this section, refer to Section 3.2-6524, Code of Virginia, 1950, as amended.
Adopted by the Board of Supervisors, 3/7/05. (B.S.M. 4/19/05) Amended 12/18/07.
SEC. 2-7. WHEN LICENSE TAX PAYABLE.
(a) On January 1st , and not later than January 31st, of each year the owner of any dog four (4)
months old or older shall pay a license tax as prescribed in Section 2-6.
(b) If a dog shall become four months of age or come into possession of any person between
January 1st , and November 1st , of any year the license tax for the current calendar year shall be
paid forthwith by the owner.
(c) If a dog shall become four months of age or come into the possession of any person between
October 31st, and December 31st, of any year the license tax for the succeeding calendar year shall
be paid forthwith by the owner and this license shall protect the dog from the date of purchase.
SEC. 2-8. PAYMENT OF LICENSE TAX SUBSEQUENT TO SUMMONS.
Payment of the license tax subsequent to a summons to appear before a court for failure to pay the
license tax within the time required should not operate to relieve such owner from the penalties
provided.
SEC. 2-9. EFFECT OF DOG NOT WEARING COLLAR AS EVIDENCE.
Any dog not wearing a collar bearing a license tag of the proper calendar year shall prima facie be
deemed to be unlicensed and in any proceedings under this ordinance the burden of proof of the
fact that the dog has been licensed or is otherwise not required to bear a tag at that time, shall be
on the owner of the dog.
SEC. 2-10. HOW TO OBTAIN LICENSE.
Any person may obtain a dog license by making oral or written application to the Treasurer of the
County, accompanied by the amount of the license tax and certificate of vaccination as required
by this article. The Treasurer of other Officer charged with the duty of issuing dog licenses shall
only have authority to license dogs of resident owners or custodians who reside within the
boundary limits of the county and may require information to this effect from the applicant. Upon
receipt of proper application and certificate of vaccination as required by this article, the Treasurer
or other Officer charged with the duty of issuing dog licenses shall issue a license receipt for the
amount on which he shall record the name and address of the owner or custodian, the date of
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payment, the year for which issued, the serial number of the tag, whether male, unsexed female,
female or kennel, and deliver the metal license tag or plate provided herein. The information thus
received, shall be retained by the Treasurer and open to the public for inspection during the period
for which such license is valid. The Treasurer may establish substations in convenient locations in
the county and appoint agents for the collection of the license tax and issuance of such licenses.
SEC. 2-11. WHAT DOG LICENSE SHALL CONSIST OF.
A dog license shall consist of a license receipt and a metal tag. The tag shall be stamped or
otherwise permanently marked to show the name Pittsylvania County, the sex of the dog, the
calendar year for which issued and bear a serial number.
SEC. 2-12. DUPLICATE LICENSE TAGS.
If the dog license shall become lost, destroyed, or stolen, the owner of custodian shall at once apply
to the Treasurer or his Agent who issued the original license for a duplicate license tag, presenting
the original license receipt. Upon affidavit of the owner or custodian before the Treasurer or his
Agent that the original license tag has been lost, destroyed, or stolen, he shall issue a duplicate
license tag which the owner or custodian shall immediately affix to the collar of the dog. The
Treasurer or his Agent shall endorse the number of the duplicate and the date issued on the face of
the original license receipt. The fee for a duplicate tag shall be two ($2.00) dollars. (B.S.M.
4/19/05)
SEC. 2-13. DISPLAYING RECEIPTS: DOGS TO WEAR TAGS.
Dog license receipts shall be carefully preserved by the licensee and exhibited promptly on request
for inspection any Animal Control Officer or other officer. Dog license tags shall be securely
fastened to a substantial collar by the owner or custodian and worn by such dog. It shall be unlawful
for the owner to permit any license dog four months old or older to run or roam at large at any time
without a license tag. The owner of the dog may remove the collar and license tag required by this
section (i) when the dog engaged in lawful hunting, (ii) when the dog is competing in a dog show,
(iii) when the dog has a skin condition which would be exacerbated by the wearing of a collar, (iv)
when the dog is confined, or when the dog is under immediate control of its owner.
SEC. 2-14. DOGS DEEMED PERSONAL PROPERTY: RIGHTS RELATING THERETO.
All dogs shall be deemed personal property and may be the subject of larceny and malicious or
unlawful trespass. Owners may maintain any action for the killing of any such dogs, or injury
thereto, or unlawful detention or use thereof as in the case of other personal property. The owner
of any such dog which is injured or killed contrary to the provisions of this chapter by any person
shall be entitled to recover the value thereof or the damage done thereto in an appropriate action
at law from such person.
Any Animal Control Officer or other officer finding a stolen dog, or a dog held or detained contrary
to law. Shall have authority to seize and hold such dog pending action before the General District
Court or other court. If no such action is instituted within seven days, the Animal Control Officer
or other officer shall deliver the dog to its owner. The presence of a dog on the premises of a person
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other than its legal owner shall raise no presumption of theft against the owner and the Animal
Control Officer may take such dog in charge and notify its legal owner to remove him. The legal
owner of the dog shall pay a charge as specified by the Board of Supervisors for the keep of such
dog while in the possession of the Animal Control Officer.
SEC. 2-15. DOGS KILLING, INJURING, OR CHASING LIVESTOCK OR POULTRY.
It shall be the duty of any Animal Control Officer or other officer who may find a dog in the act
of killing or injuring livestock or poultry to kill such dog forthwith whether such dog bears a tag
or not. Any person finding a dog committing any of the depredations mentioned in this section
shall have the right to kill such dog on sight, as shall any owner of livestock or his agent finding a
dog chasing livestock on land utilized by the livestock when the circumstances show that such
chasing is harmful to the livestock. Any court shall have the power to order the Animal Control
Officer or other officer to kill any dog known to be a confirmed livestock or poultry killer, and any
dog killing poultry for the third time shall be considered a confirmed poultry killer. Any Animal
Control Officer who has reason to believe that any dog is killing livestock or poultry shall be
empowered to seize such dog solely for the purpose of examining such dog in order to determine
whether it committed any of the depredations mentioned herewith. Any Animal Control Officer or
other person who has reason to believe that any dog is killing livestock, or committing any of the
depredations mentioned in this section, shall apply to a magistrate of the county, wherein such dog
may be, who shall issue a warrant requiring the owner or custodian, if known, to appear before a
general district court at a time and place named therein, at which time evidence shall be heard. If
it shall appear that the dog is a livestock killer, or has committed any of the depredations mentioned
in this section, the district court shall order that the dog be killed immediately, by the Animal
Control Officer or other officer designated by the court.
A. It shall be the duty of any animal control officer or other officer who may find a dog in the act
of killing or injuring livestock or poultry to seize or kill such dog forthwith whether such dog bears
a tag or not. Any person finding a dog committing any of the depredations mentioned in this section
shall have the right to kill such dog on sight as shall any owner of livestock or his agent finding a
dog chasing livestock on land utilized by the livestock when the circumstances show that such
chasing is harmful to the livestock. Any court shall have the power to order the animal control
officer or other officer to kill any dog known to be a confirmed livestock or poultry killer, and any
dog killing poultry for the third time shall be considered a confirmed poultry killer. The court,
through its contempt powers, may compel the owner, custodian, or harborer of the dog to produce
the dog.
B. Any animal control officer who has reason to believe that any dog is killing livestock or poultry
shall be empowered to seize such dog solely for the purpose of examining such dog in order to
determine whether it committed any of the depredations mentioned herein. Any animal control
officer or other person who has reason to believe that any dog is killing livestock, or committing
any of the depredations mentioned in this section, shall apply to a magistrate serving the locality
wherein the dog may be, who shall issue a warrant requiring the owner or custodian, if known, to
appear before a general district court at a time and place named therein, at which time evidence
shall be heard. If it shall appear that the dog is a livestock killer, or has committed any of the
depredations mentioned in this section, the district court shall order that the dog be (i) killed or
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euthanized immediately by the animal control officer or other officer designated by the court or
(ii) removed to another state that does not border on the Commonwealth and prohibited from
returning to the Commonwealth. Any dog ordered removed from the Commonwealth that is later
found in the Commonwealth shall be ordered by a court to be killed or euthanized immediately.
C. Notwithstanding the provisions of subsection B, if it is determined that the dog has killed or
injured only poultry, the district court may, instead of ordering killing, euthanasia, or removal to
another state pursuant to this section, order either (a) that the dog be transferred to another owner
whom the court deems appropriate and permanently fitted with an identifying microchip registered
to that owner or (b) that the dog be fitted with an identifying microchip registered to the owner
and confined indoors or in a securely enclosed and locked structure of sufficient height and design
to prevent the dog's escape; direct contact with the dog by minors, adults, or other animals; or entry
by minors, adults, or other animals. The structure shall be designed to provide the dog with shelter
from the elements of nature. When off its owner's property, any dog found to be a poultry killer
shall be kept on a leash and muzzled in such a manner as not to cause injury to the dog or interfere
with its vision or respiration, but so as to prevent it from biting a person or another animal.
D. The legal owner of any dog confined by Animal Control pursuant to this section shall be liable
to the County for any boarding fees, medical costs, or any other charges incurred or required during
any holding period.
SEC. 2-165(A). DOG KILLING OTHER DOMESTIC ANIMALS OTHER THAN
LIVESTOCK OR POULTRY.
Any Animal Control Officer who has reason to believe that any dog is killing other dogs or
domestic animals other than livestock or poultry shall apply to a magistrate of the county for the
issuance of a warrant requiring the owner or custodian, if known, to appear before the general
district court at a specified time. The Animal Control Officer or owner shall confine the dog until
such time as evidence shall be heard and a verdict rendered. If it appears from the evidence that
the dog has habitually killed other dogs or domestic animals, the court may order the dog killed or
removed to another state that does not border on the Commonwealth and prohibited from returning
to the Commonwealth. Any dog ordered removed by the Commonwealth shall be ordered by a
court to be killed or euthanized immediately.
SEC. 2-16. KILLING UNLICENSED DOGS.
It shall be the duty of the Animal Control Officer to kill any dog of unknown ownership found
running at large on which license has not been paid; provided, that the Animal Control Officer
may deliver such dog to any person in this county who will pay the required license fee on such
dog, with the understanding that should the legal owner thereafter claim the dog and prove his
ownership, he may recover such dog by paying to the person to whom it was delivered by the
Animal Control Officer, the amount of the license fees paid by him and a reasonable charge for
the keep of the dog while in his possession. Any person, Animal Control Officer, or other officer
killing a dog under this chapter shall cremate or bury the same.
SEC. 2-17. DISPOSAL OF DEAD DOGS.
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The owner of any dog, which has died from disease or other cause, shall forthwith cremate or bury
the same. If, after notice, any owner fails to do so, the Animal Control Officer or other officer shall
bury or cremate the dog, and he may recover on behalf of the county from the owner his cost for
this service.
SEC. 2-18. UNLAWFUL ACTS: PENALTIES.
(a) The following shall be unlawful acts and constitute Class 4 misdemeanors:
(1) False statements on license application. For any person to make a false statement in
order to secure a dog license to which he is not entitled.
(2) Failure to pay license tax. For any dog owner to fail to pay the license tax required by
this chapter before February 1st, for the year in which it is due.
(3) Running at large. For any dog owner to allow a dog to run at large in violation of Section
2- 19.
(4) Dead Dogs. For any owner to fail to dispose of the body of his dog in violation of
Section 2-17.
(5) Diseased Dogs. For the owner of any dog with a contagious or infectious disease to
permit such dog to stray from his premises if such disease is known to the owner.
(6) Removing Collar and Tag. For any person, except the owner or custodian, to remove a
legally acquired license tag from a dog.
(7) Concealing a Dog. For any person to conceal or harbor any dog on which the license
tax has not been paid, or to conceal a mad dog to keep the same form being killed.
(8) Other violations. To permit a dog to chase motor vehicles on a public highway. (B.S.M.
5- 2-88) (B.S.M. 3-7-05)
(b) The following act shall be punished as a Class 1 misdemeanor: False Claim. For any person to
present a false claim or to receive any money on a false claim under the provisions of the Code of
Virginia.
SEC. 2-19. DANGEROUS DOGS AND VICIOUS DOGS.
(a) As used in this section:
“Dangerous dog” means a canine or canine crossbreed that has bitten, attacked, or inflicted
injury on a person or companion animal that is a dog or cat or killed a companion animal that
is a dog or a cat. However, when a dog attacks or bites another dog or cat, the attacking or
biting dog shall not be deemed dangerous (i) if no serious physical injury as determined by a
licensed veterinarian has occurred to the other dog or cat as a result of the attack or bite (ii)
both animals are owned by the same person, (iii) if such attack occurs on the property of the
attacking or biting dog’s owner or custodian, or (iv) for other good cause as determined by the
court. No dog shall be found to be a dangerous dog as a result of biting, attacking or inflicting
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injury on another dog while engaged with an owner or custodian as part of lawful hunting or
participating in an organized, lawful dog handling event. (B.S.M. 4/17/07)
“Vicious dog” means a canine or canine crossbreed that has (i) killed a person; (ii) inflicted
serious injury to a person including multiple bites, serious disfigurement, serious impairment
of health, or serious impairment of a bodily function; or (iii) continued to exhibit the behavior
that resulted in a previous finding by a court or, on or before July 1, 2006, by an animal control
officer as authorized by local ordinance, that it is a dangerous dog, provided that its owner has
been given notice of that finding.
No canine or canine crossbreed shall be found to be a dangerous dog or a vicious dog solely
because it is a particular breed, nor shall the ownership of a particular breed of canine or canine
crossbreed be prohibited. No animal shall be found to be a dangerous dog or vicious dog if the
threat, injury or damage was sustained by a person who was (i) committing, at the time, a crime
upon the premises occupied by the animal’s owner or custodian, (ii) committing, at the time, a
willful trespass upon the premises occupied by the animal’s owner or custodian, or (iii)
provoking, tormenting, or physically abusing the animal, or can be shown to have repeatedly
provoked, tormented, abused, or assaulted the animal at other times. No police dog that was
engaged in the performance of its duties as such at the time of the acts complained of shall be
found to be a dangerous dog or a vicious dog. No animal which, at the time of the acts
complained of, was responding to pain or injury, or was protecting itself, its kennel, its
offspring, a person, or its owner’s or custodian’s property, shall be found to be a dangerous
dog or a vicious dog.
(b) Disposition of vicious dogs and dangerous dogs:
(1) Any Law Enforcement Officer or Animal Control Officer who has reason to believe
that a canine or canine crossbreed within his jurisdiction is a dangerous dog or vicious dog
shall apply to a magistrate of the jurisdiction for the issuance of a summons requiring the owner
or custodian, if known, to appear before a general district court at a specified time. The
summons shall advise the owner of the nature of the proceeding and the matters at issue. If a
Law Enforcement Office successfully makes an application for issuance of a summons, he
shall contact the local animal control officer and inform him of the location of the dog and the
relevant facts pertaining to his belief that the dog is dangerous or vicious. The Animal Control
Officer shall confine the animal until such time as evidence shall be heard and a verdict
rendered. If the Animal Control Officer determines or custodian can confine the animal in a
manner that protects the public safety, he may permit that the owner or custodian to confine
the animal until such time as evidence shall be heard and a verdict rendered. The court, through
its contempt powers, may compel the owner, custodian or harborer of the animal to produce
the animal. If, after hearing the evidence, the court finds that the animal is a dangerous dog,
the court shall order the animal’s owner to comply with the provisions of this ordinance. If,
after hearing the evidence, the court finds that the animal is a vicious dog, the court shall order
the animal euthanized in accordance with the provisions of §3.2-6562, Code of Virginia, 1950,
as amended, and the same from time to time be amended.
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(2) If the owner of an animal found to be a dangerous dog is a minor, the custodial parent
or legal guardian shall be responsible for complying with all requirements of this section.
(3.) The owner of any animal found to be a dangerous dog shall, within ten (10) days of
such finding, obtain a dangerous dog registration certificate from the local Animal Control
Officer or treasurer for a fee of fifty ($50.00) dollars, in addition to other fees that may be
authorized by law. The local Animal Control Officer or treasurer shall also provide the owner
with a uniformly designed tag that identifies the animal as a dangerous dog. The owner shall
affix the tag to the animal’s collar and ensure that the animal wears the collar and tag at all
times. All certificates obtained pursuant to this subdivision shall be renewed annually for the
same fee and in the same manner as the initial certificate was obtained. The Animal Control
Officer shall provide a copy of the Dangerous Dog Registration Certificate and verification of
compliance to the State Veterinarian.
(4) All certificates or renewals thereof required to be obtained under this section shall only
be issued to persons 18 years of age or older who present satisfactory evidence (i) of the
animal’s current rabies vaccination, if applicable, (ii) that the animal has been neutered or
spayed, and (iii) that the animal is and will be confined in a proper enclosure or is and will be
confined inside the owner’s residence or is and will be muzzled and confined in the owner’s
fenced-in yard until the proper enclosure is constructed. In addition, owners who apply for
certificates or renewals thereof under this section shall not be issued a certificate or renewal
thereof unless they present satisfactory evidence that (i) their residence is and will continue to
be posted with clearly visible signs warning both minors and adults of the presence of a
dangerous dog on the property and (ii) the animal has been permanently identified by means
of a tattoo on the inside thigh or by electronic implantation. All certificates or renewals thereof
required to be obtained under this Section shall only be issued to persons who present
satisfactory evidence that the owner has liability insurance coverage, to the value of at least
one hundred thousand ($100,000.00) dollars that covers animal bites. The owner may obtain
and maintain a bond in surety, in lieu of liability insurance, to the value of at least one hundred
thousand ($100,000.00) dollars.
(5) While on the property of its owner, an animal found to be a dangerous dog shall be
confined indoors or in a securely enclosed and locked structure of height and design to prevent
its escape or direct contact with or entry by minors, adults, or other animals. The structure shall
be designed to provide the animal with shelter from the elements of nature. When off its
owner’s property, an animal found to be a dangerous dog shall be kept on a leash and muzzled
in such a manner as not to cause injury to the animal or interfere with the animal’s vision or
respiration, but so as to prevent it from biting a person or another animal.
(6) The owner of any dog found to be a dangerous shall register the animal with the
Commonwealth of Virginia Dangerous Dog Registry, as established under Section 3.2-6542,
within forty-five (45) days of such a finding by a court of competent jurisdiction. The owner
shall also cause the local animal control officer to be promptly notified of (i) the names,
addresses, and telephone numbers of all owners; (ii) all of the means necessary to locate the
owner and the dog at any time; (iii) any complaint or incidents of attack by the dog upon any
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person or cat or dog; (iv) any claims made or lawsuits brought as a result of any attack; (v)
tattoo or chip identification information or both; (vi) proof of insurance or surety bond; and
(vii) the death of the dog.
(7) After an animal has been found to be a dangerous dog, the animal’s owner shall
immediately, upon learning of the same, notify the local animal control authority if the animal
(i) is loose or unconfined; (ii) bites a person or attacks another person; (iii) is sold, given away,
or dies. Any owner of a dangerous dog who relocates to a new address shall, within ten (10)
days of relocating, provide written notice to the appropriate local animal control authority for
the old address from which the animal had moved and the new address to which the animal
has been moved.
(8) All fees collected pursuant to the ordinance, less the costs incurred by the animal control
authority in producing and distributing the certificates and tags required by the ordinance, shall
be paid into a special dedicated fund in the treasury of the locality for the purpose of paying
the expenses of any training course required under §3.2-6556, of the Code of Virginia, 1950,
as the same may from time to time be amended.
(9) The owner of any custodian of a canine or canine cross-breed or other animal is guilty
of a:
1. Class 2 misdemeanor if the canine or the canine cross-breed previously declared a
dangerous dog pursuant to this Section, when such declaration arose out of a separate and
distinct incident, attacks and injures of kills a cat or dog that is a companion animal
belonging to another person;
2. Class 1 misdemeanor if the canine or the canine cross-breed previously declared a
dangerous dog pursuant to this Section, when such declaration arose out of a separate and
distinct incident, bites a human being or attacks a human causing bodily injury; or
3. Class 6 felony as provided for in the Code of Virginia if any owner or custodian
whose willful act or omission in the care, control or containment of a canine, canine cross-
breed or other animal is so gross, wanton, and culpable as to show a reckless disregard for
human life, and is the proximate cause of such dog or other animal attacking and causing
serious bodily injury to a person.
The provisions of this subsection shall not apply to any animal that, at the time of the acts
complained of, was responding to pain or injury or was protecting itself, its kennel, its
offspring, a person, or its owner’s or custodian’s property, or when the animal is a police dog
that is engaged in the performance of its duties at the time of the attack.
(10) The owner of any animal that has been found to be a dangerous dog who willfully
fails to comply with the requirements of this Section shall be guilty of a Class 1 misdemeanor.
(B.S.M. 4-17-07)
(c) The Animal Control Officer may determine, after investigation, whether a dog is a
dangerous dog. If the animal control officer believes that a dog is a dangerous dog, he may
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order the animal’s owner to comply with the provisions of this ordinance. If the animal’s owner
disagrees with the Animal Control Officer’s determination, he may appeal the determination
to the General District Court for a trial on the merits.
Adopted by the Board of Supervisors, 3/7/05.
(B.S.M. 4-17-07) (B.S.M.12-18-07) (B.S.M. 1-15-08)
SEC. 2-20. COMPENSATION FOR LIVESTOCK AND POULTRY KILLED BY
DOGS.
Any person who has any livestock or poultry killed or injured by any dog not his own shall be
entitled to receive as compensation the fair market value of such livestock or poultry not to
exceed four hundred ($400.00) dollars per animal or ten ($10.00) dollars per fowl to the extent
budgeted for the fiscal year, provided that (i) claimant has furnished evidence within Sixty (60)
days of discovery of the quality and value of the dead or injured livestock and the reasons the
claimant believes that death or injury was caused by a dog; (ii) the Animal Control Officer or
other officer shall have conducted an investigation and that his investigation supports the claim
(B.S.M. 5-2-88) (B.S.M. 4/19/05)
Under this section, the County Administrator is authorized to receive claims for compensation
for livestock and poultry killed by dogs, together with reports made by the Animal Control
Officer investigating the killing of livestock and poultry by dogs. The County Administrator
shall process the claim and determine the fair market value of the livestock or poultry killed,
and, if the claim is supported by the warden’s investigation, shall approve the claim and submit
the same to the Treasurer of Pittsylvania County for payment to the person entitled. (B.S.M.
5-2-88)
SEC. 2-21. SEVERABILITY CLAUSE.
It is hereby declared to be the intention of the Board of Supervisors that the sections,
paragraphs, sentences, clauses, and phrases of this Ordinance are severable, and if any phrase,
clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional or
invalid by the valid judgment or decree of a Court of competent jurisdiction, such
unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses,
sentences, paragraphs, and sections of this Ordinance. (Code 1975, Sec.1-3)
SEC. 2-22. RUNNING AT LARGE RESTRICTIONS IN DESIGNATED AREAS.
(a) Notwithstanding the provisions of Section 2-13, it shall be unlawful for any dogs, licensed
or unlicensed to run at large within certain designated subdivisions, towns, villages, or other
defined areas. (B.S.M. 4/19/05)
(b) At least seventy-five percent (75%) of the property owners in any R-1 zoned subdivision,
town, village, or other defined area within Pittsylvania County may petition the Board of
Supervisors to be included among those areas within which it is unlawful for dogs to run at
large. Only one (1) owner per property shall be counted towards the above-required percentage.
The Petitioner shall be required to fully pay for any and all advertising costs associated with
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the Public Hearing on their petition. Upon receipt of such petition, the Board shall consider (1)
whether the petition is signed by at least seventy-five (75%) percent of the property owners
within the area, and (2) whether the area is well enough defined to permit adequate enforcement
by the Animal Control Officer. Thereafter, the Board shall vote upon the petition. If a majority
of the members of the Board vote in favor of the petition, the area designated therein shall be
added to those on file in the County Administrator’s Office. If the Board approves the petition,
the Petitioner shall pay the County for all costs associated with producing and installing the
“no dogs running at large” signs. (B.S.M. 9/17/19)
(c) The following areas shall be designated areas restricting dogs running at large.
(1) Quailwood Subdivision, off Orphanage Road in the Mt. Hermon area as recorded in
Map Book 43, Page 67 H, Section 2, Lots 1-26, 28 and 29.
(2) Fairfield Park Subdivision, off Highway 41 in the Mt. Hermon area as shown on maps
recorded in Map Book 14, Pg. 84, Sec. A, B, C, D; Pg. 31, Map Book 20, Pg. 65; Map Book
31, Pg. 98.
(3) Ridgecrest Park Subdivision, off Highway 41 in the Mt. Hermon area as shown on maps
recorded in Map Book 15, Pg. 51, Sec. A, B, C, D, E; Map Book 22, Pg. 17, Sec. A, B, C; Map
Book 33, Page 41, Sec. B, F; Map Book 33, Pg. 42, Sec. G.
(4) Olde Hunting Hills Subdivision, off Mt. Cross Road, Secondary Highway 750 as shown
on maps recorded in Map Book 23, Pg. 93, Sec. K., Sec. L-Lt. 7A, Sec. B-Lt. 18A; Map Book
13; Pg. 94 Sec's A-1A-3A, B-1-6, C-1-3; Map Book 16, Pg. 8, Sec's A-4, 5, B-18-24, L-1-7;
Map Book 26, Pg. 25, Sec's A, L, M; Map Book 37, Pg. 49, Sec's L, M, N; Map Book 39, Pg.
12, Sec's A, M, N, P; Map Book 40, Pg. 188, Sec's A, P; Map Book 14, Pg. 65, Sec's D, E.
(5) Laurel Woods Subdivision, off Golf Club Road in the Mt. Hermon area as recorded in
Map Book 21, Page 7, Sections A, B; Map Book 40, Page 17. (B.S.M. 7/19/05 effective 9/1/05)
(6) Mountain View Place Subdivision, off R & L Smith Drive, State Route 863, as recorded
in Deed Book 848, Page 748, Sections A & B, Plat Book 43, Page 148-L, Tax I.D. #125-A-47,
Zoning R-1. (B.S.M. 9/20/05 effective 10/21/05).
(7) Stoneridge Subdivision, off Pinecroft Road, State Road 747, as recorded in Deed Book
1176, Page 102; DB 1309, Pg 651; DB 1324, Pg 662; DB 1330, Pg 490; DB 1332, Pg 729; DB
1352, Pg 090; DB 1353, Pg 124; DB 1354, Pg 457; DB 1402, Pg 140; DB 1403, Pg 858; DB
1431, Pg 623; DB 1443, Pg 406; DB 1452, Pg 400; DB 1455, Pg 622; DB 1461, Pg 219; DB
1475, Pg 009; DB 1478, Pg 617; DB 1499, Pg 646; DB 1511, Pg 605; DB 1513, Pg 488; DB
1522, Pg 850. (B.S.M. 7/18/06)
(8) A portion of Stony Mill Road, beginning at the intersection of SR 869 & SR 844 and
ending at the Stony Mill Bridge at Sandy River. A map is available for viewing in the office
of the County Administrator, 21 North Main Street, Chatham, Virginia.
(9) Mt. Hermon Place Subdivision, from Samuel Road to the end of Pepper Lane, and the
cul-desacs of Samuel Road, Samuel Ct., Samuel Bend, and Franklin Place as recorded in MB
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39, Pg 199; DB 840, Pg 323; MB 40, Pg 84; MB 43, Pg 139B; MB 43, Pg 26J; MB 39, Pg 55;
MB 40, Pg 13; MB 42, Pg 193; MB 43, Pg 21C; MB 43, Pg 30G; MB 43, Pg 170B; MB 42,
Pg 142. A map is available for viewing in the office of the County Administrator, 21 North
Main Street, Chatham, Virginia. (B.S.M. 10/21/08 effective 11/03/08)
(10) Huckleberry Hills Subdivision, from Blue Ridge Drive/SR 634 to end of Banley
Street/SR 980, as recorded in DB 1191, Pg 581; DB 1191, Pg 578; DB 606, Pg 164; DB 587,
Pg 113; DB 1268, Pg 052; DB 1463, Pg 643; DB 1202, Pg 782; DB 586, Pg 46; DB 998, Pg
609; DB 533, Pg 583; DB 557, Pg 487; DB 1025, Pg 004; DB 894, Pg 124; DB 551, Pg 547;
WF 09, Pg 00134; including 250 feet around 125 Banleys Street #2532-73-2915 in the
Staunton River District, A map is available for viewing in the office of the County
Administrator, 21 North Main Street, Chatham, Virginia. (B.S.M. 5/19/09)
(11) Dogwood Estates Subdivision including the entire subdivision from Ridgecrest Drive
(SR 744), along Dogwood Lane (SR 1540), along all of Maple Drive (SR 1541), along all of
John Drive (SR 1558) and to the end of Allen Place (SR 1559) as recorded in MB 43, Pg 63C;
MB 29, Pg 53 MB 43, Pg 156K; MB 43, Pg 156J; Plat Cabinet 2, Pg 232C. A map is available
for viewing in the office of the County Administrator, 21 North Main Street, Chatham,
Virginia. (B.S.M. 4/17/12)
(12) Wayside Acres Subdivision, from Hillside Road (Route 1115), to Hogan Street, to
Ridgeview Road (Route 1114) MB 2, Pg 100, including Ollie S. Short Subdivision, DB 415,
Pg 344 and Pg 345. A Map is available for viewing in the Office of the County Administrator,
located at 1 Center Street, Chatham, Virginia. (B.S.M. 11/05/12)
(13) Sunset Bay Subdivision, from Rose Street (SR 758) to the Sandy Court cul-de-sac,
along Sunset Bay Road to the Crestview Lane cul-de-sac as recorded in MB 43, Pg. 287E; MB
43, Pg. 251G and MB 43, Pg. 251H. A Map is available for viewing in the Office of the County
Administrator, located at 1 Center Street, Chatham, Virginia. (B.S.M. 2/19/2013)
(14) Lakeside Drive the entire length Lakeside Drive coming off U.S. 29N thru its entire
length of 2051.18 feet upon reaching the dead-end, in the Banister Electoral District. A Map
is available for viewing in the Office of the County Administrator, located at 1 Center Street,
Chatham, Virginia. (B.S.M. 1/21/14)
(15) Restriction in Designated Areas, to include Jasper Woods Road in Hurt, Virginia, with
a controlled area defined as from Highway View Road/SR 988 to Jasper Wood Road/ SR 753,
and ending at Shula Drive/SR 642. (B.S.M. 12/15/2015)
(16) Restriction to include the entirety of Green Farm Road/SR 719 in the Banister and
Dan River Election Districts. (B.S.M. 12/09/2017)
SEC. 2-23. FEMALES IN SEASON RUNNING AT LARGE.
It shall be unlawful for the owner of any female dog to permit such dog to stray from his premises,
while such dog is known to such owner to be in season. During the entire time such dog is in
season she shall be confined, restricted or penned up in a building or a secure enclosure adequate
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to prevent the animal from running at large. Tethering of a female dog in season not under the
direct supervision and control of the owner or custodian shall not be considered adequate
confinement. For authority of this section, refer to Section 3.2-6538, Code of Virginia, 1950, as
amended. Adopted by the Board of Supervisors, 3/7/05.
SEC. 2-24. IMPOUNDMENT WHERE RUNNING AT LARGE.
(a) It shall be the duty of the Animal Control Officer or other officer to cause any dog found
running at large in violation of any provisions of this Chapter to be caught and confined in the
County animal shelter. Every effort shall be made on the part of such officer to determine
ownership of the confined dog and to notify the owner of its whereabouts. If the owner is known
by the virtue of a nametag, license or other identification on the dog, such owner shall be notified
forthwith by the person taking the dog into custody.
(b) A dog confined, pursuant to this Chapter may be claimed by the rightful owner, after displaying
proof of ownership, a current dog tag and current rabies inoculation proof. No dog shall be released
to any person claiming ownership, unless such tag and proof are displayed. Any owner claiming a
dog impounded under this Chapter shall pay to the person in charge of the animal shelter a fee in
an amount equal to the actual expenses incurred in keeping the dog impounded. Such fee shall be
in addition to any penalty imposed for the violation of this article and shall be paid prior to release
of the dog from the shelter. The County Animal Shelter collecting such fee shall furnish the owner
of the dog with a printed receipt, in a form and manner approved by the County Administrator and
shall keep an electronic copy of all such receipts. These funds shall be tracked and turned over to
the County Treasurer with normal deposits. Records of these charges collected shall be subject to
audit by representatives of the Board of Supervisors whenever requested.
(c) Dogs impounded under this Chapter may be disposed of after a waiting period of seven (7)
days from the time notice was given to the owner or, if the owner cannot be located, seven (7) days
after impoundment. Nothing herein shall be construed to prohibit the destruction of critically ill or
critically injured dogs for humane purposes.
An animal confined pursuant to this section shall be kept for a period of not less than five (5) days,
such period to commence on the day immediately following the day the animal is initially confined
in the facility, unless sooner claimed by the rightful owner thereof.
The operator or custodian of the public animal shelter shall make a reasonable effort to ascertain
whether the animal has a collar, tag, license, tattoo, or other form of identification. If such
identification is found on the animal, the animal shall be held for an additional five (5) days, unless
sooner claimed by the rightful owner. If the rightful owner of the animal can be readily identified,
the operator or custodian of the shelter shall make a reasonable effort to notify the owner of the
animal's confinement within the next 48 hours following its confinement.
(d) Nothing contained in this section shall be construed to prohibit the destruction of critically ill
or critically injured dogs for humane purposes.
SEC. 2-25. EVIDENCE SHOWING INOCULATION FOR RABIES PREREQUISTE TO
OBTAINING DOG LICENSE.
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No license tag shall be issued for any dog unless there is presented, to the Treasurer or other officer
of the county charged by law with the duty of issuing license tags for dogs at the time application
for license is made, evidence satisfactory to him showing that such dog has been inoculated or
vaccinated against rabies by a currently licensed Veterinarian or currently licensed Veterinary
Technician who was under the immediate and direct supervision of a licensed Veterinarian on the
premises. For authority of this section, refer to Section 3.2-6526, Code of Virginia, 1950, as
amended. Adopted by the Board of Supervisors, 3/7/05.
SEC. 2-25.1. RABIES INOCULATION OF DOGS; AVAILABILITY OF CERTIFICATE.
The owner or custodian of all dogs four (4) months of age and older shall have them currently
vaccinated for rabies by a licensed Veterinarian or licensed Veterinary Technician who is under
the immediate and direct supervision of a licensed Veterinarian on the premises. The supervising
Veterinarian on the premises shall provide the owner of the dog with a certificate of vaccination.
The owner of the dog shall furnish within a reasonable period of time, upon the request of an
Animal Control Officer, Humane Investigator, Law-enforcement Officer, State Veterinarian's
Representative, or official of the Department of Health, the certificate of vaccination for such dog.
The vaccine used shall be licensed by the United States Department of Agriculture for use in that
species.
For authority of this section, refer to Section 3.2-6521, Code of Virginia, 1950, as amended.
Adopted by the Board of Supervisors, 3/7/05.
SEC. 2-26. LACK OF CONTROL OF COMPANION ANIMAL ORDINANCE.
A. Lack of control of a companion animal is created when any dog, cat, canine crossbreed, or other
companion animal, as defined by § 3.2-6500, Code of Virginia, 1950, as amended, unreasonably
annoys humans, endangers the life or health of other animals or persons, or substantially interferes
with the rights of citizens, other than their owners, to the enjoyment of life or property. Acts
constituting a lack of control of a dog, cat, canine crossbred, or other companion animal shall
include, but are not limited to, the following:
(1) Trespassing upon another’s property in such a manner as to damage property;
(2) Habitually running at large in a restricted area (meaning three (3) or more convictions
for running at large within two (2) years);
(3) Molesting, annoying, or intimidating pedestrians or passersby not located on the
companion animal’s owner’s property;
(4) Defecating without permission of the property owner upon any public place or upon
premises not owned or controlled by the owner unless promptly removed by the animal's owner;
or
(5) Being found at large on any school property.
B. Any person owning or having possession or control of an animal suspected of violating this
Ordinance shall be proceeded against by warrant or summoned before the General District Court
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of the County to show cause why the animal should not be confined, euthanized, removed, or the
public nuisance otherwise abated.
C. The Animal Control Officer, owner, or custodian shall confine the animal until the Court has
made a final decision in the case. If the Animal Control Officer deems confinement necessary,
then the owner or custodian shall be responsible for the impound fees.
D. Upon proof that such animal has violated this Ordinance, the animal shall, by General District
Court Order, be confined, euthanized, removed, or the public nuisance shall be otherwise abated,
as the Court shall Order. No person shall fail to comply with such an Order.
E. Violation of Subsections A(3), A(4), or A(5) of this Section is a Class 1 Misdemeanor. Violation
of any other provision of this Ordinance is a Class 3 Misdemeanor.
F. This Ordinance shall not apply to non-companion animals, livestock, poultry, alpacas, and
llamas; any person while engaged in law enforcement or search and rescue activity; in a supervised
formal obedience training class or show; during formally sanctioned field trials; while engaged in
lawful hunting with a dog or dogs during open season; during bona fide hunting or field trial dog
training, and/or dogs actively engaged in farming activity.
G. Enforcement. No person shall be charged with a violation of § A herein, unless the Complainant
appears before a Magistrate and requests a Summons or Warrant be issued charging the violation;
except that, when a violation is committed in the presence of an Animal Control Officer, said
Officer may issue a Summons and take other action as set forth in this Ordinance. (B.S.M.
7/16/2019)
Article III.
CATS
SEC. 2-30. VACCINATION OF CATS; CERTIFICATE REQUIRED; IMPOUNDMENT
OF UNVACCINATED CATS.
(a) It shall be unlawful for any person to own, keep or harbor any domestic cat over the age of four
(4) months unless such cat has been vaccinated against rabies with a species appropriate vaccine
approved by the United States Department of Agriculture and administered by a licensed
Veterinarian, and has received any required vaccination against rabies as specified in the
Certificate of Vaccination.
(b) Upon vaccination or revaccination of a domestic cat as required by this Section, a Certificate
of Vaccination, properly executed and signed by the licensed Veterinarian performing the
vaccination, shall be issued to the cat’s owner by the Veterinarian, who shall retain a copy of the
Certificate for his or her records.
(c) The certificate issued pursuant to paragraph (B) of this section shall be NASPHV Form number
50 or its equivalent, or as the same shall be from time to time modified, and shall certify that the
cat has been vaccinated in accordance with this article, and shall include the following information:
1. The date of the vaccination
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2. The date for required revaccination
3. A brief description of the cat or its age, sex and breed; and
4. The name and address of the animal’s owner.
(d) The certificate issued pursuant to subsection (B) of this section shall be preserved by the owner
of the cat and exhibited promptly upon request for inspection by the Animal Control Officer or
any Law enforcement officer.
(e) Any person bringing a domestic cat into the County from some other jurisdiction shall be
required to conform with the provisions of subsection (A) above within fifteen (15) days
subsequent to bringing such cat into the County.
(f) It shall be the duty of the persons charged with the enforcement of this chapter to impound any
cat which has not been vaccinated as required by the Section, and such cat shall be held for a period
of not less than five (5) days, unless the cat is rabid or suspected of being rabid, in which case the
cat shall be destroyed humanely and preserved and tested in accordance with acceptable Health
Department procedures. Community cats displaying the signature ear tip shall not be impounded
in the enforcement of this section.
(g) Any cat impounded pursuant to the Section which is not rabid or suspected of being rabid may
be redeemed by its owner at any time within the five (5) days following its impoundment by paying
an impoundment fee established annually by the Board of Supervisors in its approved fees
schedule. If the rightful owner is identified and chooses to surrender their cat, they are still
responsible for any accrued fees until the date of the surrender. If the cat is unclaimed after a
period of ten (10) days, the cat shall become the property of the County Intake Shelter for
disposition. of fifteen dollars ($15.00) plus five dollars ($5.00) for each day or fraction thereof
during which the cat was impounded and the cost of any vaccination required to comply with this
Section, otherwise such cat shall be disposed of as is provided by law.
For authority for this Section, see Section 3.2-6524, Code of Virginia, 1950, as amended.
(Adopted by the Board of Supervisors on July 16, 2002)
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2020 PITTSYLVANIA COUNTY LEGISLATIVE PRIORITY LIST
1. Cherrystone and Roaring Fork Dam Rehabilitation Funding
2. Repurposing CPMT Fine for Victory Academy Use
3. Counties’ Ability to Tax same as Cities and Towns
4. Increase in Localities Ability to Tax Solar Projects
5. 1% County Sales Tax Increase for School Infrastructure Funding
6. VIR RIFA (seek alternative revenue sources to assist VIR with infrastructure needs)
7. No Erosion of Second Amendment Rights
8. Support Local Choice in Acceptance of Refugees from State
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