Comprehensive Annual Financial Report – Year Ended 2017
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2017COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017 GWINNETT COUNTY, GEORGIA 2017COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017 Prepared by: Department of Financial Services and the Communications Division BOARD OF COMMISSIONERS Charlotte Nash Jace Brooks Lynette Howard Tommy Hunter John Heard Chairman District 1 District 2 District 3 District 4 75 LANGLEY DRIVE • LAWRENCEVILLE, GEORGIA WWW.GWINNETTCOUNTY.COM TABLE OF CONTENTS –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– INTRODUCTORY SECTION (Unaudited) Letter of Transmittal––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1 Profile of the Government ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 3 Assessing the County’s Economic Condition ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 4 Accomplishments ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 11 Awards and Acknowledgements ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 14 Certificate of Achievement for Excellence in Financial Reporting ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 15 Gwinnett County Organizational Chart –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 16 County Administration, Department Directors, Elected Officials, and Judicially Appointed Officials ––––––––––––––––––––––––––––––––––––––––– 17 Department of Financial Services Organizational Chart ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 18 Accounting Division –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 19 FINANCIAL SECTION Independent Auditors’ Report –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 20 Management’s Discussion and Analysis ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 23 Overview of the Financial Statements –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 23 Financial Highlights –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 26 Governmentwide Financial Analysis ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 27 Financial Analysis of the Government’s Funds ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 31 General Fund Budgetary Highlights –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 34 General Fund Actual Revenues and Expenditures versus Budget ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 34 Capital Assets ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 35 Debt Administration –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 36 Economic Factors and Next Year’s Budgets and Rates ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 37 Requests for Information –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 37 Basic Financial Statements ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Statement of Net Position –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 38 Statement of Activities –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 39 Governmental Funds Balance Sheet ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 40 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ––––––––––––––––––––––––––––––––––––––––– 41 FY 2017 CAFR • I | ii FINANCIAL SECTION – continued Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances –––––––––––––––––––––––––––––––––––––––––– 42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ––––––– 43 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (Budget Basis) –––––––––––––––––––––––– 44 Fire and EMS District Fund Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (Budget Basis) ––––––––––––––– 45 Police Services District Fund Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (Budget Basis) –––––––––––––– 46 Proprietary Funds Statement of Net Position ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 47 Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position ––––––––––––––––––––––––––––––––––––––––––––– 48 Proprietary Funds Statement of Cash Flows –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 49 Fiduciary Funds Statement of Fiduciary Net Position –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 50 Pension and OPEB Trust Funds Statement of Changes in Fiduciary Net Position –––––––––––––––––––––––––––––––––––––––––––––––––– 51 Component Units Combining Statement of Net Position –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 52 Component Units Combining Statement of Activities –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 53 Notes to the Financial Statements (The Notes to the Financial Statements are an integral part of the “liftable” basic financial statements.) –––––––––––– 54 Required Supplementary Information –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Defined Benefit Pension Plan ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––110 Other Post-Employment Benefits –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––113 Other Supplementary Information ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Non-Major Governmental Funds –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––114 Other Governmental Funds Combining Balance Sheet –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––117 Other Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –––––––––––––––––––––––––––––119 Budgetary Compliance ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––122 Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budget Basis) –––––––––––––––––––123 Capital Projects Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budget Basis) –––––––––––––––––––129 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budget Basis) ––––––––––––––––––––––131 Grant Fund Schedule of Revenues and Expenditures, Budget and Actual (Budget Basis) –––––––––––––––––––––––––––––––––––––––––––––132 Other Enterprise Funds ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––133 Other Enterprise Funds Combining Statement of Net Position ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––134 Other Enterprise Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Position –––––––––––––––––––––––––––––––––135 Other Enterprise Funds Combining Statement of Cash Flows –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––136 FY 2017 CAFR • I | iii FINANCIAL SECTION – continued Internal Service Funds ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––137 Internal Service Funds Combining Statement of Net Position –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––138 Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ––––––––––––––––––––––––––––––––––139 Internal Service Funds Combining Statement of Cash Flows –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––140 Fiduciary Funds ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––141 Pension and OPEB Trust Funds Combining Statement of Fiduciary Net Position ––––––––––––––––––––––––––––––––––––––––––––––––––142 Pension and OPEB Trust Funds Combining Statement of Changes in Fiduciary Net Position–––––––––––––––––––––––––––––––––––––––––––143 Agency Funds Combining Statement of Fiduciary Assets and Liabilities ––––––––––––––––––––––––––––––––––––––––––––––––––––––––144 Agency Funds Combining Statement of Changes in Fiduciary Assets and Liabilities ––––––––––––––––––––––––––––––––––––––––––––––––145 STATISTICAL SECTION (Unaudited) Statistical Section – Index –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– S-1 Net Position by Components – Last Ten Fiscal Years ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– S-2 Changes in Net Position – Last Ten Fiscal Years –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– S-3 Fund Balances, Governmental Funds – Last Ten Fiscal Years –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– S-5 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years –––––––––––––––––––––––––––––––––––––––––––––––––––––––– S-6 Assessed Value and Estimated Value of Taxable Property – Last Ten Fiscal