Fund Financial Statements
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COUNTY OF PRINCE GEORGE, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2009 COUNTY OF PRINCE GEORGE,VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2009 Prepared By: Prince George County Finance Department i COUNTY OF PRINCE GEORGE, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page INTRODUCTORY SECTION Title Page i Table of Contents iii-vi Principal Officials vii Organizational Chart ix Certificate of Achievement xi Letter of Transmittal xiii-xvii FINANCIAL SECTION Independent Auditors’ Report 1-2 Management’s Discussion and Analysis 3-9 Basic Financial Statements Government-wide Financial Statements: Exhibit 1 Statement of Net Assets 15 Exhibit 2 Statement of Activities 16-17 Fund Financial Statements: Exhibit 3 Balance Sheet–Governmental Funds 20 Exhibit 4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 21 Exhibit 5 Statement of Revenues, Expenditures and Changes in Fund Balances–Governmental Funds 22 Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Exhibit 7 Statement of Net Assets–Proprietary Funds 24 Exhibit 8 Statement of Revenues, Expenses and Changes in Net Assets–Proprietary Funds 25 iii COUNTY OF PRINCE GEORGE, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS (CONTINUED) Page FINANCIAL SECTION:(CONTINUED) Basic Financial Statements: (Continued) Fund Financial Statements: (Continued) Exhibit 9 Statement of Cash Flows–Proprietary Funds 26 Exhibit 10 Statement of Net Assets–Fiduciary Fund 27 Exhibit 11 Statement of Changes in Fiduciary Net Assets–Pension Trust Fund 28 Notes to Financial Statements 29-62 Required Supplementary Information: Exhibit 12 Schedule of Revenues, Expenditures and Changes in Fund Balances–Budget and Actual–General Fund 65-68 Exhibit 13 Schedule of Funding Progress for the Virginia Retirement System, Length of Service Awards Pension Program and OPEB 69 Other Supplementary Information: Exhibit 14 Schedule of Revenues, Expenditures and Changes in Fund Balances–Budget and Actual–County Capital Projects Fund 73-74 Exhibit 15 Schedule of Revenues, Expenditures and Changes in Fund Balances–Budget and Actual–Debt Service Fund 75 Exhibit 16 Combining Balance Sheet—Nonmajor Governmental Funds 76 Exhibit 17 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Governmental Funds 77 Exhibit 18 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual—Nonmajor Governmental Funds 78-79 Exhibit 19 Combining Balance Sheet—Agency Funds 80 Exhibit 20 Statement of Changes in Assets and Liabilities–Agency Funds 81 iv COUNTY OF PRINCE GEORGE, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS (CONTINUED) Page FINANCIAL SECTION:(CONTINUED) Other Supplementary Information: (Continued) Discretely Presented Component Unit—School Board: Exhibit 21 Combining Balance Sheet 85 Exhibit 22 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds 86 Exhibit 23 Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual 87 Exhibit 24 Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual—Nonmajor Special Revenue Fund 88 STATISTICAL SECTION: Statistical Tables: Table 1 Net Assets by Component 91 Table 2 Changes in Net Assets 92-93 Table 3 Fund Balance Governmental Funds 94-95 Table 4 Changes in Fund Balances—Governmental Funds 97 Table 5 General Governmental Tax Revenues by Source 98-99 Table 6 Assessed Value and Actual Value of Taxable Property and Tax Rates 100-101 Table 7 Principal Property Taxpayers 102 Table 8 Property Tax Levies and Collections 103 v COUNTY OF PRINCE GEORGE, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS (CONTINUED) Page STATISTICAL SECTION:(CONTINUED) Statistical Tables: (Continued) Table 9 Ratios of Outstanding Debt by Type 104 Table 10 Ratios of General Bonded Debt by Type 105 Table 11 Computation of Legal Debt Margin 106 Table 12 Demographic and Economic Statistics 107 Table 13 Principal Employers 108 Table 14 County Government Employees 109 Table 15 Operating Indicators by Function/Program 110 Table 16 Capital Asset Statistics 111 COMPLIANCE SECTION: 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 113-114 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 115-116 Schedule of Expenditures of Federal Awards 117-118 Notes to Schedule of Expenditures of Federal Awards 119 Schedule of Findings and Questioned Costs 120 vi COUNTY OF PRINCE GEORGE,VIRGINIA PRINCIPAL OFFICIALS ON JUNE 30, 2009 Board of Supervisors Henry D. Parker, Jr., Chairperson Jerry J. Skalsky, Vice-Chairperson Alan R. Carmichael William A. Robertson, Jr. G. Reid Foster, Jr. County School Board Robert E. Cox, Jr., Chairperson Roger Franklin, Vice-Chairperson Kevin S. Foster Lewis E. Stevenson Ann C. Parr Other Officials Judge of the Circuit Court ...............................................................................Samuel E. Campbell Judge of the Circuit Court .....................................................................................W. Allan Sharrett Clerk of the Circuit Court...................................................................................C. Bishop Knott, Jr. Judge of the General District Court......................................................................... J. Larry Palmer Judge of the Juvenile and Domestic Relations Court ............................... Jacqueline R. Waymack Clerk of the Combined Court ...............................................................................Ellen T. Chiasson Commonwealth’s Attorney............................................................................................ Jay C. Paul Commissioner of the Revenue......................................................................... Darlene M. Rowsey Treasurer .................................................................................................................Jean N. Barker Sheriff ..........................................................................................................................H.E. Allin, III County Administrator .......................................................................................... John G. Kines, Jr. Superintendent of Schools...................................................................................... Bobby Browder Director of Social Services.................................................................................. William F. Gandel vii This Page Intentionally Left Blank ix This Page Intentionally Left Blank xi This Page Intentionally Left Blank COUNTY OF PRINCE GEORGE, VIRGINIA John G. Kines, Jr. BOARD OF SUPERVISORS County Administrator Henry D. Parker, Jr. Jerry J. Skalsky Alan R. Carmichael G. Reid Foster, Jr. William A. Robertson, Jr. December 12, 2009 The Honorable Members of the Board of Supervisors County of Prince George, Virginia Members of the Board: We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of Prince George County (the "County") for the fiscal year ended June 30, 2009. This report was prepared by the County's Department of Finance. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data, as presented, is accurate in all material respects; 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; and that all disclosures necessary to enable the reader to gain the maximum understanding of the County's financial affairs have been included. The management of the County is responsible for establishing and maintaining an internal control structure to ensure the protection of County assets. In developing and evaluating the County's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the County's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Section 15.2-2511 of the Code of Virginia requires that local governments have their financial records audited annually as of the end of the fiscal year by an independent certified public accountant. The County has engaged the independent accounting firm of Robinson, Farmer, Cox