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CITY OF FORSYTH, GEORGIAANNUAL FINANCIAL REPORTFOR THE YEAR ENDED DECEMBER 31, 2017Prepared under authorityof the Office of theCity Manageri
CITY OF FORSYTH, GEORGIATABLE OF CONTENTSDECEMBER 31, 2017PageINTRODUCTORY SECTIONTitle PageTable of ContentsList of Principal OfficialsiiiiiiFINANCIAL SECTIONIndependent Auditors’ ReportBasic Financial Statements:Government-wide Financial StatementsStatement of Net PositionStatement of ActivitiesFund Financial StatementsBalance Sheet – Governmental FundsReconciliation of the Balance Sheet of Governmental Fundsto the Statement of Net PositionStatement of Revenues, Expenditures and Changesin Fund Balances of Governmental FundsReconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of Governmental Funds toStatement of ActivitiesStatement of Revenues and Expenditures, and Changes in FundBalances – Budget and Actual – General FundStatement of Net Position – Proprietary FundStatement of Revenues, Expenses and Changes in FundNet Position – Proprietary FundStatement of Cash Flows – Proprietary FundStatement of Fiduciary Assets and Liabilities – Fiduciary FundNotes to the Financial StatementsREQUIRED SUPPLEMENTARY INFORMATIONSchedule of Funding Progress – City of Forsyth Defined Benefit Plan TrustChange in Net Pension Liability – City of Forsyth Defined Benefit Plan TrustSchedule of Contributions – City of Forsyth Defined Benefit Plan TrustGOVERNMENT REPORTSReport on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance with GovernmentalAuditing StandardsSummary Schedule of Prior Year Findingsii14567891012141517184041424446
CITY OF FORSYTH, GEORGIALIST OF PRINCIPAL OFFICIALSMAYOREric S. WilsonCITY COUNCIL MEMBERSMike DoddGreg GoolsbyChris HewettDexter KingMelvin LawrenceJulius StroudCITY MANAGERJanice HallCITY CLERKKristal DunnPOLICE CHIEFEddie HarrisFIRE CHIEFDavid HerndonPUBLIC WORKS DEPARTMENT HEADAlvin RandallELECTRIC DEPARTMENT HEADJohnny HodgesGARAGE DEPARTMENT HEADSteve ButlerECONOMIC DEVELOPMENT/DOWNTOWN DEVELOPMENT AUTHORITYMichael NorrisBETTER HOMETOWN DIRECTORVacantMUNICIPAL COURT JUDGEJ. Kristi LovelaceCITY ATTORNEYC. Robert MeltonCITY AUDITORBuckley & Hopkinsiii
68 North Jackson StreetP.O. Box 885Forsyth, Georgia 31029p // (478) 994-1820f // (478) 994-3102www.bhcpaga.comAlbert P. Hopkins, Jr. CPAEllen F. Wood, T AUDITORS’ REPORTJanuary 31, 2019To the Mayor and City CouncilCity of Forsyth, GeorgiaReport on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities, thebusiness type activities, the discretely presented component unit, each major fund, and theaggregate remaining fund information of City of Forsyth, Georgia, as of and for the year endedDecember 31, 2017, and the related notes to the financial statements, which collectively comprisethe City’s basic financial statements as listed in the table of contents.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error.Auditors’ ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internal controlrelevant to the entity’s preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we expressno such opinion. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of significant accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinions.OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, the business-type activities, thediscretely presented component unit, each major fund, and the aggregate remaining fundinformation of the City of Forsyth, Georgia, as of December 31, 2017, and the respective changesin financial position, and, where applicable, cash flows thereof and the respective budgetarycomparison for the General Fund for the year then ended in accordance with accounting principlesgenerally accepted in the United States of America.Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that themanagement’s discussion and analysis on pages 4-11 and schedule of funding progress, changesin net pension liability and related ratios, and schedule of contributions for the City of Forsyth’sdefined benefit plan on pages51-53 be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board, who considers it to be an essential part of financial reporting forplacing the basic financial statements in an appropriate operational, economic, or historicalcontext. We have applied certain limited procedures to the required supplementary information inaccordance with auditing standards generally accepted in the United States of America, whichconsisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s responses to ourinquiries, the basic financial statements, and other knowledge we obtained during our audit of thebasic financial statements. We do not express an opinion or provide any assurance on theinformation because the limited procedures do not provide us with sufficient evidence to expressan opinion or provide any assurance.Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the City of Forsyth, Georgia’s basic financial statements. The introductorysection, combining and individual non major fund financial statements, the budgetary comparisonschedules, statistical section, and the schedule of projects constructed with special sales taxproceeds, are presented for purposes of additional analysis and are not a required part of the basicfinancial statements. The combining and individual non major fund financial statements, thebudgetary comparison schedules and the schedule of projects constructed with special sales taxproceeds are the responsibility of management and were derived from and relate directly to theunderlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financialstatements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the basicfinancial statements or to the basic financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the combining and individual non major fund financial statements, the2
budgetary comparison schedules, and the schedule of projects constructed with special sales taxproceeds are fairly stated in all material respects in relation to the basic financial statements as awhole. The introductory and statistical sections have not been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, accordingly, we do not express an opinionor provide any assurance on them.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated June 30,2017,on our consideration of the City of Forsyth, Georgia’s internal control over financialreporting 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 to describe the scope of ourtesting of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. Thatreport is an integral part of an audit performed in accordance with Government Auditing Standardsin considering City of Forsyth, Georgia’ sinternal control over financial reporting and compliance.Forsyth, GeorgiaJanuary 31, 20193
CITY OF FORSYTH, GEORGIASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFOR THE YEAR ENDED DECEMBER 31, 2017Variance withFinal BudgetPositive(Negative)Budgeted AmountsOriginalFinalActualRevenues:TaxesGeneral property taxLocal option sales taxInsurance premium taxBeer, wine and alcohol taxFranchise feesLicenses and permitsIntergovernmentalFines and forfeituresCharges for servicesInvestment incomeMiscellaneous income Total 50,000332,200310,4002,4005,000 242,96013,457936,671242,96013,457Total General Government1,193,0881,193,088Public SafetyPoliceFireMunicipal Court1,550,847946,15893,2901,550,847946,15893,290 ,787,718)Expenditures:General GovernmentAdministrationGoverning BodyMayorTotal Public Safety 2,590,295 6,15893,290 - 2,590,295The notes to the financial statements are an integral part of this statement.4
CITY OF FORSYTH, GEORGIASTATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2017Functions/ProgramsPrimary Government:Governmental ActivitiesGeneral governmentPublic safetyPublic worksRecreation and parksBetter HometownInterest on long-term debtTotal governmental activitiesExpenses 5,427Business-type Activities:Combined Utility System Water & SewerElectricCableTotal business-type activities3,161,0407,961,40011,122,440Total Primary Government17,127,867Downtown Development Authority Total Component Units -Program RevenuesOperatingCapitalChargesGrants and Grants andfor Services ContributionsContributionsNet (Expense) Revenue andChanges in Net PositionPrimary GovernmentGovernmental Business-TypeActivitiesActivitiesTotal 116,628358,043305,751780,422- ,321186,32113,151,379-1,419,995 - - (219,801) 991,331)(3,991,331)- Component ,64298,2051,374194,3722,631,498TransfersTotal General Revenues and TransfersChange in Net Position2,938,6915,570,1891,578,858Net Position - Beginning of YearPrior Period Adjustment (Note #)Net Position - Beginning, As Restated3,696,7433,696,743 55,275,60126,100134,237160,337-- General RevenuesProperty TaxSales TaxInsurance premium taxBeer, wine and alcohol taxHotel/motel taxFranchise taxInvestment and interest revenueMiscellaneousTotal General RevenuesNet Position - End of Year 253(64,551)19,247,702 14,207,443 19,483,0444,8144,814 4,814
CITY OF FORSYTH, GEORGIABALANCE SHEETGOVERNMENTAL FUNDSDECEMBER 31, overnmental Governmental(SPLOST Fund)FundsFundsASSETSCash and cash equivalentsReceivables, net of allowanceClaimsTaxesAccountsDue from other fundsDue from other governmentsPrepaid Assets 1,513,548 Total Assets 2,226,792 670,047 178,684 3,075,523 292,574 79,10219,979- 3,050-- 30,810144,245-292,574112,962144,24519,979Total Liabilities391,6553,050175,055569,760Deferred Inflow of Resources:Deferred revenue168,821--168,821Total Deferred Inflow of 792 670,047 178,684 ,154 172,74376,150143,338 9,187LIABILITIES AND FUND BALANCESLiabilities:Accounts payableAccrued liabilitiesDue to other fundsOther liabilitiesFund Balances:NonspendableRestricted for:Capital OutlayPublic Safety ExpendituresDebt ServicePostclosure landfill costsCommittedAssignedUnassignedTotal Fund BalancesTotal Liabilities and Fund Balances The notes to the financial statements are an integral part of this statement.6
CITY OF FORSYTH, GEORGIARECONCILIATION OF THE BALANCE SHEETOF GOVERNMENTAL FUNDS TO THESTATEMENT OF NET POSITIONDECEMBER 31, 2017Total Fund Equity per Balance Sheet of Governmental Funds 2,336,942Amounts reported for governmental activities in the Statement of Net Position differ from amountsreported in the Balance Sheet of Governmental Funds due to the following:Capital AssetsCapital assets used in governmental activities are not financial resources and, therefore, arenot reported in the funds.Cost of the assetsAccumulated depreciation12,323,659(5,495,327)RevenuesSome of the government's revenues will be collected after year-end but are not available soonenough to pay for the current period's expenditures and therefore are deferred in the funds.Receivables, taxesReceivables, insurance claim38,379130,442Deferred outflows and inflows of resources related to pensions represent differences between actualand projected income that accounting standards require be amortized into income over future periods.These deferrals do not constitute current financial resources and are not reported in the funds.78,972Long-term liabilities at year-end consist of the followingNotes payableCapital leasesSPLOST Bonds payableUnamortized SPLOST bond premiumsNet pension liabilityPostclosure 714,463)Total AdjustmentsTotal Net Position of Governmental Activities2,931,032 The notes to the financial statements are an integral part of this statement.75,267,974
CITY OF FORSYTH, GEORGIASTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFOR THE YEAR ENDED DECEMBER 31, nmental GovernmentalFund(SPLOST Fund)FundsFundsRevenues:TaxesProperty taxSales taxInsurance premium taxBeer, wine and alcohol taxOther taxesLicense and permitsIntergovernmentalFines and forfeituresCharges for servicesInvestment earningsOther revenuesTotal RevenuesExpenditures:Current:General governmentPublic safetyPublic worksRecreation and parksBetter HometownCapital OutlaysDebt ServicePrincipalInterestTotal ExpendituresExcess (Deficiency) of RevenuesOver (Under) ExpendituresOther Financing Sources (Uses):Transfers inTransfers out 8,043305,7511,369193,200 548,919272- 453,64251,172 4,645,594 585,138621,557184,1056,390,800(72,366) 270,714 (1,745,206)(10,553)(272,185) 3,221,429(282,738) (1,943,554) 3,221,429Total other financing sources (uses)3,221,429(10,553)(272,185)2,938,691Net Change in fund balances1,277,875(82,919)(1,471)1,193,485Fund Balance, beginning of year1,561,729748,4835,1003,6292,315,312Fund Balance, end of year 2,839,604 665,564 The notes to the financial statements are an integral part of this statement.8 3,508,797
CITY OF FORSYTH, GEORGIARECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESOF GOVERNMENTAL FUNDS TO THESTATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2017Excess (Deficit) of Revenues and Other Financing Sources Over (Under) Expenditures and OtherUses Per Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances 1,193,485Amounts reported for governmental activities in the Statement of Activities differ from amountsreported in the Governmental Fund Statement of Revenues, Expenditures and Changes in FundBalances due to the following:Capital AssetsGovernmental funds report capital outlays as expenditures. However, in the Statement ofActivities, the cost of those assets is depreciated over their estimated useful lives and reported asdepreciation expense.Total capital outlaysTotal capital deletionsTotal depreciation479,636(339,671)Long-term DebtThe issuance of bonds and similar long-term debt provides current financial resources togovernmental funds and thus contributes to the change in the fund balance. In the Statement of NetPosition, however, issuing debt increases long-term liabilities and does not affect the Statement ofActivities. Similarly, repayment of principal is an expenditures in the governmental funds, butreduces the liability in the Statement of Net Position. Also, governmental funds report the effect ofissuance costs, premiums, discounts and similar items when debt is first issued, whereas theseamounts are deferred and amortized in the Statement of Activities. The amounts of the items thatmake up these differences in the treatment of long-term debt and related items are as follows:Decrease in accrued bond debt servicePrincipal repaymentsIncrease in long-term interest expenseRevenuesBecause some revenues will not be collected for several months after the government's fiscal yearend, they are not considered available revenues and are deferred in the governmental funds.Deferred revenues decreased by this amount during the fiscal year.Total AdjustmentsChange in Net Position of Governmental ActivitiesThe notes to the financial statements are an integral part of this statement.951,296501,47423,374(648)715,461 1,908,946
CITY OF FORSYTH, GEORGIAGENERAL FUNDSTATEMENT OF REVENUE, EXPENDITURES AND CHANGES INFUND BALANCES - BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2017Budgeted AmountsOriginalFinalFinal l property taxLocal option sales taxInsurance premium taxBeer, wine and alcohol taxFranchise feesLicenses and permitsIntergovernmentalFines and forfeituresCharges for servicesInvestment incomeMiscellaneous incomeTotal Revenues 2,200310,4002,4005,000 242,96013,457936,671242,96013,457Total General Government1,193,0881,193,088Public SafetyPoliceFireMunicipal otal Public Safety 2,590,295 2,590,295 ,787,718)Expenditures:General GovernmentAdministrationGoverning 6,15893,290 -The notes to the financial statements are an integral part of this statement.10 2,590,295
CITY OF FORSYTH, GEORGIAGENERAL FUNDSTAEMENT OF REVENUE, EXPENDITURES AND CHANGES INFUND BALANCES - BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2017Variance withFinal BudgetPositive(Negative)Budgeted AmountsOriginalPublic WorksStreets/SanitationGarageCemetery Total Public WorksBetter HometownRecreationTotal expendituresExcess (deficiency) of revenues over(under) expenditures987,820 199,341135,676FinalActual987,820199,341135,676 (3,097,414)1,514,522-Other Financing Sources (Uses):Transfers InTransfers OutTotal other financing sources and usesNet change in fund balance 514,476 Fund balance, beginning of yearFund balance, end of year (1,514,522)1,561,729 1,561,729The notes to the financial statements are an integral part of this statement.11
CITY OF FORSYTH, GEORGIASTATEMENT OF NET POSITIONPROPRIETARY FUNDSDECEMBER 31, 2017Business-typeActivitiesCombinedUtilities FundASSETSCurrent assetsCash and cash equivalentsReceivables, net of allowanceAccountsDue from other governmentsInventoriesPrepaid expenses 2,343,666855,517393,71862,546Total current assets3,655,447Noncurrent assetsCapital assets:LandConstruction in progressBuilding and improvementsMachinery and equipmentVehiclesDistribution systemLess accumulated depreciationTotal capital assets (net of accumulated 527,174,194(21,557,956)13,038,802Total noncurrent assetsTotal Assets13,038,802 16,694,249The notes to the financial statements are an integral part of this statement.12
CITY OF FORSYTH, GEORGIASTATEMENT OF NET POSITIONPROPRIETARY FUNDSDECEMBER 31, 2017CombinedUtilities FundLIABILITIESCurrent liabilitiesAccounts payableAccrued liabilitiesCustomer depositsOther liabilitiesCapital leases payable - currentTotal current liabilitiesNoncurrent liabilitiesCapital leases payable - long termNotes Payable - long termTotal noncurrent liabilitiesTotal Liabilities 3,6651,067,7472,486,806NET POSITIONNet investment in capital assetsUnrestrictedTotal Net Position11,940,2352,267,208 14,207,443The notes to the financial statements are an integral part of this statement.13
CITY OF FORSYTH, GEORGIASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITIONPROPRIETARY FUNDSFOR THE YEAR ENDED DECEMBER 31, 2017Business-typeActivitiesCombinedUtilities FundOperating revenues:Charges for sales and servicesWater and sewer l operating revenues12,691,515Operating expenses:Salaries and benefitsPurchase of utilitiesMaterials and suppliesRepairs and maintenanceDepreciationManagement 5,3771,112,290Total operating expenses11,095,746Total operating incomeNonoperating revenues (expenses):Investment incomeInterest expenseTotal nonoperating revenues (expenses)Income before contributions and sfers inTransfers out10,553(2,949,244)Total contributions and transfers(2,938,691)Change in net position(1,343,516)Net PositionBeginning of year, as previously statedProir Period Adjustment (Note XX)Beginning of year, as restated15,615,510(64,551)15,550,959End of year 14,207,443The notes to the financial statements are an integral part of this statement.14
CITY OF FORSYTH, GEORGIASTATEMENT OF CASH FLOWSPROPRIETARY FUNDSFOR THE YEAR ENDED DECEMBER 31, 2017Business-typeActivitiesCombinedUtilities FundCash Flows from Operating Activities:Cash received from customersCash paid to suppliers for goods and servicesCash paid to employeesNet Cash Flows Provided by (Used for) Operating Activities 12,541,831(9,264,513)(526,687)2,750,631Cash Flows from Noncapital Financing ActivitiesTransfers to other funds(2,949,244)Net Cash Flows Provided by (Used for)Noncapital Financing Activities(2,949,244)Cash Flows from Capital and Related Financing Activities:Transfer in from SPLOST FundCDBG grant fundingGEFA loan paymentsPurchase of capital assetsPrincipal payments of capital leaseInterest 694)Net Cash Flows Provided by (Used for)Capital and Related Financing Activities(311,503)Cash flows from Investing Activities:Investment income26,100Net Cash Flows Provided by (Used for) Investing Activities26,100Net Increase (Decrease) in Cash and Cash EquivalentsCash and Cash Equivalents, Beginning of YearCash and Cash Equivalents, End of Year(484,016)3,012,130 2,528,114The notes to the financial statements are an integral part of this statement.15
CITY OF FORSYTH, GEORGIASTATEMENT OF CASH FLOWSPROPRIETARY FUNDSFOR THE YEAR ENDED DECEMBER 31, 2017Business-typeActivitiesCombinedUtilities FundReconciliation of Net Operating Income (Loss) to Net CashProvided by (Used for) Operating Activities:Net Operating Income (Loss) 1,595,769Adjustments to Reconcile Net Operating Income (Loss)to Net Cash Provided by (Used for) Operating Activities:Depreciation946,856Changes in Assets and Liabilities:(Increase) decrease in accounts receivable(Increase) decrease in inventories(Increase) decrease in other current assetsIncrease (decrease) in accounts payableIncrease (decrease) in accrued liabilitiesIncrease (decrease) in depositsTotal AdjustmentsNet Cash Provided by (Used for) Operating 165,044 2,760,813The notes to the financial statements are an integral part of this statement.16
CITY OF FORSYTH, GEORGIAFIDUCIARY FUNDSSTATEMENT OF FIDUCIARY ASSETS AND LIABILITIESDECEMBER 31, 2017MunicipalCourt FundASSETSCash and cash equivalents 60,729 60,729Funds held in escrowDue to others 51,1679,562Total Liabilities 60,729Total AssetsLIABILITIESThe notes to the financial statements are an integral part of this statement.17
CITY OF FORSYTH, GEORGIANOTES TO THE FINANCIAL STATEMENTSDECEMBER 31, 2017NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA.Reporting EntityThe City of Forsyth, Georgia (City) is a municipal corporation governed by an elected mayorand six-member council. The accompanying financial statements present the government andits component unit, an entity for which the government is considered to be financialaccountable. The discretely presented component unit is reported in a separate column in thegovernment-wide financial statements (see note below for description) to emphasize that it islegally separate from the government.Discretely presented component unit. The Downtown Development Authority of Forsythwas utilized to issue bonds related to the purchase and establishment of the cable system forthe City of Forsyth. The governing board is appointed by the City Council. The Authority isfiscally dependent upon the City because the City provides the majority of the general fundrevenues.The Downtown Development Authority of Forsyth does not issue separate component unitfinancial statements.Under Georgia law, the City in conjunction with other cities and counties in the Middle Georgiaarea is a member of the Middle Georgia Regional Commission (MGRC) and is required to payannual dues thereto. Membership in an MGRC is required by the Official Code of GeorgiaAnnotated (OCGA) Section 50-8-34 which provides for the organizational structure of theMGRC in Georgia. The MGRC Board membership includes the chief elected official of eachcounty and municipality of the area. OCGA 50-8-39.0 provides that the member governmentsare liable for any debts or obligations of an MGRC. Separate financial statements may beobtained from:Middle Georgia Regional Commission175 Emery HighwayMacon, Georgia 31217The Housing Authority of the City of Forsyth, Georgia is considered a related organizationbased upon the criteria of GASB Statement 14. The Housing Authority is a legally separateentity having a board composed of members appointed originally by the City of Forsyth,Georgia. The City of Forsyth, Georgia is not able to impose its will upon the Housing Authorityand a financial benefit/burden relationship does not exist between them. Therefore, based uponthe criteria above, the Housing Authority of the City of Forsyth, Georgia is a relatedorganization.B.Government-Wide and Fund Financial StatementsThe government-wide financial statements (i.e., the statement of net position and the statementactivities) report information on all non fiduciary activities of the primary government and itscomponent unit. Governmental activities, which normally are supported by taxes andintergovernmental revenues, are reported separately from business-type18
CITY OF FORSYTH, GEORGIANOTES TO THE FINANCIAL STATEMENTSDECEMBER 31, 2017(CONTINUED)activities, which rely to a significant extent on fees and charges for support. Likewise, theprimary government is reported separately from the legally separate component unit for whichthe primary government is financially accountable.The statement of activities demonstrates the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that are clearlyidentifiable with a specific function or segment. Program revenues include 1) services, orprivileges provided by a given function or segment and 2) grants and cont
and not to provide an opinion on 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 City of Forsyth, Georgia' sinternal control over financial reporting and compliance. Forsyth, Georgia January 31, 2019
