No Moss 3 Landfill Online Library › Russell County › Audit and Budget Information › 2022-Audit
2022-Audit
Document Date: January 1, 2022 Document: 2022-Audit.pdf
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COUNTY OF RUSSELL, VIRGINIA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
COUNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
COUNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page List of Elected and Appointed Officials … 1
FINANCIAL SECTION
Independent Auditors’ Report … 2-5
Exhibit Page Basic Financial Statements:
Government-wide Financial Statements: Statement of Net Position … 1 6-7 Statement of Activities … 2 8
Fund Financial Statements: Balance Sheet – Governmental Funds … 3 9
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position … 4 10 Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................... 5 11
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ............. 6 12
Statement of Net Position – Proprietary Funds … 7 13
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds … 8 14
Statement of Cash Flows – Proprietary Funds … 9 15 Statement of Fiduciary Net Position – Fiduciary Funds … 10 16 Statement of Changes in Fiduciary Net Position – Fiduciary Funds … 11 17
Notes to the Financial Statements … 18-96
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund … 12 97 Special Revenue Fund – Coal Road Fund … 13 98 Special Revenue Fund – CARES Fund … 14 99 Special Revenue Fund – ARPA Fund … 15 100 Schedule of Employer’s Proportionate Share of Net Pension Liability … 16 101 Schedule of Changes in Net Pension Liability and Related Ratios – Component Unit School Board (nonprofessional) … 17 102 Schedule of Employer Contributions – Pension Plans … 18 106 Notes to Required Supplementary Information – Pension Plans … 19 104 Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios –
Primary Government … 20 105COouNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT For THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page List of Elected and Appointed Officials. 1 FINANCIAL SECTION Independent Auditors’ Report … 2-5
Exhibit Page Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position . 1 67 Statement of Activities 2 8 Fund Financial Statements: Balance Sheet - Governmental Funds … 3 9 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position … 4 10 Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds . 5 oo Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities … 6 12 Statement of Net Position - Proprietary Funds … 7 B Statement of Revenues, Expenses, and Changes in Net Position -
Proprietary Funds … 8 14 Statement of Cash Flows - Proprietary Funds. 9 15 Statement of Fiduciary Net Position - Fiduciary Funds 10 16 Statement of Changes in Fiduciary Net Position - Fiduciary Funds . 1017
Notes to the Financial Statements … 18-96 Required Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund . 2 «97 Special Revenue Fund - Coal Road Fund 3 (98 Special Revenue Fund - CARES Fund 14 (99 Special Revenue Fund - ARPA Fund 15 100 Schedule of Employer’s Proportionate Share of Net Pension Liability. 16 101 Schedule of Changes in Net Pension Liability and Related Ratios - Component Unit School Board (nonprofessional) . 17 102 Schedule of Employer Contributions - Pension Plans . 18 106 Notes to Required Supplementary Information - Pension Plans 19 104 Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios - Primary Government … 20 105
COUNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Exhibit Page Required Supplementary Information: (Continued)
Notes to Required Supplementary Information – County OPEB … 21 106 Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios –
Component Unit School Board … 22 107 Notes to Required Supplementary Information - School OPEB … 23 108 Schedule of Employer’s Share of Net OPEB Liability – Group Life Insurance Plan … 24 109 Schedule of Employer Contributions – Group Life Insurance Plan … 25 110 Notes to Required Supplementary Information – Group Life Insurance Plan … 26 111 Schedule of Changes in Employer’s Net OPEB Liability and Related Ratios –
Primary Government – Health Insurance Credit Plan … 27 112 Schedule of Changes in Employer’s Net OPEB Liability and Related Ratios –
Component Unit School Board (nonprofessional) – Health Insurance Credit Plan … 28 113 Schedule of Employer Contributions – Health Insurance Credit Plan … 29 114 Notes to Required Supplementary Information – Health Insurance Credit Plan … 30 115 Schedule of School Board’s Share of Net OPEB Liability – Teacher Employee Health Insurance Credit Plan … 31 116 Schedule of Employer Contributions – Teacher Employee Health Insurance Credit Plan … 32 117 Notes to Required Supplementary Information – Teacher Employee Health
Insurance Credit Plan … 33 118 Schedule of Employer’s Share of Net LODA OPEB Liability … 34 119 Schedule of Employer Contribution - LODA … 35 120 Notes to Required Supplementary Information - LODA… 36 121Other Supplementary Information:
Discretely Presented Component Unit – School Board:
Balance Sheet – Governmental Funds … 37 122 Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds … 38 123 Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual … 39 124
Schedule Page Supporting Schedules:
Schedule of Revenues – Budget and Actual - Governmental Funds … 1 125-129
Schedule of Expenditures – Budget and Actual - Governmental Funds … 2 130-133
CouNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT For THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Exhibit Page Required Supplementary Information: (Continued)
Notes to Required Supplementary Information - County OPEB 21 106 Schedule of Changes in Total OPEB Liability (Asset) and Relate
Component Unit School Board … 2 107 Notes to Required Supplementary Information - School OPEB . 23 108 Schedule of Employer’s Share of Net OPEB Liability - Group Life Insurance Plan 24 109 Schedule of Employer Contributions - Group Life Insurance Plan … 25° 110 Notes to Required Supplementary Information - Group Life Insurance Plan 2% 111 Schedule of Changes in Employer’s Net OPEB Liability and Related Ratios -
Primary Government - Health Insurance Credit Plan … 7 112 Schedule of Changes in Employer’s Net OPEB Liability and Related Ratios -
Component Unit School Board (nonprofessional) - Health Insurance Credit Plan … 28 113 Schedule of Employer Contributions - Health Insurance Credit Plan … 29 114 Notes to Required Supplementary Information - Health Insurance Credit Plan … 30.0115 Schedule of School Board’s Share of Net OPEB Liability - Teacher Employee Health
Insurance Credit Plan. 31116
Schedule of Employer Contributions - Teacher Employee Health Insurance Credit Plan… 32 117 Notes to Required Supplementary Information - Teacher Employee Health
Insurance Credit Plan. 33118 Schedule of Employer’s Share of Net LODA OPEB Liability 34119 Schedule of Employer Contribution - LODA 35120 Notes to Required Supplementary Information - LODA. 36121 Other Supplementary Information:
Discretely Presented Component Unit - School Board: Balance Sheet - Governmental Funds. 37,122 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds … 38123 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual . 39124
Schedule Page
Supporting Schedules: Schedule of Revenues - Budget and Actual - Governmental Funds 1125-129 Schedule of Expenditures - Budget and Actual - Governmental Funds 2130-133
COUNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Other Statistical Information:
Table Page Government-wide Information: Government-Wide Expenses by Function … 1 134 Government-Wide Revenues … 2 135
Fund Information:
General Governmental Expenditures by Function … 3 136 General Governmental Revenues by Source … 4 137 Property Tax Levies and Collections … 5 138
Assessed Value of Taxable Property … 6 139 Property Tax Rates … 7 140 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita … 8 141 Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Governmental Expenditures … 9 142COMPLIANCE SECTION
Page
Independent Auditors’ 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 … 143-144Independent Auditors’ Report on Compliance for Each Major Program and on Internal
Control over Compliance Required by the Uniform Guidance … 145-147Schedule of Expenditures of Federal Awards … 148-149 Schedule of Findings and Questioned Costs … 150-152 Summary Schedule of Prior Audit Findings … 153
COouNTY OF RUSSELL, VIRGINIA ANNUAL FINANCIAL REPORT For THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (CONTINUED)
Other Statistical Information:
Table Page Government-wide Information: Government-Wide Expenses by Function . 1 134 Government-Wide Revenues … 2 135 Fund Information: General Governmental Expenditures by Function . 3 136 General Governmental Revenues by Source 4 137 Property Tax Levies and Collections 5 138 Assessed Value of Taxable Property 6 139 Property Tax Rates … 7 140 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita… 8 141 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures. 9 142 COMPLIANCE SECTION Page Independent Auditors’ 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 … 143-144 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance… 145-147 Schedule of Expenditures of Federal Awards 148-149 Schedule of Findings and Questioned Costs 150-152 Summary Schedule of Prior Audit Findings 153
INTRODUCTORY SECTION
INTRODUCTORY SECTION
COUNTY OF RUSSELL, VIRGINIA
BOARD OF SUPERVISORS
Lou Wallace, Chairman Oris Christian, Vice Chairman Rebecca Dye David Eaton Steve Breeding Carl Rhea Tim Lovelace
COUNTY SCHOOL BOARD
Cynthia Compton, Chairman Kip Parsons, Vice Chairman Tim Ball Wayne Bostic Linda Garrett
Bob Gibson Alex Zachwieja, Jr.SOCIAL SERVICES BOARD
Brain Ferguson, Chairman Andrew Hensley, Vice Chairman Rebecca Dye Sharon Owens Donnie Ramey
OTHER OFFICIALS
Clerk of the Circuit Court … Ann S. McReynolds Commonwealth’s Attorney … Zack A. Stoots
Commissioner of the Revenue … Randy N. Williams Treasurer … Alicia McGlothlin Sheriff … Steve Dye Superintendent of Schools … Dr. Gregory A. Brown
Director of Social Services … Patrick Brunty County Administrator … Lonzo Lester County Attorney … M. Katherine Patton
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COUNTY OF RUSSELL, VIRGINIA
BOARD OF SUPERVISORS Lou Wallace, Chairman
Oris Christian, Vice Chairman Rebecca Dye David Eaton Steve Breeding Carl Rhea Tim Lovelace
COUNTY SCHOOL BOARD
Cynthia Compton, Chairman
Kip Parsons, Vice Chairman Tim Ball Wayne Bostic Linda Garrett Bob Gibson Alex Zachwieja, Jr.
SOCIAL SERVICES BOARD
Brain Ferguson, Chairman Andrew Hensley, Vice Chairman Rebecca Dye Sharon Owens Donnie Ramey
OTHER OFFICIALS
Clerk of the Circuit Court Commonwealth’s Attorney … Commissioner of the Revenue Treasurer Sheriff. Superintendent of Schools . Director of Social Services . County Administrator County Attorney…
Ann S. McReynolds Zack A. Stoots -Randy N. Williams Alicia McGlothlin …Steve Dye Dr. Gregory A. Brown Patrick Brunty Lonzo Lester M. Katherine Patton
FINANCIAL SECTION
FINANCIAL SECTION
Independent Auditors’ Report
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia, as of and for the year ended June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Counties, Cities, and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of County of Russell, Virginia, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principles
As described in Note 26 to the financial statements, in 2022, the County adopted new accounting guidance, GASB Statement Nos. 87, Leases. Our opinions are not modified with respect to this matter.
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RoBiNSON, FARMER, Cox Associates, PLLC Certified Public Accountants
CPAs | ConsutTaNnTs
Independent Auditors’ Report
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
Report on the Audit of the Financial Statements Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia, as of and for the year ended June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of ‘America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Counties, Cities, and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of County of Russell, Virginia, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principles
As described in Note 26 to the financial statements, in 2022, the County adopted new accounting guidance, GASB Statement Nos. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about County of Russell, Virginia’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Specifications for Audits of Counties, Cities, and Towns will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Specifications for Audits of Counties, Cities, and Towns, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of County of Russell, Virginia’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about County of Russell, Virginia’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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Responsibilities of Management for the Financial Statements
‘Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about County of Russell, Virginia’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Specifications for Audits of Counties, Cities, and Towns will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Specifications for Audits of Counties, Cities, and Towns, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of County of Russell, Virginia’s internal control. Accordingly, no such opinion is expressed.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
-
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about County of Russell, Virginia’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information and schedules related to pension and OPEB funding as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise County of Russell, Virginia’s basic financial statements. The accompanying combining and individual fund financial statements and schedules and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information and schedules related to pension and OPEB funding as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental ‘Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
‘Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise County of Russell, Virginia’s basic financial statements. The accompanying combining and individual fund financial statements and schedules and schedule of expenditures of federal awards, as required by Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 2, 2023, on our consideration of County of Russell, Virginia’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of County of Russell, Virginia’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering County of Russell, Virginia’s internal control over financial reporting and compliance.
Blacksburg, Virginia August 2, 2023
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 2, 2023, on our consideration of County of Russell, Virginia’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of County of Russell, Virginia’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering County of Russell, Virginia’s internal control over financial reporting and compliance.
4 4 A Pru, Fone, lop Cspot Blacksburg, Virginia
August 2, 2023
Basic Financial Statements
Basic Financial Statements
Exhibit 1 Page 1 of 2
Governmental Business-type Activities Activities Total
ASSETS
Cash and cash equivalents 16,163,851$ 4,131$ 16,167,982$
Cash in custody of others - - -
Receivables (net of allowance for uncollectibles):
Taxes receivable 9,259,768 - 9,259,768
Accounts receivable 2,150,682 11,642 2,162,324
Other receivables - - -
Rent receivable - - -
Grants receivable - - -
Interest receivable - 96 96
Notes receivable - - -
Lease receivable - current portion - - -
Lease-purchase receivable - current portion - - -
Due from component unit 200,000 - 200,000
Due from other governmental units 1,790,836 - 1,790,836
Internal balances (764) 764 -
Inventories - - -
Prepaid items - - -
Restricted assets:
Cash and cash equivalents 13,009,799 49,575 13,059,374
Investments 607 - 607
Noncurrent assets:
Net pension asset - - -
Note receivable - net of current portion - - -
Lease receivable - net of current portion - - -
Lease-purchase receivable - net of current portion - - -
Capital assets (net of accumulated depreciation/amortization):
Land 701,353 - 701,353
Land improvements - - -
Buildings and improvements 14,242,922 - 14,242,922
Machinery and equipment 1,728,548 1 1,728,549
Utility plant in service - 2,075,455 2,075,455
Construction in progress 5,164,406 - 5,164,406
Total assets 64,412,008$ 2,141,664$ 66,553,672$
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 2,023,335$ 18$ 2,023,353$
OPEB related items 1,273,993 - 1,273,993
Total deferred outflows of resources 3,297,328$ 18$ 3,297,346$
LIABILITIES
Accounts payable 1,382,447$ 16,415$ 1,398,862$
Construction payables 957,582 - 957,582
Accrued liabilities - - -
Customer deposits - - -
Unearned revenue 4,489,319 - 4,489,319
Accrued interest payable 127,934 1,245 129,179
Due to component unit 309,583 - 309,583
Long-term liabilities:
Due within one year 2,139,339 27,416 2,166,755
Due in more than one year 35,861,258 477,444 36,338,702
Total liabilities 45,267,462$ 522,520$ 45,789,982$
DEFERRED INFLOWS OF RESOURCES
Deferred revenue - property taxes 5,546,985$ -$ 5,546,985$
Pension related items 3,747,890 5,583 3,753,473
OPEB related items 930,826 - 930,826
Lease receivable related items - - -
Total deferred inflows of resources 10,225,701$ 5,583$ 10,231,284$
NET POSITION
Net investment in capital assets 6,023,741$ 1,570,596$ 7,594,337$
Restricted:
Coal Road 836,423 - 836,423
Construction - - -
Asset forfeiture funds 193,933 - 193,933
Energy Lease Project 607 - 607
Debt service and bond covenants - 49,575 49,575
Environmental waste - - -
Opioid settlement 1,245,589 - 1,245,589
Unrestricted (deficit) 3,915,880 (6,592) 3,909,288
Total net position (deficit) 12,216,173$ 1,613,579$ 13,829,752$
The accompanying notes to the financial statements are an integral part of this statement.
Primary Government
County of Russell, Virginia Statement of Net Position
June 30, 2022
-6-
Russell County Highlight
Russell County Highlight
page ot STRAT BSE ‘ines AI Toa
ah aca qt 5 termes sans tete79R {Gan nes of ates revone (Swan fr clue Ire alae mo
ah ana a esas ao. os nom
Nae recantation Cool suet eto scum pees mort
Machinery ad equipment ra sab ictal
Person rete Rome sagas 5 ws amas
countable S$ tamae sats 6 ame
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Brora ean property ts 5 5 ages
Ne overmen ncpalaate 5S sonra 5 smoan6 § 384397 nergy ent Peek ‘or @ psd toner 1205589
westeted et) was) 900.28
The ccampanyng testo the ancl statements ean ney at th tater
Exhibit 1 Page 2 of 2
Industrial Russell County Development Public Service
School Board Authority Authority
ASSETS
Cash and cash equivalents 2,297,057$ 300,513$ 314,000$
Cash in custody of others 782,239 - -
Receivables (net of allowance for uncollectibles):
Taxes receivable - - -
Accounts receivable 87,660 - 743,796
Other receivables - 8,224
Rent receivable - 70,579 -
Grants receivable - 234,312 121,742
Interest receivable - 290,106 -
Notes receivable - current portion - 4,100 -
Lease receivable - current portion - 925,517 -
Lease-purchase receivable - current portion - 1,468,471 -
Due from primary government 309,583 - -
Due from other governmental units 1,357,858 - -
Internal balances - - -
Inventories - - 75,756
Prepaid items 764,367 - -
Restricted assets:
Cash and cash equivalents - - 529,616
Investments - - -
Noncurrent assets:
Net pension asset - - 249,544
Note receivable - net of current portion - 11,539 -
Lease receivable - net of current portion - 2,470,550 -
Lease-purchase receivable - net of current portion - 6,710,597 -
Capital assets (net of accumulated depreciation/amortization):
Land 5,628,295 4,795,198 240,411
Land improvements - 1,400,101 14,250
Buildings and improvements 10,619,854 10,259,426 483,699
Machinery and equipment 2,605,294 26,104 4,175,299
Utility plant in service - - 22,589,206
Construction in progress 7,795,752 6,756,720 1,702,770
Total assets 32,247,959$ 35,732,057$ 31,240,089$
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 7,330,211$ -$ 186,602$
OPEB related items 3,225,927 - 27,514
Total deferred outflows of resources 10,556,138$ -$ 214,116$
LIABILITIES
Accounts payable 834,132$ 291,967$ 280,820$
Construction payables - 473,383 -
Accrued liabilities 1,086,820 4,427 55,427
Customer deposits - - 118,158
Unearned revenue - - -
Accrued interest payable - 124,166 66,593
Due to primary government - 200,000
Long-term liabilities:
Due within one year 980,192 4,739,026 623,136
Due in more than one year 39,527,301 18,444,853 14,481,286
Total liabilities 42,428,445$ 24,277,822$ 15,625,420$
DEFERRED INFLOWS OF RESOURCES
Deferred revenue - property taxes -$ -$ -$
Pension related items 14,883,127 - 252,953
OPEB related items 1,599,052 - 35,404
Lease receivable related items - 3,261,388 -
Total deferred inflows of resources 16,482,179$ 3,261,388$ 288,357$
NET POSITION
Net investment in capital assets 26,247,081$ 8,232,738$ 14,222,431$
Restricted:
Coal Road - - -
Construction - - 56,675
Asset forfeiture funds - - -
Energy Lease Project - - -
Debt service and bond covenants - - 176,185
Environmental waste - - 296,756
Opioid settlement - - -
Unrestricted (deficit) (42,353,608) (39,891) 788,381
Total net position (deficit) (16,106,527)$ 8,192,847$ 15,540,428$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Net Position
June 30, 2022
Component Units
-7-
Russell County Highlight
Russell County Highlight
county of Rt, ‘Statement et Poston a RTT serousore “Rumery “aunty
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Nor recebl ee porton “0
Usa recombi et pron wn
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et person et 0
{eae recone of ret prion 2008
Usa urs rca et feet poten Pete
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“ota deterted outflows of resources ee ore
ects yale swam 5 amser sae inert aber ae ington tater Deere ernie property tases, s 5 s et ester capa as Ss amon 5 sane summa
Ener eae Project vesretea ert) .353,608 a3
‘he comparing reso the arc semen an integra prt fh atone
Exhibit 2
Operating Capital Industrial Russell County Charges for Grants and Grants and Governmental Business-type Development Public Service
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total School Board Authority Authority
PRIMARY GOVERNMENT: Governmental activities:
General government administration 2,787,627$ -$ 773,488$ -$ (2,014,139)$ -$ (2,014,139)$
Judicial administration 2,904,085 15,320 888,207 - (2,000,558) - (2,000,558)
Public safety 6,244,012 96,532 2,304,029 - (3,843,451) - (3,843,451)
Public works 4,049,727 188,303 78,804 - (3,782,620) - (3,782,620)
Health and welfare 7,491,558 - 6,411,827 - (1,079,731) - (1,079,731)
Education 10,503,873 - - - (10,503,873) - (10,503,873)
Parks, recreation, and cultural 505,537 7,608 90,649 - (407,280) - (407,280)
Community development 885,795 9,824 361,464 - (514,507) - (514,507)
Interest on long-term debt 619,729 - - - (619,729) - (619,729)
Total governmental activities 35,991,943$ 317,587$ 10,908,468$ -$ (24,765,888)$ -$ (24,765,888)$
Business-type activities: Dante Sewer 299,989$ 114,414$ -$ -$ -$ (185,575)$ (185,575)$
Total primary government 36,291,932$ 432,001$ 10,908,468$ -$ (24,765,888)$ (185,575)$ (24,951,463)$
COMPONENT UNITS:
School Board 48,058,263$ 1,934,750$ 47,392,120$ -$ 1,268,607$ -$ -$
Industrial Development Authority 5,177,301 - - - - (5,177,301) -
Russell County Public Service Authority 4,092,221 3,362,565 - 615,659 - - (113,997)
Total component units 57,327,785$ 5,297,315$ 47,392,120$ 615,659$ 1,268,607$ (5,177,301)$ (113,997)$
General revenues:
General property taxes 12,256,262$ -$ 12,256,262$ -$ -$ -$
Other local taxes:
Local sales and use taxes 2,234,678 - 2,234,678 - - -
Coal road and severance taxes 1,031,770 - 1,031,770 - - -
Consumers’ utility taxes 522,412 - 522,412 - - -
Consumption taxes 72,701 - 72,701 - - -
Grantee tax 108,498 - 108,498 - - -
Other local taxes 385,212 - 385,212 - - -
Unrestricted revenues from use of money and property 116,235 - 116,235 4,607 1,711,913 1,886
Miscellaneous 1,457,633 - 1,457,633 351,799 10,242 -
Payments from the County of Russell, Virginia - - - 10,267,199 - 370,257
Grants and contributions not restricted to specific programs 2,253,930 - 2,253,930 - 2,282,470 -
Gain on sale of capital assets 408,650 - 408,650 - 14,210 -
Transfers (90,206) 90,206 - - - (27,278)
Total general revenues and transfers 20,757,775$ 90,206$ 20,847,981$ 10,623,605$ 4,018,835$ 344,865$
Change in net position (4,008,113)$ (95,369)$ (4,103,482)$ 11,892,212$ (1,158,466)$ 230,868$
Net position (deficit) - beginning 16,224,286 1,708,948 17,933,234 (27,998,739) 9,351,313 15,309,560
Net position (deficit) - ending 12,216,173$ 1,613,579$ 13,829,752$ (16,106,527)$ 8,192,847$ 15,540,428$
The accompanying notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue and
County of Russell, Virginia Statement of Activities
For the Year Ended June 30, 2022
Component UnitsGovernment
Program Revenues Primary
Changes in Net Position
-8-
anti?
County of Russel Vigna Statement of Actives,
Net (Expense) Revenve and
Program Revenues ‘Changes in Net Psion. Primary ‘Component Government Unis Operating Capital industrial Russi County charges for Grantsand—Grantsand——Governmental—_—Busines-type Development Pubic Service
unctionsProacams Expenses Services Contributions contbutions ‘ctvties——Actiiies Toul School Board Authority Authority PRIMARY GOVERNMENT:
(General goverment adminstation Sars s Sma $ aoms) § $ 2or.n0)
Suda sanitation 2.904.088 1s.20 8207 (2.00558) (2.000.358)
uc stety easaon ses 2.304.008 6.6.) 820.50]
Pic wor 408.727 18303, 7304 : (782.00) * B7200)
Heath and wevare 7.991558 gainer : (on7 (079.730)
auction 1o’so3073 (00503,87) 0.50.37)
Paks, recreation, and cultural s0s.537 608 20608 ‘aor 280) (aor 220
Community development 85,795 9m senate ter4507) (614307
Interest on longterm debt 619.709 (619.79) (619.7)
‘Total govermental actites Spas ses Toss = Sees 575.58)
Dusiness-type actives:
Dante Sewer s_woo 5 rman § $ ‘ Sess.) $5575 “otal prinary government SEBTT EzOo_S IES ETERS 157) 3ST. COMPONENT UNITS: ‘ScholBoard s Sar 5 a7ann0 § saeaeor Ss s Industria Development Authority : 67301)
3382.588 39%
asl County Publ Srvc Authority ‘Total componen units 7 AERIAL oa General revere ‘General property taxes $1256.20 5 massan s 8 : (tne oat nes: Lal aes and ue tones 22ers 2a4ar8 Consumers uty tas sa 42 Consumption axes m701 n701 Grantee tax 100,98 : 108.498 : : (ther oat nes 520 ad : : Unrestricted ever from ute of money aed property 6235 e235 40or ago. 1.986 Payments rom the Count of Ruse, Virginia 10.257199 svo2s7 Grane and contributions not restrict t specifi propane 2283930 2283990 228.40 Gain on ale of eaptal assets “08.50 : "8,650 1420 : Trarsers (90,26) 30206 : 7am Total general revenues ad rasers ws 30.2063 TTT Tass sa a Change et poston 34.3) $ 95.3697 $—at03a8a) Th ave.212 S865) $20. ‘Net poston (etc -bepoiog 16224286 oas 93327 998.739) 938131315309 560 Net poston (etc) ening TIGA SSS ISE_S (TOSS SBS 15.
“Te accompanying notes tothe fnancilstatements ar an nepal part ofthe statement.
Exhibit 3
Other Coal Governmental
General Road CARES ARPA Fund Total
ASSETS
Cash and cash equivalents 5,184,595$ -$ -$ 4,454,319$ 10,904$ 9,649,818$
Receivables (net of allowance for uncollectibles):
Taxes receivable 9,259,768 - - - - 9,259,768
Accounts receivable 1,448,072 73,825 - - - 1,521,897
Due from other funds 86,164 - - - - 86,164
Due from component unit 200,000 - - - - 200,000
Due from other governmental units 1,790,836 - - - - 1,790,836
Restricted assets:
Cash and cash equivalents 12,222,452 787,347 - - - 13,009,799
Investments 607 - - - - 607
Total assets 30,192,494$ 861,172$ -$ 4,454,319$ 10,904$ 35,518,889$
LIABILITIES
Accounts payable 524,156$ 24,749$ -$ -$ -$ 548,905$
Construction payables 957,582 - - - - 957,582
Reconciled overdraft - - 12,673 12,673
Unearned revenue 35,000 - - 4,454,319 - 4,489,319
Due to other funds 764 - 86,164 - - 86,928
Due to component unit 309,583 - - 309,583
Total liabilities 1,827,085$ 24,749$ 98,837$ 4,454,319$ -$ 6,404,990$
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 8,768,492$ -$ -$ -$ -$ 8,768,492$
Unavailable revenue - opioid settlement 1,202,323 - - - - 1,202,323
Total deferred inflows of resources 9,970,815$ -$ -$ -$ -$ 9,970,815$
FUND BALANCES Restricted:
Coal Road -$ 836,423$ -$ -$ -$ 836,423$
Courthouse construction 11,070,937 - - 11,070,937
Asset forfeiture funds 193,933 - - - - 193,933
Energy Lease Project 607 - - - - 607
Opioid Settlement 43,266 - - - - 43,266
Assigned:
Sheriff Funds 42,023 - - - - 42,023
Library Donations 53,141 - - - - 53,141
Road Improvements 87,287 - - - - 87,287
Law Library 61,150 - - - - 61,150
Commonwealth Attorney 500 - - - - 500
Housing 12,124 - - - - 12,124
Health and Fitness 8,247 - - - - 8,247
Other purposes 13,312 - - - - 13,312
Unassigned 6,808,067 - (98,837) - 10,904 6,720,134
Total fund balances 18,394,594$ 836,423$ (98,837)$ -$ 10,904$ 19,143,084$
Total liabilities, deferred inflows of resources, and fund balances 30,192,494$ 861,172$ -$ 4,454,319$ 10,904$ 35,518,889$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Balance Sheet
Governmental Funds June 30, 2022
-9-
county of Ruse, Virginia alance sheet Governmental Funds coat Governmental Seoerat oad canes anes und Teal (ash an cath eguatents Ss s.se5 5 s Ss Ausisi9 5 10900 5 9.818 ects rt of llowance fr unalece “nue resale a8 768 o.a5.768 decunt reeble tao nes isan? ue tem athe fon tetet ‘64 Due fam cargonent ant 20,000, 20.000 Due fom ther govereental units 70835 10% ‘ash and exh equalots naman rw07 19,09,79 Investments a a “ol eat ¢—ars sans 5 ET econ payable Sse star s s $s saa505 Ceneracton pater oars on7582 Reconled reef, nen Due to campanent unit 309.583 ase “otal inoue 5A Ta DEFERRED INFLOWS OF RESOURCES ‘nasalable revenue - property taxes Sarena s s s s Sarena naval revenue opt settlement 4.202303 sama Tota deferens of sources 335055 z z z s 390515 FUND BALANCES Restricted oa ons s Ss seas s s Swans nergy Lease Peet. a ar Opi Setoment as ams sired ‘Sher Funds aga aga Libary Donations suet Bar oud npovements oan ara Gemmonwesth tory ‘a0 ‘00 owe na 14 ter purposes, 31 on “ota fan tances 5a 50900 esa ee Total abies sefered laws of sarc, an fad balances SS aS SETS 90S 5 TF
‘The accompanying nots tothe nancial statements are an neal pa of hs statement
Exhibit 4
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances per Exhibit 3 - Balance Sheet - Governmental Funds 19,143,084$
Land 701,353$
Buildings and improvements 14,242,922
Machinery and equipment 1,728,548
Construction in progress 5,164,406 21,837,229
Unavailable revenue - property taxes 3,221,507$
Unavailable revenue - opioid settlement 1,202,323 4,423,830
Deferred outflows of resources are not available to pay for current-period expenditures and, therefore, are not reported in the funds.
Pension related items 2,023,335$
OPEB related items 1,273,993 3,297,328
6,321,949
Bonds and literary loans (22,148,079)$
Lease liabilities (3,204,641)
Finance purchases (4,738,456)
Unamortized premium (115,275)
Accrued interest payable (127,934)
Landfill accrued closure and postclosure liability (315,976)
Net OPEB liabilities (3,179,970)
Compensated absences (547,064)
Net pension liability (3,751,136) (38,128,531)
Pension related items (3,747,890)$
OPEB related items (930,826) (4,678,716)
Net position of governmental activities 12,216,173$
The accompanying notes to the financial statements are an integral part of this statement.
Deferred inflows of resources are not due and payable in the current period and, therefore, are not reported in the funds.
Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.
County of Russell, Virginia Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position June 30, 2022
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.
-10-
Exhibit 4 County of Russel, Virginia Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2022
‘Amounts reported for governmental activities in the statement of net positon are different because: ‘Total fund balances per Exhibit 3 - Balance Sheet - Governmental Funds S 19,183,084
Capital asets used in governmental activities are not financial resources and, therefore, are not reported in the
funds. Land s 701,353 Buildings and improvements 14,242,922 Machinery and equipment 1,728,548 Construction in progress 5,164,406 21,837,229
‘ther long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in
the funds. Unavailable revenue - property taxes S 3,221,507 Unavailable revenue - opioid settlement 4,202,323 4,423,830
Deferred outflows of resources are not avalable to pay for current-periad expenditures ‘and, therefore, are not reported in the funds.
Pension related items S 2,023,335
OPEB related items 4,273,993 3,297,328
Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. ‘The assets and liabilities of the internal service funds are included in ‘governmental activities in the statement of net position 6,321,949
Long-term labilities, Including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.
Bonds and titerary loans S (22,148,079)
Lease liabilities (8,204,641)
Finance purchases (4,738,456)
Unamortized premium (115,275)
Accrued interest payable (177,934)
Landfill accrued closure and postclosure liability (15,976)
Net OPEB liabilities 8,179,970)
Compensated absences (647,064)
Net pension lability (3,751,136) (38,128,531) Deferred inflows of resources are not due and payable in the current period and, therefore, are not reported in the funds.
Pension related items S$ @,747,890)
OPEB related items (930,826) (4,678,716) Net postion of governmental activities Sa
“The accompanying notes to the financial statements are an integral part of this statement.
-10-
Exhibit 5
Coal Other General Road CARES ARPA Government Fund Total
REVENUES
General property taxes 16,579,875$ -$ -$ -$ -$ 16,579,875$
Other local taxes 3,839,387 515,884 - - - 4,355,271
Permits, privilege fees, and regulatory licenses 43,484 - - - - 43,484
Fines and forfeitures 10,279 - - - - 10,279
Revenue from the use of money and property 105,765 4,598 3,396 - - 113,759
Charges for services 263,824 - - - - 263,824
Miscellaneous 255,310 - - - - 255,310
Recovered costs 1,206,570 - - - - 1,206,570
Intergovernmental:
Commonwealth 8,969,598 - - 709,700 - 9,679,298
Federal 3,465,402 - 17,698 - - 3,483,100
Total revenues 34,739,494$ 520,482$ 21,094$ 709,700$ -$ 35,990,770$
EXPENDITURES Current:
General government administration 2,288,123$ -$ -$ 311,695$ -$ 2,599,818$
Judicial administration 2,946,289 - - - - 2,946,289
Public safety 6,567,080 - - 286,089 - 6,853,169
Public works 2,921,766 225,158 - 62,579 - 3,209,503
Health and welfare 7,436,738 - 171,657 - - 7,608,395
Education 8,717,736 - - - - 8,717,736
Parks, recreation, and cultural 559,426 - - - - 559,426
Community development 913,658 - - - - 913,658
Nondepartmental 316,149 - - - - 316,149
Capital projects 4,286,977 - - - - 4,286,977
Debt service:
Principal retirement 1,860,240 - - - - 1,860,240
Interest and other fiscal charges 647,911 - - - - 647,911
Total expenditures 39,462,093$ 225,158$ 171,657$ 660,363$ -$ 40,519,271$
Excess (deficiency) of revenues over (under) expenditures (4,722,599)$ 295,324$ (150,563)$ 49,337$ -$ (4,528,501)$
OTHER FINANCING SOURCES (USES)
Transfers out (92,595)$ -$ -$ (51,726)$ -$ (144,321)$
Transfers in - - 51,726 2,389 - 54,115
Issuance of general obligation bonds 16,015,000 - - - - 16,015,000
Proceeds from lease purchases 76,829 - - - - 76,829
Sale of capital assets 408,650 - - - - 408,650
Total other financing sources (uses) 16,407,884$ -$ 51,726$ (49,337)$ -$ 16,410,273$
Net change in fund balances 11,685,285$ 295,324$ (98,837)$ -$ -$ 11,881,772$
Fund balances - beginning 6,709,309 541,099 - - 10,904 7,261,312
Fund balances - ending 18,394,594$ 836,423$ (98,837)$ -$ 10,904$ 19,143,084$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds For the Year Ended June 30, 2022
-11-
Russell County Highlight
Russell County Highlight
County of uss ‘Statement of Revenves, Expenditures, and Changes in Fund Balances
‘Governmental Funds For the Year Ended June 30,2022
exhie 5
REVENUES General property taxes Other orl taxes
Permits, priiege fees, and regulatory censes
Fines and frtettres
Revenue from the we of maney and property
Charges for services ieelaneous Recovered costs Intergovernmerta: Commonweath Total revenues
EXPENDITURES Current Genera government administration ‘deta dmiitration Pub safety Pac works Heath and wetore Eaucation Parks, recreation, and cltrat Community development Nondepartmenta capital projects Debe sence Principal retirement Interest and other flaca charges Total expenditures
Excess (eficincy of revenues over (under expences
(OTHER FINANCING SOURCES (USES) Issuance of general obligation bonds Procees frm lease purchases Sale of capital assets
Tota the financing sources (ses)
Net change in und balances Fund balances: bepinning rund balances ending
coat ones S$ ws7875 § os s s 16579875, 3,839,387 s5e84 4355271 ae 284
0279 : 10279 263,824 163,824 255,310 255,310 1,206,570 1.206.570 8,969,598 109,700 9.679.298 379.498 SOT Ti THT 35 390.770 $2288.23 § s <5 aes § 2599.88 567,060, 236,089 6,353,169 2921,766 225,158 sr 3,209,503 736738 114687 7.608.395, anne anne ‘99.26 ‘99.46 316,18 316,189 428697 428637 1,860,240 1,860,240 enrait : enrnit
3 Hao $a ss STS ea ws Sumas $s $050) $7 Ss (4.528.500) Ss (2,595) § s Ss gis) (144320) sins 2.369 Sans
16,015,000 16,015,000 76,829 763829 408,650 408,50 CRANE Ses se Tea 11985265 § 295,324 5 (8.T) S s 1ae1,772 6,709,309 541,099 10904 7.261,312
‘Te accompanying notes to the financial statements are an integral part ofthis statement.
tt
Exhibit 6
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 11,881,772$
Capital outlay 4,901,661$
Reversion of assets back to the School Board (net) (1,083,832)
Depreciation/amortization expense (1,939,950) 1,877,879
The net effect of various miscellaneous transactions involving capital assets (I.e., sales, trade-ins, and donations) is to increase (decrease) net assets. (133,348)
Property taxes (4,323,613)$
Opioid stellement funds 1,202,323 (3,121,290)
Issuance of long-term obligations:
Revenue bonds (16,015,000)$
Lease liabilities (76,829)
Principal Payments:
Bonds, literary loans, and notes 822,964
Lease liabilities 672,495
Finance purchases 364,781
Decrease (increase) in estimated liability: Landfill closure and postclosure liability (13,896) (14,245,485)
(Increase) decrease in compensated absences 25,046$
(Increase) decrease in accrued interest payable 11,378
Change in OPEB related items (162,579)
Amortization of bond premiums 16,804
Change in pension related items (159,183) (268,534)
893
Change in net position of governmental activities (4,008,113)$
The accompanying notes to the financial statements are an integral part of this statement.
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
The issuance of long-term obligations (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term obligations consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when obligations is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term obligations and related items.
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore are not reported as expenditures in governmental funds.
Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities.
For the Year Ended June 30, 2022
County of Russell, Virginia Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization in the current period.
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County of Russell, Virginia Reconeillation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities For the Year Ended June 30, 2022
Exhibit 6
‘Amounts reported for governmental activities inthe statement of activities are different because: Net change in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets
is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by ‘which capital outlays exceeded depreciation /amortization inthe current period.
Capital outlay 54,901,661 Reversion of assets back to the School Board (net) 1,083,832) Depreciation/amortization expense 11,939,950)
‘The net effect of various miscellaneous transactions involving capital assets (Le, sles, trade-ins, and donations) isto increase (decrease) net assets
Revenues in the statement of activities that do not provide curent financial resources are not reported as revenues in the funds. Property taxes S$ (4,323,613) Opioid stellement funds 4,202,323,
‘The issuance of long-term obligations (e.g. bonds, leases) provides current Financial resources to governmental funds, while the repayment of the principal of long-term obligations consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, liscounts, and similar items when obligations is fist issued, whereas these amounts are deferred and amortized in the statement of activities, This amount is the net effect of these differences in the treatment af long-term obligations and related items.
Issuance of long-term obligations:
Revenue bonds 5 (16,015,000) Lease liabilities (76,829) Principal Payments: Bonds, literary loans, and notes 822,964 Lease liabilities 672,495 Finance purchases 364,781
Decrease (increase) in estimated tabi
Landfill closure and postelosue liability 113,896)
Some expenses reported in the statement of activities do not requite the use of current financial resources and, therefore are not reported as expenditures in governmental funds.
(increase) decrease in compensated absences s 25,046 increase) decrease in accrued interest payable 1378 Change in OPEB related items (162,579) [Amortization of bond premiums 16,804
‘Change in pension related items Intemal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue (expense) of certain internal service funds is reported with
‘Sovernmental activities.
‘Change in net position of governmental activities
‘The accompanying notes tothe financial statements are an integral part of this statement.
A2-
t1a8172
1,877,879
(133,248)
(3,121,290)
(14,245,485)
(268,534)
2
Exhibit 7
Enterprise Internal Fund Service Fund Dante Self Fund Health Insurance
ASSETS Current assets:
Cash and cash equivalents 4,131$ 6,526,706$
Interest receivable 96 -
Accounts receivable, net of allowance for uncollectibles 11,642 628,785
Due from other funds 764 -
Total current assets 16,633$ 7,155,491$
Noncurrent assets: Restricted assets:
Cash and cash equivalents (in custody of others) 49,575$ -$
Capital assets:
Utility plant in service 5,240,699$ -$
Machinery and equipment 8,148 -
Less accumulated depreciation (3,173,391) -
Total capital assets 2,075,456$ -$
Total noncurrent assets 2,125,031$ -$
Total assets 2,141,664$ 7,155,491$
DEFERRED OUTFLOWS OF RESOURCES Pension related items 18$ -$
LIABILITIES Current liabilities:
Accounts payable 16,415$ 833,542$
Accrued interest payable 1,245 -
Revenue bonds - current portion 27,416 -
Total current liabilities 45,076$ 833,542$
Noncurrent liabilities: Revenue bonds - net of current portion 477,444$ -$
Total noncurrent liabilities 477,444$ -$
Total liabilities 522,520$ 833,542$
DEFERRED INFLOWS OF RESOURCES Pension related items 5,583$ -$
NET POSITION
Net investment in capital assets 1,570,596$ -$
Restricted for debt service and bond covenants 49,575 -
Unrestricted (6,592) 6,321,949
Total net position 1,613,579$ 6,321,949$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Net Position
Proprietary Funds June 30, 2022
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County of Russell, Virginia Statement of Net Position
Proprietary Funds June 30, 2022
Exhibit 7
ASSETS. Current assets: Cash and cash equivalents Interest receivable Accounts receivable, net of allowance for uncollectibles Due from other funds Total current assets
Noncurrent assets:
Restricted assets:
Cash and cash equivalents (in custody of others) Capital assets:
Utility plant in service
Machinery and equipment
Less accumulated depreciation
Total capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES. Pension related items
LIABILITIES Current liabilities: Accounts payable ‘Accrued interest payable Revenue bonds - current portion Total current liabilities
Noncurrent liabilities:
Revenue bonds - net of current portion Total noncurrent liabilities Total liabilities
DEFERRED INFLOWS OF RESOURCES Pension related items
NET POSITION Net investment in capital assets Restricted for debt service and bond covenants Unrestricted
Total net position
Enterprise Fund
Internal Service Fund
Dante Fund
4131
11,642 764
Self Health Insurance
6,526,706
628,785
16,633
7,155,497
49,575
5,240,699 8,148 (3,173,391)
2,075,456
2,125,031
2,141,664
7,155,497
18
16,415 1,245 27,416
833,542
45,076
833,542
ATT AAA
477 444
522,520
833,542
5,583
1,570,596 49,575 (6,592)
6,321,949
7,613,579
6,321,949
‘The accompanying notes to the financial statements are an integral part of this statement.
Exhibit 8
Enterprise Internal Fund Service Fund Dante Self Fund Health Insurance
OPERATING REVENUES Charges for services:
Sewer revenues 114,414$ -$
Insurance premiums - 7,969,098
Total operating revenues 114,414$ 7,969,098$
OPERATING EXPENSES
Pension expense (11,520)$ -$
Professional services 28,294 -$
Utilities 1,503 -
Materials and supplies 91,068 -
Office expenses 12,463 -
Repairs and maintenance 0 -
Insurance claims and expenses - 7,970,681
Depreciation 133,281 -
Total operating expenses 255,089$ 7,970,681$
Operating income (loss) (140,675)$ (1,583)$
NONOPERATING REVENUES (EXPENSES)
Investment income -$ 2,476$
Contribution to Castlewood PSA (21,600) -
Interest expense (23,300) -
Total nonoperating revenues (expenses) (44,900)$ 2,476$
Income (loss) before transfers (185,575)$ 893$
Transfers in 90,206$ -$
Change in net position (95,369)$ 893$
Total net position - beginning 1,708,948 6,321,056 Total net position - ending 1,613,579$ 6,321,949$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds For the Year Ended June 30, 2022
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County of Russell, Virginia ‘Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2022
Exhibit 8
OPERATING REVENUES Charges for services: Sewer revenues Insurance premiums Total operating revenues
OPERATING EXPENSES Pension expense Professional services Utilities Materials and supplies Office expenses Repairs and maintenance Insurance claims and expenses Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES) Investment income Contribution to Castlewood PSA Interest expense Total nonoperating revenues (expenses) Income (loss) before transfers
Transfers in Change in net position
Total net position - beginning Total net position - ending
Enterprise internal Fund Service Fund Dante Self Fund Health Insurance $ 114,414 § : : 7,969,098 $ 114,414 7,969,098 $ (11,520) $ - 28,294 $ : 1,503 : 91,068 - 12,463 - 0 : : 7,970,681 133,281 : $ 255,089 $ 7,970,681 $ (140,675) $ (1,583) $ 7 $ 2,476 (21,600) - (23,300) - 3 (44,900) 5 Ae $ (185,575) $ 893 $ 90,206 $ - $ (95,369) $ 893 1,708,948 6,321,056 7,613,579 5 6,321,949
The accompanying notes to the financial statements are an integral part of this statement.
Exhibit 9
Enterprise Internal Fund Service Fund Dante Self Fund Health Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 118,382$ -$
Receipts for insurance premiums - 8,108,885
Payments to suppliers (137,418) -
Payments to employees 2 -
Payments for premiums - (7,685,779)
Net cash provided by (used for) operating activities (19,034)$ 423,106$
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 90,206$ -$
Net cash provided by (used) for noncapital financing activities 90,206$ -$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Principal payments on bonds (26,208)$ -$
Contribution to Castlewood PSA (21,600) -
Interest payments (23,364) -
Net cash provided by (used for) capital and related financing activities (71,172)$ -$
CASH FLOWS FROM INVESTING ACTIVITIES Interest income -$ 2,476$
Net increase (decrease) in cash and cash equivalents -$ 425,582$
Cash and cash equivalents - beginning (including restricted of $49,575) 53,706 6,101,124
Cash and cash equivalents - ending (including restricted of $49,575) 53,706$ 6,526,706$
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss) (140,675)$ (1,583)$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation 133,281$ -$
(Increase) decrease in accounts receivable (992) 139,787
(Increase) decrease in deferred outflows of resources 809 -
(Increase) decrease in due from other funds 4,960 -
Increase (decrease) in accounts payable (4,090) 284,902
Increase (decrease) in deferred inflows of resources (12,327) -
Total adjustments 121,641$ 424,689$
Net cash provided by (used for) operating activities (19,034)$ 423,106$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Cash Flows
Proprietary Funds For the Year Ended June 30, 2022
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Exhibit 9 County of Russell, Virginia ‘Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2022
Enterprise Taternal Fund Service Fund Dante Self Fund Health Insurance CASH FLOWS FROM OPERATING ACTIVITIES. Receipts from customers and users s 118,382 $ Receipts for insurance premiums : 8,108,885, Payments to suppliers (137,418) : Payments to employees 2 (7,685,779)
Payments for premiums
Net cash provided by (used for) operating activities Ba) 423,106
‘CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds $ 90,206 _§ Net cash provided by (used) for noncapital financing activities 8 90,206 § ‘CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES. Principat payments on bonds 8 (26,208) $ Contribution to Castlewood PSA (21,600) Interest payments (23,364) Net cash provided by (used for) capital and related financing activities $ (71,172) $
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 76 Net increase (decrease) in cash and cash equivalents s “$ 425,582 Cash and cash equivalents - beginning (including restricted of $49,575) 53,706 6,101,124
Cash and cash equivalents - ending (including restricted of $49,575) 3 6,526,708
Reconciliation of operating income (oss) to net cash provided by (used for) operating activities: Operating income (loss) $ (140,675) § (1,583) ‘Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation $ 133,281 §
(increase) decrease in accounts receivable (992) 139,787
(increase) decrease in deferred outflows of resources 809
(lncrease) decrease in due from other funds 4,960
Increase (decrease) in accounts payable (4,090) 284,902
Increase (decrease) in deferred inflows of resources (12,327)
Total adjustments 5 121,641 _§ EAS Net cash provided by (used for) operating activities 5 C04 § #23, 106
The accompanying notes to the financial statements are an integral part of this statement.
A5-
FIDUCIARY FUNDS
Special Welfare – The Special Welfare fund accounts for those funds belonging to individuals entrusted to the local social services agency, such as foster care children.
VASAP – The VASAP fund accounts for those funds belonging to the Southwest Virginia Alcohol Safety Action Program. The County is the fiscal agent for this program.
FIDUCIARY FUNDS
Special Welfare - The Special Welfare fund accounts for those funds belonging to individuals entrusted to the local social services agency, such as foster care children.
VASAP - The VASAP fund accounts for those funds belonging to the Southwest Virginia Alcohol Safety Action Program. The County is the fiscal agent for this program.
Exhibit 10
Special Welfare VASAP
ASSETS
Cash and cash equivalents 58,585$ 13,613$
Due from other governments - 20,389
Total assets 58,585$ 34,002$
LIABILITIES Accounts payable -$ 7,097$
Total liabilities -$ 7,097$
NET POSITION Restricted for:
Held for social services client 58,585$ -$
Held for VASAP - 26,905
Total net position 58,585$ 26,905$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Fiduciary Net Position
Fiduciary Funds June 30, 2022
Custodial Funds
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Exhibit 10 County of Russell, Virginia Statement of Fiduciary Net Position Fiduciary Funds June 30, 2022
ASSETS
Cash and cash equivalents
Due from other governments Total assets
LIABILITIES ‘Accounts payable Total liabilities
NET POSITION Restricted for: Held for social services client Held for VASAP Total net position
Custodial Funds
ial Welfare VASAP
s 58,585 § 13,613,
: 20,389
i
s $ 7,097 er $ 58,585 $ -
26,905, So ee
‘The accompanying notes to the financial statements are an integral part of this statement.
16-
Exhibit 11
Special Welfare VASAP
ADDITIONS
Special welfare collections 31,024$ -$
Interest earned 448 -
Intergovernmental - 205,396
Total additions 31,472$ 205,396$
DEDUCTIONS
Special welfare payments 37,998$ -$
Salaries and fringes - 152,950
Contractual services - 2,016
Professional services - 17,968
Utilities - 6,796
Insurance - 1,674
Office rent - 12,000
Office supplies - 2,125
Miscellaneous - 5,265
Travel - 3,395
Total deductions 37,998$ 204,189$
Net increase (decrease) in fiduciary net position (6,526)$ 1,207$
Net position - beginning 65,111$ 25,698$
Net position - ending 58,585$ 26,905$
The accompanying notes to the financial statements are an integral part of this statement.
County of Russell, Virginia Statement of Changes in Fiduciary Net Position
Fiduciary Funds June 30, 2022
Custodial Funds
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Exhibit 11 County of Russell, Virginia Statement of Changes in Fiduciary Net Position Fiduciary Funds June 30, 2022
Custodial Funds
VASAP
ADDITIONS. Special welfare collections s 31,024 § Interest earned 448 : Intergovernmental - 205,396
Total additions 5 DEDUCTIONS Special welfare payments 5 37,998 § : Salaries and fringes : 152,950 Contractual services - 2,016 Professional services : 17,968 Utilities : 6,796 Insurance - 1,674 Office rent : 12,000 Office supplies : 2,125, ‘Miscellaneous - 5,265 Travel : 3,395,
Total deductions 704,189
Net increase (decrease) in fiduciary net position s (6,526) § 1,207 Net position - beginning s 65,111_§ 25,698 Net position - ending 38,585 SS —~« 9S
‘The accompanying notes to the financial statements are an integral part of this statement.
AT
COUNTY OF RUSSELL, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies:
The financial statements of the County conform to generally accepted accounting principles (GAAP) applicable to governmental units promulgated by the Governmental Accounting Standards Board (GASB). The following is a summary of the more significant policies:
A. Financial Reporting Entity
The County of Russell, Virginia is a municipal corporation governed by an elected six-member Board of Supervisors. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements (see note below for description) to emphasize that it is legally separate from the government.
Blended component units - None
Discretely Presented Component Units - The component unit columns in the financial statements include the financial data of the County’s discretely presented component units. They are reported in a separate column to emphasize that they are legally separate from the County.
The Russell County School Board operates the elementary and secondary public schools in the County. School Board members are popularly elected. The School Board is fiscally dependent upon the County because the County approves all debt issuances of the School Board and provides significant funding to operate the public schools since the School Board does not have separate taxing powers. The School Board is presented as a governmental fund type. The School Board does not issue separate financial statements.
The Industrial Development Authority of Russell County, Virginia (IDA) encourages and provides financing for industrial development in Russell County. The financial statements of the IDA have been included because the County appoints the governing body and has made moral obligation resolutions to finance deficits of any kind or nature that may occur each year subject to annual appropriation. Complete financial statements of the IDA can be obtained in writing at 137 Highland Drive, Lebanon, VA 24266.
The Russell County Public Service Authority (PSA) provides water and sewer service to residents of Russell County. The Authority is fiscally dependent on the County because the County appoints the governing body and has financing guarantees involving the Authority. Complete financial statements of the PSA can be obtained in writing at 137 Highland Drive, Lebanon, Virginia 24266.
Related Organizations - The County’s officials are also responsible for appointing the members of the boards of other organizations, but the County’s accountability for these organizations does not extend beyond making the appointment.
Jointly Governed Organizations - The County, in conjunction with other local jurisdictions, participates in supporting the Southwest Virginia Regional Jail and the Cumberland Mountain Community Services Board. The governing bodies of these organizations are appointed by the respective governing bodies of the participating jurisdictions. During the year, the County contributed $2,324,384 to the Regional Jail and $39,996 to the Community Services Board. The County does not have any ongoing financial responsibility for these Organizations.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies:
The financial statements of the County conform to generally accepted accounting principles (GAAP) applicable to governmental units promulgated by the Governmental Accounting Standards Board (GASB). The following is a summary of the more significant policies:
A
Financial Reporting Entity
The County of Russell, Virginia is a municipal corporation governed by an elected six-member Board of Supervisors. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Each discretely presented ‘component unit is reported in a separate column in the government-wide financial statements (see note below for description) to emphasize that it is legally separate from the government.
Blended component units - None
Discretely Presented Component Units - The component unit columns in the financial statements include the financial data of the County’s discretely presented component units. They are reported in a separate column to emphasize that they are legally separate from the County.
The Russell County School Board operates the elementary and secondary public schools in the County. School Board members are popularly elected. The School Board is fiscally dependent upon the County because the County approves all debt issuances of the School Board and provides significant funding to operate the public schools since the School Board does not have separate taxing powers. The School Board is presented as a governmental fund type. The School Board does not issue separate financial statements.
The Industrial Development Authority of Russell County, Virginia (IDA) encourages and provides financing for industrial development in Russell County. The financial statements of the IDA have been included because the County appoints the governing body and has made moral obligation resolutions to finance deficits of any kind or nature that may occur each year subject to annual appropriation. Complete financial statements of the IDA can be obtained in writing at 137 Highland Drive, Lebanon, VA 24266.
The Russell County Public Service Authority (PSA) provides water and sewer service to residents of Russell County. The Authority is fiscally dependent on the County because the County appoints the governing body and has financing guarantees involving the Authority. Complete financial statements of the PSA can be obtained in writing at 137 Highland Drive, Lebanon, Virginia 24266.
Related Organizations - The County’s officials are also responsible for appointing the members of the boards of other organizations, but the County’s accountability for these organizations does not extend beyond making the appointment.
Jointly Governed Organizations - The County, in conjunction with other local jurisdictions, participates in supporting the Southwest Virginia Regional Jail and the Cumberland Mountain Community Services Board. The governing bodies of these organizations are appointed by the respective governing bodies of the participating jurisdictions. During the year, the County contributed $2,324,384 to the Regional Jail and $39,996 to the Community Services Board. The County does not have any ongoing financial responsibility for these Organizations.
18
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
B. Government-wide and Fund Financial Statements
Government-wide financial statements - The reporting model includes financial statements prepared using full accrual accounting for all of the government’s activities. This approach includes not just current assets and liabilities but also capital assets and long-term liabilities (such as buildings and general obligation debt).
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and its component units.
For the most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the
primary government is reported separately from certain legally separate component units for which the
primary government is financially accountable.
Statement of Net Position – The government-wide Statement of Net Position is designed to display the financial position of the primary government (governmental and business-type activities) and its component units. Governments report all capital assets, including infrastructure, in the government-wide statement of net position and report depreciation expense - the cost of “using up” capital assets – in the statement of activities. The net position of a government will be broken down into three categories: 1) net investment in capital assets; 2) restricted; and 3) unrestricted.
Statement of Activities - The government-wide Statement of Activities reports expenses and revenues in a format that focuses on the cost of each of the government’s functions. The expense of individual functions is compared to the revenues generated directly by the function (for instance, through user charges or intergovernmental grants).
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds, if any, are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
B. Government-wide and Fund Financial Statements
Government-wide financial statements - The reporting model includes financial statements prepared using full accrual accounting for all of the government’s activities. This approach includes not just current assets and liabilities but also capital assets and long-term liabilities (such as buildings and general obligation debt).
‘The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
Statement of Net Position - The government-wide Statement of Net Position is designed to display the financial position of the primary government (governmental and business-type activities) and its component. units. Governments report all capital assets, including infrastructure, in the government-wide statement of net position and report depreciation expense - the cost of “using up” capital assets - in the statement of activities. The net position of a government will be broken down into three categories: 1) net investment in capital assets; 2) restricted; and 3) unrestricted.
‘Statement of Activities - The government-wide Statement of Activities reports expenses and revenues in a format that focuses on the cost of each of the government’s functions. The expense of individual functions is compared to the revenues generated directly by the function (for instance, through user charges or intergovernmental grants).
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds, if any, are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
‘The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
19
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The government-wide Statement of Activities reflects both the gross and net cost per functional category (public safety, public works, health and welfare, etc.) which are otherwise being supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.) The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants, and contributions. The program revenues must be directly associated with the function (public safety, public works, health and welfare, etc.) or a business-type activity.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized when they have been earned and they
are both measurable and available. Revenues are considered to be available when they are collectible within
the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service principal and interest expenditures on general long-term debt, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.
Accordingly, real and personal property taxes are recorded as revenues and receivables when billed, net of
allowances for uncollectible amounts. Property taxes not collected within 60 days after year-end are reflected
as unavailable revenues.
Sales and utility taxes, which are collected by the state or utilities and subsequently remitted to the County, are recognized as revenues and receivables upon collection by the state or utility, which is generally in the month preceding receipt by the County.
Licenses, permits, fines and rents are recorded as revenues when received. Intergovernmental revenues, consisting primarily of federal, state and other grants for the purpose of funding specific expenditures, are recognized when earned or at the time of the specific expenditure. Revenues from general-purpose grants are recognized in the period to which the grant applies. All other revenue items are considered to be measurable and available only when the government receives cash.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for and reports all financial resources of the general government, except those required to be accounted for in other funds. The General Fund includes the activities of the Social Services, Dog Tag, Damage Stamp, Law Library, Knox Creek, Cannery, Health and Fitness, Housing, CSA, Litter, Valley Heights Subdivision, and Road Improvements funds. The aforementioned Funds have been merged with the General Fund for financial reporting purposes.
The government reports the following major special revenue funds:
The Coal Road Fund accounts for and reports financial resources to be used for improvements to roads used in conjunction with coal mining and other expenses allowable by the Code of Virginia, (1950), as amended.
The CARES Fund accounts for and reports financial resources that are restricted, committed, or assigned to expenditures for Coronavirus Relief Funds.
The ARPA Fund accounts for and reports financial resources that are restricted, committed, or assigned to expenditures for American Rescue Plan Act Funds.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
c
‘Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The government-wide Statement of Activities reflects both the gross and net cost per functional category (public safety, public works, health and welfare, etc.) which are otherwise being supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.) The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants, and contributions. The program revenues must be directly associated with the function (public safety, public works, health and welfare, etc.) or a business-type activity.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned and they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service principal and interest expenditures on general long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. ‘Accordingly, real and personal property taxes are recorded as revenues and receivables when billed, net of allowances for uncollectible amounts. Property taxes not collected within 60 days after year-end are reflected as unavailable revenues.
Sales and utility taxes, which are collected by the state or utilities and subsequently remitted to the County, are recognized as revenues and receivables upon collection by the state or utility, which is generally in the month preceding receipt by the County.
Licenses, permits, fines and rents are recorded as revenues when received. Intergovernmental revenues, consisting primarily of federal, state and other grants for the purpose of funding specific expenditures, are recognized when earned or at the time of the specific expenditure. Revenues from general-purpose grants are recognized in the period to which the grant applies. All other revenue items are considered to be measurable and available only when the government receives cash.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for and reports all financial resources of the general government, except those required to be accounted for in other funds. The General Fund includes the activities of the Social Services, Dog Tag, Damage Stamp, Law Library, Knox Creek, Cannery, Health and Fitness, Housing, CSA, Litter, Valley Heights Subdivision, and Road Improvements funds. The aforementioned Funds have been merged with the General Fund for financial reporting purposes.
The government reports the following major special revenue funds:
The Coal Road Fund accounts for and reports financial resources to be used for improvements to roads used in conjunction with coal mining and other expenses allowable by the Code of Virginia, (1950), as amended.
The CARES Fund accounts for and reports financial resources that are restricted, committed, or assigned to expenditures for Coronavirus Relief Funds.
The ARPA Fund accounts for and reports financial resources that are restricted, committed, or assigned to ‘expenditures for American Rescue Plan Act Funds.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The government reports the following major proprietary fund:
The County operates a water treatment system. The activities of the system are accounted for in the Dante fund.
Additionally, the government reports the following fund types:
The Workforce Investment Fund accounts for and reports financial resources to be used for workforce development benefiting the County. The Workforce Investment Fund is accounted for as a Nonmajor Special Revenue Fund.
Internal Service Funds account for the financing of goods and services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The Internal Service Fund consists of the Self Health Insurance Fund.
Fiduciary Funds (Trust and Custodial Funds) account for assets held by the government in a trustee capacity or
as agent or custodian for individuals, private organizations, other governmental units, or other funds.
Custodial funds include the Special Welfare Fund and VASAP Fund. The Special Welfare Fund includes activity
of the Title XX and the SSI Fund, which have all been merged for financial reporting purposes.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are other charges between the government’s functions.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County’s Internal Service Funds are charges to departments for health insurance. Operating expenses for Internal Service Funds include the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
- Cash and Cash Equivalents
The government’s cash and cash equivalents are considered to be cash on hand, amounts in demand deposits, as well as short-term investments with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, the government’s proprietary funds consider their demand deposits and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
c
‘Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The government reports the following major proprietary fund:
‘The County operates a water treatment system. The activities of the system are accounted for in the Dante fund.
Additionally, the government reports the following fund types:
The Workforce Investment Fund accounts for and reports financial resources to be used for workforce development benefiting the County. The Workforce Investment Fund is accounted for as a Nonmajor Special Revenue Fund.
Internal Service Funds account for the financing of goods and services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The Internal Service Fund consists of the Self Health Insurance Fund.
Fiduciary Funds (Trust and Custodial Funds) account for assets held by the government in a trustee capacity or ‘as agent or custodian for individuals, private organizations, other governmental units, or other funds. Custodial funds include the Special Welfare Fund and VASAP Fund. The Special Welfare Fund includes activity of the Title XX and the SS! Fund, which have all been merged for financial reporting purposes.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are other charges between the government’s functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
‘Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County’s Internal Service Funds are charges to departments for health insurance. Operating expenses for Internal Service Funds include the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance:
- Cash and Cash Equivalents
The government’s cash and cash equivalents are considered to be cash on hand, amounts in demand deposits, as well as short-term investments with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, the government’s proprietary funds consider their demand deposits and all highly liquid investments with an original maturity of three months or less, when purchased to be cash equivalents.
2
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Investments
Investments with a maturity of less than one year when purchased, non-negotiable certificates of deposit, other nonparticipating investments, and external investment pools are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is the price that would be received to sell an investment in an orderly transaction at year end.
- Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e. the current portion of interfund loans). All other outstanding balances between funds are reported as “advances to/from other funds” (i.e. the noncurrent portion of interfund loans).
Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance nonspendable account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
- Property Taxes
Property is assessed at its value on January 1. Property taxes attach as an enforceable lien on property as of January 1. Real estate taxes are payable in installments on June 5th and December 5th. Personal property taxes are due and collectible on December 5th. The County bills and collects its own property taxes.
- Allowance for Uncollectible Accounts
The County calculates its allowance for uncollectible accounts using historical collection data and, in certain cases, specific account analysis. The allowance amounted to approximately $5,879,786 at June 30, 2022. The allowance consists of delinquent property taxes in the amount of $5,869,828 and tipping fees of $9,958.
- Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
-22-
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/ inflows of resources, liabilities, and net position/fund balance: (Continued)
4,
Investments
Investments with a maturity of less than one year when purchased, non-negotiable certificates of deposit, other nonparticipating investments, and external investment pools are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is the price that would be received to sell an investment in an orderly transaction at year end.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e. the current portion of interfund loans). All other outstanding balances between funds are reported as “advances to/from other funds” (i.e. the noncurrent portion of interfund loans).
Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance nonspendable account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
Property Taxes
Property is assessed at its value on January 1. Property taxes attach as an enforceable lien on property as of January 1. Real estate taxes are payable in installments on June 5"" and December 5". Personal property taxes are due and collectible on December 5". The County bills and collects its own property taxes.
‘Allowance for Uncollectible Accounts
The County calculates its allowance for uncollectible accounts using historical collection data and, in certain cases, specific account analysis. The allowance amounted to approximately $5,879,786 at June 30, 2022. The allowance consists of delinquent property taxes in the amount of $5,869,828 and tipping fees of $9,958.
Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
22-
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets (lease assets), the measurement of which is discussed in more detail below). Donated capital assets are recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.
Property, plant, equipment, and infrastructure of the primary government, as well as the Component Unit – School Board, are depreciated using the straight-line method over the following estimated useful lives:
Assets Years Land improvements 40 Buildings and improvements 40 Machinery and equipment 4-30 Utility plant in service 40 Right-to-use lease assets:
Buildings and improvements 40 Machinery and equipment 4-30
- Prepaid Items
Certain payments to vendors represent costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
- Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will include a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure/expense) until then. The County has one item that qualifies for reporting in this category. It is comprised of certain items related to pension and OPEB. For more detailed information on these items, reference the related notes.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/ inflows of resources, liabilities, and net position/fund balance: (Continued)
- Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets (lease assets), the measurement of which is discussed in more detail below). Donated capital assets are recorded at
acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend the asset’s life are not capitalized,
Property, plant, equipment, and infrastructure of the primary government, as well as the Component Unit - School Board, are depreciated using the straight-line method over the following estimated useful
lives Assets Years Land improvements 40 Buildings and improvements 40 Machinery and equipment 4330 Utility plant in service 40 Right-to-use lease assets: Buildings and improvements 40 Machinery and equipment 430
- Prepaid Items
Certain payments to vendors represent costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
- Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will include a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net assets that applies toa future period(s) and so will not be recognized as an outflow of resources (expenditure/expense) until then. The County has one item that qualifies for reporting in this category. It is comprised of certain items related to pension and OPEB. For more detailed information on these items, reference the related
notes.
23
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County has two types of items that qualify for reporting in this category. Under a modified accrual basis of accounting, unavailable revenue representing property taxes and opioid settlement receivable is reported in the governmental funds balance sheet. This amount is comprised of uncollected property taxes due prior to June 30th, 2nd half installments levied during the fiscal year but due after June 30th, and amounts prepaid on the 2nd half installments and is deferred and recognized as an inflow of resources in the period that the amount becomes available. Under the accrual basis, 2nd half installments levied during the fiscal year but due after June 30th and amounts prepaid on the 2nd half installments are reported as deferred inflows of resources. In addition, certain items related to pension, OPEB, opioid settlements, and leases are reported as deferred inflows of resources. For more detailed information on these items, reference the related notes.
9. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. No liability is recorded for non-vesting accumulating rights to receive sick pay benefits. The County accrues salary-related payments associated with the payment of compensated absences. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements.
- Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the County’s Retirement Plan and the additions to/deductions from the County’s Retirement Plan’s net fiduciary position have been determined on the same basis as they were reported by the Virginia Retirement System (VRS). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
11. Other Postemployment Benefits (OPEB)
For purposes of measuring the net VRS related OPEB liabilities, deferred outflows of resources and deferred inflows of resources related to the OPEB, and OPEB expense, information about the fiduciary net position of the VRS GLI, HIC, Teacher HIC, and LODA OPEB Plans and the additions to/deductions from the VRS OPEB Plans’ net fiduciary position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
In addition to the VRS related OPEB, the County and School Board allows their retirees to stay on the health insurance plan after retirement. The retiree is required to pay the blended premium cost creating and implicit subsidy OPEB liability. In addition, retirees receive a monthly stipend towards their health insurance cost until the retiree is Medicare eligible.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County has two types of items that qualify for reporting in this category. Under a modified accrual basis of accounting, unavailable revenue representing property taxes and opioid settlement receivable is reported the governmental funds balance sheet. This amount is comprised of uncollected property taxes due prior to June 30th, 2nd half installments levied during the fiscal year but due after June 30th, and amounts prepaid on the 2nd half installments and is deferred and recognized as an inflow of resources in the period that the amount becomes available. Under the accrual basis, 2nd half installments levied during the fiscal year but due after June 30th and amounts prepaid on the 2nd half installments are reported as deferred inflows of resources. In addition, certain items related to pension, OPEB, opioid settlements, and leases are reported as deferred inflows of resources. For more detailed information on these items, reference the related notes.
- Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. No liability is recorded for non-vesting accumulating rights to receive sick pay benefits. The County accrues salary-related payments associated with the payment of compensated absences. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements.
- Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the County’s Retirement Plan and the additions to/deductions from the County’s Retirement Plan’s net fiduciary position have been determined on the same basis as they were reported by the Virginia Retirement System (VRS). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
- Other Postemployment Benefits (OPEB)
For purposes of measuring the net VRS related OPEB liabilities, deferred outflows of resources and deferred inflows of resources related to the OPEB, and OPEB expense, information about the fiduciary net position of the VRS GLI, HIC, Teacher HIC, and LODA OPEB Plans and the additions to/deductions from the VRS OPEB Plans’ net fiduciary position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
In addition to the VRS related OPEB, the County and School Board allows their retirees to stay on the health insurance plan after retirement. The retiree is required to pay the blended premium cost creating and implicit subsidy OPEB liability. In addition, retirees receive a monthly stipend towards their health insurance cost until the retiree is Medicare eligible.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
- Leases
The County leases various assets requiring recognition. A lease is a contract that conveys control of the right to use another entity’s nonfinancial asset. Lease recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases.
Lessee
The County recognizes lease liabilities and intangible right-to-use lease assets (lease assets) in the
government-wide financial statements. At the commencement of the lease, the lease liability is
measured at the present value of payments expected to be made during the lease term (less any lease
incentives). The lease liability is reduced by the principal portion of payments made. The lease asset is
measured at the initial amount of the lease liability, plus any payments made to the lessor at or before
the commencement of the lease term and certain direct costs. The lease asset is amortized over the
shorter of the lease term or the useful life of the underlying asset.
Key Estimates and Judgments
Lease accounting includes estimates and judgments for determining the (1) rate used to discount
the expected lease payments to present value, (2) lease term, and (3) lease payments.
The County uses the interest rate stated in lease contracts. When the interest rate is not provided
or the implicit rate cannot be readily determined, the County uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease and certain periods covered by options to extend to reflect how long the lease is expected to be in effect, with terms and conditions varying by the type of underlying asset.
Fixed and certain variable payments as well as lease incentives and certain other payments are included in the measurement of the lease liability (lessee) or lease receivable (lessor).
The County monitors changes in circumstances that would require a remeasurement or modification of its leases. The County will remeasure the lease asset and liability (lessee) or the lease receivable and deferred inflows of resources (lessor) if certain changes occur that are expected to significantly affect the amount of the lease liability or lease receivable.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
- Leases
The County leases various assets requiring recognition. A lease is a contract that conveys control of the right to use another entity’s nonfinancial asset. Lease recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases.
Lessee
The County recognizes lease liabilities and intangible right-to-use lease assets (lease assets) in the government-wide financial statements. At the commencement of the lease, the lease liability is measured at the present value of payments expected to be made during the lease term (less any lease incentives). The lease liability is reduced by the principal portion of payments made. The lease asset is measured at the initial amount of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. The lease asset is amortized over the
shorter of the lease term or the useful life of the underlying asset.
Key Estimates and Judgments
Lease accounting includes estimates and judgments for determining the (1) rate used to discount
the expected lease payments to present value, (2) lease term, and (3) lease payments.
‘* The County uses the interest rate stated in lease contracts. When the interest rate is not provided or the implicit rate cannot be readily determined, the County uses its estimated incremental
borrowing rate as the discount rate for leases.
‘+ The lease term includes the noncancellable period of the lease and certain periods covered by options to extend to reflect how long the lease is expected to be in effect, with terms and
conditions varying by the type of underlying asset.
‘+ Fixed and certain variable payments as well as lease incentives and certain other payments are
included in the measurement of the lease liability (lessee) or lease receivable (lessor).
The County monitors changes in circumstances that would require a remeasurement or modification of its leases. The County will remeasure the lease asset and liability (lessee) or the lease receivable and deferred inflows of resources (lessor) if certain changes occur that are expected to significantly affect
the amount of the lease liability or lease receivable.
25
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
- Fund Balance
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable fund balance – amounts that are either not in spendable form (such as inventory and
prepaid expenditures) or are legally or contractually required to be maintained intact (corpus of a
permanent
fund);
Restricted fund balance – amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions may be changed or lifted only with the consent of the resource providers;
Committed fund balance – amounts that can be used only for the specific purposes determined by the adoption of an ordinance committing fund balance for a specified purpose by the Board of Supervisors prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Board adopts another ordinance to remove or revise the limitation;
Assigned fund balance – amounts a government intends to use for a specific purpose but do not meet the criteria to be classified as committed; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Unlike commitments, assignments general only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment;
Unassigned fund balance – amounts that are available for any purpose; positive amounts are only reported in the general fund. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned.
The Board of Supervisors is the highest level of decision-making authority and the formal action that is required to establish, modify or rescind a fund balance commitment is a resolution approved by the Board of Supervisors. The resolution must either be approved or rescinded as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.
The Board of Supervisors has authorized the County Administrator as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy.
The County of Russell will maintain an unassigned fund balance in the general fund equal to 16% of the expenditures/operating revenues (two months). The County considers a balance of less than 10% to be a cause for concern, barring unusual or deliberate circumstances.
The County considers restricted fund balance to be spent when an expenditure is incurred for purposes for which restricted and unassigned, assigned, or committed fund balances are available, unless prohibited by legal documents or contracts. When an expenditure is incurred for purposes for which committed, assigned or unassigned amounts are available, the County considers committed fund balance to be spent first, then assigned fund balance, and lastly unassigned fund balance.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
Fund Balance
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
= Nonspendable fund balance - amounts that are either not in spendable form (such as inventory and prepaid expenditures) or are legally or contractually required to be maintained intact (corpus of a permanent fund);
= Restricted fund balance - amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions may be changed or lifted only with the consent of the resource providers;
= Committed fund balance - amounts that can be used only for the specific purposes determined by the adoption of an ordinance committing fund balance for a specified purpose by the Board of Supervisors prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Board adopts another ordinance to remove or revise the limitation;
"Assigned fund balance - amounts a government intends to use for a specific purpose but do not meet the criteria to be classified as committed; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Unlike commitments, assignments general only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment;
= Unassigned fund balance - amounts that are available for any purpose; positive amounts are only reported in the general fund. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned.
The Board of Supervisors is the highest level of decision-making authority and the formal action that is required to establish, modify or rescind a fund balance commitment is a resolution approved by the Board of Supervisors. The resolution must either be approved or rescinded as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.
The Board of Supervisors has authorized the County Administrator as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy.
The County of Russell will maintain an unassigned fund balance in the general fund equal to 16% of the expenditures/operating revenues (two months). The County considers a balance of less than 10% tobe a cause for concern, barring unusual or deliberate circumstances.
The County considers restricted fund balance to be spent when an expenditure is incurred for purposes for which restricted and unassigned, assigned, or committed fund balances are available, unless prohibited by legal documents or contracts. When an expenditure is incurred for purposes for which committed, assigned or unassigned amounts are available, the County considers committed fund balance to be spent first, then assigned fund balance, and lastly unassigned fund balance.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
15. Net Position
For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation and
reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.
Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County’s policy to consider restricted - net position to have been depleted before unrestricted - net position is applied.
Note 2-Stewardship, Compliance, and Accountability:
A. Budgetary Information
The following procedures are used by the County in establishing the budgetary data reflected in the financial statements:
- Prior to March 30, the County Administrator submits to the Board of Supervisors a proposed operating and
capital budget for the fiscal year commencing the following July 1. The operating and capital budget includes proposed expenditures and the means of financing them. All Funds of the County have legally adopted budgets with the exception of the Industrial Development Authority Fund and Agency Funds.
-
Public hearings are conducted to obtain citizen comments.
-
Prior to June 30, the budget is legally enacted through passage of an Appropriations Resolution.
-
The Appropriations Resolution places legal restrictions on expenditures at the departmental level. Only
the Board of Supervisors can revise the appropriation for each department or category. The County Administrator is authorized to transfer budgeted amounts within general government departments; however, the School Board is authorized to transfer budgeted amounts within the school system’s categories.
-27-
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 1-Summary of Significant Accounting Policies: (Continued)
D. Assets, deferred outflows/inflows of resources, liabilities, and net position/fund balance: (Continued)
Net Position
For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.
= Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.
= Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.
= Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.
Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County’s policy to consider restricted - net position to have been depleted before unrestricted - net position is applied.
Note 2-Stewardship, Compliance, and Accountability:
‘A. Budgetary Information
The following procedures are used by the County in establishing the budgetary data reflected in the financial statements:
1
Prior to March 30, the County Administrator submits to the Board of Supervisors a proposed operating and capital budget for the fiscal year commencing the following July 1. The operating and capital budget includes proposed expenditures and the means of financing them. All Funds of the County have legally adopted budgets with the exception of the Industrial Development Authority Fund and Agency Funds.
Public hearings are conducted to obtain citizen comments.
Prior to June 30, the budget is legally enacted through passage of an Appropriations Resolution.
‘The Appropriations Resolution places legal restrictions on expenditures at the departmental level. Only the Board of Supervisors can revise the appropriation for each department or category. The County Administrator is authorized to transfer budgeted amounts within general government departments;
however, the School Board is authorized to transfer budgeted amounts within the school system’s categories.
27
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 2-Stewardship, Compliance, and Accountability: (Continued)
A. Budgetary Information (Continued)
- Formal budgetary integration is employed as a management control device during the year for the
General Fund and the Special Revenue Funds. The School Fund is integrated only at the level of legal adoption.
-
All budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
-
Appropriations lapse on June 30, for all County units.
-
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to commit that portion of the applicable appropriations, is not part of the County’s accounting system.
B. Excess of expenditures over appropriations
At June 30, 2022, there were no funds that had excess of expenditures over appropriations.
C. Deficit fund balance
At June 30, 2022, the CARES fund had a deficit fund balance.
Note 3-Deposits and Investments:
Deposits:
Deposits with banks are covered by the Federal Deposit Insurance Corporations (FDIC) and collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section 2.2-4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding public deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth of Virginia Treasury Board. Financial Institutions may choose between two collateralization methodologies and depending upon that choice, will pledge collateral that ranges in the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized.
Investments:
Statutes authorize local governments and other public bodies to invest in obligations of the United States or agencies thereof, obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the African Development Bank, “prime quality” commercial paper that has received at least two of the following ratings: P-1 by Moody’s Investors Service, Inc.; A-1 by Standard and Poor’s; or F1 by Fitch Ratings, Inc. (Section 2.2-4502), banker’s acceptances, repurchase agreements, and the State Treasurer’s Local Government Investment Pool (LGIP). As of and for the year ending June 30, 2021, the County did not have any investments.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 2-Stewardship, Compliance, and Accountability: (Continued)
‘A. Budgetary Information (Continued)
-
Formal budgetary integration is employed as a management control device during the year for the General Fund and the Special Revenue Funds. The School Fund is integrated only at the level of legal adoption.
-
All budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
-
Appropriations lapse on June 30, for all County units.
-
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to commit that portion of the applicable appropriations, is, not part of the County’s accounting system.
B. Excess of expenditures over appropriations
‘At June 30, 2022, there were no funds that had excess of expenditures over appropriations.
C. Deficit fund balance ‘At June 30, 2022, the CARES fund had a deficit fund balance. Note 3-Deposits and Investments:
Deposits: Deposits with banks are covered by the Federal Deposit Insurance Corporations (FDIC) and collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section 2.2-4400 et. seq. of the Code of Virginia, Under the Act, banks and savings institutions holding public deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth of Virginia Treasury Board. Financial Institutions may choose between two collateralization methodologies and depending upon that choice, will
pledge collateral that ranges in the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized.
Investments: ‘Statutes authorize local governments and other public bodies to invest in obligations of the United States or agencies thereof, obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the ‘African Development Bank, “prime quality” commercial paper that has received at least two of the following ratings: P-1 by Moody’s Investors Service, Inc.; A-1 by Standard and Poor’s; or F1 by Fitch Ratings, Inc. (Section 2.2-4502), banker’s acceptances, repurchase agreements, and the State Treasurer’s Local Government Investment Pool (LGIP). As of and for the year ending June 30, 2021, the County did not have any investments.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 4-Due from Other Governmental Units:
The following amounts represent receivables from other governments at year-end:
Primary Component Unit
Government School Board Local Government:
Southwest Virginia Regional Jail $ 363,193 $ -
Commonwealth of Virginia:
Local sales tax 389,637 -
State sales tax - 869,481
Non-categorical aid 98,836 -
Categorical aid-shared expenses 223,358 -
Categorical aid-Virginia Public Assistance funds 177,142 -
Categorical aid-other 57,928 -
Categorical aid-Comprehensive Services Act funds 242,604 -
Federal Government:
Categorical aid-Virginia Public Assistance funds 221,005 -
Categorical aid-other 17,133 -
School federal programs - 488,377
Total Amount Due from Other Governmental Units $ 1,790,836 $ 1,357,858
Note 5-Interfund/Component-Unit Obligations:
Due to Primary Due from Primary Government/ Government/
Component Unit Component Unit
Primary Government: General Fund $ 309,583 $ 200,000
Component Unit:
School Board $ - $ 309,583
IDA 200,000 -
Total $ 200,000 $ 309,583
Fund
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 4-Due from Other Governmental Units:
The following amounts represent receivables from other governments at year-end:
Local Government: Southwest Virginia Regional Jail
Commonwealth of Virginia: Local sales tax
State sales tax
Non-categorical aid
Categorical aid-shared expenses
Categorical aid-Virginia Public Assistance funds
Categorical aid-other
Categorical aid-Comprehensive Services Act funds Federal Governmen
Categorical aid-Virginia Public Assistance funds
Categorical aid-other
School federal programs
Total Amount Due from Other Governmental Units
Note 5-Interfund/Component-Unit Obligations:
Due to Primary
$
Primary Government
363,193 $ 389,637
98,836 223,358 177,142
57,928 242,604
221,005 17,133
1,790,836 _$
Due from Primary
Government/ Government/ Fund Component Unit __ Component Unit, Primary Government: General Fund $ 309,583. $ 200,000 Component Unit School Board $ - 309,583 IDA 200,000 - Total $ 200,000 $ 309,583
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Component Unit School Board
869,481
488,377
1,357,858
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 5-Interfund/Component-Unit Obligations: (Continued)
Interfund transfers and remaining balances for the year ended June 30, 2022, consisted of the following:
Transfers In Transfers Out
Primary Government:
General Fund $ - $ 92,595
Dante Fund 90,206 -
CARES Fund 51,726 -
ARPA Fund 2,389 51,726
Total $ 144,321 $ 144,321
Due From Due To
Primary Government:
General Fund $ 86,164 $ 764
Dante Fund 764 -
CARES Fund - 86,164
Total $ 86,928 $ 86,928
Fund
Fund
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgeting authorization.
The remainder of this page left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 5-Interfund/Component-Unit Obligations: (Continued)
Interfund transfers and remaining balances for the year ended June 30, 2022, consisted of the following:
Fund Transfers In Transfers Out Primary Government: General Fund $ - S$ 92,595, Dante Fund 90,206 : CARES Fund 51,726 : ARPA Fund 2,389 51,726 Total $ 144,321_$ 144,321 Fund Due From Due To Primary Government: General Fund s 86,164 $ 764 Dante Fund 764 - CARES Fund 86,164
Total s 86,928 $
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgeting authorization.
The remainder of this page left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations:
Primary Government - Governmental Activities Indebtedness
The following is a summary of long-term obligation transactions of the County for the year ended June 30, 2022:
Balance GASB 87 Increases/ Decreases/ Balance July 1, 2021 Implementation Issuances Retirements June 30, 2022
Direct borrowings and placements
General obligation bonds $ 3,781,495 $ - $ - $ (785,333) $ 2,996,162
Literary loans 25,000 - - (12,500) 12,500
Revenue bonds - - 16,015,000 - 16,015,000
Locality compensation payments 3,149,548 - - (25,131) 3,124,417
Finance purchase notes 5,103,237 - - (364,781) 4,738,456
Deferred Amounts:
Bond premiums 132,079 - - (16,804) 115,275
Total direct borrowings
and placements $ 12,191,359 $ - $ 16,015,000 $ (1,204,549) $ 27,001,810
Other long-term obligations
Lease liabilities $ - $ 3,800,307 $ 76,829 $ (672,495) $ 3,204,641
Landfill closure/
postclosure liability 302,080 - 13,896 - 315,976
Net OPEB liabilities 3,435,760 - 1,751,955 (2,007,745) 3,179,970
Compensated absences 572,110 - 404,037 (429,083) 547,064
Net pension liability 7,641,214 - 4,777,155 (8,667,233) 3,751,136
Total other long-term obligations $ 11,951,164 $ 3,800,307 $ 7,023,872 $ (11,776,556) $ 10,998,787
Total $ 24,142,523 $ 3,800,307 $ 23,038,872 $ (12,981,105) $ 38,000,597
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending June 30, Principal Interest Principal Interest
2023 $ 1,008,001 $ 649,576 $ 704,236 $ 92,299
2024 738,363 645,827 730,843 64,785
2025 831,806 615,666 696,516 36,969
2026 1,308,715 579,693 635,336 17,698
2027 1,351,692 537,276 170,231 7,015
2028-2032 5,521,956 2,171,113 267,479 4,162
2033-2037 5,428,720 1,462,322 - -
2038-2042 3,692,282 895,388 - -
2043-2047 3,320,000 564,165 - -
2048-2051 3,685,000 196,927 - -
Totals $ 26,886,535 $ 8,317,953 $ 3,204,641 $ 222,928
and Placement Lease Liabilities
Director Borrowing
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations:
Primary Government - Governmental Activities Indebtedness
The following is a summary of long-term obligation transactions of the County for the year ended June 30, 2022:
Balance GASB 87 Increases! Decreases/ Balance July 1, 2021 ___ Implementation Issuances Retirements _June 30, 2022
Direct borrowings and placements General obligation bonds s 3,781,495. $ 8 $ (785,333) $2,996,162 Literary loans 25,000 (12,500) 12,500 Revenue bonds 16,015,000 16,015,000 Locality compensation payments 3,149,548 25,131) 3,124,417 Finance purchase notes 5,103,237 (364,781) 4,738,456 Deferred Amounts:
Bond premiums 132,079 (16,804) 115,275 Total direct borrowings
and placements S___ 12,191,359 § $___ 16,015,000 $__(1,204,549) $_27,001,810 Other long-term obligations Lease liabilities s = $3,800,307 § 76,829 § (672,495) $ 3,204,641 Landfil closure
postclosure liability 302,080 13,896 - 315,976 Net OPEB liabilities 3,435,760 : 4,751,955 (2,007,745) 3,179,970 Compensated absences 572,110 404,037 (429,083) 547,064 Net pension liability 7,641,214 : 4,777,155 (8,667,233) 3,751,136 Total other long-term
obligations $___ 11,951,164 $3,800,307 §7,023,872 $(11,776,556) $_ 10,998,787
Total S___ 24,142,523, $3,800,307 §23,038,872$_(12,981,105) $__38,000,597
Annual requirements to amortize long-term obligations and related interest are as follows:
Director Borrowing
Year Ending and Placement Lease Liabilities June 30, Principal interest Principal interest 2023 $ 1,008,001 $ 649,576 § 704,236 $ 92,299 2024 738,363 645,827 730,843 64,785 2025 831,806 615,666 696,516 36,969 2026 41,308,715 579,693 635,336 17,698 2027 1,351,692 537,276 170,231 7,015 2028-2032 5,521,956 271,113 267,479 4,162 2033-2037 5,428,720 1,462,322 - - 2038-2042 3,692,282 895,388 : : 2043-2047 3,320,000 564,165 : : 2048-2051 3,685,000 196,927 : : Totals $ 26,886,535 $ 8,317,953 $ 3,204,641 $ 222,928
“te
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government - Governmental Activities Indebtedness (Continued)
Details of long-term indebtedness:
Final Amount of Balance Amount
Interest Date Maturity Installment Original Governmental Due Within
Rates Issued Date Amounts Issue Activities One Year
Direct Borrowings and Placements
General Obligation Bonds:
General obligation bond 2.35%-5.10% 2002 2023 $213,799-272,702 a+ 4,382,954$ 272,702$ 272,702$
General obligation bond 4.60%-5.10% 2006 2027 $147,228-197,458 a+ 3,205,190 940,849 179,493
General obligation bond 4.60%-5.10% 2009 2030 $55,000-110,000 a+ 1,485,000 685,000 -
General obligation bond 3.05%-5.05% 2010 2031 $55,000-120,000 a+ 1,620,000 900,000 80,000
Total General Obligation Bonds 2,798,551$ 532,195$
Literary loans: Literary loan 2.00% 7/1/2003 2023 $12,500 a+ 250,000 12,500$ 12,500$
Revenue Bonds:
VRS Virginia HELPS Program 1.975%-2.100% 1/14/2022 2051 $445,000-770,000 a+ 16,015,000$ 16,015,000$ -$
Locality Compensation Payments:
VRA - Moral Obligation 0.00% 2021 2041 $25,131-174,321 a+ 3,149,548$ 3,124,417$ 49,205$
RD - Moral Obligation 5.75% 1988 2028 $13,063-41,261 a+ 672,000 197,611 32,801
Total Locality Compensation Payments 3,322,028$ 82,006$
Finance Purchase Notes:
Energy Lease 4.60% 4/19/2017 2037 $173,771-415,639 a- 5,588,478$ 4,581,511$ 224,355$
Bus Lease 2.017% 11/15/2019 2023 $160,111 (a) 461,589 156,945 156,945
Total Finance Purchase Notes 4,738,456$ 381,300$
Total Direct Borrowings and Placements 26,886,535$ 1,008,001$
Plus:
Unamortized Premium 115,275$ 16,804$
Lease Liabilities:
Sheriff - 2020 Dodge Durango 10.44% 2021 2025 $291 (m) 13,663$ 8,953$ 2,678$
Sheriff - 2019 RAM 2500 11.57% 2020 2025 $357 (m) 16,342 8,982 3,417
Sheriff - 2019 Nissan Frontier 10.77% 2020 2025 $291 (m) 13,558 6,940 2,879
Sheriff - 2019 Dodge Journey 12.90% 2020 2025 $221 (m) 9,825 5,311 2,083
Sheriff - 2020 Dodge Durango 9.91% 2020 2025 $368 (m) 17,521 9,178 3,676
Sheriff - 2020 Dodge Durango 9.91% 2020 2025 $368 (m) 17,521 9,178 3,676
Sheriff - 2019 Dodge RAM 1500 9.54% 2020 2025 $454 (m) 21,754 11,349 4,558
Sheriff - 2020 Dodge Durango 10.06% 2020 2025 $368 (m) 17,464 9,161 3,666
Sheriff - 2020 Dodge Durango 10.06% 2020 2025 $368 (m) 17,464 9,161 3,666
Sheriff - 2020 Dodge Durango 9.91% 2020 2025 $369 (m) 17,564 9,779 3,625
Sheriff - 2020 Dodge Durango 9.91% 2020 2025 $369 (m) 17,563 9,778 3,625
Sheriff - 2020 Dodge Durango 11.72% 2020 2025 $295 (m) 13,477 7,858 2,765
Sheriff - 2020 Dodge Durango 11.72% 2020 2025 $295 (m) 13,477 7,858 2,765
Sheriff - 2020 Dodge Durango 11.72% 2020 2025 $295 (m) 13,477 7,858 2,765
Sheriff - 2020 Dodge Durango 11.72% 2020 2025 $295 (m) 13,477 7,858 2,765
Sheriff - 2020 Dodge Durango 10.06% 2020 2025 $455 (m) 21,547 12,366 4,411
Sheriff - 2020 Dodge Durango 11.72% 2020 2025 $295 (m) 13,477 7,858 2,764
Sheriff - 2019 Dodge RAM 1500 10.57% 2020 2025 $291 (m) 13,644 7,868 2,795
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government - Governmental Activities Indebtedness (Continued)
Details of long-term indebtedness:
Interest tes
Direct Borrowings and Placements (Genera Obigation Bond
{General obgation bond 2.5%5.10% General obigaton bond 4.60%5.10% General obigaton bond 4.60%5,10% General obigaton bond 3,056:5.05% Total General Obtgation Bonds Literary tans Literary tan 2.00% Revenue Bonde VRS Visinia HELPS Prosram 1.975%-2.100% Locaity Compensation Payments:
RA Moral Obigation 0.00% RO - Moral Obigation 5.75% Tota Locaity Compensation Payments
nance Purchase Notes:
Energy Lease 4.60% us Lease 2.0175 Total Finance Purchase Notes
Total Direct Borrowings and Pacements
Pas UUnamortized Premiam
Lease Libis:
‘Sherif = 2020 Dodge Durango 10.44% Shecff 2019 Ra 2800 11.57% Sheff - 2019 Nisan Frontier 10.77% Sheriff - 2019 Dedge Journey 12.90% Sheriff - 2020 Dodge Durango v.98 ‘Sherif - 2020 Dodge Durango 9.91% Sherif - 2019 Dodge RAM 1500 9.50% Sherif - 2020 Dodge Durango 10.06% Sherif - 2020 Dodge Durango 10.06% Sherif - 2020 Dodge Durango 9.98% Sherif - 2020 Dodge Durango v.98 Sherif - 2020 Dodge Durango 117% Sherif - 2020 Dodge Durango 11.7% Sherif - 2020 Dodge Durango 11.7% Sherif - 2020 Dodge Durango 117% Sherif - 2020 Dodge Durango 10.06% Shei + 2020 Dodge Durango 11% Shen - 2019 Dodge RAM 1500 10.57%
Final Date aturty Instaiment ised Date amounts 2002 rms §213,799.272,702a 2006 por $147,228197,458 a» 2009 2030 555,000-110,000 a+ 2010 2011 $55,000-120,000 a+
rns 2023 $12,500 a+
train — 2051 $445,000-770,000a aon pon s25,131-174,301 a+ 1988 2028 ——-§13,065-41,261 a+
4n9r07 2037 §173,771-415,639 a
nisi2019 2023, $169,111 () ao 2025 5291 (m) 2020 202s 5357 (m) 2020 202s 5291 (m) 2020 2s $221 (m) 2020 2s $368 (m) 2020 2025 $368 (m) 2020 205 $454 (m) 2020 205 $368 (m) 2020 2025 5368 (m) 2020 2005 $369 (m) 2020 202s $369 (m) 2020 2025 $295 (m) 2020 225 $295 (m) 2020 2025 $295 (m) 2020 205 5295 (m) 2020 205 $495 (m) 2020 2025 5295 (m) 2020 2005 5291 (m)
-32-
Amount of Origa sue
Ss 4382,954 3,208,190 1,485,000 1,620,000
280,000
$16,015,000
$3149.54 672,000
Ss 5,588,478 465,589
Ss 3668 16.20 2558 9,825 s7s21 721 n734 7408 7464 17,564 17508 war 13477 13477 war 507 1377 1360
falce Amount Governmental Due Within ‘Actwities One Year s mya $ mr 10.89 179,493 685,000 00,000 80,000 Sa798. 5517S 582,195 $12,800 § 12,800 $16,015,000 § Sanaa $49,205 senen 32,801 3301 078_§ 82,006 S$ 4sensi $224,355 156.945 156,945 4.738.436 $381,300 $26,886,535 § 1,008,001 S_1s275 $16,004 S895 $2678 8.982 34t7 6.940 2879 sant 2,083 9.178 3.67% 9.178 3.676 ery 4,358 9.161 3666 9,161 3,666 978 3,05 9 3605 7.858 2.765 7.858 2.765 7.858 2.765 7,958 2.765 12,366 att 7,858 2,764 7,868 2.798
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government - Governmental Activities Indebtedness (Continued)
Details of long-term indebtedness: (Continued)
Final Amount of Balance Amount
Interest Date Maturity Original Governmental Due Within
Rates Issued Date Issue Activities One Year
Lease Liabilities: (Continued)
Sheriff - 2019 Dodge RAM 1500 10.57% 2020 2025 $291 (m) 13,644$ 7,868$ 2,795$
Sheriff - 2020 Dodge Durango 10.83% 2020 2025 $291 (m) 13,562 8,059 2,754
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14,936 8,977 3,008
Sheriff - 2020 Dodge Charger 9.07% 2021 2025 $310 (m) 15,009 9,730 2,955
Sheriff - 2020 Dodge Charger 9.07% 2021 2025 $310 (m) 15,009 9,730 2,955
Sheriff - 2021 Jeep Grand Cherokee 8.65% 2021 2026 $420 (m) 23,012 18,361 4,221
Sheriff - 2022 Ford 12.88% 2022 2027 $634 (m) 28,233 27,262 4,346
Sheriff - 2022 Ford 11.35% 2022 2027 $689 (m) 31,737 31,048 5,000
County Admin - 2020 Chevy Tahoe 10.77% 2020 2025 $537 (m) 25,052 12,826 5,320
Sheriff - 2021 Nissan NV200 8.65% 2022 2027 $345 (m) 16,859 14,184 3,027
Sheriff - 2020 Chevy Tahoe 10.77% 2020 2025 $495 (m) 23,097 11,825 4,905
Sheriff - 2020 Dodge Durango 9.91% 2020 2025 $297 (m) 14,118 7,394 2,962
DSS - Building & Improvements 1.77% 2019 2029 $13,582 (m) 1,494,941 1,024,190 146,037
County Building 2.54% 2013 2025 $223,306-459,500 (a+) 5,086,100 1,775,100 428,300
Total Lease Liabilities 3,204,641$ 704,236$
Other Long-term Obligations:
Landfill Closure and Postclosure Liability 315,976$ -$
Net OPEB Liabilities 3,179,970 -
Compensated Absences 547,064 410,298
Net Pension Liability 3,751,136 -
Total Other Long-term Obligations 7,794,146$ 410,298$
Total Long-term Obligations 38,000,597$ 2,139,339$
(a+) - annual principal installments shown; does not include semi-annual interest installments
(sa) - semi-annual installments including interest, in applicable
(a-) - annual principal installments shown; does not include annual interest installments
(a) - annual principal and interest installments shown
(m) - monthly principal and interest installments shown
The County’s general obligation bonds/literary loans are subject to the State Aid Intercept Program. Under terms of the program, the County state aid is redirected to bond holders to cure any event(s) of default.
If an event of default occurs with the revenue bonds, the principal of the bond(s) may be declared immediately due and payable to the registered owner of the bond(s) by written notice to the County.
-33-
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government - Governmental Activities Indebtedness (Continued)
Details of long-term indebtedness: (Continued)
Fal Amount of ‘Balance Amount Interest Date Maturity ‘Original Governmental Due Within Rates ese ate ue ‘Actiities One Year Lease Libis: (Continued) ‘Sherif - 2019 Dodge RAM 1500 10.57% 2020 202s swim) $1364 $7.88 S795 ‘Sherif - 2020 Dodge Durango 10.83% 2020 2025 $291 (m) nase 8,059 2734 Sherif - 2020 Dodge Charger 9.13% 2020 205 $309 (m) 14.936 3977 3,008 Sherif - 2020 Dodge Charger 9.13% 2020 2025 5309 (m) 14.936 8977 3,008 Shecif - 2020 Dodge Charger 9.93% 2020 20s $309 (m) 14.936 397 3,008 Shenf - 2020 Dodge Charger osm 2020 202s $309 (m) 14.936 sor 3,008 Sheriff - 2020 Ddge Charger oun 2020 202s $309 (m) 14.936 897 3,008 ‘Sherif - 2020 Dodge Charger 9.138 2020 2s $309 (m) 14.936 897 3,008 ‘Sheriff - 2020 Dodge Charger 9.13% 2020 2025 $309 (m) 14.936 8.977 3,008 Sherif 2020 Doge Charger 9.13% 2020 2025 $309 (m) 14.906 8977 3,008 She - 2020 Dodge Charger 9.13% 2020 205 $309 (m) 14.936 3977 3,008 Sherif - 2020 Dodge Charger 9.13% 2020 2025 5309 (m) 14.936 8977 3,008 Shecif - 2020 Dodge Charger 9.07 oi aos $310 (m) 15,008 9.730 2,955 Sheriff - 2020 Dodge Charger 9.07 aon 202s $310 (m) 15,009 9.730 2.955 Sheriff - 2021 Jeep Grand Cherokee a.65t ao 2028 $420 (m) 201 18,361 az Sheff 2022 For 12.88% 202 227 $634 (m) 28.233 v2 446 Sheff 2022 Fors 11.388 202 2027 $689 (m) 377 31,088 5,000 County Aemin «2020 Chevy Tahoe 10.77% 2020 205 $837 (m) 25,052 12.826 5.320 Sherif = 2021 Nisan NV200 5.65% 202 27 $345 (m) 16,859 4108 3007 Sherif - 2020 Chewy Tahoe 10.77% 2020 2025 5495 (m) 23,087 1,825 4,908 Seif - 2020 Dodge Durango 9.91% 2020 2025 5297 (nm) ante 7,394 2,962 SS - ung & Improvements 4m 2019 209 513,582 (m) 1,494,941 1,004,190 146,037 County Building see 2013 2025 $223,306-439,500 (a+) 5,086,100 1,775,100 428,300 Total Lease Labittes 3.208641 $704,236 (Other Long-term Obligations: Landi Cesure and Posts Labitty Ss 315976 § Net OPEB Liabies 3,179,970 Compensated Absences Se7,064 410,298 Net Penson Libiity 3,751,136 ‘Total Other Long-term Obgations 7.794.146
“otal Long-term Obsigations $38,000,597
(2+) annual principal instalments shown; doesnot incude semi-anrual interest instalments (9) «semi-annual instalments ncuding intrest, inapplicable
(a>) - annual principal instalments shown; does not inlode annual intrest nstatents
(a) ~ annual principal and interest istalinens shown
(en) ~ month¥y principal and interest iestalinents shown
The County’s general obligation bonds/literary loans are subject to the State Aid Intercept Program. Under terms of the program, the County state aid is redirected to bond holders to cure any event(s) of default.
If an event of default occurs with the revenue bonds, the principal of the bond(s) may be declared immediately due and payable to the registered owner of the bond(s) by written notice to the County.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government – Business-type Activities Indebtedness
The following is a summary of long-term obligation transactions of the Enterprise Fund for the year ended June 30, 2022:
Balance Balance July 1, 2021 Issuances Retirements June 30, 2022
Direct borrowings and placements Revenue bonds $ 531,068 $ - $ (26,208) $ 504,860
Total $ 531,068 $ - $ (26,208) $ 504,860
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending June 30, Principal Interest
2023 27,416$ 22,156$
2024 28,675 20,897
2025 29,993 19,579
2026 31,370 18,202
2027 32,812 16,760
2028-2032 188,102 59,759
2033-2036 166,492 14,335
Totals 504,860$ 171,688$
Direct Borrowings and Placements Revenue Bonds
Details of long-term indebtedness:
Final Amount of Balance Amount Interest Date Maturity Original Business-Type Due Within Rates Issued Date Issue Activities One Year
Direct Borrowings and Placements Revenue Bonds: Revenue bond 4.50% 4/10/1996 2036 900,000$ 504,860$ 27,416$
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Primary Government - Business-type Activities Indebtedness
The following is a summary of long-term obligation transactions of the Enterprise Fund for the year ended June 30, 2022:
Balance Balance July 1, 2021 Issuances Retirements June 30, 2022 Direct borrowings and placements Revenue bonds s 531,068 $ -$ (26,208) $ 504,860 Total $ 531,068_$ _$ (26,208) $ 504,860
Annual requirements to amortize long-term obligations and related interest are as follows:
Direct Borrowings and Placements
Year Ending Revenue Bonds June 30, Principal Interest 2023 $ 27,416 22,156 2024 28,675 20,897 2025 29,993 19,579 2026 31,370 18,202 2027 32,812 16,760 2028-2032 188,102 59,759 2033-2036 166,492 14,335 Totals $ 504,860 _$ 171,688 Details of long-term indebtedness: Final Amount of Balance Amount Interest Date Maturity Original Business-Type Due Within Rates Issued Date ~—Issue — Activities. One Year Direct Borrowings and Placements Revenue Bonds: Revenue bond 4.50% 4/10/1996 2036 $ 900,000 $ 504,860 $ 27,416
“34.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued)
Component Unit – School Board Indebtedness
The following is a summary of long-term obligation transactions of the discretely presented component unit for the year ended June 30, 2022:
Balance Balance July 1, 2021 Increases Decreases June 30, 2022
Lease liabilities $ - $ 402,114 $ - $ 402,114
Net OPEB liabilities 17,025,752 1,766,102 (2,486,079) 16,305,775
Compensated absences 1,151,338 838,485 (863,504) 1,126,319
Net pension liability 40,426,835 7,857,732 (25,611,282) 22,673,285
Total $ 58,603,925 $ 10,864,433 $ (28,960,865) $ 40,507,493
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending June 30, Principal Interest
2023 $ 135,453 $ 4,614
2024 131,134 8,933
2025 135,527 4,540
Totals $ 402,114 $ 18,087
Lease Liabilities
Details of long-term indebtedness:
Final Amount of Amount Interest Date Maturity Original Total Due Within Rates Issued Date Issue Amount One Year
Lease Liabilities: Bus Lease 3.35% 5/13/2022 9/15/2024 402,114$ 402,114$ 135,453$
Other Obligations:
Net OPEB Liabilities 16,305,775$ -$
Compensated Absences 1,126,319 844,739
Net Pension Liability 22,673,285 -
Total Other Obligations 40,105,379$ 844,739$
Total Long-Term Obligations 40,507,493$ 980,192$
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 6-Long-Term Obligations: (Continued) Component Unit - School Board Indebtedness
The following is a summary of long-term obligation transactions of the discretely presented component unit for the year ended June 30, 2022:
Balance Balance July 1, 2024 Increases Decreases June 30, 2022 Lease liabilities s -$ 402,114 $ -$ 402,114 Net OPEB liabilities 17,025,752 1,766,102 (2,486,079) 16,305,775, ‘Compensated absences 4,151,338 838,485 (863,504) 1,126,319 Net pension liability 40,426,835 7,857,732 (25,611,282) 22,673,285 Total S____ 58,603,925 $___ 10,864,433 $__—(28,960,865) $40,507,493
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending Lease Liabilities June 30, Principal Interest 2023 s 135,453 $ 4,614 2024 131,134 8,933 2025 135,527 4,540 Totals Ss 402,114 $ 18,087
Details of long-term indebtedness:
Final Amount of Amount Interest Date Maturity Original Total Due Within Rates Issued Date Issue ‘Amount One Year Lease Liabilities: Bus Lease 3.35% 5/13/2022 9/15/2024 $ 402,114 $ 402,114 $ 135,453 Other Obligations: Net OPEB Liabilities $ 16,305,775 $ - ‘Compensated Absences 4,126,319 844,739 Net Pension Liability 22,673,285 Total Other Obligations $40,105,379 § 844,739 Total Long-Term Obligations $ 40,507,493 $ 980,192
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans:
Plan Description
All full-time, salaried permanent employees of the County and (nonprofessional) employees of the public school divisions are automatically covered by a VRS Retirement Plan upon employment. This is an agent multiple-employer plan administered by the Virginia Retirement System (the System) along with plans for other employer groups in the Commonwealth of Virginia. However, several entities whose financial information is not included in the primary government report, participate in the VRS plan through County of Russell, Virginia and the participating entities report their proportionate information on the basis of a cost-sharing plan.
Members earn one month of service credit for each month they are employed and for which they and their employer pay contributions to VRS. Members are eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended. Eligible prior service that may be purchased includes prior public service, active military service, certain periods of leave, and previously refunded service.
Benefit Structures
The System administers three different benefit structures for covered employees – Plan 1, Plan 2 and Hybrid. Each of these benefit structures has different eligibility criteria, as detailed below.
a. Employees with a membership date before July 1, 2010, vested as of January 1, 2013, and have not taken a refund, are covered under Plan 1, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced retirement benefit beginning at age 65 with at least 5 years of service credit or age 50 with at least 30 years of service credit. Non-hazardous duty employees may retire with a reduced benefit as early as age 55 with at least 5 years of service credit or age 50 with at least 10 years of service credit. Hazardous duty employees (law enforcement officers, firefighters, and sheriffs) are eligible for an unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25 years of service credit. Hazardous duty employees may retire with a reduced benefit as early as age 50 with at least 5 years of service credit.
b. Employees with a membership date from July 1, 2010 to December 31, 2013, that have not taken a refund or employees with a membership date prior to July 1, 2010 and not vested before January 1, 2013, are covered under Plan 2, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit or when the sum of their age plus service credit equals 90. Non-hazardous duty employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. Hazardous duty employees are eligible for an unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25 years of service credit. Hazardous duty employees may retire with a reduced benefit as early as age 50 with at least 5 years of service credit.
c. Non-hazardous duty employees with a membership date on or after January 1, 2014 are covered by the Hybrid Plan combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan 2 members also had the option of opting into this plan during the election window held January 1 – April 30, 2014 with an effective date of July 1, 2014. Employees covered by this plan are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit, or when the sum of their age plus service credit equals 90. Employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. For the defined contribution component, members are eligible to receive distributions upon leaving employment, subject to restrictions.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plan: Plan Description
All full-time, salaried permanent employees of the County and (nonprofessional) employees of the public school divisions are automatically covered by a VRS Retirement Plan upon employment. This is an agent multiple-employer plan administered by the Virginia Retirement System (the System) along with plans for other employer groups in the ‘Commonwealth of Virginia. However, several entities whose financial information is not included in the primary government report, participate in the VRS plan through County of Russell, Virginia and the participating entities report their proportionate information on the basis of a cost-sharing plan.
‘Members earn one month of service credit for each month they are employed and for which they and their ‘employer pay contributions to VRS. Members are eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended. Eligible prior service that may be purchased includes prior public service, active military service, certain periods of leave, and previously refunded service.
Benefit Structures
The System administers three different benefit structures for covered employees - Plan 1, Plan 2 and Hybrid. Each of these benefit structures has different eligibility criteria, as detailed below.
‘a. Employees with a membership date before July 1, 2010, vested as of January 1, 2013, and have not taken a refund, are covered under Plan 1, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced retirement benefit beginning at age 65 with at least 5 years of service credit or age 50 with at least 30 years of service credit. Non-hazardous duty employees may retire with a reduced benefit as early as age 55 with at least 5 years of service credit or age 50 with at least 10 years of service credit. Hazardous duty employees (law enforcement officers, firefighters, and sheriffs) are eligible for an unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25 years of service credit. Hazardous duty employees may retire with a reduced benefit as early as age 50 with at least 5 years of service credit.
b. Employees with a membership date from July 1, 2010 to December 31, 2013, that have not taken a refund or employees with a membership date prior to July 1, 2010 and not vested before January 1, 2013, are covered under Plan 2, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit or when the sum of their age plus service credit equals 90. Non-hazardous duty employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. Hazardous duty employees are eligible for an unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25 years of service credit. Hazardous duty employees may retire with a reduced benefit as early as ‘age 50 with at least 5 years of service credit.
c. Non-hazardous duty employees with a membership date on or after January 1, 2014 are covered by the Hybrid Plan combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan 2 members also had the option of opting into this plan during the election window held January 1 - April 30, 2014 with an effective date of July 1, 2014. Employees covered by this plan are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit, or when the sum of their age plus service credit equals 90. Employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. For the defined contribution component, members are eligible to receive distributions upon leaving employment, subject to restrictions.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Average Final Compensation and Service Retirement Multiplier
The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the employee’s average final compensation multiplied by the employee’s total service credit. Under Plan 1, average final compensation is the average of the employee’s 36 consecutive months of highest compensation and the multiplier is 1.70% for non-hazardous duty employees, 1.85% for sheriffs and regional jail superintendents, and 1.70% or 1.85% for hazardous duty employees as elected by the employer. Under Plan 2, average final compensation is the average of the employee’s 60 consecutive months of highest compensation and the retirement multiplier is 1.65% for non-hazardous duty employees, 1.85% for sheriffs and regional jail superintendents, and 1.70% or 1.85% for hazardous duty employees as elected by the employer. Under the Hybrid Plan, average final compensation is the average of the employee’s 60 consecutive months of highest compensation and the multiplier is 1.00%. For members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for those plans will be used to calculate the retirement benefit for service credited in those plans.
Cost-of-Living Adjustment (COLA) in Retirement and Death and Disability Benefits
Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of service credit are eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date. Retirees with a reduced benefit and who have less than 20 years of service credit are eligible for an annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility date. Under Plan 1, the COLA cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA cannot exceed 3.00%. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia, as amended, assigns the authority to establish and amend benefit provisions to the General Assembly of Virginia.
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.
The County’s contractually required contribution rate for the year ended June 30, 2022 was 13.16% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the County were $843,088 and $798,031 for the years ended June 30, 2022 and June 30, 2021, respectively.
Net Pension Liability
At June 30, 2022, the County reported a liability of $3,751,136 for its proportionate share of the net pension liability. The County’s net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. In order to allocate the net pension liability to all employers included in the plan, the County is required to determine its proportionate share of the net pension liability. Credible compensation as of June 30, 2021 and 2020 was used as a basis for allocation to determine the County’s proportionate share of the net pension liability. At June 30, 2021 and 2020, the County’s proportion was 99.1811% and 99.1463%, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Average Final Compensation and Service Retirement Multiplier
The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the ‘employee’s average final compensation multiplied by the employees total service credit. Under Plan 1, average final compensation is the average of the employee’s 36 consecutive months of highest compensation and the multiplier is 1.70% for non-hazardous duty employees, 1.85% for sheriffs and regional jail superintendents, and 1.70% or 1.85% for hazardous duty employees as elected by the employer. Under Plan 2, average final compensation is the average of the employee’s 60 consecutive months of highest compensation and the retirement multiplier is 1.65% for non-hazardous duty employees, 1.85% for sheriffs and regional jail superintendents, and 1.70% or 1.85% for hazardous duty employees as elected by the employer. Under the Hybrid Plan, average final compensation is, the average of the employee’s 60 consecutive months of highest compensation and the multiplier is 1.00%. For members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for those plans will be used to calculate the retirement benefit for service credited in those plans.
Cost-of-Living Adjustment (COLA) in Retirement and Death and Disability Benefits
Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of service credit are eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date. Retirees with a reduced benefit and who have less than 20 years of service credit are eligible for an annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility date. Under Plan 1, the COLA cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA cannot exceed 3.00%. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia, as amended, assigns the authority to establish and amend benefit provisions to the General Assembly of Virginia.
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General ‘Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.
The County’s contractually required contribution rate for the year ended June 30, 2022 was 13.16% of covered ‘employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the County were $843,088 and $798,031 for the years ended June 30, 2022 and June 30, 2021, respectively.
Net Pension Liability
‘At June 30, 2022, the County reported a liability of $3,751,136 for its proportionate share of the net pension liability. The County’s net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. In order to allocate the net pension liability to all employers included in the plan, the County is required to determine its proportionate share of the net pension liability. Credible compensation as of June 30, 2021 and 2020 was used as a basis for allocation to determine the County’s proportionate share of the net pension liability. At June 30, 2021 and 2020, the County’s proportion was 99.1811% and 99.1463%, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Actuarial Assumptions – General Employees
The total pension liability for General Employees in Russell County’s Retirement Plan and the Component Unit School Board’s (nonprofessional) Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50% – 5.35%
Investment rate of return 6.75%, net of pension plan investment expenses, including inflation
Mortality rates:
All Others (Non-10 Largest) – Non-Hazardous Duty: 15% of deaths are assumed to be service related
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
The remainder of this page is left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Actuarial Assumptions - General Employees
The total pension liability for General Employees in Russell County’s Retirement Plan and the Component Unit ‘School Board’s (nonprofessional) Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50% Salary increases, including inflation 3.50% - 5.35% Investment rate of return 6.75%, net of pension plan investment
expenses, including inflation
Mortality rates: All Others (Non-10 Largest) - Non-Hazardous Duty: 15% of deaths are assumed to be service related
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generational) back 3 years; 90% of rates for females set back 3 years
5% of rates for males set
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was
based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Actuarial Assumptions – General Employees (Continued)
All Others (Non-10 Largest) – Non-Hazardous Duty:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Actuarial Assumptions – Public Safety Employees with Hazardous Duty Benefits
The total pension liability for Public Safety employees with Hazardous Duty Benefits in the County’s Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50% – 4.75%
Investment rate of return 6.75%, net of pension plan investment expenses, including inflation
Mortality rates:
All Others (Non-10 Largest) – Hazardous Duty: 45% of deaths are assumed to be service related
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally with a Modified MP-2020 Improvement Scale; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally with a Modified MP- 2020 Improvement Scale; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally with a Modified MP-2020 Improvement Scale; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Actuarial Assumptions - General Employees (Continued)
All Others (Non-10 Largest) - Non-Hazardous Duty:
(Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates ‘Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid; changed final retirement age
(Withdrawal Rates ‘Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Actuarial Assumptions - Public Safety Employees with Hazardous Duty Benefits
The total pension liability for Public Safety employees with Hazardous Duty Benefits in the County’s Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50% Salary increases, including inflation 3.50% - 4.75% Investment rate of return 6.75%, net of pension plan investment
expenses, including inflation Mortality rates:
All Others (Non-10 Largest) - Hazardous Duty: 45% of deaths are assumed to be service related
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally with a Modified MP-2020 Improvement Scale; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally with a Modified MP- 2020 Improvement Scale; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generationally with a Modified MP-2020 Improvement Scale; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Actuarial Assumptions – Public Safety Employees with Hazardous Duty Benefits (Continued)
Mortality rates: (Continued)
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally with a Modified
MP-2020 Improvement Scale; 110% of rates for males and females set forward 2 years
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
All Others (Non-10 Largest) – Hazardous Duty:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Largest 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Actuarial Assumptions - Public Safety Employees with Hazardous Duty Benefits (Continued)
Mortality rates: (Continued)
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally with a Modified
‘MP-2020 Improvement Scale; 110% of rates for males and females set forward 2 years
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the
experience study and VRS Board action are as follows:
All Others (Non-10 Largest) - Hazardous Duty:
(Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
[Adjusted rates to better fit experience and changed final retirement age from 65 to 70
‘Withdrawal Rates
Decreased rates and changed from rates based on age and service to rates based on service only to better fit lexperience and to be more consistent with Locals Largest 10 Hazardous Duty
Disability Rates No change Salary Scale No change Line of Duty Disability No change Discount Rate No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average
Target Long-Term Long-Term Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50% Expected arithmetic nominal return* 7.39%
- The above allocation provides a one-year expected return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return or 6.75% which was roughly at the 40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected Asset Class (Strategy) Allocation _Rate of Return _Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 449% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00%
Inflation Expected arithmetic nominal return*
- The above allocation provides a one-year expected return of 7.39%. However, one-year returns do not take into ‘account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return or 6.75% which was roughly at the 40" percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that System member contributions will be made per the VRS Statutes and the
employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference
between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate.
Consistent with the phased-in funding provided by the General Assembly for state and teacher employer
contributions; the County and Component Unit School Board (nonprofessional) was also provided with an
opportunity to use an alternative employer contribution rate. For the year ended June 30, 2021 the alternate rate
was the employer contribution rate used in FY 2012 or 100% of the actuarially determined employer contribution
rate from the June 30, 2017 actuarial valuations, whichever was greater. Through the fiscal year ended June 30,
2021, the rate contributed by the school division for the VRS Teacher Retirement Plan was subject to the portion of
the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially
determined contribution rate. From July 1, 2021 on, participating employers and school divisions are assumed to
continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the County’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents County’s proportionate share of the net pension liability using the discount rate of 6.75%, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
County’s proportionate share of the County Retirement Plan Net Pension Liability $ 8,722,290 $ 3,751,136 $ (355,059)
Rate
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that System member contributions will be made per the VRS Statutes and the ‘employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Consistent with the phased-in funding provided by the General Assembly for state and teacher employer contributions; the County and Component Unit School Board (nonprofessional) was also provided with an ‘opportunity to use an alternative employer contribution rate. For the year ended June 30, 2021 the alternate rate was the employer contribution rate used in FY 2012 or 100% of the actuarially determined employer contribution rate from the June 30, 2017 actuarial valuations, whichever was greater. Through the fiscal year ended June 30, 2021, the rate contributed by the school division for the VRS Teacher Retirement Plan was subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021 on, participating employers and school divisions are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the County’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents County’s proportionate share of the net pension liability using the discount rate of 6.75%, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount 1% Increase 6.75%) (6.75%) (7.75%) County’s proportionate share of the County Retirement Plan Net Pension Liability $ 8,722,290 $ 3,751,136 $ (355,059)
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the County recognized pension expense of $990,742. Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions.
At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ 264,239 $ -
Change in assumptions 907,324 -
Net difference between projected and actual earnings on pension plan investments* 18 3,747,890
Changes in proportion and differences between employer contributions and proportionate share of contributions 8,684 5,583
Employer contributions subsequent to the measurement date 843,088 -
Total $ 2,023,353 $ 3,753,473
Primary Government
*Allocation cannot be netted given deferred outflows are those of governmental activities while deferred inflows are those of business type activities.
$843,088 reported as deferred outflows of resources related to pensions resulting from the County’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Primary Year ended June 30 Government
2023 $ (187,716)
2024 (371,424)
2025 (872,436)
2026 (1,141,632)
Thereafter -
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the County recognized pension expense of $990,742. Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions.
‘At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Primary Government Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 264,239 $ - Change in assumptions 907,324 - Net difference between projected and actual earnings on pension plan investments* 18 3,747,890 Changes in proportion and differences between employer contributions and proportionate share of contributions 8,684 5,583 Employer contributions subsequent to the measurement date 843,088 : Total $ 2,023,353_$ 3,753,473
“Allocation cannot be netted given deferred outflows are those of governmental activities while deferred inflows are those of business type activities.
$843,088 reported as deferred outflows of resources related to pensions resulting from the County’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Primary Year ended June 30 Government 2023 $ (187,716) 2024 (371,424) 2025 (872,436) 2026 (1,141,632)
Thereafter :
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report-pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500.
Component Unit School Board (Nonprofessional)
Additional information related to the plan description, plan contribution requirements, actuarial assumptions, long- term expected rate of return, and discount rate is included in the first section of this note.
Employees Covered by Benefit Terms
As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms of the pension plan:
Component Unit School Board
Nonprofessional Inactive members or their beneficiaries currently
receiving benefits 147
Inactive members: Vested inactive members 11
Non-vested inactive members 20
Long-term disability (LTD) 2
Inactive members active elsewhere in VRS 16
Total inactive members 49
Active members 101
Total covered employees 297
Contributions
The Component Unit School Board’s contractually required contribution rate for nonprofessional employees for the year ended June 30, 2022 was 21.15% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Component Unit School Board’s nonprofessional employees were $508,337 and $518,031 for the years ended June 30, 2022 and June 30, 2021, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report-pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500.
Component Unit School Board (Nonprofessional)
Additional information related to the plan description, plan contribution requirements, actuarial assumptions, long- term expected rate of return, and discount rate is included in the first section of this note.
Employees Covered by Benefit Terms
‘As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms of the pension plan:
Component Unit
School Board Nonprofessional Inactive members or their beneficiaries currently receiving benefits 147 Inactive members: Vested inactive members 1 Non-vested inactive members 20 Long-term disability (LTD) 2 Inactive members active elsewhere in VRS 16 Total inactive members 49 Active members 101 Total covered employees 297
Contributions
The Component Unit School Board’s contractually required contribution rate for nonprofessional employees for the year ended June 30, 2022 was 21.15% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by ‘employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Component Unit School Board’s nonprofessional employees were $508,337 and $518,031 for the years ended June 30, 2022 and June 30, 2021, respectively.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Net Pension Liability
The net pension liability (NPL) is calculated separately for each employer and represents that particular employer’s total pension liability determined in accordance with GASB Statement No. 68, less that employer’s fiduciary net position. The Component Unit School Board’s (Nonprofessional) net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2020 rolled forward to the measurement date of June 30, 2021.
Changes in Net Pension Liability
Total Plan Net Pension Fiduciary Pension Liability Net Position Liability
(a) (b) (a) - (b)
Balances at June 30, 2020 $ 19,147,231 $ 11,631,160 $ 7,516,071
Changes for the year:
Service cost $ 203,236 $ - $ 203,236
Interest 1,240,763 - 1,240,763
Changes of assumptions 477,264 - 477,264
Differences between expected
and actual experience (305,011) - (305,011)
Contributions - employer - 518,030 (518,030)
Contributions - employee - 116,995 (116,995)
Net investment income - 3,038,825 (3,038,825)
Benefit payments, including refunds
of employee contributions (1,531,107) (1,531,107) -
Administrative expenses - (8,189) 8,189
Other changes - 282 (282)
Net changes $ 85,145 $ 2,134,836 $ (2,049,691)
Balances at June 30, 2021 $ 19,232,376 $ 13,765,996 $ 5,466,380
Increase (Decrease) Component Unit-School Board (Nonprofessional)
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Net Pension Liability
The net pension liability (NPL) is calculated separately for each employer and represents that particular employer’s total pension liability determined in accordance with GASB Statement No. 68, less that employer’s fiduciary net position. The Component Unit School Board’s (Nonprofessional) net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2020 rolled forward to the measurement date of June 30, 2021.
Changes in Net Pension Liability
Component Unit-School Board (Nonprofessional) Increase (Decrease)
Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (@) ) (a)-(b) Balances at June 30, 2020 $ 19,147,231 $ 11,631,160_$ 7,516,071 Changes for the year: Service cost $ 203,236 $ - 8 203,236 Interest 1,240,763 : 1,240,763 Changes of assumptions 477,264 : 477,264 Differences between expected and actual experience (305,011) : (305,011) Contributions - employer : 518,030 (518,030) Contributions - employee : 116,995 (116,995) Net investment income : 3,038,825 (3,038,825) Benefit payments, including refunds of employee contributions (1,531,107) (1,531,107) : Administrative expenses : (8,189) 8,189 Other changes : 282 (282) Net changes $ 5,145 $ 2,134,836 $ (2,049,691) Balances at June 30, 2021 $ 19,232,376 $ 13,765,996 $ 5,466,380
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Component Unit School Board (Nonprofessional) using the discount rate of 6.75%, as well as what the Component Unit School Board’s (Nonprofessional) net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
Component Unit School Board (Nonprofessional) Net Pension Liability 7,574,487$ 5,466,380$ 3,696,356$
Rate
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the Component Unit School Board (Nonprofessional) recognized pension expense of $522,133. At June 30, 2022, the Component Unit School Board (Nonprofessional) reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ 75,053 $ 177,391
Change in assumptions 277,572 -
Net difference between projected and actual earnings on pension plan investments - 1,475,769
Employer contributions subsequent to the measurement date 508,337 -
Total $ 860,962 $ 1,653,160
Board (Nonprofessional)
Component Unit School
$508,337 reported as deferred outflows of resources related to pensions resulting from the Component Unit School Board’s (Nonprofessional) contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ended June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Component Unit School Board (Nonprofessional) using discount rate of 6.75%, as well as what the Component Unit School Board’s (Nonprofessional) net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount __1% Increase (6.75%) (6.75%) (7.75%) Component Unit School Board (Nonprofessional) Net Pension Liability $7,574,487 5,466,380 $3,696,356
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the Component Unit School Board (Nonprofessional) recognized pension expense of $522,133. At June 30, 2022, the Component Unit School Board (Nonprofessional) reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Component Unit School Board (Nonprofessional)
Deferred Outflows Deferred inflows of Resources of Resources Differences between expected and actual experience $ 75,053 § 177,391 Change in assumptions 277,572 : Net difference between projected and actual earnings on pension plan investments : 1,475,769 Employer contributions subsequent to the measurement date 508,337 : Total $ 860,962_$ 1,653,160
$508,337 reported as deferred outflows of resources related to pensions resulting from the Component Unit School Board’s (Nonprofessional) contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ended June 30, 2023.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Component Unit School Board
Year ended June 30 (Nonprofessional)
2023 $ (195,465)
2024 (304,985)
2025 (343,237)
2026 (456,848)
Thereafter -
Component Unit School Board (Professional)
Plan Description
All full time, salaries permanent (Professional) employees of public school divisions are automatically covered by the VRS Teacher Retirement Plan upon employment. This is a cost-sharing multiple employer plan administered by the Virginia Retirement System (the system).
Additional information regarding the plan description is included in the first section of this note.
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended,
but may be impacted as a result of funding provided to school divisions by the Virginia General Assembly.
Employees are required to contribute 5.00% of their compensation toward their retirement. Each School Division’s
contractually required contribution rate for the year ended June 30, 2022 was 16.62% of covered employee
compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30,
2019. The actuarially determined rate, when combined with employee contributions, was expected to finance the
costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the School Board were $3,179,016 and $3,135,782 for the years
ended June 30, 2022 and June 30, 2021, respectively.
In June 2021, the Commonwealth made a special contribution of approximately $61.3 million to the VRS Teacher Retirement Plan. This special payment was authorized by a budget amendment included in Chapter 552 of the 2021 Appropriation Act, and is classified as a non-employer contribution.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Nonprofessional) (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Component Unit School Board
Year ended June 30 (Nonprofessional) 2023 $ (195,465) 2024 (304,985) 2025 (343,237) 2026 (456,848) Thereafter :
Component Unit School Board (Professional)
Plan Description
AlLfull time, salaries permanent (Professional) employees of public school divisions are automatically covered by the VRS Teacher Retirement Plan upon employment. This is a cost-sharing multiple employer plan administered by the Virginia Retirement System (the system).
Additional information regarding the plan description is included in the first section of this note.
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to school divisions by the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement. Each School Division’s contractually required contribution rate for the year ended June 30, 2022 was 16.62% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the School Board were $3,179,016 and $3,135,782 for the years ended June 30, 2022 and June 30, 2021, respectively.
In June 2021, the Commonwealth made a special contribution of approximately $61.3 million to the VRS Teacher
Retirement Plan. This special payment was authorized by a budget amendment included in Chapter 552 of the 2021 Appropriation Act, and is classified as a non-employer contribution.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2022, the school division reported a liability of $17,206,905 for its proportionate share of the Net Pension Liability. The Net Pension Liability was measured as of June 30, 2021 and the total pension liability used to calculate the Net Pension Liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The school division’s proportion of the Net Pension Liability was based on the school division’s actuarially determined employer contributions to the pension plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2021, the school division’s proportion was 0.22165% as compared to 0.22620% at June 30, 2020.
For the year ended June 30, 2022, the school division recognized pension expense of $(26,402). Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions.
At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ - $ 1,465,581
Change of assumptions 3,014,605 -
Net difference between projected and actual earnings on pension plan investments - 10,843,331
Changes in proportion and differences between employer contributions and proportionate share of contributions 275,628 921,055
Employer contributions subsequent to the measurement date 3,179,016 -
Total $ 6,469,249 $ 13,229,967
Component Unit School Board (Professional)
$3,179,016 reported as deferred outflows of resources related to pensions resulting from the school division’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
‘At June 30, 2022, the school division reported a liability of $17,206,905 for its proportionate share of the Net Pension Liability. The Net Pension Liability was measured as of June 30, 2021 and the total pension liability used to calculate the Net Pension Liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The school division’s proportion of the Net Pension bility was based on the school division’s actuarially determined employer contributions to the pension plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2021, the school division’s proportion was 0.22165% as compared to 0.22620% at June 30, 2020.
For the year ended June 30, 2022, the school division recognized pension expense of $(26,402). Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions.
‘At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Component Unit School Board
(Professional) Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $8 1,465,581 Change of assumptions 3,014,605 : Net difference between projected and actual earnings on pension plan investments : 10,843,331 Changes in proportion and differences between employer contributions and proportionate share of contributions 275,628 921,055 Employer contributions subsequent to the measurement date 3,179,016 : Total $ 6,469,249 § 13,229,967
$3,179,016 reported as deferred outflows of resources related to pensions resulting from the school division’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in
the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Year ended June 30
2023 $ (2,426,245)
2024 (2,101,616)
2025 (2,267,031)
2026 (3,146,597)
2027 1,755
Thereafter -
Actuarial Assumptions
The total pension liability for the VRS Teacher Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50% – 5.95%
Investment rate of return 6.75%, net of pension plan investment expenses, including inflation
Mortality rates:
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:
Year ended June 30
2023 $ (2,426,245) 2024 (2,101,616) 2025 (2,267,031) 2026 (3,146,597) 2027 1,755 Thereafter :
Actuarial Assumptions
The total pension liability for the VRS Teacher Retirement Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021
Inflation 2.50% Salary increases, including inflation 3.50% - 5.95% Investment rate of return 6.75%, net of pension plan investment.
expenses, including inflation
Mortality rate
Pre-Retirement: Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement: Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement: Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors: Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Actuarial Assumptions (Continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change Salary Scale No change Discount Rate No change
Net Pension Liability
The net pension liability (NPL) is calculated separately for each system and represents that particular system’s total pension liability determined in accordance with GASB Statement No. 67, less that system’s fiduciary net position. As of June 30, 2021, NPL amounts for the VRS Teacher Employee Retirement Plan is as follows (amounts expressed in thousands):
Teacher Employee Retirement Plan
Total Pension Liability $ 53,381,141
Plan Fiduciary Net Position 45,617,878
Employers’ Net Pension Liability (Asset) $ 7,763,263
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 85.46%
The total pension liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net pension liability is disclosed in accordance with the requirements of GASB Statement No. 67 in the System’s notes to the financial statements and required supplementary information.
The long-term expected rate of return and discount rate information previously described also apply to this plan.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 7-Pension Plans: (Continued) Component Unit School Board (Professional)
Actuarial Assumptions (Continued)
(Continued
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
‘Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
‘Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; ‘changed final retirement age from 75 to 80 for all
Withdrawal Rates
‘Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change Salary Scale No change Discount Rate No change
Net Pension Liability
The net pension liability (NPL) is calculated separately for each system and represents that particular system’s total pension liability determined in accordance with GASB Statement No. 67, less that system’s fiduciary net position. As of June 30, 2021, NPL amounts for the VRS Teacher Employee Retirement Plan is as follows (amounts
expressed in thousands):
Total Pension Liability
Plan Fiduciary Net Position Employers’ Net Pension Liability (Asset)
Teacher Employee Retirement Plan
$ 53,381,141 45,617,878 7,763,263
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
85.46%
The total pension liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net pension liability fs disclosed in accordance with the requirements of GASB Statement No. 67 in the System’s notes to the financial statements and required supplementary information.
The long-term expected rate of return and discount rate information previously described also apply to this plan.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued)
Component Unit School Board (Professional) (Continued)
Sensitivity of the School Division’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the school division’s proportionate share of the net pension liability using the discount rate of 6.75%, as well as what the school division’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
School division’s proportionate share of the VRS Teacher Employee Retirement Plan Net Pension Liability 33,208,395$ 17,206,905$ 4,043,542$
Rate
Pension Plan Fiduciary Net Position
Detailed information about the VRS Teacher Retirement Plan’s Fiduciary Net Position is available in the separately
issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report
may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report.pdf,
or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Primary Government and Component Unit School Board
Aggregate Pension Information
Deferred Deferred Net Pension Pension Deferred Deferred Net Pension Pension Outflows Inflows Liability Expense Outflows Inflows Liability Expense
VRS Pension Plans:
Primary Government $ 2,023,353 $ 3,753,473 $ 3,751,136 $ 990,742 $ - $ - $ - $ -
School Board Nonprofessional - - - - 860,962 1,653,160 5,466,380 522,133
School Board Professional - - - - 6,469,249 13,229,967 17,206,905 (26,402)
Totals $ 2,023,353 $ 3,753,473 $ 3,751,136 $ 990,742 $ 7,330,211 $ 14,883,127 $ 22,673,285 $ 495,731
Primary Government Component Unit School Board
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 7-Pension Plans: (Continued) Component Unit School Board (Professional) (Continued
Sensitivity of the School Division’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the school division’s proportionate share of the net pension liability using the discount rate of 6.75%, as well as what the school division’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount 1% Increase (6.75%) (6.75%) (7.75%) School division’s proportionate share of the VRS Teacher Employee Retirement Plan Net Pension Liability $ 33,208,395 $ 17,206,905 $ 4,043,542
Pension Plan Fiduciary Net Position
Detailed information about the VRS Teacher Retirement Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www. varetire.org/pdf publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Primary Government and Component Unit School Board
Aggregate Pension Information
Primary Government ‘Component Unit School Board Deferred Deferred Net Pension Pension Deferred Deferred Net Pension Pension Outfiows _Inflows __Liability Expense _Outflows__Inflows __iabilty Expense VRS Pension Pans Primary Government S 2,023,353 § 3,753,473 $3,751,135 § 990,782 —§ s s s Schoo! Board Nonprfessional 860,962 1,653,160 5,466,380 522,133 School Board Professional 6,469,249 13,229,967 17,206,905 _ (26,402) Totals SZOa3SS $A TSEAS $A PT TS $ HOTA «$7. 330.211 $14,883,127 $22,673,205 $495.7
The remainder of this page is left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insurance:
Plan Description
The County administers a single-employer defined benefit healthcare plan, The Russell County OPEB Plan. The plan provides postemployment health care benefits to all eligible permanent employees who meet the requirements under the County’s pension plans. The plan does not issue a publicly available financial report.
Benefits Provided
Postemployment benefits are provided to eligible retirees to include Medical, Dental, and Vision insurance. The benefits that are provided for active employees are the same for eligible retirees, spouses and dependents of eligible retirees. All permanent employees of the County who meet eligibility requirements of the pension plan are eligible to receive postemployment health care benefits. Benefits for both the retiree and their dependent spouse are provided for their respective lifetimes. If the retiree predeceases the spouse, the spouse is eligible to continue their health coverage.
Plan Membership
At June 30, 2022 (measurement date), the following employees were covered by the benefit terms:
Active Employees 143
Retirees and Spouses 3
Total 146
Contributions
The board does not pre-fund benefits; therefore, no assets are accumulated in a trust fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. The funding requirements are established and may be amended by the Board of Supervisors. The amount paid by the County for OPEB as the benefits came due during the year ended June 30, 2022 was $26,812.
Total OPEB Liability
The County’s total OPEB liability was measured as of June 30, 2022. The total OPEB liability was determined by an actuarial valuation as of July 1, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insuranc
Plan Description
The County administers a single-employer defined benefit healthcare plan, The Russell County OPEB Plan. The plan provides postemployment health care benefits to all eligible permanent employees who meet the requirements under the County’s pension plans. The plan does not issue a publicly available financial report.
Benefits Provided
Postemployment benefits are provided to eligible retirees to include Medical, Dental, and Vision insurance. The benefits that are provided for active employees are the same for eligible retirees, spouses and dependents of eligible retirees. All permanent employees of the County who meet eligibility requirements of the pension plan are eligible to receive postemployment health care benefits. Benefits for both the retiree and their dependent spouse are provided for their respective lifetimes. If the retiree predeceases the spouse, the spouse is eligible to continue their health coverage.
Plan Membership
At June 30, 2022 (measurement date), the following employees were covered by the benefit term:
Active Employees 143 Retirees and Spouses 3 Total 146
Contributions
The board does not pre-fund benefits; therefore, no assets are accumulated in a trust fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. The funding requirements are established and may be amended by the Board of Supervisors. The amount paid by the County for OPEB as the benefits came due during the year ended June 30, 2022 was $26,812.
Total OPEB Liability
The County’s total OPEB liability was measured as of June 30, 2022. The total OPEB liability was determined by an actuarial valuation as of July 1, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insurance: (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method Entry age normal, level percentage of pay Discount Rate 3.54% as of June 30, 2022
2.16% as of June 30, 2021 Inflation 2.50% Healthcare Trend Rate The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10% in 2022 then
gradually declines to 3.90% in 2073 and later.
Salary Increase Rates The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50% increase for 20 or more years of service.
Retirement Age The average age at retirement is 61. Mortality Rates The pre-retirement mortality rates for General Employees were calculated using RP-2014
Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service-related.
The pre-retirement mortality rates for Public Safety Employees were calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males 90% of rates; females set forward 1 year. 35% of deaths are assumed to be service-related.
The post-retirement mortality rates for General Employees were calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase compounded from ages 70 to 85.
The post-retirement mortality rates for Public Safety Employees were calculated using RP- 2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90; females set forward 3 years.
The post-disablement mortality rates of General Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
The post-disablement mortality rates of Publci Safety Employees were calculated using RP- 2014 Disabled Mortality Rates projected with Scale BB to 2020; males set forward 2 years; unisex using 100% male.
The demographic assumptions used to determine the Total OPEB Liability as of June 30, 2022 were based on the results of an actuarial experience study for the Virginia Retirement System coving the period from July 1, 2012 to June 30, 2016. The demographic assumptions recommended as a result of this study were adopted by the VRS Board of Trustees on April 26, 2017.
Discount Rate The discount rates are based on the Bond Buyer General Obligation 20-Bond Municipal Index as of their respective measurement dates.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insuranc
(Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
[Actuarial Cost Method
Entry age normal, level percentage of pay
Discount Rate
3.54% as of June 30, 2022 2.16% as of June 30, 2021
Inflation
2.50%
Healthcare Trend Rate
[The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10% in 2022 then| gradually declines to 3.90% in 2073 and later.
Salary Increase Rates
‘The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50%| increase for 20 or more years of service.
Retirement Age
The average age at retirement is 61.
IMortality Rates
[The pre-retirement mortality rates for General Employees were calculated using RP-2014| Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service-related,
‘The pre-retirement mortality rates for Public Safety Employees were calculated using RP-2014| Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males 90% of rates; females set forward 1 year. 35% of deaths are assumed to be service-related.
‘The post-retirement mortality rates for General Employees were calculated using RP-2014| Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase ‘compounded from ages 70 to 85.
The post-retirement mortality rates for Public Safety Employees were calculated using RP- 2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90; females set forward 3 years
‘The post-disablement mortality rates of General Employees were calculated using RP-2014| Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
[The post-disablement mortality rates of Publci Safety Employees were calculated using RP-| 2014 Disabled Mortality Rates projected with Scale BB to 2020; males set forward 2 years; lunisex using 100% male.
The demographic assumptions used to determine the Total OPEB Liability as of June 30, 2022 were based on the results of an actuarial experience study for the Virginia Retirement System coving the period from July 1, 2012 to June 30, 2016. The demographic assumptions recommended as a result of this study were adopted by the VRS Board of Trustees on April 26, 2017.
Discount Rate
The discount rates are based on the Bond Buyer General Obligation 20-Bond Municipal Index as of their respective
measurement dates.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insurance: (Continued)
Changes in Total OPEB Liability
Primary Government Total OPEB Liability
Balances at June 30, 2021 $ 798,143
Changes during Year:
Service Cost $ 39,498
Interest on Total OPEB Liability 17,805
Effect of Economic/Demographic Gains or Losses 36,224
Effect of Assumptions Changes or Inputs (103,909)
Benefit Payments (26,812)
Net Changes $ (37,194)
Balances at June 30, 2022 $ 760,949
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following amounts present the total OPEB liability of the County, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the current discount rate:
1% Decrease Current Discount Rate 1% Increase (2.54%) (3.54%) (4.54%)
829,868$ 760,949$ 697,829$
Rate
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the County, as well as what the total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point or one percentage point higher than the current healthcare cost trend rates:
Healthcare Cost 1% Decrease Trend 1% Increase
673,511$ 760,949$ 862,794$
Rates
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insuranc
(Continued)
Changes in Total OPEB Liability
Primary Government Total OPEB Liability
Balances at June 30, 2021 $ 798,143, Changes during Year:
Service Cost $ 39,498 Interest on Total OPEB Liability 17,805, Effect of Economic/Demographic Gains or Losses 36,224 Effect of Assumptions Changes or Inputs (103,909) Benefit Payments (26,812) Net Changes s (7,194) Balances at June 30, 2022 $ 760,949
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following amounts present the total OPEB liability of the County, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the current discount rate:
Rate 1% Decrease Current Discount Rate 1% Increase (2.54%) (3.54%) (4.54%)
5 829,868 S 760,949 697,829
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the County, as well as what the total OPEB liability would be if it, were calculated using healthcare cost trend rates that are one percentage point or one percentage point higher than the current healthcare cost trend rates:
Rates Healthcare Cost 1% Decrease Trend 1% Increase $ e311 760,949. 862,794
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 8-Primary Government Other Postemployment Benefits-Health Insurance: (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 202, the County recognized OPEB expense in the amount of $1,009. At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ 30,286 $ 47,704
Changes in assumptions 239,437 89,512
Total $ 269,723 $ 137,216
Amounts reported as deferred inflows of resources related to the OPEB plan will be recognized in OPEB expense in future reporting periods as follows:
Year ended June 30
2023 $ 43,128
2024 42,958
2025 42,783
2026 15,843
2027 (11,096)
Thereafter (1,109)
Additional disclosures on changes in total OPEB liability, related ratios, and employer contributions can be found in the required supplementary information following the notes to the financial statements.
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance:
Plan Description
The School Board administers a single-employer defined benefit healthcare plan, the Russell County Public Schools OPEB Plan. The plan provides postemployment health care benefits to all eligible permanent employees who meet the requirements under the Schools Board’s pension plans. The plan does not issue a publicly available financial report.
Benefits Provided
Postemployment benefits are provided to eligible retirees to include Medical, Dental, and Vision insurance. The benefits that are provided for active employees are the same for eligible retirees, spouses and dependents of eligible retirees. All permanent employees of the School Board who meet eligibility requirements of the pension plan are eligible to receive postemployment health care benefits. Benefits for both the retiree and their dependent spouse are provided for their respective lifetimes. If the retiree predeceases the spouse, the spouse is eligible to continue their health coverage.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
(Continued)
Note 8-Primary Government Other Postemployment Benefits-Health Insuranc
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 202, the County recognized OPEB expense in the amount of $1,009. At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience s 30,286 $ 47,704 CChanges in assumptions 239,437 89,512
Total 269,723, $ 137,216
Amounts reported as deferred inflows of resources related to the OPEB plan will be recognized in OPEB expense in future reporting periods as follows:
Year ended June 30
2023, S$ 43,128 2024 42,958 2025 42,783 2026 15,843, 2027 (11,096) Thereafter (1,109)
‘Additional disclosures on changes in total OPEB liability, related ratios, and employer contributions can be found in the required supplementary information following the notes to the financial statements.
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance:
Plan Description
The School Board administers a single-employer defined benefit healthcare plan, the Russell County Public Schools OPEB Plan. The plan provides postemployment health care benefits to all eligible permanent employees who meet the requirements under the Schools Board’s pension plans. The plan does not issue a publicly available financial report.
Benefits Provided
Postemployment benefits are provided to eligible retirees to include Medical, Dental, and Vision insurance. The benefits that are provided for active employees are the same for eligible retirees, spouses and dependents of eligible retirees. All permanent employees of the School Board who meet eligibility requirements of the pension plan are eligible to receive postemployment health care benefits. Benefits for both the retiree and their dependent spouse are provided for their respective lifetimes. If the retiree predeceases the spouse, the spouse is eligible to continue their health coverage.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Plan Membership
At June 30, 2022 (measurement date), the following employees were covered by the benefit terms:
Active employees 546
Retirees and Spouses 40
Total 586
Contributions
The School Board does not pre-fund benefits; therefore, no assets are accumulated in a trust fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. The funding requirements are established and may be amended by the School Board. The amount paid by the School Board for OPEB as the benefits came due during the year ended June 30, 2022 was $569,865.
Total OPEB Liability
The School Board’s total OPEB liability was measured as of June 30, 2022. The total OPEB liability was determined by an actuarial valuation as of July 1, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Plan Membership
‘At June 30, 2022 (measurement date), the following employees were covered by the benefit terms:
Active employees 546 Retirees and Spouses 40 Total 586
Contributions The School Board does not pre-fund benefits; therefore, no assets are accumulated in a trust fund. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. The funding requirements are established and may be amended by the School Board. The amount paid by the School Board for OPEB as the benefits came due during the year ended June 30, 2022 was $569,865.
Total OPEB Liability
The School Board’s total OPEB liability was measured as of June 30, 2022. The total OPEB liability was determined by an actuarial valuation as of July 1, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method Entry age normal, level percentage of pay Discount Rate 3.54% as of June 30, 2022
2.16% as of June 30, 2021
Inflation 2.50% Healthcare Trend Rate The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10% in 2022 then
gradually declines to 3.90% in 2073 and later.
Salary Increase Rates The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50% for 20 or more years of service.
Retirement Age The average age at retirement is 61. Mortality Rates The pre-retirement mortality rates for General Employees were calculated using RP-2014
Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service-related.
The pre-retirement mortality rates for Teachers were calculated using RP-2014 White Collar Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; 5% of deaths are assumed to be service-related.
The post-retirement mortality rates for General Employees were calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase compounded from ages 70 to 85.
The post-retirement mortality rates for Teachers were calculated using RP-2014 White Collar Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males 1% increase compounded from ages 70 to 90; females set back 3 years with 1.5% increase compounded from ages 65 to 70 and 2.0% increase compounded from ages 75 to 90.
The post-disablement mortality rates of General Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
The post-disablement mortality rates of Teachers were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; 115% of rates for males and females.
The demographic assumptions used to determine the Total OPEB Liability as of June 30, 2022 were based on the results of an actuarial experience study for the Virginia Retirement System coving the period from July 1, 2012 to June 30, 2016. The demographic assumptions recommended as a result of this study were adopted by the VRS Board of Trustees on April 26, 2017.
Discount Rate
The discount rates are based on the Bond Buyer 20-Year Bond GO Index as of their respective measurement dates.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Actuarial Assumptions
The total OPEB liability in the July 1, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
[Actuarial Cost Method [Entry age normal, level percentage of pay
Discount Rate 3.54% as of June 30, 2022 2.16% as of June 30, 2021 Inflation 250%
Healthcare Trend Rate |The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10% in 2022 then gradually declines to 3.90% in 2073 and later.
Salary Increase Rates |The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50% for 20 or more years of service.
Retirement Age [The average age at retirement is 61.
[Mortality Rates [The pre-retirement mortality rates for General Employees were calculated using RP-2014|
Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale [BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service-related.
[The pre-retirement mortality rates for Teachers were calculated using RP-2014 White Coltar| Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; 5% of deaths are assumed to be service-related.
[The post-retirement mortality rates for General Employees were calculated using RP-2014| Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase icompounded from ages 70 to 85.
[The post-retirement mortality rates for Teachers were calculated using RP-2014 White Coltar| Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males 1% increase compounded from ages 70 to 90; females set back 3 years with 1.5% increase compounded from ages 65 to 70 and 2.0% increase compounded from ages 75 to 90.
The post-disablement mortality rates of General Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
‘The post-disablement mortality rates of Teachers were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; 115% of rates for males and females.
The demographic assumptions used to determine the Total OPEB Liability as of June 30, 2022 were based on the results of an actuarial experience study for the Virginia Retirement System coving the period from July 1, 2012 to June 30, 2016. The demographic assumptions recommended as a result of this study were adopted by the VRS Board of Trustees on April 26, 2017.
Discount Rate
The discount rates are based on the Bond Buyer 20-Year Bond GO Index as of their respective measurement dates.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Changes in Total OPEB Liability
Component Unit School Board
Total OPEB Liability Balances at June 30, 2021 $ 11,599,608
Changes during Year:
Service Cost $ 529,129
Interest on Total OPEB Liability 255,859
Effect of Economic/Demographic Gains or Losses (62,179)
Effect of Assumptions Changes or Inputs 103,942
Benefit Payments (569,865)
Net Changes $ 256,886
Balances at June 30, 2022 $ 11,856,494
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following amounts present the total OPEB liability of the School Board, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the current discount rate:
1% Decrease Current Discount Rate 1% Increase (2.54%) (3.54%) (4.54%)
12,764,234$ 11,856,494$ 10,999,024$
Rate
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the School Board, as well as what the total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:
Healthcare Cost 1% Decrease Trend 1% Increase
10,480,091$ 11,856,494$ 13,482,414$
Rates
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
Changes in Total OPEB Liability
Component Unit School Board Total OPEB Liability
Balances at June 30, 2021 $ 11,599,608 Changes during Year:
Service Cost $ 529,129 Interest on Total OPEB Liability 255,859 Effect of Economic/ Demographic Gains or Losses (62,179) Effect of Assumptions Changes or Inputs 103,942 Benefit Payments, (569,865) Net Changes $
Balances at June 30, 2022 $ 11,856,494
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following amounts present the total OPEB liability of the School Board, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.54%) or one percentage point higher (4.54%) than the current discount rate:
Rate 1% Decrease Current Discount Rate 1% Increase (2.54%) (3.54%) (4.54%) $ 12,764,234 $ 11,856,494 $ 10,999,024
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the School Board, as well as what the total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates:
Rates Healthcare Cost 1% Decrease Trend 1% Increase $ 10,480,091 11,856,494 § 13,482,414
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the School Board recognized OPEB expense in the amount of $1,393,130. At June 30, 2022, the School Board reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ - $ 583,034
Changes in assumptions 2,396,083 34,185
Total $ 2,396,083 $ 617,219
Amounts reported as deferred inflows of resources related to the OPEB plan will be recognized in OPEB expense in future reporting periods as follows:
Year ended June 30
2023 $ 608,142
2024 606,780
2025 543,875
2026 5,424
2027 5,424
Thereafter 9,219
Additional disclosures on changes in School Board’s total OPEB liability, related ratios, and employer contributions can be found in the required supplementary information following the notes to the financial statements.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 9-Component Unit School Board Other Postemployment Benefits-Health Insurance: (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the School Board recognized OPEB expense in the amount of $1,393,130. At June 30, 2022, the School Board reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - S$ 583,034 Changes in assumptions 2,396,083 34,185 Total $ 2,396,083 $ 617,219
‘Amounts reported as deferred inflows of resources related to the OPEB plan will be recognized in OPEB expense in future reporting periods as follows:
Year ended June 30
2023 $ 608,142 2024 606,780 2025 543,875 2026 5,424 2027 5,424 Thereafter 9,219
‘Additional disclosures on changes in School Board’s total OPEB liability, related ratios, and employer contributions can be found in the required supplementary information following the notes to the financial statements.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan):
Plan Description
The Group Life Insurance (GLI) Plan was established pursuant to §51.1-500 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full- time, salaried permanent employees of the state agencies, teachers, and employees of participating political subdivisions are automatically covered by the VRS GLI Plan upon employment. This is a cost-sharing multiple- employer plan administered by the Virginia Retirement System (the System), along with pensions and other OPEB plans, for public employer groups in the Commonwealth of Virginia.
In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves as well as a spouse or dependent children through the Optional GLI Plan. For members who elect the optional group life insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums from members’ paychecks and pay the premiums to the insurer. Since this is a separate and fully insured plan, it is not included as part of the GLI Plan OPEB.
The specific information for GLI OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
The GLI Plan was established July 1, 1960, for state employees, teachers, and employees of political subdivisions that elect the plan. Basic GLI coverage is automatic upon employment. Coverage ends for employees who leave their position before retirement eligibility or who take a refund of their accumulated retirement member contributions and accrued interest.
Benefit Amounts
The GLI Plan is a defined benefit plan with several components. The natural death benefit is equal to the employee’s covered compensation rounded to the next highest thousand and then doubled. The accidental death benefit is double the natural death benefit. In addition to basic natural and accidental death benefits, the plan provides additional benefits provided under specific circumstances that include the following: accidental dismemberment benefit, seatbelt benefit, repatriation benefit, felonious assault benefit, and accelerated death benefit option. The benefit amounts are subject to a reduction factor. The benefit amount reduces by 25% on January 1 following one calendar year of separation. The benefit amount reduces by an additional 25% on each subsequent January 1 until it reaches 25% of its original value. For covered members with at least 30 years of service credit, the minimum benefit payable was set at $8,000 by statute in 2015. This will be increased annually based on the VRS Plan 2 cost-of-living adjustment calculation. The minimum benefit adjusted for the COLA was $8,722 as of June 30, 2022.
Contributions
The contribution requirements for the GLI Plan are governed by §51.1-506 and §51.1-508 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to state agencies and school divisions by the Virginia General Assembly. The total rate for the GLI Plan was 1.34% of covered employee compensation. This was allocated into an employee and an employer component using a 60/40 split. The employee component was 0.80% (1.34% x 60%) and the employer component was 0.54% (1.34% x 40%). Employers may elect to pay all or part of the employee contribution; however, the employer must pay all of the employer contribution. Each employer’s contractually required employer contribution rate for the year ended June 30, 2022 was 0.54% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate, when combined with employee contributions, was expected to finance the costs of benefits payable during the year, with an additional amount to finance any unfunded accrued liability.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan):
Plan Description
The Group Life Insurance (GLI) Plan was established pursuant to §51.1-500 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full- time, salaried permanent employees of the state agencies, teachers, and employees of participating political subdivisions are automatically covered by the VRS GLI Plan upon employment. This is a cost-sharing multiple- ‘employer plan administered by the Virginia Retirement System (the System), along with pensions and other OPEB plans, for public employer groups in the Commonwealth of Virginia.
In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves as well ‘as a spouse or dependent children through the Optional GLI Plan. For members who elect the optional group life insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums from members’ paychecks and pay the premiums to the insurer. Since this is a separate and fully insured plan, it is not included as part of the GLI Plan OPEB.
The specific information for GLI OPEB, including eligibility, coverage and benefits is described below: Eligible Employees
The GLI Plan was established July 1, 1960, for state employees, teachers, and employees of political subdivisions that elect the plan. Basic GLI coverage is automatic upon employment. Coverage ends for employees who leave their position before retirement eligibility or who take a refund of their accumulated retirement member contributions and accrued interest.
Benefit Amounts
The GLI Plan is a defined benefit plan with several components. The natural death benefit is equal to the ‘employee’s covered compensation rounded to the next highest thousand and then doubled. The accidental death benefit is double the natural death benefit. In addition to basic natural and accidental death benefits, the plan provides additional benefits provided under specific circumstances that include the following: accidental dismemberment benefit, seatbelt benefit, repatriation benefit, felonious assault benefit, and accelerated death benefit option. The benefit amounts are subject to a reduction factor. The benefit amount reduces by 25% on January 1 following one calendar year of separation. The benefit amount reduces by an additional 25% on each subsequent January 1 until it reaches 25% of its original value. For covered members with at least 30 years of service credit, the minimum benefit payable was set at $8,000 by statute in 2015. This will be increased annually based on the VRS Plan 2 cost-of-living adjustment calculation. The minimum benefit adjusted for the COLA was $8,722 as of June 30, 2022.
Contributions
The contribution requirements for the GLI Plan are governed by §51.1-506 and §51.1-508 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to state agencies and school divisions by the Virginia General Assembly. The total rate for the GLI Plan was 1.34% of covered employee compensation. This was allocated into an employee and an employer component using a 60/40 split. The employee component was 0.80% (1.34% x 60%) and the employer component was 0.54% (1.34% x 40%). Employers may elect to pay all or part of the employee contribution; however, the employer must pay all of the employer contribution. Each employer’s contractually required employer contribution rate for the year ended June 30, 2022 was 0.54% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate, when combined with employee contributions, was expected to finance the costs of benefits payable during the year, with an additional amount to finance any unfunded accrued liability.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Contributions (Continued)
Contributions to the GLI Plan from the County were $36,041 and $33,944 for the years ended June 30, 2022 and June 30, 2021, respectively.
Contributions to the GLI Plan from the Component Unit School Board (Nonprofessional) were $13,463 and $13,631 for the years ended June 30, 2022 and June 30, 2021, respectively.
Contributions to the GLI Plan from the Component Unit School Board (Professional) were $106,394 and $104,764 for the years ended June 30, 2022 and June 30, 2021, respectively.
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI PLan OPEB
At June 30, 2022, the County reported a liability of $354,521 for its proportionate share of the Net GLI OPEB Liability.
At June 30, 2022, the Component Unit School Board (Nonprofessional) reported a liability of $142,390 for its proportionate share of the Net GLI OPEB Liability.
At June 30, 2022, the Component Unit School Board (Professional) reported a liability of $1,094,065 for its proportionate share of the Net GLI OPEB Liability.
The Net GLI OPEB Liability was measured as of June 30, 2021 and the total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The covered employer’s proportion of the Net GLI OPEB Liability was based on the covered employer’s actuarially determined employer contributions to the GLI Plan for the year ended June 30, 2020 relative to the total of the actuarially determined employer contributions for all participating employers.
At June 30, 2021, the County’s proportion was 0.03050% as compared to 0.03090% at June 30, 2020.
At June 30, 2021, the Component Unit School Board (Nonprofessional) proportion was 0.01220% as compared to 0.01300% at June 30, 2020.
At June 30, 2021, the Component Unit School Board (Professional) proportion was 0.09400% as compared to 0.09530% at June 30, 2020.
For the year ended June 30, 2022, the County recognized GLI OPEB expense of $13,445. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.
For the year ended June 30, 2022, the Component Unit School Board (Nonprofessional) recognized GLI OPEB expense of $(584). Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.
For the year ended June 30, 2022, the Component Unit School Board (Professional) recognized GLI OPEB expense of $29,213. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Contributions (Continued)
Contributions to the GLI Plan from the County were $36,041 and $33,944 for the years ended June 30, 2022 and June 30, 2021, respectively.
Contributions to the GLI Plan from the Component Unit School Board (Nonprofessional) were $13,463 and $13,631 for the years ended June 30, 2022 and June 30, 2021, respectively.
Contributions to the GLI Plan from the Component Unit School Board (Professional) were $106,394 and $104,764 for the years ended June 30, 2022 and June 30, 2021, respectively.
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI PLan OPEB
‘At June 30, 2022, the County reported a liability of $354,521 for its proportionate share of the Net GLI OPEB Liability.
‘At June 30, 2022, the Component Unit School Board (Nonprofessional) reported a liability of $142,390 for its proportionate share of the Net GLI OPEB Liability.
‘At June 30, 2022, the Component Unit School Board (Professional) reported a liability of $1,094,065 for its proportionate share of the Net GLI OPEB Liability.
The Net GLI OPEB Liability was measured as of June 30, 2021 and the total GL! OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation performed as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The covered employer’s proportion of the Net GLI OPEB Liability was based on the covered employer’s actuarially determined employer contributions to the GLI Plan for the year ended June 30, 2020 relative to the total of the actuarially determined employer contributions for all participating employers.
‘At June 30, 2021, the County’s proportion was 0.03050% as compared to 0.03090% at June 30, 2020.
‘At June 30, 2021, the Component Unit School Board (Nonprofessional) proportion was 0.01220% as compared to 0.01300% at June 30, 2020.
‘At June 30, 2021, the Component Unit School Board (Professional) proportion was 0.09400% as compared to 0.09530% at June 30, 2020.
For the year ended June 30, 2022, the County recognized GLI OPEB expense of $13,445. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.
For the year ended June 30, 2022, the Component Unit School Board (Nonprofessional) recognized GLI OPEB expense of $(584). Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion,
For the year ended June 30, 2022, the Component Unit School Board (Professional) recognized GLI OPEB expense of
$29,213. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.
“61
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI Plan OPEB (Continued)
At June 30, 2022, the employer reported deferred outflows of resources and deferred inflows of resources related to the GLI OPEB from the following sources:
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources of Resources of Resources
Differences between expected and actual experience $ 40,434 $ 2,701 $ 16,240 $ 1,085 $ 124,782 $ 8,336
Changes in proportion 11,619 20,172 - 21,816 8,152 48,869
Changes in assumptions 19,545 48,506 7,850 19,482 60,316 149,692
Net difference between projected and actual
earnings on OPEB plan investments - 84,616 - 33,986 - 261,130
Employer contributions subsequent to the
measurement date 36,041 - 13,463 - 106,394 -
Total $ 107,639 $ 155,995 $ 37,553 $ 76,369 $ 299,644 $ 468,027
Primary Government (Nonprofessional) Component Unit School Board Component Unit School Board
(Professional)
$36,041, $13,463, and $106,394 reported as deferred outflows of resources related to the GLI OPEB resulting from the County’s, Component Unit School Board (Nonprofessional), and Component Unit School Board (Professional), respectively, contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB expense in future reporting periods as follows:
Component Unit Component Unit Primary School Board School Board
Year Ended June 30 Government (Nonprofessional) (Professional)
2023 $ (18,544) $ (13,432) $ (69,507)
2024 (14,609) (11,357) (54,400)
2025 (17,084) (9,960) (49,589)
2026 (28,255) (13,512) (83,425)
2027 (5,905) (4,018) (17,856)
Thereafter - - -
Actuarial Assumptions
The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021. The assumptions include several employer groups. Salary increases and mortality rates included herein are for relevant employer groups.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI Plan OPEB (Continued)
‘At June 30, 2022, the employer reported deferred outflows of resources and deferred inflows of resources related to the GLI OPEB from the following sources:
Primary Govern ‘Gonprofssional (Presson)
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$36,041, $13,463, and $106,394 reported as deferred outflows of resources related to the GLI OPEB resulting from the County’s, Component Unit School Board (Nonprofessional), and Component Unit School Board (Professional), respectively, contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI ‘OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the GL! OPEB will be recognized in the GLI OPEB expense in future reporting periods as follows:
Component Unit ‘Component Unit Primary School Board ‘School Board Year Ended June 30 Government _(Nonprofessional) (Professional) 2023 $ (18,544) $ (13,432) $ (69,507) 2024 (14,609) (11,357) (54,400) 2025 (17,084) (9,960) (49,589) 2026 (28,255) (13,512) (83,425) 2027 (5,905) (4,018) (17,856)
Thereafter : - -
Actuarial Assumptions
The total GL! OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021. The assumptions include several employer groups. Salary increases and mortality rates included herein are for relevant employer groups.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Information for other groups can be referenced in the VRS Annual Report.
Inflation 2.50%
Salary increases, including inflation: Teachers 3.50%-5.95% Locality - General employees 3.50%-5.35% Locality - Hazardous Duty employees 3.50%-4.75%
Investment rate of return 6.75%, net of investment expenses, including inflation
Mortality Rates – Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
The remainder of this page is left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued) Information for other groups can be referenced in the VRS Annual Report. Inflation 2.50%
Salary increases, including inflation:
Teachers 3.50%-5.95% Locality - General employees 3.50%-5.35% Locality - Hazardous Duty employees 3.50%-4.75% Investment rate of return 6.75%, net of investment expenses,
including inflation
Mortality Rates - Teachers
Pre-Retirement: Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement: Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement: Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors: Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
The remainder of this page is left blank intentionally.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
Mortality Rates – Non-Largest Ten Locality Employers – General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; males set forward 2 years; 105% of rates for females set forward 3 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 95% of rates for males set forward 2 years; 95% of rates for females set forward 1 year
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110% of rates for males set forward 3 years; 110% of rates for females set forward 2 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) {future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates [Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
[Withdrawal Rates [Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
salary Scale No change
Discount Rate No change
Mortality Rates - Non-Largest Ten Locality Employers - General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; males set forward 2 years; 105% of rates for females set forward 3 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 95% of rates for males set forward 2 years; 95% of rates for females set forward 1 year
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110% of rates for males set forward 3 years; 110% of rates for females set forward 2 years
Beneficiaries and Survivors Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change Discount Rate No change
Mortality Rates – Non-Largest Ten Locality Employers – Hazardous Duty Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- [Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates [Adjusted rates to better fit experience for Plan 1; set,
separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates [Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality Rates - Non-Largest Ten Locality Employers - Hazardous Duty Employees
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience
study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP- 2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change Discount Rate No change
NET GLI OPEB Liability
The net OPEB liability (NOL) for the GLI Plan represents the plan’s total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30, 2021, NOL amounts for the GLI Plan is as follows (amounts expressed in thousands):
GLI OPEB Plan
Total GLI OPEB Liability $ 3,577,346
Plan Fiduciary Net Position 2,413,074
GLI Net OPEB Liability (Asset) $ 1,164,272
Plan Fiduciary Net Position as a Percentage of the Total GLI OPEB Liability 67.45%
The total GLI OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net GLI OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Actuarial Assumptions (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- [Update to Pub-2010 public sector mortality tables. Increased
retirement healthy, and disabled) disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP- 2020
Retirement Rates [Adjusted rates to better fit experience and changed final retirement age from 65 to 70
(Withdrawal Rates [Decreased rates and changed from rates based on age and
service to rates based on service only to better fit experience land to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change salary Scale No change Line of Duty Disability No change Discount Rate No change
NET GLI OPEB Liability
The net OPEB liability (NOL) for the GLI Plan represents the plan’s total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30, 2021, NOL amounts for the GLI Plan is as follows (amounts expressed in thousands):
GLI OPEB Plan Total GLI OPEB Liability $ 3,577,346 Plan Fiduciary Net Position 2,413,074 GLI Net OPEB Liability (Asset) $ 1,164,272 Plan Fiduciary Net Position as a Percentage of the Total GLI OPEB Liability 67.45%
The total GLI OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net GLI OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System’s investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of System’s investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted
Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50% Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75%, which was roughly at the 40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
‘The long-term expected rate of return on the System’s investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of System’s ‘investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected Asset Class (Strategy) Allocation _Rate of Return _Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21% Total 100.00% 4.89% Inflation 2.50% Expected arithmetic nominal return* 7.39%
“The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation
of 2.50%. On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75%, which was roughly at the 40"
percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 10―Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by the entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021 on, employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the GLI OPEB’s fiduciary net position was projected to be available to make all projected future benefit payments of eligible employees. Therefore the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total GLI OPEB liability.
Sensitivity of the Employer’s Proportionate Share of the Net GLI OPEB Liability to Changes in the Discount Rate
The following presents the employer’s proportionate share of the net GLI OPEB liability using the discount rate of 6.75%, as well as what the employer’s proportionate share of the net GLI OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
Proportionate share of the Group Life Insurance Plan Net OPEB Liability:
County 517,967$ 354,521$ 222,530$
Component Unit School Board (Nonprofessional) 208,037$ 142,390$ 89,377$
Component Unit School Board (Professional) 1,598,469$ 1,094,065$ 686,736$
Rate
Group Life Insurance Program Fiduciary Net Position
Detailed information about the Group Life Insurance Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 10—Group Life Insurance (GLI) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by the entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021 on, employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the GL! OPEB’s fiduciary net position was projected to be available to make all projected future benefit payments of eligi employees. Therefore the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total GLI OPEB liability.
Sensitivity of the Employer’s Proportionate Share of the Net GLI OPEB Liability to Changes in the Discount Rate
The following presents the employer’s proportionate share of the net GLI OPEB liability using the discount rate of 6.75%, as well as what the employer’s proportionate share of the net GLI OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount __1% Increase (5.75%) (6.75%) (7.75%)
Proportionate share of the Group Life
Insurance Plan Net OPEB Liability: County s 517,967 $ 354,521 $ 222,530 ‘Component Unit School Board
(Nonprofessional) s 208,037 $ 142,390 $ 89,377 ‘Component Unit School Board
(Professional) S 1,598,469 $ 1,094,065 $ 686,736
Group Life Insurance Program Fiduciary Net Position
Detailed information about the Group Life Insurance Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http: //www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan):
Plan Description
The Political Subdivision Health Insurance Credit (HIC) Plan was established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full-time, salaried permanent employees of participating political subdivisions are automatically covered by the VRS Political Subdivision HIC Plan upon employment. This is an agent multiple-employer plan administered by the Virginia Retirement System (the System), along with pension and other OPEB plans, for public employer groups in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit for each month they are employed and for which their employer pays contributions to VRS. The HIC is a tax-free reimbursement in an amount set by the General Assembly for each year of service credit against qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death.
The specific information about the Political Subdivision HIC Plan OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
The Political Subdivision Retiree HIC Plan was established July 1, 1993 for retired political subdivision employees of employers who elect the benefit and retire with at least 15 years of service credit. Eligible employees include full- time permanent salaried employees of the participating political subdivision who are covered under the VRS pension plan. These employees are enrolled automatically upon employment.
Benefit Amounts
The Political Subdivision Retiree HIC Plan is a defined benefit plan that provides a credit toward the cost of health insurance coverage for retired political subdivision employees of participating employers. For employees who retire, the monthly benefit is $1.50 per year of service per month with a maximum benefit of $45.00 per month. For employees who retire on disability or go on long-term disability under the Virginia Local Disability Program (VLDP), the monthly benefit is $45.00 per month.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. There is no HIC for premiums paid and qualified under LODA; however, the employee may receive the credit for premiums paid for other qualified health plans. Employees who retire after being on long-term disability under VLDP must have at least 15 years of service credit to qualify for the HIC as a retiree.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan):
Plan Description
The Political Subdivision Health Insurance Credit (HIC) Plan was established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full-time, salaried permanent employees of participating political subdivisions are automatically covered by the VRS Political Subdivision HIC Plan upon employment. This is an agent multiple-employer plan administered by the Virginia Retirement System (the System), along with pension and other OPEB plans, for public ‘employer groups in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit for each month they are employed and for which their employer pays contributions to VRS. The HIC is a tax-free reimbursement in an amount set by the General Assembly for each year of service credit against qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death.
The specific information about the Political Subdivision HIC Plan OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
The Political Subdivision Retiree HIC Plan was established July 1, 1993 for retired political subdivision employees of ‘employers who elect the benefit and retire with at least 15 years of service credit. Eligible employees include full- time permanent salaried employees of the participating political subdivision who are covered under the VRS pension plan. These employees are enrolled automatically upon employment.
Benefit Amounts
The Political Subdivision Retiree HIC Plan is a defined benefit plan that provides a credit toward the cost of health insurance coverage for retired political subdivision employees of participating employers. For employees who retire, the monthly benefit is $1.50 per year of service per month with a maximum benefit of $45.00 per month. For employees who retire on disability or go on long-term disability under the Virginia Local Disability Program (VLOP), the monthly benefit is $45.00 per month.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. There is no HIC for premiums paid and qualified under LODA; however, the employee may receive the credit for premiums paid for other qualified health plans. Employees who retire after being on long-term disability under VLDP must have at least 15 years of service credit to qualify for the HIC as a retiree.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Employees Covered by Benefit Terms
As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms of the HIC OPEB plan:
Component Unit Primary School Board
Government (Nonprofessional)
Inactive members or their beneficiaries currently receiving benefits 16 68
Inactive members: Vested inactive members 1 1
Total inactive members 17 69
Active members 28 101
Total covered employees 45 170
Contributions
The contribution requirements for active employees is governed by §51.1-1402(E) of the Code of Virginia, as
amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia
General Assembly. The County’s contractually required employer contribution rate for the year ended June 30,
2022 was 0.26% of covered employee compensation. The Component Unit School Board’s (nonprofessional)
contractually required employer contribution rate for the year ended June 30, 2022 was 3.53% of covered employee
compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30,
2020. The actuarially determined rate was expected to finance the costs of benefits earned by employees during
the year, with an additional amount to finance any unfunded accrued liability. Contributions from the County to
the HIC Plan were $3,410 and $3,097 for the years ended June 30, 2022 and June 30, 2021, respectively.
Contributions from the Component Unit School Board (nonprofessional) to the Health Insurance Credit Plan were
$87,833 and $88,957 for the years ended June 30, 2022 and June 30, 2021, respectively.
During the 2020 session, House Bill 1513 was enacted. This bill required the addition of Health Insurance Credit benefits for non-teacher employees effective July 1, 2021. While benefit payments became effective July 1, 2021, employers were required to pre-fund the benefits beginning July 1, 2020. The bill impacted 95 employers and resulted in approximately $2.5 million of additional employer contributions in FY2021.
Net HIC OPEB Liability
The County and Component Unit School Board’s (nonprofessional) net HIC OPEB liability was measured as of June 30, 2021. The total HIC OPEB liability was determined by an actuarial valuation performed as of June 30, 2020, using updated actuarial assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Employees Covered by Benefit Terms
As of the June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms of the HIC OPEB plan:
Component Unit Primary School Board Government (Nonprofessional)
Inactive members or their beneficiaries currently receiving benefits 16 68
Inactive members: Vested inactive members
Total inactive members 7 69 Active members 28 101 Total covered employees 45 170
Contributions
The contribution requirements for active employees is governed by $51.1-1402(E) of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. The County’s contractually required employer contribution rate for the year ended June 30, 2022 was 0.26% of covered employee compensation. The Component Unit School Board’s (nonprofessional) contractually required employer contribution rate for the year ended June 30, 2022 was 3.53% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2020. The actuarially determined rate was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions from the County to the HIC Plan were $3,410 and $3,097 for the years ended June 30, 2022 and June 30, 2021, respectively. Contributions from the Component Unit School Board (nonprofessional) to the Health Insurance Credit Plan were $87,833 and $88,957 for the years ended June 30, 2022 and June 30, 2021, respectively.
During the 2020 session, House Bill 1513 was enacted. This bill required the addition of Health Insurance Credit benefits for non-teacher employees effective July 1, 2021. While benefit payments became effective July 1, 2021, ‘employers were required to pre-fund the benefits beginning July 1, 2020. The bill impacted 95 employers and resulted in approximately $2.5 million of additional employer contributions in FY2021.
‘Net HIC OPEB Liability The County and Component Unit School Board’s (nonprofessional) net HIC OPEB liability was measured as of June 30, 2021. The total HIC OPEB liability was determined by an actuarial valuation performed as of June 30, 2020,
using updated actuarial assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions
The total HIC OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation: Locality - General employees 3.50%-5.35% Locality - Hazardous Duty employees 3.50%-4.75%
Investment rate of return 6.75%, net of investment expenses, including inflation
Mortality Rates – Non-Largest Ten Locality Employers – General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions
The total HIC OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation: Locality - General employees 3.50%-5.35% Locality - Hazardous Duty employees 3.50%-4.75%
Investment rate of return 6.75%, net of investment expenses, including inflation
Mortality Rates - Non-Largest Ten Locality Employers - General Employees
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set. back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change Salary Scale No change Line of Duty Disability No change Discount Rate No change
Mortality Rates – Non-Largest Ten Locality Employers – Hazardous Duty Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- [Update to Pub-2010 public sector mortality tables. For future
retirement healthy, and disabled) mortality improvements, replace load with a modified Mortality] Improvement Scale MP-2020 Retirement Rates [Adjusted rates to better fit experience for Plan 1; set separate
rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
[Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Withdrawal Rates
Disability Rates No change Salary Scale No change Line of Duty Disability No change Discount Rate No change
Mortality Rates - Non-Largest Ten Locality Employers - Hazardous Duty Employees
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates
Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change Salary Scale No change Line of Duty Disability No change Discount Rate No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- [Update to Pub-2010 public sector mortality tables. retirement healthy, and disabled) Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates [Adjusted rates to better fit experience and changed final retirement age from 65 to 70
[Decreased rates and changed from rates based on age and service to rates based on service only to better fit Jexperience and to be more consistent with Locals Top 10 Hazardous Duty
Withdrawal Rates
Disability Rates No change Salary Scale No change Line of Duty Disability No change Discount Rate No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on the System’s investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of System’s investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average
Target Long-Term Long-Term Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50% Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75% which was roughly at the 40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
‘The long-term expected rate of return on the System’s investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of System’s ‘investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected Asset Class (Strategy) Allocation _Rate of Return _Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00%
Inflation Expected arithmetic nominal return*
“The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75% which was roughly at the 40" percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total HIC OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Through the fiscal year ended June 30, 2021, the rate contributed by the entity for the HIC OPEB was 100% of the actuarially determined contribution rate. From July 1, 2021 on, employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the HIC OPEB’s fiduciary net position was projected to be available to make all projected future benefit payments of eligible employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total HIC OPEB liability.
Changes in Net HIC OPEB Liability – Primary Government
Total Plan Net HIC OPEB Fiduciary HIC OPEB Liability Net Position Liability (Asset)
(a) (b) (a) - (b)
Balances at June 30, 2020 $ 102,337 $ 79,118 $ 23,219
Changes for the year:
Service cost $ 2,042 $ - $ 2,042
Interest 6,453 - 6,453
Differences between expected
and actual experience 3,616 - 3,616
Assumption changes 543 - 543
Contributions - employer - 2,966 (2,966)
Net investment income - 19,218 (19,218)
Benefit payments (13,469) (13,469) -
Administrative expenses - (200) 200
Net changes $ (815) $ 8,515 $ (9,330)
Balances at June 30, 2021 $ 101,522 $ 87,633 $ 13,889
Increase (Decrease)
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total HIC OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Through the fiscal year ended June 30, 2021, the rate contributed by the entity for the HIC OPEB was 100% of the actuarially determined contribution rate. From July 1, 2021 on, employers are ‘assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the HIC OPEB’s fiduciary net position was projected to be available to make all projected future benefit payments of eligible employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total HIC OPEB liability.
Changes in Net HIC OPEB Liability - Primary Government
Increase (Decrease)
Total Plan Net HIC OPEB Fiduciary HIC OPEB Liabil Net Position Liability (Asset) fa) (b) (a) - (b) Balances at June 30, 2020 $ 102,337 _$ 79,118 $ 23,219 Changes for the year: Service cost s 2,042 $ 7 S$ 2,042 Interest 6,453 - 6,453 Differences between expected and actual experience 3,616 - 3,616 Assumption changes 543 - 543 Contributions - employer - 2,966 (2,966) Net investment income - 19,218 (19,218) Benefit payments. (13,469) (13,469) - Administrative expenses : (200) 200 Net changes $ (815) $ 8,515 $ (9,330) Balances at June 30, 2021 s 101,522 $ 87,633 $ 13,889
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Changes in Net HIC OPEB Liability – Component Unit School Board (Nonprofessional)
Total Plan Net HIC OPEB Fiduciary HIC OPEB Liability Net Position Liability (Asset)
(a) (b) (a) - (b)
Balances at June 30, 2020 $ 663,550 $ (43,057) $ 706,607
Changes for the year:
Service cost $ 3,775 $ - $ 3,775
Interest 43,658 - 43,658
Differences between expected
and actual experience (270,374) - (270,374)
Assumption changes 5,340 - 5,340
Contributions - employer - 88,957 (88,957)
Net investment income - 213 (213)
Benefit payments (33,506) (33,506) -
Administrative expenses - (49) 49
Net changes $ (251,107) $ 55,615 $ (306,722)
Balances at June 30, 2021 $ 412,443 $ 12,558 $ 399,885
Sensitivity of the County’s and Component Unit School Board’s (Nonprofessional) HIC Net OPEB Liability to Changes in the Discount Rate
The following presents the County’s and Component Unit School Board’s (Nonprofessional) HIC Plan net HIC OPEB liability using the discount rate of 6.75%, as well as what the County’s and Component Unit School Board’s (nonprofessional) net HIC OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
County’s Net HIC OPEB Liability $ 23,394 $ 13,889 $ 5,686
Component Unit School Board’s (Nonprofessional) Net HIC OPEB Liability $ 437,877 $ 399,885 $ 367,248
Rate
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Changes in Net HIC OPEB Liability - Component Unit School Board (Nonprofessional)
Total Plan Net HIC OPEB Fiduciary HIC OPEB Liability Net Position Liability (Asset) @) (b) (a) -(b) Balances at June 30, 2020 $ 663,550 $ (43,057) § 706,607 Changes for the year: Service cost $ 3,775 § - 8 3,775 Interest 43,658 - 43,658 Differences between expected and actual experience (270,374) - (270,374) ‘Assumption changes 5,340 - 5,340 Contributions - employer - 88,957 (88,957) Net investment income - 213 (213) Benefit payments (33,506) (33,506) : Administrative expenses : (49) 49 Net changes $ (251,107) $ 55,615 § (806,722) Balances at June 30, 2021 $ 412,443 $ 12,558_§ 399,885
Sensitivity of the County’s and Component Unit School Board’s (Nonprofessional) HIC Net OPEB Liability to
Changes in the Discount Rate
The following presents the County’s and Component Unit School Board’s (Nonprofessional) HIC Plan net HIC OPEB liability using the discount rate of 6.75%, as well as what the County’s and Component Unit School Board’s (nonprofessional) net HIC OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount 1% Increase 6.75%) (6.75%) (7.75%) County’s Net HIC OPEB Liability $ 23,394 $ 13,889 $ 5,686 Component Unit School Board’s (Nonprofessional) Net HIC OPEB Liability $ 437,877 $ 399,885 $ 367,248,
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 11―Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
HIC Plan OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to HIC Plan OPEB
For the year ended June 30, 2022, the County and Component Unit School Board (Nonprofessional) recognized Health Insurance Credit Plan OPEB expense of $1,009 and $3,371, respectively. At June 30, 2022, the County and Component Unit School Board (Nonprofessional) reported deferred outflows of resources and deferred inflows of resources related to the County’s and Component Unit School Board’s (nonprofessional) HIC Plan from the following sources:
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Differences between expected and actual experience $ 3,812 $ 2,760 $ 10,073 $ 205,685
Net difference between projected and actual earnings on HIC OPEB plan investments - 8,855 - 4,321
Change in assumptions 1,329 106 56,760 -
Employer contributions subsequent to the measurement date 3,410 - 87,833 -
Total $ 8,551 $ 11,721 $ 154,666 $ 210,006
Primary Government (Nonprofessional) Component Unit School Board
$3,410 and $87,833 reported as deferred outflows of resources related to the HIC OPEB resulting from the County and Component Unit School Board (Nonprofessional) contributions subsequent to the measurement date will be recognized as a reduction of the Net HIC OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIC OPEB will be recognized in the HIC OPEB expense in future reporting periods as follows:
Component Unit
Primary School Board Year Ended June 30 Government (Nonprofessional)
2023 $ (1,772) $ (37,228)
2024 (970) (39,243)
2025 (1,570) (55,646)
2026 (2,268) (11,056)
Health Insurance Credit Program Plan Data
Information about the VRS Political Subdivision Health Insurance Credit Plan is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 11—Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
HIC Plan OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to HIC Plan OPEB
For the year ended June 30, 2022, the County and Component Unit School Board (Nonprofessional) recognized Health Insurance Credit Plan OPEB expense of $1,009 and $3,371, respectively. At June 30, 2022, the County and ‘Component Unit School Board (Nonprofessional) reported deferred outflows of resources and deferred inflows of resources related to the County’s and Component Unit School Board’s (nonprofessional) HIC Plan from the following sources:
Component Unit School Board
Primary Government (Nonprofessional) Deferred Outflows Deferredinflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources Differences between expected and actual experience $ 3,812 $ 2,760 $ 10,073 $ 205,685 Net difference between projected and actual learnings on HIC OPEB plan investments 8,855 : 4301 CChange in assumptions 4,329 106 56,760 Employer contributions subsequent to the ‘measurement date 3,410 : 87,833 Total $ 8,551.5. W721 §. 154,666. § 210,006
$3,410 and $87,833 reported as deferred outflows of resources related to the HIC OPEB resulting from the County ‘and Component Unit School Board (Nonprofessional) contributions subsequent to the measurement date will be recognized as a reduction of the Net HIC OPEB Liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIC OPEB will be recognized in the HIC OPEB expense in future reporting periods as follows:
Component Unit
Primary School Board Year Ended June 30 Government (Nonprofessional) 2023 $ (1,772) § (37,228) 2024 (970) (39,243) 2025 (1,570) (55,646) 2026 (2,268) (11,056)
Health Insurance Credit Program Plan Data
Information about the VRS Political Subdivision Health Insurance Credit Plan is available in the separately issued ‘VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www. varetire.org/paf/publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan):
Plan Description
The Virginia Retirement System (VRS) Teacher Employee Health Insurance Credit (HIC) Plan was established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full-time, salaried permanent (professional) employees of public school divisions are automatically covered by the VRS Teacher Employee HIC Plan. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the System), along with pension and other OPEB plans, for public employer groups in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit for each month they are employed and for which their employer pays contributions to VRS. The HIC is a tax-free reimbursement in an amount set by the General Assembly for each year of service credit against qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death.
The specific information for the Teacher HIC Plan OPEB, including eligibility, coverage, and benefits is described below:
Eligible Employees
The Teacher Employee Retiree HIC Plan was established July 1, 1993 for retired Teacher Employees covered under VRS who retire with at least 15 years of service credit. Eligible employees include full-time permanent (professional) salaried employees of public school divisions covered under VRS. These employees are enrolled automatically upon employment.
Benefit Amounts
The Teacher Employee HIC Plan is a defined benefit plan that provides a credit toward the cost of health insurance coverage for retired teachers. For Teacher and other professional school employees who retire, the monthly benefit is $4.00 per year of service per month with no cap on the benefit amount. For Teacher and other professional school employees who retire on disability or go on long-term disability under the Virginia Local Disability Program (VLDP), the monthly benefit is either: $4.00 per month, multiplied by twice the amount of service credit, or $4.00 per month, multiplied by the amount of service earned had the employee been active until age 60, whichever is lower.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. Employees who retire after being on long- term disability under VLDP must have at least 15 years of service credit to qualify for the HIC as a retiree.
Contributions
The contribution requirements for active employees is governed by §51.1-1401(E) of the Code of Virginia, as amended, but may be impacted as a result of funding provided to school divisions by the Virginia General Assembly. Each school division’s contractually required employer contribution rate for the year ended June 30, 2022 was 1.21% of covered employee compensation for employees in the VRS Teacher Employee HIC Plan. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions from the school division to the VRS Teacher Employee HIC Program were $238,340 and $234,519 for the years ended June 30, 2022 and June 30, 2021, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan):
Plan Description
The Virginia Retirement System (VRS) Teacher Employee Health Insurance Credit (HIC) Plan was established Pursuant to $51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full-time, salaried permanent (professional) employees of public school divisions are automatically covered by the VRS Teacher Employee HIC Plan. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the System), along with pension and other OPEB plans, for public employer groups in the Commonwealth of Virginia. Members earn one month of service credit toward the benefit for each month they are employed and for which their employer pays contributions to VRS. The HIC is a tax-free reimbursement in an amount set by the General Assembly for each year of service credit against qualified health insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree’s death.
The specific information for the Teacher HIC Plan OPEB, including eligibility, coverage, and benefits is described below:
Eligible Employees
The Teacher Employee Retiree HIC Plan was established July 1, 1993 for retired Teacher Employees covered under VRS who retire with at least 15 years of service credit. Eligible employees include full-time permanent (professional) salaried employees of public school divisions covered under VRS. These employees are enrolled automatically upon employment.
Benefit Amounts
The Teacher Employee HIC Plan is a defined benefit plan that provides a credit toward the cost of health insurance coverage for retired teachers. For Teacher and other professional school employees who retire, the monthly benefit is $4.00 per year of service per month with no cap on the benefit amount. For Teacher and other professional school employees who retire on disability or go on long-term disability under the Virginia Local Disability Program (VLDP), the monthly benefit is either: $4.00 per month, multiplied by twice the amount of service credit, or $4.00 per month, multiplied by the amount of service earned had the employee been active until age 60, whichever is lower.
HIC Plan Notes
The monthly HIC benefit cannot exceed the individual premium amount. Employees who retire after being on long- term disability under VLDP must have at least 15 years of service credit to qualify for the HIC as a retiree.
Contributions
The contribution requirements for active employees is governed by $51.1-1401(E) of the Code of Virginia, as amended, but may be impacted as a result of funding provided to school divisions by the Virginia General Assembly. Each school division’s contractually required employer contribution rate for the year ended June 30, 2022 was 1.21% of covered employee compensation for employees in the VRS Teacher Employee HIC Plan. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions from the school division to the VRS Teacher Employee HIC Program were $238,340 and $234,519 for the years ended June 30, 2022 and June 30, 2021, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Teacher Employee HIC OPEB Liabilities, Teacher Employee HIC OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC Plan OPEB
At June 30, 2022, the school division reported a liability of $2,812,941 for its proportionate share of the VRS Teacher Employee HIC Net OPEB Liability. The Net VRS Teacher Employee HIC OPEB Liability was measured as of June 30, 2021 and the total VRS Teacher Employee HIC OPEB liability used to calculate the Net VRS Teacher Employee HIC OPEB Liability was determined by an actuarial valuation performed as of June 30, 2020 and rolled forward to the measurement date of June 30, 2021. The school division’s proportion of the Net VRS Teacher Employee HIC OPEB Liability was based on the school division’s actuarially determined employer contributions to the VRS Teacher Employee HIC OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2021, the school division’s proportion of the VRS Teacher Employee HIC was 0.21915% as compared to 0.22330% at June 30, 2020.
For the year ended June 30, 2022, the school division recognized VRS Teacher Employee HIC OPEB expense of $198,930. Since there was a change in proportionate share between measurement dates, a portion of the VRS Teacher Employee HIC Net OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of resources related to the VRS Teacher Employee HIC Plan OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ - $ 49,086
Net difference between projected and actual earnings on Teacher HIC OPEB plan investments - 37,055
Change in assumptions 76,039 11,305
Change in proportion 23,602 129,985
Employer contributions subsequent to the measurement date 238,340 -
Total $ 337,981 $ 227,431
$238,340 reported as deferred outflows of resources related to the Teacher Employee HIC OPEB resulting from the school division’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Teacher Employee HIC OPEB Liability in the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Teacher Employee HIC OPEB Liabilities, Teacher Employee HIC OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC Plan OPEB
‘At June 30, 2022, the school division reported a liability of $2,812,941 for its proportionate share of the VRS Teacher Employee HIC Net OPEB Liability. The Net VRS Teacher Employee HIC OPEB Liability was measured as of June 30, 2021 and the total VRS Teacher Employee HIC OPEB liability used to calculate the Net VRS Teacher Employee HIC OPEB Liability was determined by an actuarial valuation performed as of June 30, 2020 and rolled forward to the measurement date of June 30, 2021. The school division’s proportion of the Net VRS Teacher Employee HIC OPEB Liability was based on the school division’s actuarially determined employer contributions to the VRS Teacher Employee HIC OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2021, the school division’s proportion of the VRS Teacher Employee HIC was 0.21915% as compared to 0.22330% at June 30, 2020.
For the year ended June 30, 2022, the school division recognized VRS Teacher Employee HIC OPEB expense of $198,930. Since there was a change in proportionate share between measurement dates, a portion of the VRS Teacher Employee HIC Net OPEB expense was related to deferred amounts from changes in proportion.
‘At June 30, 2022, the school division reported deferred outflows of resources and deferred inflows of resources related to the VRS Teacher Employee HIC Plan OPEB from the following sources:
Deferred Outflows _Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ - $ 49,086 Net difference between projected and actual
earnings on Teacher HIC OPEB plan investments : 37,055 Change in assumptions 76,039 11,305, Change in proportion 23,602 129,985 Employer contributions subsequent to the
measurement date 238,340 :
Total
$238,340 reported as deferred outflows of resources related to the Teacher Employee HIC OPEB resulting from the school division’s contributions subsequent to the measurement date will be recognized as a reduction of the Net Teacher Employee HIC OPEB Liability in the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Teacher Employee HIC OPEB Liabilities, Teacher Employee HIC OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Teacher Employee HIC OPEB will be recognized in the Teacher Employee HIC OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ (33,603)
2024 (34,024)
2025 (28,278)
2026 (19,931)
2027 (5,697)
Thereafter (6,257)
Actuarial Assumptions
The total Teacher Employee HIC OPEB liability for the VRS Teacher Employee HIC Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50%
Salary increases, including inflation 3.50%-5.95%
Investment rate of return 6.75%, net of investment expenses, including inflation
Mortality Rates – Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Teacher Employee HIC OPEB Liabilities, Teacher Employee HIC OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Teacher Employee HIC OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Teacher Employee HIC OPEB will be recognized in the Teacher Employee HIC OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ (33,603) 2024 (34,024) 2025 (28,278) 2026 (19,931) 2027 (5,697) Thereafter (6,257)
Actuarial Assumptions
The total Teacher Employee HIC OPEB liability for the VRS Teacher Employee HIC Plan was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.
Inflation 2.50% Salary increases, including inflation 3.50%-5.95% Investment rate of return 6.75%, net of investment expenses,
including inflation
Mortality Rates - Teachers
Pre-Retirement: Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement: Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1 year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males and females
Beneficiaries and Survivors: Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change Salary Scale No change Discount Rate No change
Net Teacher Employee HIC OPEB Liability
The net OPEB liability (NOL) for the Teacher Employee HIC Plan represents the plan’s total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of June 30, 2021, NOL amounts for the VRS Teacher Employee HIC Plan is as follows (amounts expressed in thousands):
Teacher Employee HIC
OPEB Plan
Total Teacher Employee HIC OPEB Liability $ 1,477,874
Plan Fiduciary Net Position 194,305
Teacher Employee Net HIC OPEB Liability (Asset) $ 1,283,569
Plan Fiduciary Net Position as a Percentage of the Total Teacher Employee HIC OPEB Liability 13.15%
The total Teacher Employee HIC OPEB liability is calculated by the System’s actuary, and the plan’s fiduciary net position is reported in the System’s financial statements. The net Teacher Employee HIC OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Actuarial Assumptions: (Continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post- [Update to Pub-2010 public sector mortality tables. For
retirement healthy, and disabled) future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates [Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
Net Teacher Employee HIC OPEB Liability The net OPEB liability (NOL) for the Teacher Employee HIC Plan represents the plan’s total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of June 30, 2021, NOL amounts for the VRS Teacher Employee HIC Plan is as follows (amounts expressed in thousands):
Teacher Employee HIC OPEB Plan Total Teacher Employee HIC OPEB Liability $ 1,477,874 Plan Fiduciary Net Position 194,305 Teacher Employee Net HIC OPEB Liability (Asset) $ 1,283,569
Plan Fiduciary Net Position as a Percentage of the Total Teacher Employee HIC OPEB Liability 13.15%
The total Teacher Employee HIC OPEB liability is calculated by the System’s actuary, and the plan’s fiduciary net position is reported in the System’s financial statements. The net Teacher Employee HIC OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on the VRS System investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of VRS System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted
Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected
Asset Class (Strategy) Allocation Rate of Return Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 4.49% 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21%
Total 100.00% 4.89%
Inflation 2.50% Expected arithmetic nominal return* 7.39%
*The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
*On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75% which was roughly at the 40th percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on the VRS System investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of ‘VRS System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:
Weighted Long-Term Arithmetic Average Target Long-Term Long-Term Asset Expected Expected Asset Class (Strategy) Allocation _Rate of Return _Rate of Return*
Public Equity 34.00% 5.00% 1.70% Fixed Income 15.00% 0.57% 0.09% Credit Strategies 14.00% 449%, 0.63% Real Assets 14.00% 4.76% 0.67% Private Equity 14.00% 9.94% 1.39% MAPS - Multi-Asset Public Strategies 6.00% 3.29% 0.20% PIP - Private Investment Partnership 3.00% 6.84% 0.21% Total 100.00% 4.89% Inflation 2.50% Expected arithmetic nominal return* 7.39%
“The above allocation provides a one-year return of 7.39%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the System, stochastic projections are employed to model future returns under various economic conditions. These results provide a range of returns over various time periods that ultimately provide a median return of 6.94%, including expected inflation of 2.50%.
“On October 10, 2019, the VRS Board elected a long-term rate of return of 6.75% which was roughly at the 40 percentile of expected long-term results of the VRS fund asset allocation at that time, providing a median return of 7.11%, including expected inflation of 2.50%.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 12―Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total Teacher Employee HIC OPEB was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by each school division for the VRS Teacher Employee HIC Plan will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021 on, all agencies are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the Teacher Employee HIC OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total Teacher Employee HIC OPEB liability.
Sensitivity of the School Division’s Proportionate Share of the Teacher Employee HIC Net OPEB Liability to Changes in the Discount Rate
The following presents the school division’s proportionate share of the VRS Teacher Employee Health Insurance Credit Plan net HIC OPEB liability using the discount rate of 6.75%, as well as what the school division’s proportionate share of the net HIC OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%)
School division’s proportionate share of the VRS Teacher Employee HIC OPEB Plan Net HIC OPEB Liability $ 3,166,592 $ 2,812,941 $ 2,513,668
Rate
Teacher Employee HIC OPEB Fiduciary Net Position
Detailed information about the VRS Teacher Employee HIC Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual- report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 12—Teacher Employee Health Insurance Credit (HIC) Plan (OPEB Plan): (Continued)
Discount Rate
The discount rate used to measure the total Teacher Employee HIC OPEB was 6.75%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by each school division for the VRS Teacher Employee HIC Plan will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly, which was 100% of the actuarially determined contribution rate. From July 1, 2021 on, all agencies are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the Teacher Employee HIC OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total Teacher Employee HIC OPEB liability.
Sensitivity of the School Division’s Proportionate Share of the Teacher Employee HIC Net OPEB Liability to Changes in the Discount Rate
The following presents the school division’s proportionate share of the VRS Teacher Employee Health Insurance Credit Plan net HIC OPEB liability using the discount rate of 6.75%, as well as what the school division’s proportionate share of the net HIC OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
Rate 1% Decrease Current Discount 1% Increase (5.75%) (6.75%) (7.75%) School division’s proportionate share of the VRS Teacher Employee HIC OPEB Plan Net HIC OPEB Liability s 3,166,592 $ 2,812,941 $ 2,513,668
Teacher Employee HIC OPEB Fiduciary Net Position Detailed information about the VRS Teacher Employee HIC Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual
Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual- report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program:
Plan Description
The Virginia Retirement System (VRS) Line of Duty Act Program (LODA) was established pursuant to §9.1-400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. The LODA Program provides death and health insurance benefits to eligible state employees and local government employees, including volunteers, who die or become disabled as a result of the performance of their duties as a public safety officer. In addition, health insurance benefits are provided to eligible survivors and family members. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the System). Participating employers made contributions to the program beginning in FY 2012. The employer contributions are determined by the System’s actuary using anticipated program costs and the number of covered individuals associated with all participating employers.
The specific information for LODA OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
All paid employees and volunteers in hazardous duty positions in Virginia localities as well as hazardous duty employees who are covered under the Virginia Retirement System (VRS), the State Police Officers’ Retirement System (SPORS), or the Virginia Law Officers’ Retirement System (VaLORS) are automatically covered by the LODA Program. As required by statute, the Virginia Retirement System (the System) is responsible for managing the assets of the program.
Benefit Amounts
The LODA program death benefit is a one-time payment made to the beneficiary or beneficiaries of a covered individual. Amounts vary as follows: $100,000 when a death occurs as the direct or proximate result of performing duty as of January 1, 2006, or after; $25,000 when the cause of death is attributed to one of the applicable presumptions and occurred earlier than five years after the retirement date; or an additional $20,000 benefit is payable when certain members of the National Guard and U.S. military reserves are killed in action in any armed conflict on or after October 7, 2001.
The LODA program also provides health insurance benefits. The health insurance benefits are managed through the Virginia Department of Human Resource Management (DHRM). The health benefits are modeled after the State Employee Health Benefits Program plans and provide consistent, premium-free continued health plan coverage for LODA-eligible disabled individuals, survivors and family members.
Contributions
The contribution requirements for the LODA Program are governed by §9.1-400.1 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to state agencies by the Virginia General Assembly. Each employer’s contractually required employer contribution rate for the LODA Program for the year ended June 30, 2022 was $722.55 per covered full-time-equivalent employee. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019 and represents the pay-as-you-go funding rate and not the full actuarial cost of the benefits under the program. The actuarially determined pay-as-you-go rate was expected to finance the costs and related expenses of benefits payable during the year. Contributions to the LODA Program from the entity were $64,669 and $64,020 for the years ended June 30, 2022 and June 30, 2021, respectively.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: Plan Description
The Virginia Retirement System (VRS) Line of Duty Act Program (LODA) was established pursuant to §9.1-400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. The LODA Program provides death and health insurance benefits to eligible state employees and local government employees, including volunteers, who die or become disabled as a result of the performance of their duties as a public safety officer. In addition, health insurance benefits are provided to eligible survivors and family members. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the System). Participating employers made contributions to the program beginning in FY 2012. The employer contributions are determined by the System’s actuary using anticipated program costs and the number of covered individuals associated with all participating employers.
The specific information for LODA OPEB, including eligibility, coverage and benefits is described below:
Eligible Employees
All paid employees and volunteers in hazardous duty positions in Virginia localities as well as hazardous duty employees who are covered under the Virginia Retirement System (VRS), the State Police Officers’ Retirement ‘System (SPORS), or the Virginia Law Officers’ Retirement System (VaLORS) are automatically covered by the LODA Program. As required by statute, the Virginia Retirement System (the System) is responsible for managing the assets of the program.
Benefit Amounts
The LODA program death benefit is a one-time payment made to the beneficiary or beneficiaries of a covered individual. Amounts vary as follows: $100,000 when a death occurs as the direct or proximate result of performing duty as of January 1, 2006, or after; $25,000 when the cause of death is attributed to one of the applicable presumptions and occurred earlier than five years after the retirement date; or an additional $20,000 benefit is payable when certain members of the National Guard and U.S. military reserves are killed in action in any armed conflict on or after October 7, 2001.
The LODA program also provides health insurance benefits. The health insurance benefits are managed through the Virginia Department of Human Resource Management (DHRM). The health benefits are modeled after the State Employee Health Benefits Program plans and provide consistent, premium-free continued health plan coverage for LODA-eligible disabled individuals, survivors and family members.
Contributions
The contribution requirements for the LODA Program are governed by §9.1-400.1 of the Code of Virginia, as ‘amended, but may be impacted as a result of funding provided to state agencies by the Virginia General Assembly. Each employer’s contractually required employer contribution rate for the LODA Program for the year ended June 30, 2022 was $722.55 per covered full-time-equivalent employee. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2019 and represents the pay-as-you-go funding rate and not the full actuarial cost of the benefits under the program. The actuarially determined pay-as-you-go rate was expected to finance the costs and related expenses of benefits payable during the year. Contributions to the LODA Program from the entity were $64,669 and $64,020 for the years ended June 30, 2022 and June 30, 2021, respectively.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program: (Continued)
LODA OPEB Liabilities, LODA OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the LODA OPEB
At June 30, 2022, the entity reported a liability of $2,050,611 for its proportionate share of the Net LODA OPEB Liability. The Net LODA OPEB Liability was measured as of June 30, 2021 and the total LODA OPEB liability used to calculate the Net LODA OPEB Liability was determined by an actuarial valuation as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The entity’s proportion of the Net LODA OPEB Liability was based on the entity’s actuarially determined pay-as-you-go employer contributions to the LODA OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially determined pay-as-you-go employer contributions for all participating employers. At June 30, 2021, the entity’s proportion was 0.46500% as compared to 0.50110% at June 30, 2020.
For the year ended June 30, 2022, the entity recognized LODA OPEB expense of $177,969. Since there was a change in proportionate share between measurement dates, a portion of the LODA OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2022, the entity reported deferred outflows of resources and deferred inflows of resources related to the LODA OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ 170,966 $ 310,480
Net difference between projected and actual earnings on LODA OPEB program investments - 11,874
Change in assumptions 567,472 98,090
Change in proportion 84,973 205,450
Employer contributions subsequent to the measurement date 64,669 -
Total $ 888,080 $ 625,894
$64,669 reported as deferred outflows of resources related to the LODA OPEB resulting from the entity’s contributions subsequent to the measurement date will be recognized as a reduction of the Net LODA OPEB Liability in the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: (Continued)
LODA OPEB Liabilities, LODA OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the LODA OPEB
‘At June 30, 2022, the entity reported a liability of $2,050,611 for its proportionate share of the Net LODA OPEB Liability. The Net LODA OPEB Liability was measured as of June 30, 2021 and the total LODA OPEB liability used to calculate the Net LODA OPEB Liability was determined by an actuarial valuation as of June 30, 2020, and rolled forward to the measurement date of June 30, 2021. The entity’s proportion of the Net LODA OPEB Liability was based on the entity’s actuarially determined pay-as-you-go employer contributions to the LODA OPEB plan for the year ended June 30, 2021 relative to the total of the actuarially determined pay-as-you-go employer contributions for all participating employers. At June 30, 2021, the entity’s proportion was 0.46500% as compared to 0.50110% at June 30, 2020.
For the year ended June 30, 2022, the entity recognized LODA OPEB expense of $177,969. Since there was a change in proportionate share between measurement dates, a portion of the LODA OPEB expense was related to deferred amounts from changes in proportion.
‘At June 30, 2022, the entity reported deferred outflows of resources and deferred inflows of resources related to the LODA OPEB from the following sources:
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between expected and actual experience $ 170,966 $ 310,480 Net difference between projected and actual
earnings on LODA OPEB program investments : 11,874 Change in assumptions 567,472 98,090 Change in proportion 84,973, 205,450 Employer contributions subsequent to the
measurement date 64,669 :
Total $ 888,080 $ 625,894
$64,669 reported as deferred outflows of resources related to the LODA OPEB resulting from the entity’s contributions subsequent to the measurement date will be recognized as a reduction of the Net LODA OPEB Liability jin the fiscal year ending June 30, 2023.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program: (Continued)
LODA OPEB Liabilities, LODA OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the LODA OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the LODA OPEB will be recognized in LODA OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ 36,246
2024 36,792
2025 36,953
2026 37,124
2027 39,574
Thereafter 10,828
Actuarial Assumptions
The total LODA OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021. The assumptions include several employer groups. Salary increases and mortality rates included herein are for relevant employer groups. Information for other groups can be referenced in the VRS Annual Report.
Inflation 2.50%
Salary increases, including inflation: Locality employees N/A
Medical cost trend rates assumption: Under age 65 7.00%-4.75% Ages 65 and older 5.375%-4.75%
Year of ultimate trend rate Under age 65 Fiscal year ended 2029 Ages 65 and older Fiscal year ended 2024
Investment rate of return 2.16%, including inflation*
*Since LODA is funded on a current-disbursement basis, the assumed annual rate of return of 2.16% was used since it approximates the risk-free rate of return.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: (Continued)
LODA OPEB Liabilities, LODA OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the LODA OPEB (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the LODA OPEB will be recognized in LODA OPEB expense in future reporting periods as follows:
Year Ended June 30
2023 $ 36,246 2024 36,792 2025 36,953 2026 37,124 2027 39,574 Thereafter 10,828
Actuarial Assumptions
The total LODA OPEB liability was based on an actuarial valuation as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021. The assumptions include several employer groups. Salary increases and mortality rates included herein are for relevant employer groups. Information for other groups can be referenced in the VRS Annual Report.
Inflation 2.50% Salary increases, including inflation: Locality employees N/A
Medical cost trend rates assumption: Under age 65 7.00%-4.75% Ages 65 and older 5.375%-4.75%
Year of ultimate trend rate
Under age 65 Fiscal year ended 2029 ‘Ages 65 and older Fiscal year ended 2024 Investment rate of return 2.16%, including inflation*
*Since LODA is funded on a current-disbursement basis, the assumed annual rate of return of 2.16% was used since it approximates the risk-free rate of return.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program: (Continued)
Actuarial Assumptions (Continued)
Mortality Rates – Non-Largest Ten Locality Employers with Public Safety Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (pre-retirement, post- retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP- 2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: (Continued) Actuarial Assumptions (Continued) Mortality Rates - Non-Largest Ten Locality Employers with Public Safety Employees
Pre-Retirement: Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males; 105% of rates for females set forward 2 years
Post-Retirement: Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for males; 105% of rates for females set forward 3 years
Post-Disablement: Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors: Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for males and females set forward 2 years
Mortality Improvement Scale: Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to the actuarial assumptions as a result of the experience study are as follows:
[Mortality Rates (pre-retirement, post- Update to Pub-2010 public sector mortality tables. Increased
retirement healthy, and disabled) disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP- 2020
Retirement Rates [Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates [Decreased rates and changed from rates based on age and
service to rates based on service only to better fit experience land to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates No change Salary Scale No change Line of Duty Disability No change
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program: (Continued)
Net LODA OPEB Liability
The net OPEB liability (NOL) for the LODA Program represents the program’s total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30, 2021, NOL amounts for the LODA Program is as follows (amounts expressed in thousands):
LODA Program
Total LODA OPEB Liability $ 448,542
Plan Fiduciary Net Position 7,553
LODA Net OPEB Liability (Asset) $ 440,989
Plan Fiduciary Net Position as a Percentage of the Total LODA OPEB Liability 1.68%
The total LODA OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
Long-Term Expected Rate of Return
The long-term expected rate of return on LODA OPEB Program’s investments was set at 2.16% for this valuation. Since LODA is funded on a current-disbursement basis, it is not able to use the VRS Pooled Investments 6.75% assumption. Instead, the assumed annual rate of return of 2.16% was used since it approximates the risk-free rate of return. This Single Equivalent Interest Rate (SEIR) is the applicable municipal bond index rate based on the Bond Buyer General Obligation 20-year Municipal Bond Index as of the measurement date of June 30, 2021.
Discount Rate
The discount rate used to measure the total LODA OPEB liability was 2.16%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made per the VRS Statutes and that they will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by participating employers to the LODA OPEB Program will be subject to the portion of the VRS Board- certified rates that are funded by the Virginia General Assembly.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: (Continued) Net LODA OPEB Liability The net OPEB liability (NOL) for the LODA Program represents the program’s total OPEB liability determined in
accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30, 2021, NOL amounts for the LODA Program is as follows (amounts expressed in thousands):
LODA Program
Total LODA OPEB Liability $ 448,542 Plan Fiduciary Net Position 7,553 LODA Net OPEB Liability (Asset)
Plan Fiduciary Net Position as a Percentage of the Total LODA OPEB Liability 1.68%
The total LODA OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net position is reported in the System’s financial statements. The net OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System’s notes to the financial statements and required supplementary information.
Long-Term Expected Rate of Return
The long-term expected rate of return on LODA OPEB Program’s investments was set at 2.16% for this valuation. Since LODA is funded on a current-disbursement basis, it is not able to use the VRS Pooled Investments 6.75% assumption. Instead, the assumed annual rate of return of 2.16% was used since it approximates the risk-free rate of return. This Single Equivalent Interest Rate (SEIR) is the applicable municipal bond index rate based on the Bond Buyer General Obligation 20-year Municipal Bond Index as of the measurement date of June 30, 2021.
Discount Rate
The discount rate used to measure the total LODA OPEB liability was 2.16%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made per the VRS Statutes and that they will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2021, the rate contributed by participating employers to the LODA OPEB Program will be subject to the portion of the VRS Board- certified rates that are funded by the Virginia General Assembly.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 13―Line of Duty Act (LODA) Program: (Continued)
Sensitivity of the Covered Employer’s Proportionate Share of the Net LODA OPEB Liability to Changes in the Discount Rate
The following presents the covered employer’s proportionate share of the net LODA OPEB liability using the discount rate of 2.16%, as well as what the covered employer’s proportionate share of the net LODA OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.16%) or one percentage point higher (3.16%) than the current rate:
1% Decrease Current 1% Increase (1.16%) (2.16%) (3.16%)
County’s proportionate share of the LODA Net OPEB Liability $ 2,358,954 $ 2,050,611 $ 1,805,607
Discount Rate
Sensitivity of the Covered Employer’s Proportionate Share of the Net LODA OPEB Liability to Changes in the Health Care Trend Rate
Because the LODA Program contains a provision for the payment of health insurance premiums, the liabilities are also impacted by the health care trend rates. The following presents the covered employer’s proportionate share of the net LODA OPEB liability using the health care trend rate of 7.00% decreasing to 4.75%, as well as what the covered employer’s proportionate share of the net LODA OPEB liability would be if it were calculated using a health care trend rate that is one percentage point lower (6.00% decreasing to 3.75%) or one percentage point higher (8.00% decreasing to 5.75%) than the current rate:
1% Decrease Current 1% Increase (6.00% decreasing (7.00% decreasing (8.00% decreasing
to 3.75%) to 4.75%) to 5.75%) County’s proportionate share of the LODA
Net OPEB Liability $ 1,682,578 $ 2,050,611 $ 2,522,505
Health Care Trend Rates
LODA OPEB Fiduciary Net Position
Detailed information about the LODA Program Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/pdf/publications/2021-annual-report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 13—Line of Duty Act (LODA) Program: (Continued)
Sensitivity of the Covered Employer’s Proportionate Share of the Net LODA OPEB Liability to Changes in the Discount Rate
The following presents the covered employer’s proportionate share of the net LODA OPEB liability using the discount rate of 2.16%, as well as what the covered employer’s proportionate share of the net LODA OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.16%) or one percentage point higher (3.16%) than the current rate:
Discount Rate
1% Decrease Current 1% Increase (1.16%) (2.16%) (3.16%) County’s proportionate share of the LODA Net OPEB Liability $ 2,358,954 $ 2,050,611 $ 1,805,607
Sensitivity of the Covered Employer’s Proportionate Share of the Net LODA OPEB Liability to Changes in the Health Care Trend Rate
Because the LODA Program contains a provision for the payment of health insurance premiums, the liabilities are also impacted by the health care trend rates. The following presents the covered employer’s proportionate share of the net LODA OPES liability using the health care trend rate of 7.00% decreasing to 4.75%, as well as what the covered employer’s proportionate share of the net LODA OPEB liability would be if it were calculated using a health care trend rate that is one percentage point lower (6.00% decreasing to 3.75%) or one percentage point higher (8.00% decreasing to 5.75%) than the current rate:
Health Care Trend Rates
1% Decrease Current 1% Increase (6.00% decreasing (7.00% decreasing (8.00% decreasing to 3.75%) to 4.75%) to 5.75%) County’s proportionate share of the LODA Net OPEB Liability $ 1,682,578 $ 2,050,611 $ 2,522,505
LODA OPEB Fiduciary Net Position
Detailed information about the LODA Program Fiduciary Net Position is available in the separately issued VRS 2021 Annual Comprehensive Financial Report (Annual Report). A copy of the 2021 VRS Annual Report may be downloaded from the VRS website at http://www.varetire.org/ pdf publications/2021-annual-report.pdf, or by writing to the ‘System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 14-Aggregate OPEB Information:
Deferred Deferred Net OPEB OPEB Deferred Deferred Net OPEB OPEB Outflows Inflows Liability Expense Outflows Inflows Liability Expense
County Stand-Alone Plan (Note 8) $ 269,723 $ 137,216 $ 760,949 $ 1,009 $ - $ - $ - $ -
School Stand-Alone Plan (Note 9) - - - - 2,396,083 617,219 11,856,494 1,393,130
VRS OPEB Plans:
Group Life Insurance Plan (Note 10):
County 107,639 155,995 354,521 13,445 - - - -
School Board Nonprofessional - - - - 37,553 76,369 142,390 (584)
School Board Professional - - - - 299,644 468,027 1,094,065 29,213
County Health Insurance Credit Plan (Note 11) 8,551 11,721 13,889 1,009 - - - -
Nonprofessional Health Insurance Credit Plan (Note 11) - - - - 154,666 210,006 399,885 3,371
Teacher Health Insurance Credit Plan (Note 12) - - - - 337,981 227,431 2,812,941 198,930
Line of Duty Act (LODA) Program (Note 13) 888,080 625,894 2,050,611 177,969 - - - -
Totals $ 1,273,993 $ 930,826 $ 3,179,970 $ 193,432 $ 3,225,927 $ 1,599,052 $ 16,305,775 $ 1,624,060
Primary Government Component Unit School Board
Note 15-Capital Assets:
Capital asset activity for the year ended June 30, 2022 was as follows:
Primary Government:
Beginning GASB No. 87 Ending Balance Implementation Increases Decreases Balance
Governmental Activities: Capital assets, not being depreciated:
Land $ 663,931 $ - $ 37,422 $ - $ 701,353
Construction in progress 744,487 - 4,419,919 - 5,164,406
Total capital assets not being depreciated $ 1,408,418 $ - $ 4,457,341 $ - $ 5,865,759
Capital assets, being depreciated:
Buildings and improvements $ 22,928,921 $ - $ 23,200 $ (1,802,210) $ 21,149,911
Machinery and equipment 6,500,659 - 344,291 (743,832) 6,101,118
Total capital assets being depreciated $ 29,429,580 $ - $ 367,491 $ (2,546,042) $ 27,251,029
Accumulated depreciation:
Buildings and improvements $ (9,915,514) $ - $ (678,198) $ 947,622 $ (9,646,090)
Machinery and equipment (4,630,093) - (515,681) 381,240 (4,764,534)
Total accumulated depreciation $ (14,545,607) $ - $ (1,193,879) $ 1,328,862 $ (14,410,624)
Total capital assets being depreciated, net $ 14,883,973 $ - $ (826,388) $ (1,217,180) $ 12,840,405
Intangible right-to-use capital assets, being amortized:
Buildings and improvements $ - $ 3,361,167 $ - $ - $ 3,361,167
Machinery and equipment - 439,140 76,829 - 515,969
Total intangible right-to-use capital assets, being amortized $ - $ 3,800,307 $ 76,829 $ - $ 3,877,136
Accumulated amortization:
Buildings and improvements $ - $ - $ (622,066) $ - $ (622,066)
Machinery and equipment - - (124,005) - (124,005)
Total accumulated amortization $ - $ - $ (746,071) $ - $ (746,071)
Total intangible right-to-use capital assets, net $ - $ 3,800,307 $ (669,242) $ - $ 3,131,065
Governmental activities capital assets, net $ 16,292,391 $ 3,800,307 $ 2,961,711 $ (1,217,180) $ 21,837,229
During the fiscal year, the County transferred several assets to the Component Unit - School Board with an original cost of $2,224,021 and accumulated depreciation of $1,140,189 (net book value of $1,083,832).
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 1, ste OPEB Informatior Primary Goverment Component at School Board Outfows__iiows__"Uabitty__Experne_—Outflows Inflows ‘Labity__Expersa ‘ont tnt sone Pan ate S$ ws 72s TIS 10m 5 s s s Schl Stan one an te 9) 2avioe 67219 HNASHeH4 1302800 VSO Mn: Gro Life nsrance Pian Noe 1 cumty oes 599s sass out Hest irurance Cet Pan te 1) ast uum ane son Nerrofessoa eat nsrance Cet ln ate 8) re ee er ‘Teac Health nance ret Plan at 2) Bros Taare W890 Lin of ty et LDA) rogram te 1) ses ersam 2osos wr969 Tete sCimser shoe sina sian sms s Tse 5 TERT 5 meow Note 15-Capital Assets: Capital asset activity for the year ended June 30, 2022 was as follows: Primary Government: Beginning GASB No. 87 Ending Balance Implementation Increases__Decreases__Balance Governmental Activities: Capital assets, not being depreciated: Land Ss 663931 § “8 sans = $701,383 Construction in prosress 744,487 = 4.419.919 5,164,406 Total capital assets not being depreciated Sse § = S 47S = $5.865,759 Capital assets, being depreciated! Buildings and improvements S$ 22928921 § $23,200 § (1,802,210) $24,149,911 Machinery and equipment 6,500,659 : 344.291 (743,832) 6,101,118 Total capital assets being depreciated $99,479,560. § = S__367.491 $2,546,082) $27,251,009 Accumulated depreciation: Buildings and improvements 5 0,915,514) § 5 (678,198) § 947,622 $ (9,646,090) Machinery and equipment (4,630,003) (515,681) 381,240 (4,764,534) Total accumulated depreciation $114.545,607) § $11,193,879) $1,328,862. § (14,410,624) Total capital assets being depreciated, net $ 14,883,973 § = $ (626,388) $_(1.217,180) $12,840,405 Intangible right-to-use capital assets, being amortized: Buildings and improvements s -§ 3,361,167 § 8 $3,361,167 Nachinery and equipment : 439.140 76,829 315,969 Total intangible right-touse capital assets, being amortized § = $3,800,307" $76,829" § = $3877, 136 ‘Accumulated amortization: Buildings and improvements s 5 5 (622,066) § 5 (622,066) Machinery and equipment (124,005) (124,005) Total accumulated amortization s s s__aa6.orty $ $748,071) Total intangible right-toxse capital assets, net s = $3,800,307 $ (669,242) § = $_ 3,131,065 Governmental activities capital assets, net $16,202,391 $3,800,307 $2,961,711 $ (1.217.180) $_21,837,229
During the fiscal year, the County transferred several assets to the Component Unit - School Board with an original cost of $2,224,021 and accumulated depreciation of $1,140,189 (net book value of $1,083,832).
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 15-Capital Assets: (Continued)
Primary Government: (Continued)
Beginning Ending Balance Increases Decreases Balance
Business-type Activities: Capital assets, being depreciated:
Utility plant $ 5,240,699 $ - $ - $ 5,240,699
Machinery and equipment 8,148 - - 8,148
Total capital assets being depreciated $ 5,248,847 $ - $ - $ 5,248,847
Accumulated depreciation: Utility plant $ (3,034,227) $ (131,017) $ - $ (3,165,244) Machinery and equipment (5,883) (2,264) - (8,147)
Total accumulated depreciation $ (3,040,110) $ (133,281) $ - $ (3,173,391)
Total capital assets being depreciated, net $ 2,208,737 $ (133,281) $ - $ 2,075,456
Business-type activities capital assets, net $ 2,208,737 $ (133,281) $ - $ 2,075,456
Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government administration $ 31,862
Judicial administration 3,532
Public safety 328,064
Public works 211,660
Health and welfare 163,780
Education 700,959
Parks, recreation, and cultural 26,008
Community development 474,085
Total depreciation/amortization expense-governmental activities $ 1,939,950
Business-type activities: Sewer Authority $ 133,281
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022
Note 15-Capital Assets: (Continued)
Primary Government: (Continued)
Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital assets, being depreciated: Utility plant 5,240,699 $ -$ - $ 5,240,699 Machinery and equipment 8,148 : : 8,148 Total capital assets being depreciated 5,248,847 $ _$ = $5,248,847 Accumulated depreciation: Utility plant (3,034,227) $ (131,017) $ = $ (3,165,244) Machinery and equipment (5,883) (2,264) : (8,147) Total accumulated depreciation (8,040,170) $(7133,281) $ = $G,173,391) Total capital assets being depreciated, net $2,208,737 $ (133,281) $ = $ 2,075,456 Business-type activities capital assets, net $2,208,737 $ (133,281) $ = $ 2,075,456
Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Governmental activities: General government administration Judicial administration Public safety Public works Health and welfare Education Parks, recreation, and cultural ‘Community development
Total depreciation/amortization expense-governmental activities
Business-type activities: Sewer Authority
91
$ 31,862 3,532
328,064 211,660 163,780 700,959 26,008
474,085
$__1,939,950
$ 133,281
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 15-Capital Assets: (Continued)
Capital asset activity for the School Board for the year ended June 30, 2022 was as follows:
Discretely Presented Component Unit – School Board:
Beginning Ending Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land $ 5,628,295 $ - $ - $ 5,628,295
Construction in progress 636,710 7,159,042 - 7,795,752
Total capital assets not being depreciated $ 6,265,005 $ 7,159,042 $ - $ 13,424,047
Capital assets, being depreciated:
Buildings and improvements $ 33,805,199 $ 1,839,258 $ - $ 35,644,457
Machinery and equipment 8,546,636 1,320,522 - 9,867,158
Total capital assets being depreciated $ 42,351,835 $ 3,159,780 $ - $ 45,511,615
Accumulated depreciation:
Buildings and improvements $ (23,275,482) $ (1,749,121) $ - $ (25,024,603)
Machinery and equipment (7,093,564) (554,593) - (7,648,157)
Total accumulated depreciation $ (30,369,046) $ (2,303,714) $ - $ (32,672,760)
Total capital assets being depreciated, net $ 11,982,789 $ 856,066 $ - $ 12,838,855
Intangible right-to-use capital assets, being amortized: Machinery and equipment $ - $ 402,114 $ - $ 402,114
Total intangible right-to-use capital assets, being amortized $ - $ 402,114 $ - $ 402,114
Accumulated amortization: Machinery and equipment $ - $ (15,821) $ - $ (15,821)
Total accumulated amortization $ - $ (15,821) $ - $ (15,821)
Total intangible right-to-use capital assets, net $ - $ 386,293 $ - $ 386,293
Governmental activities capital assets, net $ 18,247,794 $ 8,401,401 $ - $ 26,649,195
During the fiscal year, the County transferred several assets to the Component Unit - School Board with an original cost of $2,224,021 and accumulated depreciation of $1,140,189 (net book value of $1,083,832).
Note 17-Risk Management:
The County and its Component Unit – School Board are exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; and natural disasters. The County and the related
Component Unit – School Board participate with other localities in a public entity risk pool for their coverage of
general liability, property, crime and auto insurance with the Virginia Association of Counties Risk Pool. Each
member of this risk pool jointly and severally agrees to assume, pay and discharge any liability. The County and
the School Board pay the Risk Pool contributions and assessments based upon classification and rates into a
designated cash reserve fund out of which expenses of the pool, claims and awards are to be paid. In the event of
a loss, deficit, or depletion of all available excess insurance, the pool may assess all members in the proportion to
which the premium of each bears to the total premiums of all members in the year in which such deficit occurs.
The County and its Component Unit – School Board continue to carry commercial insurance for all other risks of
loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past
three fiscal years.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 15-Capital Assets: (Continued) Capital asset activity for the School Board for the year ended June 30, 2022 was as follows:
Discretely Presented Component Unit - School Board:
Beginning Ending Balance Increases _Decreases Balance Capital assets, not being depreciated:
Land 5 5,628,295 § -8 55,628,295
Construction in progress 636,710__ 7,159,042 - 7,795,752 Total capital assets nat being depreciated $6,265,005" $7,159,082. $ = $13,424,047 Capital assets, being depreciated:
Buildings and improvements $33,805,199 $1,839,258 $ $35,644,457
Machinery and equipment 8,546,636 1,320,522 : 9,867,158 Total capital assets being depreciated $42,351,835. $3.159,780 $ = $7 5.511,615, ‘Accumulated depreciation:
Buildings and improvements $23,275,482) $ (1,749,121) $ $25,024,603)
Machinery and equipment (7,093,564) _ (554,593) - (7,648,157) Total accumulated depreciation $180,369,046) $12,303,714) $ $82,672,760) Total capital assets being depreciated, net $11,982,789 $_ 856,066. $ ~ $17,838,855, Intangible right-to-use capital assets, being amortized
Machinery and equipment $ $__ ania § $____ 402,114 Total intangible right-to-use capital assets, being amortize. = $402,114 § = $40,114 ‘Accumulated amortization:
Machinery and equipment s = $115,820) § $ 15,821) Total accumulated amortization $ = S582) § s (15,821) Total intangible right-to-use capital assets, net 5 = $ 386,293 § = $___ 386,293 Governmental activities capital assets, net $_18,247,794 $8,401401 $ 5 _26,649,195
During the fiscal year, the County transferred several assets to the Component Unit - School Board with an original cost of $2,224,021 and accumulated depreciation of $1,140,189 (net book value of $1,083,832).
Note 17-Risk Management
The County and its Component Unit - School Board are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The County and the related Component Unit - School Board participate with other localities in a public entity risk pool for their coverage of general liability, property, crime and auto insurance with the Virginia Association of Counties Risk Pool. Each member of this risk pool jointly and severally agrees to assume, pay and discharge any liability. The County and the School Board pay the Risk Pool contributions and assessments based upon classification and rates into a designated cash reserve fund out of which expenses of the pool, claims and awards are to be paid. In the event of a loss, deficit, or depletion of all available excess insurance, the pool may assess all members in the proportion to which the premium of each bears to the total premiums of all members in the year in which such deficit occurs. ‘The County and its Component Unit - School Board continue to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
92
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 17-Contingent Liabilities:
Federal programs in which the County and its component units participate were audited in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Pursuant to the provisions of this guidance all major programs and certain other programs were tested for compliance with applicable grant requirements. While no matters of noncompliance were disclosed by audit, the Federal Government may subject grant programs to additional compliance tests, which may result in disallowed expenditures. In the opinion of management, future disallowances of current grant program expenditures, if any, would be immaterial.
Note 18-Surety Bonds:
Fidelity & Deposit Company of Maryland-Surety:
Ann S. McReynolds, Clerk of the Circuit Court 1,010,000$
Alicia McGlothlin, Treasurer 400,000
Randy N. Williams, Commissioner of the Revenue 3,000
Steve Dye, Sheriff 30,000
All constitutional officers’ employees: blanket bond 50,000
Hartford Company - Surety:
Brooke Webb - Clerk of the School Board 10,000$
All school employees: blanket bond 10,000
USF&G Insurance Co. - Surety: All Social Services employees-blanket bond 100,000$
Note 19-Landfill Closure and Postclosure Care Cost:
State and federal laws and regulations require the County to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site after closure. The total estimated closure and postclosure care liability at June 30, 2022 is $315,976. This represents the cumulative amount based on the use of 100% of the estimated capacity of the landfill and is based on what it would cost to perform all remaining closure and postclosure in 2022. Actual costs for closure and postclosure monitoring may change due to inflation, deflation, changes in technology or changes in regulations. The County uses the Commonwealth of Virginia’s financial assurance mechanism to meet the Department of Environmental Quality’s assurance requirements for landfill closure and postclosure costs.
The County demonstrated financial assurance requirements for closure, post-closure care, and corrective action costs through the submission of a Local Government Financial Test to the Virginia Department of Environmental Quality in accordance with Section 9VA C20-70 of the Virginia Administrative Code.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 17-Contingent Liabilities
Federal programs in which the County and its component units participate were audited in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Pursuant to the provisions of this guidance all major programs and certain other programs were tested for compliance with applicable grant Tequirements. While no matters of noncompliance were disclosed by audit, the Federal Government may subject grant programs to additional compliance tests, which may result in disallowed expenditures. In the opinion of management, future disallowances of current grant program expenditures, if any, would be immaterial.
Note 18-Surety Bond:
Fidelity & Deposit Company of Maryland-Surety:
‘Ann S. McReynolds, Clerk of the Circuit Court $ 1,010,000 Alicia McGlothlin, Treasurer 400,000 Randy N. Williams, Commissioner of the Revenue 3,000 Steve Dye, Sheriff 30,000 All constitutional officers’ employees: blanket bond 50,000
Hartford Company - Surety: Brooke Webb - Clerk of the School Board $10,000 All school employees: blanket bond 10,000
USF&G Insurance Co. - Surety: All Social Services employees-blanket bond $100,000
Note 19-Landfill Closure and Postclosure Care Cost:
State and federal laws and regulations require the County to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site after closure. The total estimated closure and postclosure care liability at June 30, 2022 is $315,976. This represents the cumulative ‘amount based on the use of 100% of the estimated capacity of the landfill and is based on what it would cost to perform all remaining closure and postclosure in 2022. Actual costs for closure and postclosure monitoring may change due to inflation, deflation, changes in technology or changes in regulations. The County uses the ‘Commonwealth of Virginia’s financial assurance mechanism to meet the Department of Environmental Quality’s assurance requirements for landfill closure and postclosure costs.
The County demonstrated financial assurance requirements for closure, post-closure care, and corrective action
costs through the submission of a Local Government Financial Test to the Virginia Department of Environmental Quality in accordance with Section 9VA C20-70 of the Virginia Administrative Code.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 20-Deferred/Unavailable Revenue:
Deferred revenue/unavailable revenue represent amounts for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. Under the modified accrual basis of accounting, such amounts are measurable, but not available. Under the accrual basis, assessments for future periods are deferred.
Government-wide Statement of Net Position Balance Sheet Governmental Activities Governmental Funds
2nd half taxes due December 2022 $ 5,296,247 $ 5,296,247
Delinquent taxes due prior to June 30, 2022 - 3,221,507
Prepaid taxes 250,738 250,738
Total deferred/unavailable revenue $ 5,546,985 $ 8,768,492
Note 21-Self Health Insurance:
The County of Russell, Virginia established a limited risk management program for health insurance. Premiums are
paid into the health plan fund from the County and School Board and are available to pay claims, and
administrative costs of the program. During the fiscal year 2022, a total of $7,970,681 was paid in benefits and
administrative costs. The risk assumed by the County and School Board is based on the number of participants in
the program. The risk varies by the number of participants and their specific plan type. As of June 30, 2022, the
County and School Board were exposed to risk which represents the difference between the claims to date and the
ceiling liability as calculated based on enrollment levels and health plan coverage. Additional costs in excess of the
ceiling liability are covered as part of the contract with the County. Incurred but not reported claims of $833,542
have been accrued as a liability based primarily on actual cost incurred prior to June 30 but paid after year-end.
Interfund premiums are based primarily upon the insured funds’ claims experience and are reported as quasi-
external interfund transactions. Changes in the claims liability during fiscal year 2022 and the two preceding fiscal
years were as follows:
Current Year Balance at Claims and Balance at
Beginning of Changes in Claim End of Fiscal Year Fiscal Year Estimates Payments Fiscal Year
2021-22 $ 548,640 $ 8,255,583 $ (7,970,681) $ 833,542
2020-21 550,591 6,532,274 (6,534,225) 548,640
2019-20 864,737 5,460,900 (5,775,046) 550,591
Note 22-Moral Obligation:
During 2021, all Virginia Resource Authority (VRA) bonds were refinanced and combined into two revenue bonds. Included in the refinancing were bonds previously issued by the County of Russell, amounts issued by Castlewood Water and Sewer Authority, as well as bonds issued by the Russell County Public Service Authority (PSA). All of the bonds previously in the County’s and Castlewood Water and Sewer Authority’s name are now in the PSA’s name.
The County signed a support agreement that requires the County to fund all debt service where revenues are not sufficient to cover the payments. The County has agreed to continue to pay the debt service for the loans originally issued in the County’s name and are shown in long-term obligations as locality compensation payments.
As of June 30, 2022, the balance of those loans was $3,124,417.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 20-Deferred/Unavailable Revenue: Deferred revenue/ unavailable revenue represent amounts for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. Under the modified accrual basis of accounting, such amounts are measurable, but not available. Under the accrual basis, assessments for future periods are deferred.
Government-wide
Statement of Net Position Balance Sheet
Governmental Activities _ Governmental Funds
2nd half taxes due December 2022 $s 5,296,247 $ 5,296,247 Delinquent taxes due prior to June 30, 2022 : 3,221,507 Prepaid taxes 250,738 250,738 Total deferred/unavailable revenue $ 5,546,985 $ 8,768,492
Note 21-Self Health Insuranc
The County of Russell, Virginia established a limited risk management program for health insurance. Premiums are paid into the health plan fund from the County and School Board and are available to pay claims, and administrative costs of the program. During the fiscal year 2022, a total of $7,970,681 was paid in benefits and administrative costs. The risk assumed by the County and School Board is based on the number of participants in the program. The risk varies by the number of participants and their specific plan type. As of June 30, 2022, the County and School Board were exposed to risk which represents the difference between the claims to date and the ceiling liability as calculated based on enrollment levels and health plan coverage. Additional costs in excess of the ceiling liability are covered as part of the contract with the County. Incurred but not reported claims of $833,542 have been accrued as a liability based primarily on actual cost incurred prior to June 30 but paid after year-end. Interfund premiums are based primarily upon the insured funds’ claims experience and are reported as quasi- external interfund transactions. Changes in the claims liability during fiscal year 2022 and the two preceding fiscal
years were as follows:
Current Year
Balance at Claims and Balance at Beginning of Changes in Claim End of Fiscal Year Fiscal Year Estimates Payments Fiscal Year 2021-22 $ 548,640 $ 8,255,583 $ (7,970,681) $ 833,542 2020-21 550,591 6,532,274 (6,534,225) 548,640 2019-20 864,737 5,460,900 (5,775,046) 550,591
Note 22-Moral Obligation:
During 2021, all Virginia Resource Authority (VRA) bonds were refinanced and combined into two revenue bonds. Included in the refinancing were bonds previously issued by the County of Russell, amounts issued by Castlewood Water and Sewer Authority, as well as bonds issued by the Russell County Public Service Authority (PSA). All of the bonds previously in the County’s and Castlewood Water and Sewer Authority’s name are now in the PSA’s name.
The County signed a support agreement that requires the County to fund all debt service where revenues are not sufficient to cover the payments. The County has agreed to continue to pay the debt service for the loans originally issued in the County’s name and are shown in long-term obligations as locality compensation payments.
As of June 30, 2022, the balance of those loans was $3,124,417.
COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 23-Commitments and Contingencies:
The County and School Board have obligated funds for the projects described below as of June 30, 2022:
Amount of Original Amount Paid Contract Accounts Payable Retainage Payable Contract as of 6/30/2022 Outstanding as of 6/30/2022 as of 6/30/2022
County Contracts: Courthouse Renovation 13,480,853$ 3,242,196$ 10,238,657$ 684,985$ 162,077$
Total Contracts 13,480,853$ 3,242,196$ 10,238,657$ 684,985$ 162,077$
Amount of Original Amount Paid Contract Accounts Payable Retainage Payable Contract as of 6/30/2022 Outstanding as of 6/30/2022 as of 6/30/2022
School Board Contracts:
HVAC Systems 1,957,024$ 1,930,553$ 26,471$ 202,686$ -$
Lebanon Middle School Fieldhouse 2,196,102 874,276 1,321,826 457,618 43,714
Total Contracts 4,153,126$ 2,804,829$ 1,348,297$ 660,304$ 43,714$
Note 24-Litigation:
As of June 30, 2022, there were no matters of litigation involving the County which would materially affect the County’s financial position should any court decisions on pending matters not be favorable.
Note 25 – Subsequent Events:
ARPA Funding
On March 11, 2021, the American Rescue Plan (ARPA) Act of 2021 was passed by the federal government. A primary component of the ARPA was the establishment of the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF). Local governments are to receive funds in two tranches, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later.
On May 20, 2021, the County received its share of the first half of the CSLFRF funds. The second half was received June 30, 2022. As a condition of receiving CSLFRF funds, any funds unobligated by December 31, 2024, and unexpended by December 31, 2026, will be returned to the federal government. Unspent funds in the amount of $4,454,319 from the allocation are reported as unearned revenue as of June 30.
ESF Funding
The CARES Act also established the Education Stabilization Fund (ESF) and allocated $30.75 billion to the U.S. Department of Education. The ESF is composed of three primary emergency relief funds: (1) a Governor’s Emergency Education Relief (GEER) Fund, (2) an Elementary and Secondary School Emergency Relief (ESSER) Fund, and (3) a Higher Education Emergency Relief (HEER) Fund. The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA Act) was signed into law on December 27, 2020 and added $81.9 billion to the ESF. In March 2021, the American Rescue Plan Act (ARP Act), in support of ongoing state and institutional COVID-19 recovery efforts, added more than $170 billion to the ESF. The School Board is receiving this funding from the Virginia Department of Education on a reimbursement basis.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 23-Commitments and Contingencies The County and School Board have obligated funds for the projects described below as of June 30, 2022:
‘Amount of Original ‘Amount Paid Contract Accounts Payable Retainage Payable Contract __asof 6/30/2022 _Outstanding__as of 6/30/2022 __as of 6/30/2022 County Contracts: Courthouse Renovation S 13,480,853 $3,242,196 $10,238,657 $684,985 162,07, Total Contracts $13,480,853 $3,242,196 $10,238,657 $684,985 162,077 Amount of Original ‘Amount Paid Contract Accounts Payable Retainage Payable
Contract___as of 6/30/2022 _Outstanding__as of 6/30/2022 _as of 6/30/2022
‘School Board Contracts:
HVAC Systems S 1,957,024 § 1,930,553 § 26AT1 $202,686 S : Lebanon Middle School Fieldhouse 2,196,102 874,276 1,321,826 457,618 B74 Total Contracts $4,153,126 _$ 2,804,829 $1,348,297 $660,304. 43,714
Note 24-Litigation:
As of June 30, 2022, there were no matters of litigation involving the County which would materially affect the County’s financial position should any court decisions on pending matters not be favorable.
Note 25 - Subsequent Events:
ARPA Funding
(On March 11, 2021, the American Rescue Plan (ARPA) Act of 2021 was passed by the federal government. A primary component of the ARPA was the establishment of the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF). Local governments are to receive funds in two tranches, with 50% provided beginning in May 2021 and the balance delivered approximately 12 months later.
‘On May 20, 2021, the County received its share of the first half of the CSLFRF funds. The second half was received June 30, 2022. As a condition of receiving CSLFRF funds, any funds unobligated by December 31, 2024, and unexpended by December 31, 2026, will be returned to the federal government. Unspent funds in the amount of $4,454,319 from the allocation are reported as unearned revenue as of June 30.
ESF Funding
The CARES Act also established the Education Stabilization Fund (ESF) and allocated $30.75 billion to the U.S. Department of Education. The ESF is composed of three primary emergency relief funds: (1) a Governor’s Emergency Education Relief (GEER) Fund, (2) an Elementary and Secondary School Emergency Relief (ESSER) Fund, and (3) a Higher Education Emergency Relief (HEER) Fund. The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA Act) was signed into law on December 27, 2020 and added $81.9 billion to the ESF. In March 2021, the American Rescue Plan Act (ARP Act), in support of ongoing state and institutional COVID-19 recovery efforts, added more than $170 billion to the ESF. The School Board is receiving this funding from the Virginia Department of Education on a reimbursement basis.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2022
Note 26-Adoption of Accounting Principle:
The County implemented provisions of Governmental Accounting Standards Board Statement No. 87, Leases during the fiscal year ended June 30, 2022. Statement No. 87, Leases requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. No restatement of beginning net position was required as a result of this implementation. Using the facts and circumstances that existed at the beginning of the year of implementation, the following balances were recognized as of July 1, 2021 related to the leases:
Primary Government Governmental
Activities Lessee activity:
Lease assets $ 3,800,307
Lease liabilities $ (3,800,307)
Note 27-Upcoming Pronouncements:
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
Statement No. 94, Public-Private and Public-Public Partnerships and Availability of Payment Arrangements, addresses issues related to public-private and public-public partnership arrangements. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022.
Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022.
Statement No. 99, Omnibus 2022, addresses (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The effective dates differ based on the requirements of the Statement, ranging from April 2022 to for fiscal years beginning after June 15, 2023.
Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62, provides more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability for accounting changes and error corrections. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023.
Statement No. 101, Compensated Absences, updates the recognition and measurement guidance for compensated absences. It aligns the recognition and measurement guidance under a unified model and amends certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023.
Management is currently evaluating the impact these standards will have on the financial statements when adopted.
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COUNTY OF RUSSELL, VIRGINIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2022
Note 26-Adoption of Accounting Principle:
The County implemented provisions of Governmental Accounting Standards Board Statement No. 87, Leases during the fiscal year ended June 30, 2022. Statement No. 87, Leases requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. No restatement of beginning net position ‘was required as a result of this implementation. Using the facts and circumstances that existed at the beginning of the year of implementation, the following balances were recognized as of July 1, 2021 related to the leases:
Primary
Government
Governmental Activities
Lessee activity: Lease assets Lease liabilities
Note 27-Upcoming Pronouncement
Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
‘Statement No. 94, Public-Private and Public-Public Partnerships and Availability of Payment Arrangements, addresses issues related to public-private and public-public partnership arrangements. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022.
Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022.
Statement No. 99, Omnibus 2022, addresses (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The effective dates differ based on the requirements of the Statement, ranging from April 2022 to for fiscal years beginning after June 15, 2023.
‘Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62, provides more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability for accounting changes and error corrections. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023.
Statement No. 101, Compensated Absences, updates the recognition and measurement guidance for compensated absences. It aligns the recognition and measurement guidance under a unified model and amends certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023.
‘Management is currently evaluating the impact these standards will have on the financial statements when adopted.
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Required Supplementary Information
Required Supplementary Information
Exhibit 12
Variance with Final Budget -
Actual Positive Original Final Amounts (Negative)
REVENUES
General property taxes 16,636,127$ 16,636,127$ 16,579,875$ (56,252)$
Other local taxes 2,894,735 2,848,848 3,839,387 990,539
Permits, privilege fees, and regulatory licenses 37,155 37,155 43,484 6,329
Fines and forfeitures 11,250 11,250 10,279 (971)
Revenue from the use of money and property 223,901 223,901 105,765 (118,136)
Charges for services 329,500 329,500 263,824 (65,676)
Miscellaneous 91,550 91,550 255,310 163,760
Recovered costs 427,380 427,380 1,206,570 779,190
Intergovernmental:
Commonwealth 9,212,640 9,212,640 8,969,598 (243,042)
Federal 3,452,406 3,452,406 3,465,402 12,996
Total revenues 33,316,644$ 33,270,757$ 34,739,494$ 1,468,737$
EXPENDITURES Current:
General government administration 1,774,793$ 2,144,758$ 2,288,123$ (143,365)$
Judicial administration 2,701,068 2,945,935 2,946,289 (354)
Public safety 6,324,650 7,014,707 6,567,080 447,627
Public works 2,725,517 3,500,272 2,921,766 578,506
Health and welfare 7,416,185 8,386,188 7,436,738 949,450
Education 7,916,969 7,985,349 8,717,736 (732,387)
Parks, recreation, and cultural 512,156 573,721 559,426 14,295
Community development 568,859 859,330 913,658 (54,328)
Nondepartmental 270,583 583,800 316,149 267,651
Capital projects 33,879 3,703,892 4,286,977 (583,085)
Debt service:
Principal retirement 1,669,592 1,780,240 1,860,240 (80,000)
Interest and other fiscal charges 450,736 619,442 647,911 (28,469)
Total expenditures 32,364,987$ 40,097,634$ 39,462,093$ 635,541$
Excess (deficiency) of revenues over (under) expenditures 951,657$ (6,826,877)$ (4,722,599)$ 2,104,278$
OTHER FINANCING SOURCES (USES)
Transfers out (951,657)$ (951,657)$ (92,595)$ 859,062.00$
Issuance of general obligation bonds - - 16,015,000 16,015,000
Proceeds from lease purchases - - 76,829 76,829
Sale of capital assets - - 408,650 408,650
Total other financing sources (uses) (951,657)$ (951,657)$ 16,407,884$ 17,359,541$
Net change in fund balances -$ (7,778,534)$ 11,685,285$ 19,463,819$
Fund balances - beginning - 7,778,534 6,709,309 (1,069,225)
Fund balances - ending -$ -$ 18,394,594$ 18,394,594$
Budgeted Amounts
County of Russell, Virginia General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
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Russell County Highlight
Russell County Highlight
Russell County Highlight
Russell County Highlight
County of Russell, Virginia General Fund
For the Year Ended June 30, 2022
Exhibit 12
‘REVENUES General property taxes Other local taxes Permits, privilege fees, and regulatory licenses Fines and forfeitures Revenue from the use of money and property Charges for services Miscellaneous Recovered costs Intergovernmental:
‘Commonwealth
Federal
Total revenues
Current: General government administration Judicial administration Public safety Public works Health and welfare Education Parks, recreation, and cultural Community development Nondepartmental
Capital projects
Debt service:
Principal retirement Interest and other fiscal charges Total expenditures
(OTHER FINANCING SOURCES (USES) Transfers out Issuance of general obligation bonds Proceeds from lease purchases Sale of capital assets
Total other financing sources (uses)
Net change in fund balances Fund balances - beginning Fund balances - ending
Variance with Budgeted Amounts Final Budget -
Actual Positive
Original Final Amounts Negative) $16,636,127 $16,636,127 $ 16,579,875 $ (56,252) 2,894,735 2,848,848 3,839,387 990,539 37,155 37,155 43,484 6,329 11,250 11,250 10,279 71) 223,901 223,901 105,765 (118,136) 329,500 329,500 263,824 (65,676) 91,550 91,550, 255,310 163,760 427,380 427,380 1,206,570 773,190 9,212,640 9,212,640 8,969,598 (243,042) 3,452,406 3,452,406 3,465,402 12,996 33,316,644 $ 33,270,757 34,739,494 468,737 $4,774,793 $2,144,758 $ 2,288,123 $ (143,365) 2,701,068 2,945,935 2,946,289 (354) 6,324,650 7,014,707 6,567,080 447,627 2,725,517 3,500,272 2,921,766 578,506 7,416,185 8,386,188 7,436,738 949,450 7,916,969 7,985,349 8,717,736 (732,387) 512,156 573,721 559,426 14,295 568,859 859,330 913,658 (54,328) 270,583 583,800 316,149 267,651 33,879 3,703,892 4,286,977 (583,085) 1,669,592 1,780,240 1,860,240 (80,000) 450,736 619,442 647,911 (28,469) 32,364,987 $ 40,097,634 39,462,095, 635,547 $951,657 $ (6,826,877) $ (4,722,599) $2,104,278 $ (951,657) $ (951,657) $ (92,595) $859,062.00 : . 16,015,000 16,015,000 : 76,829 76,829 : : 408,650 408,650 51,657) 5 (951,657) $16,407,884 17,359,541 $ = $ (7,778,534) $11,685,285 § 19,463,819 : 7,778,534 6,709,309 (1,069,225) —s = 78,394,594 18,394,594
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Exhibit 13
Variance with Final Budget -
Actual Positive Original Final Amounts (Negative)
REVENUES
Other local taxes 150,000$ 150,000$ 515,884$ 365,884$
Revenue from the use of money and property - - 4,598 4,598
Total revenues 150,000$ 150,000$ 520,482$ 370,482$
EXPENDITURES Current:
Public works 150,000$ 209,159$ 225,158$ (15,999)$
Excess (deficiency) of revenues over (under) expenditures -$ (59,159)$ 295,324$ 354,483$
Net change in fund balances -$ (59,159)$ 295,324$ 354,483$
Fund balances - beginning - 59,159 541,099 481,940
Fund balances - ending -$ -$ 836,423$ 836,423$
Budgeted Amounts
County of Russell, Virginia Special Revenue Fund - Coal Road Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
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Special Revenue Fund - Coal Road Fund
County of Russell, Virginia
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
Exhibit 13
REVENUES
Other local taxes
Revenue from the use of money and property Total revenues
EXPENDITURES, Current: Public works
Excess (deficiency) of revenues over (under) expenditures Net change in fund balances
Fund balances - beginning Fund balances - ending
Variance with Budgeted Amounts Final Budget - Actual Positive Original Final ‘Amounts Negative $ 150,000 150,000 $ 515,804 § 365,804
-
- 4598 43598 $150,000 50,000_$ 520,482 $ 370.482 $150,000 209,159 $ 225,158$ (15,999) $ : (59.159) $295,324 $354,483, s (59,159) § 295,324 § 354,483 : 59,159 541,099 481,940 336,405 336,405
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Exhibit 14
Variance with Final Budget -
Actual Positive Original Final Amounts (Negative)
REVENUES
Revenue from the use of money and property -$ -$ 3,396$ 3,396$
Intergovernmental:
Federal - - 17,698 17,698
Total revenues -$ -$ 21,094$ 21,094$
EXPENDITURES Current:
General government administration -$ 1,027$ -$ 1,027$
Public safety - 18,175 - 18,175
Public works - 5,701 - 5,701
Health and welfare - 147,390 171,657 (24,267)
Total expenditures -$ 172,293$ 171,657$ 636$
Excess (deficiency) of revenues over (under) expenditures -$ (172,293)$ (150,563)$ 21,730$
OTHER FINANCING SOURCES (USES)
Transfers in -$ -$ 51,726$ 51,726$
Total other financing sources (uses) -$ -$ 51,726$ 51,726$
Net change in fund balances -$ (172,293)$ (98,837)$ 73,456$
Fund balances - beginning - 172,293 - (172,293)
Fund balances - ending -$ -$ (98,837)$ (98,837)$
County of Russell, Virginia Special Revenue Fund - CARES Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
Budgeted Amounts
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County of Russell, Virginia Special Revenue Fund » CARES Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2022
Exhibit 14
REVENUES
Revenue from the use of money and property Intergovernmental: Federal Total revenues
EXPENDITURES, Current: General government administration Public safety Public works. Health and welfare Total expenditures
Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES) ‘Transfers in Total other financing sources (uses)
Net change in fund balances Fund balances - beginning Fund balances - ending
Variance with
Budgeted Amounts Final Budget - ‘Actual Positive Final Amounts Negative) $ s 3,396 $ 3,396
- 17,698 17,698 3 3 71,094_$ 71,094 $ $ 1,027 s 1,027 18,175 18,175 5,701 5,701 147,390 171,657 (24,267) 3 $172,293 171,657 5 636 8 - 8 1172.23) (150,563)_$ 21,730 s 8 : 51,726 _$ 51,726 $ ~s : 51,726 _$ 51,726 5 + $ (172,293) (98,837) $ 73,456
- 172,293 : (172,293) (EH) C87)
Exhibit 15
Variance with Final Budget -
Actual Positive Original Final Amounts (Negative)
REVENUES Intergovernmental:
Federal -$ 727,173$ 709,700$ (17,473)$
Total revenues -$ 727,173$ 709,700$ (17,473)$
EXPENDITURES Current:
General government administration -$ 311,696$ 311,695$ 1$
Public safety - 303,560 286,089 17,471
Public works - 111,917 62,579 49,338
Total expenditures -$ 727,173$ 660,363$ 66,810$
Excess (deficiency) of revenues over (under) expenditures -$ -$ 49,337$ 49,337$
OTHER FINANCING SOURCES (USES)
Transfers out -$ -$ (51,726)$ (51,726)$
Transfers in - - 2,389 2,389
Total other financing sources (uses) -$ -$ (49,337)$ (49,337)$
Net change in fund balances -$ -$ -$ -$
Fund balances - beginning - - - -
Fund balances - ending -$ -$ -$ -$
County of Russell, Virginia Special Revenue Fund - ARPA Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
Budgeted Amounts
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County of Russell, Virginia Special Revenue Fund - ARPA Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2022
Exhibit 15
REVENUES Intergovernmental: Federal Total revenues
EXPENDITURES. Current: General government administration Public safety Public works. Total expenditures
Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES) Transfers out ‘Transfers in
Total other financing sources (uses)
Net change in fund balances Fund balances - beginning Fund balances - ending
Variance with
Budgeted Amounts Final Budget - ‘Actual Positive Original Final Amounts Negative) 8 Sm7a73 709,700 $§ (17,473) 3 STATS 709,700§ (17.473) $ 5 311,696 311,695 $ 1 303,560 286,089 a7art 111,917 62,579 49,338 3 327,173 660,363 $ 66,810 s _38 : 49,337 _$ 49,337 5 5 - (51,726) $§ (51,726) : 2,389 2,389 3 3 : 09,337) $49,337) 5 5 5
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Exhibit 16
Employer’s
Proportionate Plan
Employer’s Share of the NPL Fiduciary Net
Proportion of Employer’s Employer’s as a Percentage of Position as a
the Net Pension Proportionate Covered Covered Payroll Percentage of Total
Date Liability (NPL) Share of the NPL Payroll (3)/(4) Pension Liability
(1) (2) (3) (4) (5) (6)
Primary Government - County Retirement Plan
2021 99.1811% 3,751,136$ 6,234,472$ 60.17% 90.25%
2020 99.1463% 7,641,214 6,303,680 121.22% 78.56%
2019 99.0170% 5,923,033 6,020,423 98.38% 86.16%
2018 99.2670% 4,411,185 6,123,587 72.04% 84.04%
2017 99.2986% 4,976,088 4,808,206 103.49% 77.80%
2016 98.6202% 6,835,305 5,467,426 125.02% 77.80%
2015 99.1179% 5,970,089 5,368,165 111.21% 80.39%
2014 99.1179% 5,782,839 5,440,419 106.29% 80.53%
Component Unit School Board (professional)
2021 0.22165% 17,206,905$ 19,381,708$ 88.78% 85.46%
2020 0.22620% 32,910,764 19,575,194 168.12% 71.47%
2019 0.22271% 29,309,901 18,519,029 158.27% 73.51%
2018 0.22864% 26,888,000 18,374,518 146.33% 74.81%
2017 0.22904% 28,167,000 17,982,879 156.63% 72.92%
2016 0.23491% 32,921,000 17,914,579 183.77% 68.28%
2015 0.23337% 29,373,000 17,363,701 169.16% 70.68%
2014 0.23360% 28,229,000 17,083,236 165.24% 70.88%
County of Russell, Virginia
Schedule of Employer’s Proportionate Share of the Net Pension Liability
For the Measurement Dates of June 30, 2014 through June 30, 2021
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available.
Pension Plans
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xibit 16
County of Russell, Vegnia Schedule of Employer’s Proportionate Share of the Net Pension Liability Pension Plans For the Measurement Dates of June 20, 2014 through June 20, 2024,
Employers Proportionate lan Employers share ofthe NPL. Fiduciary Net Proportion of Employer’s Employer’s asa Percentage of Position asa the Net Pension Proportionate Covered Covered Payroll Percentage of Total
Date Liability (NPL) Share ofthe NPL. Payroll ema) Pension Liability im @ oy o ©) i)
Primary Government - County Retirement Plan 021 9.18118 § 3,751,096 § o236472 oars, 90.25% 2020 99.1463 Tan 214 6,303,680, wn1.22% 73.56% 2019 99.0170 5,923,033 6,020,423 9.38% 36.16% 2018 99.2670% 4,411,185 6,123,587 72.06% 406% 2017 99.2988% 4,976,088 4,808,208 103.49 780% 2016 98.6202 6,835,305, 5467 426 125.008 780% 2015 99.1179% 5,970,089 5,368,165 ima wo.39% ao 99.1179 5,782,839 5.440419 106.298 asm
Component Unit Schoo! Board (professional) aon o.n216s% § 17,206,905 § 19,381,708, 88.78% 35.40% 2020 o.22620% 32,910,764 19,575,194 18.128 mare 2019 omar 29,309,901 185519,009, 158.278 Bs 2018 0.22864 26,888,000 18.374 518 146.338 m8 2017 0.22904% 28,167,000 17,982,879 156.698 nar 2016 ors 32,921,000 w7918.579 13.77% 68.28% 2015 0.337% 29,373,000 47,363,701 169.168 70.88% 2014 0.23360% 28,229,000 17,083,236 165.268 Tos
Schedule is intended to show information for 10 years. Information prior tothe 2014 valuation isnot available. However, adtional years wil be included as they become available
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Exhibit 17
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service cost $ 203,236 $ 218,448 $ 215,965 $ 222,182 $ 241,584 $ 228,855 $ 261,697 $ 263,958
Interest 1,240,763 1,219,062 1,200,584 1,189,675 1,149,952 1,151,059 1,132,997 1,116,022
Differences between expected and actual experience (305,011) 305,989 376,115 21,651 340,261 (240,897) 20,402 -
Changes of assumptions 477,264 - 447,422 - 32,003 - - -
Benefit payments (1,531,107) (1,312,901) (1,349,305) (1,206,028) (1,186,620) (1,123,037) (1,191,112) (1,083,833)
Net change in total pension liability $ 85,145 $ 430,598 $ 890,781 $ 227,480 $ 577,180 $ 15,980 $ 223,984 $ 296,147
Total pension liability - beginning 19,147,231 18,716,633 17,825,852 17,598,372 17,021,192 17,005,212 16,781,228 16,485,081
Total pension liability - ending (a) $ 19,232,376 $ 19,147,231 $ 18,716,633 $ 17,825,852 $ 17,598,372 $ 17,021,192 $ 17,005,212 $ 16,781,228
Plan fiduciary net position
Contributions - employer $ 518,030 $ 456,975 $ 447,436 $ 443,319 $ 450,897 $ 460,715 $ 425,544 $ 423,435
Contributions - employee 116,995 126,061 123,611 125,060 127,268 128,274 120,010 130,388
Net investment income 3,038,825 226,668 772,746 860,829 1,325,272 187,821 515,108 1,629,758
Benefit payments (1,531,107) (1,312,901) (1,349,305) (1,206,028) (1,186,620) (1,123,037) (1,191,112) (1,083,833)
Administrator charges (8,189) (8,164) (8,244) (7,790) (8,059) (7,361) (7,577) (9,166)
Other 282 (262) (485) (755) (1,167) (82) (108) 86
Net change in plan fiduciary net position $ 2,134,836 $ (511,623) $ (14,241) $ 214,635 $ 707,591 $ (353,670) $ (138,135) $ 1,090,668
Plan fiduciary net position - beginning 11,631,160 12,142,783 12,157,024 11,942,389 11,234,798 11,588,468 11,726,603 10,635,935
Plan fiduciary net position - ending (b) 13,765,996 $ 11,631,160 $ 12,142,783 $ 12,157,024 $ 11,942,389 $ 11,234,798 $ 11,588,468 $ 11,726,603
School Division’s net pension liability - ending (a) - (b) $ 5,466,380 $ 7,516,071 $ 6,573,850 $ 5,668,828 $ 5,655,983 $ 5,786,394 $ 5,416,744 $ 5,054,625
Plan fiduciary net position as a percentage of the total pension liability 71.58% 60.75% 64.88% 68.20% 67.86% 66.00% 68.15% 69.88%
Covered payroll $ 2,520,032 $ 2,670,960 $ 2,601,655 $ 2,610,768 $ 2,147,811 $ 2,648,956 $ 2,434,577 $ 2,612,301
School Division’s net pension liability as a percentage of covered payroll 216.92% 281.40% 252.68% 217.13% 263.34% 218.44% 222.49% 193.49%
Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available.
County of Russell, Virginia Schedule of Changes in Net Pension Liability and Related Ratios
Component Unit School Board (nonprofessional)
For the Measurement Dates of June 30, 2014 through June 30, 2021 Pension Plans
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“Ol
County of Russell, Vesinia
‘Schedule of Changes in Net Pension Liability and Related Ratios
‘Component Unit School Board (nonprofesional) Pension Plans
For the Measurement Dates of June 30, 2014 through June 30, 2024
Exhibit 17
Total pension liability Service cost
Interest
Differences between expected and actua experience Changes of assumptions
Benefit payments
Net change in total pension lability
Total pension liability - beginning
Total pension ability - ending (a)
Plan fiduciary net position Contributions - employer
Contribution - employee
Net lavestment income
Benefit payments
Administrator charges
Other
Net change in plan fiduciary net postion Plan fiduciary net position - beginning Plan fiduciary net position - ending (b)
‘School Division’s net pension laity - ending (a) - (>)
Plan fiduciary net position as a percentage of the total pension liability
Covered payroll
‘School Division’s net pension liability asa percenta covered payroll
s
s
2004 2020 2019 2018 2017 2016 2015 2014 203,236 § 21844 §~——215,965 $——222,18_ S241 SBA S «228,855 $261,607 $163,058 1,240,763 1,219,062 1,200,584 1,189,675 1,149,952 1,151,059 1.132997 1,116,022 (305,011) 305,989 376.115, 21651 340,261 (240,897) 20,402 7264 : a7 ad : 32,003 . . : (1531107) 14,312,901) 11,349,305) __ 11,206,008) __ (1,186,620) (1,123,037) (191.112) _ 1,083,833), B55 $430,598 S$ BBO,TBI $127,400 $7,180 $15,980 $223,984 $296,147 19,167,231 18,706,638 —17,825,852—17,598,372 17,024,192 17,005,212 16,781,228 16,485,081 19,232,376 $19,147,231 $18,710,633 _ $§1/,605,852_ $17,598,372 § 17,001,192_ $17,005,212. $ 16,781,208 518,030 § 456,975 § ase S483 S$ 508NT SHOTS SS SAA S28 ABS 116,995, 126,061 went 125,060 127.268 28.774 120,010 130,308 3,038,825, 226,668 mre 60,829 1,325,272 187,821 515,108 1,629,758 (1,331,107) (4,312,901) (1,349,305) (1,206,028) (1,186,620) 1,123,037) (1,191,112) (1,083,833), (6.189), 164), (6.244) (7.790) (6,059), (7,361) osm, (9,166), 2 (262) (435) (75) 167) 2) (108) 6 7,iba8H §——TBii,623) $—{azai) §—Tia935 §—ToT-S91 §—[95H5670) $198,135) $1,090,868 siest.1g0 12,142.78 s2ts7.0r4_11,942.389 1.234798 1,588,468 11,726,603 10,635,935 13,765,996 $11,631,160. § 12,142,783 § 1.157.024 § 11,942,389. § 1,234,798. $11,568,468. § 11,726,603 5,466,380 § 7,516,071 S 6,573,850 $5,668,828 $5,655,083 $5,786,394 S 5,416,744 § 5,054,625, 71.58% 0.73% 4.00% 68.20% 67.86% 6.00% 68.15% 9.08% 2520.02 $§ 2,670,900 § 2,601,655 $2,610,768 $2,147,811 S 2,688,956 S2434577 $2,612,301 216.925 281.405 252.688 27.13% 163.346 n18.44% 2.49% 193.496
Schedule is intended to show information fr 10 years. Information prior tothe 2014 valuation fenet available. However,
additonal years il be included as they Become avaiable
Exhibit 18
Contributions in Relation to Contributions
Contractually Contractually Contribution Employer’s as a % of Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll Date (1)* (2)* (3) (4) (5)
Primary Government 2022 $ 843,088 $ 843,088 $ - $ 6,608,888 12.76% 2021 798,031 798,031 - 6,234,472 12.80% 2020 719,102 719,102 - 6,303,680 11.41% 2019 681,397 681,397 - 6,020,423 11.32% 2018 760,630 760,630 - 6,123,587 12.42% 2017 718,233 718,233 - 4,808,206 14.94% 2016 807,684 807,684 - 5,467,426 14.77% 2015 794,360 794,360 - 5,368,165 14.80%
Component Unit School Board (nonprofessional) 2022 $ 508,337 $ 508,337 $ - $ 2,488,198 20.43% 2021 518,031 518,031 - 2,520,032 20.56% 2020 457,296 457,296 - 2,670,960 17.12% 2019 447,435 447,435 - 2,601,655 17.20% 2018 443,320 443,320 - 2,610,768 16.98% 2017 457,088 457,088 - 2,147,811 21.28% 2016 464,892 464,892 - 2,648,956 17.55% 2015 425,544 425,544 - 2,434,577 17.48% 2014 424,238 424,238 - 2,612,301 16.24% 2013 434,345 434,345 - 2,674,538 16.24%
Component Unit School Board (professional) 2022 $ 3,179,016 $ 3,179,016 $ - $ 19,697,485 16.14% 2021 3,135,782 3,135,782 - 19,381,708 16.18% 2020 3,005,168 3,005,168 - 19,575,194 15.35% 2019 2,854,000 2,854,000 - 18,519,029 15.41% 2018 2,958,000 2,958,000 - 18,374,518 16.10% 2017 2,607,000 2,607,000 - 17,982,879 14.50% 2016 2,503,615 2,503,615 - 17,914,579 13.98% 2015 2,509,000 2,509,000 - 17,363,701 14.45% 2014 1,991,484 1,991,484 - 17,083,236 11.66% 2013 2,037,610 2,037,610 - 17,475,216 11.66%
County of Russell, Virginia Schedule of Employer Contributions
For the Years Ended June 30, 2013 through June 30, 2022 Pension Plans
Schedule is intended to show information for 10 years. Prior to 2015, VASAP’s information was consolidated in the County’s totals and presented in the County report. Therefore, sufficient information to allocate the prior year balances is not available. Additional years will be included as they become available.
*Excludes contributions (mandatory and match on voluntary) to the defined contribution portion of the Hybrid plan.
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County of Russell, Virginia
‘Schedule of Employer Contributions
Pension Plans For the Years Ended June 30, 2013 through June 30, 2022
Exhibit 18
Contributions in
Relation to Contributions Contractually Contractually Contribution Employer’s, asa%of Required Required Deficiency Covered Covered Contribution Contribution (Excess) Payroll Payroll Date at @r @) 4) ©) Primary Government 2022 «$ 843,088 § 843,088 § : 6,608, 888 12.76% 2021 798,031 798,031 : 6,234,472 12.80% 2020 719,102 719,102 : 6,303,680 11.41% 2019 681,397 681,397 : 6,020,423 11.32% 2018 760,630 760,630 - 6,123,587 12.42% 2017 718,233 718,233, : 4,808,206 14.94% 2016 807,684 807,684 - 5,467,426 14.77% 2015 794,360 794,360 - 5,368,165 14.80% ‘Component Unit School Board (nonprofessional) 2022 «$ 508,337 § 508,337 $ - 2,488,198 20.43% 2021 518,031 518,031 - 2,520,032 20.56% 2020 457,296 457,296 : 2,670,960 17.12% 2019 447,435 447,435 - 2,601,655 17.20% 2018 443,320 443,320 - 2,610,768 16.98% 2017 457,088 457,088 : 2,147,811 21.28% 2016 464,892 464,892 - 2,648,956 17.55% 2015 425,544 425,544 - 2,434,577 17.48% 2014 424,238 424,238 - 2,612,301 16.24% 2013 434,345 434,345 : 2,674,538 16.24% ‘Component Unit School Board (professional) 2022 $ 3,179,016 $ 3,179,016 $ : 19,697,485 16.14% 2021 3,135,782 3,135,782 : 19,381,708 16.18% 2020 3,005,168 3,005,168 : 19,575,194 15.35% 2019 2,854,000 2,854,000 : 18,519,029 15.41% 2018 2,958,000 2,958,000 : 18,374,518 16.10% 2017 2,607,000 2,607,000 : 17,982,879 14.50% 2016 2,503,615 2,503,615 - 17,914,579 13.98% 2015 2,509,000 2,509,000 : 17,363,701 14.45% 2014 41,991,484 41,991,484 : 17,083,236 11.66% 2013 2,037,610 2,037,610 : 17,475,216 11.66%
Schedule is intended to show information for 10 years. Prior to 2015, VASAP’s information was consolidated in the County’s totals and presented in the County report. Therefore, sufficient information to allocate the prior year balances
is not available. Additional years will be included as they become available.
“Excludes contributions (mandatory and match on voluntary) to the defined contribution portion of the Hybrid plan.
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Exhibit 19
All Others (Non 10 Largest) – Non-Hazardous Duty:
All Others (Non 10 Largest) – Hazardous Duty:
Component Unit School Board - Professional Employees
No changeDiscount Rate
No change
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age
Disability Rates
Salary Scale
Discount Rate
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
No change
No change
No change
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
No change
Retirement Rates
Withdrawal Rates
Changes of assumptions – The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Salary Scale
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Adjusted rates to better fit experience and changed final
Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Largest 10 Hazardous Duty
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates
Disability Rates
Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Adjusted rates to better fit experience at each age and service decrement through 9 years of service
No change
Withdrawal Rates
No change
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates
Line of Duty Disability
County of Russell, Virginia Notes to Required Supplementary Information
For the Year Ended June 30, 2022 Pension Plans
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the prior
No change
No change
No change
Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Withdrawal Rates
Disability Rates
Salary Scale
Discount Rate
Line of Duty Disability
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Exhibit 19
County of Russell, Virginia Notes to Required Supplementary Information
Pension Plans
For the Year Ended June 30, 2022
Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior
‘Changes of assumptions - The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, ‘which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the
experience study and VRS Board action are as follow:
All Others (Non 10 Largest) - Non-Hazardous Duty:
[Mortality Rates (pre-retirement, post-retirement lhealthy, and disabled)
[Update to Pub-2010 public sector mortality tables, For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
[Adjusted rates to better fit experience for Plan 1j set separate rates based on experience for Plan 2/Hybrid; changed final retirement age
lWithdrawal Rates
[Adjusted rates to better fit experience at each age and service |decrement through 9 years of service
Disability Rates No change [salary Scale INo change Line of Duty Disability INo change Discount Rate No change
Al
Others (Non 10 Largest) - Hazardous Duty:
[Mortality Rates (pre-retirement, post-retirement lhealthy, and disabled)
[Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
[Adjusted rates to better fit experience and changed final
Withdrawal Rates
Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be Imore consistent with Locals Largest 10 Hazardous Duty
Disability Rates No change [Salary Scale INo change Line of Duty Disability INo change Discount Rate [No change
‘Component Unit School Board - Professional Employees
[Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
[Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
[Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates
[Adjusted rates to better fit experience at each age and service |decrement through 9 years of service
Disability Rates INo change [salary Scale [No change Discount Rate [No change
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Exhibit 20
2022 2021 2020 2019 2018
Total OPEB liability
Service cost $ 39,498 $ 38,376 $ 14,265 $ 15,523 $ 16,038
Interest 17,805 17,351 13,941 14,342 13,000
Changes in assumptions (103,909) 3,530 434,635 11,569 (11,427)
Effect of economic/demographic gains or losses 36,224 - (88,594) - -
Benefit payments (26,812) (15,649) (7,461) (17,342) (18,508)
Net change in total OPEB liability $ (37,194) $ 43,608 $ 366,786 $ 24,092 $ (897)
Total OPEB liability - beginning 798,143 754,535 387,749 363,657 364,554
Total OPEB liability - ending $ 760,949 $ 798,143 $ 754,535 $ 387,749 $ 363,657
Covered payroll $ 6,388,552 $ 6,096,747 $ 6,096,747 $ 6,190,566 $ 6,190,566
County’s total OPEB liability (asset) as a percentage of covered payroll 11.91% 13.09% 12.38% 6.26% 5.87%
County of Russell, Virginia Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
Primary Government For the Measurement Dates of June 30, 2018 through June 30, 2022
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
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“SOl-
County of Russell, Virginia
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
Primary Government.
For the Measurement Dates of June 30, 2018 through June 30, 2022
Exhibit 20
2022 2021 2020 2019 2018 Total OPEB liability
Service cost s 39,498 $ 38,376 § 14,265 $ 15,523 16,038 Interest 17,805 17,351 13,941 14,342 13,000 CChanges in assumptions (103,909) 3,530 434,635 11,569 (11,427) Effect of economic/demographic gains or losses 36,224 (88,594)
Benefit payments (26,812) (15,649) (7,461) (17,342) (18,508) ‘Net change in total OPEB liability 5 (G7,194) § 3,608 $ 366,786 § 24,092 (697) Total OPEB liability - beginning 798,143 754,535, 387,749, 363,657 364,554 Total OPEB liability - ending 5 760,949 $ 798,143. § 754,535. § 387,749 363,657, Covered payroll s 6,388,552 § 6,096,747 § 6,096,747 § 6,190,566 6,190,566 County’s total OPEB liability (asset) as a percentage of
covered payroll 11.91% 13.09% 12.38% 6.26% 5.87%
Schedule fs intended to show information for 10 years. Additional years will be included as they become available.
Exhibit 21
Valuation Date: 7/1/2021 Measurement Date: 6/30/2022
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
Methods and assumptions used to determine OPEB liability:
County of Russell, Virginia Notes to Required Supplementary Information - County OPEB
For the Year Ended June 30, 2022
Healthcare Trend Rate The healthcare trend rate assumption starts at 0.50% in 2021 amd 6.10% in 2022 then gradually declines to 3.90% in 2073 and later.
Actuarial Cost Method Entry age normal, level percentage of pay Discount Rate 3.54% as of June 30, 2022
Inflation 2.50% 2.16% as of June 30, 2021
The post-disablement mortality rates of General Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
The post-disablement mortality rates of Publci Safety Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males set forward 2 years; unisex using 100% male.
Mortality Rates The pre-retirement mortality rates for General Employees were calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service- related.
Salary Increase Rates The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50% increase for 20 or more years of service.
Retirement Age The average age at retirement is 61.
The pre-retirement mortality rates for Public Safety Employees were calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males 90% of rates; females set forward 1 year. 35% of deaths are assumed to be service- related.
The post-retirement mortality rates for General Employees were calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase compounded from ages 70 to 85.
The post-retirement mortality rates for Public Safety Employees were calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year with 1.0% increase compounded from ages 70 to 90; females set forward 3 years.
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Exhibit 21
County of Russell, Virginia Notes to Required Supplementary Information - County OPEB For the Year Ended June 30, 2022
Valuation Date: 7rir2021 Measurement Date: 6/30/2022
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
‘Methods and assumptions used to determine OPEB liability
[Actuarial Cost Method
Entry age normal, level percentage of pay
Discount Rate
3.54% as of June 30, 2022 2.16% as of June 30, 2021
laflation
2.50%
Healthcare Trend Rate
[The healthcare trend rate assumption starts at 0.50% in 2021 amd 6.10% in| 2022 then gradually declines to 3.90% in 2073 and later.
Salary Increase Rates
[The salary Increase rate starts at 5.35% for 1 year of service and gradually| |dectines to 3.50% increase for 20 or more years of service.
[Retirement Age
[The average age at retirement is 61.
[Mortality Rates
[The pre-retirement mortality rates for General Employees were calculated| lusing RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 land older projected with Scale BB to 2020; males set back 1 year, 85% of| rates; females setback 1 year. 25% of deaths are assumed to be service: related.
[The pre-retirement mortality rates for Public Safety Employees were| |calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant Rates| lat ages 81 and older projected with Scale BB to 2020; males 90% of rates; females set forward 1 year. 35% of deaths are assumed to be service, related.
[The post-retirement mortality rates for General Employees were calculated| lusing RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 land older projected with Scale BB to 2020; males set forward 1 year; lremales set back 1 year with 1.5% increase compounded from ages 70 to 85.
[The post-retirement mortality rates for Public Safety Employees were| [calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates| lat ages 50 and older projected with Scale BB to 2020; males set forward 1 lyear with 1.0% increase compounded from ages 70 to 90; females set| lforward 3 years.
[The post-disablement mortality rates of General Employees were calculated| lusing RP-2014 Disabled Mortality Rates projected with Scale 8B to 2020; males 115% of rates; females 130% of rates.
[The post-disablement mortality rates of Publci Safety Employees were| [calculated using RP-2014 Disabled Mortality Rates projected with Scale B8 to| 2020} males set forward 2 years; unisex using 100% male.
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Exhibit 22
2022 2021 2020 2019 2018
Total OPEB liability
Service cost $ 529,129 $ 436,250 $ 229,725 $ 226,831 $ 235,586
Interest 255,859 256,452 277,894 297,553 275,959
Changes in assumptions 103,942 39,380 4,554,327 201,429 (205,110)
Effect of economic/demographic gains or losses (62,179) - (1,076,097) - -
Benefit payments (569,865) (597,551) (457,831) (496,549) (490,936)
Net change in total OPEB liability $ 256,886 $ 134,531 $ 3,528,018 $ 229,264 $ (184,501)
Total OPEB liability - beginning 11,599,608 11,465,077 7,937,059 7,707,795 7,892,296
Total OPEB liability - ending $ 11,856,494 $ 11,599,608 $ 11,465,077 $ 7,937,059 $ 7,707,795
Covered payroll $ 22,919,616 $ 21,427,078 $ 21,427,078 $ 20,503,347 $ 20,503,347
School Board’s total OPEB liability (asset) as a percentage of covered payroll 51.73% 54.14% 53.51% 38.71% 37.59%
County of Russell, Virginia Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
Component Unit School Board For the Measurement Dates of June 30, 2018 through June 30, 2022
Schedule is intended to show information for 10 years. Additional years will be included as they become available.
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-LOL-
County of Russell, Virginia
Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios
‘Component Unit School Board
For the Measurement Dates of June 30, 2018 through June 30, 2022
Exhibit 22
‘Total OPEB lability
Service cost
Interest
Changes in assumptions
Effect of economic/demographic gains or losses Benefit payments
Net change in total OPEB lability
‘otal OPEB lability - beginning
‘Total OPEB lability - ending
Covered payroll
School Board’s total OPEB liability (asset) as a percentage of covered payroll
2022 2021 2020 2019 2018 5 529,129 § 436,250 209,75 § 726,831 235,586 255,859 256,452 277,894 297,53 275,959
103,942 39,380 4,554,327 201,429 (208,110)
(02,179) : (1,076,097) .
(569,865) 597,551) (457,831) (496,549) (490,936)
s 756,885 $ 134,531 S 3,528,018 $ 729,264 (184,501) 11,599,608 11,465,077 7,937,059. 7,701,795 7,892,296
s 11,856,484 $ 17,599,608" 71,465,077 $ 7,937,059 7,107,795 s 22,919,616 $ 2,407,078 § 21,427,078 $ 20,503,347 20,503,347 51.73% 54.14% 53.51% 38.71% 37.59%
Schedule is intended to show information for 10 years. Additional years willbe included as they become available.
Exhibit 23
Valuation Date: 7/1/2021 Measurement Date: 6/30/2022
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
Methods and assumptions used to determine OPEB liability:
Salary Increase Rates The salary increase rate starts at 5.35% for 1 year of service and gradually declines to 3.50% for 20 or more years of service.
Discount Rate 3.54% as of June 30, 2022
County of Russell, Virginia Notes to Required Supplementary Information - School OPEB
For the Year Ended June 30, 2022
Actuarial Cost Method Entry age normal, level percentage of pay
The post-retirement mortality rates for Teachers were calculated using RP-2014 White Collar Employee Rates to age 49, White Collar Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males 1% increase compounded from ages 70 to 90; females set back 3 years with 1.5% increase compounded from ages 65 to 70 and 2.0% increase compounded from ages 75 to 90.
The post-disablement mortality rates of General Employees were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates.
2.16% as of June 30, 2021
The pre-retirement mortality rates for Teachers were calculated using RP-2014 White Collar Employee Rates to age 80, White Collar Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; 5% of deaths are assumed to be service-related.
Retirement Age The average age at retirement is 61. Mortality Rates The pre-retirement mortality rates for General Employees were
calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with Scale BB to 2020; males set back 1 year, 85% of rates; females setback 1 year. 25% of deaths are assumed to be service-related.
Inflation 2.50% Healthcare Trend Rate The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10%
in 2022 then gradually declines to 3.90% in 2073 and later.
The post-disablement mortality rates of Teachers were calculated using RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; 115% of rates for males and females.
The post-retirement mortality rates for General Employees were calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females set back 1 year with 1.5% increase compounded from ages 70 to 85.
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Exhibit 23 County of Russell, Virginia
Notes to Required Supplementary Information - School OPEB
For the Year Ended June 30, 2022
Valuation Date: Measurement Date:
7/4/2021 6/30/2022
No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits.
‘Methods and assumptions used to determine OPEB liabilit
[Actuarial Cost Method
[Entry age normal, level percentage of pay
Discount Rate 3.54% as of June 30, 2022 12.16% as of June 30, 2021 Inflation [2.50%
Healthcare Trend Rate
[The healthcare trend rate assumption starts at 0.50% in 2021 and 6.10%) jin 2022 then gradually dectines to 3.90% in 2073 and later.
Salary Increase Rates
[The salary increase rate starts at 5.35% for 1 year of service and lgradually declines to 3.50% for 20 or more years of service.
Retirement Age
[The average age at retirement is 61.
[Mortality Rates
[The pre-retirement mortality rates for General Employees were| calculated using RP-2014 Employee Rates to age 80, Healthy Annuitant| lRates at ages 81 and older projected with Scale BB to 2020; males set| lback 1 year, 85% of rates; females setback 1 year. 25% of deaths are| lassumed to be service-related.
[The pre-retirement mortality rates for Teachers were calculated using} lRP-2014 White Collar Employee Rates to age 80, White Collar Healthy) JAnnuitant Rates at ages 81 and older projected with Scale BB to 2020; 5x of deaths are assumed to be service-related.
[The post-retirement mortality rates for General Employees were| calculated using RP-2014 Employee Rates to age 49, Healthy Annuitant| lRates at ages 50 and older projected with Scale BB to 2020; males set| lrorward 1 year; females set back 1 year with 1.5% increase compounded from ages 70 to 85.
{The post-retirement mortality rates for Teachers were calculated using} JRP-2014 White Collar Employee Rates to age 49, White Collar Healthy) JAnnuitant Rates at ages 50 and older projected with Scale BB to 2020; lmales 1% increase compounded from ages 70 to 90; females set back 3 lyears with 1.5% increase compounded from ages 65 to 70 and 2.0%) lincrease compounded from ages 75 to 90.
[The post-disablement mortality rates of General Employees werel calculated using RP-2014 Disabled Mortality Rates projected with Scale| 188 to 2020; males 115% of rates; females 130% of rates.
HThe post-disablement mortality rates of Teachers were calculated using| IRP-2014 Disabled Mortality Rates projected with Scale BB to 2020; 115%| lof rates for males and females.
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Exhibit 24
Employer’s Proportionate Share
Employer’s of the Net GLI OPEB Employer’s Proportionate Liability (Asset) Plan Fiduciary
Proportion of the Share of the Employer’s as a Percentage of Net Position as a Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset) Payroll (3)/(4) GLI OPEB Liability (2) (3) (4) (5) (6)
Primary Government 0.0305% $ 354,521 $ 6,285,948 5.64% 67.45%
0.0309% 515,504 6,357,959 8.11% 52.64% 0.0308% 500,384 6,028,822 8.30% 52.00% 0.0325% 494,000 6,184,666 7.99% 51.22% 0.0309% 465,000 5,704,306 8.15% 48.86%
Component Unit School Board (nonprofessional) 0.0122% $ 142,390 $ 2,524,311 5.64% 67.45%
0.0130% 216,949 2,675,341 8.11% 52.64% 0.0133% 216,264 2,604,399 8.30% 52.00% 0.0138% 210,000 2,629,348 7.99% 51.22% 0.0144% 216,000 2,654,927 8.14% 48.86%
Component Unit School Board (professional) 0.0940% $ 1,094,065 $ 19,400,731 5.64% 67.45%
0.0953% 1,589,734 19,605,574 8.11% 52.64% 0.0945% 1,537,278 18,519,029 8.30% 52.00% 0.0966% 1,468,000 18,376,099 7.99% 51.22% 0.0978% 1,471,000 18,034,586 8.16% 48.86%
2021
2021
2021
2019
County of Russell, Virginia Schedule of Employer’s Share of Net OPEB Liability
Group Life Insurance (GLI) Plan For the Measurement Dates of June 30, 2017 through June 30, 2021
2017
Date (1)
2017 2018
2018
2019
2019
2020
2020
2020
2018 2017
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available.
-109-
Exhibit 24 County of Russel, Virginia ‘Schedule of Employer’s Share of Net OPEB Liability Group Life insurance (GL!) Plan For the Measurement Dates of June 30, 2017 through June 30, 2021,
Employer’s Proportionate Share Employer’s of the Net GLI OPEB Employer’s Proportionate Liability (Asset) Plan Fiduclary Proportion of the Share of the Employer’s asa Percentage of, Net Position as a Net GLI OPEB Net GLI OPEB Covered Covered Payroll Percentage of Total
Date ability (Asset) Liability (Asset) Payroll aya) GLI OPEB Liability,
o @ e) “ ©) © Primary Government
2021 0.0305% § 354,521 § 6,285,948 5.60% 67.45%
2020 0.009% 515,504 6,357,959 ror 52.64%
2019 0.0308% 500,386 6,028,822 8.308 52.00%
2018 0.0325% 494,000 6,184,666 7.99% 51.22%
2017 0.0309% 465,000 5,704,306 ase 48.86% Component Unit School Board (nonprofessional)
2021 0.01% § 142,390 § 2,524,311 S64 07.45%
2020 0.0130% 216,949 2,675,341 ants 52.64%
2019 0.0133% 216,264 2,604,399 8.308 52.00%
2018 0.018% 210,000 2,629,348 1.99% 51.22%
2017 o.o4ax, 216,000 2,654,927 8.14% 48.86% ‘Component Unit School Board (profesional)
2021 0.09405 § 1,094,065 § 19,400,731 5.64% 67.45%
2020 0.0953% 1,589,734 19,605,574 ars 52.64%
2019 0.0945% 41537,278 18,519,029 8.208 52.00%
2018 0.0966%, 1,468,000 18,376,099 7.99% 51.20%
2017 0.0978% 41,471,000 18,034,586 8.168 48.86%
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation Is not available. However, additional years will be Included as they become available.
-109-
Exhibit 25
Contributions in Relation to Contributions
Contractually Contractually Contribution Employer’s as a % of Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll Date (1) (2) (3) (4) (5)
Primary Government 2022 $ 36,041 $ 36,041 $ - $ 6,674,213 0.54% 2021 33,944 33,944 - 6,285,948 0.54% 2020 33,061 33,061 - 6,357,959 0.52% 2019 31,276 31,276 - 6,028,822 0.52% 2018 32,161 32,161 - 6,184,666 0.52% 2017 29,665 29,665 - 5,704,306 0.52% 2016 26,515 26,515 - 5,524,027 0.48% 2015 26,057 26,057 - 5,428,571 0.48% 2014 26,130 26,130 - 5,443,723 0.48% 2013 26,774 26,774 - 5,577,961 0.48%
Component Unit School Board (nonprofessional) 2022 $ 13,463 $ 13,463 $ - $ 2,493,223 0.54% 2021 13,631 13,631 - 2,524,311 0.54% 2020 13,912 13,912 - 2,675,341 0.52% 2019 13,543 13,543 - 2,604,399 0.52% 2018 13,673 13,673 - 2,629,348 0.52% 2017 13,806 13,806 - 2,654,927 0.52% 2016 12,715 12,715 - 2,648,956 0.48% 2015 11,849 11,849 - 2,468,575 0.48% 2014 12,548 12,548 - 2,614,141 0.48% 2013 12,838 12,838 - 2,674,538 0.48%
Component Unit School Board (professional) 2022 $ 106,394 $ 106,394 $ - $ 19,702,646 0.54% 2021 104,764 104,764 - 19,400,731 0.54% 2020 101,949 101,949 - 19,605,574 0.52% 2019 96,000 96,000 - 18,519,029 0.52% 2018 95,556 95,556 - 18,376,099 0.52% 2017 93,780 93,780 - 18,034,586 0.52% 2016 86,114 86,114 - 17,940,378 0.48% 2015 83,384 83,384 - 17,371,656 0.48% 2014 82,222 82,222 - 17,129,577 0.48%
2013 83,953 83,953 - 14,490,261 0.58%
County of Russell, Virginia Schedule of Employer Contributions
Group Life Insurance (GLI) Plan For the Years Ended June 30, 2013 through June 30, 2022
-110-
County of Russell, Virginia
Schedule of Employer Contributions
Group Life Insurance (GLI) Plan For the Years Ended June 30, 2013 through June 30, 2022
Exhibit 25
Contributions in
Relation to Contributions Contractually Contractually Contribution Employer’s asa% of Required Required Deficiency Covered Covered Contribution Contribution (Excess) Payroll Payroll Date oO 2 @) Oy © Primary Government 22 $ 36,041 $ 36,041 6,674,213, 0.54% 2021 33,944 33,944 6,285,948, 0.54% 2020 33,061 33,061 6,387,959 0.52% 2019 31,276 31,276 6,028,822 0.52% 2018, 32,161 32,161 6,184,666 0.52% 2017 29,665 29,665 5,704,306 0.52% 2016 26,515, 26,515 5,524,027 0.48% 2015 26,057 26,057 5,428,571 0.48% 2014 26,130 26,130 5,443,723 0.48% 2013, 26,774 26,774 5,577,961 0.48% Component Unit School Board (nonprofessional) 22 $ 13,463 $ 13,463 2,493,223, 0.54% 2021 13,631 13,631 2,524,311 0.54% 2020 13,912 13,912 2,675,341 0.52% 2019 13,543 13,543, 2,604,399 0.52% 2018 13,673 13,673 2,629,348 0.52% 2017 13,805 13,806 2,654,927 0.52% 2016 12,715 12,715 2,648,956 0.48% 2015, 11,849 11,849 2,468,575, 0.48% 2014 12,548 12,548, 2,614,141 0.48% 2013 12,838 12,838 2,674,538 0.48% Component Unit School Board (professional) 22 § 106,394 § 106,394 19,702,646 0.54% 2021 104,764 104,764 19,400,731 0.54% 2020 101,949 101,949 19,605,574 0.52% 2019 96,000 196,000 18,519,029 0.52% 2018 95,556 95,556 18,376,099 0.52% 2017 93,780 93,780 18,034,586 0.52% 2016 86,114 86,114 17,940,378 0.48% 2015, 83,384 83,384 17,371,656 0.48% 2014 82,222 82,222 17,129,577 0.48% 2013, 3,953, 83,953 14,490,261 0.58%
-110-
Exhibit 26
Teachers
Non-Largest Ten Locality Employers - General Employees
Non-Largest Ten Locality Employers - Hazardous Duty Employees
No change
Discount Rate No change
No change
Salary Scale
Line of Duty Disability
No change
No change
No change
Disability Rates No change
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Discount Rate No change
County of Russell, Virginia Notes to Required Supplementary Information
Group Life Insurance (GLI) Plan For the Year Ended June 30, 2022
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates
Salary Scale
Line of Duty Disability
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates
Discount Rate
No change
No change
Salary Scale No change
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation.
Changes of assumptions – The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
-111-
Exhibit 26
County of Russell, Virginia Notes to Required Supplementary Information Group Life Insurance (GLI) Plan For the Year Ended June 30, 2022
Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial
valuation.
Changes of assumptions - The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board
action are as follows:
Teachers ‘Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates
Withdrawal Rates
Disability Rates Salary Scale Discount Rate
Non-Largest Ten Locality Employers - General Employees ‘Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates
‘Withdrawal Rates,
Disability Rates Salary Scale
Line of Duty Disability, Discount Rate
Update to Pub-2010 public sector mortality tables. For future mortality Improvements, replace load with a modified Mortality Improvement Scale MP-2020
‘Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Adjusted rates to better fit experience at each age and service decrement through 9 years of service
No change
No change
No change
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
‘Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Adjusted rates to better fit experience at each age and service decrement through 9 years of service
No change
No change
No change
No change
Non-Largest Ten Locality Employers - Hazardous Duty Employees
‘Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates
‘Withdrawal Rates
Disability Rates Salary Scale
Line of Duty Disability, Discount Rate
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Adjusted rates to better fit experience and changed final retirement. age from 65 to 70,
Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more ‘consistent with Locals Top 10 Hazardous Duty
No change No change No change No change
11
Exhibit 27
2021 2020 2019 2018 2017
Total HIC OPEB Liability
Service cost $ 2,042 $ 2,044 $ 1,956 $ 1,884 $ 1,785
Interest 6,453 6,959 7,056 7,367 7,343
Changes of assumptions 543 - 2,217 - (1,681)
Differences between expected and actual experience 3,616 (2,855) 2,390 (4,641) -
Benefit payments (13,469) (13,811) (8,828) (9,286) (4,926)
Net change in total HIC OPEB liability $ (815) $ (7,663) $ 4,791 $ (4,676) $ 2,521
Total HIC OPEB Liability - beginning 102,337 110,000 105,209 109,885 107,364
Total HIC OPEB Liability - ending (a) $ 101,522 $ 102,337 $ 110,000 $ 105,209 $ 109,885
Plan fiduciary net position
Contributions - employer $ 2,966 $ 2,670 $ 2,788 $ 4,374 $ 3,731
Net investment income 19,218 1,702 5,480 6,182 9,214
Benefit payments (13,469) (13,811) (8,828) (9,286) (4,926)
Administrator charges (200) (149) (117) (141) (148)
Other - (1) (7) (472) 472
Net change in plan fiduciary net position $ 8,515 $ (9,589) $ (684) $ 657 $ 8,343
Plan fiduciary net position - beginning 79,118 88,707 89,391 88,734 80,391
Plan fiduciary net position - ending (b) $ 87,633 $ 79,118 $ 88,707 $ 89,391 $ 88,734
Employer’s net HIC OPEB liability - ending (a) - (b) $ 13,889 $ 23,219 $ 21,293 $ 15,818 $ 21,151
Plan fiduciary net position as a percentage of the total HIC OPEB liability 86.32% 77.31% 80.64% 84.97% 80.75%
Covered payroll $ 1,191,154 $ 1,285,580 $ 1,327,521 $ 1,562,251 $ 1,332,239
Employer’s net HIC OPEB liability as a percentage of covered payroll 1.17% 1.81% 1.60% 1.01% 1.59%
County of Russell, Virginia Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios
Health Insurance Credit (HIC) Plan For the Measurement Dates of June 30, 2017 through June 30, 2021
Primary Government
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available.
-112-
Bale
County of Russell, Virginia
Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios
Primary Government Health Insurance Credit (HIC) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Exhibit 27
‘Total HIC OPEB Liability Service cost
Interest
Changes of assumptions
Differences between expected and actual experience Benefit payments
Net change in total HIC OPEB lability
“Total HIC OPEB Liability - beginning
“Total HIC OPEB Liability - ending (a)
Plan fiductary net position Contributions - employer
Net favestment income
Benefit payments
‘Administrator charges
other
Net change in plan fiductary net position Plan fiductary net position - beginning Plan fiduciary net position - ending (b)
Employer’s net HIC OPEB liability - ending (a) - (0)
Pan fiduciary net position as a percentage ofthe total HIC OPEB lability
Covered payroll
Employer’s net HIC OPEB liability asa percentage of covered payroll
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation isnot avaiable.
202 2020 2019 2018 2017 s 2,042 2,044 1,956 1884 § 1,785 6,453 6,959 7,056 7,367 7,343 54 227 (1681)
3,616 2.855) 2,390 (461) (13,469) (3.8m) (2,828) (9,286) (4.926) s 15) 7.663) 4091 (670) § 7.52 102,337 110,000 105,208 109,885 107,364 s 101,522 702, 357, 710,000 705,208" $ 709.885) s 2,966 2,670 2,788 4374 $ 31 9218 1,702 5,480 6,182 9214 (13,469) (3,811) (6,828) (9,286) 4926) (200) (149) a7) (ia) (148) i ful (a7) an s 3515 7588) ea) OTS B38 nie 88,707 99,391 88,734 80,391 s 7635 73,8 38,707 B71 ERE s 13,889 23.219 24,298 15,818 § 21151 86.32% Tt 80.64% 24.97% 80.75% s 1,191,154 1,285,580 4,327,521 1,562,251 § 1,332,239 17% 1.81% 1.60% 1.01% 1.59%
However, additonal years will be included as they become available.
Exhibit 28
2021 2020 2019 2018 2017
Total HIC OPEB Liability
Service cost $ 3,775 $ 8,474 $ 8,086 $ 9,113 $ 12,000
Interest 43,658 18,119 19,598 18,227 17,000
Changes of benefit terms - 33,639 - - -
Changes of assumptions 5,340 84,784 20,714 - (42,000)
Differences between expected and actual experience (270,374) 18,268 507 (1,089) -
Benefit payments (33,506) (34,855) (35,194) (33,696) (34,000)
Other - - - (5,145) -
Net change in total HIC OPEB liability $ (251,107) $ 128,429 $ 13,711 $ (12,590) $ (47,000)
Total HIC OPEB Liability - beginning 663,550 535,121 521,410 534,000 581,000
Total HIC OPEB Liability - ending (a) $ 412,443 $ 663,550 $ 535,121 $ 521,410 $ 534,000
Plan fiduciary net position
Contributions - employer $ 88,957 $ 32,853 $ 32,001 $ 31,329 $ 32,000
Net investment income 213 - - - -
Benefit payments (33,506) (34,855) (35,194) (33,696) (34,000)
Administrative expense (49) - - - -
Other - - - (495) -
Net change in plan fiduciary net position $ 55,615 $ (2,002) $ (3,193) $ (2,862) $ (2,000)
Plan fiduciary net position - beginning (43,057) (41,055) (37,862) (35,000) (33,000)
Plan fiduciary net position - ending (b) $ 12,558 $ (43,057) $ (41,055) $ (37,862) $ (35,000)
Employer’s net HIC OPEB liability - ending (a) - (b) $ 399,885 $ 706,607 $ 576,176 $ 559,272 $ 569,000
Plan fiduciary net position as a percentage of the total HIC OPEB liability 3.04% -6.49% -7.67% -7.26% -6.55%
Covered payroll $ 2,520,032 $ 2,670,960 $ 2,601,655 $ 2,610,768 $ 2,645,183
Employer’s net HIC OPEB liability as a percentage of covered payroll 15.87% 26.46% 22.15% 21.42% 21.51%
County of Russell, Virginia Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios
Component Unit School Board (nonprofessional) Health Insurance Credit (HIC) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available.
-113-
“ELL
County of Russell, Virginia
Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios
‘Component Unit School Board (nonprofessional) Health insurance Credit (HIC) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Exhibit 28
Total HIC OPEB Liability Service cost
Interest
Changes of benefit terms
Changes of assumptions
Differences between expected and actual experience Benefit payments
other
Net change in total HIC OPEB lability
Total HIC OPEB Liability - beginning
“Total HIC OPEB Liability - ending (a)
Plan fiduciary net position Contributions - employer
Net investment income
Benefit payments
‘Administrative expense
other
Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b)
Employers net HIC OPEB liability - ending (a) -()
Plan fiduciary net position as a percentage of the total HIC OPEB lik
Covered payroll
Employer’s net HIC OPEB liability as a percentage of covered payroll
2021, 2020 2019 2018 2017 s 3,775 § 8474 8,086 9113 § 12,000 43,658, 13,119 19,598 18,227 17,000 : 33,639 : . : 5.340 84,784 20,714 (42,000) (270,374) 18,268 307 (1,089) (23,306) (24,855) (35,194) 63,696) (24,000)
- (5,145) s TIO § Ta Ea 112,590) $ 7,000) 663,550 535,121 521,410 534,000 581,000 s AHS § 253,50 335,21 BU, ATO § 334,000 s 88,957 § 32,853 32,001 31,329 $ 32,000 23 . (23,506) (04,855) (35,194) (3,696) (24,000)
- . : .
s Bes $ oor By 2.82) $ 000) (43,057) (41,055) (37,862) (25,000) (33,000) s 72,558 $ (5,057) (4,055) (7.862) § 25,000) s 399,885. $ 706,607 576,176 sear $ 569,000 3.066 6.49% 761% 7.26% 6.59% s 2,520,032 § 2,670,960 2,601,655 2,610,768 § 2,645,183 15.87% 26.46% 22.15% 21.4r% 21.51%
Schedule Is intended to show Information for 10 years. Information prior to the 2017 valuation isnot available. However, addtional years wil be Included as they become available,
Exhibit 29
Contributions in Relation to Contributions
Contractually Contractually Contribution Employer’s as a % of Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll Date (1) (2) (3) (4) (5)
Primary Government 2022 $ 3,410 $ 3,410 $ - $ 1,311,667 0.26% 2021 3,097 3,097 - 1,191,154 0.26% 2020 2,700 2,700 - 1,285,580 0.21% 2019 2,763 2,763 - 1,327,521 0.21% 2018 4,374 4,374 - 1,562,251 0.28% 2017 3,736 3,736 - 1,332,239 0.28% 2016 3,572 3,572 - 1,190,516 0.30% 2015 3,321 3,321 - 1,106,909 0.30% 2014 757 757 - 1,081,402 0.07% 2013 3,902 3,902 - 5,574,375 0.07%
Component Unit School Board (nonprofessional) 2022 $ 87,833 $ 87,833 $ - $ 2,488,198 3.53% 2021 88,957 88,957 - 2,520,032 3.53% 2020 32,853 32,853 - 2,670,960 1.23% 2019 32,001 32,001 - 2,601,655 1.23% 2018 31,329 31,329 - 2,610,768 1.20% 2017 31,742 31,742 - 2,645,183 1.20% 2016 25,165 25,165 - 2,648,956 0.95% 2015 23,128 23,128 - 2,434,577 0.95% 2014 15,413 15,413 - 2,612,301 0.59% 2013 15,780 15,780 - 2,674,538 0.59%
County of Russell, Virginia Schedule of Employer Contributions Health Insurance Credit (HIC) Plan
For the Years Ended June 30, 2013 through June 30, 2022
-114-
County of Russell, Virginia
‘Schedule of Employer Contributions Health Insurance Credit (HIC) Plan
For the Years Ended June 30, 2013 through June 30, 2022
Exhibit 29
Contributions in
Relation to Contributions Contractually Contractually Contribution Employer’s asa%of Required Required Deficiency Covered Covered Contribution Contribution (Excess) Payroll Payroll Date (1) Q) @) 4) ©) Primary Government 202 0 «§ 3,410 § 3,410 § : 4,311,667 0.26% 2021 3,097 3,097 : 4,191,154 0.26% 2020 2,700 2,700 : 1,285,580 0.21% 2019 2,763 2,763 : 4,327,521 0.21%, 2018 4,374 4,374 : 41,562,251 0.28% 2017 3,736 3,736 : 4,332,239 0.28% 2016 3,572 3,572 : 1,190,516 0.30% 2015, 3,321 3,321 : 1,106,909 0.30% 2014 757 757 - 4,081,402 0.07% 2013 3,902 3,902 : 5,574,375 0.07% ‘Component Unit School Board (nonprofessional) 202 © § 87,833 § 87,833 $ : 2,488,198 3.53% 2021 88,957 88,957 : 2,520,032 3.53% 2020 32,853 32,853 : 2,670,960 1.23% 2019 32,001 32,001 : 2,601,655 1.23% 2018 31,329 31,329 : 2,610,768 1.20% 2017 31,742 31,742 : 2,645,183 1.20% 2016 25,165 25,165 : 2,648,956 0.95% 2015 23,128 23,128 : 2,434,577 0.95% 2014 15,413 15,413 - 2,612,301 0.59% 2013 15,780 15,780 : 2,674,538 0.59%
Exhibit 30
Non-Largest Ten Locality Employers - General Employees
Non-Largest Ten Locality Employers - Hazardous Duty Employees
Discount Rate No change
No change
No change
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates
Salary Scale
Line of Duty Disability No change
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
No change
Changes of assumptions – The actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial experience study for the period from July 1, 2016 though June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
County of Russell, Virginia Notes to Required Supplementary Information
Health Insurance Credit (HIC) Plan For the Year Ended June 30, 2022
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation.
No change
No change
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
Line of Duty Disability No change
Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Discount Rate
Disability Rates
Salary Scale
-115-
Exhibit 30 County of Russel, Virginia
to Required Supplementary Information
Health Insurance Credit (HIC) Plan
For the Year Ended June 30, 2022
Changes of benefit terms - There have been no actuari
CChanges of assumptions - The actuarial assumptions u study for the period from July 1, 20%6 though June 3 effective as of July 1, 2019. Changes to the actuarial as
Non-Largest Ten Locality Employers - General Employ
ially material changes to the System benefit provisions since the prior actuarial valuation.
ied in the June 30, 2020, valuation were based on the results of an actuarial experience 30, 2020, except the change in the discount rate, which was based on VRS Board action sumptions as a result of the experience study and VRS Board action are as follows!
[Mortality Rates (pre-retirement, post-retirement Ineatthy, and disabled)
[Update to Pub 2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020,
[Retirement Rates
lAdjusted rates to better ft experience Tor Plan 1; set separate rates based on experience for Pian 2/Hybrid; changed final retirement age from 75 to B0 forall
[Withdrawal Rates
[Adjusted rates to better fit experience at each age and service decrement through years of service
[Disablity Rates INo change [atary Scale [No change [Line of Duty Disability INo change [Discount Rate [No change
Non-Largest Ten Locality Employers - Hazardous Duty Employees
[Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
[Update to Pub-2010 public sector mortality ables, Increased disability live expectancy. For future mortality improvements, replace load with a modified Mortality Improvement cate mP-2020
[Retirement Rates
[Adjusted rates to better fit experience and changed final retirement age from 65 to 70
[withdrawal Rates
[Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
[Disabiity Rates [No change [Salary Scale No change [Kine of Buty Disability INo change [Discount Rate [No change
“115+
Exhibit 31
Employer’s Proportionate Share
Employer’s of the Net HIC OPEB Employer’s Proportionate Liability (Asset) Plan Fiduciary
Proportion of the Share of the Employer’s as a Percentage of Net Position as a Net HIC OPEB Net HIC OPEB Covered Covered Payroll Percentage of Total
Liability (Asset) Liability (Asset) Payroll (3)/(4) HIC OPEB Liability (2) (3) (4) (5) (6)
0.21915% $ 2,812,941 $ 19,381,708 14.51% 13.15%
0.22330% 2,912,854 19,575,194 14.88% 9.95% 0.22079% 2,890,356 18,519,029 15.61% 8.97% 0.22715% 2,884,000 18,370,145 15.70% 8.08% 0.22781% 2,890,000 17,978,510 16.07% 7.04%
County of Russell, Virginia Schedule of School Board’s Share of Net OPEB Liability Teacher Employee Health Insurance Credit (HIC) Plan
For the Measurement Dates of June 30, 2017 through June 30, 2021
Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available.
Date (1)
2017 2018 2019 2020
2021
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Exhibit 31 County of Russell, Virginia Schedule of School Board’s Share of Net OPEB Liability Teacher Employee Health Insurance Credit (HIC) Plan For the Measurement Dates of June 30, 2017 through June 30, 2021
Employer’s Proportionate Share Employer’s of the Net HIC OPEB Employer’s Proportionate Liability (Asset) Plan Fiduciary Proportion of the Share of the Employer’s asa Percentage of Net Position as a Net HIC OPEB Net HIC OPEB Covered Covered Payroll Percentage of Total Date Liability (Asset) Liability (Asset) Payroll ea) HIC OPEB Liability oy @ @) “ o o 2001 0.219158 § 2,812,941 $19,381,708 14.51% 13.15% 2020 0.22330% 2,912,854 19,575,194 14.88% 9.95% 2019 0.22079% 2,890,356 18,519,029 15.61% 8.97% 2018 0.22715% 2,884,000 18,370,145 15.70% 8.08% 2017 0.22781% 2,890,000 17,978,510 16.07% 7.04%
Schedule is intended to show information for 10 years, Information prior to the 2017 valuation is not available. However, additional years will be included as they become available.
“116-
Exhibit 32
Contributions in Relation to Contributions
Contractually Contractually Contribution Employer’s as a % of Required Required Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll Date (1) (2) (3) (4) (5)
2022 $ 238,340 $ 238,340 $ - $ 19,697,485 1.21% 2021 234,519 234,519 - 19,381,708 1.21% 2020 234,902 234,902 - 19,575,194 1.20% 2019 222,000 222,000 - 18,519,029 1.20% 2018 225,953 225,953 - 18,370,145 1.23% 2017 199,561 199,561 - 17,978,510 1.11% 2016 189,859 189,859 - 17,911,244 1.06% 2015 183,923 183,923 - 17,351,215 1.06% 2014 189,622 189,622 - 17,083,023 1.11% 2013 193,975 193,975 - 17,475,216 1.11%
County of Russell, Virginia Schedule of Employer Contributions
Teacher Employee Health Insurance Credit (HIC) Plan For the Years Ended June 30, 2013 through June 30, 2022
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County of Russell, Virginia
Schedule of Employer Contributions
Teacher Employee Health Insurance Credit (HIC) Plan For the Years Ended June 30, 2013 through June 30, 2022
Exhibit 32
Contributions in
Relation to Contributions Contractually Contractually Contribution Employer’s as.a% of Required Required Deficiency Covered Covered Contributi Contribution (Excess) Payroll Payroll Date Oy @ 8) @) ©) 2022 238,340 $ 238,340 $ 19,697,485 1.21% 2021 234,519 234,519 19,381,708 1.21% 2020 234,902 234,902 19,575,194 1.20% 2019 222,000 222,000 18,519,029 1.20% 2018 225,953 225,953 18,370,145 1.23% 2017 199,561 199,561 17,978,510 1.11% 2016 189,859 189,859 17,911,244 1.06% 2015, 183,923, 183,923, 17,351,215 1.06% 2014 189,622 199,622 17,083,023 1.11% 2013, 193,975 193,975 17,475,246 1.11%
117-
Exhibit 33
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement through 9 years of service
Disability Rates
Discount Rate
No change
No change
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all
Salary Scale No change
County of Russell, Virginia
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation.
Changes of assumptions – The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
Update to Pub-2010 public sector mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Notes to Required Supplementary Information Teacher Employee Health Insurance Credit (HIC) Plan
For the Year Ended June 30, 2022
-118-
Exhibit 33 County of Russell, Virginia Notes to Required Supplementary Information ‘Teacher Employee Health Insurance Credit (HIC) Plan For the Year Ended June 30, 2022
Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation.
Changes of assumptions - The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
[Mortality Rates (pre-retirement, post-retirement [Update to Pub-2010 public sector mortality tables, For future mortality healthy, and disabled) limprovements, replace load with a modified Mortality Improvement [Scale MP-2020
[Retirement Rates [Adjusted rates to better fit experience for Plan 1; set separate rates based on experience for Plan 2/Hybrid; changed final retirement age lfrom 75 to 80 for all
withdrawal Rates [Adjusted rates to better fit experience at each age and service ldecrement through 9 years of service
[Disability Rates INo change
Satary Scale No change
[Discount Rate No change
118-
Exhibit 34
Employer’s Proportionate Share
Employer’s of the Net LODA OPEB Employer’s Proportionate Liability (Asset) Plan Fiduciary
Proportion of the Share of the Covered- as a Percentage of its Net Position as a Net LODA OPEB Net LODA OPEB Employee Covered-Employee Payroll Percentage of Total Liability (Asset) Liability (Asset) Payroll * (3)/(4) LODA OPEB Liability
(2) (3) (4) (5) (6)
0.46500% $ 2,050,611 N/A N/A 1.68%
0.50110% 2,098,894 N/A N/A 1.02% 0.53769% 1,929,157 N/A N/A 0.79% 0.50337% 1,578,000 N/A N/A 0.60% 0.50108% 1,317,000 N/A N/A 1.30%
Schedule is intended to show information for 10 years. Since 2017 is the first year for this presentation, only three years of data is available. However, additional years will be included as they become available.
County of Russell, Virginia Schedule of Employer’s Share of Net LODA OPEB Liability
Line of Duty Act (LODA) Program For the Measurement Dates of June 30, 2017 through June 30, 2021
Date (1)
2017 2018 2019 2020 2021
The contributions for the Line of Duty Act Program are based on the number of participants in the Program using a per capita-based contribution versus a payroll-based contribution. Therefore, covered-employee payroll is the relevant measurement, which is the total payroll of the employees in the OPEB plan. However, when volunteers and part-time employees make up a significant percentage of the employer’s members in the plan, the employer may determine that covered-employee payroll is misleading and, therefore, not applicable for disclosure.
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County of Russ
Virginia
Schedule of Employer’s Share of Net LODA OPEB Liability Line of Duty Act (LODA) Program For the Measurement Dates of June 30, 2017 through June 30, 2021
Exhibit 34
Employer’s Proportionate Share Employer’s of the Net LODA OPEB: Employer’s Proportionate ability (Asset) Plan Fiduciary Proportion of the Share of the Covered- 1a a Percentage of its Net Position as a
Net LODA OPEB «Net LODAOPEB Employee —Covered-Employee Payr Percentage of Total
Date Liability (Asset) ——Liabllty (Asset) Payroll ® eva) LODA OPEB Liability o @ fo) “ © O)
2021 0.485005 § 2,050,611 NIA N/A 1.68% 2020 o.s0110% 2,098,894 NIA N/A 1.02% 2019 0.53769% 4,929,157 NIA N/A 079% 2018 0.503378 1,578,000 NIA N/A 0.60% 2017 0.50108% 1,317,000 NIA NIA 1.30%
- The contributions for the Line of Duty Act Program are based on the number of participants in the Program using a per capita-based contribution ‘versus a payrol-based contribution, Therefore, covered-employee payrolls the relevant measurement, which isthe total payroll ofthe employees in the OPEB plan. However, when volunteers and part-time employees make up a significant percentage of the employer’s members inthe plan, the ‘employer may determine that covered-employee payroll is misleading and, therefore, not applicable for disclosure.
Schedule is intended to show information for 10 years. Since 2017 isthe first year for this presentation, only three years of data is available,
However, additional years will be included as they become avaiable.
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Exhibit 35
Contributions in Contributions Relation to as a % of
Contractually Contractually Contribution Covered- Covered - Required Required Deficiency Employee Employee
Contribution Contribution (Excess) Payroll * Payroll (1) (2) (3) (4) (5)
$ 64,669 $ 64,669 $ - N/A N/A 64,020 64,020 - N/A N/A 68,106 68,106 - N/A N/A 72,164 72,164 - N/A N/A 53,616 53,616 - N/A N/A 54,041 54,041 - N/A N/A 47,993 47,993 - N/A N/A
- The contributions for the Line of Duty Act Program are based on the number of participants in the Program using a per capita-based contribution versus a payroll-based contribution. Therefore, covered-employee payroll is the relevant measurement, which is the total payroll of employees in the OPEB plan. However, when volunteers and part-time employees make up a significant percentage of the employer’s members in the plan, the employer may determine that covered-employee payroll is misleading and, therefore, not applicable for disclosure.
Schedule is intended to show information for 10 years. Information prior to the 2016 valuation is not available. However, additional years will be included as they become available.
County of Russell, Virginia Schedule of Employer Contributions
Line of Duty Act (LODA) Program For the Years Ended June 30, 2016 through June 30, 2022
Date
2018
2016 2017
2019 2020 2021 2022
-120-
Exhibit 35 County of Russell, Virginia Schedule of Employer Contributions Line of Duty Act (LODA) Program For the Years Ended June 30, 2016 through June 30, 2022
Contributions in Contributions
Relation to asa % of
Contractually Contractually Contribution Covered- Covered -
Required Required Deficiency Employee Employee
Contribution Contribution (Excess) Payroll * Payroll Date a @ 8) @) ©) 2022 $ 64,669 § 64,669 § : NIA N/A 2021 64,020 64,020 : NA N/A 2020 68,106 68,106 : NA N/A 2019 72,164 72,164 : NIA N/A 2018 53,616 53,616 : N/A N/A 2017 54,041 54,041 : NIA N/A 2016 47,983 47,993 : N/A N/A
- The contributions for the Line of Duty Act Program are based on the number of participants in the Program using a per capita-based contribution versus a payroll-based contribution. Therefore, covered-employee payroll is the relevant measurement, which is the total payroll of employees in the OPEB plan. However, when volunteers and part-time employees make up a significant percentage of the employer’s members in the plan, the employer may determine that covered-employee payroll is misleading and, therefore, not applicable for disclosure.
Schedule is intended to show information for 10 years. Information prior to the 2016 valuation is not available. However, additional years will be included as they become available.
-120-
Exhibit 36
Employees in the Non-Largest Ten Locality Employers with Public Safety Employees
Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
No change
Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
County of Russell, Virginia
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the
Changes of assumptions – The actuarial assumptions used in the June 30, 2020 valuation were based on results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to the actuarial assumptions as a result of the experience study are as follows:
No changeLine of Duty Disability
Notes to Required Supplementary Information Line of Duty Act (LODA) Program
For the Year Ended June 30, 2022
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be more consistent with Locals Top 10 Hazardous Duty
Disability Rates
Salary Scale
No change
-121-
Exhibit 36
County of Russell, Virginia Notes to Required Supplementary Information Line of Duty Act (LODA) Program For the Year Ended June 30, 2022
Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the
Changes of assumptions - The actuarial assumptions used in the June 30, 2020 valuation were based on results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to the actuarial assumptions as
‘a result of the experience study are as follows:
Employees in the Non-Largest Ten Locality Employers with Public Safety Employees
[Mortality Rates (pre-retirement, post-retirement healthy, and disabled)
[Update to Pub-2010 public sector mortality tables. Increased disability life expectancy. For future mortality improvements, replace load with a modified Mortality Improvement Scale MP-2020
Retirement Rates
[Adjusted rates to better fit experience and changed final retirement age from 65 to 70
[Withdrawal Rates
[Decreased rates and changed from rates based on age and service to rates based on service only to better fit experience and to be Imore consistent with Locals Top 10 Hazardous Duty
Disability Rates, INo change Salary Scale [No change Line of Duty Disability INo change
121-
Other Supplementary Information
Other Supplementary Information
DISCRETELY PRESENTED COMPONENT UNIT – SCHOOL BOARD
MAJOR GOVERNMENTAL FUNDS
School Operating Fund - The School Operating Fund accounts for and reports the operations of the County’s school system. Financing is provided by the State and Federal governments as well as contributions from the General Fund.
School Activity Fund - The School Activity Fund accounts for and reports the operations of the individual schools.
DISCRETELY PRESENTED COMPONENT UNIT - SCHOOL BOARD MAJOR GOVERNMENTAL FUNDS:
School Operating Fund - The School Operating Fund accounts for and reports the operations of
the County’s school system. Financing is provided by the State and Federal governments as well as contributions from the General Fund.
School Activity Fund - The School Activity Fund accounts for and reports the operations of the individual schools.
Exhibit 37
School School Total Operating Activity School
Fund Fund Fund
ASSETS Cash and cash equivalents 2,297,057$ -$ 2,297,057$
Cash in custody of others - 782,239 782,239
Receivables (net of allowance for uncollectibles):
Accounts receivable 5,344 82,316 87,660
Due from primary government 309,583 - 309,583
Due from other governmental units 1,357,858 - 1,357,858
Prepaid items 764,367 - 764,367
Total assets 4,734,209$ 864,555$ 5,598,764$
LIABILITIES
Accounts payable 791,005$ 43,127$ 834,132$
Accrued liabilities 1,086,820 - 1,086,820
Total liabilities 1,877,825$ 43,127$ 1,920,952$
FUND BALANCES Nonspendable:
Prepaid items 764,367$ -$ 764,367$
Restricted: -
School activity fund - 821,428 821,428
Committed:
Textbook purchases 33,807 - 33,807
Regional Adult Education 254,862 - 254,862
School food 1,803,348 - 1,803,348
Total fund balances 2,856,384$ 821,428$ 3,677,812$
Total liabilities and fund balances 4,734,209$ 864,555$ 5,598,764$
Amounts reported for governmental activities in the statement of net position (Exhibit 1) are different because:
Total fund balances per above 3,677,812$
Capital assets
Land 5,628,295$
Buildings and improvements 10,619,854
Machinery and equipment 2,219,001
Construction in progress 7,795,752
Intagible right-to-use lease assets Machinery and equipment 386,293 26,649,195
Pension related items 7,330,211$
OPEB related items 3,225,927 10,556,138
Lease liabilities (402,114)$
Compensated absences (1,126,319)
Net OPEB liabilities (16,305,775)
Net pension liability (22,673,285) (40,507,493)
Pension related items (14,883,127)$
OPEB related items (1,599,052) (16,482,179)
Net position of governmental activities (16,106,527)$
Deferred inflows of resources are not due and payable in the current period and, therefore, are not reported in the funds.
County of Russell, Virginia Balance Sheet
Governmental Funds - Discretely Presented Component Unit - School Board June 30, 2022
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Deferred outflows of resources are not available to pay for current period expenditures and, therefore, are not reported in the funds.
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County of Russell, Virginia Balance Sheet
Governmental Funds - Discretely Presented Component Unit - School Board
June 30, 2022
Exhibit 37
ASSETS Cash and cash equivalents Cash in custody of others Receivables (net of allowance for uncollectbles} ‘Accounts receivable ‘ue from primary government ue from other governmental units Prepaid items Total assets
LuaBiLies
Accounts payable
‘ccrved abilities Total abilities
FUND BALANCES Nonspendable: Prepaid items Restricted: ‘School activity fund Committed Textbook purchases Regional Adult Education School food Total fund balances ‘otal liabilities and fund balances
s
s
s
5 Hi
Amounts reported for governmental activities inthe statement of net position (Exhibit) ar cifferent because:
Total fund balances per above
Capita asets used in governmental activities are not financial resources and, therefore, are not reported in
the fonds Capita assets land Bullaings and improvements Machinery and equipment ‘Construction in progress Intagiblerght-to-use lease assots Machinery and equipment
Deferred outfiows of resources are not available to pay for current period expenditures and, therefore, are
ot reported in the funds. Pension celated items (OPEB related items
Long: term liabilities are nat due and payable in the current period and, therefore, are nat reported in the
funds. Lease lables Compensated absences Net OPEB lables
Net pension ibiity
Deferred inflows of resources are not due and payable in the current period and, therefore, are not reported
inthe funds. Pension related items (OPEB related items
Net postion of governmental activities
122-
Schoo!
Operating Fund
2,297,057
5.344 309,583 1,357,858
23,807 254,862 1,803,348 7,856,384 5 a7 09_S
s
(221673,285)
(399,052),
Schoo! Activity Fund
782,239
82,316
307
aa
821,428
ae 864,555
5,628,295 10,619,854 2.219.001 7,795,752
386,293
7,330,211 35.977
(402,114) (1,126,319) (16,305,775)
(04,883,127)
5
5
3 3
z
Totat Schoo! Fund
2,297,087 782.239
87,660 309,583 1,357,858 "164,361 3.508,7or
834,132 1,086,826 900,950
764,367 e218
33,807 254,62 1,803,248 ‘TT BID 3,598,764
37781
26,640,198
10,556,136
(40,507,493)
(16,482,179)
eCICKN
Exhibit 38
School School Total Operating Activity School
Fund Fund* Fund
REVENUES
Revenue from the use of money and property 4,607$ -$ 4,607$
Charges for services 174,120 1,760,630 1,934,750
Miscellaneous 351,799 - 351,799
Recovered costs 247,169 - 247,169
Intergovernmental:
Local government 8,482,408 - 8,482,408
Commonwealth 32,684,298 - 32,684,298
Federal 14,707,822 - 14,707,822
Total revenues 56,652,223$ 1,760,630$ 58,412,853$
EXPENDITURES Current:
Education 55,871,062$ 1,787,205$ 57,658,267$
Debt service:
Interest and other fiscal charges 11,981 - 11,981
Total expenditures 55,883,043$ 1,787,205$ 57,670,248$
Excess (deficiency) of revenues over (under) expenditures 769,180$ (26,575)$ 742,605$
OTHER FINANCING SOURCES (USES)
Proceeds of lease purchases 402,114$ -$ 402,114$
Total other financing sources and uses 402,114$ -$ 402,114$
Net change in fund balances 1,171,294$ (26,575)$ 1,144,719$
Fund balances - beginning 1,685,090 848,003 2,533,093
Fund balances - ending 2,856,384$ 821,428$ 3,677,812$
Amounts reported for governmental activities in the statement of activities (Exhibit 2) are different because
Net change in fund balances - total governmental funds - per above 1,144,719$
Capital outlays 8,496,915$
Reversion of assets back to the School Board (net) 1,083,832
Depreciation/amortization expense (1,179,346) 8,401,401
Issuance of lease liabilities (402,114)
State non-employer contribution to the pension plan 135,970
(Increase) decrease in compensated absences 25,019$
Change in OPEB related items (607,484)
Change in pension related items 3,194,701 2,612,236
Change in net position of governmental activities 11,892,212$
*The School Activity Fund does not require a legally adopted budget
County of Russell, Virginia
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization in the current period.
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore are not reported as expenditures in governmental funds.
For the Year Ended June 30, 2022 Governmental Funds - Discretely Presented Component Unit - School Board
Statement of Revenues, Expenditures, and Changes in Fund Balances
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The amount is the net effect of these differences in the treatment of long-term debt and related items.
-123-
exhib 38 County of Russell, Virginia Statement of Revenues, Expenditures, and Changes in Fund Balances ‘Governmental Funds -Discetely Presented Component Unit School Board or the Year Ended June 20,2022
School schoo! Totat Operating Aativity schoo! Fund Fung und REVENUES Revenue fom the ute of maney and property s 4607 § s 407 Charges for services Wai 17080 1934,750, miscellaneous 3179 351,799 Recovered costs 247 369 2a769 Intergverrmental {Local government 8,482,408 8,482,408, CCommeweath 57,684258 7684298, Federat aroraze 1470782 Total venues 5 77 EXPENDITURES. Current ‘ueaton $ ssa7o82 $4,787,205 $57,658,267 Debt serve Interest and other fiscal charges 11,981 11981 Total expencitures S308 81707205 §_s7670.208
Excess (defiieney) of revenues over (under
expenditures s S_ 26575) 5 (OTHER FINANCING SOURCES (USES) Proceeds of lease purchases s aonim_§ sonst Total other Financing sources and wes 5 outta § 5
Net change in fund balances S$ Aamae $6,575) $—tt4sr19 Fund balances beining 1,685,080 848,003 2,533,003 Fund balances - ending i SC ZA -teounts reported for governmental activities in the statement of activities (Exist 2) are iferent because Net change in fund balances total governmental fund per above Ss 1ear9 Governmental funds report capital outlays as expenitures. However, inthe statement of activities the cost ofthese assets isallocated over their estimated useful ves and reprted 2s depreiation/amortization expense. Ths isthe amount by which capita outlays exceeded deprecition/aertzation nthe curent period
Capita utlays Ss 8.496915
Reversion of assets back tothe Schoo Board inet 1,083,832
Depreciation/ amortization expense (179,346) 8.401401 ‘The euance of longterm debt (2g. bonds, eases) provides cucrent financial resources to goveramental funds, while the repayment of the principal of long-term debt consumes the current financial resources of govemmental fund. Nether transaction, however has any effect on net position, Als, governmental funds report the effect of premiums, discounts, ‘and svar items when debt i fet tesund, whereas these amounts are deferred and amortized fn the statement of fective. The amount f the net effec of these ferences inthe treatment of long-term debt and related ems
Issuance oleae Uabitier 402,114) Revenues in the statement of actives that donot provide current financial resources are not reported as revenues nthe funds.
‘tate nonemployer contribution to the pension plan 135,970 Some expenses reported inthe statement of activities donot require the use of curent financial resources and, therefore ae not reported as expenditures in governmental funds
Uiezease) decrease in compensated absences S508
Change in OPEB related items (607.486)
(Change in pension elated items
sa7oL 2,612,236 Change in net postion of governmental stiles saa
"Te Schoo Activity Fund does not requir a legally adopted budget
“123-
Exhibit 39
Variance with Final Budget
Positive Original Final Actual (Negative)
REVENUES
Revenue from the use of money and property 6,000$ 6,000$ 4,607$ (1,393)$
Charges for services 186,054 186,054 174,120 (11,934)
Miscellaneous 352,414 352,414 351,799 (615)
Recovered costs 393,000 393,000 247,169 (145,831)
Intergovernmental:
Local government 7,750,020 7,750,020 8,482,408 732,388
Commonwealth 31,142,487 31,142,487 32,684,298 1,541,811
Federal 16,531,772 16,531,772 14,707,822 (1,823,950)
Total revenues 56,361,747$ 56,361,747$ 56,652,223$ 290,476$
EXPENDITURES Current:
Education 56,414,247$ 56,414,247$ 55,871,062$ 543,185$
Debt service:
Interest and other fiscal charges - - 11,981 (11,981)
Total expenditures 56,414,247$ 56,414,247$ 55,883,043$ 531,204$
Excess (deficiency) of revenues over (under) expenditures (52,500)$ (52,500)$ 769,180$ 821,680$
OTHER FINANCING SOURCES (USES)
Proceeds of lease purchases -$ -$ 402,114$ 402,114$
Total other financing sources and uses -$ -$ 402,114$ 402,114$
Net change in fund balances (52,500)$ (52,500)$ 1,171,294$ 1,223,794$
Fund balances - beginning 52,500 52,500 1,685,090 1,632,590
Fund balances - ending -$ -$ 2,856,384$ 2,856,384$
County of Russell, Virginia Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Discretely Presented Component Unit - School Board For the Year Ended June 30, 2022
School Operating Fund
Budgeted Amounts
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Exhibit 39 County of Russell, Virginia Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Discretely Presented Component Unit - School Board For the Year Ended June 30, 2022
School Operating Fund
Variance with
Final Budget Budgeted Amounts Positive Digi! Final Actual Negative) REVENUES Revenue from the use of money and property $ 6,000 $ 6,000 $ 4,607 $ (1,393) Charges for services 186,054 186,054 174,120 (11,934) ‘Miscellaneous 352,414 352,414 351,799 (615) Recovered costs 393,000 393,000 247,169 (145,831) Intergovernmental: Local government 7,750,020 7,750,020 8,482,408 732,388 Commonwealth 31,142,487 31,142,487 32,684,298 4,541,811 Federal 16.531,72___16,53,72__14,707.822__(1,823,950) Total revenues $56,361,747 $ 56,361,747 $ 56,652,223 $ 290,476 EXPENDITURES Current: Education S$ 56,414,247 $ 56,414,247 $ 55,871,062 $ 543,185, Debt service: Interest and other fiscal charges : : 11,981 11,981) Total expenditures $56,414,247 § 56,414,247 § 55,883,043 § 531,204 Excess (deficiency) of revenues over (under) expenditures $152,500) $ (52,500) $ 769,180 § 821,680 OTHER FINANCING SOURCES (USES) Proceeds of lease purchases $ - 58 -$ 402,114 § 402,114 Total other financing sources and uses 5 = Ss = Ss 402,114 402,114 Net change in fund balances $ (52,500) $ (52,500) $1,171,294 $1,223,794 Fund balances - beginning 52,500 52,500 1,685,090 1,632,590 Fund balances - ending : = 7,856,384 7,856,384
“124:
Supporting Schedules
Supporting Schedules
Schedule 1 Page 1 of 5
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
General Fund: Revenue from local sources:
General property taxes:
Real Property Tax 8,150,000$ 8,150,000$ 8,235,729$ 85,729$
Real and Personal PSC Tax 2,045,721 2,045,721 1,911,647 (134,074)
Personal Property Tax 4,031,005 4,031,005 4,119,000 87,995
Mobile Home Tax 102,500 102,500 77,188 (25,312)
Machinery and Tools Tax 941,301 941,301 1,036,562 95,261
Merchants Capital 44,800 44,800 46,121 1,321
Mineral Tax 911,800 911,800 713,472 (198,328)
Penalties 135,000 135,000 130,870 (4,130)
Interest 274,000 274,000 309,286 35,286
Total general property taxes 16,636,127$ 16,636,127$ 16,579,875$ (56,252)$
Other local taxes:
Local Sales and Use Tax 2,009,485$ 1,963,598$ 2,234,678$ 271,080$
Consumers’ Utility Tax 514,000 514,000 522,412 8,412
Consumption Taxes 67,500 67,500 72,701 5,201
Coal Severance Tax 185,000 185,000 515,886 330,886
Bank Stock Tax 15,250 15,250 31,353 16,103
Grantee tax 77,000 77,000 108,498 31,498
Cigarette Tax - - 116,526 116,526
Taxes on Recordation and Wills 26,500 26,500 52,598 26,098
Food and Meals tax - - 184,735 184,735
Total other local taxes 2,894,735$ 2,848,848$ 3,839,387$ 990,539$
Permits, privilege fees, and regulatory licenses:
Animal licenses 1,500$ 1,500$ 966$ (534)$
Building permits 33,250 33,250 39,776 6,526
Other permits and other licenses 2,405 2,405 2,742 337
Total permits, privilege fees, and regulatory licenses 37,155$ 37,155$ 43,484$ 6,329$
Fines and forfeitures: Court fines and forfeitures 11,250$ 11,250$ 10,279$ (971)$
Revenue from use of money and property:
Revenue from use of money 30,801$ 30,801$ 43,425$ 12,624$
Revenue from use of property 193,100 193,100 62,340 (130,760)
Total revenue from use of money and property 223,901$ 223,901$ 105,765$ (118,136)$
Charges for services:
Charges for sanitation and waste removal 195,000$ 195,000$ 181,404$ (13,596)$
Charges for courthouse security 45,000 45,000 27,799 (17,201)
Charges for cannery operations 60,000 60,000 7,082 (52,918)
Charges for commonwealth attorney 7,500 7,500 10,237 2,737
Charges for courthouse maintenance 8,500 8,500 6,899 (1,601)
Charges for jail and inmate fees 5,000 5,000 14,802 9,802
Charges for district court - - 3,491 3,491
Charges for library 5,200 5,200 7,608 2,408
Clerk’s collections - - 1,592 1,592
Other charges for services 3,300 3,300 2,910 (390)
Total charges for services 329,500$ 329,500$ 263,824$ (65,676)$
Miscellaneous: Other miscellaneous revenue 91,550$ 91,550$ 228,914$ 137,364$
Sale of property/surplus - - 17,529 17,529
Valley Heights revenue - - 8,867 8,867
Total miscellaneous 91,550$ 91,550$ 255,310$ 163,760$
Recovered costs: Social services 246,000$ 246,000$ 33,889$ (212,111)$
County of Russell, Virginia Schedule of Revenues - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Major and Minor Revenue Source
-125-
Russell County Highlight
County of Russell, Virginia Schedule 1 ‘Schedule of Revenues - Budget and Actual Page 1 of 5 ‘Governmental Funds For the Year Ended June 30, 2022
Variance with Final Budget Original Final Positive Fund, Major and Minor Revenue Sour Budget Budget Actual Negative General Fund: Revenue from local sources General property tas Real Property Tax $8150,000 $8,150.00 $8235.79 $85,729 Real and Personal PSC Tax 2045.72 2,045,721 1,911,647 (134074 Personal Property Tax ‘431/005 4.038,008 4,119,000 87.995, odie Home Tax 107,500, "07,500, 77.188 (5312) Machinery and Too Tax 941,301 oarg011,036/362 95.261 Merchants Capital “44200 “44,200 46,121 1321 Mineral Tax 11,800 v1.00 mar. (198,328) Penalties 135,000, 135,000, 130,870 (4.130) Interest 274,000, 274,000, 309.286 35.286 “Total general property taxes 316606, 27_$ —16696,107 S$ —16579.875S_156.252) Other local taxes Local ales and Use Tax S 2,008,485 $1,963,598 § 2,234678 $771,000 Consumers Usity Tax 514,000 314,000, szz.4t2 8412 Consumption Taxes 67,500 67,500 72,701 5.201 Coal Severance Tax 185,000 185,000 315,806 30,886 Bank Stock Tax 15,250, 15,250, 31,353, 16,103 Grantee tax 7.000 77,000 106,498 31498 Cigarette Tax . 116526 116,526 “Taxes on Recordation and Wills 26,500 16,500 32.598 26,098, Food and Meals tax : 184,735 186,735 “otal othe local taxes S_2eaTS Tews 5839.387 5 990.539 Permits, privilege fees, and regulatory Wcenses Animal censes s 1500 $ 1500 $ 968 § 0) Building permits 1250 33,250, 39,776 6.526 Other permits and athe Ucenses 2.405 2.405 27a 27 “otal permits, privilege fees, and regulatory licenses FE AL A 39 Fines and frfettures: Court fines and forfeitures $ _aso$ nao $027 5 foal Revenue trom use of money and property Revenue from use of money. S$ oeor $a ss Se Revenue from use of property 193,100, 93,100 62340 (130,760) “otal revenue from wie of money and property 5 223.901 $223,901 $105,765 S118. 136) Charges for services Charges for sanitation and waste removal $195,000 § 195,000 $181,404 S$ (13,596) Charges for courthouse security 45,000 45,000 7799 (7.20 Charges for cannery operations 0,000 9,000 7,082 62,918) Charges for commonwealth attorney 7,500 7,500 10.237 2a Charges for courthouse maintenance 8,500 8,500 6.399 (1601) Charges for jail and inmate fees 3,000 3000, 14.802 9.802 Charges for district court, : 341 3.491 Charges for brary 3,200 5,200 7,608 2,408 Clerks cllectons : . fe 1592 Other charges for services 3,300 3,300 2.910 fa “Total charges fr services $309,500 $309,500 Wes.m2a STON Miscellaneous Other miscellaneous revenue $9158 § 9580 § Bsa SBT. Sale of property/suplus : . 7.309 17,528 Valley Heights revenue : : 8.867 8.867 “otal miscellaneous Sons $s S530 S—103.700 Recovered costs Social services S$ 246,000 § 246,000 $33,888 S$ arz.tTH)
“125
Schedule 1 Page 2 of 5
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Revenues - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Major and Minor Revenue Source
General Fund: (Continued) Revenue from local sources: (Continued)
Recovered costs: (Continued)
Health department 15,000$ 15,000$ -$ (15,000)$
School resource officer 120,780 120,780 261,203 140,423
Insurance recoveries - - 57,593 57,593
Industrial recoveries 21,000 21,000 77,096 56,096
Fire and rescue - - 18,688 18,688
Other Recovered Costs 24,600 24,600 758,101 733,501
Total recovered costs 427,380$ 427,380$ 1,206,570$ 779,190$
Total revenue from local sources 20,651,598$ 20,605,711$ 22,304,494$ 1,698,783$
Intergovernmental: Revenue from the Commonwealth:
Noncategorical aid:
Motor vehicles carriers’ tax 134,500$ 134,500$ 131,277$ (3,223)$
Mobile home titling tax 70,000 70,000 67,964 (2,036)
Motor vehicle rental tax 1,750 1,750 2,147 397
Communications tax 823,000 823,000 615,251 (207,749)
State recordation tax 25,000 25,000 - (25,000)
Personal property tax relief act funds 1,437,003 1,437,003 1,437,003 -
Other noncategorical - - 288 288
Total noncategorical aid 2,491,253$ 2,491,253$ 2,253,930$ (237,323)$
Categorical aid: Shared expenses:
Commonwealth’s attorney 391,861$ 391,861$ 407,441$ 15,580$
Sheriff 1,549,210 1,549,210 1,582,897 33,687
Commissioner of revenue 125,752 125,752 169,138 43,386
Treasurer 119,569 119,569 136,712 17,143
Registrar/electoral board 44,764 44,764 71,876 27,112
Clerk of the Circuit Court 358,699 358,699 414,509 55,810
Total Shared Expenses 2,589,855$ 2,589,855$ 2,782,573$ 192,718$
Other categorical aid:
Victim witness grant 66,400$ 66,400$ 26,167$ (40,233)$
GIS 2,900 2,900 100 (2,800)
E911 state funds 52,000 52,000 121,304 69,304
Asset forfeiture funds - - 2,267 2,267
EMS grants - - 37,400 37,400
Fire Program Funds 86,500 86,500 96,419 9,919
Library grants 90,649 90,649 90,649 -
Litter control grants 12,800 12,800 16,225 3,425
Public assistance 2,225,193 2,225,193 2,077,553 (147,640)
Comprehensive services act 1,473,590 1,473,590 1,101,450 (372,140)
School resource officer 121,500 121,500 64,230 (57,270)
Health department - - 48,818 48,818
Other state funds - - 250,513 250,513
Total other categorical aid 4,131,532$ 4,131,532$ 3,933,095$ (198,437)$
Total categorical aid 6,721,387$ 6,721,387$ 6,715,668$ (5,719)$
Total revenue from the Commonwealth 9,212,640$ 9,212,640$ 8,969,598$ (243,042)$
Revenue from the federal government: Categorical aid:
DMV ground transportation safety grant 2,000$ 2,000$ -$ (2,000)$
Forfeited Assets - - 36 36
CDBG grants - - 110,951 110,951
Law enforcement grants 2,300 2,300 4,802 2,502
Violence against women 25,600 25,600 13,320 (12,280)
-126-
Russell County Highlight
County of Russell, Virginia Schedule 1 ‘Schedule of Revenues - Budget and Actual Page 2 of 5 ‘Governmental Funds For the Year Ended June 20, 2022 Variance with Final Budget Original Final Positive Fund, Major and Minor Revenue Sour Budget Budget Actual Negative General Fund: (Continued) Revenue from local sources: (Continued) Recovered costs: (Continued) Health department Ss 15,000 15,000 S 115,000) School resource officer ‘0,780 ‘0.780 261,203, 140,423 Insurance recoveries, : 57.593 37.583, Incstil recoveries 21,000 2,000 77.096 56.096 Fice and rescue : 18,688 18,688 Other Recovered Costs 24,600, 24,600, 738,101 733.501 “otal recovered costs 57.380 a7 3803 7,206.5703__ 779.190 “otal revenue from local sources S20651,598 $ 20,05,711_$2,304484 $1,698,783, Intergovernmental Revenue from the Commonwealth Noncategorial ait: ‘Motor vehicles carrer ta $ 134500 124,500 ims B23) odie home tling tax 70,000 70,000, 67.364 (2.036) Motor veicle rental tax 1,750, 1,750 ar 397 Communications tax 23,000, 23,000, o15.251 (207,748) State recordation tax 5,000 25,000, (25,000) Personal property tax relief act funds warn 17,003. 1,497,003 Other noncategrical : 288 288 “otal noneategorcal aid 7a $a SaaS wa Categorical ad: Shared expenses: Commonwealth’s attorney Ss 3en861 391,861 aoras $15,500 Shen 159210 4,569.210 1,582,897 33.687 Commissioner of revenue 25,752 "5.752 169,138 3,306 ‘Treasurer 1195569 1195569 136,712 173143 Registrar electoral board 44,768 44,768 71.875 min Clerk ofthe cireuit Court 358,699 358,699 4143509, 55,810 ‘otal Shared Expenses S7509.055 $7,509,855 $D7ez373 S 192.718 Other categorical aid ‘Victim witness grant Ss 6400 66,400, 2607 § (40,233) ais 2,900 2,900 100 (2,800) 911 state funds 52,000 2,000 121,304 69.304 set forfestre fonds . 2267 2267 ES grants : 7.400 37.400 Fire Program Funds 96,500 6,500, 96.419 9.319 Library grants 50,689 90.649 90,669 Litter control grants 17,800 ‘7,800 16.225 3.405 Public assistance 225,193 2,205,193 2,077.53 (147,640) Comprehensive services act 1472901473590 1101450 672,140) School resource officer "21/500 ‘1500 64230 67270) Health department . : 6518 48.818 Other state funds : : 250,513, 250.513, “otal other categorical aid oan aes —T933.095 5198.47) “otal categorical aié $ernse7 § 67na87 $ 6715608 § _6.719) “otal revenue from the Commonwealth S920 $§ 921260 $ 8.969.598 248.082) Revenue from the federal government Categorical ad: mV ground transportation safety grant s 2,000 2,000 5,000) Forfeited Assets . 6 36 006 grants : 110,951 110,951 Law enforcement grants 2,300 2,300 4,902 2.502 Violence against women 25,600 25,600, 13.320 (12,280)
-126-
Schedule 1 Page 3 of 5
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Revenues - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Major and Minor Revenue Source
General Fund: (Continued)
Intergovernmental: (Continued)
Revenue from the federal government: (Continued)
Categorical aid: (Continued)
Emergency management grants 34,800$ 34,800$ -$ (34,800)$
Victim witness grant - - 40,090 40,090
Public assistance 3,140,596 3,140,596 2,932,253 (208,343)
Comprehensive services act 247,110 247,110 184,718 (62,392)
Coronovirus emergency supplement grant - - 95,265 95,265
Comp Board ARPA - - 83,967 83,967
Total categorical aid 3,452,406$ 3,452,406$ 3,465,402$ 12,996$
Total revenue from the federal government 3,452,406$ 3,452,406$ 3,465,402$ 12,996$
Total General Fund 33,316,644$ 33,270,757$ 34,739,494$ 1,468,737$
Special Revenue Funds: Coal Road Fund: Revenue from local sources:
Other local taxes: Coal road taxes 150,000$ 150,000$ 515,884$ 365,884$
Revenue from use of money and property: Revenue from the use of money -$ -$ 4,598$ 4,598$
Total revenue from local sources 150,000$ 150,000$ 520,482$ 370,482$
Total Coal Road Fund 150,000$ 150,000$ 520,482$ 370,482$
CARES Fund: Revenue from local sources:
Revenue from use of money and property: Revenue from the use of money -$ -$ 3,396$ 3,396$
Total revenue from local sources -$ -$ 3,396$ 3,396$
Revenue from the federal government: Categorical aid:
CARES Act COVID-19 Grant -$ -$ 17,698$ 17,698$
Total categorical aid -$ -$ 17,698$ 17,698$
Total revenue from the federal government -$ -$ 17,698$ 17,698$
Total CARES Fund -$ -$ 21,094$ 21,094$
ARPA Fund: Revenue from the federal government:
Categorical aid: American Rescue Act -$ -$ 709,700$ 709,700$
Total categorical aid -$ -$ 709,700$ 709,700$
Total revenue from the federal government -$ -$ 709,700$ 709,700$
Total CARES Fund -$ -$ 709,700$ 709,700$
Total Primary Government 33,466,644$ 33,420,757$ 35,990,770$ 2,570,013$
-127-
Russell County Highlight
Russell County Highlight
County of Russell, Virginia Schedule 1 ‘Schedule of Revenues - Budget and Actual Page 3 of 5 ‘Governmental Funds For the Year Ended June 20, 2022 Variance with Final Budget Final Positive Fund, Major and Minor Revenue Sour Budget ‘Actual Negative General Fund: (Continued) Intergovernmental: (Continued) Revenue from the federal government: (Continued) Categorical ait: (Continued) Emergency management grants 34,800, 34,800 § +S (343800) ‘Victim witness grant : . 40,050 40,050 Public assistance 3,140,598 3,140,596 2,932,253 (208,343) Comprehensive services act 27.110 247.110 186,718 (62,352) Coronovirus emergency supplement grant : 95.265, 95.265, Comp Board ARPA : : 83,967 83.967 “otal categoricalaié 3 BLWS_S TST 5a65.402_S 1:99 “otal revenue from the federal government 3452406 $ 3452.406 $3,405,402 S___12.596 Total General Fund 33,316,664 $33,270,757 $34,730,494 $1,468,737 Special Revenue Funds: Coal Road Funds Revenue from local sources (Other local taxes Coal road taxes 130,000 130,000 $515,884 $365,804 Revenue from use of money and property Revenue from the wie of money . os 4598S 4598 “otal revenue from local sources 130,000 130,000 $ 520.482 $370,482 Total Coat Road Fund 150,000 180,000 $520,482 $370,482 (CARES Fund: Revenue from local sources Revenue from use of money and property Revenue from the wie f money . s 3.396 5 3.396 “otal revenue from local sources . s 3.396 5 3.396 Revenue from the federal government: Categorical ad: CARES Act COVIO-19 Grant . S769 § 17.658 “otal categoricalaié : S769 § 17.658 “otal revenue fom the federal government . S769 s 17.658 Total CARES Fund S200 § 2,094 ARPA Fund Revenue from the federal goverment Categorical ait ‘omercan Rescue het $79.70 $709,700 “otal categoical aid $79.70 $709,700 “otal revenue from the federal government $79.70 $709,700 “otal CARES Fund S$ 709,700$___ 709,700 otal Primary Government 33,406,646 § 33,400,757 _§ 35,990,770 § 2,570,013
“127-
Schedule 1 Page 4 of 5
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Revenues - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Major and Minor Revenue Source
Discretely Presented Component Unit - School Board: School Operating Fund:
Revenue from use of money and property:
Revenue from the use of money -$ -$ 7$ 7$
Revenue from the use of property 6,000 6,000 4,600 (1,400)
Total revenue from use of money and property 6,000$ 6,000$ 4,607$ (1,393)$
Charges for services:
Cafeteria sales 26,500$ 26,500$ 70,396$ 43,896$
Tuition payments 5,000 5,000 - (5,000)
Drivers Ed fees 14,000 14,000 11,100 (2,900)
Other charges for services - - 1,986 1,986
Regional Adult Education 138,554 138,554 90,638 (47,916)
GED Testing fees 2,000 2,000 - (2,000)
Total charges for service 186,054$ 186,054$ 174,120$ (11,934)$
Miscellaneous: Other miscellaneous 352,414$ 352,414$ 351,799$ (615)$
Recovered costs:
Insurance recoveries -$ -$ 32,248$ 32,248$
Extra duties revenue 23,000 23,000 11,610 (11,390)
Dual Enrollment 300,000 300,000 21,726 (278,274)
Sale of Equipment and Supplies 10,000 10,000 4,413 (5,587)
Other recovered costs 60,000 60,000 177,172 117,172
Total recovered costs 393,000$ 393,000$ 247,169$ (145,831)$
Total revenue from local sources 937,468$ 937,468$ 777,695$ (159,773)$
Intergovernmental: Revenues from local governments:
Contribution from County of Russell, Virginia 7,750,020$ 7,750,020$ 8,482,408$ 732,388$
Total revenues from local governments 7,750,020$ 7,750,020$ 8,482,408$ 732,388$
Revenue from the Commonwealth: Categorical aid:
Share of state sales tax 4,321,808$ 4,321,808$ 5,393,705$ 1,071,897$
Basic Aid 13,489,492 13,489,492 12,346,960 (1,142,532)
Remedial summer education - - 373,273 373,273
Regular foster care 10,005 10,005 6,753 (3,252)
Gifted and talented 135,907 135,907 131,521 (4,386)
Remedial education 515,419 515,419 498,786 (16,633)
Special education 1,730,885 1,730,885 1,675,026 (55,859)
Textbook payment 275,582 275,582 266,689 (8,893)
Career and Technical Education - - 5,595 5,595
Alternative education 1,042,140 1,042,140 1,094,973 52,833
Elementary Alternative Education - - 2,500 2,500
Algebra readiness 82,169 82,169 79,588 (2,581)
Mentor teacher program 4,953 4,953 5,447 494
Social security fringe benefits 846,210 846,210 818,902 (27,308)
Group life 58,978 58,978 57,075 (1,903)
Retirement fringe benefits 1,971,926 1,971,926 1,908,289 (63,637)
Supplemental support - - 879,237 879,237
Early reading intervention 100,322 100,322 168,107 67,785
Adult Education 31,489 31,489 31,489 -
Homebound education 17,473 17,473 3,102 (14,371)
Vocation education 531,176 531,176 514,360 (16,816)
Advanced placement incentive 908,474 908,474 - (908,474)
At risk payments 528,223 528,223 1,478,981 950,758
Primary class size 725,021 725,021 693,547 (31,474)
Technology 362,000 362,000 851,658 489,658
Jobs for Virginia Graduates 25,000 25,000 60,000 35,000
Industry Certification Costs 4,341 4,341 3,290 (1,051)
-128-
Russell County Highlight
Russell County Highlight
County of Russell, Virginia Schedule 1 ‘Schedule of Revenues - Budget and Actual Page 4 of 5 ‘Governmental Funds For the Year Ended June 20, 2022
Variance with Final Budget Original Final Positive und, Major and Winor Revenue Source Budget Budget ‘Actual Negative Discretely Presented Component Unit «School Board: School Operating Fund: Revenue from use of money and property Revenue from the wie of money s os s 7s 7 Revenue from the wie of property 6,000 6,000 4.600 (1.400) Total revenue from use f money and property z 6.0005 6,000 4007 $0383) Charges for services Cafeteria sales S$ 26500 $26,500 $70.36 543,896 “Tuition payments 3,000 3000, (6,000) Drivers Ed fees 14,000 14,000 1,100 (2,900) ‘ther charges for services, : . 11986 1,986 Regional Adult Evcation| 129,554 129,554 90.638, 7916) GED Testing fes 2,000 2,000 (2,000) “Total charges for service S_1e6.054 S$ Tas 054 Ses 934) Miscellaneous Other miscellaneous Sassi § ssa $351,799 § 15) Recovered costs Insurance recoveries s a S mre sas Extra duties revenue 23,000 23,000, 11610 (14350) Dual Enrolment 310,000, 300,000, 2.n6 7.274) Sale of Equipment and Supls 10,000 10,000 4403 6.387) Other recovered costs 60,000 0,000, i717 7.17 “Total recovered costs $393,000 393,000 247.109 145.831) “otal revenue from local sources S$ 937408 § 937a08 $7785 159.773) Intergovernmental Revenues from aca goversments: Contribution from County of Russel, Virginia $_7750.000 $7,750,020 $8,482,408 $732,308 “otal revenues from local governments S$ 7,750,010§ 7,750,020§ 8,482,408§ 732,308 Revenue from the Commonwealth Categorical ad: Share of state sles tox $432,008 § © 4321,808 § 5,393,705 $1,071,897 Basie Ae saat9.492 13,489,492 12,346,960 (1,142,532) Remeeial summer education : ara sna Regular foster care 10,005, 10,005, 6753 6.232) Gifted and talented 135,907 ‘5.907 131521 (4386) Remecial edation 15.419 515.419 298,706 (16,633) Special education 1730.85 1,730.85 1,675,026 (55,859) Textbook payment 775,582 775,582 766,689 (6.393) Career and Technical Education : : 5.595 3.595, ‘Alternative education 100,140 4,082,140 4,084,973 5283. Elementary Alternative Education : 2,500, 2:500 Algebra readiness 22,109 2,169 795588 381) Mentor teacher prosram 4.953 4.953 57 4 Social security fringe benefits 246,210 246,210 18.902 (27,308) Group lite 38,978 38,978 37.075 (1,903) Retirement fringe benefits 197 4978926 1,908,289 (63.637) Supplemental support : 79.237 aa Early reaing intervention 100,322 100,322 168,107 or785 Act Education 3409 3109 31469 Hemebound education ar war 3.102 caa7n Vocation education sui.i76 31.178 514.360 (16,816) Advanced placement incentive 908,474 08,474 (908,474) ‘A sk payments 528,223, 518.223 1,478,961 950,758 Primary clas size 725,003 725,021 93.367 (1474 Technology 342,000, 347,000, 851,658, 499,658, Jobs fr Virgina Graduates 5,000 75,000, 0,000 35,000 Industry Certification Costs 4341 4341 3,290, (1.051)
-128-
Schedule 1 Page 5 of 5
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Revenues - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Major and Minor Revenue Source
Discretely Presented Component Unit - School Board: (Continued) School Operating Fund: (Continued) Intergovernmental (Continued) Revenue from the Commonwealth: (Continued)
Categorical aid: (Continued)
School Food 17,708$ 17,708$ 100,092$ 82,384$
English as a second language 19,703 19,703 22,580 2,877
Project graduation 5,955 5,955 11,623 5,668
GED prep programs 77,939 77,939 77,632 (307)
Lottery payments 1,036,702 1,036,702 1,008,499 (28,203)
Tobacco Commission 30,000 30,000 30,187 187
Additional assistance preschool 864,093 864,093 537,139 (326,954)
Adult literacy 82,515 82,515 67,511 (15,004)
Special education-foster care - - 5,898 5,898
No loss funding 943,780 943,780 1,333,381 389,601
Virginia preschool initiative - - 46,708 46,708
Other state funds 345,099 345,099 94,195 (250,904)
Total categorical aid 31,142,487$ 31,142,487$ 32,684,298$ 1,541,811$
Total revenue from the Commonwealth 31,142,487$ 31,142,487$ 32,684,298$ 1,541,811$
Revenue from the federal government: Categorical aid:
Basic Adult Education 308,892$ 308,892$ 332,099$ 23,207$
Title I 1,361,402 1,361,402 1,107,567 (253,835)
Special Education 1,148,127 1,148,127 972,584 (175,543)
Title VI-B, preschool 36,768 36,768 110,291 73,523
Vocational education 79,452 79,452 83,510 4,058
School Food Program 1,857,675 1,857,675 2,541,216 683,541
Improving teacher quality 170,140 170,140 351,277 181,137
Title IV part A 95,924 95,924 134,039 38,115
21st century grant 2,377,100 2,377,100 1,810,788 (566,312)
Rural and low income schools - - 5,926 5,926
Education stabilization funds 9,096,292 9,096,292 6,571,462 (2,524,830)
ARPA - - 687,063 687,063
Total categorical aid 16,531,772$ 16,531,772$ 14,707,822$ (1,823,950)$
Total revenue from the federal government 16,531,772$ 16,531,772$ 14,707,822$ (1,823,950)$
Total School Operating Fund 56,361,747$ 56,361,747$ 56,652,223$ 290,476$
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Russell County Highlight
Russell County Highlight
Russell County Highlight
County of Russell, Virginia Schedule 1 ‘Schedule of Revenues - Budget and Actual Page 5 of 5 ‘Governmental Funds For the Year Ended June 20, 2022 Variance with Final Budget Final Positive und, Major and Winor Revenue Source Budget ‘Actual Negative Discretly Presented Component Unit «Schoo! Board: (Continued) School Operating Fund: (Continued) Intergovernmental (Continued) Revenue from the Commonwealth: (Continued) Categorical aid: (Continued) School Food $708 § 7,708 $00.02 SS ar.384 English as a second language 19,703, 19,703 72580, 2877 Project graduation 3.955, 5.955, 163 5.668 GED prep programs 98 77.939 762 Gor) Lottery payments 1ou6702——4,036702——+9,008,499 (28,203) “Tobacco Commission 30,000 30,000, 30,187 187 ‘Aditionalasistance preschool 64,093, 864,053, 337.139 (626,954) ‘Adult iteracy 82515 2.515, orstt (15,004) Special education foster care : : 5.898 5.898 No os funding 993,700 43,700 4,330,381 399,601 Virginia preschool initiative : 46,708 46,708 Other state funds 345,099 345,099 94.195, (250,504 “otal categoricalaié 530.7 $F. aa7_S gaa S581 “otal revenue from the Commonwealth $s1uea4s7 § 3162487 § _3,684298 1541811 Revenue from the federal government Categorical ad: Basic Adult Education Sous $ —3osenz $332,059 $23,207 Tile nena 36h 1,107,567 (253,835) Special Education niesa7 348,107 72.384 (17554) Title VIB, preschoot 36.768 36.768 110,291 ee ‘ecational education 7.50 79.452 83.510 4.058 School Food Program 1857.67 48576752, 544,216 oa3.s1 Improving teacher quality 170,140 70,140 351277 181,137 Tile V part A 95,524 95.908 134,039 28,115, 2st century grant 2377300 = 2,377,100 1,810,788 (666,312) Rural and tow income schools : 5.926 5.926 Eeduation stabilization funds 93056,292 9,086,292 6.571.462 (2,524,830) ARPA : 687,063, 687.063, “otal categorialaié S_Wesu 7S Tessa TES Taro7.ez2_S (1.823.950) “otal revenue from the federal government $ 16501772 § _16591,772 $14,707.22 $ (1,823,950) ‘Total School Operating Fund 56,361,747 _§ $6,652,225,
“129-
Schedule 2 Page 1 of 4
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
General Fund: General government administration:
Legislative: Board of supervisors 182,700$ 237,700$ 371,472$ (133,772)$
General and financial administration:
County administrator 341,443$ 359,443$ 362,709$ (3,266)$
Independent auditor 68,250 70,250 74,575 (4,325)
Commissioner of the revenue 330,936 415,936 419,786 (3,850)
Real estate assessor 112,370 112,370 109,548 2,822
Treasurer 414,869 449,664 455,508 (5,844)
Auto decals - - 1,171 (1,171)
Procurement 166,652 210,322 202,048 8,274
Total general and financial administration 1,434,520$ 1,617,985$ 1,625,345$ (7,360)$
Board of elections:
Electoral Board 41,550$ 126,550$ 127,301$ (751)$
General Registrar 116,023 162,523 164,005 (1,482)
Total board of elections 157,573$ 289,073$ 291,306$ (2,233)$
Total general government administration 1,774,793$ 2,144,758$ 2,288,123$ (143,365)$
Judicial administration: Courts:
Circuit Court 115,323$ 115,323$ 74,314$ 41,009$
General District Court 16,570 16,570 12,973 3,597
Clerk’s Office 523,376 605,153 611,981 (6,828)
Sheriff Courts 1,159,603 1,221,103 1,244,098 (22,995)
Victim and Witness Assistance 59,370 66,648 62,001 4,647
Law Library - - 1,117 (1,117)
Total courts 1,878,742$ 2,032,097$ 2,013,406$ 18,691$
Commonwealth’s attorney: Commonwealth’s Attorney 822,326$ 913,838$ 932,883$ (19,045)$
Total commonwealth’s attorney 822,326$ 913,838$ 932,883$ (19,045)$
Total judicial administration 2,701,068$ 2,945,935$ 2,946,289$ (354)$
Public safety: Law enforcement and traffic control:
Sheriff 2,429,878$ 2,699,361$ 2,803,692$ (104,331)$
Dare program 3,000 3,000 382 2,618
Total law enforcement and traffic control 2,432,878$ 2,702,361$ 2,804,074$ (101,713)$
Fire and rescue services:
Volunteer Fire Departments 292,100$ 303,319$ 303,319$ -$
Ambulance Rescue Squad 190,875 197,375 197,270 105
Total fire and rescue services 482,975$ 500,694$ 500,589$ 105$
Correction and detention:
Operation of Jail 2,324,385$ 2,324,385$ 2,324,384$ 1$
Probation Office 208,261 208,261 178,406 29,855
Total correction and detention 2,532,646$ 2,532,646$ 2,502,790$ 29,856$
Inspections: Building inspector 130,560$ 130,560$ 125,046$ 5,514$
Total inspections 130,560$ 130,560$ 125,046$ 5,514$
County of Russell, Virginia Schedule of Expenditures - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Function, Activity and Element
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Russell County Highlight
County of Russell, Virginia Schedule 2 ‘Schedule of Expenditures - Budget and Actual Page 1 of 4
Governmental Funds For the Year Ended June 30, 2022
Variance with
Final Sudget Original Final Positive Fund, Function, Activity and Element Budget Budget atu Negative ‘General Fund: General government administration: Legsiatve Board of supervisors S1w.r0 sar § mam $a General and financial administration: County administrator S Miao S355.483 $362,709 § 3,286) Independent auitor 8,250 70.250, 74.575, (4325), Commissioner ofthe revenue 230.936 415.906 419,706 3.850) Real estate assessor 112,370 112,370 109,548 2a Treasurer 414.809 469,668 495,308, con Auto decals ar army, Procurement 16,652 20.2 202,048 3.274 Total general an financial administration S134 52081607. 985§—1605.365 F360) Board of elections: Electoral Board S 41950 § 126550 § ——e7,a01 § on) General Registrar 116,023 162,523 164,05 482) Total board of elections S773 S9.073 F306 FT Total general government administration S177 §24e758 9 2.208.n3§ (43.365) ical administration courts: Circuit Court S 15323 $533 § Taste $41,008 General District Court 16.570 16,570 12973 3.597 Clerks office 523,376 605,153, 611.981 (6.228) Sheriff Courts 1159603128003 1,244,058 2,595) Victim and Witness Assistance 59.370 66,608 62,001 467 Law Libeary ix am, Total courts 3a aS OOF TOI. S18 commonwealth attorney ‘Commonwealth Atorney Sess sone §2883 § 19.08) Total commonwealths attorney Sone $913.83 SESS 9.08) Total judicial administration $2,701,068 $2,965,935 § 2.946.209 354) Public safety: Law enforcement and traffic control: Shestt S297 $2,699,361 § 2,803,692 § (104,331) Dare program 3,000, 3,000, 3 2.618 Total aw enforcement and traffic contr 3 2a2,678§ 2 7.361 FT aoR OT FOL TIE Fire and rescue services Volunteer Fie Departments Smo § 303319 $3,319 ‘ambulance Rescue Squad 190,875 197,375 197.270 105 Total fire and rescue services 32,9755 500,094 § 300.589 105 Correction and detention ‘Operation of Jat S 2324385 § 2,324385 § 2,324,384 § 1 Probation Office 208.261 208.261 173.406 23.855, Total correction and detention 3 3532.6a6 5 _Zs326a6 8 7502790 9.886 Inspections: Building inspector Sos § 130560§ 125,046 3.514 Total inspections S$ 180,560§——130,560§—125,046§ 3.514
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Schedule 2 Page 2 of 4
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Expenditures - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Function, Activity and Element
General Fund: (Continued) Public safety: (Continued)
Other protection:
Forestry Service 11,804$ 11,804$ 12,239$ (435)$
Enhanced 911 543,631 543,631 414,529 129,102
Medical Examiner 400 369,755 40 369,715
Emergency Services 109,456 109,456 93,722 15,734
Animal Control 80,300 113,800 114,051 (251)
Total other protection 745,591$ 1,148,446$ 634,581$ 513,865$
Total public safety 6,324,650$ 7,014,707$ 6,567,080$ 447,627$
Public works: Sanitation and waste removal:
Landfill 1,794,487$ 2,430,487$ 1,960,280$ 470,207$
Litter Coordinator - 66,653 68,238 (1,585)
Total sanitation and waste removal 1,794,487$ 2,497,140$ 2,028,518$ 468,622$
Maintenance of general buildings and grounds: General properties 931,030$ 1,003,132$ 893,248$ 109,884$
Total public works 2,725,517$ 3,500,272$ 2,921,766$ 578,506$
Health and welfare: Health:
Health Department 369,175$ 369,175$ 369,695$ (520)$
Mental health and mental retardation: Cumberland Mountain Community Services Board 40,000$ 40,000$ 39,996$ 4$
Welfare:
Social services 5,202,835$ 6,169,513$ 5,505,709$ 663,804$
Comprehensive Services Act 1,720,700 1,720,700 1,434,696 286,004
Appalachian Agency for Senior Citizens 83,475 86,800 86,642 158
Total welfare 7,007,010$ 7,977,013$ 7,027,047$ 949,966$
Total health and welfare 7,416,185$ 8,386,188$ 7,436,738$ 949,450$
Education: Other instructional costs:
Contributions to County School Board 7,750,020$ 7,750,020$ 8,482,408$ (732,388)$
SVCC Contribution 166,949 235,329 235,328 1
Total education 7,916,969$ 7,985,349$ 8,717,736$ (732,387)$
Parks, recreation, and cultural: Parks and recreation:
Recreation Park 88,500$ 88,500$ 69,906$ 18,594$
Conference Center 66,213 66,478 64,540 1,938
Fairground Project - 33,300 33,300 -
Total parks and recreation 154,713$ 188,278$ 167,746$ 20,532$
Library: Public Library 357,443$ 385,443$ 391,680$ (6,237)$
Total parks, recreation, and cultural 512,156$ 573,721$ 559,426$ 14,295$
Community development: Planning and community development:
Planning Commission 17,000$ 17,000$ 11,700$ 5,300$
Community Development 23,250 36,250 28,923 7,327
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Russell County Highlight
County of Russell, Virginia ‘Schedule of Expenditures - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Schedule 2 Page 2 of 4
Variance with
Final Budget Original Final Positive Fund, Function, Activity and Element Budget Budget atu ive ‘General Fund: (Continued) Public safety: (Continued) Other protection: Forestry Service 11,808 11,804 12,238 (35) Eshanced 911 540,601 58.61 414509 129,102 Medial Examiner 00 369.755, #0 9,715 Emergency Services 109,456 105,456 om. 15,734 Anima Contr 0,300, 113,800 114.051 (51) Total other protection 725.5915 1.148.406 634.381 33.85 Total public safety 6524650 § 7.014.707 $6,567,080 7.07 Publi works: Sanitation and waste removal Landi 1794487 § 2.400.487 § 1,960,200 470207 Litter Coordinator 66,653, 63.238 1.385) Total sanitation and waste removal TRIS 7 a97. 1407008. 318 EK Naintenance of general buildings and grounds: General properties 931,030 $1,003,132 993.208 105,884 Total pubic works 2ms517_§ 350027 § 2.921.766 570,506 Health and welfare: Health Health Department 309.175, 369.175, 349,695 2) Mental health and mental retardation: ‘Cumberland Neuntain Community Services Board 0,000 20,000 33.596 4 Welfare Social services 5.202.835 § 6,169,513 § 5,505,709 63,804 Comprehensive Services Act ‘70.7 1.m0,700 1,434,656 286,004 ‘Appalachian Agency for Senor Citizens 83.475 86,800, 86,682 138 Total welfare 707.010 7.977.013 _§ 7.027.047 5.306 Total health and welfare TAN6185 $8,386,108 _§ 7.436.738 949.430 Education: (Other instructional costs: Contributions to County School Board 7,750,000 $7,750,000 $8,482,408 732,388) SEC Contribution 166,948 235.309 235.308 1 Total education 796,969 $7,985,349 8 717.736 E37, Parks, recreation, and cultura: Parks and recreation: Recreation Park 88,500, 88,500, 63,906 13,594 Conference Center eo 66.478 64540 1938 Fairground Project 33,300, 33,300, Total parks and recreation TAT 78278 17.746, Es Library: Publi Library 3740 385.408 391,680 (6237, Total parks, recreation, and cultural 512.156 573.71 559.426 14.295 Community development: Planning and community development Planning Commission 17,000, 17,000 11,700 5,300 Community Development 23,250 36,250, 93 7307
“131
Schedule 2 Page 3 of 4
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Expenditures - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Function, Activity and Element
General Fund: (Continued) Community development: (Continued)
Planning and community development: (Continued)
Industrial Development Authority 7,500$ 7,500$ 7,500$ -$
PSA Contributions 369,233 612,939 702,079 (89,140)
Cumberland Plateau 35,000 35,000 35,000 -
Regional Housing 1,800 1,800 - 1,800
Highway Safety Commission 4,200 4,650 4,650 -
Canneries 25,000 35,350 35,571 (221)
Tourism 6,000 8,665 7,908 757
Total planning and community development 488,983$ 759,154$ 833,331$ (74,177)$
Environmental management: Soil and Water Conservation 10,500$ 10,500$ 7,500$ 3,000$
Cooperative extension program: VPI Extension 69,376$ 89,676$ 72,827$ 16,849$
Total community development 568,859$ 859,330$ 913,658$ (54,328)$
Nondepartmental: Nondepartmental 270,583$ 583,800$ 316,149$ 267,651$
Total nondepartmental 270,583$ 583,800$ 316,149$ 267,651$
Capital projects:
Courthouse restoration project 33,879$ 3,685,892$ 4,249,942$ (564,050)$
Other capital projects - 18,000 37,035 (19,035)
Total capital projects 33,879$ 3,703,892$ 4,286,977$ (583,085)$
Debt service:
Principal payments 1,669,592$ 1,780,240$ 1,860,240$ (80,000)$
Interest Expense 450,736 619,442 647,911 (28,469)
Total debt service 2,120,328$ 2,399,682$ 2,508,151$ (108,469)$
Total General Fund 32,364,987$ 40,097,634$ 39,462,093$ 635,541$
Special Revenue Funds: Coal Road Fund: Public works:
Maintenance of highways, streets, bridges and sidewalks:
Maintenance of highways, streets, bridges and sidewalks 125,000$ 125,000$ -$ 125,000$
Virginia coalfield 25,000 84,159 225,158 (140,999)
Total Coal Road Fund 150,000$ 209,159$ 225,158$ (15,999)$
CARES Fund: General government administration:
General and financial administration: Other general and financial administration -$ 1,027$ -$ 1,027$
Public safety: Other protection:
Other protection -$ 18,175$ -$ 18,175$
Public works: Maintenance of general buildings and grounds:
General properties -$ 5,701$ -$ 5,701$
Health and welfare: Welfare:
Personnel costs -$ 147,390$ 171,657$ (24,267)$
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Russell County Highlight
County of Russell, Virginia Schedule 2
‘Schedule of Expenditures - Budget and Actual Page 3 of 4 Governmental Funds
For the Year Ended June 30, 2022
Variance with
Final Budget Original Final Positive Fund, Function, Activity and Element Budget Budget atu Negative ‘General Fund: (Continued) Community development: (Continued) Planning and community development: (Continued) Industrial Development Authority s 7.500 $ 7,500 § 7,500 $ 5A Contributions 369.233, or939 702.079 (3,140) Cumberland Plateau 35,000, 35,000, 35,000, Regional Housing 1,800, 1,800, 1,800 Highway Safety Commision 4200 4650 4650 Canneres 25,000, 35,350, 35.571 co Tourism 6,000, 8.665 7,308 bad Total panning and community development S983 89.5 SBS RITA Environmental management Sil and Water Conservation S100 § 10.500 § 7500_$ 3,000 cooperative extenston program PI Extension Swan seme se so Total community evelopment Ss sea059 §as930 § 913458 §_64.328) Nendepartmenta: Nendepartmental $0583 $583,000 § 316.19 § 267.4651 Total nonéepartmental $270,583 § 583,000 _§ 316,149 -§ 267.651 Capital projects: Courthouse restoration project S Ber S 35a § 420.98 § (564,050) Other capital projects 18,000, 37.035, 19,035) Total capital projects 3 Bws_S Sy yo.asz a zas.977_S 583.085) Debt service Principal payments S$ 1669,992 § 1,780240 $1,860,240 § (80,000) Interest Expense 50.736 or9.4e2 ea79it (23,465), Total debt service S__R0se8 $7,399,682 _§ 7,508,151 F——108,469) ‘otal General Fund $32,366,987 $40,007,634 $39,482,005 § 635,541 Special Revenue Funds: ‘coal Road Fund: Public wore Maintenance of highways, streets, bridges ad sidewalks: Maintenance of highways, streets, bridges and sidewalks S 125,00 § 125,000 § $125,000 Virginia coalild 25,000, 84.159 225.158 (140,99) Total Coal Road Fund S$ 150000§ 209.159 § 5.158 $15,999) ‘CARES Fun General goveroment administration: ‘General and financial administration: ‘ther general and financial administration s s sos 5 1.027 Public safety ‘Other protection: ‘Other protection s S815 § S187 Public works: aintenance of general buildings and grounds: General properties s 8 5701S 8 5,701 Health and welfare: Welfare Personnel costs s S_197390 $767 _§_az0n)
“132-
Schedule 2 Page 4 of 4
Variance with
Final Budget Original Final Positive Budget Budget Actual (Negative)
County of Russell, Virginia Schedule of Expenditures - Budget and Actual
Governmental Funds For the Year Ended June 30, 2022
Fund, Function, Activity and Element
Special Revenue Funds: (Continued) CARES Fund: (Continued)
Total CARES Fund -$ 172,293$ 171,657$ 636$
ARPA Fund: General government administration:
General and financial administration: Other general and financial administration -$ 311,696$ 311,695$ 1$
Public safety: Law enforcement and traffic control:
Sheriff -$ 303,560$ 286,089$ 17,471$
Public works: Sanitation and waste removal:
Litter Coordinator -$ 111,917$ 62,579$ 49,338$
Total ARPA Fund -$ 727,173$ 660,363$ 66,810$
Total Primary Government 32,514,987$ 41,206,259$ 40,519,271$ 686,988$
Discretely Presented Component Unit - School Board: School Operating Fund: Education:
Administration of schools: Administration and health services 2,365,846$ 2,365,846$ 2,429,513$ (63,667)$
Instruction costs:
Instructional costs 34,709,187$ 34,709,187$ 31,856,679$ 2,852,508$
Technology 1,849,260 1,849,260 2,844,183 (994,923)
Total instruction costs 36,558,447$ 36,558,447$ 34,700,862$ 1,857,585$
Operating costs:
Pupil transportation 2,854,283$ 2,854,283$ 3,495,925$ (641,642)$
Operation and maintenance of school plant 12,733,788 12,733,788 9,178,011 3,555,777
Food service and non-instructional 1,901,883 1,901,883 2,266,928 (365,045)
Facilities - - 3,799,823 (3,799,823)
Total operating costs 17,489,954$ 17,489,954$ 18,740,687$ (1,250,733)$
Total education 56,414,247$ 56,414,247$ 55,871,062$ 543,185$
Debt service: Interest and other fiscal charges -$ -$ 11,981$ (11,981)$
Total School Operating Fund 56,414,247$ 56,414,247$ 55,883,043$ 531,204$
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Russell County Highlight
Russell County Highlight
Russell County Highlight
Russell County Highlight
Russell County Highlight
Russell County Highlight
County of Russell, Virginia Schedule 2
‘Schedule of Expenditures - Budget and Actual Page 4 of 4 Governmental Funds
For the Year Ended June 30, 2022
Variance with
Final Budget Original Final Positive Fund, Function, Activity and Element Budget Budget Negative Special Revenue Funds: (Continued) ‘CARES Fund: (Continued) Total CARES Fund s Sings sings $s 636 ARPA Fund: ‘General government administration: ‘General and financial administration ‘Other general and financial administration s S349 §_a695 § 1 Public safety Law enforcement and traffic contrat Sheet s Ss 03560 $ 286089 § tna Public wor: Sanitation and waste removal Litter Coordinator s Sing s sm $98 Total ARPA Fund s Snir $6085 $66,810 Total Primary Government 45,206,259 $40,519,271, Discretely Presented Component Unit - School Board: ‘School Operating Fund: Esvcation: ‘Administration of schools ‘Administration and health services S 2.365.846 § 2.365.046 § 249.513 _§ (63.667)
Instructional costs S 34,709,187 § 34,709,187 $31,856,679 $2,852,508 Technology 1369.20 1.808200 2,844,103 (934923) Total instruction costs S36 58,467 _S36,558,487 S34 700.862 $1,857,585,
Operating costs: Pupil transportation S 21854283 § 2.854283 § 3.495.925 $641,682) Operation and maintenance of school pant 12,733,788 2733788 9.TBOI 3,555,777 Food service and non-instructonal 41901883 ,900,883 2,266,928 (265,045) Facies 3.799.823 _(3.79.823) Total operating costs Sao STATIS T870.687 §—(1.250.733) Total education Sseataze7 $§ searaza7 $5071.06 $543,185
Debt service
Interest and other fecal charges s s Singers angen otal Sehoot Operating Fund S _Soarsza7 § 56.414247 $ 55,883,003 § 531,204
“133+
Other Statistical Information
Other Statistical Information
Table 1
General Parks, Interest Fiscal Government Judicial Public Public Health and Recreation, Community on Long- Sewer Year Administration Administration Safety Works Welfare (1) Education and Cultural Development Term Debt Authority Total
2021-22 2,787,627$ 2,904,085$ 6,244,012$ 4,049,727$ 7,491,558$ 10,503,873$ 505,537$ 885,795$ 619,729$ 299,989$ 36,291,932$
2020-21 1,877,921 2,024,412 6,455,538 3,844,745 9,078,839 7,311,793 601,351 2,647,011 304,508 317,087 34,463,205
2019-20 1,900,993 2,847,235 6,860,358 3,075,914 7,178,554 8,533,863 650,254 924,518 546,107 367,504 32,885,300
2018-19 1,955,177 2,461,521 6,222,716 3,217,305 8,165,010 6,531,101 548,374 935,883 487,606 351,058 30,875,751
2017-18 2,003,925 2,259,365 6,409,699 3,262,221 9,191,297 8,613,945 583,009 957,043 499,803 388,981 34,169,288
2016-17 2,085,083 2,290,688 6,395,713 3,152,142 9,535,001 9,519,958 552,562 992,839 515,428 454,634 35,494,048
2015-16 2,099,001 2,080,921 5,999,917 3,547,942 8,926,570 7,744,464 481,145 1,025,246 342,729 441,642 32,689,577
2014-15 1,772,163 1,945,227 6,352,397 3,725,640 8,115,359 7,596,324 514,678 1,023,371 385,445 430,426 31,861,030
2013-14 1,702,984 2,039,186 6,005,354 4,381,728 7,169,883 8,943,324 546,171 1,687,428 457,095 403,848 33,337,001
2012-13 1,269,473 2,097,469 5,908,601 4,592,807 8,285,584 7,484,972 529,959 2,173,719 498,401 441,349 33,282,334
(1) 2018-2019 the Workforce Investment Board became it’s own entity, Southwest Virginia Workforce Development Board.
County of Russell, Virginia
Last Ten Fiscal Years Government-Wide Expenses by Function
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Table 1 County of Russel, Virginia Government-Wide Expenses by Function Last Ten Fiscal Years
General Parks, Interest Fiscal Government Judicial Public Public Health and Recreation, Community cn Long: Sewer
Year Administration Administration __Safety Works __Welfare (1)__Education _andCultural_Development_Term Debt _ Authority Total 2021-22 § 2,787,627 $ 2,904,085 $ 6,244,012 $ 4,049,727 $7,491,558 $ 10,503,873 $ 505,537 $ 885,795 $ 619,729 $ 299,989 § 36,291,932 2020-21 1,877,921 2,024,412 6,455,538 3,844,745 9,078,839 7,311,793 601,351 2,647,011 304,508 317,087 34,463,205, 2019-20 1,900,993 2,847,235 6,860,358 3,075,914 7,178,554 8,533,863 650,254 924,518 546,107 367,504 32,885,300 2018-419 11955,177 2461521 622,716 3,217,308 8,165,010 6,531,101, 548,374 935,883, 487,606 351,058 30,875,751 2017-18 2,003,925 2,259,365 6,409,699 3,262,221 9,191,297 8,613,945 583,009 957,043, 499,803 388,981 34,169,288 2016-17 2,085,083 2,290,688 6,395,713, 3,157,142 9,535,001 9,519,958 552,562 997,839 515.428 454,634 35,494,048, 2015-416 21099,001 2j080,921 5,999,917 3,547,942 8,926,570 7,744,468 481,145 1,025,246 342,729 441,642 32,689,577 201415, 1,772,163 1,945,227 6,352,397 «3,725,640 8,115,359 7,596,324, 514,678 1,023,371 385,445 430,426 31,861,030 2013-14 1,702,984 2,039,186 6,005,354 4,381,728 7,169,883 8,943,324 546,171 1,687,428 457,095 403,848. 33,337,001 2012413 1,269,473 2,097,469 «5,908,601 4,592,807 8,285,584 7,484,972 529,959 2073719 498,401 441,349 33,282,334
“4, (1) 2018-2019 the Workforce Investment Board became ts own entity, Southwest Virginia Workforce Development Board. s
Table 2
Grants and Operating Capital Unrestricted Contributions
Charges Grants Grants General Other Revenue from Not Restricted Fiscal for and and Property Local use of Money to Specific Gain on Sale of Year Services Contributions Contributions Taxes (1) Taxes and Property Miscellaneous Programs Asset Total
2021-22 432,001$ 10,908,468$ -$ 12,256,262$ 4,355,271$ 116,235$ 1,457,633$ 2,253,930$ 408,650$ 32,188,450$
2020-21 586,742 13,856,417 - 17,403,606 3,370,558 176,347 153,770 2,274,529 6,391 37,828,360
2019-20 519,382 9,864,066 - 17,746,273 3,035,109 184,588 333,504 2,403,842 - 34,086,764
2018-19 497,780 10,134,066 50,000 17,541,471 3,250,496 282,315 210,687 2,422,355 - 34,389,170
2017-18 546,610 11,391,778 - 17,446,217 3,390,189 254,538 233,890 2,340,315 - 35,603,537
2016-17 414,700 11,862,113 - 17,065,361 3,297,225 185,677 91,300 2,493,045 - 35,409,421
2015-16 430,589 10,616,989 61,200 15,198,122 3,781,925 223,008 180,343 2,501,627 - 32,993,803
2014-15 468,117 9,648,228 - 15,762,013 4,635,427 257,108 226,621 2,553,497 - 33,551,011
2013-14 445,727 8,991,231 320,311 15,749,617 4,873,857 359,952 86,115 2,562,116 - 33,388,926
2012-13 398,711 9,822,073 - 14,686,993 5,079,612 45,865 60,479 2,580,839 - 32,674,572
(1) For fiscal year 2021-22, the County increased allowance to write-off company taxes related to lawsuit.
County of Russell, Virginia Government-Wide Revenues
Last Ten Fiscal Years
PROGRAM REVENUES GENERAL REVENUES
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“Sel
County of Russell, Virginia Government-Wide Revenues Last Ten Fiscal Years
Table 2
PROGRAM REVENUES GENERAL REVENUES Grants and Operating Capital Unrestricted Contributions Charges Grants Grants General Other Revenue from Not Restricted Fiscal for and and Property Local _use of Money to Specific Gain on Sale of. Year___Services Contributions __Contributions Taxes (1) Taxes___and Property Miscellaneous Programs Asset Total 2021-22 $ 432,001 $ 10,908,468 § : 12,256,262 $ 4,355,271 § 116,235 $1,457,633 $2,253,930 § 408,650 $ 32,188,450 2020-21 586,742 ‘13,856,417 17,403,606 3,370,558 176,347 153,70 2,274,529 6,391 37,828,360 2019-20 519,382 9,864,066 : 17,746,273 3,035,109 184,588 333,504 2,403,842 = 34,086,764 2018-19 497,780 10,134,066 50,000 17,541,471 3,250,496 282,315 210,687 2,422,355 - 34,389,170 2017-18 546,610 11,391,778 : 17,446,217 3,390,189 254,538 233,890 2,340,315, 35,603,537 2016-17 414,700 11,862,113, : 17,065,361 3,297,225 185,677 91,300, 2,493,045, = 35,409,421 2015-16 430,589 10,616,989 61,200 15,198,122 3,781,925 223,008 180,343 2,501,627 = 32,993,803 201415 468,117 9,648,228 : 15,762,013 4,635,427 257,108 226,621 2,553,497 33,551,011 2013-14 445,727 8,991,231 320,311 15,749,617 4,873,857 359,952. 86,115 2,562,116 = 33,388,926 2012-13 398,711 9,822,073 - 14,686,993 5,079,612 45,865 60,479 2,580,839 = 32,674,572
(1) For fiscal year 2021-22, the County increased allowance to write-off company taxes related to lawsuit,
Table 3
General Parks, Fiscal Government Judicial Public Public Health and Recreation, Community Non- Debt Year Administration Administration Safety Works Welfare (3) Education (2) and Cultural Development departmental Service Total
2021-22 2,288,123$ 2,946,289$ 6,567,080$ 3,146,924$ 7,608,395$ 57,893,595$ 559,426$ 913,658$ 316,149$ 2,508,151$ 84,747,790$
2020-21 1,932,060 2,558,146 6,961,369 2,911,781 8,788,395 48,428,709 538,806 2,706,439 942,681 1,787,375 77,555,761
2019-20 1,952,540 2,738,739 7,346,195 2,741,815 7,169,005 44,663,872 609,539 989,088 224,547 1,744,622 70,179,962
2018-19 2,153,583 2,680,600 7,267,404 2,893,513 8,302,729 43,224,697 543,499 959,458 421,793 2,066,840 70,514,116
2017-18 2,177,595 2,397,387 6,554,101 3,331,380 9,601,443 42,484,928 566,272 1,083,779 158,828 1,893,421 70,249,134
2016-17 1,829,925 2,326,471 7,012,800 3,480,788 9,950,089 40,397,495 522,426 1,008,002 147,991 1,935,190 68,611,177
2015-16 1,787,592 2,193,822 6,914,427 3,529,620 9,209,141 39,874,115 468,670 1,048,554 515,527 1,747,721 67,289,189
2014-15 1,717,342 2,011,601 6,839,477 3,962,315 8,354,018 39,320,723 480,741 1,046,895 112,482 1,946,577 65,792,171
2013-14 1,651,589 2,039,720 5,955,754 4,500,894 7,412,261 38,945,001 507,694 1,701,241 112,027 1,810,023 64,636,204
2012-13 1,797,929 2,096,382 5,742,101 4,744,331 8,334,736 40,161,416 488,706 2,283,910 423,737 2,869,820 68,943,068
(1) Includes General and Special Revenue funds of the Primary Government and the operating fund of its Discretely Presented Component Unit - School Board. Excludes Capital Projects. (2) Excludes contribution from Primary Government to Discretely Presented Component Unit - School Board. (3) 2018-2019 the Workforce Investment Board became it’s own entity, Southwest Virginia Workforce Development Board.
County of Russell, Virginia General Governmental Expenditures by Function (1)
Last Ten Fiscal Years
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“9b
County of Russell, Virginia ‘General Governmental Expenditures by Function (1) Last Ten Fiscal Years
‘able
cenerat Parks, Fecal Government Judicial Public Public Health ang Recreation, Community Nn: bebe Year Administration Administration Safety Woes Welfare (3) Eduction (2) _and Cultural__Development__departmental—_—_Service Total wori22 $2,288,123 $2,946,289 $6,567,080 $3,146,924 § 7,608,395 § 57,893,505 § 559426 $915.65 $316,149 § 2,508,151 $84,747,790 2010-21 4192,060 2558146 6,961,369 aovrer 8,788,395 48,428,709 s3ee06 2,706,439 942,681 erm 77:555,761 2019.26 4195540 278.79 7,346,195 aan 7,169,005 44,663,872 609,539 999,088 masa si7aae22 70,179,962 roie-19 2.153 583 2,680,600 1.267 404 2am 513 8.302,729 43,224607 50.499 959,458 a7 2o66e40 70,514,116 worse 2.477:595 2,397,387 6.554.101 3,331,380 sora «24a 928 566.272 4,083.779 156/828 4a93aan 70,249,134 16-17 4.429,925 2nean 17012;800 3.480788 9,950,089 40,397,495 522,06 1,008,002 147.991 41935,190 68,611,177 015-16 787.592 2,193,822 6.914.427 3529,620 9.209.141 39,874.15 468,670, 104854 15.307 snare 67,289,109 014-15 Anna 2ov.601 6.839.477 3,962,315 8354018 39,320,723 490,741 1,046,895 112.482 ses 65,792,171 wore-14 1651589 2,039,720 5.955.754 ‘4500894 712261 38,945,001 07,654 ror 112,007 810,003 64/636,204 wor 47973929 2,096,382 5,742,101 4744301 B36 01616 498,706 2283910 an 2869.820 68,903,068
(1) Includes Genera and Special Revenue funds ofthe Primary Government andthe operating fund of ts isretely Presented Component Unit - School Board. Excludes Capital Projects (2) Excludes contribution from Primary Government to Discretely Presented Component Uni School Board (3) 2018-2019 the Wockforce Investment Board became its own entity, Southwest Virginia Wockforce Development Board
Table 4
Revenue Permits, from the
General Other Privilege Fees, Fines Use of Charges Fiscal Property Local Regulatory and Money and for Recovered Inter- Year Taxes Taxes Licenses Forfeitures Property Services Miscellaneous Costs governmental (2) Total
2021-22 16,579,875$ 4,355,271$ 43,484$ 10,279$ 118,366$ 2,198,574$ 607,109$ 1,453,739$ 59,844,818$ 85,211,515$
2020-21 16,671,668 3,370,558 42,459 5,524 176,674 1,499,241 521,223 1,276,983 56,166,892 79,731,222
2019-20 16,065,093 3,035,109 47,900 6,885 182,583 698,549 520,344 2,048,827 47,792,348 70,397,638
2018-19 15,901,393 3,250,496 43,183 13,545 281,848 720,026 446,681 2,240,716 46,905,798 69,803,686
2017-18 16,390,872 3,390,189 68,668 16,708 259,642 710,045 534,953 1,531,418 46,735,222 69,637,717
2016-17 17,415,482 3,297,225 32,009 18,804 186,397 684,981 342,528 1,651,000 46,597,608 70,226,034
2015-16 15,071,101 3,781,925 30,258 14,136 223,772 676,644 426,624 1,607,321 44,977,461 66,809,242
2014-15 15,746,635 4,635,427 40,342 2,334 251,962 776,757 472,339 1,338,279 44,426,079 67,690,154
2013-14 16,011,500 4,873,857 40,292 31,151 352,852 803,470 307,398 1,121,491 41,977,914 65,519,925
2012-13 14,696,587 5,079,612 34,152 14,955 39,878 951,229 352,993 1,588,307 44,418,919 67,176,632
(1) Includes General and Special Revenue funds of the Primary Government and its Discretely Presented Component Unit - School Board. Excludes Capital Projects. (2) Excludes contribution from Primary Government to Discretely Presented Component Unit - School Board.
County of Russell, Virginia General Governmental Revenues by Source (1)
Last Ten Fiscal Years
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Table 4
County of Russell, Virgin’
General Governmental Revenues by Source (1) Last Ten Fiscal Years
Revenue Permits, from the General other Privilege Fees, Fines Use of Charges Fiscal Property Local Regulatory and Money and for Recovered Inter Year Taxes Taxes Licenses Forfeitures Property Services ___ Miscellaneous Costs governmental (2)__Total UR —-§ 16,579,875 § 4,385,271 § 43,484 § 10279 $ 118,366 $2,198,574 § 607,109 $1,483,739 $59,844,818 $85,211,515, 2020.21 16,671,668 3,370,558 42,459 5.524 176,674 1,499,241 521,223 1,276,983 56,166,892 79,731,222 2019-20 16,065,093 3,035,109 47,900 6,885, 182,583 698,549 520,344 21048 827 47792348 70,397,638, 2018-19 15,901,393 3,250,496 43,183 13,545, 281,848 720,026 446,681 2,240,716 46,905,798 69,803,686 2017-18 16,390,872 3,390,189 68,668 16,708, 259,642 710,045, 534,953 4531418 46,735,222 69,637,717 2016-17 17,415,482 3,297,225 32,009 18,804 186,397 624,981 34/528 11651,000 46,597,608 70,226,024 2015-16 15,071,101 3,781,995 30,258, 14.16 mm 676,644 426,624 1,607,321 AA 9TTAGL 66,809,242 2014.15 15,746,635 4,635,427 40,342 21334 251,962 716.757 439 1,338,279 44,006,079 67,690,154 2013-14 16,011/500, 4,873,857 40,292 ans 352,852 03,470 307,398 ar2491 4197914 65,519,925. 2012-13 14,696,587 5,079,612 34,152 14,955 39,878 951,229 352,993 11588, 307 44418,919 67,176,622
(1) tces Genel ad Spc Rete fun ofthe rina Goverment and ts Dsretely Preserted Component Unt Sha Berd, Ecudes opal Pet 2 bxdues cotton am Pray Goverment Date Peented Copenh od §
Table 5
Percent of Percent of Total Current Percent Delinquent Total Total Tax Outstanding Delinquent
Fiscal Tax Tax of Levy Tax Tax Collections Delinquent Taxes to Year Levy (1) Collections (1) Collected Collections (1) Collections to Tax Levy Taxes (1, 2) Tax Levy
2021-22 19,383,902$ 16,688,695 86.10% 888,027$ 17,576,722$ 90.68% 9,786,415$ 50.49% 2020-21 18,589,131 16,298,878 87.68% 1,316,051 17,614,929 94.76% 8,505,640 45.76% 2019-20 18,740,791 15,990,742 85.33% 1,141,973 17,132,715 91.42% 7,729,993 41.25% 2018-19 18,755,991 15,878,451 84.66% 1,063,006 16,941,457 90.33% 6,126,347 32.66% 2017-18 17,975,777 16,002,677 89.02% 1,377,820 17,380,497 96.69% 4,476,207 24.90% 2016-17 18,121,006 16,441,108 90.73% 1,946,062 18,387,170 101.47% 3,734,590 20.61% 2015-16 17,361,249 14,744,908 84.93% 1,312,236 16,057,144 92.49% 4,096,565 23.60% 2014-15 17,704,326 15,716,165 88.77% 994,555 16,710,720 94.39% 3,823,404 21.60% 2013-14 17,616,878 16,022,072 90.95% 895,532 16,917,604 96.03% 3,914,585 22.22% 2012-13 16,328,495 14,812,738 90.72% 953,671 15,766,409 96.56% 4,786,523 29.31%
(1) Exclusive of penalties and interest. (2) For fiscal year 2021-22, before property taxes related to lawsuit were written off.
County of Russell, Virginia Property Tax Levies and Collections
Last Ten Fiscal Years
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Table 5 County of Russell, Virginia Property Tax Levies and Collections Last Ten Fiscal Years
Percent of Percent of
Total Current Percent Delinquent Total Total Tax Outstanding Delinquent
Fiscal Tax Tax of Levy Tax Tax Collections Delinquent Taxes to
Year Levy (1) Collections (1) Collected Collections (1) Collections to Tax Levy Taxes (1, 2) Tax Levy 2021-22 $ 19,383,902 16,688,695 86.10% $ 888,027 § 17,576,722 90.68% $ 9,786,415 50.49% 2020-21 18,589,131 16,298,878 87.68% 1,316,051 17,614,929 94.76% 8,505,640 45.76% 2019-20 18,740,791 15,990,742 85.33% 1,141,973 17,132,715 91.42% 7,729,993 41.25% 2018-19 18,755,991 15,878,451 84.66% 1,063,006 16,941,457 90.33% 6,126,347 32.66% 2017-18 17,975,777 16,002,677 89.02% 1,377,820 17,380,497 96.69% 4,476,207 24.90% 2016-17 18,121,006 16,441,108 90.73% 1,946,062 18,387,170 101.47% 3,734,590 20.61% 2015-16 17,361,249 14,744,908 84.93% 1,312,236 16,057,144 92.49% 4,096,565 23.60% BS 2014-15 17,704,326 15,716,165 88.77% 994,555 16,710,720 94.39% 3,823,404 21.60% 8 2013-14 17,616,878 16,022,072 90.95% 895,532 16,917,604 96.03% 3,914,585 22.22% 2012-13 16,328,495 14,812,738 90.72% 953,671 15,766,409 96.56% 4,786,523 29.31%
(1) Exclusive of penalties and interest. (2) For fiscal year 2021-22, before property taxes related to lawsuit were written off,
Table 6
Machinery Fiscal Real Personal and Merchant’s Mobile Public Year Estate (1) Property Tools Capital Homes Service (2) Total
2021-22 1,437,398,091$ 362,600,380$ 66,103,456$ 7,795,479$ 13,798,248$ 313,809,472$ 2,201,505,126$
2020-21 1,436,230,815 351,564,264 59,279,207 8,983,665 15,425,782 325,134,394 2,196,618,127
2019-20 1,441,294,836 355,435,332 59,906,364 7,482,353 15,473,918 324,047,377 2,203,640,180
2018-19 1,425,907,354 340,126,676 54,399,602 5,701,488 21,270,790 251,848,360 2,099,254,270
2017-18 1,437,419,342 321,810,049 56,429,665 5,992,268 20,380,636 288,824,827 2,130,856,787
2016-17 1,424,285,595 327,638,704 57,050,690 5,716,770 20,726,176 265,575,303 2,100,993,238
2015-16 1,435,763,539 298,654,470 58,791,092 5,876,008 21,377,908 243,897,231 2,064,360,248
2014-15 1,426,948,990 300,976,802 71,451,300 6,084,205 21,500,580 240,244,298 2,067,206,175
2013-14 1,420,301,334 297,609,286 92,212,643 6,061,014 21,820,581 315,700,293 2,153,705,151
2012-13 1,323,141,655 292,809,049 86,317,454 5,631,601 23,486,868 230,027,520 1,961,414,147
(1) Real estate is assessed at 100% of fair market value. (2) Assessed values are established by the State Corporation Commission-includes all property types.
County of Russell, Virginia Assessed Value of Taxable Property
Last Ten Fiscal Years
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~6El
County of Russell, Virginia
Assessed Value of Taxable Property
Last Ten Fiscal Years
Table 6
Machinery
Fiscal Real Personal and ‘Merchant’s Nobile Public
Year Estate (1) Property Tools Capital Homes. Service (2) Total 2021-22 $ —1,437,398,091 $ 362,600,380 $ 66,103,456 $ 7,795,479 $ 13,798,248 $ 313,809,472 $ —2,201,505,126 2020-21 1,436,230,815, 351,564,264 59,279,207 8,983,665 15,425,782 325,134,394 2,196,618,127 2019-20 1,441,294,836 355,435,332 59,906,364 7,482,353 15,473,918 324,047,377 2,203,640,180 2018-19 1,425,907,354 340,126,676 54,399,602 5,701,488 21,270,790 251,848,360 2,099,254,270 2017-18 1,437,419,342 321,810,049 56,429,665 5,992,268 20,380,636 288,824,827 2,130,856,787 2016-17 1,424,285,595 327,638,704 57,050,690 5,716,770 20,726,176 265,575,303 2,100,993,238 2015-16 1,435, 763,539 298,654,470 58,791,092 5,876,008 21,377,908 243,897,231 2,064,360,248 2014-15 1,426,948,990 300,976,802 71,451,300 6,084,205 21,500,580 240,244,298 2,067,206,175 2013-14 1,420,301,334 297,609,286 92,212,643, 6,061,014 21,820,581 315,700,293 2,153,705, 151 2012-13 1,323,141,655, 292,809,049 86,317,454 5,631,601 23,486,868, 230,027,520 1,961,414,147
(1) Real estate is assessed at 100% of fair market value. (2) Assessed values are established by the State Corporation Commission-includes all property types.
Table 7
Fiscal Real Personal Machinery Merchant’s Mobile Year Estate (2) Property & Tools Capital Homes
2021-22 $ 0.63 $ 1.95 $ 1.95 $ 0.65 $ 0.63
2020-21 0.63 1.95 1.95 0.65 0.63
2019-20 0.63 1.95 1.65 0.65 0.63
2018-19 0.63 1.95 1.65 0.65 0.63
2017-18 0.63 1.95 1.65 0.65 0.63
2016-17 0.63 1.95 1.65 0.65 0.63
2015-16 0.63 1.65 1.65 0.65 0.63
2014-15 0.63 1.65 1.65 0.65 0.63
2013-14 0.56/0.63 1.65 2.00 0.65 0.56
2012-13 0.70/0.56 1.65 1.65 0.65 0.70
(1) Per $100 of assessed value. (2) 2nd half due December/1st half due June of fiscal year.
County of Russell, Virginia Property Tax Rates (1) Last Ten Fiscal Years
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Table 7 County of Russell, Virginia Property Tax Rates (1) Last Ten Fiscal Years
Fiscal Real Personal Machinery Merchant’s Mobile
Year Estate (2) Property & Tools Capital Homes
2021-22 $ 0.63 $ 1.95 § 1.95 $ 0.65 0.63, 2020-21 0.63 1.95 1.95 0.65 0.63, 2019-20 0.63 1.95 1.65 0.65 0.63 2018-19 0.63, 1.95 1.65 0.65, 0.63 2017-18 0.63, 1.95 1.65 0.65 0.63 2016-17 0.63, 1.95 1.65 0.65 0.63 2015-16 0.63, 1.65 1.65 0.65 0.63 2014-15 0.63, 1.65 1.65 0.65 0.63 2013-14 0,56/0.63 1.65 2.00 0.65, 0.56 2012-13 0.70/0.56 1.65 1.65 0.65, 0.70
(1) Per $100 of assessed value. (2) 2nd half due December/ 1st half due June of fiscal year.
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Table 8
Ratio of Net Bonded Net
Assessed Gross Net Debt to Bonded Fiscal Value (in Bonded Bonded Assessed Debt per Year Population (1) thousands) (2) Debt (3) Debt Value Capita
2021-22 25,781 2,196,618$ 3,008,661$ 3,008,661$ 0.14% 117$
2020-21 25,781 2,196,618 3,806,495 3,806,495 0.17% 148
2019-20 28,897 2,203,640 4,580,219 4,580,219 0.21% 159
2018-19 28,897 2,099,254 4,975,292 4,975,292 0.24% 172
2017-18 28,897 2,130,857 5,953,218 5,953,218 0.28% 206
2016-17 28,897 2,100,993 6,906,780 6,906,780 0.33% 239
2015-16 28,897 2,064,360 7,930,656 7,930,656 0.38% 274
2014-15 28,897 2,067,206 8,951,609 8,951,609 0.43% 310
2013-14 28,897 2,153,705 9,955,282 9,955,282 0.46% 345
2012-13 28,897 1,961,414 10,865,788 10,865,788 0.55% 376
(1) Bureau of the Census. (2) Real property assessed at 100% of the fair market value. (3) Includes all long-term general obligation bonded debt, bonded anticipation notes, and literary fund loans. Excludes revenue bonds, landfill closure/post-closure care liability, capital leases, and compensated absences.
County of Russell, Virginia Ratio of Net General Bonded Debt to
Last Ten Fiscal Years Assessed Value and Net Bonded Debt Per Capita
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Table 8 County of Russell, Virginia Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years
Ratio of Net Bonded Net
Assessed Gross Net Debt to Bonded
Fiscal Value (in Bonded Bonded Assessed Debt per
Year Population (1) thousands) (2) Debt (3) Debt Value Capita 2021-22 25,781 § 2,196,618 § 3,008,661 $ 3,008,661 0.14% $ "7 2020-21, 25,781 2,196,618 3,806,495 3,806,495 0.17% 148 2019-20 28,897 2,203,640 4,580,219 4,580,219 0.21% 159 2018-19 28,897 2,099,254 4,975,292 4,975,292 0.24% 1m 2017-18 28,897 2,130,857 5,953,218 5,953,218 0.28% 206 2016-17 28,897 2,100,993 6,906,780 6,906,780 0.33% 239 2015-16 28,897 2,064,360 7,930,656 7,930,656 0.38% 274 2014-15 28,897 2,067,206 8,951,609 8,951,609 0.43% 310 2013-14 28,897 2,153,705 9,955,282 9,955,282 0.46% 345 2012-13 28,897 1,961,414 10,865,788 10,865,788 0.55% 376
(1) Bureau of the Census.
(2) Real property assessed at 100% of the fair market value.
{3) Includes all long-term general obligation bonded debt, bonded anticipation notes, and literary fund loans. Excludes revenue bonds, landfill closure/post-closure care liability, capital leases, and compensated absences.
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Table 9
Ratio of Total Debt Service
Total General to General Fiscal Debt Governmental Governmental Year Service Expenditures Expenditures
2021-22 2,508,151$ 84,747,790$ 2.96% 2020-21 1,787,375 77,555,761 2.30% 2019-20 1,744,622 70,179,962 2.49% 2018-19 2,066,840 70,514,116 2.93% 2017-18 1,893,421 70,249,134 2.70% 2016-17 1,935,190 68,611,177 2.82% 2015-16 1,747,721 67,289,189 2.60% 2014-15 1,946,577 65,792,171 2.96% 2013-14 1,810,023 64,636,204 2.80% 2012-13 2,869,820 68,943,068 4.16%
(1) Includes all governmental funds of the Primary Government and funds of the Discretely Presented Component Unit-School Board.
County of Russell, Virginia Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures (1) Last Ten Fiscal Years
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Table 9 County of Russell, Virginia Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures (1) Last Ten Fiscal Years
Ratio of Total Debt Service Total General to General
Fiscal Debt Governmental Governmental
Year Service Expenditures Expenditures 2021-22 $ 2,508,151 $ 84,747,790 2.96% 2020-21 1,787,375 77,555,761 2.30% 2019-20 1,744,622 70,179,962 2.49% 2018-19 2,066,840 70,514,116 2.93% 2017-18 1,893,421 70,249,134 2.70% 2016-17 1,935,190 68,611,177 2.82% 2015-16 1,747,721 67,289,189 2.60% 2014-15 1,946,577 65,792,171 2.96% 2013-14 1,810,023 64,636,204 2.80% 2012-13 2,869,820 68,943,068 4.16%
(1) Includes alt governmental funds of the Primary Government and funds of the Discretely Presented Component Unit-School Board.
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COMPLIANCE SECTION
COMPLIANCE SECTION
Independent Auditors’ 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
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
We have audited, in accordance with the auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Counties, Cities and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the County of Russell, Virginia’s basic financial statements and have issued our report thereon dated August 2, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County of Russell, Virginia’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County of Russell, Virginia’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County of Russell, Virginia’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001 that we consider to be material weaknesses.
ROBINSON, FARMER, COX ASSOCIATES, PLLC Certified Public Accountants
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ROBINSON, FARMER, COX ASSOCIATES, PLLC
Certified Public Accountants
CPAs | Consuttants
Independent Auditors’ 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
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
We have audited, in accordance with the auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Counties, Cities and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Russell, Virginia as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the County of Russell, Virginia’s basic financial statements and have issued our report thereon dated August 2, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County of Russell, Virginia’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County of Russell, Virginia’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County of Russell, Virginia’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001 that we consider to be material weaknesses.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County of Russell, Virginia’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
County of Russell, Virginia’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on County of Russell, Virginia’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. County of Russell, Virginia’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Blacksburg, Virginia August 2, 2023
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County of Russell, Virginia’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
County of Russell, Virginia’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on County of Russell, Virginia’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. County of Russell, Virginia’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
yy Palas, frre, bape Cserts Blacksburg, Virginia
‘August 2, 2023
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Independent Auditors’ Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited County of Russell, Virginia’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of County of Russell, Virginia’s major federal programs for the year ended June 30, 2022. County of Russell, Virginia’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.
In our opinion, County of Russell, Virginia complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 2, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of County of Russell, Virginia and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of County of Russell, Virginia’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to County of Russell, Virginia’s federal programs.
ROBINSON, FARMER, COX ASSOCIATES, PLLC Certified Public Accountants
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ROBINSON, FARMER, COX ASSOCIATES, PLLC
Certified Public Accountants
CPAs | Consuttants
Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance
To the Honorable Members of the Board of Supervisors County of Russell, Virginia
Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program
We have audited County of Russell, Virginia’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of County of Russell, Virginia’s major federal programs for the year ended June 30, 2022. County of Russell, Virginia’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.
In our opinion, County of Russell, Virginia complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended August 2, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of County of Russell, Virginia and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of County of Russell, Virginia’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to County of Russell, Virginia’s federal programs.
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Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on County of Russell, Virginia’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about County of Russell, Virginia’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding County of Russell, Virginia’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of County of Russell, Virginia’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of County of Russell, Virginia’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-002. Our opinion on each major federal program is not modified with respect to these matters. County of Russell, Virginia’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. County of Russell, Virginia’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
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Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on County of Russell, Virginia’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about County of Russell, Virginia’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
-
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding County of Russell, Virginia’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
-
Obtain an understanding of County of Russell, Virginia’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of County of Russell, Virginia’s internal control ‘over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-002. Our opinion on each major federal program is not modified with respect to these matters. County of Russell, Virginia’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. County of Russell, Virginia’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
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Report on Internal Control over Compliance (continued)
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Blacksburg, Virginia August 2, 2023
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Report on Internal Control over Compliance (continued)
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in ‘internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control ‘over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
- 4 Pel, Srv, lee Odseuite Blacksburg, Virginia
‘August 2, 2023
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Page 1 of 2
Pass-through Federal Entity
Federal Grantor/State Pass - Through Grantor/ Assistance Listing Identifying Federal Program Cluster or Title Number Number Expenditures
Department of Health and Human Services:
Pass Through Payments:
Department of Social Services:
Guardianship Assistance 93.090 1110121, 1110122 319$
Title IV-E Prevention Program 93.472 1140122 6,715
Temporary Assistance for Needy Families 93.558 0400121, 0400122 335,241
0950120
Mary Lee Allen Promoting Safe and Stable Families Program 93.556 0950121, 0950221 33,354
Refugee and Entrant Assistance - State/Replacement Designee Administered Programs 93.566 0500122 1,582
Low-Income Home Energy Assistance 93.568 0600420, 0600421 61,632
Community-Based Child Abuse Prevention Grants 93.590 9560121 985
CCDF Cluster
Child Care Mandatory and Matching Funds of the
Child Care and Development Fund 93.596 0760121, 0760122 75,456
Stephanie Tubbs Jones Child Welfare Services Program 93.645 0900121 840
Foster Care - Title IV-E 93.658 1100121, 1100122 478,168
Adoption Assistance 93.659 1120121, 1120122 683,758
Social Services Block Grant 93.667 1000121, 1000122 507,916
John H. Chafee Foster Care Program for Successful Transition to Adulthood 93.674 9150120, 9150121 8,546
Children's Health Insurance Program 93.767 0540121, 0540122 3,179
Medicaid Cluster
Medical Assistance Program 93.778 1200121, 1200122 316,663
Total Department of Health and Human Services 2,514,354$
Department of Agriculture: Child Nutrition Cluster: Department of Agriculture: National School Lunch Program - Food Distribution (Note 3) 10.555 Not available 133,552$
Department of Education:
National School Lunch Program 10.555 41108, 40254, 41106 1,582,772 1,716,324$
School Breakfast Program 10.553 41110, 40253 518,014
Summer Food Service Program for Children 10.559 60302, 60303 64,686 2,299,024$
Department of Education:
COVID-19 Pandemic EBT Administrative Costs 10.649 86556 3,063
Child and Adult Care Food Program 10.558 70027, 70028, 86555 239,129
Department of Social Services:
SNAP Cluster
State Administrative Matching Grants for the Supplemental 0010121, 0010122
Nutrition Assistance Program 10.561 0040121, 0040122 602,617
Total Department of Agriculture 3,143,833$
Department of Treasury:
Direct Payments:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Not applicable 709,700$
Pass Through Payments:
Virginia Compensation Board:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 2206FFARPA 83,967
Department of Education:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 45277 687,063 1,480,730$
Department of Justice:
COVID-19 - Coronavirus Relief Fund 21.019 SLT0022 11,454
Total Department of Treasury 1,492,184$
Department of Justice:
Direct Payments:
Equitable Sharing Program 16.922 Not applicable 38,920$
Pass Through Payments:
Department of Criminal Justice Services:
COVID Emergency Supplemental Funding Progarm 16.034 20-A5108CE20 CESF 95,265
Violence Against Women Formula Grants 16.588 22-R4705VA21 13,320
Edward Byrne Memorial Justice Assistance Grant Program 16.738 Not available 4,802
Crime Victim Assistance 16.575 22-O1108VW19 40,090
Total Department of Justice 192,397$
Department of Education:
Pass Through Payments:
Department of Education:
Adult Education - Basic Grants to States 84.002 42801, 61111 332,099$
Title I: Grants to Local Educational Agencies 84.010 42901 1,107,567
Special Education Cluster:
Special Education - Grants to States 84.027 43071 972,584$
Special Education - Preschool Grants 84.173 62521 110,291
Total Special Education Cluster 1,082,875
Career and Technical Education: Basic Grants to States 84.048 60031, 61095 83,510
Twenty-First Century Community Learning Centers 84.287 60565 1,810,788
Rural Education 84.358 43481 5,926
Supporting Effective Instruction State Grants
(formerly Improving Teacher Quality State Grants) 84.367 61480 351,277
Student Support and Academic Enrichment Program 84.424 60281 134,039
County of Russell, Virginia Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
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Page 2 of 2
County of Russell, Virginia Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
Pass-through Federal Entity
Federal Grantor/State Pass - Through Grantor/ Assistance Listing Identifying Federal Program Cluster or Title Number Number Expenditures
Department of Education: (continued)
Pass Through Payments: (continued)
Department of Education: (continued)
Elementary and Secondary School Emergency Relief Fund (CRRSA Fund) 84.425R 50195 3,278,082$
Elementary and Secondary School Emergency Relief Fund (ESSERIII Fund) 84.425U 50193 3,293,380 6,571,462
Total Department of Education 11,479,543$
Department of Housing and Urban Development: Pass Through Payments: Department of Housing and Community Development: Community Development Block Grant/State’s Program and Non-Entitlement Grants In Hawaii 14.228 CAMS 191436 110,951$
Institute of Museum and Library Services: Pass Through Payments: The Library of Virginia: Grants to States 45.310 118106 6,244$
Total Expenditures of Federal Awards 18,939,506$
Notes to Schedule of Expenditures of Fedaral Awards:
Note 1 – Basis of Presentation
Note 2 – Summary of Significant Accounting Policies
Note 3 – Food Distribution
Note 4 – Relationship to the Financial Statements Federal expenditures, revenues and capital contributions are reported in the County’s basic financial statements as follows:
Intergovernmental federal revenues per the basic financial statements:
Primary government:
General Fund 3,465,402$
Less: Asset forfeiture funds (36)
Plus: Equitable sharing program difference 38,920
CARES Fund 17,698
ARPA Fund 709,700
Total primary government 4,231,684$
Component Unit School Board:
School Operating Fund 14,707,822$
Total expenditures of federal awards per the basic financial statements 18,939,506$
(2) Pass-through entity identifying numbers are presented where available.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of County of Russell, Virginia under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of County of Russell, Virginia, it is not intended to and does not present the financial position, changes in net position, or cash flows of County of Russell, Virginia.
(3) The County did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. At June 30, 2022, Russell County, Virginia had food commodities totaling $178,237 in inventory.
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Page 1 of 1
Section I - Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unmodified
Internal control over financial reporting: Material weakness(es) identified? Yes
Significant deficiency(ies) identified? No
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs: Material weakness(es) identified? No
Significant deficiency(ies) identified? No
Type of auditors’ report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No
Identification of major programs:
CFDA # Name of Federal Program or Cluster
84.010 Title I Grants to Local Educational Agencies 84.027/84.173 Special Education Cluster
21.027 COVID 19 - Coronavirus State and Local Fiscal Recovery
Funds
84.425 COVID-19 Elementary & Secondary School Emergency
Relief Funds (ESSER Funds)
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No
County of Russell, Virginia
Schedule of Findings and Questioned Costs For The Year Ended June 30, 2022
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Page 1 of 1
County of Russell, Virginia
Schedule of Findings and Questioned Costs For The Year Ended June 30, 2022
Section I - Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes Significant deficiency(ies) identified? No Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
Material weakness(es) identified? No Significant deficiency(ies) identified? No Type of auditors’ report issued on compliance for major programs: Unmodified
‘Any audit findings disclosed that are required to be reported in accordance with 2. CFR Section 200.516(a)? No
Identification of major programs:
CFDA # Name of Federal Program or Cluster 84.010 Title | Grants to Local Educational Agencies 84,027/84.173 Special Education Cluster COVID 19 - Coronavirus State and Local Fiscal Recovery 21.027 Funds
COVID-19 Elementary & Secondary School Emergency
84.425 Relief Funds (ESSER Funds)
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No
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