Hall County Government’s COMPREHENSIVE ANNUAL FINANCIAL REPORT 2020 For the year ended June 30, 2020 Serving citizens is WHY WE ARE HERE CAFR Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Hall County, Georgia Prepared By: The Department of Financial Services HALL COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED June 30, 2020 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i-xiii Certificate of Achievement for Excellence in Financial Reporting xiv Organizational Chart xv Officials of Hall County, Georgia xvi FINANCIAL SECTION Independent Auditor's Report xvii-xix Management's Discussion and Analysis xx-xxxiv BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Position 1 Statement of Activities 2 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Statement of Net Position - Proprietary Funds 7 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 8 Statement of Cash Flows - Proprietary Funds 9 - 10 Statement of Assets and Liabilities - Fiduciary Funds 11 COMPONENT UNITS Combining Statement of Net Position 12 Combining Statement of Activities 13 NOTES TO FINANCIAL STATEMENTS 14 - 62 REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Net Pension Liability- ACCG Hall County Defined Benefit Plan 63 Schedule of Contributions - ACCG Hall County Defined Benefit Plan 64 Schedule of Notes to Required Supplementary Information - ACCG Hall County Defined Benefit Plan 65 Schedule of Changes in the Net OPEB Liability and Related Ratios - Hall County, Georgia Postretirement Health and Life Insurance Benefit Plans 66 Schedule of Employer Contributions - Hall County, Georgia Postretirement Health and Life Insurance Benefit Plans 67 Schedule of Notes to Required Supplementary Information - Hall County, Georgia Postretirement Health and Life Insurance Benefit Plans 68 Budgetary Comparison Schedules: -General Fund 69 - 70 -Fire Services 71 COMBINING STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 Supplemental Budgetary Comparison Schedules: -Emergency Telephone System Special Revenue Fund 74 -Parks Marina Special Revenue Fund 75 -Multiple Grants Special Revenue Fund 76 -Special Assessments Special Revenue Fund 77 -Restricted Program Special Revenue Fund 78 -Hotel/Motel Tax Special Revenue Fund 79 -Law Library Special Revenue Fund 80 -Allen Creek Soccer Complex Special Revenue Fund 81 -Parks & Leisure Services Special Revenue Fund 82 -Development Services Special Revenue Fund 83 -Emergency Services Special Revenue Fund 84 INTERNAL SERVICE FUNDS Combining Statement of Net Position 85 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 86 Combining Statement of Cash Flows 87 FIDUCIARY FUNDS Balance Sheet - All Agency Funds 88 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 89 SUPPLEMENTAL INFORMATION Schedule of Projects Constructed with Special Purpose Local Option Sales Tax 90-95 STATISTICAL SECTION TABLE FINANCIAL TRENDS Net Position by Component 1 96 Changes in Net Position 2 97-98 Fund Balances of Governmental Funds 3 99 Changes in Fund Balances of Governmental Funds 4 100 General Fund Budget-Chart of Current Year and Next Year's Budgets 4A 101 General Governmental Tax Revenues by Source 5 102 REVENUE CAPACITY Assessed Value and Estimated Actual Value of Taxable Property 6 103 Property Tax Rates (Direct and Overlapping Governments) 7 104 Principal Property Taxpayers 8 105 Property Tax Levies and Collections 9 106 Taxable Sales and Sales Taxes 10 107 Special Local Option Sales Tax Collections 10A 108 DEBT CAPACITY Ratios of Outstanding Debt by Type 11 109 Other Long-term Liabilities 11A 110 Ratios of Net General Bonded Debt Outstanding 12 111 Direct and Overlapping Governmental Activities Debt 13 112 Legal Debt Margin Information 14 113 Pledged Revenue Coverage 15 114 DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 16 115 Principal Employers 17 116 OPERATING INFORMATION Full-Time Equivalent County Government Employees by Function 18 117 Operating Indicators by Function 19 118 Capital Asset Statistics by Function 20 119 COMPLIANCE AND INTERNAL CONTROL REPORTS Schedule of Expenditures of Federal Awards 120-121 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 122-123 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance Required by the Uniform Guidance 124-126 Auditor's Schedule of Findings and Questioned Costs 127-128 Hall County Government BOARD OF COMMISSIONERS December 23, 2020 Citizens, POST OFFICE DRAWER 1435 Stakeholders, GAINESVILLE, GA 30503 Chairman, And Board of Commissioners of t: 770.535.8288 | f: 770.531.3972 Hall County, Georgia: We are pleased to present the fiscal year 2020 Comprehensive Annual Financial CHAIRMAN Richard P. Higgins Report for Hall County, Georgia, which details our sound fiscal position. The County’s strength is due in part to our long standing tradition of conservative fiscal management. Kathy L. Cooper, District 1 In fiscal year 2020, Hall County Government continued to provide excellent services Billy Powell, District 2 to its citizens while maintaining conservative spending practices. Shelly Echols, District 3 Jeff Stowe, District 4 The Comprehensive Annual Financial Report (CAFR) of Hall County, Georgia for the fiscal year ended June 30, 2020, was prepared as required by both local ordinances COUNTY ADMINISTRATOR and state statutes. It provides detailed information on how the County receives, Jock A. Connell spends, and accounts for its revenues, along with key financial indicators. The County is responsible for the accuracy, fairness, and completeness of the data presented. This ASSISTANT document contains all information necessary to gain an understanding of Hall COUNTY ADMINISTRATOR County’s financial activities in fiscal year 2020. We encourage readers to consider this Marty Nix transmittal letter in conjunction with the management discussion and analysis and annotated financial statements found immediately following the report of the Independent Auditor. ASSISTANT COUNTY ADMINISTRATOR The County’s financial statements have been audited by Bates, Carter, & Co., LLP, a Zachary T. Propes firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal COUNTY CLERK year ended June 30, 2020, are free of material misstatement. The independent audit Lisa A. Ritchie involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; internal controls; 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 unmodified opinion that Hall County, Georgia’s financial statements for the fiscal year ended June 30, 2020, are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report. Hall County receives financial assistance through various federal grant programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides oversight and articulates government requirements for receiving and using federal awards. Audits of programs receiving federal grants have been performed for the fiscal year ending June 30, 2020. The required reports on supplemental information, compliance, internal controls and various supplementary schedules are included under the Compliance Section. PROFILE OF THE GOVERNMENT Hall County was established on December 15, 1818. It was named for Dr. Lyman Hall, a signer of the Declaration of Independence and later governor of Georgia. Hall County rests on the shores of the Chattahoochee River, Lake Sidney Lanier, and the foothills of the Blue Ridge Mountains. Lake Sidney Lanier is named for the Georgia author and musician Sidney Lanier and was created in 1957. Lake Lanier generates over 10 million visitors annually, and most notably, hosted the rowing and sprint canoeing events during the 1996 Summer Olympics. Hall County, located in northeast Georgia, is approximately 50 miles northeast of Atlanta and 40 miles northwest of Athens. Perfectly located one hour from the world’s busiest airport, Hartsfield-Jackson Atlanta International Airport, Hall County is a highly desirable community, highlighting the best of what the State of Georgia has to offer. Whether it is raising a family, industry, recreation, quality of life, or retirement, Hall County is a true destination community. It is with sincere conviction and truth that we proudly