Patrick County received a good, clean report on its year ended June 30, 2023, audit at the February 12 Board of Supervisor meeting.
Scott Wickham, CPA, CFE, of Robinson, Farmer, Cox Associates (RFC), said three reports are issued for the audit every year.
The first is the Independent Auditors’ Report which speaks to the number and financial statements of the county and the Patrick County School Board.
“The county and the school board received an unmodified opinion, which is the best opinion that you can get. That means the numbers are fairly accurate,” he said.
Wickham said the second report was the Gas Report on State Compliance and Gas Requirements. Aside from a state noncompliance finding that regarded school painting procurement, “it was a clean report, and no items were noted there.”
The last report issued is the Uniformed Guidance, or Federal Compliance Testing, which also was clean, with no findings noted.
“That concludes all our federal testing of the county, the school board, services as well. All that came back really correct and in compliance,” he said.
In 2023, Wickham said the county had a little more than $10 million in net investment in capital assets, including the county’s buildings, infrastructure, vehicles, and the like, and $3,012,044 in restricted funds.
“Those are things such as opioid settlements, donated funds, some asset forfeiture/seizure funds. Things that are restricted by the Code of Virginia or an external party for a certain use,” Wickham said.
Patrick County has $11,257,180 in unrestricted funds for 2023, Wickham said, adding that amount is available for use.
“You can see it’s a bit in growth there from 2019, which is really encouraging to see,” he said. “I know several years ago we sat here and discussed the concerning condition of the county, but it’s much improved, so that’s good to see.”
Wickham said the total revenues for the county are growing about nine percent per year over the five-year trend.
“That’s heavily inflated with the use of ARPA (American Rescue Plan Act) funds. So, you’ll see the intergovernmental revenues increased quite a bit from ’21 to ’22, to ’23. That is the CARES (Coronavirus Aid, Relief, and Economic Security) money you received over that timeframe,” he said.
Overall, he said the revenues have increased by about nine percent, with property taxes being about 4.5 percent.
Wickham said there is a significant increase in the other local taxes category, which accounts for the “1 percent additional, for the most part, related to sales tax which goes to the school board. You’ll see an increase in contribution to the school board, which kind of offsets that increase in revenue,” he said.
A small increase in general administration expenses was noted, from $1,661,445 in 2021 to $2,000,302 in 2023, Wickham said, “but $140,000 of that was ARPA funds this year.”
In addition to an increase in education, there also was an increase in health and welfare, with “a significant increase in CSA (Children’s Services Act) cost in revenues as well to offset this year,” he said.
The total debt service for 2023 was $2,740,109.
“It did decline by 20 percent per year, but that’s a little bit deceiving, 2019 did include that refunding, so there’s additional costs in that year. Excluding that 2019 year, debt services has increased by about 4 percent over the last four years. So, a little bit more of a relative number for you there,” he said.
The total expenses for 2023 were $32,135,628, and increased by less than four percent per year, Wickham said, and added that it is good to see revenues outpacing expenses, “particularly where you were, in a situation where your fund balance was really low. That’s a good way to get back to where you need to be.
For fiscal year 2023, Wickham said 7 percent of the county’s revenues were property taxes and 15 percent were other local taxes, such as local sales taxes, lottery taxes, and meals tax.
The general fund expenses for 2023 include 31 percent for public safety, 23 percent for education, 14 percent for health and welfare, and nine percent for total debt service.
Wickham said Government Finance Officers Association (GFOA), a national organization, recommends “a minimum unassigned fund balance of two months, or 16.67 percent. That’s a minimum and that is a true unassigned fund balance.”
Patrick County’s unassigned fund balance as of June 2023 was $14.2 million, he said and noted that some localities may need more than that versus others.
“Also, you do twice a year (real estate tax) collections, so half of your real estate, personal property, comes in, in June essentially,” Wickham said. “At the end of June, you would expect to have a little higher fund balance than you may have at other points during the year.”
The county’s general long-term obligation debt decreases by about 4 percent per year, Wickham said, “so, it’s good that you’re paying down those bonds.”
Wickham said the state debt average is 3,766 in 2022 and 2023, while the county’s is 3,257.
“You are below that, so that’s good because that state does include Northern Virginia, which should probably have a higher debt per capita,” he said.
In other matters, the board:
*Heard an update on the county’s broadband projects. County Administrator Beth Simms said Charter-Spectrum, which is doing the project in the Claudville area, has started construction.
“They have installed one mile of cable underground. They did hit rock, so they’re having a little bit of a delay. They have multiple crews working, and they’re waiting on some arial permits from Appalachian Power,” she said.
Simms the county is working on scheduling a Department of Housing & Community Development (DHCD) site visit.
“You know, DHCD has put out all this money so they kind of want to come and see progress. So, when we do that, we’ll let you all know and hopefully get some pictures and show the progress that’s happening there,” she said.
With the RiverStreet Networks project, Simms said construction in Franklin County was scheduled to begin on Friday, February 16. “We have been promised that Patrick and Henry Counties will start 30 days after that,” she said.
*Approved minutes from the Jan. 8 and Jan. 22 meetings.
*Approved the bills, claims, and appropriations.
*Set a public hearing for March 11 to approve the Virginia Department of Transportation (VDOT) secondary six-year plan.
*Scheduled a public hearing for March 11 to approve the Fairy Stone Solar siting agreement.
*Approved a performance agreement with Apex Mills Insights Textiles.
*Approved the opening of checking accounts for the Public Service Authority (PSA) and Building Inspections.
*Approved a funding request for Meadows of Dan Volunteer Fire Department.
*Heard the administrator’s report.
*Heard the supervisors’ reports.
*Heard from Norma Bozenmayer, about Doug Perry’s community meeting and a crime watch meeting held by Sheriff Dan Smith and Deputy Dustin Foley.
*Heard from Steve Ferring, of the Dan River District, about the county’s spending and the need for a purchasing agent.
*Heard from Jamie Clark, of the Peters Creek District, about Emergency Medical Services (EMS) and solar.
