Town of Blacksburg, Virginia Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 TOWN of BLACKSBURG, VIRGINIA
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Town of Blacksburg, Virginia Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 TOWN OF BLACKSBURG, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED June 30, 2020 DEPARTMENT OF FINANCIAL SERVICES TOWN OF BLACKSBURG, VIRGINIA TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal .......................................................................................................................................... i Certificate of Achievement for Excellence in Financial Reporting ............................................................. viii Directory of Principal Officials .................................................................................................................... viiii Organizational Chart ........................................................................................................................................ X FINANCIAL SECTION Independent Auditor’s Report ....................................................................................................................... 1-3 Management’s Discussion and Analysis .................................................................................................... 4-13 Basic Financial Statements Government-wide Financial Statements Exhibit 1 Statement of Net Position ................................................................................................... 15 Exhibit 2 Statement of Activities ........................................................................................................ 16 Fund Financial Statements Exhibit 3 Balance Sheet – Governmental Funds ................................................................................ 17 Exhibit 4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ...................................................................... 18-19 Exhibit 5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund (Non-GAAP Budgetary Basis) .............................. 20 Exhibit 6 Statement of Net Position – Proprietary Funds .................................................................. 21 Exhibit 7 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................................................................... 22 Exhibit 8 Statement of Cash Flows – Proprietary Funds .............................................................. 23-24 Exhibit 9 Statement of Fiduciary Net Position – Fiduciary Funds .................................................... 25 Exhibit 10 Statement of Changes in Fiduciary Net Position – Fiduciary Fund .................................. 26 Notes to Financial Statements ............................................................................................................... 27-67 Required Supplementary Information Exhibit 11 Schedule of Changes in Net Pension Liability and Related Ratios ................................... 69 Exhibit 12 Schedule of Pension Contributions ..................................................................................... 70 Exhibit 13 Schedule of Employer’s Share of Net OPEB Liability ...................................................... 70 Exhibit 14 Schedule of Changes in Net OPEB Liability and Related Ratios ..................................... 71 Exhibit 15 Schedule of OPEB Contributions ....................................................................................... 72 Exhibit 16 Schedule of Investment Returns – OPEB Trust Fund ....................................................... 72 Notes to Required Supplementary Information .................................................................................... 73-74 TOWN OF BLACKSBURG, VIRGINIA TABLE OF CONTENTS Other Supplementary Information Combining Statements Exhibit A-1 Combining Balance Sheet – Non-Major Governmental Funds .................................... 77 Exhibit A-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Non-Major Governmental Funds .............................................. 78 Exhibit B-1 Combining Statement of Fiduciary Net Position – Agency Funds .............................. 80 Exhibit B-2 Combining Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds .......................................................................................................... 81 Supporting Schedules Schedule 1 Schedule of Expenditures of Federal Awards ....................................................................... 83 Schedule 2 Computation of Legal Debt Margin ...................................................................................... 84 STATISTICAL SECTION Table 1 Net Position by Component ....................................................................................................... 86 Table 2 Changes in Net Position by Component .............................................................................. 87-88 Table 3 Fund Balances – Governmental Funds ..................................................................................... 89 Table 4 Changes in Fund Balances – Governmental Funds .................................................................. 90 Table 5 Assessed Value and Actual Value of Taxable Property ........................................................... 91 Table 6 Principal Property Tax Payers ................................................................................................... 92 Table 7 Property Tax Levies and Collections ........................................................................................ 93 Table 8 Water and Sewer Revenues by Component .............................................................................. 94 Table 9 Water and Sewer Rates .............................................................................................................. 95 Table 10 Principal Water and Sewer Customers ...................................................................................... 96 Table 11 Legal Debt Margin Information ................................................................................................ 97 Table 12 Ratios of Outstanding Debt by Type ......................................................................................... 98 Table 13 Pledged Revenue Coverage ....................................................................................................... 99 Table 14 Demographic and Economic Statistics .................................................................................... 100 Table 15 Principal Employers ................................................................................................................. 101 Table 16 Full-Time Equivalent Town Government Employees by Function/Program ........................ 102 Table 17 Operating Indicators by Function/Program ............................................................................. 103 Table 18 Capital Asset and Infrastructure Statistics by Function/Program ........................................... 104 Table 19 Continuing Bond Disclosures ........................................................................................... 105-110 COMPLIANCE SECTION 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 ........................................................................ 112-113 Summary of Compliance Matters ................................................................................................................ 114 Schedule of Findings and Responses ........................................................................................................... 115 Summary Schedule of Prior Audit Findings ............................................................................................... 116 INTRODUCTORY SECTION November 30, 2020 The Honorable Mayor, Members of Town Council and the Citizens of the Town of Blacksburg, Virginia: Section 15.2-2511 of the Code of Virginia, requires an annual independent audit and report of financial activity of the Town of Blacksburg, Virginia (the “Town”) presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accounts. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the Town for the fiscal year ended June 30, 2020. This report consists of management’s representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our