4th

Comprehensive Annual Financial Report

July 1, 2013 – June 30, 2014

Lowndes County Board of Commissioners

THIS PAGE INTENTIONALLY LEFT BLANK (This report is formatted for duplex printing.)

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

LOWNDES COUNTY, GEORGIA

For The Fiscal Year July 1, 2013 - June 30, 2014

FINANCE DEPARTMENT

Stephanie Black, Finance Director

LOWNDES COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Year Ending June 30, 2014

TABLE OF CONTENTS

INTRODUCTORY SECTION

Transmittal Letter 1-5 GFOA Certificate of Achievement 6 General Government Organization Chart 7 County Officials 8

FINANCIAL SECTION

Independent Auditor's Report 9-11 Management’s Discussion and Analysis 12-22

BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements:

Statement of Net Position 23-26 Statement of Activities 27-28

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds 29-30 Reconciliation of Total Governmental Fund Balances to Net Position Of Governmental Activities 31 Statement of Revenues, Expenditures and Changes in Fund Balance Of Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities 33

Proprietary Fund Financial Statements:

Statement of Net Position 34-35 Statement of Revenue, Expenses and Changes in Fund Net Position 36 Statement of Cash Flows 37-38 Agency Fund Financial Statements: Statement of Fiduciary Assets and Liabilities 39

Notes to the Financial Statements 40-73

LOWNDES COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Year Ending June 30, 2014

TABLE OF CONTENTS

REQUIRED SUPPLEMENTAL INFORMATION

Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Funds: General Fund 74-81 Notes to Budgetary Comparison Schedules 82 Schedule of Funding Progress-Pension 83 Schedule of Funding Progress-OPEB 83

COMBINING AND INDIVIDUAL FUND SCHEDULES

Major Funds: Capital Projects Special Sales Tax VI 84 Capital Projects Special Sales Tax VII 85

Nonmajor Funds: Combining Balance Sheet – All Nonmajor Governmental Funds 86

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – All Nonmajor Governmental Funds 87 Combining Balance Sheet – Nonmajor Governmental Funds –Special Revenue Funds 88-89 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – Special Revenue Funds 90-91 Combining Balance Sheet – Nonmajor Governmental Funds –Capital Projects Funds 92 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – Capital Projects Funds 93

Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds:

Special Services Fund 94 Commissary Fund 95 Seizures Special Revenue 96 Hotel/Motel Tax Fund 97 Intergovernmental Grants 98 Jail Operations 99 Drug Abuse Treatment 100 911 Emergency Telephone 101 Victim Assistance 102 Law Library 103

LOWNDES COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Year Ending June 30, 2014

TABLE OF CONTENTS

COMBINING AND INDIVIDUAL FUND SCHEDULES - Continued

Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds - Continued:

Capital Projects Judicial Complex and Jail 104 Capital Projects Sales Tax V 105 Capital Projects Public Roads 106

Other Enterprise Funds Combining Statements of Net Position 107 Combining Statements of Revenue, Expenses and Changes in Net Position 108 Combining Statements of Cash Flows 109-110

Internal Service Funds: Combining Statements of Net Position 111 Combining Statements of Revenue, Expenses and Changes in Net Position 112 Combining Statements of Cash Flows 113-114

Fiduciary Funds: Combining Statements of Assets and Liabilities – Agency Funds 115 Combining Statements of Changes in Assets and Liabilities – Agency Funds 116-117

STATISTICAL SECTION (Unaudited)

Net Position by Component 118 Changes in Net Position 119-120 Fund Balances, Governmental Funds 121 Changes in Fund Balances, Governmental Funds 122 Tax Revenues by Source, Governmental Funds 123 Assessed Value and Actual Value of Taxable Property 124-125 Direct and Overlapping Property Tax Rates 126 Principle Property Tax Payers 127 Property Tax Levies and Collections 128

LOWNDES COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Year Ending June 30, 2014

TABLE OF CONTENTS

STATISTICAL SECTION (Unaudited)

Ratios of Outstanding Debt By Type 129 Direct and Overlapping Governmental Activities Debt 130 Legal Debt Margin Information 131 Pledged-Revenue Coverage 132 Demographic and Economic Statistics 133 Principle Employers 134 Full-time Equivalent County Government Employees by Function/Program 135-136 Operating Indicators by Function/Program 137 Capital Assets Statistics by Function/Program 138

SPECIAL REPORTS SECTION

Schedule of Projects Constructed With Special Sales Tax Proceeds 139-141

Schedule of State Contractual Assistance 142

Schedule of Expenditures of Federal Awards 143-144 Notes to the Schedule of Expenditures of Federal Awards 145

Independent Auditor's 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 146-147

Independent Auditor's Report on Compliance for each Major Program and Report on Internal Control over Compliance Required by OMB Circular A-133 148-149

Schedule of Findings and Questioned Costs 150

Certificate of 9-1-1 Expenditures 151-153

INTRODUCTORY SECTION

Lowndes County Finance Department

Stephanie Black Finance Director

300 North Patterson Street • Valdosta, Georgia 31601 • Phone (229) 671-2525 • Fax (229) 671-2596

December 31, 2014 The Honorable Bill Slaughter, Chairman Members of the Lowndes County Board of Commissioners And Citizens of Lowndes County The Comprehensive Annual Financial Report of Lowndes County, Georgia for the fiscal year ended June 30, 2014, is submitted herewith. Responsibility for both the accuracy of the data and the completeness and fairness of presentation, including all disclosures rests with the County. We believe the data presented is accurate in all material respects and that it is presented in a manner designed to fairly set forth the financial position and results of operations of the County as measured by the financial activity of its various funds. All disclosures necessary to enable interested citizens to gain a reasonable understanding of the County’s financial activities have been included. This report consists of management’s representations concerning the finances of Lowndes County, Georgia. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. All disclosures necessary to enable interested citizens to gain a reasonable understanding of the County’s financial activities have been included. The County’s financial statements have been audited by Henderson & Godbee, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of Lowndes County for the fiscal year ended June 30, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the County’s financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is presented as the first component of the financial section of this report.

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Governmental accounting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The County’s MD&A can be found immediately following the report of the independent auditors.

REPORTING ENTITY

Lowndes County was originally established as a Georgia county on December 23, 1825 by an Act of the General Assembly of Georgia. The Board is comprised of one chairman, elected county wide, and five commissioners each elected from a separate commission district serving four year staggered terms. Daily operations are directed by a County Manager who is appointed by and responsible to the Board of Commissioners. The County provides services to approximately 112,916 residents living in a 510.7 square mile area. Services provided include judicial services including the Superior, State, Magistrate, Probate and Juvenile Courts and the District Attorney and the Public Defender. The County provides public safety including the Sheriff’s office, 911 emergency communications, animal control, emergency medical services and fire protection. Public works services include road maintenance and construction and building maintenance. The County provides health and welfare services through the public health department, the Department of Family and Children Services and mental health services through Behavioral Health Services of South Georgia. Culture and recreation are funded and provided through a separate millage for the Valdosta-Lowndes County Parks and Recreation Authority and appropriated funds to the South Georgia Regional Library. Economic development is supported through a separate millage for the Valdosta- Lowndes Development Authority and appropriations to the Moody Support Group. The incorporated areas of Lowndes County consist of five municipalities which are the cities of Dasher, Hahira, Lake Park, Remerton and Valdosta. Each city is governed by a mayor and city council. The financial statements contained herein include all the activities and functions of Lowndes County that are under the jurisdiction of the Board of Commissioners, as set forth in state and local law. Additionally, three component units are included in these financial statements because of their operational and financial relationships to the County. The Lowndes County Board of Health provides numerous health services to all county residents. The Valdosta-Lowndes Development Authority provides assistance to new and present business to operate and expand business in Lowndes County. The Valdosta-Lowndes County Parks and Recreation Authority provides recreation services to all county residents.

NATURAL FEATURES AND LAND USE Lowndes County is located on the Florida border with a major interstate highway system (I-75) that is utilized by many tourists to visit Florida’s vacation attractions from across the United States and Canada. The County also has a major state highway that provides commerce and tourism the ability to reach the Georgia coast. The County has experienced slow steady growth in residential and commercial development in the last 10 years which included the economic recession. The real and personal property tax digest has grown an average of 1% over those years. Through planning and zoning the County attempts to maintain a balanced use of land and provide defined areas for residential growth and development as well as areas for commercial and industrial growth. At the same time the County is also expanding recreational land use through the development of new parks. The County is also protective of land use within the areas close to Moody Air Force Base to prevent encroachment that would hamper the mission of the base.

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POPULATION The County population has grown 19.39% in the last ten years. The growth has been driven in part by the expansion of missions at Moody Air Force Base, enrollment growth at the local state University, growth in industrial and commercial job opportunities and most recently by an increase in retirees looking for lower cost alternatives to traditional retirement locations. New housing developments are keeping pace with this growth and the County continues to expand roads and water and sewer systems to keep the infrastructure at the levels needed to meet the new demands of this growth.

ECONOMIC CONDITION AND OUTLOOK Lowndes County provides many state mandated and other services that are the economic back bone for the local economy. Like many counties, Lowndes County is providing new services, which in the past were considered municipal services, to the fastest growing sections of the county in the unincorporated areas. To assure that the financial strength of Lowndes County is maintained, the financial policies of the County require that the County maintain 120 days of operating expenditures as a fund balance reserve. This policy has been instrumental in achieving excellent ratings from the bond rating agencies. In November 2012, Lowndes County received an Aa2 rating from Moody’s Investors Service and an AA- rating from Standards and Poor’s. These ratings provided by these independent services demonstrate the conservative and sound fiscal policies that Lowndes County has developed as a management philosophy. The County has averaged 8.5% unemployment rate the last five years compared to a State average of 9.2%. County population has grown 3.37% since the 2010 census which showed a population of 109,233. County local option sales tax collections were down by 3.2% over the prior year due in part by the removal of sales tax on manufacturing energy usage in January 2013 and on vehicles as of April 2013. The gross tax digest had a growth rate of .97% over the prior year. New industry growth as well as growth of existing industries continues to be steady. Continued growth in enrollment at Valdosta State University and expansion at Moody Air Force Base continue to increase jobs for direct and indirect services to these two entities. The housing market is improving with sales up and growth in multi- unit housing.

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MAJOR INITIATIVES For The Year: Due to the slow growth and decline of some revenue, the County focused on improving services with established departments and employees. The County continued the review of the Code of Ordinance to ensure citizens safety and quality of life. The County also continued education programs for citizens to learn more about how County government operates. The focus of the County during these poor economic times has been to maintain the financial strength that the County has established over many years. The County will continue the expansion work that is part of their water and wastewater service five year capital improvement master plan which was prepared by Ingram & Watkins, LLC now that a new SPLOST has been approved by the voters and began January 1, 2014. For The Future: The County will continue to budget conservatively as it has in the past and will provide the vital services to County residence as economically and efficiently as possible. Capital improvements that are important to the delivery of services or assist with economic development will be provided as needed. The newly approved SPLOST will provide many of the capital improvements required for delivery of services including public safety and public works vehicles and equipment. The County has changed insurance intermediaries effective January 1, 2014 in an attempt to reduce rising cost of the self-insured health plan. For FY14 this change resulted in a back log of claims being paid out along with claims from the new intermediary who pay within 30 days and this resulted in higher health care cost to all departments.

RELEVANT FINANCIAL POLICIES The management of Lowndes County has established a comprehensive internal control system that is designed both to protect the county’s assets from theft, loss, or misuse and to compile sufficient reliable information for the preparation of the County’s financial statements in conformity with generally accepted accounting standards. Because cost of internal controls should not outweigh their benefits, the County’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance of the safeguarding of assets and the proper recording of financial transactions.

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General Government Organizational Chart

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Lowndes County, Georgia

Principle Officials

Joyce E. Evans Commissioner District 1

Bill Slaughter Chairman

Richard Raines Commissioner District 2

Crawford Powell Commissioner District 3

Demarcus Marshall Commissioner District 4

John Page Commissioner District 5

County Manager Joe Pritchard

County Attorney Walter G. Elliott

Elected Officials

Tax Commissioner Mary Nell Robertson Clerk of Court Beth Greene Sheriff Chris Prine Superior Court Judge Harry Jay Altman II State Court Judge John Kent Edwards Magistrate Court Judge Joni B. Parker Probate Judge Terri Adams

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FINANCIAL SECTION

MANAGEMENT DISCUSSION AND ANALYSIS

LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 As Management of Lowndes County, Georgia, we offer readers of the County’s basic financial statements this narrative overview and analysis of the financial activities of the County for the year ending June 30, 2014. This discussion is intended to: 1) assist the reader in understanding significant financial issues; 2) provide an overview of the County’s financial activities; 3) identify changes in the County’s financial position; and 4) identify individual fund issues or concerns. We encourage our readers to consider the information presented within this Management’s discussion and analysis in conjunction with the basic financial statements. Financial Highlights

Key financial highlights for FY14 are as follows: The County’s total net position increased by $1,052,868. At the end of the current year, the County’s governmental funds reported an ending fund balance of $25,899,291, an decrease of $2,901,910 from the prior year fund balance. Due to the decline in special purpose local option sales tax, the general fund had advanced funds to complete projects in progress and sales tax receipts paid back the general fund by March 2014. The total unassigned governmental fund balance is a positive amount of $2,290,541. At the end of the current year, unassigned fund balance for the General Fund was $2,290,541 which represents 4.61 percent of total General Fund expenditures. Net position for business-type activities increased from $32,161,838 to $32,937,985, an increase of $776,147. Overview of the Financial Statements

This annual report consists of a series of financial statements. These statements are organized so the reader can understand the County as a financial whole or as an entire operating entity. The statements also provide a detailed look at specific financial conditions. The County’s basic financial statements are comprised of three components: the County-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The Government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business reporting. All governmental and business- type activities are combined to arrive at a total for the primary government.

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Statement of Net Position and the Statement of Activities The statement of net position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. The statement of activities presents information showing how the County’s net position changed during the current year. These statements are prepared using the accrual basis of accounting similar to the accounting method used by private sector companies. This basis of accounting takes into consideration all of the current year’s revenues and expenses, regardless of when the cash is received or paid.

The change in net position is important because it tells the reader whether, for the County as a whole, the financial position of the County has improved or diminished. However, in evaluating the overall position of the County, non-financial information such as changes in the County’s tax base and the condition of the County’s capital assets will also need to be evaluated. In the statement of net position and the statement of activities, the County is divided into three kinds of activities: Governmental Activities—Most of the County’s programs and services are reported here, including general government, judicial, public safety, public works, health, human services, culture and recreation and housing and development. These services are funded primarily by taxes and intergovernmental revenues, including federal and state grants and other shared revenues. Business-Type Activities—These services are provided on a charge for goods or services basis to recover all or most of the cost of the services provided. The County’s Water and Sewer, Landfill, and Special Lighting Districts operations are reported here. Component Units—The County’s financial statements include financial data of the Valdosta-Lowndes Development Authority, the Lowndes County Board of Health and the Valdosta-Lowndes County Parks and Recreation Authority. These component units are described in the notes to the financial statements. The component units are separate and may buy; sell, lease, and mortgage property in their own name and can sue or be sued in their own name. Each of these entities issue separate annual audit reports. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objects. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Fund financial statements provide detailed information about the County’s major funds. Based on the restriction on the use of moneys, the County has established many funds that account for the multitude of services provided to our residents. The County’s major governmental funds are the General Fund, the Capital Projects Special Purpose Sales Tax VI Fund and the Capital Projects Special Purpose Sales Tax VII Fund.

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Governmental Funds—Governmental funds are used to account for essentially the same functions reported as governmental activities on the government-wide financial statements. Most of the County’s basic services are reported in these funds that focus on how money flows into and out of the funds and the year end balances available for spending. These funds are reported on the modified accrual basis of accounting that measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the County’s general government operations and the basic services being provided, along with the financial resources available. Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities on the government-wide financial statements. By doing so, readers may better understand the long-term effect of the government’s short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains a multitude of individual governmental funds. Information is presented separately on the governmental fund balance sheet and on the governmental fund statement of revenues, expenditures, and changes in fund balances for the major funds, which were identified earlier. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary Funds— Enterprise funds are used to report the same functions presented as business-type activities on the government-wide financial statements. The County uses enterprise funds to account for the Water and Sewer, Landfill, and Special Tax Lighting District services. Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the County on a cost- reimbursement basis. The County used internal service funds to account for Equipment Operations, Health Insurance, Workers’ Compensation and Fleet Management. Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the County. Fiduciary funds are not reflected on the government-wide financial statements because the resources from those funds are not available to support the County’s programs. The accounting method used for fiduciary funds is much like that used for the proprietary funds. Notes to the Financial Statements—The notes provide additional information that is essential to a full understanding of the data provided on the government-wide and fund financial statements. Other Information—In addition to the basic financial statements and accompanying notes, this report also presents combining and individual fund statements and schedules.

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Government-Wide Financial Analysis The following table reflects the condensed Statement of Net Position:

Total Percentage

Change

2013 2014 2013 2014 2013 2014 2013-2014 Assets Current and other assets 36.44$ 33.64$ 3.80$ 4.47$ 40.24$ 38.11$ -5.29% Capital assets, net 109.02 106.02 39.86 38.78 148.88 144.80 -2.74%

Total Assets 145.46 139.66 43.66 43.25 189.12 182.91 -3.28%

Deferred Outflows of Resources 0.37 0.35 0.55 0.52 0.92 0.87 0.00%

Liabilities Current and other liabilities 16.54 19.57 1.75 1.80 18.29 21.37 16.84% Long-term liabilities 18.06 8.92 10.28 9.01 28.34 17.93 -36.73% Total Liabilities 34.60 28.49 12.03 10.81 46.63 39.30 -15.72%

Deferred Inflows of Resources 0.03 0.04 0.02 0.03 0.05 0.07 0.00%

Net Position Net investment in capital assets 91.13 96.67 30.58 30.08 121.71 126.75 4.14% Restricted 7.43 10.22 - - 7.43 10.22 37.55% Unrestricted 12.64 4.59 1.58 2.85 14.22 7.44 47.68% Total Net Position 111.20$ 111.48$ 32.16$ 32.93$ 143.36$ 144.41$ 0.73%

Total

Lowndes County's Net Position (in millions of dollars)

Governmental Activities

Business-Type Activities

As noted earlier, the County’s net position, when reviewed over time, may serve as a useful indicator of the County’s financial position. In the case of the County, assets exceeded liabilities by $144,415,967. Net position was $111,477,982 in governmental activities and $32,937,985 in business-type activities as of June 30, 2014. The largest portion of the County’s net position (87.85%) reflects its investment in capital assets e.g., land and improvements, buildings and building improvements, improvements other than buildings, machinery and equipment, vehicles, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, 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. Another 5.34% of net position is restricted for use on capital projects.

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 An additional portion of the County’s net position (1.74 %) represents resources that are subject to other restrictions on how they can be used. Unrestricted net position represents 5.08% of net position. The next table shows the changes in net position for the year ending June 30, 2014 and 2013.

Total Percentage

Change

2013 2014 2013 2014 2013 2014 2013-2014 Revenues Program Revenues Charges for services 9.06$ 8.83$ 5.92$ 5.99$ 14.98$ 14.82$ (1.07) % Operating grants and contributions 1.95 1.68 - - 1.95 1.68 (13.85) % Capital grants and contributions 1.86 1.13 - - 1.86 1.13 (39.25) %

Total Program Revenues 12.87 11.64 5.92 5.99 18.79 17.63 (6.17) %

General Revenues Property taxes 28.02 29.33 - - 28.02 29.33 4.68 % Alcoholic beverage taxes 0.49 0.51 - - 0.49 0.51 4.08 % Occupational taxes 0.55 0.60 - - 0.55 0.60 9.09 % Hotel/motel taxes 0.27 0.28 - - 0.27 0.28 100.00 % Franchise taxes 0.12 0.11 - - 0.12 0.11 (8.33) % Insurance premium taxes 2.20 2.29 - - 2.20 2.29 4.09 % Sales taxes 33.75 32.68 - - 33.75 32.68 (3.17) % Public utility taxes 0.66 0.57 - - 0.66 0.57 (13.64) % Miscellaneous 0.84 1.00 - - 0.84 1.00 19.05 % Interest - - 0.01 - 0.01 - (100.00) %

Total General Revenues 66.90 67.37 0.01 - 66.91 67.37 0.69 % Total Revenues 79.77 79.01 5.93 5.99 85.70 85.00 (0.82) %

Changes in Lowndes County's Net Position

Total

(in millions of dollars)

Governmental Activities

Business-Type Activities

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014

Total Percentage

Change

2013 2014 2013 2014 2013 2014 2013-2014 Expenses Governmental Activities: General Government Legislative and executive 12.69$ 13.36$ -$ -$ 12.69$ 13.36$ 5.28 % Judicial 5.20 5.68 - - 5.20 5.68 9.23 % Public safety 27.85 28.73 - - 27.85 28.73 3.16 % Public works 26.62 20.19 - - 26.62 20.19 (24.15) % Health and welfare 1.36 1.57 - - 1.36 1.57 15.44 % Culture and recreation 4.57 4.77 - - 4.57 4.77 4.38 % Housing and development 4.38 4.20 - - 4.38 4.20 (4.11) % Interest on long-term debt 0.88 0.60 - - 0.88 0.60 (31.82) % Business-type Activities: Water and sewer - - 4.79 4.47 4.79 4.47 (6.68) % Landfill - - 0.05 0.07 0.05 0.07 40.00 % Special tax lighting district - - 0.29 0.30 0.29 0.30 3.45 % Sanitation fund - - 0.66 - 0.66 - (100.00) %

Total Expenses 83.55 79.10 5.79 4.84 89.34 83.94 (6.04) % Revenue Over (Under) Expenses (3.78) (0.09) 0.14 1.15 (3.64) 1.06 (129.12) Transfers 0.33 0.37 (0.33) (0.37) - - - %

Increase (Decrease) in Net Position (3.45) 0.28 (0.19) 0.78 (3.64) 1.06 (129.12) % Net Position, Beginning 114.65 111.20 32.35 32.16 147.00 143.36 (2.48) % Net Position, Ending 111.20$ 111.48$ 32.16$ 32.94$ 143.36$ 144.42$ 0.74 %

Activities Activities Total

Changes in Lowndes County's Net Position (in millions of dollars)

Governmental Business-Type

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Government Activities

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Governmental Activities Revenues 2013 2014

The largest portion of the County’s program revenue is from charges for services which accounted for $8,831,747 or 76% of total program revenues. These charges include licenses and permits, fines and forfeitures related to judicial activity, fees for real estate transfers, fees associated with the collection of property taxes and fees charged through various County governmental departments. Sales tax revenues are the major contributor to general revenues and account for $32,675,107 or 48% of total general revenues. Another major component was property taxes, which accounted for $29,334,593 or 44% of total general revenues. Property taxes showed modest growth. Sales taxes were down due in part to changes in items being taxed and the local economy still not showing consistent growth.

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LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Government Activities – Continued The following chart compares governmental activities expenses for the year ending June 30, 2013 and 2014. Expenses went up due to inflation and rises in health care cost.

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Legislative & executive

Judicial Public safety Public works Health & welfare

Culture & recreation

Housing & development

Governmental Activities Expenses 2013 2014

The following table provides the total cost of services and the net cost of services for the governmental activities. The statement of activities reflects the cost of program services and the charges for services, and sales, grants, and contributions offsetting these services. The net cost of services identifies the cost of those services supported by tax revenues and unrestricted intergovernmental revenues.

Percentage Percentage Change Change

Function 2013 2014 2013-2014 2013 2014 2013-2014

General Government Legislative and executive 12.69$ 13.36$ 5.28 % 11.53$ 12.10$ 4.93 % Judicial 5.20 5.68 9.23 % 0.22 0.96 334.91 % Public safety 27.85 28.73 3.16 % 23.73 24.55 3.45 % Public works 26.62 20.19 (24.15) % 24.70 18.99 (23.12) % Health and welfare 1.36 1.57 15.44 % 0.85 1.51 77.99 % Culture and recreation 4.57 4.77 4.38 % 4.58 4.78 4.32 % Housing and development 4.38 4.20 (4.11) % 4.20 3.98 (5.23) % Interest on long-term debt 0.88 0.60 (31.82) % 0.87 0.60 (30.47) %

Total 83.55$ 79.10$ (5.33) % 70.68$ 67.47$ (4.54) %

Net Cost of Lowndes County's Governmental Activities (in millions of dollars)

Total Cost of Services

Net Cost of Services

19

LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Business-Type Activities The net position for business-type activities increased $776,147 during the year ending June 30, 2014. The major source of revenue was from charges for services for water and sewer services which amounted to $4,740,100. Financial Analysis of County Funds The County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the County’s net resources available for spending at the end of the year. As of June 30, 2014, the County’s governmental funds reported a combined ending fund balance of $25,899,291 a decrease of $2,901,910. The County had $2,290,541 of unassigned fund balance which is available for spending at the County’s discretion. The remainder of the fund balance is reserved to indicate that it is not available for new spending because it has already been committed to a variety of other restricted or assigned purposes ($23,608,750). Major Funds: The General Fund is the primary operating fund of the County. At the end of June 30, 2014, the unassigned fund balance was $2,290,541 while total fund balance was $14,981,911. 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 4.61% to total General Fund expenditures, while the total fund balance represents 38.25% of that same amount. The Capital Projects SPLOST VI Fund expended $13,653,055 in appropriations to other governments, capital improvements and debt service funds and received $10,464,663 in sales tax and investment income. The expenditures exceeded revenue resulting in a decrease in the fund balance from $3,188,392 to a fund balance of $2,551,971. This SPLOST ended in December 2014. The Capital Projects SPLOST VII Fund which began on January 1, 2014 expended $7,574,366 in appropriations to other governments, and capital improvements and received $10,232,634 in sales tax and investment income. The revenue exceeded expenditures resulting in an ending fund balance of $2,658,268.

20

LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Enterprise Funds The County’s enterprise funds provide the same type of information found in the government-wide financial statements, but in more detail. Total Net Position of the Water & Sewer Fund at June 30, 2014, was $32,667,890. Total Net Position increased by $630,282. The Landfill Fund oversees the post-closure expenses of a closed landfill. Solid waste host fees provide revenue to cover these expenses which have been accrued to cover the anticipated cost of monitoring the landfill in accordance with environmental regulations. The Special Tax Lighting District oversees special districts that are accessed taxes to cover the cost of providing lighting to the district. Budgetary Highlights By State statute, the Board of County Commissioners adopts the annual operating budget for the County on or before the first day of the fiscal year. For the General Fund and other governmental funds, changes from the original to the final budget created a net decline in fund balance. A very large increase in health claims resulted in much higher health care cost than was anticipated in the original budget. In an effort to cover this rise in cost with a balanced budget required budgeting funds from the fund balance. The County still maintained its fund balance reserves in accordance with the financial policies and has raised the millage rate in the next year to help avoid any continued use of fund balance. Capital Assets The County’s capital assets for governmental and business-type activities as of June 30, 2014, were $144,805,887 (net of accumulated depreciation). This investment in capital assets includes land and improvements, buildings and improvements, improvements other than buildings, machinery and equipment, vehicles, and infrastructure. Major capital asset events during FY14 included continued improvements to roads and public safety equipment. Note 8 (Capital Assets) provides additional information about capital asset activity during FY14.

21

LOWNDES COUNTY, GEORGIA Management’s Discussion and Analysis Required Supplemental Information For the Year Ended June 30, 2014 Debt The County backed revenue bonds issued for the Valdosta-Lowndes Development Authority during FY09 to provide funding for economic development projects. The bonds are being paid from the 1 mil of property taxes access for the Authority. Standards & Poor’s Corporation has assigned an underlying rating of AA- to these new bonds. However, an AAA credit rating was listed on the bonds since insurance was purchased from Financial Security Assurance, Inc. guaranteeing bond payments. The County provided backing for bonds issued by the Hospital Authority of Valdosta and Lowndes County, Georgia during FY12 in the amount of $148,280,000. Additional information can be found in Note 23 for contingent liabilities. In addition to the bonded debt, the County’s long-term obligations include compensated absences and closure/postclosure liability. Additional information on the County’s long-term debt can be found in Notes 14 to 18 of this report. Economic Factors Property tax revenue grew by .51% over the prior year and has averaged 4.76 % growth over the last ten years. This has allowed the County to maintain current millage rates and stay ahead of rising cost through FY13. The local option sales tax revenues declined 3.20% due to vehicles becoming sales tax exempt for all of FY14. The County maintained a calendar year annual average of 8.5% for unemployment compared to the state average of 9.2%. Requests for Information This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Lowndes County Finance Director, 300 North Patterson Street, Valdosta, GA 31601.

22

BASIC FINANCIAL STATEMENTS

LOWNDES COUNTY, GEORGIA STATEMENT OF NET POSITION June 30, 2014

Total Governmental Business-Type Primary

Activities Activities Government ASSETS Equity in pooled cash and cash equivalents 15,527,128$ 3,385,316$ 18,912,444$ Cash and cash equivalents in segregated accounts 10,099,477 30,901 10,130,378 Certificate of deposit 388,708 - 388,708 Receivables (net of allowance for doubtful accounts): Taxes 1,483,684 - 1,483,684 Accounts 2,198,877 867,142 3,066,019 Special assessments 14,100 - 14,100 Sales tax 2,766,038 - 2,766,038 Internal balances 58,673 (58,673) - Due from other governments 135,238 - 135,238 Materials and supplies inventory 352,420 - 352,420 Prepaid items 115,914 - 115,914 Restricted cash and cash investments - 190,051 190,051 Internal advances 500,000 (500,000) - Nondepreciable capital assets 5,026,168 2,771,606 7,797,774 Depreciable capital assets, net 100,998,630 36,009,484 137,008,114

TOTAL ASSETS 139,665,055$ 42,695,827$ 182,360,882$

DEFERRED OUTFLOWS OF RESOURCES

Deferred charge on refunding 348,480$ 521,765$ 870,245$

TOTAL DEFERRED OUTFLOWS OF RESOURCES 348,480$ 521,765$ 870,245$

Primary Government

The accompanying notes are an integral part of these financial statements.

23

Valdosta- Valdosta- Lowndes Lowndes Lowndes County

County Board Development Parks & Recreation of Health Authority Authority

-$ -$ 636,613$ 1,784,422 2,176,290 1,349,904

- - -

- - 353,186 185,665 - -

- - - - - - - - -

1,138,180 - - - - - - 8,183 55,603 - 2,984,264 - - - - - 17,323,798 3,560,152

500,452 4,197,087 4,777,680

3,608,719$ 26,689,622$ 10,733,138$

-$ -$ -$

-$ -$ -$

Component Units

24

LOWNDES COUNTY, GEORGIA STATEMENT OF NET POSITION - CONTINUED June 30, 2014

Total Governmental Business-Type Primary

Activities Activities Government LIABILITIES CURRENT LIABILITIES: Accounts payable 1,659,852$ 224,096$ 1,883,948$ Estimated health claims payable 338,072 - 338,072 Accrued wages 696,138 21,610 717,748 Accrued expenses 1,943,055 17,643 1,960,698 Due to other governments 2,040,073 - 2,040,073 Payable from restricted assets: Customer deposits - 177,050 177,050 NONCURRENT LIABILITIES: Due within one year: Compensated absences payable 686,841 19,630 706,470 Capital lease obligations 856,400 - 856,400 Bonds payable - 685,000 685,000 Notes payable - - - Unamortized bond premium 40,714 20,479 61,193 Landfill postclosure cost - 72,884 72,884 Due in more than one year Compensated absences payable 539,660 15,423 555,084 Capital lease obligations 8,381,900 - 8,381,900 Bonds payable - 7,935,000 7,935,000 Notes payable - - - Unamortized bond premium 424,599 256,579 681,178 Landfill postclosure cost - 801,727 801,727 Net pension obligation liability 92,707 - 92,707 Net other postemployment benefits 10,798,505 - 10,798,505

TOTAL LIABILITIES 28,498,516$ 10,247,121$ 38,745,637$

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 37,037 32,486 69,523

COMBINED LIABILITIES AND DEFERRED

INFLOWS OF RESOURCES 28,535,553$ 10,279,607$ 38,815,160$

NET POSITION Net investment in capital assets 96,669,665 30,405,797 127,075,462 Restricted for: Jail operations 567,238 - 567,238 Tourism 71,688 - 71,688 Drug enforcement 1,519,225 - 1,519,225 Law library 325,807 - 325,807 Victim assistance 23,236 - 23,236 Public health programs - - - Debt services - - - Capital projects 7,709,241 - 7,709,241 Unrestricted 4,591,882 2,532,188 7,124,070

TOTAL NET POSITION 111,477,982$ 32,937,985$ 144,415,967$ The accompanying notes are an integral part of these financial statements.

25

Valdosta- Valdosta- Lowndes Lowndes Lowndes County

County Board Development Parks & Recreation of Health Authority Authority

-$ 46,451$ 97,617$ - - - - - - 984 362,547 96,939

567,474 - -

- - -

324,423 - 31,818 - - 100,503 - 1,230,000 - - - 24,899 - - - - - -

244,741 - 48,702 - 19,155

- 11,630,000 - - - -

- - - - - - - - -

1,137,622$ 13,268,998$ 419,633$

- - 20,839

1,137,622$ 13,268,998$ 440,472$

500,452 10,723,998 8,193,275

- - - - - - - - - - - - - - -

1,525,087 - - - 921,151 - - - -

445,558 1,775,475 2,099,391

2,471,097$ 13,420,624$ 10,292,666$

26

LOWNDES COUNTY, GEORGIA STATEMENT OF ACTIVITIES For The Year Ended June 30, 2014

Operating Grants, Capital Grants, Charges for Contributions, Contributions,

FUNCTION/PROGRAM Expenses Services and Interest and Interest GOVERNMENTAL ACTIVITIES General Government Legislative and Executive 13,347,150$ 1,144,930$ 103,247$ -$ Judicial 5,682,778 4,094,919 631,057 - Public Safety 28,733,508 3,512,034 673,699 - Public Works 20,187,909 68,522 - 1,129,912 Health and Welfare 1,574,191 11,342 49,897 - Culture and Recreation 4,777,631 - - - Housing and Development 4,198,718 - 218,180 - Interest on Long-term Debt 604,908 - - -

TOTAL GOVERNMENTAL ACTIVITIES 79,106,793 8,831,747 1,676,080 1,129,912

BUSINESS-TYPE ACTIVITIES Water and Sewer 4,455,130 5,353,852 - - Landfill 68,913 361,087 - - Special Tax Lighting District 295,855 253,546 - -

TOTAL BUSINESS-TYPE ACTIVITIES 4,819,898 5,968,485 - -

TOTAL PRIMARY GOVERNMENT 83,926,691$ 14,800,232$ 1,676,080$ 1,129,912$

COMPONENT UNITS Lowndes County Board of Health 12,424,320$ 1,279,380$ 11,167,888$ -$ Valdosta-Lowndes Development Authority 2,057,305 - 13,820 - Valdosta-Lowndes County Parks & Recreation Authority 4,045,392 479,605 11,655 124,116

TOTAL COMPONENT UNITS 18,527,017$ 1,758,985$ 11,193,363$ 124,116$

GENERAL REVENUES Property Taxes Levied for:

General Operating Alcoholic Beverage Taxes Occupational Taxes Hotel/Motel Taxes

Franchise Taxes Insurance Premium Taxes Sales Taxes Public Utility Taxes Miscellaneous Income Gain on disposal of capital assets Investment Income

TOTAL GENERAL REVENUES

EXCESS (DEFICIT) BEFORE TRANSFERS TRANSFERS IN (OUT)

CHANGES IN NET POSITION

NET POSITION, RESTATED

NET POSITION, END OF YEAR

Program Revenues

The accompanying notes are an integral part of these financial statements.

27

Valdosta- Valdosta- Lowndes Lowndes Lowndes County

Governmental Business-Type County Board County Industrial Parks & Recreation Activities Activities Total of Health Authority Authority

(12,098,973)$ -$ (12,098,973)$ -$ -$ -$ (956,802) - (956,802) - - -

(24,547,775) - (24,547,775) - - - (18,989,475) - (18,989,475) - - -

(1,512,952) - (1,512,952) - - - (4,777,631) - (4,777,631) - - - (3,980,538) - (3,980,538) - - -

(604,908) - (604,908) - - -

(67,469,054) - (67,469,054) - - -

- 898,722 898,722 - - - - 292,174 292,174 - - - - (42,309) (42,309) - - -

- 1,148,587 1,148,587 - - -

(67,469,054)$ 1,148,587$ (66,320,467)$ -$ -$ -$

-$ -$ -$ 22,948$ -$ -$ - - - - (2,043,485) - - - - - - (3,430,016)

-$ -$ -$ 22,948$ (2,043,485)$ (3,430,016)$

29,334,593 - 29,334,593 - 2,980,964 3,679,064 511,272 - 511,272 - - - 603,078 - 603,078 - - - 281,051 - 281,051 - - - 114,398 - 114,398 - - -

2,285,406 - 2,285,406 - - - 32,675,107 - 32,675,107 - - -

565,454 - 565,454 - - - 1,002,806 - 1,002,806 - - 39,555

- - - - 3,000 - - 170 170 - 4,261 -

67,373,165 170 67,373,335 - 2,988,225 3,718,619

(95,889) 1,148,757 1,052,868 22,948 944,740 288,603 372,610 (372,610) - - - -

276,721 776,147 1,052,868 22,948 944,740 288,603

111,201,261 32,161,838 143,363,099 2,448,149 12,475,884 10,004,063

111,477,982$ 32,937,985$ 144,415,967$ 2,471,097$ 13,420,624$ 10,292,666$

Primary Government Component Units Net (Expense) Revenue and Changes in Net Position

28

LOWNDES COUNTY, GEORGIA GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2014

Special Purpose Special Purpose Other Local Option Local Option Governmental

General Sales Tax VI Sales Tax VII Funds Total ASSETS Equity in pooled cash and cash equivalents 11,857,625$ -$ -$ 2,614,327$ 14,471,952$ Cash and cash equivalents in segregated accounts 15,118 2,551,971 4,597,430 2,932,475 10,096,994 Certificate of deposit - - - 388,708 388,708 Receivables (net of allowance for doubtful accounts) Taxes 1,483,684 - - - 1,483,684 Accounts 1,502,818 - - 662,254 2,165,072 Special assessments 14,100 - - - 14,100 Sales Tax 1,010,986 - 1,755,053 - 2,766,039 Due from other governments - - - 135,238 135,238 Interfund receivable 2,600,319 - - - 2,600,319 Internal advances 500,000 - - - 500,000

TOTAL ASSETS 18,984,650$ 2,551,971$ 6,352,483$ 6,733,002$ 34,622,106$

Capital Projects

The accompanying notes are an integral part of these financial statements.

29

LOWNDES COUNTY, GEORGIA GOVERNMENTAL FUNDS BALANCE SHEET - CONTINUED June 30, 2014

Special Purpose Special Purpose Other Local Option Local Option Governmental

General Sales Tax VI Sales Tax VII Funds Total LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 661,975$ -$ 1,359$ 756,906$ 1,420,240$ Accrued wages 594,036 - - 91,995 686,031 Accrued liabilities 1,415,967 - - - 1,415,967 Due to other governments - - 2,040,073 - 2,040,073 Interfund payable - - 1,652,783 169,338 1,822,121

TOTAL LIABILITIES 2,671,978 - 3,694,215 1,018,239 7,384,432

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 1,330,761 - - 7,622 1,338,383

TOTAL DEFERRED INFLOWS OF RESOURCES 1,330,761 - - 7,622 1,338,383

FUND BALANCES Restricted for: Jail operations - - - 572,588 572,588 Tourism - - - 71,688 71,688 Drug enforcement - - - 973,562 973,562 Drug education and treatment - - - 34,322 34,322 Law library - - - 325,808 325,808 Victim assistance - - - 27,397 27,397 911 emergency telephone - - - 86,662 86,662 Capital projects - 2,551,971 2,658,268 2,909,020 8,119,259 Assigned for: Loans receivable 500,000 - - - 500,000 Unincorporated services - - - 706,094 706,094 Property tax roll back 12,191,370 - - - 12,191,370 Unassigned reported in: General Fund 2,290,541 - - - 2,290,541 Special Revenue Fund - - - - -

TOTAL FUND BALANCES 14,981,911 2,551,971 2,658,268 5,707,141 25,899,291

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 18,984,650$ 2,551,971$ 6,352,483$ 6,733,002$ 34,622,106$

The accompanying notes are an integral part of these financial statements.

30

LOWNDES COUNTY, GEORGIA RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES June 30, 2014 Total Governmental Funds Balances 25,899,291$

Amounts reported for governmental activities on the statement of net position are different because of the following:

Net Pension Obligation Pension liabilities resulting from contributions less than the annual required contribution (92,707)

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 106,024,798

Internal service funds are used by management to charge the cost of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the government-wide statement of net position. Net position adjusted for: 310,903 Capital assets less accumulated depreciation (637,881) Compensated absences payable 15,979 Capital lease payable 53,300

(257,699) Revenue are not available to pay for current period expenditures and, therefore, are not reported in the funds. Deferred tax revenue 1,301,346

Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds: Accrued interest (16,908) Compensated absences payable (1,226,501) Unamortized bond premium (465,313) Deferred charge bond refund 348,480 Net other postemployment benefits (10,798,505) Capital leases payable (9,238,300)

Net Position of Governmental Activities 111,477,982$

The accompanying notes are an integral part of these financial statements.

31

LOWNDES COUNTY, GEORGIA GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ended June 30, 2014

Special Purpose Special Purpose Other Local Option Local Option Governmental

General Sales Tax VI Sales Tax VII Funds Total REVENUES: Taxes 41,888,302$ 10,451,573$ 10,232,346$ 3,795,205$ 66,367,426$ Licenses and permits 4,229 - - 126,578 130,807 Intergovernmental revenues 466,359 - - 2,291,444 2,757,803 Charges for services 3,582,276 - - 2,019,070 5,601,346 Fines and forfeitures 1,757,452 - - 1,342,143 3,099,595 Investment income 16,522 13,090 288 18,291 48,191 Miscellaneous 81,747 - - 525,536 607,283

TOTAL REVENUES 47,796,887$ 10,464,663$ 10,232,634$ 10,118,267$ 78,612,451$

EXPENDITURES Current General Government Legislative and executive 10,184,804 - - 132,749 10,317,553 Judicial 5,451,261 - - 815,986 6,267,247 Public safety 19,921,976 - - 6,702,213 26,624,189 Public works 4,706,795 796,554 144,568 507,898 6,155,815 Health and welfare 690,328 - - 180,000 870,328 Culture and recreation 4,681,077 - - - 4,681,077 Housing and development 2,947,327 - - 1,244,535 4,191,862 Intergovernmental - 4,591,376 5,974,667 753,767 11,319,810 Capital outlay - - 1,373,741 768,211 2,141,952 Debt Service Principal retirement 810,000 7,900,000 - - 8,710,000 Interest 242,013 365,125 - - 607,138

TOTAL EXPENDITURES 49,635,581 13,653,055 7,492,976 11,105,359 81,886,971

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,838,694) (3,188,392) 2,739,658 (987,092) (3,274,520)

OTHER FINANCING SOURCES (USES): Transfers In 889,000 - - 998,116 1,887,116

Transfers Out (829,879) - (81,390) (603,237) (1,514,506)

TOTAL OTHER FINANCING SOURCES (USES) 59,121 - (81,390) 394,879 372,610

NET CHANGES IN FUND BALANCE (1,779,573) (3,188,392) 2,658,268 (592,213) (2,901,910) FUND BALANCES AT BEGINNING OF YEAR 16,761,484 5,740,363 - 6,299,354 28,801,201

FUND BALANCES AT END OF YEAR 14,981,911$ 2,551,971$ 2,658,268$ 5,707,141$ 25,899,291$

Capital Projects

The accompanying notes are an integral part of these financial statements.

32

LOWNDES COUNTY, GEORGIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended June 30, 2014 Net Change in Fund Balances - Total Governmental Funds (2,901,910)$

Amounts reported for governmental activities on the statement of activities are different because of the following:

Net Pension Obligation Change in pension liability resulting from contributions more than the annual required contribution 41,759

Internal service funds change in net position: Internal service funds change in net position less depreciation and compensated absences (305,538) Depreciation (416,290) Compensated absences (1,846)

(723,674) Governmental funds report capital outlays as expenditures. However, on the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current year: Capital outlay - depreciable capital assets 1,066,334 Capital outlay - nondepreciable capital assets 2,141,952 Depreciation (5,785,419)

(2,577,133) Revenues on the statement of activities that do no provide current financial resources are not reported as revenues in governmental funds: Property taxes 3,238 Assessments (306)

2,932

Some expenses reported on the statement of activities do not require the use of

current financial resources and, therefore, are not reported as expenditures in

governmental funds:

Other post employment benefits (2,647,808) Compensated absences (1,042)

(2,648,850)

Accrual of interest on bonds payable is not an expenditures in the governmental funds, but

is accrued on the statement of activities.

Accrued interest expense 2,228

2,228 Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities on the statement of activities. Bond payments 7,900,000 Amortization of deferred charge on bond refunding (24,157) Amortization of bond premium 395,526 Capital lease payments 810,000

9,081,369

Changes in Net Position of Governmental Activities 276,721$ The accompanying notes are an integral part of these financial statements.

33

LOWNDES COUNTY, GEORGIA PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2014 Governmental

Activities Other

Water and Enterprise Internal Sewer Funds Total Service Funds

ASSETS CURRENT ASSETS Equity in pooled cash and cash equivalents 2,377,360$ 1,007,956$ 3,385,316$ 1,055,173$ Cash and cash equivalents in segregated accounts 30,901 - 30,901 - Receivables (net of allowance for doubtful accounts): Accounts 848,398 18,744 867,142 36,290 Prepaid expense - - - 115,914 Inventory - - - 352,420 Restricted assets Customer deposit account 190,051 - 190,051 -

TOTAL CURRENT ASSETS 3,446,710 1,026,700 4,473,410 1,559,797

NONCURRENT ASSETS Capital Assets Land 2,486,904 203,639 2,690,543 - Construction in progress 81,063 - 81,063 - Depreciable capital assets, net 36,009,484 - 36,009,484 637,882

TOTAL NONCURRENT ASSETS 38,577,451 203,639 38,781,090 637,882

TOTAL ASSETS 42,024,161 1,230,339 43,254,500 2,197,679

DEFERRED OUTFLOWS OF RESOURCES

Deferred charge on refunding 521,765 - 521,765 -

TOTAL DEFERRED OUTFLOWS OF RESOURCES 521,765 - 521,765 -

Business-Type Activities - Enterprise Funds

The accompanying notes are an integral part of these financial statements.

34

LOWNDES COUNTY, GEORGIA PROPRIETARY FUNDS STATEMENT OF NET POSITION - CONTINUED June 30, 2014

Governmental Activities

Other Water and Enterprise Internal

Sewer Funds Total Service Funds LIABILITIES CURRENT LIABILITIES Accounts payable 197,136 26,960 224,096 239,613 Accrued wages 21,610 - 21,610 858,179 Accrued interest payable 17,643 - 17,643 179 Interfund payable - 58,673 58,673 719,525 Current portion of compensated absences payable 19,630 - 19,630 8,948 Current portion of capital lease obligations - - - 16,400 Current portion of bonds payable 685,000 - 685,000 - Current portion of unamortized premium 20,479 - 20,479 - Current portion of interfund advance 500,000 - 500,000 - Current portion of landfill postclosure cost - 72,884 72,884 - Payable from restricted assets: Customer deposits 177,050 - 177,050 -

TOTAL CURRENT LIABILITIES 1,638,548 158,517 1,797,065 1,842,844

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 32,486 - 32,486 -

TOTAL DEFERRED INFLOWS OF RESOURCES 32,486 - 32,486 -

LONG-TERM LIABILITIES Compensated absences 15,423 - 15,423 7,031 Capital lease obligations - - - 36,900 Unamortized premium 256,579 - 256,579 - Bonds payable 7,935,000 - 7,935,000 - Landfill postclosure cost - 801,727 801,727 -

TOTAL LONG-TERM LIABILITIES 8,207,002 801,727 9,008,729 43,931

TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 9,878,036 960,244 10,838,280 1,886,775

NET POSITION Net investment in capital assets 30,202,158 203,639 30,405,797 584,582 Unrestricted 2,465,732 66,456 2,532,188 (273,678)

TOTAL NET POSITION 32,667,890$ 270,095$ 32,937,985$ 310,904$

Business-Type Activities - Enterprise Funds

The accompanying notes are an integral part of these financial statements.

35

LOWNDES COUNTY, GEORGIA PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION For The Year Ended June 30, 2014

Governmental Activities

Other Water and Enterprise Internal

Sewer Funds Total Service Funds OPERATING REVENUES Charges for services 4,740,100$ 253,546$ 4,993,646$ 9,965,574$ Penalties 103,632 - 103,632 - Other income 103,548 361,087 464,635 - Connection fees 406,572 - 406,572 -

TOTAL OPERATING REVENUES 5,353,852 614,633 5,968,485 9,965,574

OPERATING EXPENSES Personal services 605,114 - 605,114 286,862 Payroll taxes 43,504 - 43,504 20,319 Fringe benefits 294,647 - 294,647 126,586 Contractual services 1,359,164 364,768 1,723,932 51,463 Insurance and bond 902 - 902 6,847,927 Materials and supplies 545,322 - 545,322 2,937,081 Amortization 9,043 - 9,043 - Depreciation 1,356,001 - 1,356,001 416,290

TOTAL OPERATING EXPENSES 4,213,697 364,768 4,578,465 10,686,528

OPERATING INCOME (LOSS) 1,140,155 249,865 1,390,020 (720,954)

NON-OPERATING REVENUES (EXPENSES) Interest revenue 170 - 170 21 Interest expense (241,433) - (241,433) (2,740)

TOTAL NON-OPERATING REVENUES (EXPENSES) (241,263) - (241,263) (2,719)

INCOME (LOSS) BEFORE TRANSFERS 898,892 249,865 1,148,757 (723,673)

TRANSFERS IN 81,390 - 81,390 - TRANSFERS OUT (350,000) (104,000) (454,000) -

CHANGE IN NET POSITION 630,282 145,865 776,147 (723,673) NET POSITION, BEGINNING OF YEAR 32,037,608 124,230 32,161,838 1,034,577

NET POSITION AT END OF YEAR 32,667,890$ 270,095$ 32,937,985$ 310,904$

Business-Type Activities - Enterprise Funds

The accompanying notes are an integral part of these financial statements.

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LOWNDES COUNTY, GEORGIA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For The Year Ended June 30, 2014

Governmental Activities

Other Water and Enterprise Internal

Sewer Funds Total Service Funds Increase (Decrease) in Cash and Cash Equivalents Cash Flows From Operating Activities Cash received from customers 5,346,737$ 253,005$ 5,599,742$ -$ Cash received from other income 103,548 404,907 508,455 - Cash received from interfund transactions - 42,102 42,102 - Cash received from other funds for services - - - 10,236,507 Cash payments for personal services (603,215) - (603,215) (283,662) Cash payments for payroll taxes (43,504) - (43,504) (20,319) Cash payments for fringe benefits (294,647) - (294,647) (126,586) Cash payments for contractual services (1,384,999) (421,835) (1,806,834) (51,463) Cash payments for insurance and bond (902) - (902) (7,185,606) Cash payments for materials and supplies (545,322) - (545,322) (2,592,271)

Net Cash Provided by (Used for) Operating Activities 2,577,696 278,179 2,855,875 (23,400)

Cash Flows From Noncapital Financing Activities Cash received from transfer-in 81,390 - 81,390 - Cash payments from transfer-out (350,000) (104,000) (454,000) -

Net Cash Provided by (Used For) Noncapital Financing Activiti (268,610) (104,000) (372,610) -

Cash Flows From Capital and Related Financing Activities Cash payments for acquisition of capital assets (274,043) - (274,043) - Cash payment on interfund advance (500,000) - (500,000) -

Cash payments for principal on bonds payable (660,000) - (660,000) -

Cash payments for interest on bonds payable (241,612) - (241,612) -

Cash payments for interest on capital leases - - - (19,196)

Net Cash (Used For) Capital and Related Financing Activities (1,675,655) - (1,675,655) (19,196)

Cash Flows From Investing Activities Cash received from interest 170 - 170 21

Net Cash Flows Provided By Investing Activities 170 - 170 21

Net Increase (Decrease) in Cash and Cash Equivalents 633,601 174,179 807,780 (42,575)

Cash and Cash Equivalents at Beginning of Year 1,964,711 833,777 2,798,488 1,097,748

Cash and Cash Equivalents at End of Year 2,598,312$ 1,007,956$ 3,606,268$ 1,055,173$

Equity in pooled cash and cash equivalents 2,377,360$ 1,007,956$ 3,385,316$ 1,055,173$ Cash and cash equivalents in segregated accounts 30,901 - 30,901 - Customer deposit account 190,051 - 190,051 -

Total Cash and Cash Equivalents 2,598,312$ 1,007,956$ 3,606,268$ 1,055,173$

Business-Type Activities - Enterprise Funds

The accompanying notes are an integral part of these financial statements.

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LOWNDES COUNTY, GEORGIA PROPRIETARY FUNDS STATEMENT OF CASH FLOWS - CONTINUED For The Year Ended June 30, 2014

Governmental Activities

Other Water and Enterprise Internal

Sewer Funds Total Service Funds Reconciliation of Operating Income (Loss) To Net Cash Provided by (Used For) Operating Activities Operating Income (Loss) 1,140,155$ 249,865$ 1,390,020$ (720,954)$

Adjustments to Reconcile Operating Income (Loss) To Net Cash Provided by (Used For) Operating Activities Depreciation 1,356,001 - 1,356,001 416,290 Amortization 9,043 - 9,043 - Changes in Assets and Liabilities: Decrease in accounts receivable 91,658 43,281 134,939 270,932 (Increase) in prepaid expense - - - (7,228) Decrease in inventory - - - 64,374 Increase (decrease) in accounts payable (25,835) 1,813 (24,022) (261,768) (Decrease) in customer deposits (3,100) - (3,100) - Increase (decrease) in accrued compensated absences (1,152) - (1,152) 1,846 Increase in interfund payable - 42,102 42,102 258,754 Increase in deferred inflows 7,875 - 7,875 - Increase (decrease) in accrued liabilities 3,051 (58,882) (55,831) (45,646)

Net Cash Provided By (Used For) Operating Activities 2,577,696$ 278,179$ 2,855,875$ (23,400)$

Business-Type Activities - Enterprise Funds

The accompanying notes are an integral part of these financial statements.

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LOWNDES COUNTY, GEORGIA FIDUCIARY FUNDS STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2014

Agency Funds ASSETS Cash and cash equivalents in segregated accounts 3,978,108$ Due from others 42,646

TOTAL ASSETS 4,020,754$

LIABILITIES Due to others 898,793$ Collections held in escrow 3,121,961

TOTAL LIABILITIES 4,020,754

NET POSITION -$

The accompanying notes are an integral part of these financial statements.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 – Summary of Significant Accounting Policies The financial statements of Lowndes County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The County has elected to apply Financial Accounting Standards Board (FASB) Statements and Interpretations issued after November 30, 1989, to its business-type activities and to its enterprise funds provided they do not conflict with or contradict GASB pronouncements. A. The Reporting Entity These financial statements present Lowndes County, Georgia (the primary government) which is governed by an elected six - member board, and discretely presented component units. The component units discussed below are are included in the County’s reporting entity because of the significance of their operational and financial relationships with the County. In conformity with GAAP, as set forth in the Statement of Governmental Accounting Standards No. 14, The Financial Reporting Entity and amended by GASB Statement No. 61, the component units’ financial statements have been included as discretely presented component units. Each discretely presented component unit, on the other hand, is reported separately in the government-wide financial statements from the most recently audited financial statements. The following is a brief review of each component unit addressed in defining the government’s reporting entity. Lowndes County Board of Health The Lowndes County Board of Health is a component unit based on the criteria in GASB Statement No. 14. The Board of health consists of seven members. Two members are appointed by the City of Valdosta. The Lowndes County Board of Commissioners appoints three members and the Chairman of the Board of Commissioners (or their designee) serves as a member. The County Superintendent of Schools is the other member. County appointments or members make up the majority of the Board of Health. The County provides funding annually to the Board of Health. Because the County appoints the majority of the board and because of the financial relationship between the Board of Health and the County, the Board of Health is reported as a discretely presented component unit. A complete set of financial statements for the Lowndes County Board of Health is presented in a separate report and can be obtained from the Lowndes County Board of Health. Valdosta-Lowndes Development Authority The Valdosta-Lowndes Development Authority is a component unit based on a significant financial relationship. The County issued general obligation bonds in the County’s name for the Authority, so they could acquire land and develop it for industry. The County currently provides the funding for the Authority through a dedicated millage of 1 mil that must first pay for all the general obligation debt and then the balance funds the operations of the Authority. The continuation of the accessed millage is determined by the County. The County appoints two of five of the Board members and rotates an appointment with the City of Valdosta of one Board member at the end of their term of office. The City of Valdosta appoints the other two Board members. A complete set of financial statements for the Valdosta-Lowndes Development Authority is presented in a separate report and can be obtained from the Valdosta-Lowndes Development Authority.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies – Continued A. The Reporting Entity - Continued Valdosta-Lowndes County Parks and Recreation Authority The Valdosta-Lowndes County Parks and Recreation Authority is a component unit based on the criteria of fiscal dependence. The County is providing funding for the Authority through a dedicated millage of 1.25 mils that provides the revenues along with fees to cover the cost of operations of the Authority. The continuation of the accessed millage is determined by the County. The County appoints three of seven Board members and rotates an appointment with the City of Valdosta of one Board member at the end of their term of office. The City of Valdosta appoints the other three Board members. A complete set of financial statements for the Valdosta-Lowndes County Parks and Recreation Authority is presented in a separate report and can be obtained from the Valdosta-Lowndes County Parks and Recreation Authority. Joint Ventures The Valdosta-Lowndes County Airport Authority is a joint venture between the City of Valdosta and Lowndes County based on an annual request for funding to both governments. A separate financial report may be obtained from the Valdosta-Lowndes County Airport Authority. The Valdosta-Lowndes County Conference Center and Tourism Authority is a joint venture between the City of Valdosta and Lowndes County based funding provided each year from both governments. A separate financial report may be obtained from the Valdosta-Lowndes County Airport Authority. The Southern Georgia Regional Commission is a joint venture of the members in the South Georgia 10 county area. Further information is provided in Note 21. B. Basis of Presentation The County’s basic financial statements consist of government-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Government-Wide Financial Statements The statement of net position and the statement of activities display information about the County as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. The statements distinguish between those activities of the County that are governmental in nature and those that are considered business-type activities. The statement of net position presents the financial condition of the governmental and business-type activities of the County at year end. The statement of activities presents a comparison between direct expenses and

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies – Continued B. Basis of Presentation - Continued program revenues for each program or function of the County’s governmental activities and business-type activities. Direct expenses are those that are specifically associated with a service, program, or department and, therefore, clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program, and interest earned on grants that is required to be used to support a particular program. Revenues that are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental program or business activity is self- financing or draws from the general revenues of the County. Fund Financial Statements During the year, the County segregates transactions related to certain County functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the County at a more detailed level. The focus of governmental and proprietary fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. Fiduciary funds are reported by type. C. Fund Accounting The County uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds: governmental, proprietary, and fiduciary. Governmental Funds Governmental funds are those through which most governmental functions of the County are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purpose for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the County’s major governmental funds:

General Fund. The General Fund accounts for all financial resources, except those required to be accounted for in another fund. All general operating revenues which are not restricted or designated as to use by outside sources are recorded in the General Fund.

Capital Projects Special Sales Tax VI Fund. The Capital Projects Special Sales Tax VI Fund accounts for the special purpose local option sales tax that was renewed for the sixth time by referendum. The revenue is restricted to the stated purposes of the referendum.

Capital Projects Special Sales Tax VII Fund. The Capital Projects Special Sales Tax VII Fund accounts for the special purpose local option sales tax that was renewed for the seventh time by referendum. The revenue is restricted to the stated purposes of the referendum.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued C. Fund Accounting - Continued The other governmental funds of the County account for grants and other resources whose use is restricted for a particular purpose; the accumulation of resources for, and the payment of debt: and the acquisition or construction of major capital facilities. Proprietary Funds Proprietary Fund reporting focuses on the determination of operating income, changes in net position, financial position, and cash flows. Proprietary funds distinguish operating revenue and expenses from nonoperating items. Operating revenue and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund’s principle ongoing operations. All other revenues and expenses not meeting this definition are considered nonoperating. The County’s enterprise funds may be used to account for any activity for which a fee is charged to external users of goods or services. The following is the County’s major enterprise fund:

Water and Sewer Fund. The fund accounts for fees collected by the County for water and sewer

services. Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to the other departments of the County on a cost-reimbursement basis. The County has four internal service funds:

Equipment Operations - to account for charges to other funds for the maintenance and repair of County equipment.

Health Insurance – to account for charges to other funds and contributions from employees and for the payment of health insurance premiums and benefits.

Fleet Manager – to account for charges to other funds for the use of vehicles and equipment purchased through the fleet manager fund. Workers’ Compensation – to account for charges to other funds for the payment of workers’ compensation premiums and benefits.

Fiduciary Funds Fiduciary fund reporting focuses on net position and changes in net position. The County’s agency funds account for assets held by the County’s Tax Commissioner, Clerk of Court, Sheriff, Magistrate Court, Probate Court and Development Authority for other governments or individuals.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued

D. Measurement Focus Government-Wide Financial Statements The government-wide financial statements are prepared using a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of the County are included on the statement of net position. Government-wide financial statements for the Valdosta-Lowndes Development Authority, the Valdosta-Lowndes Parks and Recreation Authority and the Lowndes County Board of Health are also presented. Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance reflects the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements, therefore, include reconciliation with brief explanations to better identify the relationship between the government-wide statements and the fund financial statements for governmental funds. Like the government-wide financial statements, the enterprise and internal service funds are accounted for using a flow of economic resources measurement focus. All assets and all liabilities associated with the operation of these funds are included on the statement of net position. The statement of changes in revenues, expenses, and changes in net position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position. The statement of cash flows reflects how the County finances and meets the cash flow needs of its enterprise and internal service activities. E. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide and enterprise and internal service fund financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting; enterprise funds and fiduciary funds use the accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred revenue, and in the presentation of expenses versus expenditures. Revenue—Exchange and Nonexchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recognized in the year in which the resources are measurable and become available. Available means the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year. For the County, available means expected to be received within sixty days after year end.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 – Summary of Significant Accounting Policies – Continued E. Basis of Accounting -Continued Revenues—Exchange and Nonexchange Transactions - Continued Nonexchange transactions, in which the County receives value without directly giving equal value in return, include property taxes, sales taxes, grants, entitlements, and donations. On the accrual basis, revenue from property taxes are recognized in the year for which the taxes are levied. Revenue from sales taxes is recognized in the period in which the sales are made. Revenue from grants, entitlements, and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted; matching requirements, in which the County must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the County on a reimbursement basis. On the modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized. Under the modified accrual basis, the following revenue sources are considered both measurable and available at year end: sales taxes, charges for services, fines and forfeitures, grants, interest, and rent. Deferred Outflows/Inflows of Resources 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 one item that qualifies for reporting in this category – the deferred charge on refunding reported in the enterprise funds and government-wide statements 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 no longer reported net of debt and is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred inflows of resources represent 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 unavailable revenue, which arises only under the modified accrual basis of accounting, that qualifies for reporting in this category on the governmental funds balance sheet.

The following amounts are deferred and recognized as an inflow of resources in the period that the amounts become available:

General Other Governmental Unavailable revenue Fund Fund

Property taxes 1,287,246$ -$ Unavailable revenue 29,415 7,622 Special assessments 14,100 -

1,330,761$ 7,622$

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued E. Basis of Accounting - Continued Expenses/Expenditures On the accrual basis, expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds. F. Budgetary Process An annual budget is adopted (as required by law) by the County for the general, special revenue and capital projects funds. Although not legally required, the County also adopts a budget for the enterprise funds and internal service funds. The budgets are adopted on a basis substantially consistent with U.S. generally accepted accounting principles. The County uses the following procedures in establishing the annual budgets:

1. Prior to July 1, the County Manager submits to the Board of Commissioners a proposed budget for the fiscal year commencing on that date. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayer comments. Notice is given at least ten days in advance by publication in the official organ of Lowndes County.

3. The budget is legally enacted through passage of an ordinance. 4. The County has a policy of budgeting on a departmental basis. 5. Formal budgetary integration is employed as a management control device during the year for the

general fund, special revenue, capital project, internal service and enterprise funds. 6. Budgeted amounts are shown as amended throughout the year.

There were no excess of expenditures over appropriations in individual funds. G. Encumbrances Encumbrance accounting, under which major purchase orders, contracts, and other commitments for the expenditures of monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at year-end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year-end are completed. Encumbrances outstanding at year-end do not constitute expenditures or liabilities. For budgetary purposes the encumbrances were recognized as expenditures and this is accounted for as an adjustment from the GAAP Basis to the Budgetary Basis. There were no encumbrances for the year ending June 30, 2014.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued H. Cash and Investments To improve cash management, cash received by the County is pooled and invested. Individual fund integrity is maintained through County records. Each fund’s interest in the pool is presented as “Equity in Pooled Cash and Cash Equivalents.” Cash and cash equivalents that are held separately within departments of the County, and not included in the County Treasury, are recorded as “Cash and Cash Equivalents in Segregated Accounts.” Cash and cash equivalents of the Lowndes County Board of Health and the Valdosta-Lowndes Development Authority component units are recorded as “Cash and Cash Equivalents in Segregated Accounts.” Investments are reported at fair value, except for repurchase agreements and non-negotiable certificates of deposit which are reported at cost. Fair value is based on quoted market prices. Income from pooled investments is allocated only when contractually or legally required. All investment earnings not legally or contractually required to be credited to individual accounts or funds are credited to the General Fund. For purposes of the combined statement of cash flows and for presentation on the statement of net position, investments of the cash management pool and investments with a maturity of three months or less at the time they are purchased by the County are considered to be cash and cash equivalents. Investments with a maturity of more than one year, and not purchased from the cash management pool, are reported as investments. I. Prepaid Items Prepaid items are for payments made by the County in the current year to provide services occurring in the subsequent fiscal year. J. Inventory Inventory is presented at the lower of cost or market on a first-in, first-out basis and is expensed when used. Inventory consists of expendable supplies held for consumption. K. Restricted Assets Assets are reported as restricted when limitations on their use change the nature or normal understanding of the availability of the asset. Certain resources set aside for the payment of bond debt and customer deposits for the water and sewer fund are classified as restricted assets on the balance sheet because their use is limited.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued L. Capital Assets General capital assets are capital assets which are associated with and generally arise from governmental activities. They generally result from expenditures in governmental funds. General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements. Capital assets used by the enterprise funds are reported in both the business-type activities column of the government-wide statement of net position and in the respective funds.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and reductions during the year. Donated capital assets are recorded at their fair market value on the date donated. The County maintains a capitalization threshold of $10,000. The County’s infrastructure consists of roads, bridges, and culverts for which the County chose to include all such items regardless of their acquisition date. The County was able to estimate the historical cost of the governmental activities infrastructure for the initial reporting of those assets. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized. Interest incurred during the construction of enterprise fund capital assets is also capitalized. All capital assets are depreciated, except for land and improvements and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the County’s historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives.

Description Estimated Lives Buildings and Building Improvements 40–100 years Improvements Other Than Buildings 40 years Machinery and Equipment 5–20 years Vehicles 6–20 years Infrastructure 5–50 years Water System 5–50 years Sewer System 5–50 years

M. Interfund Receivables/Payables On fund financial statements, receivables and payables resulting from short-term interfund loans or interfund services provided and used are classified as “Interfund Receivables/Payables.” Interfund balances within governmental activities and within business-type activities are eliminated on the government-wide statement of net position. The only interfund balances which remain on the government-wide statement of net position are those between governmental and business-type activities. These amounts are reflected as “Internal Balances.”

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued N. Compensated Absences Leave benefits are accrued as a liability as the benefits are earned if the employees’ rights to receive compensation are attributable to services already rendered and it is probable the County will compensate the employees for the benefits through paid time off or some other means. The County records a liability for accumulated unused leave time when earned for all employees. The entire compensated absences liability is reported on the government-wide financial statements. On governmental fund financial statements, compensated absences are not recognized as a liability and expenditure. For enterprise funds, the entire amount of compensated absences is reported as a fund liability.

O. Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities, and long-term obligations are reported on the government-wide financial statements. All payables, accrued liabilities, and long-term obligations payable from the enterprise funds are reported on the enterprise fund financial statements. In general, governmental fund payables and accrued liabilities are recognized as fund liabilities when incurred. However, required pension contributions that are paid from governmental funds are reported as liabilities on the fund financial statements only to the extent that they are due for payment during the current year. Loans and capital leases are recognized as a liability on the fund financial statements when due. P. Fund Equity Fund equity at the governmental fund financial reporting level is classified as fund balance. Fund equity for all other reporting is classified as net position. Fund Balance Generally, fund balance represents the difference between the assets and liabilities under the current financial resources measurement focus of accounting. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows: Nonspendable: Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in spendable form (i.e., items that are not expected to be converted to cash) or (b) legally or contractually required to be maintained intact. Restricted: Fund balances are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued P. Fund Equity (Continued) Committed: Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the County Board of Commissioners through the adoption of a resolution. Only the Board of Commissioners may modify or rescind the commitment. Assigned: Fund balances are reported as assigned when amounts are constrained by the County’s intent to be used for specific purposes, but are neither restricted nor committed. Through resolution, the Board of Commissioners has authorized the County’s Finance Director to assign fund balances. Unassigned: Fund balances are reported as unassigned as the residual amount when the balances do not meet any of the above criterion. Positive unassigned fund balance may be reported only in the General Fund. Negative unassigned fund balances may be reported in all funds. The County has adopted a financial policy of maintaining a minimum balance in the total fund balance of the General Fund equal to 120 days of expenditures based on the annual daily average. Flow Assumptions When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the County’s policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the County’s policy to use fund balance in the following order: Committed, Assigned, Unassigned. Net Position Net position represents the difference between assets and liabilities in reporting which utilizes the economic resources measurement focus. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the County has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted using the same definition as used for restricted fund balance as described in the section above. All other net position is reported as unrestricted. The County applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available. Q. Operating Revenues and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the enterprise funds. For the County, these revenues are charges for services for water and sewer and street lighting. Operating expenses are the necessary costs incurred to provide the service that is the primary activity of the fund. Revenues and expenses not meeting these definitions are reported as nonoperating.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies - Continued R. Interfund Transactions Transfers between governmental and business-type activities on the government-wide financial statements are reported in the same manner as general revenues. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as Interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after nonoperating revenues/expenses in enterprise funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. S. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2 – Deposits and Investments Lowndes County has maintained investments in a local government investment pool through the State of Georgia Office of State Treasurer. The balance at June 30, 2014 was $0 for all funds. The funds have a 24 day weighted average maturity. “Georgia Fund 1,” created by O.C.G.A. 36-83-8, is a stable net asset value invested pool which follows Standard and Poor’s criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool’s primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value.) Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant’s shares sold and redeemed based on $1.00 per share.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 2 – Deposits and Investments - Continued Interest Rate Risk. The County has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. State statutes authorize the County to invest in obligations of the State of Georgia or other states; obligations issued by the U.S. government; obligations fully insured or guaranteed by the U. S. government or by a government agency of the United States; obligations of any corporation of the U. S. government; prime banker’s acceptances; the local government investment pool established by state law; repurchase agreements; and obligations of other political subdivisions of the State of Georgia. The County has no policy for credit risk beyond the types of investments authorized by state statute. Custodial Credit Risk – Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the County will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits and investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U. S. government, or bonds of public authorities, counties or municipalities. The County has no custodial credit risk policies requiring additional collateral. Custodial Credit Risk – Investments. Custodial credit risk for investments 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. State statutes require all investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U. S. government, or bonds of public authorities, counties or municipalities. The County has no custodial credit risk policies requiring additional collateral. Note 3 – Property Taxes Property taxes include amounts levied against all real property, public utility property, and tangible personal property located in the County. The property taxes for Lowndes County are collected by the Lowndes County Tax Commissioners Office and remitted to the County monthly. The property tax calendar is as follows: January 1 - Assessment date July 1 - Tax Assessors send returns to Tax Commissioner July 25 - Millage rate is set by the County Commission July 28 - County tax digest is submitted to the State Revenue Commissioner September 15 - Bills are mailed by Tax Commissioner November 15 - Due date for property taxes other than motor vehicles November 16 - Execution date for unpaid taxes Taxes are collected throughout the year.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS

Note 4 – Payment in Lieu of Taxes According to State law, the County has entered into agreements with a number of property owners under which the County has granted property tax abatements to those property owners and agreed to construct certain infrastructure improvements. The property owners have agreed to make payments to the County to help pay the costs of the infrastructure improvements. The amount of those payments generally reflects all or a portion of the property taxes which the property owners would have paid if their taxes had not been abated. The property owners’ contractual promises to make these payments in lieu of taxes generally continue until the costs of the improvement have been paid or the agreement expires, whichever occurs first. Future development by those owners or others may result in subsequent agreements to make payments in lieu of taxes and may therefore spread the costs of the improvements to a larger number of property owners. Note 5 – Hotel/Motel Lodging Tax Lowndes County levies a 5% hotel motel lodging tax of which 2% is designated for the promotion of tourism. All of the tourism funds are provided to the Valdosta-Lowndes County Conference Center & Tourism Authority which amounted to $112,420. Lowndes County receives an audit report from the Valdosta- Lowndes County Conference Center & Tourism Authority demonstrating that all expenditures of these funds were for promotion of tourism as required by O.C.G.A. 48-13-51. Collections of hotel motel lodging tax amounted to $281,051. The balance of funds was used by the County to assist with appropriations to the Valdosta-Lowndes County Airport Authority bringing the total expenditures to 100% of revenues. Note 6 – Receivables Receivables at June 30, 2014, consisted of accounts (billings for user charged services, including unbilled utility services), sales taxes, accrued interest, grants, interfund, and property taxes. All amounts due from other governments are considered collectible in full. Delinquent property taxes may be certified and collected as a special assessment, subject to foreclosure for nonpayment. Receivables are recognized to the extent the amounts are determined material and substantiated, not only by supporting documentation but also by a reasonable systematic method of determining their existence, completeness, valuation, and collectability. Note 7 – Due From Other Governments A summary of the amounts due from other governments is as follows: Special Revenue Funds Nonmajor funds Southern Judicial Circuit - ADR 12,272$ Georgia Emergency Management Agency 23,619 Georgia Office of Highway Safety 6,153 Criminal Justice Coordinating Council 46,413 Prosecuting Attorney County of Georgia 8,645 Georgia Department of Transportation 38,136

Total - Special Revenue Funds 135,238$

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 8 – Capital Assets Capital asset activity for the year ended June 30, 2014 was as follows:

Balance at Balance at July 1, 2013 Additions Reductions June 30, 2014

Primary Government Governmental Activities: Nondepreciable Capital Assets: Land 2,884,216$ -$ -$ 2,884,216$ Construction in progress - 2,141,952 - 2,141,952

Total Nondepreciable Capital Assets 2,884,216 2,141,952 - 5,026,168

Depreciable Capital Assets: Buildings and building improvements 84,690,933$ 274,040$ -$ 84,964,973$ Improvements other than buildings 1,023,866 - - 1,023,866 Machinery and equipment 25,414,975 131,213 - 25,546,188 Vehicles 9,084,654 661,081 - 9,745,735 Infrastructure 313,139,032 - - 313,139,032

Total Depreciable Capital Assets 433,353,460 1,066,334 - 434,419,794

Less Accumulated Depreciation for: Buildings and building improvements 20,875,209 1,363,026 - 22,238,235 Improvements other than buildings 743,077 14,132 - 757,209 Machinery and equipment 20,921,564 1,182,312 - 22,103,876 Vehicles 7,543,971 611,627 - 8,155,598 Infrastructure 277,135,634 3,030,612 - 280,166,246

Total Accumulated Depreciation 327,219,455 6,201,709 - 333,421,164

Total Depreciable Capital Assets, Net 106,134,005 (5,135,375) - 100,998,630

Governmental Activities Capital Assets, Net 109,018,221$ (2,993,423)$ -$ 106,024,798$

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 8 – Capital Assets – Continued

Balance at Balance at July 1, 2013 Additions Reductions June 30, 2014

Business Type Activities: Nondepreciable Capital Assets: Land 2,690,543$ -$ -$ 2,690,543$ Construction in progress - 81,063 - 81,063

Total Nondepreciable Capital Assets 2,690,543 81,063 - 2,771,606

Depreciable Capital Assets: Machinery and equipment 58,617,946$ 101,228$ -$ 58,719,174$ Vehicles 110,304 91,753 - 202,057

Total Depreciable Capital Assets 58,728,250 192,981 - 58,921,231

Less Accumulated Depreciation for: Machinery and equipment 21,488,499 1,330,422 - 22,818,921 Vehicles 67,247 25,579 - 92,826

Total Accumulated Depreciation 21,555,746 1,356,001 - 22,911,747

Total Depreciable Capital Assets, Net 37,172,504 (1,163,020) - 36,009,484

Business Type Activities Capital Assets, Net 39,863,047$ (1,081,957)$ -$ 38,781,090$

Depreciation was charged to governmental functions as follows:

Governmental activities: General Government Legislative and Executive 618,182$ Judicial 321,825 Public Safety 1,913,224 Public Works 3,348,478

Total Depreciation Expense - Governmental Activities 6,201,709$

Business-type activities: Water and Sewer 1,356,001$

Total Depreciation Expense - Business-type Activities 1,356,001$

The County has acquired five mini buses through grant funds and they are operated by a third party contractor to provide transit services for which the contractor receives compensation directly from the users of the service. The County insures the mini buses and that insurance cost is paid back to the County by the third party contractor. When the mini buses are no longer utilized they have to be returned to the granting agency. These mini buses are not included in the capital assets of the County.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 9 – Interfund Balances and Transfers Interfund receivable and payable balances as of June 30, 2014 are as follows:

Nonmajor Water & Street Internal Governmental Sewer Lighting District Service

SPLOST VII Funds Fund Fund Funds Total

Due To General Fund 1,652,783$ 169,338$ 500,000$ 58,673$ 719,525$ 3,100,319$

1,652,783$ 169,338$ 500,000$ 58,673$ 719,525$ 3,100,319$

Due From

Interfund transfers for the year ending June 30, 2014 consisted of the following:

Nonmajor Water and General SPLOST VII Governmental Sewer Landfill

Fund Fund Funds Fund Fund Total Transfer To General Fund -$ -$ 435,000$ 350,000$ 104,000$ 889,000$ Nonmajor Governmental Fund 829,879 - 168,237 - - 998,116 Water and Sewer Fund - 81,390 - - - 81,390

829,879$ 81,390$ 603,237$ 350,000$ 104,000$ 1,968,506$

Transfer From

The difference in interfund receivables and payables for government funds is due to amounts due to and from internal service funds shown above. The interfund balances resulted from loans made to provide working capital for operations and projects and the time lag between dates that payments between funds are made. Transfers were made from the nonmajor governmental funds and enterprise funds to the general fund for administrative cost. Transfers to 911 Fund, a nonmajor governmental fund were to cover operational cost of that fund. Transfers to the Hotel Motel Fund, a nonmajor governmental fund, from the Special Services Fund were to cover the appropriation to the Valdosta-Lowndes County Airport Authority. Transfers from the SPLOST VII Fund to the Water & Sewer Fund were to cover capital projects approved in the SPLOST VII referendum.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 10 – Risk Management A. Property and Liability The County is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County established a Health Insurance Fund and a Workers Compensation Fund (internal service funds) to account for and finance its uninsured risks of loss. Under this program, the Workers Compensation Fund provides coverage for up to a maximum of $250,000 for each worker’s compensation claim, $2,500 for each enforcement claim. The coverage has a $1,000,000 cap. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. All funds of the County participate in the Health Insurance and Workers Compensation programs and make payments to the funds based on estimates of the amounts needed to pay prior and current-year claims and to establish a reserve for catastrophe losses. The Health Insurance Fund has a net position deficit of $548 and the Workers Compensation Fund has a net position balance of $307,976 as of June 30, 2014. At June 30, 2014 the Health Insurance Fund has a claims liability of $388,072 and the Workers Compensation Fund has a claims liability of $510,000 reported based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Health Insurance and Workers Compensation Funds claim liability amounts in fiscal 2013 and 2014 were:

Claims Claims Fiscal Year 2013 Beginning Estimates Paid Ending Group Health Fund 622,885$ 4,755,855$ 4,756,670 622,070$ Workers' Compensation Fund 1,060,000 348,417 851,417 557,000

1,682,885$ 5,104,272$ 5,608,087$ 1,179,070$

Claims Claims Fiscal Year 2014 Beginning Estimates Paid Ending Group Health Fund 622,070$ 5,834,079$ 6,118,077 338,072$ Workers' Compensation Fund 557,000 312,873 359,873 510,000

1,179,070$ 6,146,952$ 6,477,950$ 848,072$

B. Health Care The County manages the employee health coverage uninsured except for a stop-loss policy. Included in the accounts payable of the Health Insurance Fund is an estimated liability of $ 338,072 which reflects health claims incurred, but not processed prior to year end. This health claims liability was estimated based on such claims paid subsequent to year end.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 10 – Risk Management - Continued C. Workers’ Compensation The County participates in the ACCG- Group Self-Insurance Workers’ Compensation Fund to pay all cost taxed against members in any legal proceeding defended by the members, all interest accruing after entry of judgment, and all expense incurred for investigation, negotiation, or defense. Included in the accounts payable of the Workers Compensation Fund is an estimated liability of $510,000 which reflects workers compensation claims incurred but not processed prior to year end. This workers compensation liability was estimated in the annual actuarial report. Settled claims in the past three years have not exceeded the coverage. There was no significant reduction in insurance coverage from the prior year. Note 11 – Defined Benefit Pension Plan The county contributes to the Association of County Commissioners of Georgia Restated Pension Plan for Lowndes County Employees (The Plan), which is a defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries. The Plan, through execution of the adoption agreement, is affiliated with the Association County Commissioners of Georgia Third Restated Defined Benefit Plan (The ACCG Plan), an agent multiple-employer pension plan, administered by GEBCorp. The ACCG, in its role as the Plan Sponsor, has the sole authority to amend the provisions of the ACCG Plan, as provided in Section 19.03 of the ACCG Plan document. The County has authority to amend the adoption agreement, which defines the specific benefit provisions of The Plan as provided in Section 19.02 of the ACCG Plan document. Membership As of January 1, 2014, the most recent actuarial valuation date, the Plan membership consisted of the following categories of participants: Retirees and beneficiaries receiving benefits 159 Terminated plan members entitled to but not yet receiving benefits 266 Disabled in pay status 8 Active plan members 484 Total number of plan participants 917

Funding Policy The County is required to contribute an actuarially determined amount annually to the Plan’s trust. The contribution amount is determined using actuarial methods and assumptions approved by the ACCG Plan trustees and must satisfy the minimum contribution requirement contained in the State of Georgia statutes. Plan members are not required to contribute. The Georgia Constitution enables the governing authority of the County, the Board of Commissioners, to establish and amend from time to time, the contribution rates for the County and its plan participants.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 11 – Defined Benefit Pension Plan - Continued Annual Pension Cost The County’s annual pension cost and net pension obligation for the current fiscal year were determined as follows: Derivation of Annual Pension Cost: Annual required contribution 2,790,922$ Interest on net pension obligation 10,421 Amortization of net pension obligation (asset) (11,150)

Annual pension cost 2,790,193$

Derivation of Net Pension Obligation Annual pension cost 2,790,193$ Actual contributions to plan 2,831,952

Increase in net pension obligation (asset) (41,759) Net pension obligation (asset) beginning of year 134,466

Net pension obligation (asset) end of year 92,707$

Basis of Valuation and Actuarial Assumptions

Current valuation date Annual return on invested plan assets Projected annual salary increases Expected annual inflation Actuarial value of assets Actuarial funding method Amortization method Remaining Amortization Period*: 10 * - Represents the estimated amortization period for all unfunded liabilities combined into one.

Projected Unit Credit Level Percent of Pay (closed)

January 1, 2014 7.50%

3.5%-6.0% based on age 3.00%

Market Value

The following is a schedule of funding progress:

UAAL as a

Actuarial Actuarial Unfunded Percentage of Calendar Value Accrued AAL Funded Covered Covered

Year of Assets Liability UAAL Ratio Payroll Payroll 2013 $ 29,886,972 $ 39,900,314 $ 10,013,342 74.9% $ 16,552,162 60.5% 2012 25,996,693 37,170,867 11,174,174 69.9% 16,550,770 67.5%

The required schedule of funding progress immediately following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan net position in increasing or decreasing over time relative to the actuarial accrued liability. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as of January 1, 2014.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 11 – Defined Benefit Pension Plan - Continued

Trend Information for the Plan

Actual Percentage Net Pension Fiscal Year Annual County of APC Obligation

Ending Pension Cost Contribution Contributed (Asset) June 30, 2014 2,790,193$ 2,831,952$ 101% 92,707$ June 30, 2013 2,521,487 2,602,505 103% 134,466 June 30, 2012 2,370,344 2,488,520 105% 215,484 June 30, 2011 2,210,836 1,022,314 46% 333,660 June 30, 2010 1,959,366 2,127,107 109% (854,862) June 30, 2009 1,564,953 1,656,183 106% (687,121)

In addition to the above retirement plan, of which the County is administrator, the following retirement plans are in effect but are not under the direct control of the County: 1) Probate Judges' Retirement Fund of Georgia 2) Clerk of Superior Court Retirement Fund 3) Sheriffs' Retirement Fund/Peace Officers' Annuity and Benefit Fund These plans provide for certain sums from marriage licenses, fees, fines and forfeitures to be remitted directly to the pension plans before the payment of any costs or other claims. A copy of both financial reports can be obtained at the following address: GEBCorp 1100 Circle 75 Parkway Suite 300 Atlanta, Georgia 30339 Note 12 - Deferred Compensation Plan The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code (IRC) Section 457. The plan, available to all employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The assets of the plan are held in trust, (custodial account or annuity contract) as described in IRC Section 457(g) for the exclusive benefit of the participants (employees) and their beneficiaries. The custodian thereof for the exclusive benefit of the participants holds the custodial account for the beneficiaries of this Section 457 plan, and the assets may not be diverted to any other use. The Administrators are agents of the employer for the purposes of providing direction to the custodian of the custodial account from time to time for the investment of funds held in the account, transfer of assets to or from the account and all other matters. In accordance with the provisions of GASB Statement 32, plan balances and activities are not reflected in Lowndes County, Georgia’s financial statements.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 13– Other Post Employment Benefits Plan Description In addition to providing pension benefits, in accordance with County resolution, the County provides certain health care benefits for retired employees. The County’s employees who are eligible for retirement benefits under the pension plan are also eligible for post employment health care benefits. Retirees who meet one of the following requirements are eligible to continue coverage through the County’s self-insured health insurance program:

 Age 65  Must have 10 or more years of service with Lowndes County, and be at least 55 years of age or  Must have a combination of years of service and attained age equal to 75, with a minimum age of 55.  Must have 10 or more years of services with Lowndes County and be deemed to be totally disabled by

the Federal Social Security Administration. Retirees may stay on the plan for their lifetime by making the required contribution. Dependents may participate for the lifetime of the retiree as long as the retiree pays the required contribution for dependent coverage. The monthly retiree contributions are as follows:

Non-Medicare Medicare Eligible Eligible

Medical Tier Retiree Retiree Retiree Only 166.66$ 83.33$ Family 285.86$ 142.90$

Once the covered member becomes eligible for Medicare, the County’s plan pays claim secondary to Medicare. The plan is governed by the County Board of Commissioners. The County has made no commitments to maintain this program. The benefits of the plan are not vested and may be modified or eliminated at anytime. A separate financial statement is not issued for the plan.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 13– Other Post Employment Benefits - Continued Funding Policy The contribution requirements of plan members and the County are established and may be amended by the Board of Commissioners. The required contribution is based on a projected pay-as-you-go financing requirement as determined by the Board of Commissioners. Annual OPEB Cost and Net OPEB Obligation The County’s annual Other Postemployment Benefit (OPEB) cost is calculated based on the Annual Required Contribution of the Employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or unfunded excess) over a period not to exceed 30 years. Funded Status and Funding Progress Funding is provided through the general fund as required to the self insurance fund. Premiums paid by retired employees were $119,285 and the County’s funding was $632,998. The annual required contribution amount was determined using actuarial methods.

Employer Annual Required Contribution 3,266,236$ Interest on net OPEB Obligation 326,028 Adjustment to annual required contribution (311,458)

Annual OPEB cost 3,280,806 Employer contributions for period ending June 30, 2014 (632,998)

Increase in net OPEB Obligation 2,647,808 Net OPEB obligation beginning of year 8,150,697

Net OPEB obligation end of year 10,798,505$

The annual required contribution was determined as part of the January 1, 2013 actuarial valuation. The chart below shows the annual OPEB cost for the current fiscal year, along with the percentage actually contributed by the County.

Fiscal Year Annual OPEB Percentage of Net OPEB Ending Cost (AOC) AOC Contributed Obligation

6/30/2014 3,280,806$ 19.29% 10,798,505$ 6/30/2013 3,019,622$ 20.96% 8,150,697$ 6/30/2012 2,926,891$ 2.89% 5,764,073$ 6/30/2011 2,921,668$ 0.00% 2,921,668$

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 13– Other Post Employment Benefits - Continued Funded Status and Funding Progress - Continued As of the most recent valuation date, January 1, 2013, the funded status of the OPEB Plan is as follows:

UAAL as a Actuarial Actuarial Actuarial Unfunded Percentage Valuation Value Accrued AAL Funded Covered Covered

Date of Assets Liability UAAL Ratio Payroll Payroll 1/1/2011 $ - $ 26,402,926 $ 26,402,926 0.0% $ 20,155,927 130.99% 1/1/2013 $ - $ 28,918,129 $ 28,918,129 0.0% $ 20,085,501 143.98%

Actuarial Methods and Assumptions Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continued revision as a result are compared to past expectations and new estimates are made about the future Actuarial calculations reflect a long- term perspective. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Calculations are based on the plan in effect at January 1, 2013. The assumptions used in the January 1, 2013 actuarial valuation are as follows:

Valuation date Actuarial cost method Amortization method Amortization period Asset valuation method Actuarial assumptions: Investment rate of return* 4.00% Pre-Medicare trend rate 8.50%-5.00% Year of Ultimate trend rate 2018 *Includes inflation at 3.00%

January 1, 2013 Projected unit credit

Level Percentage of Pay, open 30 Years

Market Value of Assets

Note 14 – Compensated Absences It is the County’s policy to permit employees to accumulate earned but unused leave benefits. A maximum of 192 hours of unused leave benefits will be paid to employees upon separation from County service. In the normal course of business, all payments of these accumulated benefits will be funded from appropriations of the year in which they are to be paid from the fund for which the employee’s compensation is funded. While the General Fund covers a majority of the cost of compensated absences, Commissary, Jail Operations, Drug Abuse Treatment, 911 Emergency Telephone, Victim Witness and Special Services funds all contribute to compensated absences for employees paid through those funds.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 14 – Compensated Absences – Continued

Balance at Balance at Amount Due July 1, 2013 Additions Reductions June 30, 2014 In One Year

Primary Government: Governmental Activities: Compensated absences 1,223,613$ 688,111$ 685,223$ 1,226,501$ 686,841$ Business Type Activities: Compensated absences 36,205 19,123 20,275 35,053 19,630

Total Primary Government 1,259,818$ 707,234$ 705,498$ 1,261,554$ 706,470$

Component Units: Board of Health: Compensated absences 537,317$ 338,118$ 306,271$ 569,164$ 324,423$ Parks & Recreation Authority: Compensated absences 67,921 57,146 44,547 80,520 31,818

Total Component Units 605,238$ 395,264$ 350,818$ 649,684$ 356,241$ Note 15 - Capital Leases As of December 1, 2003, the County entered into a capital lease with the Central Valdosta Development Authority for the purchase of the Judicial Complex. During FY13 the bonds held by the Central Valdosta Development Authority were refunded and new bonds were issued through the Lowndes County Public Facility Authority. The county entered into a capital lease with the Lowndes County Public Facility for the purchase of the Judicial Complex. Various capital leases were entered into through the ACCG lease program for the acquisition of a building and equipment. The assets acquired through capital leases for governmental activities are as follows:

Buildings 15,500,000 Equipment 8,130,501 Less: Accumulated Depreciation (8,669,142)

Total 14,961,359$

The FY14 amortization expense of $1,307,592 was included in the depreciation expense. Intergovernmental Agreement As of August 1996, the County entered into an intergovernmental funding agreement with the Valdosta-Lowndes Development Authority to secure bonds issued by the Authority for $ 5,000,000 to finance acquisition and development of industrial sites. The bonds have a floating interest rate based on a percentage of the London Interbank Offer Rate. The bonds were payable “interest only” until January 1, 1999 after which, annual payments of principal are due. The bonds mature January 1, 2017. The balance as of June 30, 2014 is $ 1,265,000. As of December 2008, the County entered into an intergovernmental funding agreement with the Valdosta- Lowndes Development Authority to secure bonds issued by the Authority for $ 15,000,000 to finance acquisition and development of industrial sites. The bonds have a variable fixed interest rate. The bonds mature February 1, 2024. The balance as of June 30, 2014 is $ 11,595,000.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 16 – Long-Term Debt The following is a summary of long-term debt transactions of the County for the year ended June 30, 2014:

Balance at Balance at Amount Due July 1, 2013 Additions Reductions June 30, 2014 In One Year

Governmental Activities Capital leases - CVDA 730,000$ -$ 730,000$ -$ -$ Capital leases - Public Facility Author 9,265,000 - 80,000 9,185,000 840,000 Capital leases - Fleet Fund 69,700 - 16,400 53,300 16,400

Total capital leases 10,064,700 - 826,400 9,238,300 856,400

General Obligation Sales Tax Bonds 7,900,000 - 7,900,000 - - Unamortized Bond Premium 860,839 - 395,526 465,313 40,714

Total bonds payable 8,760,839 - 8,295,526 465,313 40,714

Total Governmental Activities 18,825,539$ -$ 9,121,926$ 9,703,613$ 897,114$

Balance at Balance at Amount Due July 1, 2013 Additions Reductions June 30, 2014 In One Year

Business - Type Activities Revenue bonds (2005) 1,760,000$ -$ 1,175,000$ 1,200,000$ 585,000$ Revenue bonds (2013) 7,520,000 - 25,000 7,420,000 100,000 Unamortized Bond Premium 296,467 - 19,409 277,058 20,479

Total Business-Type Activities 9,576,467$ -$ 1,219,409$ 8,897,058$ 705,479$

Internal service funds predominately serve the governmental funds. Accordingly, the long-term liabilities for them are included as part of the totals for governmental activities. The additions to capital leases from the internal service Fleet Fund are accounted for in the government-wide statement of net position but are not reflected in the governmental fund statements which do not include the internal service funds. Governmental activities debt is paid for by direct appropriation of funds for the Lowndes County Public Facility lease in the general fund and by allocation of rental payments for capital assets from applicable general fund departments. The original issue date, interest rate and original issue amount for the County’s long-term obligations are as follows: Original Original

Issue Interest Issue Maturity Annual Purpose Date Rate Amount Date Installments

Governmental Activities Capital Lease Equipment 2007 3.95% 2,048,000$ 2017 Variable Capital Lease Judicial/Admin Complex Building 2012 Fixed 9,265,000$ 2024 Variable

Business Activities Revenue Bonds Water & Sewer Capital Improvements 2006 Fixed 12,500,000$ 2016 Variable Revenue Bonds Water & Sewer Capital Improvements 2013 Fixed 7,545,000$ 2025 Variable

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 16 – Long-Term Debt – Continued Fixed interest rates on the Judicial Complex Building capital lease range from 2.00% in 2014 to 3.00% in 2024. Annual principal installments range from $700,000 in 2014 to $1,020,000 in 2024. Fixed interest rates on the Water & Sewer revenue bonds range from 2.00% in 2014 to 3.00% in 2022. Annual principal installments range from $570,000 in 2014 to $880,000 in 2025. The following is a summary of the County's future annual debt service requirements on long-term obligations:

Year Ending June 30, Principal Interest 2015 856,400$ 215,288$ 2016 866,400 197,835 2017 886,400 180,175 2018 889,100 162,241 2019 905,000 144,500 2020-2024 4,835,000 414,300

Total 9,238,300$ 1,314,339$

Capital Leases Governmental Activities

The following is a summary of the County's future annual debt service requirements on long-term obligations:

Year Ending June 30, Principal Interest 2015 685,000$ 217,213$ 2016 715,000 185,962 2017 735,000 160,900 2018 750,000 146,200 2016 765,000 131,200 2020-2024 4,090,000 395,450 2025 880,000 17,600

Total 8,620,000$ 1,254,525$

Revenue Bonds

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 17 – Legal Debt Margin The legal debt limit of the County for general obligation debt is determined by the Constitution of Georgia to be 10% of the total assessed value of all real, personal, and public utility property less any debt applicable to the limit. The legal debt margin as June 30, 2014 was $289,824,357 based on a total assessed values of $2,898,243,575 and no general obligation debt outstanding. Note 18 – Landfill Postclosure Cost

Balance at Balance at Amount Due July 1, 2013 Additions Reductions June 30, 2014 In One Year

Business Type Activities: Postclosure care cost 933,493$ -$ 58,882$ 874,611$ 72,884$

State and federal laws and regulations require the County to cover a landfill and maintain monitoring functions for thirty years after closure. The County has accrued the expected postclosure cost for the landfill that closed November 1996. The amount accrued of $933,493 represents 100% of the total estimated remaining postclosure cost which is made up of estimated monitoring costs and maintenance costs. This estimate is subject to change based on changes in technology or applicable laws and regulations. Solid waste host fees are utilized to cover the postclosure cost. Note 19 – Component Units A. Lowndes County Board of Health Basis of Presentation The financial statements of the Lowndes County Board of Health (Board) have been prepared in accordance with generally accepted accounting principles (GAAP) for local governmental units and, accordingly, reflect all significant receivables, payables, and other liabilities. The Board uses funds to report on its financial position and results of its operations. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results may differ from those estimates.

Basis of Accounting The accrual basis of accounting is followed by the Board. Revenues are recognized when an exchange takes place or when all eligibility requirements have been satisfied.

Cash and Cash Equivalents Cash and cash equivalents of the Board are not a part of the County’s cash management pool and are reported as part of “Cash and Cash Equivalents in Segregated Accounts”.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 19 – Component Units - Continued A. Lowndes County Board of Health -Continued

Property and Equipment Property and equipment are carried at cost or, if donated, the fair value on the date donated. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Property and equipment as of June 30, 2014, was as follows:

Equipment 2,524,273$ Vehicles 184,484 Less: Accumulated Depreciation (2,208,305)

Net Property and Equipment 500,452$

Retirement Plan The employees of the Health Department participate in the Georgia State Employees Retirement System, a multi- employer, defined contribution plan. The Plan is administered by the State of Georgia, and accumulated benefits and Plan assets are not determined or allocated to the individual participating governmental entities. The Georgia State Employees’ Retirement System of Georgia requires ten years of continuous service to become fully vested. The total retirement contributions to the Georgia State Employees Retirement System for the year ended June 30, 2014 were $861,536. Ten-year historical trend information and relevant actuarial information may be obtained from the Employee’s Retirement System, Two Northside 75, Suite 300, Atlanta, Georgia 30316-7778 or calling 1- 406-352-6400.

B. Valdosta-Lowndes Development Authority

Basis of Accounting. The financial statements of Valdosta-Lowndes Development Authority (the Authority) have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results may differ from those estimates.

Cash and Cash Equivalents The Authority considers all highly liquid instruments purchased with a maturity of less than three months to be cash equivalents. Cash and cash equivalents and investments of the Authority are presented as “Cash and Cash Equivalents in Segregated Accounts” and “Investments in Segregated Accounts”, respectively.

Property and Equipment Property and equipment are carried at cost or, if donated, the fair value on the date donated. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Property and equipment as of June 30, 2014, was as follows: Land 17,323,798$ Land improvements 8,852,791 Equipment 286,965 Less: Accumulated Depreciation (4,942,669)

Net Property and Equipment 21,520,885$

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 19 – Component Units - Continued

B. Valdosta-Lowndes Development Authority - Continued

Bonds Payable In 1996, the Authority issued bonds in the amount of $5,000,000 to finance acquisition and development of industrial sites in Lowndes County, Georgia. The revenue bonds have a maturity date of January 1, 2017. The bonds have a floating interest rate based on a percentage of the London Interbank Offer Rate. The bonds were payable “interest only” until January 1, 1999, after which, annual payments of principal are due. The bonds are secured by an “inter governmental” funding agreement between the Authority and Lowndes County, Georgia.

The following is a summary of the Authority’s future annual debt service requirements on bonds payable:

Year Ending June 30, Principal Interest 2015 395,000$ 14,137$ 2016 420,000 10,223 2017 450,000 5,288

Total 1,265,000$ 29,648$

Bonds

Bonds Payable In December 2008, the Authority issued bonds in the amount of $15,000,000 to finance acquisition and development of industrial sites in Lowndes County, Georgia. The revenue bonds have a maturity date of February 1, 2024. The bonds have a variable fixed interest rate. The bonds are secured by an “inter governmental” funding agreement between the Authority and Lowndes County, Georgia.

The following is a summary of the Authority’s future annual debt service requirements on bonds payable:

Year Ending June 30, Principal Interest 2015 835,000$ 843,198$ 2016 895,000 785,165 2017 955,000 722,963 2018 1,025,000 656,590 2019 1,095,000 585,353 2020-2024 6,790,000 1,601,250

Total 11,595,000$ 5,194,519$

Bonds

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 19 – Component Units - Continued B. Valdosta-Lowndes Development Authority - Continued During the year ended June 30, 2014 interest paid on the 1996 and 2008 Series Bonds was in the amount of $889,033. C. Valdosta-Lowndes County Parks and Recreation Authority

Basis of Accounting. The financial statements of Valdosta Lowndes County Parks and Recreation Authority (the Authority) have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results may differ from those estimates.

Cash and Cash Equivalents The Authority considers all highly liquid instruments purchased with a maturity of less than three months to be cash equivalents. Cash and cash equivalents and investments of the Authority are presented as “Cash and Cash Equivalents in Segregated Accounts” and “Investments in Segregated Accounts”, respectively.

Property and Equipment Property and equipment are carried at cost or, if donated, the fair value on the date donated. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Property and equipment as of June 30, 2014, was as follows:

Land 3,551,052$ Construction in progress 9,100 Land improvements 5,760,382 Equipment 700,060 Vehicles 100,230 Less: Accumulated Depreciation (1,782,992)

Net Property and Equipment 8,337,832$

Note 20 – Insurance Pools A. ACCG – Group Self-Insurance Workers Compensation and Interlocal Risk Management Agency The County may be subject to risk of loss due to torts; theft of , damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County covers these risks through the purchase of insurance coverage through ACCG- Group Self-Insurance Workers’ Compensation Fund and the ACCG- Interlocal Risk Management Agency. These are public entity risk pools currently operating as common risk management and insurance programs for member local governments. As part of these risk pools, the County is obligated to pay all contributions and assessments as prescribed by the pools, to cooperate with the pool’s agents and attorneys, to follow loss reduction procedures established by the funds, and to report as promptly as possible, and in accordance with any coverage descriptions issued, all incidents which could result in the funds being required to pay any claim of loss. The County is also to allow the pool’s agents and attorneys to represent the County in investigation, settlement discussions, and all levels of litigation arising out of any claim made against the County within the scope of loss protection furnished by the funds.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 20 – Insurance Pools - Continued The funds are to defend and protect the members of the funds against liability or loss as prescribed in the member government contract and in accordance with the worker’s compensation law of Georgia. The funds are to pay all cost taxed against members in any legal proceeding defended by the members, all interest accruing after entry of judgment, and all expense incurred for investigation, negotiation, or defense. Settled claims in the past three years have not exceeded the coverage. There was no significant reduction in insurance coverage from the prior year. Note 21 – Joint Ventures The County and the City of Valdosta jointly govern the Valdosta-Lowndes County Airport Authority and the Valdosta-Lowndes County Conference Center and Tourism Authority as is described in Note 1 - Reporting Entity. The County does not retain an ongoing financial interest or responsibility in the Valdosta-Lowndes County Airport Authority. The County, in conjunction with cities and counties in the (10) county South Georgia area are members of the Southern Georgia Regional Commission. Membership in a Regional Commission is automatic for each municipality and county in the state. The official Code Georgia Section 50-8-34 (Georgia Planning Act of 1989) provides for the organizational structure of the Regional Commission’s. Each county and municipality in the state is required by law to pay minimum annual dues to the Regional Commission. The County paid annual dues in the amount of $69,228 to the Regional Commission for the year ended June 30, 2014. The Regional Commission Board membership includes the Chief elected official of each county and the Chief elected official of each municipality. The County Board members and municipal Board members from the same county elect one member of the Board who is a resident (but not an elected or appointed official or employee of the County or municipality to serve as the non-public Board member from a County. The Georgia Planning Act of 1989 (O.C.G.A. 50-8-34) defines Regional Commissions as “public agencies and instrumentality’s of their members”. Georgia laws also provide that the member governments are liable for any debts or obligations of an Regional Commission beyond its resources. (O.C.G.A. 50-8-39.1) A copy of the financial report can be obtained at the following address: Southern Georgia Regional Commission 3395 Harris Road Waycross. Georgia 31503 Note 22 – Related Party Transactions The County appropriated $289,237 to the Valdosta - Lowndes County Airport Authority and $112,420 to the Valdosta-Lowndes County Conference Center and Tourism Authority. Note 23 – Contingent Liabilities The site purchased for building of the Judicial and Administrative Complex was given environmental clearance at the time of sale but it was discovered that there was leakage of petroleum products from a former gas station site that had not been detected. The County has completed the process of cleaning up the site in cooperation with the

71

LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 23 – Contingent Liabilities - Continued Environmental Protection Agency and will receive some funding from them for the clean up cost. There will be continued monitoring of the site and the County will incur the cost for that monitoring. The County participates in federal and state assisted grant programs subject to program compliance audits by the grantors or their representatives. It is the County’s opinion that no material unrecorded liabilities will arise from audits previously performed or to be performed. Regardless, receipt of these federal and state grant revenues is not assured in the future. Commitments. The County is contingently liable for the obligations of two authorities through funding agreements. The first is with the Valdosta-Lowndes Development Authority guaranteeing the funding necessary for the repayment of Valdosta-Lowndes Development Authority Industrial Development Revenue Bonds, Series 1997, in the aggregate principal amount of $5,000,000 and Valdosta-Lowndes Development Authority Industrial Development Revenue Bonds, Series 2013, in the aggregate principal amount of $15,000,000. Commitments. The second funding agreement is with the Hospital Authority of Valdosta and Lowndes County, Georgia guaranteeing the funding necessary for the repayment of Hospital Authority of Valdosta and Lowndes County, Georgia Revenue Certificates, Series 2013B, in the aggregate principal amount of $148,280,000. The certificates are to be retired from revenues generated from the operations of South Georgia Medical Center. Litigation. The County is a defendant in a number of claims and lawsuits. The County Attorney has reviewed these claims and lawsuits, and has concluded that it is not possible to evaluate the probability of an unfavorable outcome or to estimate the amount of potential loss. As a result and pursuant to Financial Accounting Standards Board Statement No. 5 (Accounting for Contingencies), no liabilities have been recorded. County management is of the opinion that any actual losses will not be material to the County. Liability Insurance. The County acquires insurance for liability claims. The County is responsible for the first $2,500 per occurrence for general liability and the first $5,000 per occurrence for Public Officials Liability, Law Enforcement Liability, errors, and omissions Note 24 – Accountability Deficit Net Positions and Fund Balances The following funds had deficits at June 30, 2014: Enterprise Fund: Special Tax Lighting District Fund – The net position deficit of $83,089 is due to rising utility cost. The Board of Commissioners are reviewing different fee structures to fund the deficit. Internal Service Fund: Fleet Fund – The net position deficit of $11,741 is due to rising repair cost. The future funding of the Fleet Fund will fund the deficit. Health Insurance Fund – The net position deficit of $548 is due to rising health care claims. The future funding of the Health Insurance Fund will fund the deficit.

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LOWNDES COUNTY, GEORGIA NOTES TO THE FINANCIAL STATEMENTS Note 25 – Assignment Georgia code section 48-8-91 requires local governments collecting local option sales tax to calculate a reduction of the local millage rate based on the prior year collections of the local option sales tax. The assignment of fund balance for property tax roll back, accounts for the annual collection of local option sales tax fund that will be used in the calculation for the next year’s millage rate reduction. Note 26 – New Funds A new capital projects fund which is titled the SPLOST VII Fund was established to account for the new SPLOST that began on January 1, 2014. These new funds are required to be maintained in a separate fund. A new agency fund which is tittle the Probate Court Agency Fund was establish to account for fund collected and disbursed in the Probate Court office. The Probate Court had processed all these funds through the County in prior years. Note 27 – Prior Year Adjustment

Valdosta-Lowndes Development

Authority Net Position, Beginning of Year 12,542,789$

Effect of removing unamortized bond costs from the Statement of Position (66,905)

Net Position, Restated 12,475,884$

Note 28 – Subsequent Event Subsequent events were evaluated through December 31, 2014, which is the date the financial statements were available to be issued.

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REQUIRED SUPPLEMENTAL INFORMATION

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES: Taxes 40,560,500$ 41,860,500$ 41,888,302$ 27,802$ Licenses and permits 4,000 4,000 4,229 229 Intergovernmental revenues 229,020 429,020 466,359 37,339 Charges for services 3,630,305 3,630,305 3,582,276 (48,029) Fines and forfeitures 1,725,000 1,755,000 1,757,452 2,452 Investment income 6,500 16,500 16,522 22 Miscellaneous 12,000 77,000 81,747 4,747

TOTAL REVENUES 46,167,325 47,772,325 47,796,887 24,562

EXPENDITURES:

GENERAL GOVERNMENT Board of Commissioners Personal services 144,774 146,774 146,671 (103) Supplies 1,501 1,501 1,622 121 Other services and charges 39,678 45,178 44,817 (361)

185,953 193,453 193,110 (343)

County Manager Personal services 293,924 310,924 310,253 (671) Supplies 150 150 116 (34) Other services and charges 7,968 7,968 8,563 595

302,042 319,042 318,932 (110)

County Clerk Personal services 172,892 174,392 174,127 (265) Supplies 1,228 1,228 362 (866) Other services and charges 4,953 4,953 5,993 1,040

179,073 180,573 180,482 (91)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) Board of Elections Personal services 309,459 330,459 340,947 10,488 Supplies 20,300 20,300 15,578 (4,722) Other services and charges 56,480 66,480 60,403 (6,077)

386,239 417,239 416,928 (311)

County Attorney Other services and charges 400,000 416,500 416,198 (302)

400,000 416,500 416,198 (302)

Finance Personal services 399,477 399,477 402,318 2,841 Supplies 2,500 2,500 4,100 1,600 Other services and charges 159,981 149,981 142,398 (7,583)

561,958 551,958 548,816 (3,142)

Human Resources Personal services 236,277 246,777 251,094 4,317

Supplies 3,700 3,700 3,360 (340) Other services and charges 612,003 632,003 627,626 (4,377)

851,980 882,480 882,080 (400)

Information Technology Services Personal services 496,235 496,235 493,792 (2,443) Supplies 18,350 18,350 18,719 369 Other services and charges 453,358 493,358 493,671 313 Capital outlay 200,000 335,000 335,912 912

1,167,943 1,342,943 1,342,094 (849)

General Facilities Supplies 9,990 9,990 2,367 (7,623) Other services and charges 116,800 122,300 129,806 7,506

126,790 132,290 132,173 (117)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

75

LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) Tax Commissioner Personal services 1,035,683 1,119,183 1,132,279 13,096

Supplies 19,920 19,920 19,921 1 Other services and charges 153,472 153,472 139,905 (13,567)

1,209,075 1,292,575 1,292,105 (470)

Board of Assessors Personal services 1,177,888 1,177,888 1,202,299 24,411 Supplies 21,369 21,369 18,619 (2,750) Other services and charges 172,281 274,781 252,702 (22,079)

1,371,538 1,474,038 1,473,620 (418)

Facilities Maintenance Personal services 961,421 1,020,421 1,042,819 22,398

Supplies 30,600 30,600 32,676 2,076 Other services and charges 2,281,117 2,281,117 2,256,027 (25,090)

3,273,138 3,332,138 3,331,522 (616)

Engineering Personal services 498,038 511,538 525,926 14,388 Supplies 10,652 10,652 10,566 (86) Other services and charges 76,198 76,198 61,567 (14,631)

584,888 598,388 598,059 (329)

Contingency Other services and charges 187,493 117,493 110,698 (6,795)

187,493 117,493 110,698 (6,795)

Total - General Government 10,788,110 11,251,110 11,236,817 (14,293)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) JUDICIAL Superior Court Personal services 304,611 365,611 359,386 (6,225)

Supplies 1,160 1,160 498 (662) Other services and charges 28,858 28,858 35,584 6,726

334,629 395,629 395,468 (161)

Clerk of Court Personal services 1,002,464 1,013,464 1,031,888 18,424 Supplies 9,000 9,000 11,592 2,592 Other services and charges 254,082 254,082 286,180 32,098 Capital outlay 60,330 60,330 6,438 (53,892)

1,325,876 1,336,876 1,336,098 (778)

District Attorney Other services and charges 723,887 723,887 722,677 (1,210)

723,887 723,887 722,677 (1,210)

District Court Administrator Other services and charges 4,800 4,800 4,800 -

4,800 4,800 4,800 -

State Court Personal services 695,590 717,590 718,293 703 Supplies 8,428 8,428 9,025 597 Other services and charges 79,492 79,492 78,029 (1,463)

783,510 805,510 805,347 (163)

Magistrate Court Personal services 629,355 684,855 674,531 (10,324) Supplies 13,861 13,861 16,172 2,311 Other services and charges 31,024 31,024 38,663 7,639

674,240 729,740 729,366 (374)

Probate Court Personal services 331,485 354,985 351,253 (3,732) Supplies 2,276 2,276 2,875 599 Other services and charges 15,784 15,784 18,513 2,729

349,545 373,045 372,641 (404)

Ankle Monitor Personal services 64,910 64,910 65,075 165 Supplies 1,050 1,050 754 (296) Other services and charges 78,532 68,532 67,474 (1,058)

144,492 134,492 133,303 (1,189)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) Juvenile Court Personal services 86,648 111,148 106,428 (4,720)

Other services and charges 16,900 16,900 20,967 4,067

103,548 128,048 127,395 (653)

Probation Other services and charges 3,904 10,904 10,688 (216)

3,904 10,904 10,688 (216)

Circuit Public Defender Other services and charges 812,000 814,000 813,478 (522)

812,000 814,000 813,478 (522)

Total - Judicial 5,260,431 5,456,931 5,451,261 (5,670)

PUBLIC SAFETY Sheriff Personal services 12,218,374 13,648,374 13,640,806 (7,568)

Supplies 79,504 94,504 95,257 753 Other services and charges 3,555,339 4,045,339 4,055,128 9,789 Capital outlay - 200,000 191,828 (8,172)

15,853,217 17,988,217 17,983,019 (5,198)

Animal Control Personal services 453,191 510,191 505,358 (4,833) Supplies 37,250 37,250 36,758 (492) Other services and charges 169,361 169,361 176,672 7,311 Capital outlay - 65,000 62,240 (2,760)

659,802 781,802 781,028 (774)

Emergency Medical Services

Other services and charges 878,623 878,623 878,623 -

878,623 878,623 878,623 -

Coroner Personal services 56,950 81,950 79,327 (2,623) Supplies 500 500 2,442 1,942 Other services and charges 23,658 35,658 35,981 323

81,108 118,108 117,750 (358)

Emergency Management Agency Personal services 81,305 87,805 87,435 (370) Supplies 1,300 5,800 5,596 (204) Other services and charges 52,552 68,552 68,525 (27)

135,157 162,157 161,556 (601)

Total - Public Safety 17,607,907 19,928,907 19,921,976 (6,931)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) PUBLIC WORKS Administration Personal services 335,837 337,337 341,851 4,514

Supplies 6,200 6,200 4,956 (1,244) Other services and charges 47,815 47,815 43,911 (3,904)

389,852 391,352 390,718 (634)

Road Maintenance Personal services 1,883,066 2,062,566 2,062,340 (226) Supplies 22,438 30,938 30,984 46 Other services and charges 1,099,566 1,239,566 1,240,095 529 Capital outlay - 13,000 12,048 (952)

3,005,070 3,346,070 3,345,467 (603)

Road Construction Personal services 475,855 476,355 476,262 (93) Supplies 1,345 1,345 1,688 343 Other services and charges 325,959 326,959 326,586 (373)

803,159 804,659 804,536 (123)

Traffic Signals

Other services and charges 153,900 166,400 166,074 (326)

153,900 166,400 166,074 (326)

Total - Public Works 4,351,981 4,708,481 4,706,795 (1,686)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) HEALTH AND WELFARE Feed The Elderly Other services and charges - 24,000 23,823 (177)

- 24,000 23,823 (177)

Mental Health Department Other services and charges 75,000 75,000 75,000 -

75,000 75,000 75,000 -

Public Health Department Other services and charges 335,000 335,000 330,634 (4,366)

335,000 335,000 330,634 (4,366)

Extension Services Supplies 2,800 2,800 2,829 29 Other services and charges 133,217 133,717 133,542 (175)

136,017 136,517 136,371 (146)

Family Services Other services and charges 124,500 124,500 124,500 -

124,500 124,500 124,500 -

Total - Health and Welfare 670,517 695,017 690,328 (4,689)

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

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LOWNDES COUNTY, GEORGIA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) CULTURE AND RECREATION Libraries Other services and charges 1,002,500 1,056,000 1,055,461 (539)

1,002,500 1,056,000 1,055,461 (539)

Parks and Recreation Authority Other services and charges 3,500,000 3,626,000 3,625,616 (384)

3,500,000 3,626,000 3,625,616 (384)

Total - Culture & Recreation 4,502,500 4,682,000 4,681,077 (923)

HOUSING AND DEVELOPMENT Equalization Board Other services and charges 15,000 15,000 26,652 11,652

15,000 15,000 26,652 11,652

Moody Support Group Other services and charges 30,000 30,000 18,360 (11,640)

30,000 30,000 18,360 (11,640)

Development Authority Other services and charges 3,000,000 3,000,000 2,902,315 (97,685)

3,000,000 3,000,000 2,902,315 (97,685)

Total - Housing & Development 3,045,000 3,045,000 2,947,327 (97,673)

TOTAL EXPENDITURES 46,226,446 49,767,446 49,635,581 (131,865)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (59,121) (1,995,121) (1,838,694) 156,427

OTHER FINANCING SOURCES (USES) Transfers In 889,000 889,000 889,000 -

Transfers Out (829,879) (829,879) (829,879) -

TOTAL OTHER FINANCING SOURCES (USES) 59,121 59,121 59,121 -

NET CHANGE IN FUND BALANCE - (1,936,000) (1,779,573) 156,427

FUND BALANCE, BEGINNING OF YEAR - 1,936,000 16,761,484 14,825,484

FUND BALANCES AT END OF YEAR -$ -$ 14,981,911$ 14,981,911$

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

81

LOWNDES COUNTY, GEORGIA NOTES TO BUDGETARY COMPARISON SCHEDULES For the Year Ended June 30, 2014 Note 1 - Budgetary Basis of Accounting While reporting financial position, results of operations, and changes in fund balances on the basis of generally accepted accounting principles (GAAP), the Budgetary Basis as provided by law is based upon accounting for certain transactions on a basis of cash receipts, disbursements, and encumbrances. The Statements of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual for the general and major special revenue funds are presented on the Budgetary Basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and the GAAP Basis are as follows:

1. Encumbrances are treated as expenditures under the Budgetary Basis.

There were no encumbrances for any fund for the year ending June 30, 2014.

82

LOWNDES COUNTY, GEORGIA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2014

SCHEDULE OF FUNDING PROGRESS – PENSION 2007-2013 (Unaudited)

UAAL as a

Actuarial Actuarial Unfunded Percentage of Calendar Value Accrued AAL Funded Covered Covered

Year of Assets Liability UAAL Ratio Payroll Payroll 2013 $ 29,886,972 $ 39,900,314 $ 10,013,342 74.9% $ 16,552,162 60.5% 2012 25,996,693 37,170,867 11,174,174 69.9% 16,550,770 67.5% 2011 23,810,554 34,722,635 10,912,081 68.6% 16,161,704 67.5% 2010 21,876,638 32,291,448 10,414,810 67.7% 15,438,775 67.5% 2009 21,092,177 29,391,168 8,298,991 71.8% 14,704,109 56.4% 2008 18,977,095 25,798,820 6,821,725 73.6% 13,630,463 50.0%

Note: See assumptions used for the schedule of Funding Progress in Note 11 to the financial statements.

SCHEDULE OF FUNDING PROGRESS – OPEB

2013 (Unaudited)

UAAL as a

Actuarial Actuarial Actuarial Unfunded Percentage Valuation Value Accrued AAL Funded Covered Covered

Date of Assets Liability UAAL Ratio Payroll Payroll 1/1/2011 $ - $ 26,402,926 $ 26,402,926 0.0% $ 20,155,927 130.99% 1/1/2013 $ - $ 28,918,129 $ 28,918,129 0.0% $ 20,085,501 143.98%

Note: See assumptions used for the schedule of Funding Progress in Note 13 to the financial statements.

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COMBINING AND INDIVIDUAL FUND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities. Capital Projects Special Sales Tax VI Fund – To account for the special purpose local option sales tax that was renewed for the sixth time by referendum. The revenue is restricted to the stated purposes of the referendum. Capital Projects Special Sales Tax VII Fund – To account for the special purpose local option sales tax that was renewed for the seventh time by referendum. The revenue is restricted to the stated purposes of the referendum.

LOWNDES COUNTY, GEORGIA CAPITAL PROJECTS SALES TAX VI FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Taxes 10,500,000$ 10,500,000$ 10,451,573$ (48,427)$ Investment income 5,000 5,000 13,090 8,090

TOTAL REVENUES 10,505,000 10,505,000 10,464,663 (40,337)

EXPENDITURES Current Public works - 400,000 796,554 396,554 Intergovernmental 5,250,000 5,250,000 4,591,376 (658,624) Debt service 8,100,000 8,100,000 8,265,125 165,125

TOTAL EXPENDITURES 13,350,000 13,750,000 13,653,055 (96,945)

EXCESS OF REVENUES OVER EXPENDITURES (2,845,000) (3,245,000) (3,188,392) 56,608

FUND BALANCE AT BEGINNING OF YEAR 2,845,000 3,245,000 5,740,363 2,495,363

FUND BALANCE AT END OF YEAR -$ -$ 2,551,971$ 2,551,971$

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

84

LOWNDES COUNTY, GEORGIA CAPITAL PROJECTS SALES TAX VII FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Taxes -$ 10,000,000$ 10,232,346$ 232,346$ Investment income - - 288 288

TOTAL REVENUES - 10,000,000 10,232,634 232,634

EXPENDITURES Current Public works - - 144,568 144,568 Intergovernmental - 6,000,000 5,974,667 (25,333) Capital outlay - 3,800,000 1,373,741 (2,426,259)

TOTAL EXPENDITURES - 9,800,000 7,492,976 (2,307,024)

EXCESS OF REVENUES OVER EXPENDITURES - 200,000 2,739,658 2,539,658

OTHER FINANCING SOURCES (USES): Transfers Out - (200,000) (81,390) 118,610

TOTAL OTHER FINANCING SOURCES (USES) - (200,000) (81,390) 118,610

NET CHANGE IN FUND BALANCE - - 2,658,268 2,658,268 FUND BALANCE AT BEGINNING OF YEAR - - - -

FUND BALANCE AT END OF YEAR -$ -$ 2,658,268$ 2,658,268$

Budgeted Amounts

See accompanying note to budgetary comparison schedules.

85

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted for specific purposes. Special Services Fund – To account for the revenues and expenditures that are derived and expended in the unincorporated areas of the County. Commissary Fund – To account for funds received through commissary services at the jail. Seizures Special Revenue – To account for funds received through drug seizures. Hotel/Motel Tax – To account for tax revenue accessed for hotel/motel accommodations. Intergovernmental Grants – To account for various grant revenues received. Jail Operations – To account for funds accessed with fines and designated for the operations of jails. 911 Emergency Telephone – To account for funds collected and designated for the operations of the 911 emergency services. Drug Abuse Treatment – To account for funds accessed with fines and designated for drug abuse education and treatment programs. Victim Assistance – To account for funds accessed with fines and designated for the assistance programs for victims of crime. Law Library – To account for funds accessed with fines and designated for the maintenance of a law library.

NONMAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities. Capital Projects Judicial Complex & Jail Fund - To account for the funds borrowed for the building of new Judicial and Administration Complex. Capital Projects Special Sales Tax V Fund – To account for the special purpose local option sales tax that was renewed for the fifth time by referendum. The revenue is restricted to the stated purposes of the referendum. Capital Projects Public Roads Fund – To account for LMIG road funds from the Georgia Department of Transportation. The revenue is restricted for road and bridge work.

LOWNDES COUNTY, GEORGIA ALL NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2014

Total Nonmajor Total Nonmajor Total Nonmajor Special Revenue Capital Projects Governmental

Funds Funds Funds ASSETS Equity in pooled cash and cash equivalents 1,377,108$ 1,237,219$ 2,614,327$ Cash and cash equivalents in segregated accounts 934,056 1,998,419 2,932,475 Certificate of deposit 388,708 - 388,708 Accounts receivable 662,254 - 662,254 Due from other governments 135,238 - 135,238

TOTAL ASSETS 3,497,364$ 3,235,638$ 6,733,002$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 430,288$ 326,618$ 756,906$ Accrued wages 91,995 - 91,995 Interfund payable 169,338 - 169,338

TOTAL LIABILITIES 691,621 326,618 1,018,239

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 7,622 - 7,622

TOTAL DEFERRED INFLOWS OF RESOURCES 7,622 - 7,622

FUND BALANCES (DEFICITS) Restricted for capital projects - 2,909,020 2,909,020 Restricted for jail operations 572,588 - 572,588 Restricted for tourism 71,688 - 71,688 Restricted for drug enforcement operations 973,562 - 973,562 Restricted for drug education and treatment 34,322 - 34,322 Restricted for law library 325,808 - 325,808 Restricted for victim assistance 27,397 - 27,397 Restricted for 911 emergency telephone 86,662 - 86,662 Assigned for unincorporated services 706,094 - 706,094 Unassigned - - -

TOTAL FUND BALANCES (DEFICITS) 2,798,121 2,909,020 5,707,141

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES 3,497,364$ 3,235,638$ 6,733,002$

See independent auditor’s report.

86

LOWNDES COUNTY, GEORGIA ALL NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ending June 30, 2014

Total Nonmajor Total Nonmajor Total Nonmajor Special Revenue Capital Project Governmental

Funds Funds Funds

REVENUES Taxes 3,795,205$ -$ 3,795,205$ Licenses and permits 126,578 - 126,578 Intergovernmental revenues 1,359,391 932,053 2,291,444 Charges for services 2,019,070 - 2,019,070 Fines and forfeitures 1,342,143 - 1,342,143 Investment income 14,768 3,523 18,291 Miscellaneous 525,536 - 525,536

TOTAL REVENUES 9,182,691 935,576 10,118,267

EXPENDITURES Current General government Legislative 132,749 - 132,749 Judicial 619,708 196,278 815,986 Public safety 6,702,213 - 6,702,213 Public works 187,282 320,616 507,898 Health and welfare 180,000 - 180,000 Housing and development 1,244,535 - 1,244,535 Intergovernmental - 753,767 753,767 Capital outlay - 768,211 768,211

TOTAL EXPENDITURES 9,066,487 2,038,872 11,105,359

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 116,204 (1,103,296) (987,092)

OTHER FINANCING SOURCES (USES): TRANSFERS IN 998,116 - 998,116

TRANSFERS (OUT) (603,237) - (603,237)

TOTAL OTHER FINANCING SOURCES (USES) 394,879 - 394,879

NET CHANGE IN FUND BALANCES 511,083 (1,103,296) (592,213)

FUND BALANCE, BEGINNING OF YEAR 2,287,038 4,012,316 6,299,354

FUND BALANCE, END OF YEAR 2,798,121$ 2,909,020$ 5,707,141$

See independent auditor’s report.

87

LOWNDES COUNTY, GEORGIA NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 2014

Seizures Intergovern- Special Special Hotel/Motel mental Services Commissary Revenues Tax Grants

ASSETS Equity in pooled cash and cash equivalents 711,330$ 492,653$ -$ 60,664$ 103,582$ Cash and cash equivalents in segregated accounts - - 736,130 - - Certificate of deposit - - 237,432 - - Receivables (net of allowance for doubtful accounts): Accounts 83,478 63,884 - 34,167 - Due from other governments - - - - 135,238

TOTAL ASSETS 794,808$ 556,537$ 973,562$ 94,831$ 238,820$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 47,402$ 20,264$ -$ 23,143$ 234,967$ Accrued wages 34,019 2,255 - - 3,524 Interfund payable - - - - -

TOTAL LIABILITIES 81,421 22,519 - 23,143 238,491

DEFERRED INFLOWS OF RESOURCES Unavailable revenue 7,293 - - - 329

TOTAL DEFERRED INFLOWS OF RESOURCES 7,293 - - - 329

FUND BALANCES Restricted for jail operations - 534,018 - - - Restricted for tourism - - - 71,688 - Restricted for drug enforcement operations - - 973,562 - - Restricted for drug education and treatment - - - - - Restricted for law library - - - - - Restricted for victim assistance - - - - - Restricted for 911 emergency telephone - - - - - Assigned for unincorporated services 706,094 - - - - Unassigned - - - - -

TOTAL FUND BALANCES 706,094 534,018 973,562 71,688 -

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 794,808$ 556,537$ 973,562$ 94,831$ 238,820$

See independent auditor’s report.

88

Drug 911 Jail Abuse Emergency Victim Law

Operations Treatment Telephone Assistance Library Total

-$ 8,444$ 105$ 330$ -$ 1,377,108$ - 25,878 - - 172,048 934,056 - - - - 151,276 388,708

89,519 - 359,389 29,333 2,484 662,254

- - - - - 135,238

89,519$ 34,322$ 359,494$ 29,663$ 325,808$ 3,497,364$

48,308$ -$ 55,883$ 321$ -$ 430,288$ 1,104 - 49,148 1,945 - 91,995 1,537 - 167,801 - - 169,338

50,949 - 272,832 2,266 - 691,621

- - - - - 7,622

- - - - - 7,622

38,570 - - - - 572,588 - - - - - 71,688 - - - - - 973,562 - 34,322 - - - 34,322 - - - - 325,808 325,808 - - - 27,397 - 27,397 - - 86,662 - - 86,662 - - - - - 706,094 - - - - - -

38,570 34,322 86,662 27,397 325,808 2,798,121

89,519$ 34,322$ 359,494$ 29,663$ 325,808$ 3,497,364$

89

LOWNDES COUNTY, GEORGIA NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ending June 30, 2014

Seizures Intergovern- Special Special Hotel/Motel mental Services Commissary Revenues Tax Grants

REVENUES Taxes 3,514,154$ -$ -$ 281,051$ -$ Licenses and permits 126,578 - - - - Intergovernmental revenue - - - - 624,094 Charges for services 25,615 216,584 - - - Fines and forfeitures - - 586,902 - - Investment income 34 - 1,694 - - Miscellaneous 4,267 495,080 - - -

TOTAL REVENUES 3,670,648 711,664 588,596 281,051 624,094

EXPENDITURES Current General Government Legislative 132,749 - - - - Judicial - - - - 316,993 Public safety 1,835,765 652,480 607,486 - 88,921 Public works 183,059 - - - 4,223 Health and welfare - - - - - Housing and development 628,921 - - 401,657 213,957

TOTAL EXPENDITURES 2,780,494 652,480 607,486 401,657 624,094

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 890,154 59,184 (18,890) (120,606) -

OTHER FINANCING SOURCES (USES): TRANSFERS IN - - - 168,237 -

TRANSFERS (OUT) (443,237) - - - -

TOTAL OTHER FINANCING SOURCES (USES) (443,237) - - 168,237 -

NET CHANGE IN FUND BALANCES 446,917 59,184 (18,890) 47,631 -

FUND BALANCE, BEGINNING OF YEAR 259,177 474,834 992,452 24,057 -

FUND BALANCE, END OF YEAR 706,094$ 534,018$ 973,562$ 71,688$ -$

See independent auditor’s report.

90

Drug 911 Jail Abuse Emergency Victim Law

Operations Treatment Telephone Assistance Library Total

-$ -$ -$ -$ -$ 3,795,205$ - - - - - 126,578 - 49,897 583,083 102,317 - 1,359,391 - - 1,776,871 - - 2,019,070

424,355 168,455 - 117,887 44,544 1,342,143 - - - - 13,040 14,768 - - 26,189 - - 525,536

424,355 218,352 2,386,143 220,204 57,584 9,182,691

- - - - - 132,749 - - - 237,509 65,206 619,708

431,548 - 3,086,013 - - 6,702,213 - - - - - 187,282 - 180,000 - - - 180,000 - - - - - 1,244,535

431,548 180,000 3,086,013 237,509 65,206 9,066,487

(7,193) 38,352 (699,870) (17,305) (7,622) 116,204

- - 829,879 - - 998,116 - - (160,000) - - (603,237)

- - 669,879 - - 394,879

(7,193) 38,352 (29,991) (17,305) (7,622) 511,083

45,763 (4,030) 116,653 44,702 333,430 2,287,038

38,570$ 34,322$ 86,662$ 27,397$ 325,808$ 2,798,121$

91

LOWNDES COUNTY, GEORGIA NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 2014

Public Judicial Roads Complex Sales Tax V Fund And Jail Fund Total

ASSETS Equity in pooled cash and cash equivalents 835,640$ 401,579$ -$ 1,237,219$ Cash and cash equivalents in segregated accounts - - 1,998,419 1,998,419

TOTAL ASSETS 835,640$ 401,579$ 1,998,419$ 3,235,638$

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 319,877$ 6,486$ 255$ 326,618$

TOTAL LIABILITIES 319,877 6,486 255 326,618

FUND BALANCES Restricted for capital projects 515,763 395,093 1,998,164 2,909,020

TOTAL FUND BALANCES 515,763 395,093 1,998,164 2,909,020

TOTAL LIABILITIES AND FUND BALANCES 835,640$ 401,579$ 1,998,419$ 3,235,638$

See independent auditor’s report.

92

LOWNDES COUNTY, GEORGIA NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECTS FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For The Year Ending June 30, 2014 Public Judicial

Roads Complex Sales Tax V Fund And Jail Fund Total

REVENUES Intergovernmental 932,053$ -$ -$ 932,053$ Investment income - - 3,523 3,523

TOTAL REVENUES 932,053 - 3,523 935,576

EXPENDITURES Current: General government Judicial - 196,278 - 196,278 Public works 318,326 - 2,290 320,616 Intergovernmental - - 753,767 753,767 Capital outlay 768,211 - - 768,211

TOTAL EXPENDITURES 1,086,537 196,278 756,057 2,038,872

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (154,484) (196,278) (752,534) (1,103,296)

FUND BALANCE, BEGINNING OF YEAR 670,247 591,371 2,750,698 4,012,316

FUND BALANCE, END OF YEAR 515,763$ 395,093$ 1,998,164$ 2,909,020$

See independent auditor’s report.

93

LOWNDES COUNTY, GEORGIA SPECIAL SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Taxes 3,460,000$ 3,460,000$ 3,514,154$ 54,154$ Licenses and permits 120,500 120,500 126,578 6,078 Charges for services 24,000 24,000 25,615 1,615 Investment income - - 34 34 Miscellaneous income - - 4,267 4,267

TOTAL REVENUES 3,604,500 3,604,500 3,670,648 66,148

EXPENDITURES Current General Government Legislative 56,232 56,232 132,749 76,517 Public safety 2,187,655 2,187,655 1,835,765 (351,890) Public works 173,831 173,831 183,059 9,228 Housing and development 605,319 605,319 628,921 23,602

TOTAL EXPENDITURES 3,023,037 3,023,037 2,780,494 (242,543)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 581,463 581,463 890,154 308,691

OTHER FINANCING SOURCES (USES) TRANSFERS IN (OUT) (443,237) (443,237) (443,237) -

TOTAL OTHER FINANCING SOURCES (USES) (443,237) (443,237) (443,237) -

REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) 138,226 138,226 446,917 308,691

FUND BALANCE AT, BEGINNING OF YEAR (138,226) (138,226) 259,177 397,403

FUND BALANCE AT END OF YEAR -$ -$ 706,094$ 706,094$

Budgeted Amounts

See independent auditor’s report.

94

LOWNDES COUNTY, GEORGIA COMMISSARY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Charges for services 326,500$ 326,500$ 216,584$ (109,916)$ Miscellaneous 300,000 330,000 495,080 165,080

TOTAL REVENUES 626,500 656,500 711,664 55,164

EXPENDITURES Current: Public safety 626,500 656,500 652,480 (4,020)

TOTAL EXPENDITURES 626,500 656,500 652,480 (4,020)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - 59,184 59,184

FUND BALANCE AT BEGINNING OF YEAR - - 474,834 474,834

FUND BALANCE AT END OF YEAR -$ -$ 534,018$ 534,018$

Budgeted Amounts

See independent auditor’s report.

95

LOWNDES COUNTY, GEORGIA SEIZURES SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Fines and forfeitures 1,000,000$ 1,000,000$ 586,902$ (413,098)$ Investment income - - 1,694 1,694

TOTAL REVENUES 1,000,000 1,000,000 588,596 (411,404)

EXPENDITURES Current: Public safety 1,000,000 1,000,000 607,486 (392,514)

TOTAL EXPENDITURES 1,000,000 1,000,000 607,486 (392,514)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (18,890) (18,890)

FUND BALANCE AT BEGINNING OF YEAR - - 992,452 992,452

FUND BALANCE AT END OF YEAR -$ -$ 973,562$ 973,562$

Budgeted Amounts

See independent auditor’s report.

96

LOWNDES COUNTY, GEORGIA HOTEL/MOTEL TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Taxes 225,000$ 235,000$ 281,051$ 46,051$

TOTAL REVENUES 225,000 235,000 281,051 46,051

EXPENDITURES Current: Housing and development 393,237 403,237 401,657 (1,580)

TOTAL EXPENDITURES 393,237 403,237 401,657 (1,580)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (168,237) (168,237) (120,606) 47,631

OTHER FINANCING SOURCES (USES) TRANSFER IN (OUT) 168,237 168,237 168,237 -

TOTAL OTHER FINANCING SOURCES (USES) 168,237 168,237 168,237 -

REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) - - 47,631 47,631

FUND BALANCE AT BEGINNING OF YEAR - - 24,057 24,057

FUND BALANCE AT END OF YEAR -$ -$ 71,688$ 71,688$

Budgeted Amounts

See independent auditor’s report.

97

LOWNDES COUNTY, GEORGIA INTERGOVERNMENTAL GRANT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Intergovernmental revenues 544,057$ 625,057$ 624,094 (963)$

TOTAL REVENUES 544,057 625,057 624,094 (963)

EXPENDITURES Current: General government Judicial 243,157 314,557 316,993 2,436 Public safety 80,900 90,500 88,921 (1,579) Public works 5,000 5,000 4,223 (777) Housing and development 215,000 215,000 213,957 (1,043)

TOTAL EXPENDITURES 544,057 625,057 624,094 (963)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - - -

FUND BALANCE AT BEGINNING OF YEAR - - - -

FUND BALANCE AT END OF YEAR -$ -$ -$ -$

Budgeted Amounts

See independent auditor’s report.

98

LOWNDES COUNTY, GEORGIA JAIL OPERATIONS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Fines and forfeitures 510,000$ 510,000$ 424,355$ (85,645)$

TOTAL REVENUES 510,000 510,000 424,355 (85,645)

EXPENDITURES Current: Public safety 660,193 660,193 431,548 (228,645)

TOTAL EXPENDITURES 660,193 660,193 431,548 (228,645)

EXCESS OF REVENUES OVER(UNDER) EXPENDITURES (150,193) (150,193) (7,193) 143,000

FUND BALANCE AT BEGINNING OF YEAR 150,193 150,193 45,763 (104,430)

FUND BALANCE AT END OF YEAR -$ -$ 38,570$ 38,570$

Budgeted Amounts

See independent auditor’s report.

99

LOWNDES COUNTY, GEORGIA DRUG ABUSE TREATMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Intergovernmental -$ -$ 49,897$ 49,897$ Fines and forfeitures 189,000 189,000 168,455 (20,545)

TOTAL REVENUES 189,000 189,000 218,352 29,352

EXPENDITURES Current: Health and welfare 180,000 180,000 180,000 -

TOTAL EXPENDITURES 180,000 180,000 180,000 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,000 9,000 38,352 29,352

FUND BALANCE AT BEGINNING OF YEAR (9,000) (9,000) (4,030) 4,970

FUND BALANCE AT END OF YEAR -$ -$ 34,322$ 34,322$

Budgeted Amounts

See independent auditor’s report.

100

LOWNDES COUNTY, GEORGIA 911 EMERGENCY TELEPHONE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Intergovernmental revenues 621,261$ 621,261$ 583,083$ (38,178)$ Charges for services 1,600,000 1,655,000 1,776,871 121,871 Miscellaneous income 25,000 25,000 26,189 1,189

TOTAL REVENUES 2,246,261 2,301,261 2,386,143 84,882

EXPENDITURES Current Public safety 2,916,140 3,086,140 3,086,013 (127)

TOTAL EXPENDITURES 2,916,140 3,086,140 3,086,013 (127)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (669,879) (784,879) (699,870) 85,009

OTHER FINANCING SOURCES (USES) TRANSFERS IN 829,879 829,879 829,879 -

TRANSFERS (OUT) (160,000) (160,000) (160,000) -

TOTAL OTHER FINANCING SOURCES (USES) 669,879 669,879 669,879 -

REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING SOURCES (USES) - (115,000) (29,991) 85,009

FUND BALANCE AT BEGINNING OF YEAR - 115,000 116,653 1,653

FUND BALANCE AT END OF YEAR -$ -$ 86,662$ 86,662$

Budgeted Amounts

See independent auditor’s report.

101

LOWNDES COUNTY, GEORGIA VICTIM ASSISTANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Intergovernmental 94,500$ 94,500$ 102,317$ 7,817$ Fines and forfeitures 124,000 124,000 117,887 (6,113)

TOTAL REVENUES 218,500 218,500 220,204 1,704

EXPENDITURES Current: General Government Judicial 243,227 243,227 237,509 (5,718)

TOTAL EXPENDITURES 243,227 243,227 237,509 (5,718)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (24,727) (24,727) (17,305) 7,422

FUND BALANCE AT BEGINNING OF YEAR 24,727 24,727 44,702 19,975

FUND BALANCE AT END OF YEAR -$ -$ 27,397$ 27,397$

Budgeted Amounts

See independent auditor’s report.

102

LOWNDES COUNTY, GEORGIA LAW LIBRARY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Fines and forfeitures 100,000$ 100,000$ 44,544$ (55,456)$ Investment income - - 13,040 13,040

TOTAL REVENUES 100,000 100,000 57,584 (42,416)

EXPENDITURES Current: General Government Judicial 100,000 100,000 65,206 (34,794)

TOTAL EXPENDITURES 100,000 100,000 65,206 (34,794)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (7,622) (7,622)

FUND BALANCE AT BEGINNING OF YEAR - - 333,430 333,430

FUND BALANCE AT END OF YEAR -$ -$ 325,808$ 325,808$

Budgeted Amounts

See independent auditor’s report.

103

LOWNDES COUNTY, GEORGIA JUDICIAL COMPLEX AND JAIL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Investment income -$ -$ -$ -$

TOTAL REVENUES - - - -

EXPENDITURES Current General Government Judicial 800,000 800,000 196,278 (603,722)

TOTAL EXPENDITURES 800,000 800,000 196,278 (603,722)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (800,000) (800,000) (196,278) 603,722

FUND BALANCE AT BEGINNING OF YEAR 800,000 800,000 591,371 (208,629)

FUND BALANCE AT END OF YEAR -$ -$ 395,093$ 395,093$

Budgeted Amounts

See independent auditor’s report.

104

LOWNDES COUNTY, GEORGIA CAPITAL PROJECTS SALES TAX V FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For The Year Ended June 30, 2014

Variance With Final Budget

Original Final Actual Over (Under) REVENUES Investment income 2,500$ 2,500$ 3,523$ 1,023$

TOTAL REVENUES 2,500 2,500 3,523 1,023

EXPENDITURES Current Public works - - 2,290 2,290 Intergovernmental 1,800,000 1,800,000 753,767 (1,046,233)

TOTAL EXPENDITURES 1,800,000 1,800,000 756,057 (1,043,943)

EXCESS OF EXPENDITURES OVER (UNDER) REVENUES (1,797,500) (1,797,500) (752,534) 1,044,966

FUND BALANCE AT BEGINNING OF YEAR 1,797,500 1,797,500 2,750,698 953,198

FUND BALANCE AT END OF YEAR -$ -$ 1,998,164$ 1,998,164$

Budgeted Amounts

See independent auditor’s report.

105

LOWNDES COUNTY, GEORGIA CAPITAL PROJECTS PUBLIC ROADS FUND SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL For the Fiscal Year Ended June 30, 2014 Variance With

Final Budget Original Final Actual Over (Under)

REVENUES Intergovernmental revenues -$ 1,100,000$ 932,053$ (167,947)$

TOTAL REVENUES - 1,100,000 932,053 (167,947)

EXPENDITURES Current: Public works - - 318,326 318,326 Capital outlay - 1,100,000 768,211 (331,789)

TOTAL EXPENDITURES - 1,100,000 1,086,537 (13,463)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (154,484) (154,484)

FUND BALANCE AT BEGINNING OF YEAR - - 670,247 670,247

FUND BALANCE AT END OF YEAR -$ -$ 515,763$ 515,763$

Budgeted Amounts

See independent auditor’s report.

106

OTHER ENTERPRISE FUNDS

Enterprise Funds are used to account for any activity for which a fee is charged to external users of good or services. Landfill Fund – to account for solid waste host fees collected and for post-closure care cost of the closed landfill. Special Tax Lighting District – to account for fees collected for street lighting in special districts in the County.

LOWNDES COUNTY, GEORGIA OTHER ENTERPRISE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2014

Special Tax Landfill Lighting District

Fund Fund Total ASSETS CURRENT ASSETS Equity in pooled cash and cash equivalents 1,007,956$ -$ 1,007,956$ Receivables (net of allowance for doubtful accounts Accounts 17,912 832 18,744

TOTAL CURRENT ASSETS 1,025,868 832 1,026,700

NONCURRENT ASSETS Capital Assets Land 203,639 - 203,639

TOTAL NONCURRENT ASSETS 203,639 - 203,639

TOTAL ASSETS 1,229,507 832 1,230,339

LIABILITIES CURRENT LIABILITIES Accounts payable 1,712 25,248 26,960 Interfund payable - 58,673 58,673 Current portion of postclosure cost 72,884 - 72,884

TOTAL CURRENT LIABILITIES 74,596 83,921 158,517

LONG-TERM LIABILITIES Postclosure cost 801,727 - 801,727

TOTAL LONG-TERM LIABILITIES 801,727 - 801,727

TOTAL LIABILITIES 876,323 83,921 960,244

NET POSITION Investment in capital assets 203,639 - 203,639 Unrestricted 149,545 (83,089) 66,456

TOTAL NET POSITION 353,184$ (83,089)$ 270,095$

See independent auditor’s report.

107

LOWNDES COUNTY, GEORGIA OTHER ENTERPRISE FUNDS COMBINING STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION For The Year Ending June 30, 2014

Special Tax Landfill Lighting District

Fund Fund Total OPERATING REVENUES Charges for services -$ 253,546$ 253,546$ Other income 361,087 - 361,087

TOTAL OPERATING REVENUES 361,087 253,546 614,633

OPERATING EXPENSES Contractual services 68,913 295,855 364,768

TOTAL OPERATING EXPENSES 68,913 295,855 364,768

OPERATING INCOME (LOSS) 292,174 (42,309) 249,865

TRANSFERS OUT (104,000) - (104,000)

CHANGE IN NET POSITION 188,174 (42,309) 145,865

NET POSITION AT BEGINNING OF YEAR 165,010 (40,780) 124,230

NET POSITION AT END OF YEAR 353,184$ (83,089)$ 270,095$

See independent auditor’s report.

108

LOWNDES COUNTY, GEORGIA OTHER ENTERPRISE FUNDS COMBINING STATEMENTS OF CASH FLOWS For The Year Ending June 30, 2014

Special Tax Landfill Lighting District

Fund Fund Total Increase in Cash and Cash Equivalents Cash Flows From Operating Activities Cash received from other customers -$ 253,005$ 253,005$ Cash received from other income 404,907 - 404,907 Cash received from other interfund transactions - 42,102 42,102 Cash payments for contractual services (126,728) (295,107) (421,835)

Net Cash Provided by Operating Activities 278,179 - 278,179

Cash Flows From Noncapital Financing Activities Cash payments for transfers out (104,000) - (104,000)

Net Cash (Used For) Noncapital Financing Activities (104,000) - (104,000)

Net Increase in Cash and Cash Equivalents 174,179 - 174,179

Cash and Cash Equivalents at Beginning of Year 833,777$ -$ 833,777

Cash and Cash Equivalents at End of Year 1,007,956$ -$ 1,007,956$

Equity in pooled cash and cash equivalents 1,007,956$ -$ 1,007,956$

Total Cash and Cash Equivalents 1,007,956$ -$ 1,007,956$

See independent auditor’s report.

109

LOWNDES COUNTY, GEORGIA OTHER ENTERPRISE FUNDS COMBINING STATEMENTS OF CASH FLOWS For The Year Ending June 30, 2014

Special Tax Landfill Lighting District

Fund Fund Total Reconciliation of Operating Income (Loss) To Net Cash Provided by Operating Activities Operating Income (Loss) 292,174$ (42,309)$ 249,865$

Adjustments to Reconcile Operating Income (Loss) To Net Cash Provided by Operating Activities Changes in Assets and Liabilities: (Increase) decrease in accounts receivable 43,822 (541) 43,281 Increase in accounts payable 1,065 748 1,813 Increase in interfund payable - 42,102 42,102 (Decrease) in accrued liabilities (58,882) - (58,882)

Net Cash Provided By Operating Activities 278,179$ -$ 278,179$

See independent auditor’s report.

110

INTERNAL SERVICE FUNDS

Internal service funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Equipment Operations – to account for charges to other funds for the maintenance and repair of County equipment. Health Insurance – to account for charges to other funds and contributions from employees and for the payment of health insurance premiums and benefits. Fleet Manager – to account for charges to other funds for the use of vehicles and equipment purchased through the fleet manager fund. Workers Compensation – to account for charges to other funds and contributions from employees and for the payment of workers compensation premiums and benefits.

LOWNDES COUNTY, GEORGIA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2014

Health Workers Fleet Equipment Insurance Compensation Manager

Fund Fund Fund Fund Total ASSETS Current Assets Equity in pooled cash and cash equivalents 16,524$ 336,434$ 702,215$ -$ 1,055,173$ Receivables (net of allowance for doubtful accounts Accounts 34,652 1,638 - - 36,290 Prepaid expense - - 115,914 - 115,914 Inventory - - - 352,420 352,420

TOTAL CURRENT ASSETS 51,176 338,072 818,129 352,420 1,559,797

Noncurrent Assets Capital Assets Depreciable capital assets, net - - - 637,882 637,882

TOTAL NONCURRENT ASSETS - - - 637,882 637,882

TOTAL ASSETS 51,176 338,072 818,129 990,302 2,197,679

LIABILITIES Current Liabilities Accounts payable 9,873 548 153 229,039 239,613 Accrued liabilities 10,107 338,072 510,000 - 858,179 Compensated absences payable 8,948 - - - 8,948 Accrued interest payable - - - 179 179 Interfund payable - - - 719,525 719,525 Current portion of capital lease obligations - - - 16,400 16,400

TOTAL CURRENT LIABILITIES 28,928 338,620 510,153 965,143 1,842,844

Long-Term Liabilities Compensated absences payable 7,031 - - - 7,031 Capital lease obligations - - - 36,900 36,900

TOTAL LONG-TERM LIABILITIES 7,031 - - 36,900 43,931

TOTAL LIABILITIES 35,959 338,620 510,153 1,002,043 1,886,775

NET POSITION Invested in capital assets, net of related debt - - - 584,582 584,582 Unrestricted 15,217 (548) 307,976 (596,323) (273,678)

TOTAL NET POSITION 15,217$ (548)$ 307,976$ (11,741)$ 310,904$

See independent auditor’s report.

111

LOWNDES COUNTY, GEORGIA INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION For The Year Ending June 30, 2014

Health Workers Fleet Equipment Insurance Compensation Manager

Fund Fund Fund Fund Total OPERATING REVENUES Charges for services 515,616$ 6,369,788$ 482,370$ 2,597,800$ 9,965,574$

TOTAL OPERATING REVENUES 515,616 6,369,788 482,370 2,597,800 9,965,574

OPERATING EXPENSES Personal services 286,862 - - - 286,862 Payroll taxes 20,319 - - - 20,319 Fringe benefits 126,586 - - - 126,586 Contractual services 51,463 - - - 51,463 Insurance and bond - 6,364,637 483,290 - 6,847,927 Materials and supplies 22,356 - - 2,914,725 2,937,081 Depreciation - - - 416,290 416,290

TOTAL OPERATING EXPENSES 507,586 6,364,637 483,290 3,331,015 10,686,528

OPERATING INCOME (LOSS) 8,030 5,151 (920) (733,215) (720,954)

NON-OPERATING REVENUES (EXPENSES) Interest revenue - 21 - - 21 Interest expense - - - (2,740) (2,740)

TOTAL NON-OPERATING REVENUES (EXPENSES) - 21 - (2,740) (2,719)

CHANGE IN NET POSITION 8,030 5,172 (920) (735,955) (723,673)

NET POSITION AT BEGINNING OF YEAR 7,187 (5,720) 308,896 724,214 1,034,577

NET POSITION AT END OF YEAR 15,217$ (548)$ 307,976$ (11,741)$ 310,904$ See independent auditor’s report.

112

LOWNDES COUNTY, GEORGIA INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS For The Year Ending June 30, 2014

Health Workers Fleet Equipment Insurance Compensation Manager

Fund Fund Fund Fund Total Increase (Decrease) in Cash and Cash Equivalents Cash Flows From Operating Activities Cash received from other funds for services 503,053$ 6,653,283$ 482,371$ 2,597,800$ 10,236,507$ Cash payments for personal services (283,662) - - - (283,662) Cash payments for payroll taxes (20,319) - - - (20,319) Cash payments for fringe benefits (126,586) - - - (126,586) Cash payments for contractual services (51,463) - - - (51,463) Cash payments for insurance and bond - (6,648,087) (537,519) - (7,185,606) Cash payments for materials and supplies (13,433) - - (2,578,838) (2,592,271)

Net Cash Provided by (Used for) Operating Activities 7,590 5,196 (55,148) 18,962 (23,400)

Cash Flows From Capital and Related Financing Activities Cash payments for principal and interest on capital leases - - - (19,196) (19,196)

Net Cash (Used For) Capital and Related Financing Activities - - - (19,196) (19,196)

Cash Flows From Investing Activities Cash received from interest - 21 - - 21

Net Cash Flows Provided By Investing Activities - 21 - - 21

Net Increase (decrease) in Cash and Cash Equivalents 7,590 5,217 (55,148) (234) (42,575)

Cash and Cash Equivalents at Beginning of Year 8,934$ 331,217$ 757,363$ 234$ 1,097,748

Cash and Cash Equivalents at End of Year 16,524$ 336,434$ 702,215$ -$ 1,055,173$

Equity in pooled cash and cash equivalents 16,524$ 336,434$ 702,215$ -$ 1,055,173$

Total Cash and Cash Equivalents 16,524$ 336,434$ 702,215$ -$ 1,055,173$

See independent auditor’s report.

113

LOWNDES COUNTY, GEORGIA INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS For The Year Ending June 30, 2014

Health Workers Fleet Equipment Insurance Compensation Manager

Fund Fund Fund Fund Total Reconciliation of Operating Income (Loss) To Net Cash Provided by (Used For) Operating Activities Operating Income (Loss) 8,030$ 5,151$ (920)$ (733,215)$ (720,954)$

Adjustments to Reconcile Operating Income (Loss) To Net Cash Provided by (Used For) Operating Activities Depreciation - - - 416,290 416,290 Changes in Assets and Liabilities: (Increase) decrease in accounts receivable (12,563) 283,495 - - 270,932 (Increase) in prepaid expense - - (7,228) - (7,228) Decrease in inventory - - - 64,374 64,374 Increase (decrease) in accounts payable 8,923 (283,450) - 12,759 (261,768) Increase in compensated absences payable 1,846 - - - 1,846 Increase in interfund payable - - - 258,754 258,754 Increase (decrease) in accrued expenses 1,354 - (47,000) - (45,646)

Net Cash Provided By (Used For) Operating Activities 7,590$ 5,196$ (55,148)$ 18,962$ (23,400)$

See independent auditor’s report.

114

FIDUCIARY FUNDS

Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or funds. Tax Commissioner - to account for the collection of property taxes, motor vehicle taxes and title fees and mobile home fees, etc. which are disbursed to various taxing units. Clerk of Superior Court - to account for the collection of various fines, forfeitures, jury fund receipts, real estate transfer taxes, recording of intangibles, fees, civil awards, etc. which are disbursed to other parties. Magistrate Court - to account for the collection of fees in jurisdiction of small claims courts, which are disbursed to other parties. Probate Court - to account for the collection of fees in jurisdiction of the probate court, which are disbursed to other parties. Sheriff - to account for collection of cash bonds, fines, forfeitures, etc. which are disbursed to other parties. Development Authority - to account for collection of property taxes designated for the Valdosta-Lowndes Development Authority.

LOWNDES COUNTY, GEORGIA AGENCY FUNDS COMBINING STATEMENTS OF ASSETS AND LIABILITIES June 30, 2014

OFFICE CLERK MAGIS- OFFICE OF TAX OF TRATE PROBATE OF DEVELOPMENT

COMMISSIONER COURT COURT COURT SHERIFF AUTHORITY TOTAL

ASSETS Cash 344,643$ 1,545,782$ 129,983$ 19,706$ 1,016,681$ 921,313$ 3,978,108$ Due from others 11,792 - - - - 30,854 42,646

TOTAL ASSETS 356,435$ 1,545,782$ 129,983$ 19,706$ 1,016,681$ 952,167$ 4,020,754$

LIABILITIES AND FUND BALANCE LIABILITIES Due to others 356,435$ 465,629$ 56,932$ 19,352$ 445$ -$ 898,793$ Collections held in escrow - 1,080,153 73,051 354 1,016,236 952,167 3,121,961

TOTAL LIABILITIES 356,435 1,545,782 129,983 19,706 1,016,681 952,167 4,020,754

NET POSITION -$ -$ -$ -$ -$ -$ -$

AGENCY FUNDS

See independent auditor’s report.

115

LOWNDES COUNTY, GEORGIA AGENCY FUNDS COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES For The Year Ending June 30, 2014

Balance Balance July 1, 2013 Additions Deductions June 30, 2014

OFFICE OF TAX COMMISSIONER

ASSETS Cash 299,654$ 95,305,347$ 95,260,358$ 344,643$ Due from others 7,574 4,218 - 11,792

TOTAL ASSETS 307,228$ 95,309,565$ 95,260,358$ 356,435$

LIABILITIES Due to others 307,228$ 95,309,565$ 95,260,358$ 356,435$

TOTAL LIABILITIES 307,228$ 95,309,565$ 95,260,358$ 356,435$

CLERK OF COURT

ASSETS Cash 1,219,924$ 8,669,216$ 8,343,358$ 1,545,782$

TOTAL ASSETS 1,219,924$ 8,669,216$ 8,343,358$ 1,545,782$

LIABILITIES Due to others 294,631$ 6,343,231$ 6,172,233$ 465,629$ Collections held in escrow 925,293 2,325,985 2,171,125 1,080,153

TOTAL LIABILITIES 1,219,924$ 8,669,216$ 8,343,358$ 1,545,782$

MAGISTRATE COURT

ASSETS Cash 127,462$ 1,355,832$ 1,353,311$ 129,983$

TOTAL ASSETS 127,462$ 1,355,832$ 1,353,311$ 129,983$

LIABILITIES Due to others 37,445$ 592,021$ 572,534$ 56,932$ Collections held in escrow 90,017 763,811 780,777 73,051

TOTAL LIABILITIES 127,462$ 1,355,832$ 1,353,311$ 129,983$

See independent auditor’s report.

116

LOWNDES COUNTY, GEORGIA AGENCY FUNDS COMBINING STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES - CONTINUED For The Year Ending June 30, 2014

Balance Balance July 1, 2013 Additions Deductions June 30, 2014

PROBATE COURT

ASSETS Cash -$ 277,563$ 257,857$ 19,706$

TOTAL ASSETS -$ 277,563$ 257,857$ 19,706$

LIABILITIES Due to others -$ 19,352$ -$ 19,352$ Collections held in escrow - 258,211 257,857 354

TOTAL LIABILITIES -$ 277,563$ 257,857$ 19,706$

OFFICE OF SHERIFF

ASSETS Cash 1,459,314$ 3,537,638$ 3,980,271$ 1,016,681$

TOTAL ASSETS 1,459,314$ 3,537,638$ 3,980,271$ 1,016,681$

LIABILITIES Due to others 625$ 107,308$ 107,488$ 445$ Collections held in escrow 1,458,689 3,430,330 3,872,783 1,016,236

TOTAL LIABILITIES 1,459,314$ 3,537,638$ 3,980,271$ 1,016,681$

DEVELOPMENT AUTHORITY

ASSETS Cash 680,789$ 2,665,399$ 2,424,875$ 921,313$ Due from others 38,014 - 7,160 30,854

TOTAL ASSETS 718,803$ 2,665,399$ 2,432,035$ 952,167$

LIABILITIES Collections held in escrow 718,803$ 2,665,399$ 2,432,035$ 952,167$

TOTAL LIABILITIES 718,803$ 2,665,399$ 2,432,035$ 952,167$

See independent auditor’s report.

117

STATISTICAL SECTION

Lowndes County, Georgia Statistical Section

(Unaudited)

This part of Lowndes County’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. This section included data for the County only and does not include the County’s discretely presented component units. This information has not been audited by the independent auditor. Financial Trends

These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time.

Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, the property taxes.

Debt Capacity

These schedules contain information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the government provides and the activities it performs.

Source: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Governmental Activities Net investment in capital assets 96,669,665$ 91,132,521$ 95,694,310$ 104,718,159$ 119,875,420$ 123,166,325$ 89,328,068$ 136,074,764$ 139,608,284$ 20,178,997$ Restricted 10,216,435 7,429,021 7,965,905 7,413,141 39,599,831 17,045,363 64,133,172 32,758,317 33,678,846 45,962,877 Unrestricted 4,591,882 12,639,719 11,292,055 16,994,681 (15,869,262) 18,934,414 20,012,424 19,476,897 19,258,403 19,117,048

Total governmental activities net assets 111,477,982$ 111,201,261$ 114,952,270$ 129,125,981$ 143,605,989$ 159,146,102$ 173,473,664$ 188,309,978$ 192,545,533$ 85,258,922$

Business Activities Net investment in capital assets 30,405,797$ 30,583,047$ 31,716,380$ 32,213,264$ 32,073,785$ 27,278,056$ 29,097,651$ 20,508,113$ 19,645,353$ 18,778,753$ Restricted - - - - - - - - - - Unrestricted 2,532,188 1,578,791 810,273 264,522 (1,049,626) 58,067 (4,248,227) 1,462,030 1,192,739 1,492,612

Total business activities net assets 32,937,985$ 32,161,838$ 32,526,653$ 32,477,786$ 31,024,159$ 27,336,123$ 24,849,424$ 21,970,143$ 20,838,092$ 20,271,365$

Primary Government Net investment in capital assets 127,075,462$ 121,715,568$ 127,410,690$ 136,931,423$ 151,949,205$ 150,444,381$ 118,425,719$ 156,582,877$ 159,253,637$ 38,957,750$ Restricted 10,216,435 7,429,021 7,965,905 7,413,141 39,599,831 17,045,363 64,133,172 32,758,317 33,678,846 45,962,877 Unrestricted 7,124,070 14,218,510 12,102,328 17,259,203 (16,918,888) 18,992,481 15,764,197 20,938,927 20,451,142 20,609,660

Total primary government net assets 144,415,967$ 143,363,099$ 147,478,923$ 161,603,767$ 174,630,148$ 186,482,225$ 198,323,088$ 210,280,121$ 213,383,625$ 105,530,287$

Fiscal Year Ending June 30,

Lowndes County, Georgia Net Position by Component (Unaudited),

Last Ten Fiscal Years (accrual basis of accounting)

118

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Expenses Governmental activities: General government Legislative and executive 13,347,150$ 12,678,632$ 13,453,075$ 11,563,172$ 10,653,696$ 11,956,577$ 12,463,625$ 10,465,920$ 11,177,261$ 9,221,090$ Judicial 5,682,778 5,201,728 5,857,655 6,816,400 5,760,263 5,753,187 5,181,461 7,225,812 5,118,673 4,562,225 Public safety 28,733,508 27,846,930 28,137,430 26,158,677 25,992,484 27,119,295 27,998,314 24,481,770 21,206,388 20,728,816 Public works 20,187,909 26,622,355 35,052,487 36,895,481 27,110,901 26,912,286 32,747,448 29,982,222 51,607,159 17,538,326 Health and welfare 1,574,191 1,357,428 898,284 1,041,394 1,256,269 1,368,270 1,270,348 2,201,424 1,276,484 1,634,299 Culture and recreation 4,777,631 4,577,105 4,519,407 1,010,085 1,023,310 1,804,227 4,578,273 4,324,334 4,152,212 4,191,985 Housing and development 4,198,718 4,390,318 4,221,064 2,087,190 1,327,969 1,880,504 1,395,805 665,736 498,200 471,505 Interest on long-term debt 604,908 874,565 1,523,932 1,754,844 2,061,176 2,192,384 523,860 564,813 689,391 709,991

Total governmental activities expenses 79,106,793 83,549,061 93,663,334 87,327,243 75,186,068 78,986,730 86,159,134 79,912,031 95,725,768 59,058,237

Business-type activities: Water and sewer 4,455,130 4,781,971 4,396,261 4,415,893 4,137,154 4,158,625 4,144,229 3,843,855 4,918,872 4,020,234 Landfill 68,913 46,210 43,772 53,471 83,421 115,352 26,461 46,285 465,867 414,384 Special Tax Lighting District 295,855 290,639 283,848 270,396 278,128 228,778 266,749 197,085 208,478 176,898 Sanitation Fund - 660,737 951,209 941,658 1,031,496 1,068,988 1,176,208 1,109,644 - -

Total business-type activities expenses 4,819,898 5,779,557 5,675,090 5,681,418 5,530,199 5,571,743 5,613,647 5,196,869 5,593,217 4,611,516

Total primary government expenses 83,926,691 89,328,618 99,338,424 93,008,661 80,716,267 84,558,473 91,772,781 85,108,900 101,318,985 63,669,753

Program Revenues Governmental activities: Charges for services: Legislative and executive 1,144,930$ 1,054,379$ 1,039,256$ 979,628$ 1,206,632$ 683,049$ 2,531,685$ 2,442,466$ 4,199,068$ 2,231,681$ Judicial 4,094,919 4,529,884 4,714,612 3,155,568 2,939,970 3,501,129 3,096,093 3,082,091 3,246,901 3,854,671 Public safety 3,512,034 3,396,496 3,988,679 5,240,752 5,432,211 5,133,580 5,267,853 4,127,647 5,104,745 4,579,833 Public works 68,522 61,623 73,918 31,661 56,506 268,345 183,010 222,941 302,800 824,432 Health and welfare 11,342 12,839 36,917 215,826 211,695 199,417 275,563 297,643 253,018 372,372 Housing and development - - - - - - 62,165 42,120 - - Operating grants and contributions 1,676,080 1,952,415 1,754,554 1,140,547 1,881,033 2,735,602 2,210,516 3,986,582 484,472 631,537 Capital grants and contributions 1,129,912 1,859,509 1,779,080 2,829,238 765,160 1,296,117 1,592,054 1,696,917 8,042 405,496

Total governmental activities program revenues 11,637,739 12,867,145 13,387,016 13,593,220 12,493,207 13,817,239 15,218,939 15,898,407 13,599,046 12,900,022

Business-type activities: Charges for services: Water and sewer 5,353,852 4,938,717 5,282,108 5,281,592 5,065,995 3,639,943 3,789,692 3,666,766 3,166,748 2,789,348 Landfill 361,087 435,720 411,070 811,150 624,153 462,824 496,554 520,215 642,351 607,462 Special tax lighting district 253,546 243,043 211,058 191,349 189,240 170,691 157,377 160,359 156,244 128,275 Sanitation fund - 299,467 594,198 585,115 578,802 86,732 95,217 34,405 - -

Total business-type activities program revenues 5,968,485 5,916,947 6,498,434 6,869,206 6,458,190 4,360,190 4,538,840 4,381,745 3,965,343 3,525,085

Total primary government program revenues 17,606,224$ 18,784,092$ 19,885,450$ 20,462,426$ 18,951,397$ 18,177,429$ 19,757,779$ 20,280,152$ 17,564,389$ 16,425,107$

Lowndes County, Georgia Changes in Net Position (Unaudited),

Last Ten Years (accrual basis of accounting)

Fiscal Year Ending June 30,

119

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Net (Expense) Revenue Governmental activities (67,469,054)$ (70,681,916)$ (80,276,318)$ (73,734,023)$ (62,692,861)$ (65,169,491)$ (70,940,195)$ (64,013,624)$ (82,126,722)$ (46,158,215)$ Business-type activities 1,148,587 137,390 823,344 1,187,788 927,991 (1,211,553) (1,074,807) (815,124) (1,627,874) (1,086,431)

Total primary government net expense (66,320,467)$ (70,544,526)$ (79,452,974)$ (72,546,235)$ (61,764,870)$ (66,381,044)$ (72,015,002)$ (64,828,748)$ (83,754,596)$ (47,244,646)$

General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes 29,334,593$ 28,017,047$ 27,896,942$ 21,175,180$ 20,793,727$ 19,843,708$ 22,622,116$ 21,432,904$ 19,871,336$ 19,271,632$ Alcoholic beverage taxes 511,272 486,800 484,361 511,846 508,709 534,897 527,476 524,243 504,712 495,211 Occupational taxes 603,078 544,984 606,505 357,384 317,884 387,701 393,817 368,856 416,345 364,992 Hotel/Motel taxes 281,051 272,613 273,668 - - - - - - - Franchise taxes 114,398 116,773 139,430 173,918 174,130 187,256 212,203 203,964 172,439 240,607 Insurance premium taxes 2,285,406 2,198,903 2,058,288 2,310,403 2,343,344 2,187,633 2,135,580 2,030,960 1,937,994 1,814,810 Sales taxes 32,675,107 33,747,828 34,808,458 34,301,734 24,605,202 25,702,360 32,383,724 35,155,911 34,853,383 31,156,926 Public utility taxes 565,454 659,404 558,293 529,902 515,504 550,292 581,150 - - - Miscellaneous 1,002,806 855,646 988,631 497,551 443,937 617,351 86,121 31,118 2,000 82,014 Rent - - - - - - - 483,764 433,387 415,510 Interest - - - 44,599 170,000 316,432 1,044,563 1,430,205 1,035,124 582,360 Transfer in (out) 372,610 334,000 877,217 (255,457) (2,753,975) (3,667,361) (3,882,869) (1,883,956) (2,057,236) (4,251,862)

Total governmental activities 67,745,775 67,233,998 68,691,793 59,647,060 47,118,462 46,660,269 56,103,881 59,777,969 57,169,484 50,172,200

Business-type activities Interest 170 9,793 102,740 10,382 6,070 30,891 71,219 63,219 137,365 6,142 Transfer in (out) (372,610) (334,000) (877,217) 255,457 2,753,975 3,667,361 3,882,869 1,883,956 2,057,236 4,251,862

Total business-type activities (372,440) (324,207) (774,477) 265,839 2,760,045 3,698,252 3,954,088 1,947,175 2,194,601 4,258,004

Total primary government 67,373,335$ 66,909,791$ 67,917,316$ 59,912,899$ 49,878,507$ 50,358,521$ 60,057,969$ 61,725,144$ 59,364,085$ 54,430,204$

Change in Net Position Governmental activities 276,721$ (3,447,918)$ (11,584,525)$ (14,086,963)$ (15,574,399)$ (18,509,222)$ (14,836,314)$ (4,235,655)$ (24,957,238)$ 4,013,985$ Business-type activities 776,147 (186,817) 48,867 1,453,627 3,688,036 2,486,699 2,879,281 1,132,051 566,727 3,171,573

Total primary government 1,052,868$ (3,634,735)$ (11,535,658)$ (12,633,336)$ (11,886,363)$ (16,022,523)$ (11,957,033)$ (3,103,604)$ (24,390,511)$ 7,185,558$

Fiscal Year Ending June 30,

Changes in Net Position (Unaudited), Last Ten Years

(accrual basis of accounting)

Lowndes County, Georgia

120

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 General Fund Assigned 12,691,370$ 13,724,513$ 14,224,513$ 14,513,083$ 16,693,577$ 18,007,111$ 19,518,367$ 18,510,947$ 17,346,847$ 16,627,124$ Unassigned 2,290,541 3,036,971 3,205,095 3,958,498 2,344,771 2,244,498 2,296,406 2,344,590 2,874,942 1,108,607

Total general fund 14,981,911$ 16,761,484$ 17,429,608$ 18,471,581$ 19,038,348$ 20,251,609$ 21,814,773$ 20,855,537$ 20,221,789$ 17,735,731$

All Other Governmental Funds Restricted 7,518,696$ 11,784,570$ 8,429,195$ 8,536,116$ 35,931,956$ 36,008,792$ 65,192,245$ 32,861,697$ 33,596,984$ 46,352,109$ Assigned 706,094 259,177 215,235 185,557 76,836 - - - - - Unassigned, reported in: Special revenue funds - - - (552,826) (528,769) (528,769) (327,773) (219,625) (505,340) (292,970) Capital projects funds - - - 860,326 - - - - - -

Total all other governmental funds 8,224,790$ 12,043,747$ 8,644,430$ 8,168,847$ 35,480,023$ 35,480,023$ 64,864,472$ 32,642,072$ 33,091,644$ 46,059,139$

Fiscal Year Ending June 30,

Lowndes County, Georgia Fund Balances, Governmental Funds (Unaudited),

Last Ten Fiscal Years ( modified accrual basis of accounting)

121

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Revenues Taxes 66,367,426$ 66,035,682$ 66,456,938$ 59,548,885$ 49,454,608$ 49,726,786$ 60,159,934$ 61,522,356$ 59,915,213$ 54,754,309$ Licenses and permits 130,807 99,341 132,168 117,935 124,060 151,434 341,087 174,323 136,051 576,132 Intergovernmental revenues 2,757,803 3,781,219 3,519,504 4,051,774 2,737,701 4,126,620 5,442,941 5,683,150 3,831,163 3,356,236 Charges for services 5,601,346 5,687,127 6,320,517 6,178,392 6,038,778 5,873,816 4,457,475 4,067,289 3,838,814 2,872,513 Fines and forfeitures 3,099,595 3,268,751 3,400,696 2,883,883 2,788,804 2,996,915 3,358,093 3,656,434 3,214,167 4,988,715 Investment income 48,191 30,705 14,131 61,937 159,879 316,432 1,044,564 1,430,202 1,035,122 582,342 Miscellaneous 607,283 480,501 632,848 485,665 629,184 462,651 736,913 827,410 741,079 566,986

Total revenues 78,612,451 79,383,326 80,476,802 73,328,471 61,933,014 63,654,654 75,541,007 77,361,164 72,711,609 67,697,233

Expenditures General government Legislative and executive 10,050,950$ 9,908,048$ 9,590,306$ 9,274,035$ 10,299,933$ 9,805,457$ 11,995,479$ 11,606,747$ 10,785,140$ 9,194,441$ Judicial 6,267,247 5,942,037 6,221,941 6,751,027 5,351,169 5,612,188 7,129,220 4,740,954 4,960,668 4,563,537 Public safety 25,824,458 25,184,661 25,931,440 23,981,068 24,629,552 25,064,246 24,688,510 14,608,904 18,775,006 19,209,606 Public works 6,155,815 4,593,106 4,253,281 8,305,664 8,899,049 8,328,196 13,401,084 19,229,053 32,884,096 16,860,396 Health and welfare 870,328 859,923 893,716 1,049,234 1,266,900 1,372,408 1,397,225 1,961,798 1,220,881 1,674,861 Culture and recreation 4,681,077 4,577,105 4,518,596 1,000,000 1,022,500 1,723,102 4,290,100 4,216,207 4,149,615 4,080,312 Housing and development 4,191,862 4,557,326 4,216,382 1,403,566 1,330,610 1,840,804 1,459,402 534,061 498,200 471,505 Intergovernmental 11,319,810 9,904,148 10,486,448 9,416,508 - - - - - - Capital Outlay 3,208,286 2,406,981 3,283,091 2,660,740 28,199,430 27,894,881 15,649,774 17,240,495 7,260,054 10,801,728 Debt service Principle 8,710,000 8,290,000 7,965,000 5,505,000 7,370,000 7,100,000 605,000 590,000 790,000 945,000 Interest 607,138 891,828 1,525,881 1,757,000 2,062,694 2,193,625 523,860 564,813 689,391 709,991

Total Expenditures 81,886,971 77,115,163 78,886,082 71,103,842 90,431,837 90,934,907 81,139,654 75,293,032 82,013,051 68,511,377

Excess of revenues over (under) expenditure (3,274,520) 2,268,163 1,590,720 2,224,629 (28,498,823) (27,280,253) (5,598,647) 2,068,132 (9,301,442) (814,144)

Other Financing Sources (Uses) Capital financing - 125,000 - - - - 42,663,153 - - - Transfer n 1,887,116 1,718,027 2,894,089 1,430,641 50,000 77,527 160,240 200,549 933,981 472,489 Transfer out (1,514,506) (1,384,027) (2,016,872) (1,686,097) (2,803,975) (3,744,887) (4,043,109) (2,084,505) (2,991,217) (4,724,351)

Total other financing sources (uses) 372,610 459,000 877,217 (255,456) (2,753,975) (3,667,360) 38,780,284 (1,883,956) (2,057,236) (4,251,862)

Net change in fund balances (2,901,910)$ 2,727,163$ 2,467,937$ 1,969,173$ (31,252,798)$ (30,947,613)$ 33,181,637$ 184,176$ (11,358,678)$ (5,066,006)$

Debt service as a percentage of noncapital expenditures 11.84% 12.29% 12.55% 10.61% 15.16% 14.74% 1.72% 1.99% 1.98% 2.87%

Lowndes County, Georgia Changes in Fund Balances, Governmental Funds (Unaudited),

Last Ten Fiscal Years (accrual basis of accounting)

Fiscal Year Ending June 30,

122

Title Special Purpose Advalorem Local Option Local Option Hotel/ Insurance

Fiscal Property Vehicle Beverage Franchise Sales Sales Motel Premium Intangible Year Tax Tax Tax Tax Tax Tax Tax Tax Tax Total

2005 17,815,093 - 495,211 240,607 11,442,253 19,714,674 1,779,004 1,843,259 604,891 53,934,992 2006 18,326,457 - 504,712 172,439 12,785,834 22,067,549 1,828,252 1,937,994 705,082 58,328,319 2007 19,672,605 - 524,243 203,964 12,908,364 22,247,547 1,811,933 2,030,960 765,538 60,165,154 2008 21,284,204 - 527,476 212,203 13,777,615 23,415,805 1,032,148 2,135,580 722,709 63,107,740 2009 18,437,599 - 534,897 187,256 13,081,231 20,745,158 268,939 2,187,633 482,671 55,925,384 2010 19,483,831 - 508,709 174,130 12,510,599 21,522,945 270,541 2,156,266 416,250 57,043,271 2011 19,768,176 - 511,846 173,918 12,592,637 21,709,097 274,860 2,097,125 409,048 57,536,707 2012 26,125,012 - 484,361 139,430 12,778,041 22,030,417 273,668 2,058,288 405,139 64,294,356 2013 26,157,401 431,831 486,800 116,773 12,387,903 21,359,925 273,668 2,058,288 405,139 63,677,728 2014 26,290,909 1,623,444 511,272 114,398 11,991,187 20,683,920 281,051 2,285,406 412,764 64,194,351

Change 2005 -2014 47.58% 0.00% 3.24% -52.45% 4.80% 4.92% -84.20% 23.99% -31.76% 19.02%

Note: Includes General and Special Revenue Funds. Property taxes beginning in 2012 include the county tax levies for the Valdosta-Lowndes County Development Authority and the Valdosta-Lowndes County Parks and Recreation Authority. Effective in January 2008, the County accommodation tax includes tax collected outside of city limits that have their own hotel/motel tax. Effective in January 2013, sales tax is no longer collected on manufacturing energy usage. Effective April 1, 2013, sales tax is no longer collected on vehicle sales. The sales tax was replaced by a Title Advalorem Tax (TAVT) at the time of sale which replaces annual advalorem taxes on vehicles purchased from April 1, 2013 forward.

Lowndes County, Georgia Tax Revenues by Source, Governmental Funds (Unaudited),

Last Ten Fiscal Years (modified accrual basis of accounting)

123

Less: Fiscal Assessed Assessed Assessed Assessed Assessed Year Value Value Value Value Value Total Taxable

Ended Residential Commercial Industrial Personal Tax-Exempt Assessed June 30, Property Property Property Property Property Value

2005 1,009,018 672,014 365,575 201,997 232,741 2,015,863 2006 1,101,396 757,719 383,711 198,963 179,126 2,262,663 2007 1,244,990 793,455 391,187 195,823 234,685 2,390,770 2008 1,400,845 865,837 395,966 214,775 254,078 2,623,345 2009 1,490,238 885,093 448,464 223,814 290,859 2,756,750 2010 1,528,119 907,500 467,299 233,738 305,921 2,830,735 2011 1,533,881 919,014 421,432 211,749 288,437 2,797,639 2012 1,545,873 905,710 452,877 213,668 315,997 2,802,131 2013 1,523,611 943,904 493,895 227,573 321,475 2,867,508 2014 1,523,248 937,983 507,566 239,653 310,207 2,898,244

Lowndes County, Georgia Assessed Value and Actual Value of Taxable Property (Unaudited),

Last Ten Fiscal Years (in thousands of dollars)

124

Ratio of Total Fiscal Estimated Accessed Year Total Taxable Actual to Total Total Direct Total Direct

Ended Assessed Taxable Actual Unincorporated Incorporated June 30, Value Value Value Tax Rate (1) Tax Rate

2005 2,015,863 5,039,658 40% 8.86 8.86 2006 2,262,663 5,656,658 40% 8.86 8.86 2007 2,390,770 5,976,925 40% 8.86 8.86 2008 2,623,345 6,558,363 40% 8.76 8.76 2009 2,756,750 6,891,875 40% 7.31 7.31 2010 2,830,735 7,076,838 40% 7.31 7.31 2011 2,797,639 6,994,098 40% 7.31 7.31 2012 2,802,131 7,005,328 40% 7.31 7.31 2013 2,867,508 7,168,770 40% 7.31 7.31 2014 2,898,244 7,245,609 40% 7.30 7.30

Last Ten Fiscal Years (in thousands of dollars)

Lowndes County, Georgia Assessed Value and Actual Value of Taxable Property (Unaudited),

125

Jurisdiction: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 County Maintenance and Operations: Direct Rates: Unincorporated 8.86 8.86 8.86 8.76 7.31 7.31 7.31 7.31 7.31 7.30 Incorporated 8.86 8.86 8.86 8.76 7.31 7.31 7.31 7.31 7.31 7.30 Overlapping Rates: Valdosta-Lowndes County Development Authority 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Valdosta-Lowndes County Parks & Recreation Authority 0.00 0.00 0.00 0.00 1.25 1.25 1.25 1.25 1.25 1.25 Total County - Unincorporated 8.86 8.86 9.86 9.76 9.56 9.56 9.56 9.56 9.56 9.55 Total County - Incorporated 8.86 8.86 9.86 9.76 9.56 9.56 9.56 9.56 9.56 9.55 Schools Maintenance and Operations: Lowndes County Board of Education 14.15 15.15 15.15 14.95 14.70 14.70 14.70 14.70 14.73 14.73 Valdosta Board of Education 13.98 14.98 14.98 15.98 15.98 15.98 16.98 16.98 16.98 16.98 Total Schools - County 14.15 15.15 15.15 14.95 14.70 14.70 14.70 14.70 14.73 14.73 Total Schools - City of Valdosta 13.98 14.98 14.98 15.98 15.98 15.98 16.98 16.98 16.98 16.98

Municipalities Maintenance and Operations: City of Hahira 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 4.75 4.75 City of Lake Park 5.83 5.80 5.70 4.73 4.72 4.70 4.70 5.05 5.05 5.05 City of Remerton 4.42 5.42 6.42 6.42 6.39 6.39 6.39 6.39 6.38 6.38 City of Valdosta 4.48 4.41 4.40 4.18 4.11 4.11 4.11 4.11 4.11 4.10

State 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 .020 0.15 Total Direct and Overlapping Rates: Total Unincorporated 23.26 24.26 25.26 24.96 24.51 24.51 24.51 24.51 24.31 24.43 Total City of Hahira 28.64 29.64 30.64 30.34 29.89 29.89 29.89 29.89 29.06 29.18 Total City of Lake Park 29.09 30.06 30.96 29.69 29.23 29.21 29.21 29.56 29.36 29.48 Total City of Remerton 27.68 29.68 31.68 31.38 30.90 30.90 30.90 30.90 30.69 30.81 Total City of Valdosta 27.57 28.50 29.49 30.17 29.90 29.90 30.90 30.90 30.67 30.78

County, Development Authority, Parks and Recreation Authority and State property taxes are accessed county wide. Lowndes County Board of Education property taxes are accessed county wide except on property in the City of Valdosta where the Valdosta Board of Education accesses property taxes. Cities access property taxes on property within their geographic boundaries.

Source: Lowndes County Tax Commissioner

Lowndes County, Georgia Direct and Overlapping Property Tax Rates (Unaudited),

Last Ten Fiscal Years (rate per $1,000 of accessed value)

126

Percentage of Percentage of Total County Total County

Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed

Taxpayer Value Rank Value Taxpayer Value Rank Value

Packaging Corporation of America 64,046,156$ 1 2.21% Archers Daniels Midland 54,778,438$ 1 2.65% Archer Daniels Midland 37,971,989 2 1.31% Packaging Corporation of America 45,907,869 2 2.22% Georgia Power Company 37,901,865 3 1.31% The Langdale Company 27,148,899 3 1.31% Lowes Distribution Center 31,341,540 4 1.08% Georgia Power Company 22,706,687 4 1.10% J M Smith Corporation 25,092,061 5 0.87% Wild Adventures 22,077,783 5 1.07% Durocky Road LLC 19,297,478 6 0.67% Lowe's Distribution Center 20,481,667 6 0.99% Colquitt EMC 16,403,302 7 0.57% Bellsouth Telecommunications 15,188,497 7 0.73% Marelda Valdosta Mall LLC 12,496,410 8 0.43% Colquitt EMC 10,220,502 8 0.49% Norfolk Southern Corporation 10,070,023 9 0.35% Saft America Inc. 9,110,678 9 0.44% Saft America Inc. 10,043,722 10 0.35% Colonial Realty LTD 8,206,777 10 0.40% All others 2,633,579,029 90.87% All others 1,834,813,291 88.61%

Total 2,898,243,575$ 100.00% 2,070,641,088$ 100.00%

Source: Lowndes County Tax Commissioner

2014 2005

Lowndes County, Georgia Principle Property Tax Payers (Unaudited),

Current Year and Ten Years Ago

127

Fiscal Year Taxes Levied Collections

Ending for the Percentage of in Subsequent Percentage of June 30, Fiscal Year Amount Levy Years Amount Levy

2005 17,860,543 17,585,316 98.46% 252,940 17,838,256 99.88% 2006 20,047,190 19,559,113 97.57% 488,077 20,047,190 100.00% 2007 21,182,223 20,560,611 97.07% 618,584 21,179,195 99.99% 2008 22,967,377 22,463,268 97.81% 492,393 22,955,661 99.95% 2009 20,151,846 19,506,396 96.80% 546,647 20,053,043 99.51% 2010 20,692,666 19,942,062 96.37% 383,947 20,326,009 98.23% 2011 20,450,742 19,655,203 96.11% 775,876 20,431,079 99.90% 2012 20,483,589 19,694,801 96.15% 754,140 20,448,941 99.83% 2013 20,961,479 20,204,435 96.39% 528,174 20,732,609 98.91% 2014 21,165,873 20,465,210 96.69% - 20,465,210 96.69%

Source: Lowndes County Tax Commissioner

Lowndes County, Georgia Property Tax Levies and Collections (Unaudited),

Last Ten Fiscal Years

Fiscal Year of the Levy Collected within the

Total Collections to Date

128

Total Percentage Fiscal Capital Revenue Notes Revenue Primary of Personal Per Year Leases Bonds Payable Bonds Government Income Capita

2005 22,461,008 - 5,159,265 585,000 28,205,273 1.18% 298 2006 20,142,417 - 4,583,037 12,450,723 37,176,177 1.20% 384 2007 17,688,318 - 3,718,226 11,983,802 33,390,346 1.25% 341 2008 15,659,630 40,845,000 - 11,506,881 68,011,511 2.31% 668 2009 13,802,615 34,365,000 - 11,014,959 59,182,574 1.86% 566 2010 12,396,621 27,630,000 - 10,508,040 50,534,661 1.60% 473 2011 11,480,000 23,847,351 - 9,981,119 45,308,470 1.37% 415 2012 10,682,600 16,201,567 - 9,439,199 36,323,366 1.02% 316 2013 10,510,692 8,245,147 - 9,576,467 28,332,306 0.76% 238 2014 9,650,313 - - 8,897,058 18,547,371 0.51% 164

Notes: Details regarding the county's outstanding debt can be found in the notes to the financial statements.

Business-Type Activities

Lowndes County, Georgia Ratios of Outstanding Debt by Type (Unaudited),

Last Ten Fiscal Years

Governmental Activities

129

Estimated Estimated Share

Debt Percentage of Overlapping Outstanding Applicable Debt

Governmental Unit

Debt repaid with property taxes City of Hahira 19,250 100% 19,250$ City of Valdosta 150,705 100% 150,705 Lowndes County School System 28,858,563 100% 28,858,563 Central Valdosta Development Authority 2,313,000 100% 2,313,000

Subtotal, overlapping debt 31,341,518

County direct debt Capital Leases 9,650,313 Intergovernmental Agreements Valdosta-Lowndes County Development Authority 12,860,000 Direct Guaranteed Revenue Debt Water and Sewer Revenue Bonds 8,897,058

Total County direct debt 31,407,371

Total direct and overlapping debt 62,748,889$

Lowndes County, Georgia Direct and Overlapping Governmental Activities Debt (Unaudited)

As of June 30, 2014

Sources: Each city government provided information for their respective city. Notes: Overlapping governments are those that coincide with the geographic boundaries of the County. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses of Lowndes County. The County government represents all taxpayers including those living in the cities and therefore 100% of the debt is estimated to be overlapping. This process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.

130

Assessed value 2,898,244$ Debt limitation (10% of assessed value) 289,824 Debt applicable to limitation: Total bonded debt -

Legal debt margin 289,824$

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Debt limit 279,764$ 280,213$ 226,266$ 262,334 275,675 283,073 279,764 280,213 286,751 289,824

Total net debt applicable to limit - - - 40,845 34,365 27,630 22,780 15,490 7,900 -

Legal debt margin 279,764$ 280,213$ 226,266$ 221,489$ 241,310$ 255,443$ 256,984$ 264,723$ 278,851$ 289,824$

Total net debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Legal Debt Margin Calculation for Fiscal Year 2014

Lowndes County, Georgia Legal Debt Margin Information (Unaudited)

Last Ten Fiscal Years (dollars in thousands)

131

Less: Net Fiscal Operating Operating Available Year Revenue Expenses Revenue Principle Interest Total Coverage

2006 3,154,058$ 2,134,045$ 1,020,013$ 375,000$ 444,203$ 819,203$ 1.25 2007 3,649,845$ 2,281,525$ 1,368,320$ 450,000$ 521,794$ 971,794$ 1.41 2008 3,772,771$ 2,619,531$ 1,153,240$ 460,000$ 508,294$ 968,294$ 1.19 2009 3,639,943$ 2,736,823$ 903,120$ 475,000$ 494,494$ 969,494$ 0.93 2010 5,065,995$ 2,545,210$ 2,520,785$ 490,000$ 479,056$ 969,056$ 2.60 2011 5,281,592$ 2,703,922$ 2,577,670$ 510,000$ 460,488$ 970,488$ 2.66 2012 5,282,108$ 2,624,767$ 2,657,341$ 525,000$ 444,056$ 969,056$ 2.74 2013 4,938,717$ 2,969,218$ 1,969,499$ 570,000$ 495,158$ 1,065,158$ 1.85 2014 5,353,852$ 2,857,696$ 2,496,156$ 660,000$ 241,433$ 901,433$ 2.77

Debt Service

Lowndes County, Georgia Pledged-Revenue Coverage (Unaudited),

Last Nine Fiscal Years

Water and Sewer Revenue Bonds 2005 (Refunded 2013)

Notes: Pledged revenues represent fees charged for water and sewer services. Operating expenses do not include depreciation and interest expenses. Details regarding the County’s debt can be found in the notes to the financial statements.

132

Fiscal Personal Year Population (1) Income County State County State

2005 94,579 2,389,916,751 25,269 31,191 2.9% 4.1% 2006 96,705 3,109,742,685 32,157 32,775 3.8% 4.7% 2007 97,844 2,681,708,352 27,408 34,061 4.1% 5.3% 2008 101,790 2,938,473,720 28,868 35,369 3.9% 4.6% 2009 104,583 3,185,702,763 30,461 35,863 5.5% 6.3% 2010 106,814 3,161,480,772 29,598 34,081 8.4% 9.8% 2011 109,233 3,306,264,444 30,268 34,800 9.2% 10.2% 2012 111,885 3,461,498,130 30,938 36,104 9.3% 9.8% 2013 114,552 3,561,765,336 31,093 36,869 8.3% 8.5% 2014 112,916 3,659,607,560 32,410 37,845 7.4% 7.7%

Source: (1) U. S. Census Bureau (2) State of Georgia Department of Labor

Unemployment Rate (2)Per Capita Income (2)

Lowndes County, Georgia Demographic and Economic Statistics (Unaudited),

Last Ten Calendar Years

133

Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment Moody Air Force Base 6,066 1 12.47% Moody Air Force Base 4,448 1 10.12% South Georgia Medical Center 2,800 2 5.75% South Georgia Medical Center 2,300 2 5.23% Valdosta State University 3,026 3 6.22% Valdosta State University 2,280 3 5.19% Lowndes County School System 1,425 4 2.93% Lowndes County School System 1,279 4 2.91% Valdosta City School System 1,200 5 2.47% Valdosta City School System 960 5 2.18% Lowes Distribution Center 750 6 1.54% Convergys Corp 900 6 2.05% Fresh Beginnings 726 7 1.49% Lowes Distribution Center 820 7 1.87% Wild Adventures 700 9 1.44% City of Valdosta 659 8 1.50% Wal Mart Supercenters 680 8 1.40% Lowndes County 554 9 1.26% Lowndes County 585 10 1.20% Roadway Express, Inc. 450 10 1.02%

Total Principle Employers 17,958 36.90% 14,650 33.33%

Other Employees 30,704 63.10% 29,310 66.67%

Total Employees 48,662 100.00% 43,960 100.00%

Sources: Georgia Department of Labor Valdosta-Lowndes County Development Authority

2014 2005

Lowndes County, Georgia Principle Employers (Unaudited), Current Year and Nine Years Ago

134

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function/Program

General Government Legislative Board of Commissioners 4 4 4 4 4 4 4 4 6 6 Commissioners' Assistant - - - 1 1 1 - - - - Community Service - - - 1 1 1 - - - - County Clerk - - - 3 3 3 3 3 3 4 County Manager 5 6 7 4 4 4 3 3 3 2 Risk Manager 1 1 1 1 1 1 - - - - Board of Elections 12 12 12 12 12 12 15 14 14 10 Tax Assessors 24 22 20 24 24 25 24 24 23 24 Building Maintenance 20 20 20 21 21 22 20 20 21 25 Tax Commissioner 19 20 19 20 20 21 21 21 21 21 Administrative Services 17 17 15 18 18 20 17 17 17 18 Engineering 9 10 11 11 11 11 7 7 7 6 Judicial Clerk of Court 18 19 18 19 18 18 18 18 19 22 Probate Court 5 6 5 6 6 6 5 5 6 6 Juvenile Court 1 1 1 2 2 2 2 2 2 2 Magistrate Court 11 11 11 11 11 11 11 11 11 11 Superior Court 14 14 14 15 15 15 15 15 15 15 State Court 8 6 8 10 10 10 10 10 10 10 Community Corrections Director - - - - - - - - 1 1 Indigent Defense 2 - - - - - - - - - Public Safety Sheriff 206 212 201 225 226 240 240 240 240 237 Coroner 2 2 2 2 2 2 2 2 2 2 Probation 2 2 2 2 2 2 - - - - Fire Protection Services 8 10 13 16 - - - - - - Animal Control 11 11 11 12 12 12 12 12 11 11 Emergency Management - - - 1 1 1 1 1 1 1

Full-time Equivalent Employees as of June 30,

Lowndes County, Georgia Full-time Equivalent County Government Employees by Function/Program (Unaudited),

Last Ten Fiscal Years

135

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function/Program

Public Works Administration 6 5 7 7 7 6 6 6 6 6 Road Maintenance 32 31 29 40 39 39 36 36 36 39 Road Construction 14 13 13 10 10 10 8 9 10 9 Mosquito Control - - - 1 - - - - - - Sanitation 20 21 16 - - - - - - - Housing and Development County Planner - - - 1 - - - - - - Zoning - - 3 3 - - - - - - Keep Lowndes/ Valdosta Beautiful 1 1 1 1 1 1 - - - - Auxiliary Accounts - Jail Commissary 2 2 2 2 2 2 2 2 2 2 Intergovernmental Regional Airport 6 6 6 7 7 7 - - - - Alternative Dispute Resolution 2 2 2 2 2 2 2 2 2 2 Zoning Administration 4 4 3 3 - - - - - - VAWA Grant - 2 - - - - - - - - LODAC HUD Grant 3 6 4 4 3 3 - - - - County Jail Fund 1 1 1 1 1 1 1 1 1 1 Drug Abuse Treatment 7 7 7 6 8 4 - - - - Emergency Telephone System 32 33 28 38 38 37 38 38 38 36 Special Services Fund Fire - - - - 16 20 19 19 19 20 Mosquito Control - - - - 1 1 1 1 1 1 County Planner - - - - 1 1 2 2 2 2 Zoning Administration - - - - 3 3 3 3 3 3 Victim/Witness 2 2 2 2 2 2 2 2 2 2 Water and Sewer 13 13 13 14 14 19 18 18 19 19 Sanitation Fund - - - 21 19 19 17 17 15 - Equipment Maintenance 10 10 10 10 10 11 8 8 9 9

Total 554 565 542 614 609 632 593 593 598 585

Lowndes County, Georgia Full-time Equivalent County Government Employees by Function/Program (Unaudited),

Last Ten Fiscal Years

Full-time Equivalent Employees as of June 30,

136

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function/Program

Courts Cases filed: Superior Court - Civil 2,987 2,776 3,079 2,624 3,384 3,549 3,238 3,425 3,012 2,470 Superior Court - Criminal 3,856 4,199 4,199 4,221 3,579 3,771 3,907 3,929 3,361 3,287 State Court - Civil 1,038 1,021 1,020 1,274 1,282 1,628 1,019 832 547 649 State Court - Criminal 23,188 19,436 20,142 16,930 17,262 16,069 18,589 19,135 18,080 10,870 Juvenile Court 2,027 1,656 1,656 1,379 1,133 1,184 1,444 1,026 1,015 951 Sheriff Inmate bookings 7,501 9,598 10,554 9,050 9,002 8,743 9,340 10,185 9,503 9,115 Average daily jail population 555 639 667 694 698 682 670 734 653 675 Subpoenas served 17,335 15,688 17,084 19,644 15,822 13,640 14,040 15,677 12,154 11,831 Civil papers served 4,109 3,680 3,443 3,691 3,868 4,568 3,719 3,634 2,908 2,659 Jury summons 664 622 872 543 344 576 470 479 485 724 Fire Protection Services Emergency responses 989 1,508 1,777 1,801 1,774 1,648 2,653 2,829 3,548 3,086 Fires extinguished 387 457 560 462 490 497 999 335 468 266 Emergency Telephone System 911 calls 64,412 77,291 75,426 84,218 88,298 96,000 96,420 98,587 97,599 98,480 Public Works New paving (miles) 28 8 8 7 13 6 - - 3 4 Sanitation Refuse collected (tons per day) 46 44 44 35 23 27 27 34 32 - Water Average daily consumption (thousands of gallons) 5,112 6,443 6,738 6,642 5,764 3,028 1,943 2,000 1,943 1,939 Sewer Average daily sewage treatment (thousands of gallons) 1,074 992 1,076 1,129 1,410 1,850 1,530 970 1,057 1,190

Source: County Department Heads

Fiscal Year Ending June 30,

Lowndes County, Georgia Operating Indicators by Function/Program (Unaudited),

Last Ten Fiscal Years

137

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Function/Program

Sheriff Vehicles 165 169 194 210 220 252 235 240 263 263 Fire Protection Services Fire stations 16 17 18 18 18 18 18 18 18 18 Vehicles 56 56 55 53 55 56 56 56 56 56 Pumpers 19 19 13 18 18 18 18 18 19 19 Public Works Streets (miles) paved 463 560 469 457 471 477 447 487 490 494 Streets (miles) dirt 385 345 347 334 372 336 336 321 320 315 Traffic signals 2 2 2 2 2 2 2 3 3 3 Sanitation Collection sites 8 7 6 6 6 6 6 6 - - Parks and recreation Acreage 404 404 404 404 - - - - - - Recreation facilities 6 6 6 6 - - - - - - Water Water mains (miles) 133 140 155 166 182 185 190 191 192 192 Fire hydrants 1,152 944 1,236 1,179 1,336 1,373 1,408 1,420 1,420 1,420 Storage capacity (thousands of gallons) 3,150 3,150 3,160 3,170 3,650 3,680 3,680 3,680 3,680 3,680 Sewer Sanitary sewers (miles) 129 134 154 167 185 188 200 201 202 202 Treatment capacity (thousands of gallons) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Transit minibuses 5 5 5 5 5 5 5 5 5 5

Source: County Department Heads

Fiscal Year Ending June 30,

Lowndes County, Georgia Capital Assets Statistics by Function/Program (Unaudited),

Last Ten Fiscal Years

138

SPECIAL REPORTS SECTION

LOWNDES COUNTY, GEORGIA SPECIAL SALES TAX V SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL SALES TAX PROCEEDS Year Ended June 30, 2014

Original Current Estimated Estimated Estimated Prior Current Percentage

Cost Cost Years Year Total of Completion

Development Authority 4,070,000$ 3,838,499 3,768,501 - 3,768,501$ 98.18% Airport Authority 1,100,000 1,040,427 1,040,427 - 1,040,427 100.00% City of Dasher 440,000 421,946 173,492 229,860 403,352 95.59% City of Hahira 990,000 936,325 894,752 41,573 936,325 100.00% City of Remerton 770,000 728,283 629,413 89,405 718,818 98.70% City of Lake Park 440,000 412,612 412,612 - 412,612 100.00% City of Valdosta 51,095,000 47,799,170 45,787,667 268,705 46,056,372 96.35% Roads, Streets, and Bridges 20,000,000 22,270,681 22,270,681 - 22,270,681 100.00% Debt Retirement 16,785,000 14,518,754 14,518,754 - 14,518,754 100.00% Jail Facilities and Equipment 6,300,000 6,026,217 6,026,217 - 6,026,217 100.00% Court Facilities and Equipment 1,000,000 56,652 56,652 - 56,652 100.00% Water and Sewer Facilities and Equipment 2,427,000 4,582,240 4,582,240 - 4,582,240 100.00% Parks and Recreation Facilities 1,000,000 975,606 703,466 124,224 827,690 84.84% Administrative Facilities and Equipment 1,908,000 466,115 466,115 - 466,115 100.00% Human Resource Building Improvements 200,000 137,810 137,810 - 137,810 100.00% Library Books and Equipment 125,000 125,712 125,712 - 125,712 100.00% Public Safety Facilities and Equipment 500,000 449,323 449,323 - 449,323 100.00% Animal Shelter Facilities and Equipment 50,000 50,931 39,335 2,290 41,625 81.73% Fire Fighting Facilities and Equipment 750,000 748,523 748,523 - 748,523 100.00% Public Transportation Vehicles 50,000 19,811 19,811 - 19,811 100.00%

Totals 110,000,000$ 105,605,637$ 102,851,503$ 756,057$ 103,607,560$ See independent auditor’s report.

139

LOWNDES COUNTY, GEORGIA SPECIAL SALES TAX VI SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL SALES TAX PROCEEDS Year Ended June 30, 2014

Original Current Estimated Estimated Estimated Prior Current Percentage

Cost Cost Years Year Total of Completion

Airport Improvements and Equipment 1,000,000$ 783,566$ 783,565$ -$ 783,565$ 100.00% Parking Facility 1,500,000 700,000 - 700,000 700,000 100.00% Emergency Operations Center 4,000,000 2,953,982 2,953,982 - 2,953,982 100.00% Courthouse Renovations & Equipment 500,000 250 250 - 250 100.00% Judicial /Admin Facilities Construction & Equipment 1,000,000 38 38 - 38 100.00% Public Safety Training Facility Construction & Equipment 500,000 171,739 171,739 - 171,739 100.00% Fire Fighting Facility Improvements & Equipment 1,000,000 541,083 541,083 - 541,083 100.00% Parks and Recreation Facility Construction & Equipment 6,000,000 2,899,007 29,133 96,555 125,688 4.34% Water and Sewer Fund Construction & Improvements 15,000,000 4,887,937 4,887,937 - 4,887,937 100.00% Road, Street & Bridges Construction & Improvements 22,388,450 13,473,059 13,473,059 - 13,473,059 100.00% Bond Debt Retirement For Jail and Judicial/Admin Facilities 50,000,000 47,413,408 39,148,283 8,265,125 47,413,408 100.00% City of Dasher 1,101,000 787,857 725,148 62,709 787,857 100.00%

City of Hahira 4,000,300 2,862,548 2,634,704 227,844 2,862,548 100.00%

City of Remerton 2,000,150 1,410,501 1,296,579 113,922 1,410,501 100.00%

City of Lake Park 752,350 538,369 495,518 42,851 538,369 100.00%

City of Valdosta 72,757,750 52,085,020 47,940,971 4,144,049 52,085,020 100.00%

Totals 183,500,000$ 131,508,364$ 115,081,989$ 13,653,055$ 128,735,044$ See independent auditor’s report.

140

LOWNDES COUNTY, GEORGIA SPECIAL SALES TAX VII SCHEDULE OF PROJECTS CONSTRUCTED WITH SPECIAL SALES TAX PROCEEDS Year Ended June 30, 2014

Original Current Estimated Estimated Estimated Prior Current Percentage

Cost Cost Years Year Total of Completion

Roads, Streets and Bridge Improvements 25,000,000$ 20,035,567$ -$ 1,453,458$ 1,453,458$ 7.25% Road, Street and Bridge Equipment 1,838,000 1,473,015 - - - 0.00% Water & Sewer System Improvements and Equipment 17,410,500 13,953,170 - 81,390 81,390 0.58% Law Enforcement Vehicles and Evidence Storage Facilitie 1,500,000 1,202,134 - - - 0.00% Firefighting Facilities and Vehicles 3,000,000 2,404,268 - - - 0.00% 9-1-1 Center Improvements 984,500 789,001 - - - 0.00% Public Safety Radio System 4,500,000 4,500,000 - - - 0.00% Parks and Recreation Facilities 3,500,000 3,500,000 - - - 0.00% Animal Shelter Addition and Improvements 800,000 800,000 - - - 0.00% Civic Center Improvements 150,000 150,000 - - - 0.00% Historic Courthouse Improvements 2,000,000 2,000,000 - - - 0.00% Library Improvements and Equipment 1,582,000 1,582,000 - - - 0.00% Airport Improvements 150,000 150,000 - 64,851 64,851 43.23% City of Dasher 1,245,000 946,200 - 84,928 84,928 8.98%

City of Hahira 3,765,000 2,861,400 - 256,832 256,832 8.98%

City of Remerton 1,545,000 1,174,200 - 105,393 105,393 8.98%

City of Lake Park 1,005,000 763,800 - 68,557 68,557 8.98%

City of Valdosta 80,025,000 60,819,000 - 5,458,957 5,458,957 8.98%

Totals 150,000,000$ 119,103,755$ -$ 7,574,366$ 7,574,366$

See independent auditor’s report.

141

LOWNDES COUNTY, GEORGIA SCHEDULE OF STATE CONTRACTUAL ASSISTANCE Year Ended June 30, 2014

Due (To) Contract From Number Revenue Expenditures State

Passed through the Georgia Department of Transportation ARRA Public Transportation Assistance GA-18-4031 213,957$ 213,957$ - ARRA Public Transportation Assistance T004908 3,801 3,801 -

Passed through the Governor's Office of Highway Safety SPEED GA-2013-000-0435 728 728 - SRTEN GA-2013-000-0357 1,724 1,724 - SRTEN GA-2014-000-0235 14,409 14,409 - Passed through the Georgia Emergency Management Agency GEMA Training OEM13-094 500 500 - 2012 EMPG Response & Recovery OEM10-094 23,619 23,619 - 2010 Homeland Security Grant 2010-SS-T0-0034 25,969 25,969 -

Passed through the Prosecuting Attorney's Council of Georgia 2013 Prosecution Based VOCA C13-8-048 8,645 8,645 -

Passed through the Criminal Justice Coordinating Council Juvenile Justice Incentive Grant Y13-8-014 170,813 170,813 - 2012 Victims of Crime Act C12-8-083 39,545 39,545 - 2013 Byrne Justice Assistance Grant 2013-H4013-GA-DJ 11,000 11,000 - ARRA Edward Byrne Memorial JAG B82-8-420 8,993 8,993 -

Total 523,703$ 523,703$ -$

See independent auditor’s report.

142

LOWNDES COUNTY, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2014

Federal CFDA Pass Through Federal

Number Grantor Number Expenditures

Department of Justice Passed through the Criminal Justice Coordinating Council Juvenile Justice Incentive Grant 16.523 Y13-8-014 170,813$

2012 Victims of Crime Act 16.575 C12-8-083 39,545

Passed through the Prosecuting Attorney's Council of Georgia 2013 Prosecution Based VOCA 16.575 C13-8-048 8,645

48,190

Passed through the Criminal Justice

Coordinating Council

2013 Byrne Justice Assistance Grant 16.803 2013-H4013-GA-DJ 11,000 ARRA Edward Byrne Memorial JAG 16.803 B82-8-420 8,993

19,993

Total Department of Justice 238,996

Department of Transportation

Passed through the Georgia Department

of Transportation

ARRA Public Transportation Assistance 20.509 GA-18-4031 213,957 ARRA Public Transportation Assistance 20.509 T004908 3,801

217,758

Passed through the Governor's Office

of Highway Safety

SPEED 20.600 GA-2013-000-0435 728 SRTEN 20.600 GA-2013-000-0357 1,724 SRTEN 20.600 GA-2014-000-0235 14,409

16,861

Total Department of Transportation 234,619

See independent auditor’s report.

143

LOWNDES COUNTY, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - CONTINUED Year Ended June 30, 2014

Federal CFDA Pass Through Federal

Number Grantor Number Expenditures

Department of Homeland Security Passed through the Georgia Emergency Management Agency GEMA Training Grant 97.042 OEM13-094 500 2012 EMPG Response & Recovery 97.042 OEM10-094 23,619

24,119

2010 Homeland Security Grant 97.067 2010-SS-T0-0034 25,969

25,969

Total Department of Homeland Security 50,088

Total 523,703$

See independent auditor’s report.

144

LOWNDES COUNTY, GEORGIA NOTES TO THE SCHEDULE OF EXPENDITURES

OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2014

NOTE 1. GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of Lowndes County, Georgia (the “County”). The County receives pass- through financial assistance from several state agencies. NOTE 2. REPORTING ENTITY The authoritative criteria for determining the programs, organizations and functions of government included in the financial statements of the County are as follows: oversight responsibility, including selection of governing authority, designation of management, and ability to significantly influence operations; accountability for fiscal matters, including budget, surplus/deficits, debt, fiscal management and revenue characteristics; scope of public service; and special financial relationships. NOTE 3. BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to pay current liabilities.

145

LOWNDES COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2014 Section I – Summary of Auditor’s Results Financial Statements Type of auditor’s report issued Unmodified Internal control over financial reporting

Material weakness identified? Yes X No Significant deficiencies identified not

considered to be material weakness? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs

Material weaknesses identified? _____ Yes X No Significant deficiencies identified not

considered to be material weaknesses? _____ Yes X None reported Type of auditor’s report issued on compliance

for major programs: Unmodified

Any audit findings disclosed that are required to be reported

in accordance with Circular A-133, Section .510(a)? ____ Yes X No Identification of major programs: CFDA Number Name of Federal Program

20.509 ARRA Public Transportation Assistance Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee considered a low risk auditee X Yes No

150

Line O.C.G.A. No. Reference:

1 Indicate UCOA Fund Type Used to Account for 9-1-1 Activity (choose one):

__X___ Special Revenue Fund _____ Enterprise Fund

Expenditures (UCOA Activity 3800) 2 Wireless service supplier cost recovery charges 46-5-134(e)

(identify each supplier individually on lines below - attach list, if necessary)

$

$

$

3 Emergency telephone equipment, including necessary computer hardware, software, and data base provisioning, addressing, and nonrecurring costs of establishing a 9-1-1 system:

3a Lease costs 46-5-134(f)(1)(A) $

3b Purchase costs 46-5-134(f)(1)(A) $

3c Maintenance costs 46-5-134(f)(1)(A) $

4 Rates associated with the service suppliers 9-1-1 service and other service suppliers recurring charges 46-5-134(f)(1)(B) $

5 Employees hired by the local government solely for the operation and maintenance of the emergency 9-1-1 system and employees who work as directors as defined in O.C.G.A. §46-5-138.2

5a Salaries and wages 46-5-134(f)(1)(C) $ 1,464,143

5b Employee benefits 46-5-134(f)(1)(C) $ 657,538

6 Cost of training of employees who work as dispatchers or directors 46-5-134(f)(1)(D) $ 3,841

7 Office supplies of the public safety answering points used directly in providing emergency 9-1-1 system services 46-5-134(f)(1)(E) $ 5,948

8 Building used as a public safety answering point:

8a Lease costs 46-5-134(f)(1)(F) $

8b Purchase costs 46-5-134(f)(1)(F) $

9 Computer hardware and software used at a public safety answering point, including computer assisted dispatch systems and automatic vehicle location systems:

9a Lease costs 46-5-134(f)(1)(G) $

9b Purchase costs 46-5-134(f)(1)(G) $

9c Maintenance costs 46-5-134(f)(1)(G) $

Lowndes County, Georgia Certificate of 9-1-1 Expenditures For the Year Ended June 30, 2014

151

10 Supplies directly related to providing emergency 9-1-1 system services, including the cost of printing emergency 9-1-1 public education materials 46-5-134(f)(1)(H) $

11 Logging recorders used at a public safety answering point to record telephone and radio traffic:

11a Lease costs 46-5-134(f)(1)(I) $

11b Purchase costs 46-5-134(f)(1)(I) $

11c Maintenance costs 46-5-134(f)(1)(I) $

12 Insurance purchased to insure against risks and liability in the operation and maintenance of the 9-1-1 system on behalf of the local government or on behalf of employees hired by the local government solely for the operation and maintenance of the 9-1-1 system and employees who work as directors 46-5-134(f)(2)(B)(i) $

13 Mobile communications vehicle and equipment, if the primary purpose and designation of such vehicle is to function as a backup 9-1-1 system center

13a Lease costs 46-5-134(f)(2(B)(ii) $

13b Purchase costs 46-5-134(f)(2(B)(ii) $

13c Maintenance costs 46-5-134(f)(2(B)(ii) $

14 Allocation of indirect costs associated with supporting the 9-1-1 system center and operations as identified and outlined in an indirect cost allocation plan approved by the local governing authority that is consistent with the costs allocated within the local government to both governmental and business-type activities 46-5-134(f)(2)(B)(iii) $ 160,000

15 Mobile public safety voice and data equipment, geo-targeted test messaging alert systems, or towers necessary to carry out the function of 9-1-1 system operations

15a Lease costs 46-5-134(f)(2(B)(iv) $

15b Purchase costs 46-5-134(f)(2(B)(iv) $

15c Maintenance costs 46-5-134(f)(2(B)(iv) $

16 Public safety voice and data communications systems located in the 9-1-1 system facility that further the legislative intent of providing the highest level of emergency response service on a local, regional, and state-wide basis, including equipment and associated hardware and software that supports the use of public safety wireless voice and data communication systems

16a Lease costs 46-5-134(f)(2(B)(v) $ 214,294

16b Purchase costs 46-5-134(f)(2(B)(v) $ 1,300

16c Maintenance costs 46-5-134(f)(2(B)(v) $ 2,317

Lowndes County, Georgia Certificate of 9-1-1 Expenditures For the Year Ended June 30, 2014

152