Expenses and Revenues Up in 2018 Audit

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2018 audit

Blue Ridge, Ga – Rushton & Company presented 2018 audit findings and attempted to address the reasoning behind adjusting each line item at the end of the year.

The company’s representative Sam Latimer outlined 2018 audit and issued an unmodified opinion aka no areas for concern. However, left 12 comments for improvements in their report.

Overall, Fannin County Government behaved fiscally responsible according to the audit, not exceeding the operating budget. However, health insurance significantly overspent.

The operations budget took in $26,680,936M in net investment in capital assets, $6,639,299M in restricted assets, $9,304,456M in unrestricted assets, and $42,624,691 for a total net position.

2018 audit

Fannin County’s Net Position over the last three years.

Revenue over expenses for the year equaled $1,194,327, which occurred because of the increase in property and sales taxes. Property tax increased $229,000 and a total revenue increase of $740,000, most of that comes from sales tax. LOST is up $260,000, and title ad valorem increased by $186,669. Fines and forfeitures decreased by $175,000, and other revenues increased $80,000.

Expenditures increased by $1.1M, largely due to insurance claims. The health insurance claims accounted for $700,000, superior court increased around $100,000, and fire increased by $527,000, due to buying three new trucks.

The unassigned fund balance accounts for 6.7 months of operation with $10,314,184, which is considered great shape by the auditors. The state of Georgia requires counties to have at two to four months of operating expenses stored away.

General Fund growth over three years.

Post One Commissioner Earl Johnson questioned who made the recommendation and decision behind moving each line item at the end of the year.

“You’re here to just look at what we’re doing. Why are you helping move funds from one line to another?” asked Johnson.

Latimer explained that he just advises and management makes the final decisions. Rushton and Company make recommendations.

“Why are you helping CFO move numbers around,” questioned Johnson, “The reason why I am asking is because I think it’s part of my job.”

Rushton and Company has always made the three percent adjustments, and try to advise, but not make final decisions. Latimer stated he didn’t know why the final adjustment took place so late into the year this year.

Johnson stated that he would have loved to talk to Latimer before this meeting, but he never spoke to him or anyone from Rushton and Company this year. It’s difficult to understand the budget when you can add $500,000 to roads for one large adjustment at the end of the year. It suggests that maybe some budgets don’t need to be as large.

“Nothing raised a flag on my end,” said Latimer, “If adjustments should be done earlier and throughout the year, then that might need what we get to. The year-end adjustment then hopefully would be pretty small. We would come to you for approval of each adjustment. ”

Audit shows Fannin County finances in good standing

Community, News

Blue Ridge, Ga. – The Fannin County 2017 audit concluded with much praise from independent accounting firm Rushton and Company. The overall state of finances for the county are “very healthy”.

Sam Latimer, CPA and audit manager with Rushton and Company, gave citizens an overview of the Fannin County 2017 audit at the June 26 Board of Commissioners (BOC) meeting.

Rushton and Company was hired to analyze the county’s 2017 finances and give an unbiased opinion based on an in-depth look at all county run departments.

Latimer noted that working with the county and management had been very easy for the company, and that all county employees had been very cooperative and helpful in providing the firm with all the information they needed to conduct the audit.

“You (Fannin County) have a very capable finance department,” Latimer spoke specifically of the work done by Fannin County Finance Director Robin Gazaway.

Net assets were among the highlights given by Latimer. Net assets make up the county’s infrastructure (ex. roads and buildings), equipment, restricted funds (ex. SPLOST or Special Purpose Local Option Sales Tax), and unrestricted funds (ex. funds remaining after the first two categories are filled).

During the 2017 fiscal year Fannin County net assets grew by $1.6 million, up 27 percent from 2016.

Latimer dubbed this increase a “very healthy year for the county”.

One of the largest components of Fannin County finances is the General Fund, and like the net assets, revenues to this fund showed positive growth with a 5.7 percent increase.

Nearly $1,000,000 of taxpayer funds were saved through cuts made to the budget of the Public Works department (Roads and Bridges).

“Due mostly to personal services,” Latimer said explaining where these cuts came from, “There was a large decrease in the number of employees.”

Latimer did note that the county’s insurance claims had risen by almost $1,000,000, but was not alarmed by this increase stating, “This is an area that is hard to control because your claims are based on people’s health.”

Insurance claims will fluctuate from year to year according to Latimer: “So that just happens to be up this year.”

The unassigned fund balance did decrease slightly from the previous year of 2016. The funds in this area, however, are still well above standard expectations.

According to the Association County Commissioners of Georgia (ACCG) the unassigned fund balance should have enough finances available for a county to operate approximately two months if all revenues stopped.

“What that means,” Latimer spoke of the remaining balance in Fannin County’s unassigned fund, “is that if you were to close the doors today and stop receiving revenue; you could operate for almost seven months.”

“Most (counties) are probably between two and three months,” Latimer added, “You guys are definitely above what the average would be.”

Fannin County Chairman Stan Helton noted that spending had slowed, but stated that the ultimate goal of the county should be to bring expenditures down enough to begin adding revenues back to the fund balance once again.

Post 1 Commissioner Earl Johnson agreed with Helton on this matter and stated of the audit, “It shows that next year we’re going to make some, as you just said, either some cuts or we’re going to have to look at other ways of revenue.”

Johnson stated that the audit is a good way to see exactly where the county stands: “This will allow all of us to make a very informed decision as to where we are going to go next year.”

At the conclusion of the presentation, when asked about the overall strength of Fannin County financially, Latimer simply replied, “Very healthy. Very good.”

The full 2017 audit , including the management report, will be available for the public to view on the Fannin County Government website.

 

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Board of Commissioners keep Fannin County finances as top priority

Community, News

BLUE RIDGE, Ga. – The Fannin County Board of Commissioners (BOC) are moving forward in 2018 with the county budget still being a top priority. The BOC began their first meeting of the year by passing a resolution acknowledging that they upheld and will continue to uphold progress made in the passing of the 2018 Budget at their Dec. 12 meeting.

This resolution stated that the commissioners complied with Georgia state laws when adopting this year’s budget and acknowledged that commissioners kept promises made throughout the year in regard to the budget, including an all day public workshop on the topic.

Fannin County, Blue Ridge, Georgia, Board of Commissioners, Chairman Stan Helton, Post One Commissioner Earl Johnson, Post Two Commissioner Larry Joe Sosebee, 2018 Budget, 2017 Audit, Rushton and Company, Hotel / Motel Tax, Finance Director Robin Gazaway, Ed Hawkins, Ken Petty, Public Works, Fannin County Water Authority, Building Maintance, General Election 2018, Board of Education, Qualifying Fees

BOC holds first meeting of 2018.

Commissioners also voted unanimously to hire Rushton and Company to conduct the audit on the county’s 2017 fiscal year. Rushton and Company, accounting and business advisors, were responsible for the 2016 audit.

“I think they did a pretty thorough job,” Post 1 Commissioner Earl Johnson discussed of the hire, “and I don’t see any reason not to use them again.”

Rushton and Company proposed a contract with the county to continue services for this year at the same rate as the previous year and to not exceed a total of $54,900. A report on the county’s finances will be made available by June 30, 2018.

Johnson, a long-time proponent of a more transparent approach to the use of the Hotel/Motel Tax, discussed with the board setting up a public workshop to address this issue.

In 2018, the county will receive an extra 10 percent proportion of this tax. Post 2 Commissioner Larry Joe Sosebee recommended allowing some of these funds to accumulate before addressing their use.

Commission Chairman Stan Helton stated that the extra 10 percent, based on the previous year’s revenue, would come to approximately $150,000.

Fannin County Finance Director Robin Gazaway stated that a separate account could be set up specifically for the 10 percent increase. The board agreed to separate this revenue and schedule a workshop to discuss where these funds will be allocated.

Fannin County, Blue Ridge, Georgia, Board of Commissioners, Chairman Stan Helton, Post One Commissioner Earl Johnson, Post Two Commissioner Larry Joe Sosebee, 2018 Budget, 2017 Audit, Rushton and Company, Hotel / Motel Tax, Finance Director Robin Gazaway, Ed Hawkins, Ken Petty, Public Works, Fannin County Water Authority, Building Maintance, General Election 2018, Board of Education, Qualifying Fees

Fannin County Library Branch Manager Andrew Vickers accepts paperwork confirming appointment of Steven Miracle to the Board of Trustees.

Steven Miracle is the latest appointment to the Board of Trustees in Fannin County. Andrew Vickers, Fannin County Library Branch Manager, was present at the meeting as the board discussed the newest appointee.

Helton addressed Vickers, “Andrew, I understand this fills your board up with what the county appoints are allowed?”

To which Vickers acknowledged that this would fill the final position on the Board of Trustees.

“Mr. Miracle does a lot of good things for this county, and I certainly have no questions,” Helton stated before asking post commissioners their thoughts. All commissioners agreed that this would be a good addition for the board and voted unanimously in favor of Miracle.

Former Building Maintenance Supervisor Ken Petty recently transferred to the Public Works department, leaving his position with Building Maintenance open.

“I would like to recommend that we appoint Mr. Ed Hawkins as the new department head over at maintenance,” Helton suggested to the board.

Sosebee replied to this recommendation, “Good choice.”

Johnson clarified that the appointment of Hawkins to this position would not change the number of employees in the maintenance department. Hawkins, formerly with the Fannin County Water Authority, was approved for this position.

The board also approved the qualification fees for the 2018 general election. The Post 2 Commissioner seat along with two seats on the Board of Education will be on the ballot this year.

The qualifying fees for these positions are $349 for Post 2 Commissioner and $144 each for a seat with the Board of Education. Qualifying begins March 5 at 9 a.m. and will close on March 9 at noon.

The general election will take place on Nov. 11, 2018.

 

Fetch Your News is a hyper local news outlet that attracts more than 300,000 page views and 3.5 million impressions per month in Dawson, Lumpkin, White, Fannin, Gilmer, Pickens, Union, Towns and Murray counties as well as Cherokee County in N.C. FYNTV attracts approximately 15,000 viewers per week and reaches between 15,000 to 60,000 per week on our Facebook page. For the most effective, least expensive local advertising, call 706-276-6397 or email us at advertise@FetchYourNews.com

Author

Natalie Kissel

Natalie@FetchYourNews.com

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