HomeMy WebLinkAboutFY 2020 - 2021 - Annual Comprehensive Financial Reports (ACFRs)
The Town of Vinton, Virginia
Annual Comprehensive Financial Report
For Fiscal Year Ended June 30, 2021
TOWN OF VINTON, VIRGINIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
Prepared by the Town of Vinton
Finance Department/Treasurer’s Office
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal ..........................................................................................................................................i
Certificate of Achievement for Excellence in Financial Reporting ...............................................................vi
Directory of Principal Officials......................................................................................................................vii
Organizational Chart .....................................................................................................................................viii
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................................1
Management’s Discussion and Analysis .........................................................................................................4
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ...................................................................................................13
Exhibit 2 Statement of Activities ........................................................................................................14
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Funds ................................................................................15
Exhibit 4 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position......................................................................................16
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balances –Governmental Funds ...........................................................................17
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Funds to the Statement of Activities ...............18
Exhibit 7 Statement of Revenue, Expenditures, and Changes in Fund Balance –
Budget and Actual –General Fund .................................................................................19
Exhibit 8 Statement of Net Position –Proprietary Funds ..................................................................20
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds ....................................................................................21
Exhibit 10 Statement of Cash Flows –Proprietary Funds ...................................................................22
Notes to Financial Statements ....................................................................................................................23
Required Supplementary Information
Exhibit 11 Schedule of Changes in Net Pension Liability and Related Ratios ...................................67
Exhibit 12 Schedule of Pension Contributions.....................................................................................68
Exhibit 13 Schedule of Changes in Net OPEB Liability and Related Ratios –Local Plan ................69
Exhibit 14 Schedule of Employer’s Share of Net OPEB Liability –VRS GLI ..................................70
Exhibit 15 Schedule of OPEB Contributions –VRS GLI ...................................................................71
Notes to Required Supplementary Information .........................................................................................72
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................75
Table 2 Change in Net Position by Component .....................................................................................76
Table 3 Fund Balances –Governmental Funds......................................................................................78
Table 4 Changes in Fund Balances –Governmental Funds ..................................................................79
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................80
Table 6 Principal Water and Sewer Customers ......................................................................................81
Table 7 Property Tax Levies and Collections ........................................................................................82
Table 8 Water and Sewer Rates ..............................................................................................................83
Table 9 Legal Debt Margin Information ................................................................................................84
Table 10 Ratios of Outstanding Debt by Type .........................................................................................85
Table 11 Pledged Revenue Coverage .......................................................................................................86
Table 12 Demographic Statistics ..............................................................................................................87
Table 13 Principal Employers ...................................................................................................................88
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................89
Table 15 Operating Indicators by Function/Program ...............................................................................90
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................91
COMPLIANCE SECTION
Schedule of Expenditures of Federal Awards ...............................................................................................93
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards.....................................................................................................94
Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance ...................................................96
Summary of Compliance Matters ..................................................................................................................99
Schedule of Findings and Questioned Costs ...............................................................................................100
Summary Schedule of Prior Audit Findings................................................................................................103
FINANCIAL SECTION
i
November 30, 2021
To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia
We are pleased to present the Town of Vinton, Virginia (the Town) Annual Comprehensive Financial Report
(Annual Report) for the fiscal year ended June 30, 2021 in accordance with Section 15.1-167 of the 1950
Code of Virginia, (1950 as amended). The Code requires that the Town issues an annual report on its
financial accounts and records. In addition, the report must be audited. The report was prepared by the
Treasurer’s Office and audited independently by the accounting firm Brown Edwards & Company, L.L.P.
The Town is required to undergo an annual single audit in conformity with provisions of Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). The Schedule of Expenditures of Federal Awards
and the independent auditors’ reports on internal controls and compliance with applicable laws and
regulations are included in the Compliance section of this report.
Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including
all disclosures, rests with the Town’s management. To the best of our knowledge and belief, the enclosed
data is accurate in all material respects and is reported in a manner designed to present fairly the financial
position and results of operations of the various funds of the Town. All disclosures necessary to enable the
reader to gain an understanding of the Town’s financial activities have been included.
The Reporting Entity and Services Provided
The financial reporting entity includes all of the funds of the primary government of the Town of Vinton,
as legally defined. The reporting entity does not include legally separate entities (component units) for
which a primary government is financially accountable because there are no such component units within
the Town. The Town jointly operates the Roanoke Valley Resource Authority and the Regional Center for
Animal Care and Protection through membership on the multi-jurisdictional boards.
The Town of Vinton provides a full range of municipal services. These services include police protection,
refuse and recycling functions, general public improvements, street and right-of-way maintenance,
recreational and cultural activities, and planning and zoning. The Town also provides potable water
distribution, wastewater collection, maintenance and service of line, meters, and other components related
to its utility system. Based on the latest Water Quality Report, the water system meets all state and federal
requirements administered by the Office of Drinking Water under the Virginia Department of Health.
According to the 2020 Water Quality Report, the Town had no water quality violations. The Virginia
Department of Environmental Quality reported statewide recycling rates for calendar year 2019. The Town
of Vinton’s rate was 59.4% which was among the higher rates of localities less than 100,000 population
voluntarily reporting.
Town of Vinton
311 S. Pollard Street
Vinton, VA 24179
Phone (540) 983-0608
Fax (540) 985-3105
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Local Economic Condition and Outlook
The Town of Vinton is located in the southern end of the Shenandoah Valley, in the southwestern region
of Virginia. Vinton is a part of the Roanoke Metropolitan Statistical Area, which includes the Cities of
Roanoke and Salem and Counties of Roanoke, Botetourt, and Craig. The Town is a compact, urban area
of 3.2 square miles located within eastern Roanoke County and shares a common border with the City of
Roanoke. It is approximately 170 miles west of Richmond, Virginia, the State capital. The Town is a major
gateway to the recreational attractions of Smith Mountain Lake and the Blue Ridge Parkway.
Approximately 78.8% of the total land within the Town is developed; 50.6% for residential use, 13.8% for
commercial or industrial development (within the Town industrial park and at various other locations) and
14.4% for public facility development.
The location of the Town provides quick and easy access from neighboring jurisdictions via US Interstates
81 and 581, U.S. Routes 460 and 220, and Virginia Routes 24 and 634. This also provides an opportunity
for citizens to be able to drive to a community college, two private colleges, and two public universities in
less than one hour. The Town’s location also means that its economy is impacted by the economic
conditions of its neighbors, and by decisions made by these larger neighboring jurisdictions.
Since the Town of Vinton is highly concerned with providing a positive atmosphere and quality of life for
its citizens, it has taken an active role in various regional authorities and activities. The Town participates
in economic development by being a member of the Roanoke Regional Partnership and working closely
with Roanoke County on development opportunities and promoting a shared industrial park. The Town
also partners with community groups to hold two major festivals and several smaller community events
throughout the year. In 2019-2020, the Town also partnered with the Vinton Area Chamber of Commerce
for economic development and business retention, recruitment and promotion.
The Town also participates in the Greenway Commission, the purpose of which is to identify possible
greenway locations in the Roanoke Valley area. Through this the Town is building a greenway that will
connect the downtown business district with Roanoke City’s greenway system. This will allow for an
individual to travel from Vinton to Salem on the greenway system. Vinton has also partnered with the
Roanoke-Alleghany Regional Commission to promote a Blueways Trail on the Roanoke River.
Vinton has maintained stable property tax rates over the years, while continuing to provide high quality
municipal services and responsive government. The combined real estate and personal property tax
collections for fiscal year 2021 generate approximately $777,000 or 8.76% of total revenue in the general
fund.
The Town maintains a diversified revenue stream with the top local revenues being Sales Tax, Meals Tax,
Business License, Communications Sales & Use Tax, and Pari-mutuel Tax. There have been no tax rate
changes in these categories in fiscal year 2021.
The nearby educational institutions allow opportunities for Town citizens to receive higher education and
technical training. Expansion of industry, tourist facilities, and conference centers in the region continue
to enhance the reputation of the Town as a highly desirable residential area.
Long-Term Financial Planning
Council members and staff worked together to develop strategies to achieve the three goals in the Strategic
Plan for the future of the Town of Vinton,which strategies will be reevaluated during future Council
Retreats. Town staff will also work with Council to review the strategies to be addressed in upcoming
budgets.
iii
Long-Term Financial Planning (Continued)
Aggressively pursue economic development opportunities to enhance local retail and dining
options
Encourage home ownership, housing rehabilitation, and the creation of new, high-quality, and
affordable housing stock
Continue to make Vinton a safe and secure community through community policing and engaging
residents
Continue to enhance the condition and appearance of the Town's public infrastructure and amenities
Maintain a structurally balanced budget with regular, recurring revenues that are sufficient to
sustain service levels and maintain public facilities
Utilize available technology within municipal offices to improve efficient service delivery
Conduct thorough organizational efficiency reviews in municipal offices and implement changes
based on results
Major Initiatives
The Town continues to focus revitalization efforts to facilitate housing rehabilitation, improve the
community’s walkability, enhance our transportation corridors and encourage the redevelopment of
targeted underutilized commercial properties.
Housing: The Town continues to seek opportunities for Community Development Block Grant
(CBDG) submittals to the Department of Housing and Community Development (DHCD) to
implement Comprehensive Neighborhood Housing and Community Infrastructure Rehabilitation
Programs within historical neighborhoods with predominantly aging housing stock. If awarded one
of these DHCD grants, a primary goal will also include these funds being utilized as a match for a
pending Hazard Mitigation Grant Program (HMGP) application that involves the acquisition and
removal of flood-prone properties in the Cleveland neighborhood.
Transportation: The Town continues to partner with the Greater Roanoke Transportation
Corporation (GRTC) to maintain and enhance public transit routes within the Town to key
commercial, public services and residential activity centers, such as Lake Drive Plaza, Washington
Avenue and South Pollard Street. In addition, the Town has been awarded over $3M in
transportation related grants from the Virginia Department of Transportation (VDOT) to enhance
walkability by adding signalized pedestrian crosswalks at the key intersections of South Pollard
Street and Washington Avenue and Hardy and Vinyard Roads; and by also the continued
development our sidewalk and greenway connectivity with the Glade Creek Greenway Phase II
and developing bike/ped accommodations along Walnut Avenue.The Town of Vinton has received
confirmation of VDOT SMART SCALE funding for Phase III of the Walnut Avenue Corridor
Improvements Project in the amount of $7.4 million which will complete the final gap of improving
the entire Walnut Avenue corridor with bicycle and pedestrian accommodations from West Lee
Avenue to the western town limits.
Commercial: The Town has received over $90,000 from the Virginia Brownfields Restoration and
Economic Redevelopment Assistance Fund (VABF) and the Department of Environmental
Equality (DEQ) to conduct a Phase I and Phase II Environmental Study at Gish Mill and the South
Pollard West Gateway. In addition, the Town was awarded a $300,000 Community-wide
Brownfields Assessment Grant from the Environmental Protection Agency (EPA), and has already
begun with assessment of the environmental conditions at other “brownfield” sites throughout the
community for future targeted redevelopment.
iv
Major Initiatives (Continued)
In partnership with Roanoke County, Vinton has realized immense success with this “redevelopment”
strategy. The recent conversion of the former Roland E. Cook School and former William Byrd High School
as apartments, the redevelopment of the former Vinton Library as a full service Macado’s Restaurant, the
redevelopment of the former Vinton Motors Dealership as Vinyard Station, the restoration of an ice-rink
and renovation of the fitness center at the Lancerlot Sports Complex, the return of Off-Track Horse
Wagering as Rosie’s Gaming Emporium, and the rehabilitation of the Gish Mill Property into a mixed-use
commercial property that will feature a restaurant, seasonal market and an Air-B&B type hospitality
Accounting System and Budgetary Controls
The Town’s accounting records for governmental fund type operations are maintained on a modified
accrual basis with revenues being recorded when available and measurable, and expenditures being
recorded when services or goods are received and fund liabilities are incurred. Accounting records for
proprietary fund types are maintained on the accrual basis with revenues and expenses being recorded when
earned or incurred.
In developing or modifying the Town’s accounting system, consideration is given to the adequacy of
internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance
regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition, and (b) the
reliability of financial records for preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits
likely to be derived, and (b) the evaluation of costs and benefits requires estimates and judgments by
management. All internal control evaluations occur within the above framework. The Town’s internal
controls adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
Budgetary control is maintained at the department or function level by the adoption of an annual, accrual
plus encumbrances basis budget for both the General and Enterprise Funds. The budgetary controls are
designed to ensure compliance with legal restrictions on expenditures as established by the Town Council.
Only the Council can revise appropriations. Year-end outstanding encumbrances are reported as a reserve
of fund balance and re-appropriated in the subsequent year for General Funds.
Cash Management
The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better
return on investments. Cash from all funds is pooled for investment purposes in the Commonwealth of
Virginia’s Local Government Investment Pool, Virginia Municipal League VIP Funds, Money Market
Accounts, Checking Account and Certificates of Deposit. The Town’s checking account is an
interest-bearing public fund demand deposit account.
Risk Management
The Town’s various property and liability insurance coverage is provided by the Virginia Risk Sharing
Association. The annual insurance costs are allocated to specific departments and funds based on assigned
equipment, number of personnel, building usage, and other equitable cost estimates.
v
Independent Audit
Virginia law requires that the financia l statements of the Town be audited by a Certified Public Accountant
(or alternatively, by the Auditor of Public Accounts) selected by the Town Council. Brown, Edwards &
Company, L.L.P., has performed an annual audit of the Comprehensive Annual Financial Report. Their
audit was conducted in accordance with generally accepted auditing standards; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Specifications for Audit of Counties, Cities, and Towns ,
issued by the Auditor of Public Accounts of the Commonwealth of Virginia. The auditor’s report, which
includes their opinion on the financial statements of the Town, is contained in this report on p age one of
the Financial Section. Other auditor’s reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management ’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s
MD&A can be found immediately following the report of the independent auditors.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial reporting to the Town for its Comprehensive Annual
Financial Report for the fiscal year ended June 30,2020. The Certificate of Achievement is a national
award that recognizes conformance with the highest standards for preparation of government financial
reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an eas ily readable
and efficiently organized Comprehensive Annual Financial Report, the contents of which must conform to
program standards. The Annual Report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has received a
Certificate of Achievement since the first award in 1995 . We believe our current report continues to
conform with the Certificate of Achievement Program req uirements, thus, this report is being submitted to
GFOA.
Acknowledgements
The preparation of this report was made possible through the diligent effort of the Treasurer’s
Office/Finance Department with the support of all departments and staff. We would like to express our
appreciation to the members of the Town Council for their support in the preparation of the Town of
Vinton’s comprehensive annual financial report and to the Town’s independent auditing firm, Brown,
Edwards & Company, L.L.P. for their cooperation and input in this work.
Respectfully submitted,
Richard W. Peters, Jr.Anne W. Cantrell
Town Manager Treasurer/Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Vinton
Virginia
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
vi
vii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2021
TOWN COUNCIL
Bradley E. Grose, Mayor
Sabrina McCarty, Vice Mayor
Keith N. Liles
Laurie Mullins
Michael W. Stovall
APPOINTED OFFICIALS
Richard Peters.........................................................................Town Manager
Anne W. Cantrell.................................................Finance Director/Treasurer
Susan Johnson ..............................................................................Town Clerk
Fabricio Drumond ...................................................................Chief of Police
INDEPENDENT AUDITORS
Brown, Edwards & Company, L.L.P.
*Town Manager, Town Attorney, Town Clerk, Chief of Police and Treasurer are positions within the department appointed by Town Council.
viii
Citizens of Vinton
Town Council
Town Manager*
& Economic Development
Assistant Town
Manager
Public Works
Streets
Maintenance
Property &
Grounds
Refuse &
Recycling
Water & Sewer
Utilities
Executive
Assistant & Town
Clerk*
Police
Department*
Admin
Operations
Treasurer* &
Finance Dept.
Planning &
Zoning
HR & Risk
Management
Community
Programs
War Memorial
Town Museum
Town Attorney*
l
Organizational Chart
INTRODUCTORY SECTION
1
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, VA 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of Town Council
Town of Vinton, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, and each major fund of the Town of Vinton, Virginia (the “Town”), as of and for the year ended
June 30, 2021, and the related notes to the financial statements, which collectively comprise the Town’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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 Specifications for Audits of Counties, Cities, and Towns
issued by the Auditor of Public Accounts of the Commonwealth of Virginia.Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 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, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements 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 the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In 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, and each
major fund of the Town, as of June 30, 2021, and the respective changes in financial position and,
where applicable, cash flows thereof and the respective budgetary comparison for the general fund
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
2
Report on the Financial Statements (Continued)
Report on Summarized Comparative Information
We have previously audited the Town’s 2020 financial statements, and in our report dated
November 3, 2020, we expressed unmodified opinions on those financial statements. The 2020 financial
information is provided for comparative purposes only. In our opinion, the summarized comparative
information presented herein as of and for the year ended June 30, 2020, is consistent, in all material
respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and other required supplementary information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such 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. 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The introductory section and statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance), and is also not a required part of the basic financial statements.
The schedule of expenditures of federal awards is the responsibility of management and was derived
from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 30, 2021 on our consideration of the Town’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 the Town’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 the Town’s internal control over financial reporting and compliance.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 30, 2021
4
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Town of Vinton, Virginia (the “Town”), we offer readers of the Town’s
financial statements this narrative overview and analysis of the financial activities of the Town for the
fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages i through vi of this report.
Financial Highlights
The total assets and deferred outflows of resources of the Town exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $19,589,116
(net position). Of this amount, $6,464,822 (unrestricted net position) may be used to meet the
Town’s ongoing obligations to citizens and creditors.
The Town’s total net position increased by $3,240,857. This increase is largely due to total
expenses of $11,945,580 being less than total revenues of $15,186.437. Another factor
includes an increase of $10,393,889 (108.03%) in current and other assets. The increase in
assets is mostly due to an increase in cash from operations, bond proceeds, and American
Rescue Plan Act (ARPA) funding.Capital asset values increased after many years of
decreases by a total of $849,486 with the final result being an increase of 39.87%in total
assets.
In conjunction with increased assets, the Town’s short-term liabilities also increased by
$4,632,079 (223.03%),due to unearned revenue of $4,232,682 mostly from ARPA funding.
Other long-term liabilities increased by $3,411,663 (34.95%)which was mostly due to a
2021 General Obligation bond series issuance during the fiscal year.
Deferred Outflows increased $187,391 (16.89%) and Deferred Inflows increased $146,167
(13.01%) primarily due to the net difference between projected and actual earnings on plan
investments.
The final result of all these effects is a 19.82% increase in net position.
As of the close of the current fiscal year, the Town’s governmental funds reported an ending
fund balance of $5,923,113 an increase of $1,092,823 in comparison with the prior year. This
is mostly due to an increase in the committed fund balance of $938,924 which is primarily
for capital projects.
The general fund accounted for $4,556,918 of the ending fund balance in the
governmental funds, with an unassigned fund balance of $3,465,134. Approximately
76.04% of the ending general fund balance is available for spending at the Town’s
discretion (unassigned fund balance), and represents 55.23% of the general fund’s
expenditures, excluding transfers to other funds.
In Fiscal Year (FY) 2020, the Town re-opened the capital project fund, included in the
governmental funds, which had remained closed since FY2012. The Capital Fund had a
beginning committed fund balance of $397,271 which was set aside for a Town match
requirement on a grant application submitted to the Virginia Department of
Transportation (VDOT). As of FY2021, the Capital Fund had an ending committed fund
balance of $1,366,195. This is primarily due to unfinished projects during the fiscal year,
and is anticipated to be used in the following year to complete budgeted capital projects.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: (1) government-wide
financial statements,(2)fund financial statements, and (3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
5
Overview of the Financial Statements (Continued)
Government-wide Financial Statements –The government-wide financial statements are
designed to provide readers with a broad overview of the Town’s finances, in a manner similar to
a private-sector business.
The statement of net position presents information on all of the Town’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference between
the four reported as net position. Over time, increases or decreases in net position may serve as
a useful indicator of whether the financial position of the Town is improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
result only in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the Town include
general government, public safety, public works, community development, and parks, recreation,
and cultural. The business-type activity of the Town is the water and sewer department, and the
stormwater functions.
Fund Financial Statements –A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the Town can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds –Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources,as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures, and changes in fund balance provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Town adopts an annual appropriated budget for its general fund and capital fund. A
budgetary comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary Funds –The Town maintains one type of proprietary fund. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The Town uses an enterprise fund to account for its Water and Sewer
Department and Stormwater functions.
6
Overview of the Financial Statements (Continued)
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Water and Sewer Department and Stormwater functions.
Notes to the Financial Statements –The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statement.
Other Information –In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Town’s funding progress for the
defined benefit pension plan.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, the net position was $19,589,116 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (64.92%) reflects its net investment in capital
assets (e.g., land, buildings, infrastructure, machinery, and equipment less any related debt used to acquire
those assets that are still outstanding). The Town uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the Town’s net investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
The Town’s Net Position
Governmental Business-Type
Activities Activities Total
Current and other assets $11,732,374 $6,336,885 $8,282,909 $3,284,509 $20,015,283 $9,621,394
Capital assets 9,749,029 8,854,637 9,681,210 9,726,116 19,430,239 18,580,753
Total assets 21,481,403 15,191,522 17,964,119 13,010,625 39,445,522 28,202,147
Deferred outflows
of resources 924,570 785,382 372,440 324,237 1,297,010 1,109,619
Current and other liabilities 5,163,478 1,006,372 1,545,529 1,070,556 6,709,007 2,076,928
Long-term liabilities 4,205,527 4,360,578 8,969,032 5,402,318 13,174,559 9,762,896
Total liabilities 9,369,005 5,336,950 10,514,561 6,472,874 19,883,566 11,839,824
Deferred inflows
of resources 1,172,023 1,051,254 97,827 72,429 1,269,850 1,123,683
Net investment in capital
assets 7,899,269 6,634,748 4,818,286 4,424,574 12,717,555 11,059,322
Restricted 406,739 74,711 - - 406,739 74,711
Unrestricted 3,558,937 2,849,241 2,905,885 2,364,985 6,464,822 5,214,226
Total net position $11,864,945 $9,558,700 $7,724,171 $6,789,559 $19,589,116 $16,348,259
Unrestricted net position of $6,464,822 may be used to meet the Town’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the Town is able to report positive balances in all three
categories of net position, both for the government as a whole, and for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
7
Government-Wide Financial Analysis (Continued)
Governmental activities –Governmental activities increased the Town’s net position by
$2,306,245.For the most part, revenues closely paralleled inflation and conditions represented in the
economy and growth in the demand for services. Revenues from operating grants and contributions,
capital grants and contributions, and various taxes showed an increase over the prior year. Investment
earnings also showed an increase because of the Town’s investments and bond proceeds being invested
in higher yields.
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $376,337 $420,047 $3,782,766 $3,423,342 $4,159,103 $3,843,389
Operating grants and
contributions 1,742,419 1,966,475 - - 1,742,419 1,966,475
Capital grants and
contributions 624,924 309,973 364,920 - 989,844 309,973
General revenues
Property taxes 759,771 749,564 - - 759,771 749,564
Other taxes 5,265,254 4,833,542 - - 5,265,254 4,833,542
Intergovernmental revenue 1,702,176 518,418 - - 1,702,176 518,418
Investment earnings 21,792 42,409 5,112 8,271 26,904 50,680
Other 94,426 37,669 446,540 371,278 540,966 408,947
Total revenues 10,587,099 8,878,097 4,599,338 3,802,891 15,186,437 12,680,988
Expenses
General government 2,679,302 1,391,690 - - 2,679,302 1,391,690
Public safety 2,303,536 2,941,870 - - 2,303,536 2,941,870
Public works 2,077,098 1,748,237 - - 2,077,098 1,748,237
Parks, recreation, and
cultural 444,103 477,604 - - 444,103 477,604
Community development 298,949 679,173 - - 298,949 679,173
Interest on long-term
debt 68,126 76,732 - - 68,126 76,732
Water and sewer --3,674,669 3,488,665 3,674,669 3,488,665
Stormwater management --399,797 364,142 399,797 364,142
Total expenses 7,871,114 7,315,306 4,074,466 3,852,807 11,945,580 11,168,113
Excess (Deficit) of
Revenues over
expenditures
2,715,985 1,562,791 524,872 (49,916)3,240,857 1,512,875
Other Financing Sources (Uses)
Transfers in (out)(409,740)(181,628)409,740 181,628 - -
Total Other Financing
Sources (Uses)(409,740)(181,628)409,740 181,628 - -
Change in net position 2,306,245 1,381,163 934,612 131,712 3,240,857 1,512,875
–July 1 9,558,700 8,177,537 6,789,559 6,657,847 16,348,259 14,835,384
–June 30 $11,864,945 $9,558,700 $7,724,171 $6,789,559 $19,589,116 $16,348,259
8
Government-Wide Financial Analysis (Continued)
Expenses and Program Revenues –Governmental Activities
Revenues by Source –Governmental Activities
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
General
government
Public safety Public works Parks, recreation,
and cultural
Community
development
Interest on long-
term debt
Expenses Program Revenues
Charges for services
4%
Operating grants and
contributions
16%
Capital grants and
contributions
6%
Property taxes
7%
Other taxes
50%
Intergovernmental
revenue unrestricted
16%
Other
1%
9
Government-Wide Financial Analysis (Continued)
Business-type activities – Business-type activities increased the Town’s net position by
$934,612. This is primarily due to revenues outperforming expenses, partially caused by a delay of
planned debt issuance until revenue performance during the pandemic was more understood. The Town
Council had previously adopted a multi-year rate increase with an effective date of July 1 for 2021,
2022, and 2023, with an increase in the service charge of 8.0% and an increase in the volumetric rate of
6.0%.
Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds – The focus of the Town’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town’s governmental funds reported an ending fund
balance of $5,923,113, an increase of $1,092,823 in comparison with the prior year. This is due to an
increase in committed fund balance caused by project delays in the capital projects fund, and an increase
in restricted fund balance due to asset forfeiture and other legally restricted revenues.
Proprietary funds – The Town’s proprietary fund provides the same type of information found in
the government-wide financial statements, but in more detail.
Unrestricted net position of the Water and Sewer Department at the end of the year amounted to
$2,748,296. Unrestricted net position of the Stormwater Management Department at the end of the year
amounted to $157,589. Factors concerning the finances of this fund have already been addressed in the
discussion of the Town’s business-type activities.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget for revenues were
$235,523 primarily due increases in other local taxes based on mid-year projections above original
budgeted amounts.
Differences between the original budget and the final amended budget for expenditures were
$201,633 primarily due to public safety expenditures being transferred to the grant fund for
reimbursement from the CARES Act funding.
Multiple variances between the final budget and the actual final results for the year can be briefly
summarized as follows:
There was a positive variance in real property taxes, and 110.60% of the budgeted amount
was collected. The real property tax rate did not change from $0.07 per $100 of assessed
value. The increase was primarily due to an increase in the assessment values and due to some
residents paying for the full-year of real estate taxes at the first installment.
There was a positive variance of other local taxes of $806,855 or 118.20% of the budgeted
amount was collected. This was primarily due to revenues not being as negatively impacted
by the pandemic as originally planned. Several key economic revenues outperformed
expectations such as Meals Tax, Sales Tax, Business License Tax, and Pari-mutuel Tax.
The Town experienced a negative variance in the Charges for Services category of $65,892 or
51.29% of the budgeted amount was collected. This is primarily due to rentals postponed at
the Town’s facilities due to pandemic limitations on events.
10
General Fund Budgetary Highlights (Continued)
All expenditures by budget functions have favorable variances, except capital projects. This is
because the Town includes the budget for small capital projects in the department total instead
of budgeting separately for small capital.
Capital Asset and Debt Administration
Capital assets –The Town’s investment in capital assets for its governmental and business-type
activities as of June 30, 2021, amounts to (net of accumulated depreciation). This investment in capital
assets includes land, buildings and systems, improvements, infrastructure, machinery, and equipment. The
total increase in the Town’s investment in capital assets for the current fiscal year was 4.57%(a 10.10%
increase for governmental activities and a 0.46%decrease for business-type activities). Additional
information on the Town’s capital assets can be found in Note 5 of this report.
The Town’s Capital Assets
(Net of Depreciation)
Land $1,823,532 $1,832,033 $80,752 $80,752 $1,904,284 $1,912,785
Buildings and systems 4,470,655 4,399,609 6,779,226 6,667,975 11,249,881 11,067,584
Infrastructure 2,128,427 1,662,811 - - 2,128,427 1,662,811
Improvements other than
buildings - - 1,777,725 1,997,428 1,777,725 1,997,428
Machinery and equipment 1,032,258 599,485 880,558 979,961 1,912,816 1,579,446
Construction in progress 294,157 360,699 162,949 - 457,106 360,699
Total $9,749,029 $8,854,637 $9,681,210 $9,726,116 $19,430,239 $18,580,753
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of
$11,250,356, minus compensated absences.Of this amount, $8,849,714 comprises debt backed by the full
faith and credit of the government, $1,338,000 is related to revenue bond obligations, $390,477 is related
to intergovernmental obligations, and $672,165 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $1,670,595 $1,985,234 $7,179,119 $3,095,449 $8,849,714 $5,080,683
Revenue bonds - - 1,338,000 1,513,000 1,338,000 1,513,000
Other obligations 11,200 75,352 379,277 221,589 390,477 296,941
Capital leases 239,046 296,746 433,119 558,344 672,165 855,090
$1,920,841 $2,357,332 $9,329,515 $5,388,382 $11,250,356 $7,745,714
The Town’s total debt increased by $3,493,442, or 45.10%,during the fiscal year. This increase is
primarily due to the 2021 Series General Obligation Bond issued during the fiscal year to re-finance
existing debt and to issue new debt for utility projects.
Additional information on the Town’s long-term debt can be found in Note 6 of this report.
11
Economic Factors and Next Year’s Budgets and Rates
During the current year, the Town experienced a growth in local revenue despite several
continued health measures expected to negatively impact revenue performance during the pandemic
such as business closures and limited capacity. Several key revenue areas continued to increase during
the year, especially as restrictions lifted, and pari-mutuel tax (off-track betting revenue)has quickly
became a top revenue source in the General Fund. The Town has previously had limited funding for
capital items due to low or negative revenue growth from the previous decade (2010-2019), and has
used this new revenue source to improve and replace capital items vital to the Town’s services.
The unemployment rate for Roanoke County (no statistics are available for the Town
individually) as of June 30, 2021 is 3.60%, which is a sharp decrease from last year’s rate of
8.10%.This is actually a better performance when compared to the state’s average
unemployment rate as of June 30, 2021 of 4.30% and to the national average rate of 5.90%.
The occupancy rate of the Town’s central business district has remained at 90% for the past
five years.
Inflationary trends in the region compare favorably to national indices.
No real property tax increase for calendar year 2021, but an overall increase in reassessment
for real estate values slightly increased the tax levy.
During the current fiscal year, the unassigned fund balance in the general fund decreased by
$203,840. The general fund remains strong with an ending unassigned fund balance of $3,465,134. It is
intended that this available fund balance will be used for future one-time needs of the Town and as
working capital during the months of low cash collection volume.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
THIS PAGE INTENTIONALLY BLANK
12
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-Type
(For Comparison
Only)
Activities Activities 2021 2020
ASSETS
Cash and cash equivalents (Note 2)10,062,515$ 3,015,958$ 13,078,473$ 6,905,268$
Receivables, net (Note 3)534,462 776,417 1,310,879 1,179,587
Due from other governmental units (Note 4)554,685 - 554,685 745,054
Inventories 70 70,315 70,385 64,097
495,239 - 495,239 487,378
Prepaids 20,201 1,874 22,075 123,229
Loans receivable 37,168 - 37,168 44,022
28,034 4,418,345 4,446,379 72,759
Capital assets: (Note 5)
Nondepreciable 2,117,689 243,701 2,361,390 2,273,484
Depreciable, net 7,631,340 9,437,509 17,068,849 16,307,269
Total assets 21,481,403 17,964,119 39,445,522 28,202,147
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 59,881 93,597 153,478 163,737
796,189 271,231 1,067,420 859,008
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)68,500 7,612 76,112 86,874
Total deferred outflows of resources 924,570 372,440 1,297,010 1,109,619
LIABILITIES
Accounts payable and accrued liabilities 225,139 256,279 481,418 478,621
Accrued payroll and related liabilities 186,226 65,354 251,580 233,192
Accrued interest payable 8,922 41,799 50,721 53,179
Customer security deposits - 45,200 45,200 46,500
Unearned revenue 4,232,682 - 4,232,682 11,345
512,841 1,136,897 1,649,738 1,254,091
Noncurrent liabilities due in more than one year:
Net pension liability (Notes 8 & 11)1,990,855 678,210 2,669,065 2,248,076
Net other post employment
benefit liability (Notes 9, 10 & 11)513,437 58,624 572,061 604,506
Long-term liabilities due in more than one year (Note 6)1,698,903 8,232,198 9,931,101 6,910,314
Total liabilities 9,369,005 10,514,561 19,883,566 11,839,824
DEFERRED INFLOWS OF RESOURCES
Property taxes 737,493 - 737,493 690,728
Deferred inflows related to pensions (Notes 8 & 11)215,839 73,528 289,367 185,513
Deferred inflow related to other postemployment
benefits (Notes 9, 10, & 11)218,691 24,299 242,990 247,442
Total deferred inflows of resources 1,172,023 97,827 1,269,850 1,123,683
NET POSITION
7,899,269 4,818,286 12,717,555 11,059,322
Public safety 406,739 - 406,739 74,711
Unrestricted 3,558,937 2,905,885 6,464,822 5,214,226
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2021
Cash and cash equivalents, restricted (Note 2)
Deferred outflows related to pensions (Notes 8 & 11)
Land held for resale
Long-term liabilities due within one year (Note 6)
The Notes to Financial Statements are an integral part of this statement.
13
EXHIBIT 2
Charges for
Comparison
Governmental activities
2,679,302$ 124,678$ 72,189$ 7,650$ (2,474,785)$ (2,474,785)$ (1,221,387)$
Public safety 2,303,536 73,441 406,531 38,509 (1,785,055) (1,785,055) (2,217,229)
Public works 2,077,098 125,833 1,263,699 131,260 (556,306) (556,306) (222,484)
Parks, recreation, and cultural 444,103 46,896 - - (397,207) (397,207) (379,696)
Community development 298,949 5,489 - 447,505 154,045 154,045 (501,283)
Interest on long-term debt 68,126 - - - (68,126) (68,126) (76,732)
Total governmental activities 7,871,114 376,337 1,742,419 624,924 (5,127,434) (5,127,434) (4,618,811)
Business-type activities
Water and sewer 3,674,669 3,782,766 - 364,920 - 473,017$ 473,017 (65,323)
Stormwater management 399,797 - - - - (399,797) (399,797) (364,142)
Total business-type activities 4,074,466 3,782,766 - 364,920 - 73,220 73,220 (429,465)
Total 11,945,580$4,159,103$ 1,742,419$ 989,844$ (5,127,434) 73,220 (5,054,214) (5,048,276)
General revenues
Property taxes (Note 15)759,771 - 759,771 749,564
Sales tax 1,236,214 - 1,236,214 1,153,748
Meals tax 1,417,813 - 1,417,813 1,289,457
Utilities tax 689,181 - 689,181 718,109
Pari-mutuel tax 643,785 - 643,785 462,607
Business license tax 672,841 - 672,841 638,888
Bank stock tax 226,925 - 226,925 182,081
Cigarette tax 145,993 - 145,993 175,687
Vehicle license fee 187,918 - 187,918 184,717
Other local taxes 44,584 - 44,584 28,248
Intergovernmental revenue not program specific 1,702,176 - 1,702,176 518,418
Unrestricted investment earnings 21,792 4,355 26,147 50,677
Restricted investment earnings - 757 757 3
Other 94,426 446,540 540,966 408,947
Transfers (Note 20)(409,740) 409,740 - -
Total general revenues 7,433,679 861,392 8,295,071 6,561,151
Change in net position 2,306,245 934,612 3,240,857 1,512,875
NET POSITION AT JULY 1 9,558,700 6,789,559 16,348,259 14,835,384
NET POSITION AT JUNE 30 11,864,945$ 7,724,171$ 19,589,116$ 16,348,259$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2021
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are an integral part of this statement.
14
EXHIBIT 3
2020
Capital Total Total
General Projects Grant Governmental Governmental
Fund Fund Fund Funds Funds
Comparison
ASSETS
Cash and cash equivalents 4,689,779$ 1,391,774$ 3,980,962$ 10,062,515$ 4,470,842$
Receivables, net 530,540 - 3,922 534,462 471,929
Due from other governmental units 265,023 - 289,662 554,685 745,054
Inventories 70 - - 70 109
Land held for resale 495,239 - - 495,239 487,378
Prepaids 20,201 - - 20,201 91,444
Loans receivable 37,168 - - 37,168 44,022
Cash and cash equivalents, restricted 28,034 - - 28,034 26,107
Total assets 6,066,054$ 1,391,774$ 4,274,546$ 11,732,374$ 6,336,885$
LIABILITIES
Accounts payable and accrued liabilities 129,072$ 25,579$ 70,488$ 225,139$ 227,120$
Accrued payroll and related liabilities 186,185 - 41 186,226 179,046
28,665 - 4,204,017 4,232,682 11,345
Total liabilities 343,922 25,579 4,274,546 4,644,047 417,511
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,165,214 - - 1,165,214 1,089,084
Total deferred inflows of resources 1,165,214 - - 1,165,214 1,089,084
FUND BALANCES (Note 21)
Nonspendable 599,269 - - 599,269 655,751
Restricted 406,739 - - 406,739 74,711
Committed - 1,366,195 - 1,366,195 427,271
Assigned 85,776 - - 85,776 3,583
Unassigned 3,465,134 - - 3,465,134 3,668,974
Total fund balances 4,556,918 1,366,195 - 5,923,113 4,830,290
Total liabilities, deferred inflows of resources,
and fund balances 6,066,054$ 1,391,774$ 4,274,546$ 11,732,374$ 6,336,885$
Unearned revenue
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2021
2021
The Notes to Financial Statements are an integral part of this statement.
15
EXHIBIT 4
(For
Comparison
Only)
2021 2020
Total Fund Balances – Governmental Fund 5,923,113$ 4,830,290$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 20,434,906$
Less: accumulated depreciation (10,685,877)
9,749,029 8,854,637
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $65,279.- (14,806)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.427,721 398,356
Financial statement elements related to other postemployment benefits and pensions
are applicable to future periods and, therefore, are not reported in the funds.
Deferred outflows related to:
Pensions 796,189
Other postemployment benefits 68,500
Deferred inflows related to:
Pensions (215,839)
Other postemployment benefits (218,691)
(1,990,855)
Net other postemployment benefits liability (513,437)
(2,074,133) (1,844,621)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (1,610,714)
(11,200)
(239,046)
Accrued interest payable (8,922)
Compensated absences (290,903)
(2,160,785) (2,665,156)
Total Net Position – Governmental Activities 11,864,945$ 9,558,700$
Net pension liability
Capital lease obligations
Obligations payable – Roanoke County and RCACP
but are amortized over the life of the debt obligation in the
statement of net position:
TOWN OF VINTON, VIRGINIA
TO THE STATEMENT OF NET POSITION
June 30, 2021
Amounts reported for governmental activities in the statement of net position
Governmental Funds
The Notes to Financial Statements are an integral part of this statement.
16
EXHIBIT 5
2020
Capital Total Total
General Projects Grant Governmental Governmantal
Fund Fund Fund Funds Funds
Comparison
Only)
REVENUES
General property taxes 755,762$ -$ -$ 755,762$ 742,567$
Other local taxes 5,239,902 - - 5,239,902 4,863,517
Permits, privilege fees, and regulatory licenses 5,490 - - 5,490 4,592
Fines and forfeitures 52,305 - - 52,305 54,486
Revenues from use of money and property 139,588 - - 139,588 159,655
Charges for services 69,391 - - 69,391 115,380
Other 131,824 - - 131,824 134,151
Gain sharing - - - - 134,486
Recovered costs 98,269 - - 98,269 34,671
Non-categorical aid 421,891 - 1,412,601 1,834,492 459,083
Categorical aid 1,576,766 - 653,945 2,230,711 2,198,487
Total revenues 8,491,188 - 2,066,546 10,557,734 8,901,075
EXPENDITURES
Current:
General government administration 993,832 - 1,480,309 2,474,141 835,575
Public safety 2,117,446 - 38,409 2,155,855 2,821,897
Public works 1,395,665 - - 1,395,665 1,377,264
Parks, recreation, and cultural 500,690 - - 500,690 457,443
Community development 363,839 - 207,301 571,140 871,782
Capital projects 387,682 729,799 332,667 1,450,148 533,151
Debt service: -
Principal retirement 452,490 - - 452,490 446,651
Interest and fiscal charges 62,640 - - 62,640 64,540
Total expenditures 6,274,284 729,799 2,058,686 9,062,769 7,408,303
Excess (deficit) of revenues over expenditures 2,216,904 (729,799) 7,860 1,494,965 1,492,772
OTHER FINANCING SOURCES (USES)
Proceeds from bond issuance 321,000 - - 321,000 -
Payment to escrow agent (313,402) - - (313,402) -
Transfers in 7,860 1,698,723 - 1,706,583 600,012
Transfers out (2,108,463) - (7,860) (2,116,323) (781,640)
Total other financing sources (uses)(2,093,005) 1,698,723 (7,860) (402,142) (181,628)
Net change in fund balance 123,899 968,924 - 1,092,823 1,311,144
FUND BALANCE AT JULY 1 4,433,019 397,271 - 4,830,290 3,519,146
FUND BALANCE AT JUNE 30 4,556,918$ 1,366,195$ -$ 5,923,113$ 4,830,290$
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended June 30, 2021
2021
The Notes to Financial Statements are an integral part of this statement.
17
EXHIBIT 6
(For
Comparison
Only)
2021 2020
Net change in fund balance governmental fund 1,092,823$ 1,311,144$
5,128 2,089
894,392 (224,053)
29,365 (22,977)
(257,045) (156,065)
Employer other postemployment benefit contributions $14,288
Other postemployment benefits expense (41,821)
27,533 16,628
434,281 432,370
79,768 22,027
Change in net position of governmental activities
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF
THE GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2021
Governmental Funds
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in the funds.
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report employer pension contributions as expenditures.However,in the statement
of activities,the cost of pension benefits earned net of employee contributions is reported as pension
expense.This is the amount by which expense $529,941 exceeded employer pension contributions
$272,896 in the current period.
The issuance of long-term debt 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 has any effect on net position. Also,governmental funds report premiums,
discounts,and similar items when debt is issued,whereas these amounts are deferred and amortized in
the statement of activities. This amount is the net effect of those differences.
Some items 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.These activities consist of a
decrease in compensated absences.
The net effect of the change in accrued interest expense is not reflected in the fund statements.
Governmental funds report capital outlays as expenditures;however,in the statement of activities,the
cost of those assets are allocated over their estimated useful lives as depreciation expense.This is the
amount by which capital outlay $1,521,825 exceeded depreciation $629,735 and the value of capital
assets disposed in the current period $2,302.
Governmental funds report employer other postemployment benefit contributions as expenditures.
However,in the statement of activities the cost of these benefits earned,net of employee contributions,
is reported as other postemployment benefit expense.
The Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 683,300$ 683,300$ 755,762$ 72,462$
Other local taxes 4,218,000 4,433,047 5,239,902 806,855
Permits, privilege fees, and
regulatory licenses 2,500 2,500 5,490 2,990
Fines and forfeitures 51,200 51,200 52,305 1,105
Revenues from use of money
and property 139,500 139,500 139,588 88
Charges for services 131,150 135,283 69,391 (65,892)
Other 118,150 118,800 131,824 13,024
Recovered costs 10,000 17,787 98,269 80,482
Non-categorical aid 414,260 422,166 421,891 (275)
Categorical aid 1,400,490 1,400,490 1,576,766 176,276
Total revenues 7,168,550 7,404,073 8,491,188 1,087,115
EXPENDITURES
Total expenditures 6,719,786 6,518,153 6,274,284 243,869
OTHER FINANCING SOURCES (USES)
Proceeds from bond issuance -321,000 321,000 -
Payments to escrow agent -(313,402) (313,402) -
Transfer in --7,860 7,860
Transfers out (448,764) (2,108,463) (2,108,463) -
Net change in fund balance -$(1,214,945)$ 123,899$ 1,338,844$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT 8
2020
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 2,711,603$ 304,355$ 3,015,958$ 2,434,426$
Receivables, net 776,417 - 776,417 707,658
Inventories 67,266 3,049 70,315 63,988
Prepaids 1,865 9 1,874 31,785
Cash and cash equivalents, restricted 4,418,345 - 4,418,345 46,652
Total current assets 7,975,496 307,413 8,282,909 3,284,509
Noncurrent assets:
Capital assets:
Nondepreciable 225,468 18,233 243,701 80,752
Depreciable, net 9,239,743 197,766 9,437,509 9,645,364
Total noncurrent assets 9,465,211 215,999 9,681,210 9,726,116
Total assets 17,440,707 523,412 17,964,119 13,010,625
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 93,597 - 93,597 86,840
Deferred outflows related to pensions (Notes 8 & 11)212,630 58,601 271,231 229,378
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)6,343 1,269 7,612 8,019
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
57,642 15,886 73,528 49,588
NET POSITION
Business-Type Activities –
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2021
2021
The Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT 9
2020
(For Comparison
Only)
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
OPERATING REVENUES
Water service charges and fees 1,729,140$ -$ 1,729,140$ 1,596,474$
Sewer service charges and fees 2,002,009 - 2,002,009 1,795,142
Water/sewer penalties 51,617 - 51,617 31,726
Other revenue 446,540 - 446,540 371,278
Total operating revenues 4,229,306 - 4,229,306 3,794,620
OPERATING EXPENSES
Total operating expenses 3,468,683 393,831 3,862,514 3,689,525
Operating income (loss)760,623 (393,831) 366,792 105,095
NON-OPERATING REVENUE (EXPENSE)
Net non-operating income (expense)164,046 (5,966) 158,080 (155,011)
Income (loss) before transfers 924,669 (399,797) 524,872 (49,916)
TRANSFERS IN (OUT)
Change in net position 674,931 259,681 934,612 131,712
NET POSITION AT JULY 1
NET POSITION AT JUNE 30 7,529,057$ 195,114$ 7,724,171$ 6,789,559$
2021
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
21
EXHIBIT 10
2020
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 3,712,707$ -$ 3,712,707$ 3,362,852$
Receipts from other sources 446,540 - 446,540 371,278
Payments to suppliers (1,551,013) (32,467) (1,583,480) (1,541,049)
Payments to employees (1,061,819) (280,953) (1,342,772) (1,307,157)
Net cash provided by (used in) operating activities 1,546,415 (313,420) 1,232,995 885,924
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (249,738) 659,478 409,740 181,628
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (514,513) (53,683) (568,196) (23,428)
Principal paid on long-term liabilities (1,853,796) (32,596) (1,886,392) (655,303)
Proceeds from long-term liabilities 5,827,525 - 5,827,525 -
Debt issuance costs 75,264 - 75,264 -
Interest paid (138,916) (3,907) (142,823) (156,123)
Net cash provided by (used in) capital and related
financing activities 3,395,564 (90,186) 3,305,378 (834,854)
INVESTING ACTIVITIES
Interest received on investments 5,112 - 5,112 8,271
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1 2,432,595 48,483 2,481,078 2,240,109
Ending at June 30 7,129,948$ 304,355$ 7,434,303$ 2,481,078$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 2,711,603$ 304,355$ 3,015,958$ 2,434,426$
Cash and cash equivalents, restricted 4,418,345 - 4,418,345 46,652
7,129,948$ 304,355$ 7,434,303$ 2,481,078$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)760,623$ (393,831)$ 366,792$ 105,095$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 875,976 34,172 910,148 820,523
Pension expense net of employer contributions 34,343 25,043 59,386 130,177
Other postemployment benefit expense net of
employer contributions 1,459 (61) 1,398 (4,137)
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (68,759) - (68,759) (61,290)
Inventories (4,977) (1,350) (6,327) (6,733)
Prepaids 24,856 5,055 29,911 (14,528)
Increase (decrease) in:
Accounts payable and accrued liabilities (80,379) 17,283 (63,096) (87,903)
Accrued payroll and related liabilities 8,711 2,497 11,208 487
Customer security deposits (1,300) - (1,300) 800
Compensated absences (4,138) (2,228) (6,366) 3,433
Net cash provided by (used in) operating activities 1,546,415$ (313,420)$ 1,232,995$ 885,924$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 110,438$ -$ 110,438$ 42,564$
Capital contributions 364,920$ -$ 364,920$ -$
2021
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
22
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
23
Note 1.Summary of Significant Accounting Policies
A.The Financial Reporting Entity
The Town of Vinton (the “Town”) was established in 1884. It is a political subdivision of the
Commonwealth of Virginia operating under the Council-Manager form of government. The
Town Council consists of a mayor and four other council members. The Town is part of Roanoke
County and has taxing powers subject to state-wide restrictions and tax limits.
Vinton provides a full range of municipal services including police, refuse collection, recycling,
public improvements, planning and zoning, general administrative services, recreation, and water
and sewer services.
Jointly Governed Organizations
Roanoke Valley Resource Authority
The Town of Vinton, Roanoke County, and the City of Roanoke jointly participate in the
Roanoke Valley Resource Authority, which operates a regional solid waste disposal system that
includes a sanitary landfill, waste collection, and transfer station. The Authority is governed by a
board composed of seven members appointed by the governing bodies of participating
jurisdictions. Town Council appoints one member. The Town has control over the budget and
financing of the Authority only to the extent of representation by the board member appointed.
The participating localities are each responsible for their pro-rata share, based on population, of
any year-end operating deficit. For the current year, the Town remitted $212,417 to the Authority
for services. A separate financial statement can be obtained from the Roanoke Valley Resource
Authority, 110 Hollins Road, NE, Roanoke, Virginia 24012.
Roanoke Valley Regional Pound Facility
The Counties of Roanoke and Botetourt, the City of Roanoke, the Town of Vinton, and the
Roanoke Valley Society for the Prevention of Cruelty to Animals, Inc. formed the Advisory
Board of the Roanoke Valley Regional Pound Facility to construct and operate a regional pound
facility. The Board is composed of nine members. Each locality’s financial obligation is based
on the number of animals caged per day at the facility. The County of Roanoke assumed
responsibility for the Town’s percentage of the costs as part of the new memorandum of
understanding with the County of Roanoke that went into effect on July 1, 2019.A separate
financial statement can be obtained from the Roanoke Valley Regional Pound Facility,
1510 Baldwin Avenue, Roanoke, Virginia 24012.
Roanoke County Emergency Communications Center
The Town participates in an intergovernmental agreement with the County of Roanoke for the
operation of a E-911 dispatch center. All personnel of the Center are employees of Roanoke
County. The Director of Communications & Information Technology in coordination with the
Emergency Communications Center Advisory Board is responsible for oversight of the Center.
The Assistant Director for Communications and Information Technology is responsible for the
day-to-day operational management of the Center.The Town and County of Roanoke contribute
to the operational cost of the Center based on the pro rata share of call volume. The Town’s share
of the operating cost was $447,618 in the current year. Separate financial statements are not
available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
24
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (Continued)
Jointly Governed Organizations (Continued)
Western Virginia Regional Industrial Facility Authority
The Town of Vinton, County of Botetourt, County of Franklin, County of Roanoke, City of
Salem, and the City of Roanoke jointly participate in the Western Virginia Regional Industrial
Facility Authority, which functions to enhance the economic base for members by developing,
owning, and operating facilities on a cooperative basis. The Authority is governed by a board
composed of twelve members appointed by the governing bodies of participating jurisdictions.
Town Council appoints two members. There were no associated costs to members for
participation in the Authority in the current year. A separate financial statement can be obtained
from the Western Virginia Regional Industrial Facility Authority care of Roanoke Regional
Partnership, 111 Franklin Road, SE, Roanoke, Virginia 24011.
B.Individual Component Unit Disclosures
As required by generally accepted accounting principles, these financial statements present the
Town as the primary government. A component unit is an entity for which the primary
government is considered to be financially accountable. There are no component units within this
reporting entity.
C.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the activities of the Town. For the most part,
the effect of interfund activity has been removed from these statements. Interfund services
provided and used are not eliminated in the process of consolidation. 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.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is 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 the governmental fund and proprietary funds.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
25
Note 1.Summary of Significant Accounting Policies (Continued)
D.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 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.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as 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 Town considers revenue as available if it is collected within
45 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 expenditures, 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 have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the Town.
The Town reports the following major governmental funds:
The general fund is the Town’s primary operating fund. It accounts for all financial
resources of the Town, except those required to be accounted for in another fund.
The capital projects fund is used to account for financial resources which have been
segregated for the acquisition or construction of major capital facilities.
The grant fund is a special revenue fund that is used to report specific revenue sources that
are limited to being used for a specific purpose.
The Town reports the following major proprietary funds:
The enterprise funds account for the financing of services to the general public where all or
most of the operating expenses involved are intended to be recovered in the form of user
charges, or where management has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for management control, accountability,
or other purposes. The enterprise funds consist of the activities relating to water and sewer
services and stormwater management.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
26
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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 non-operating 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 water and sewer enterprise fund are charges to customers for
sales and services. The stormwater management fund has not begun to collect dedicated utility
fees. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
E.Budgets and Budgetary Accounting
The following procedures are used in establishing the budgetary data reflected in the financial
statements:
1)Prior to June 30, the Town Manager submits to Council a proposed operating and capital
budget for the fiscal year commencing the following July 1. This budget includes proposed
expenditures and the means of financing them.
2)Public hearings are conducted to obtain citizen comments.
3)Prior to June 30, the budgets for the general and enterprise funds are legally enacted through
passage of an appropriations ordinance. Town Council may, from time to time, amend the
budget providing for additional expenditures and the means for financing them. Town
Council approved additional general fund appropriations of approximately $1,771,000 during
the fiscal year ended June 30, primarily for capital projects deferred from the prior year and
additional operating expenditures.
4)The appropriations ordinance places legal restrictions on expenditures at the department or
function level. Management can over-expend at the line item level without approval of Town
Council. The appropriation for each department or function can be revised only by Town
Council. The Town Manager is authorized to transfer budget amounts within departments.
All budget data presented in Exhibit 7 is at the legal level of budgetary control.
5)Formal budgetary integration is employed as a management control device during the year for
the general and enterprise funds.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
27
Note 1.Summary of Significant Accounting Policies (Continued)
E.Budgets and Budgetary Accounting (Continued)
6)Budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
7)Appropriations lapse on June 30.
8)All budget data presented in the accompanying financial statements are revised as of June 30.
F.Cash and Cash Equivalents
Cash and cash equivalents are defined as short-term, highly liquid investments (including
restricted assets) with an original maturity of three months or less when purchased.
G.Allowance for Uncollectible Accounts
The Town calculates its allowance for uncollectible accounts using historical collection data and
specific account analysis.
H.Inventories
Inventories are valued at cost.Inventories are accounted for under the consumption method,
where inventories are recorded as expenditures when consumed, rather than when purchased.
I.Prepaid Items
Governmental fund prepaid items consist primarily of health insurance premiums payments
incurred for periods in a subsequent fiscal year. Prepaid items are accounted for using the
consumption method. The payments are recorded as expenditures in the fiscal year related to the
coverage period.
Proprietary fund prepaid items consist primarily of inventory purchased before year end but not
received and on hand until after year end. Prepaid items are accounted for using the consumption
method. The costs of these items are expensed in the subsequent fiscal year when they are
actually consumed or used.
J.Land Held for Resale
Land held for resale represents a property that was purchased by the Town for the purposes of
economic development. The Town intends to sell the property as soon as possible and thus it will
not be placed into service to benefit the Town.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
28
Note 1.Summary of Significant Accounting Policies (Continued)
K.Capital Assets
Capital assets, which include property, plant, and equipment, and infrastructure assets acquired
subsequent to July 1, 2001, are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the Town as
assets with an initial,individual cost of more than $10,000 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. Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are recorded at acquisition value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful
lives:
Buildings and improvements 10-40 years
Machinery and equipment 3-10 years
Utility plant 20-40 years
Public domain infrastructure 25-40 years
Sewage treatment contract 30 years
L.Deferred Outflows/Inflows of Resources
In addition to assets, the statements that present net position report a separate section for deferred
outflows of resources. These items represent a consumption of net position that applies to future
periods and so will not be recognized as an outflow of resources (expense) until then.
In addition to liabilities, the statements that present financial position report a separate section for
deferred inflows or resources. These items represent an acquisition of net position that applies to
future periods and so will not be recognized as an inflow of resources (revenue) until that time.
M.Compensated Absences
The Town has policies which allow for the accumulation and vesting of limited amounts of
vacation and sick leave until termination or retirement. Amounts of such absences are accrued
when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only when the leave is due and payable.
N.Pensions and Other Postemployment Benefits (OPEB)
For purposes of measuring all financial statement elements relating to pension and OPEB plans,
information about the fiduciary net position of the Town’s plans and the additions to/deductions
from the Town’s plan’s net fiduciary net 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
29
Note 1.Summary of Significant Accounting Policies (Continued)
O.Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other 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 straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenses.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, 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.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
P.Fund Balances
Fund balance is divided into five classifications based primarily on the extent to which the Town
is bound to observe constraints imposed upon the use of the resources. The classifications are as
follows:
Nonspendable –Amounts that cannot be spent because they are not in spendable form,
or legally or contractually required to be maintained intact. The “not in spendable form”
criterion includes items that are not expected to be converted to cash.
Restricted –Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
Committed –Amounts constrained to specific purposes by the Town, using its highest
level of decision making authority; to be reported as committed, amounts cannot be used
for any other purposes unless the same highest level of action is taken to remove or
change the constraint.
Assigned –Amounts the Town intends to use for a specified purpose; intent can be
expressed by the governing body.
Unassigned –Amounts that are available for any purpose; positive amounts are reported
only in the general fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
30
Note 1.Summary of Significant Accounting Policies (Continued)
P.Fund Balances (Continued)
Council establishes (and modifies or rescinds) fund balance commitments by passage of an
ordinance or resolution. This is typically done through adoption and amendment of the budget.
The degree of difficulty to remove an ordinance is greater than a resolution; therefore an
ordinance is the most binding. Assigned fund balance is established by Council, the Town
Manager, or the Director of Finance through adoption or amendment of the budget as intended for
specific purpose (such as the purchase of capital assets, debt service, or for other purposes).
The Town applies restricted resources first when expenditures are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Minimum Fund Balance Policy
The Town strives to maintain a General Fund reserve equal to four months of discretionary
General Fund revenues.
Q.Estimates
Management uses estimates and assumptions in preparing its financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of
contingent liabilities, and reported revenues and expenses. Actual results could differ from those
estimates.
R.Comparative Information
The basic financial statements include certain prior year summarized comparative information in
total but not at the level of detail required for a presentation in conformity with generally
accepted accounting principles. Accordingly, such information should be read in conjunction
with the government’s financial statements for the prior year from which the summarized
information was derived.
S.Reclassifications
Certain amounts in the prior-year comparison information have been reclassified for comparative
purposes to conform with the presentation in the current-year financial statements.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
31
Note 2.Deposits and Investments
Deposits
Deposits with banks are covered by the Federal Deposit Insurance Corporation (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
Investment Policy
Statutes authorize the Town 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 and certain corporate notes, and
bankers’ acceptances, repurchase agreements, and the State Treasurer’s Local Government
Investment Pool (LGIP). Pursuant to Section 2.1-234.7 Code of Virginia, the Treasury Board of the
Commonwealth sponsors the LGIP and has delegated certain functions to the State Treasurer. The
LGIP reports to the Treasury Board at their regulatory scheduled monthly meetings and the fair value
of the position in LGIP is the same as the value of the pool shares (i.e., the LGIP maintains a stable
net asset value of $1 per share). The investment policy (the “Policy”) specifies that no investment
may have a maturity greater than one year from the date of purchase.
Credit Risk
As required by state statute, the Policy requires that “prime quality”commercial paper, with a
maturity of 270 days or less, of issuing corporations organized under the laws of the United States, or
of any state thereof including paper issued by banks and bank holding companies has received at least
two of the following ratings: (i) at lease prime 1 by Moody’s Investors Service, Inc.; (ii) at least A1
by Standard & Poor’s; or (iii) at least F1 by Fitch Ratings, Inc. provided that at the time of the any
such investment has a net worth of at least $50 million, the net income of the issuing corporation, or
its guarantor, has averaged $3 million per year for the previous five year, and all existing senior
bonded indebtedness of the issuer, or its guarantor, has received at least two of the following ratings:
(i) at lease A by Moody’s Investors Service, Inc.; (ii) at least A by Standard & Poor’s, or (iii) at least
A by Fitch Ratings, Inc.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
32
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Credit Risk (Continued)
The Policy also requires that negotiable certificates of deposit and negotiable bank deposit notes of
domestic banks and domestic offices of foreign banks with maturities not exceeding one year, have
received at least two of the following ratings: (i) at least A-1 by Standard & Poor’s; (ii) at least P-1 by
Moody’s Service; or (iii) at least at least F1 by Fitch Ratings. For maturities exceeding one year and
not exceeding five years, have received at least two of the following ratings: (i) at least AA by
Standard & Poor’s, (ii) at least Aa by Moody’s Investors Service, or (iii) at least AA by Fitch Ratings.
The Town has invested bond proceeds subject to rebate of arbitrage earnings in the Virginia State
Non-Arbitrage Program (SNAP). SNAP is designed to assist local governments in complying with
the arbitrage rebate requirements of the Tax Reform Act of 1986. These programs provide
comprehensive investment management, accounting, and arbitrage rebate calculation services for
proceeds of general obligation and revenue tax-exempt financing of Virginia local governments. The
SNAP has been assigned an “AAAm” rating by Standard & Poor’s. The maturity of the SNAP is less
than one year.
Although the intent of the Policy is for the Town to diversify its investment portfolio to avoid
incurring unreasonable risks regarding (i) security type, (ii) individual financial institution or issuing
entity, and (iii) maturity, the Policy places no limit on the amount the Town may invest in any one
issuer.
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s
investment policy specifies that no investment may have a maturity greater than two years from the
date of purchase, and the average maturity of the portfolio must not exceed one year.
Custodial Credit Risk
The Policy requires that all investment securities shall be held in safekeeping by a third-party and
evidenced by safekeeping receipts. As required by the Code of Virginia, all security holdings with
maturities over 30 days may not be held in safekeeping with the “counterparty” to the investment
transaction.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
33
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Custodial Credit Risk (Continued)
As of June 30, the Town’s deposit and investment balances were as follows:
Deposits
Demand deposits $13,119,407
Cash on hand 1,309
13,120,716
Investments (Fair Value):
LGIP 20,985
VML VIP Liquidity Pool 10,157
SNAP 4,372,994
Total deposits and investments $17,524,852
Exhibit 1 total deposits and investments is composed as follows:
Cash and investments $13,078,473
Restricted cash 4,446,379
Total deposits and investments $17,524,852
Restricted cash and cash equivalents consists of $4,372,994 in unspent bond proceeds, $45,300 of
utility deposits, $26,708 of evidence found, and $1,377 of flex benefit spending that can only be used
for specific purposes.
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
34
Note 4.Due from Other Governmental Units
Governmental
Activities
A summary of funds due from other governmental units was as follows:
$554,685
Note 5.Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Beginning
Balance Increases Decreases
Ending
Balance
Capital assets, not depreciated
Land $1,832,033 $- $(8,501)$1,823,532
Construction in progress 360,699 128,063 (194,605)294,157
Total capital assets, not depreciated 2,192,732 128,063 (203,106)2,117,689
Capital assets, depreciated
Buildings and improvements 9,682,209 350,176 (2,290)10,030,095
Machinery and equipment 3,794,597 601,057 (241,307)4,154,347
Infrastructure 3,487,140 645,635 - 4,132,775
Total capital assets, depreciated 16,963,946 1,596,868 (243,597)18,317,217
Less accumulated depreciation for:
Buildings and improvements (5,282,600)(281,432)4,592 (5,559,440)
Machinery and equipment (3,195,112)(168,284)241,307 (3,122,089)
Infrastructure (1,824,329)(180,019)- (2,004,348)
Total accumulated depreciation (10,302,041)(629,735)245,899 (10,685,877)
Total capital assets, depreciated, net 6,661,905 967,133 2,302 7,631,340
Governmental activities
capital assets, net $8,854,637 $1,095,196 $(200,804)$9,749,029
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
35
Note 5.Capital Assets (Continued)
Business-type Activities
Beginning
Balance
(Restated)Increases Decreases
Ending
Balance
Capital assets, not depreciated
Land $80,752 $- $- $80,752
Construction progress - 162,949 - 162,949
Total capital assets, not depreciated 80,752 162,949 - 243,701
Capital assets, depreciated
Utility plant 19,467,081 702,293 - 20,169,374
Sewage treatment contract 4,111,373 - - 4,066,884
Machinery and equipment 2,290,954 - (44,489)2,290,954
Total capital assets, depreciated 25,869,408 702,293 (44,489)26,527,212
Less accumulated depreciation for:
Utility plant (12,799,106)(591,042)- (13,390,148)
Sewage treatment contract (2,113,945)(219,703)- (2,289,159)
Machinery and equipment (1,310,993)(99,403)44,489 (1,410,396)
Total accumulated depreciation (16,224,044)(910,148)44,489 (17,089,703)
Total capital assets, depreciated, net 9,645,364 (207,855)- 9,437,509
Business-type activities
capital assets, net $9,726,116 $(44,906)$- $9,681,210
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has a $200,000 construction commitment for the Glade Creek Greenway construction
project and $1,286,000 for the water meter infrastructure upgrade as of June 30, 2021.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
36
Note 5.Capital Assets (Continued)
Sewage Treatment Contract
Through its participation in an agreement with four other localities for the expansion of the regional
sewage treatment plant and interceptors, the Town has contractual rights to predetermined capacity in
both the plant and interceptors through 2034.
The plant upgraded its facilities in 2017 to improve compliance with DEQ peak flow requirements.
Modifications costing approximately $17 million were completed. The Town’s share was $1,039,443,
which was funded with general obligation bonds issued through the Virginia Resources Authority.
The plant upgraded its Tinker Creek Interceptor in 2015 to reduce inflow and infiltration as well as
mitigate overflow. Modifications costing approximately $5 million were completed. The Town’s
share was approximately 5.5% or $294,000, which was funded with an obligation payable to the
Western Virginia Water Authority.
The Western Virginia Water Authority began upgrades to its main digester plant in 2021 to improve
operations and ensure continuity of services. Modifications costing approximately $13 million are
scheduled to be completed by 2022. The Town’s share was approximately 5.5% or $710,808.
Incurred expenses as of June 30, 2021 were recorded as an obligation payable of $173,525. The
Town applied for Virginia Clean Water Revolving Loan Funds, which should be awarded and
recorded during the following fiscal year.
The Town is required to contribute $66,000 annually to a capital reserve fund for ongoing
maintenance of the system. The Town has made the annual required contribution since the formation
of the Authority in 2005.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
37
Note 6.Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental Beginning Ending Due Within
General obligation bonds $1,985,234 $321,000 $(635,639)$1,670,595 $346,387
Obligation payable –
Roanoke County 55,500 - (55,500)--
Obligation payable –
19,852 - (8,652)11,200 11,200
Capital leases 296,746 - (57,700)239,046 59,256
Compensated absences 370,671 42,553 (122,321)290,903 95,998
Business-type
General obligation bonds $3,095,449 $5,654,000 $(1,570,330)$7,179,119 $820,110
Revenue bonds 1,513,000 - (175,000)1,338,000 181,000
Obligation payable –
221,589 173,525 (15,837)379,277 21,337
Capital leases 558,344 - (125,225)433,119 104,159
Compensated absences 33,214 15,017 (8,651)39,580 10,291
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
38
Note 6.Long-Term Liabilities (Continued)
Governmental activities’ compensated absences, pension liabilities, and other post-employment
liabilities are generally liquidated by the general fund.
Governmental Activities
General Obligation
Bonds Capital Leases Obligation Payable
Fiscal
Year Principal Interest Principal Interest Principal Interest
$
2022 346,387 $29,222 $59,256 $6,215 $11,200 $208
2023 348,732 23,087 60,855 4,595 - -
2024 360,578 16,020 62,497 2,930 - -
2025 360,898 8,816 44,064 1,219 - -
2026 127,000 4,048 12,374 198 - -
2027-2031 127,000 1,638 - - - -
1,670,595 $82,831 $239,046 $15,157 $11,200 $208
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
2022 820,110 $126,096 $181,000 $25,574 21,337 12,827
2023 815,887 121,437 181,000 21,863 21,974 12,190
2024 834,577 103,269 186,000 18,101 22,632 11,531
2025 809,833 84,633 191,000 14,237 23,313 10,851
2026 782,230 67,712 196,000 10,271 24,017 10,147
2027-2031 2,896,482 161,573 403,000 8,292 131,517 39,300
2032-2036 220,000 5,495 - - 74,918 20,656
2037-2041 - - - - 59,569 7,490
$7,179,119 $670,215 $1,338,000 $98,338 $379,277 $124,992
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
39
Note 6.Long-Term Liabilities (Continued)
Capital Leases
Fiscal
Year Principal Interest
2022 104,159 $10,902
2023 106,907 8,154
2024 109,729 5,333
2025 74,458 2,436
2026 37,866 860
$433,119 $27,685
The revenue bond has been issued in accordance with the terms of an indenture agreement with the
Virginia Municipal League/Virginia Association of Counties. The indenture agreement requires the
Town to pledge its Water and Sewer Fund Revenues as collateral for the revenue bond and to
maintain revenues in the Water and Sewer Fund equal to at least 1.20 of all debt service payments
which exclude any refunded principal payments. The pledged revenue coverage ratio for the year
ended June 30, 2021 was 2.45. Statistical Section Table 11 presents the pledged revenue coverage
ratio.
The Town entered into an agreement with the County of Roanoke in July 2019 that transferred the
remaining debt payments associated with the Vinton Fire Station #2 and the Vinton Rescue Squad #2.
The County makes semi-annual payments directly to the Town.
Details of long-term indebtedness are as follows:
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue Activities
Business-
Type
Activities
General Obligation Bonds
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 1.00%07/24/03 07/01/24 $1,250,704 $- $286,944
G.O. Water and Sewer Bonds 1.00%10/01/04 10/01/26 2,479,000 - 855,777
G.O. Water and Sewer Bonds 1.00%01/12/06 03/01/26 1,210,000 - 382,398
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 428,000 -
Zions Bancorporation
G.O. Capital Improvement Bonds 1.66%04/22/21 03/01/33 4,429,000 - 4,429,000
G.O. Refunding Bonds 1.66%04/22/21 03/01/33 1,546,000 321,000 1,225,000
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 921,595 -
$1,670,595 $7,179,119
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
40
Note 6.Long-Term Liabilities (Continued)
Details of long-term indebtedness are as follows:(Continued)
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue Activities
Business-
Type
Activities
Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $- $1,338,000
Capital Lease
U.S. Bancorp 2.43%12/29/17 12/29/24 746,241 $134,244 $254,645
Home Trust Bank 3.10%07/27/18 07/27/25 157,053 104,802 -
Signature Public Funding Corp.3.02%04/19/19 04/19/26 242,703 - 178,474
$239,046 $433,119
Obligations Payable
RCACP 2.95%12/31/13 09/30/22 73,180 $11,200 $-
WVWA 2.35%03/01/15 09/01/32 294,516 - 205,752
WVWA - 173,525
$11,200 $379,277
Note 7.Performance Agreements
The Town has committed funds for several performance agreements with local businesses to
encourage redevelopment and economic growth in the Town. In exchange, the Town will provide
funding equal to annual meals tax generated by the business or make annual payments as performance
benchmarks are met, depending on the agreement. The expected maturity of the total payouts is
June 30, 2031. As of June 30, 2021, the amount earned is $381,284 and the amount unearned is
$819,882.
Note 8.Defined Benefit Pension Plan
Plan Description
All full-time, salaried permanent employees of the Town of Vinton, (the “Political Subdivision”) are
automatically covered by the VRS Retirement Plan upon employment. This multi-employer agent
plan is administered by the Virginia Retirement System (the System) along with plans for other
employer groups in the Commonwealth of Virginia. 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
41
Note 8.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
The System administers three different benefit structures for covered employees –Plan 1, Plan 2, and
Hybrid. Each of these benefit structures has a different eligibility criteria. The specific information
for each plan and the eligibility for covered groups within each plan are available at
https://www.varetire.org/members/benefits/defined-benefit/plan1.asp,
https://www.varetire.org/members/benefits/defined-benefit/plan2.asp,
https://www.varetirement.org/hybrid.html.
Employees Covered by Benefit Terms
As of the June 30, 2019 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 78
Inactive members:
Vested inactive members 22
Non-vested inactive members 29
Inactive members active elsewhere in VRS 67
Total inactive members 118
Active members 70
Total covered employees 266
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 political subdivision’s contractually required contribution rate for the year ended June 30, 2021
was 11.78% 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 political subdivision were $365,876 and
$365,794 for the years ended June 30, 2021 and June 30, 2020, respectively.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
42
Note 8.Defined Benefit Pension Plan (Continued)
Net Pension Liability
The political subdivision’s net pension liability 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. For political subdivisions, the net
pension liability was measured as of June 30, 2020. The total pension liability used to calculate the
net pension liability was determined by an actuarial valuation performed as of June 30, 2019 rolled
forward to the measurement date of June 30, 2020.
Actuarial Assumptions
The total pension liability for General Employees and Public Safety with Hazardous Duty Benefits in
the Political Subdivision’s Retirement Plan was based on an actuarial valuation as of June 30, 2019,
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, 2020.
Inflation 2.50%
General Employees –Salary increases,
including inflation
3.50 –5.35%
Public Safety Employees with hazardous
duty benefits –Salary increases, including
inflation
3.50 –4.75%
Investment rate of return 6.75%, net of pension plan investment expense,
including inflation*
*Administrative expenses as a percent of the market value of assets for the last experience
study were found to be approximately 0.06% of the market assets for all of the VRS plans.
This would provide an assumed investment rate for GASB purposes of slightly more than
the assumed 6.75%. However, since the difference was minimal, and a more conservative
6.75% investment return assumption provided a projected plan net position that exceeded the
projected benefit payments, the long-term expected rate of return on investments was
assumed to be 6.75% to simplify preparation of pension liabilities.
Mortality rates: General employees –15 to 20% of deaths are assumed to be service related. Public
Safety Employees –70% of deaths are assumed to be service related. Mortality is projected using the
applicable RP-2014 Mortality Table Projected to 2020 with various setbacks or set forwards for both
males and females.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
43
Note 8.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions (Continued)
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study for the period from July 1, 2012 through June 30, 2016, 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 are as follows:
General Employees –Largest 10 –Non-Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; lowered retirement rates at older ages, changed final retirement from 70
to 75; adjusted withdrawal rates to better fit experience at each year age and service through 9
years of service; lowered disability rates, no change to salary scale, increased rate of line of
duty disability from 14% to 20% (Largest 10) or 15% (All Others), and decreased discount rate
from 7.00% to 6.75%.
Public Safety Employees –Largest 10 –Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; lowered retirement rate at older ages; adjustment to rates of withdrawal
and disability to better fit experience; changes to line of duty rates, no changes to salary scale,
and decreased discount rate from 7.00% to 6.75%.
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
Arithmetic Average
Long-Term Long-Term
Expected Expected
Target Rate of Rate of
Asset Class (Strategy)Allocation Return Return
Public Equity 34.00 %4.65 %1.58 %
Fixed Income 15.00 0.46 0.07
Credit Strategies 14.00 5.38 0.75
Real Assets 14.00 5.01 0.70
Private Equity 14.00 8.34 1.17
MAPS-Multi-Asset Public Strategies 6.00 3.04 0.18
PIP-Private Investment Partnership 3.00 6.49 0.19
Total 100.00 %4.64 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.14 %
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
44
Note 8.Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return (Continued)
*The above allocation provides for a one-year return of 7.14%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected rate of 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 7.11%, including
expected inflation of 2.5%.On October 10, 2019, the VRS Board elected a long-term rate of
6.75% which is roughly at the 40th percentile of expected long-term results of the VRS fund
asset allocation.More recent capital market assumptions compiled for the FY2020 actuarial
valuations, provide a median return of 6.81%.
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; political subdivisions were also
provided with an opportunity to use an alternate employer contribution rate. For the year ended
June 30, 2020, the alternate rate was the employer contribution rate used in the FY 2012 or 100% of
the actuarially determined employer contribution rate from the June 30, 2017, actuarial valuations,
whichever is greater. From July 1, 2020 on, participating employers 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
45
Note 8.Defined Benefit Pension Plan (Continued)
Changes in Net Pension Liability
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) –(b)
Balances at June 30, 2019 $20,051,700 $17,803,624 $2,248,076
Changes for the year:
Service cost 406,156 - 406,156
Interest 1,313,647 - 1,313,647
Differences between expected
and actual experience (477,134)- (477,134)
Contributions –employer - 350,377 (350,377)
Contributions –employee - 147,474 (147,474)
Net investment income - 336,025 (336,025)
Benefit payments, including refunds
of employee contributions (1,180,514)(1,180,514)-
Administrative expenses - (11,803)11,803
Other changes - (393)393
Net changes 62,155 (358,834)420,989
Balances at June 30, 2020 $20,113,855 $17,444,790 $2,669,065
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the political subdivision using the discount rate of
6.75%, as well as what the political subdivision’s 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:
1.00%Current 1.00%
Decrease Discount Increase
(5.75%)Rate (6.75%)(7.75%)
Political subdivision’s net
pension liability $5,119,449 $2,669,065 $635,526
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
46
Note 8.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2021, the political subdivision recognized pension expense of $667,211.
At June 30, 2021,the political subdivision reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $3,578 $289,367
Change in assumptions 175,562 -
on pension plan investments 522,404 -
Employer contributions subsequent to the
measurement date 365,876 -
Total $1,067,420 $289,367
The $365,876 reported as deferred outflows of resources related to pensions resulting from the
Political Subdivision’s contributions subsequent to the measurement date will be recognized as a
reduction of the Net Pension Liability in the year ending June 30, 2022. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Increase
(Reduction)
Year Ended to Pension
June 30,Expense
2022 $(31,481)
2023 95,883
2024 179,323
2025 168,452
2026 -
Thereafter -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
47
Note 8.Defined Benefit Pension Plan (Continued)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately
issued VRS 2020 Comprehensive Annual Financial Report (Annual Report). A copy of the 2020 VRS
Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2020-annual-report.pdf, or by writing to the System’s Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Payables to the Pension Plan
At June 30, 2021, approximately $27,985 was payable to the Virginia Retirement System for the
legally required contributions related to June 2021 payroll.
Note 9.Other Postemployment Benefits Liability –Local Plan
Plan Description and Benefits Provided
The Town provides postemployment medical and dental benefits to its eligible retirees and their
dependents through a single-employer defined benefit plan. At retirement, retirees under the age of
65 may participate in one of the Town’s health and dental plans and may continue coverage under
these plans until age 65 or becoming eligible for Medicare, whichever comes first. The Town
contributes $200 per month towards this coverage with the retiree paying the remainder of the
premium. Medicare-eligible retirees may participate in the Medicare supplement only and pay 100%
of the Medicare supplement premium. The retirees receive an implicit benefit from participating in
the Town’s health and dental plans through lower insurance rates created by the blending of the
retirees with active employee’s rates. The Town Council may change, add, or delete benefits
(including contributions required of retired employees) as deemed appropriate.
Participants are eligible for the plan at age 55 if they have completed 25 years of service. Retiring
employees must have been active employees when they retire.
The plan does not provide audited financial statements.
Funding Policy
The Town currently funds postemployment benefits on a pay-as-you-go basis. The Town does not
intend to establish a trust to pre-fund this liability.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
48
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
Employees Covered by Benefit Terms
As of the January 1, 2020 actuarial valuation, the following employees were covered by the benefit
terms of the plan:
Number
Inactive employees or beneficiaries 3
Active plan members 62
65
Total OPEB Liability
The Town’s total OPEB liability of $318,565 was measured as of June 30, 2021 and was determined
based on an actuarial valuation performed as of January 1, 2020.
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.50%
Salary increases, including inflation 2.16% plus a variable merit component that is
dependent on years of service
Healthcare cost trend rates 3.70% initially, grading up to 4.20% ultimately
Retirees’ share of benefit-related costs $-0-
Mortality rates: Ranges from 0.00016 to 0.09286.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
49
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
Actuarial Assumptions and Other Inputs (Continued)
The actuarial assumptions used in the January 1, 2020 valuation were based on the results of an
actuarial VRS experience over the four-year period ending June 30, 2016.
Changes in assumptions and other inputs reflect plan changes, effect of economic/demographic gains
or losses, and effect of assumptions changes or inputs.
Changes in the Total OPEB Liability
Balance at June 30, 2020 $303,506
Changes for the year:
Service cost 37,413
Interest 7,195
Assumption or other input changes 1,261
Benefit payments (30,810)
Net changes 15,059
Balance at June 30, 2021 $318,565
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Town, as well as what the Town’s total 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 discount rate:
1.00%Current 1.00%
Decrease Discount Increase
(1.16%)Rate (2.16%)(3.16%)
Total OPEB liability $343,742 $318,565 $293,609
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the Town, as well as what the Town’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are one percentage point
lower (2.70%) or one percentage point higher (4.70%) than the current healthcare cost trend rates:
Current
1.00%
Decrease
Healthcare
Cost Trend
1.00%
Increase
(2.70%)
Rates
(3.70%)(4.70%)
Total OPEB liability $267,011 $318,565 $382,478
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
50
Note 9.Other Postemployment Benefits Liability –Local Plan (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended June 30, 2021, the Town recognized OPEB expense of $15,677. At
June 30, 2021, the political subdivision reported deferred outflows of resources and deferred inflows
of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $- $127,172
Change in assumptions 13,224 51,600
Total $13,224 $178,772
The $-0-reported as deferred outflows of resources related to OPEB resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the OPEB
Liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Reduction
Year Ended to OPEB
June 30,Expense
2022 $(28,931)
2023 (28,931)
2024 (28,931)
2025 (28,931)
2026 (29,169)
Thereafter (20,656)
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
51
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan
In addition to their participation in the pension plan offered through the Virginia Retirement System
(VRS), the Town also participates in a cost-sharing and agent multi-employer other postemployment
benefit plans described as follows.
Plan Description
Group Life Insurance Program
All full-time teachers and employees of political subdivisions are automatically covered by the
VRS Group Life Insurance (GLI) Program upon employment.
In addition to the Basic Group Life Insurance Benefit, members are also eligible to elect
additional coverage for themselves as well as a spouse or dependent children through the
Optional Group Life Insurance Program. 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 program, it is not included as part of the GLI Program OPEB.
Specific information for the GLI is available at https://www.varetire.org/members/benefits/life-
insurance/basic-group-life-insurance.asp
The GLI is administered by the VRS along with pensions and other OPEB plans, for public
employer groups in the Commonwealth of Virginia. This plan is considered a multiple employer,
cost sharing plan.
Contributions
Contributions to the VRS OPEB program was based on actuarially determined rates from actuarial
valuations as of June 30, 2019. The actuarially determined rates were expected to finance the cost of
benefits earned by employees during the year, with an additional amount to fund any unfunded
accrued liability. Specific details related to the contributions for the VRS OPEB program are as
follows:
Group Life Insurance Program
Governed by:Code of Virginia 51.1-506 and 51.1-508 and may
be impacted as a result of funding provided to
school divisions and governmental agencies by
the Virginia General Assembly.
Total rate:1.34% of covered employee compensation. Rate
allocated 60/40; 0.80% employee and 0.54%
employer. Employers may elect to pay all or part
of the employee contribution.
June 30, 2021 Contribution $15,876
June 30, 2020 Contribution $18,325
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
52
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
OPEB Liability, OPEB Expense and Deferred Inflows and Outflows of Resources Related to
OPEB
The net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation performed as of
June 30, 2019 and rolled forward to the measurement date of June 30, 2020. The covered employer’s
proportion of the net OPEB liability was based on the covered employer’s actuarially determined
employer contributions for the year ended June 30, 2020 relative to the total of the actuarially
determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2021 proportionate share of
liability $253,496
June 30, 2020 proportion 0.01519%
June 30, 2019 proportion 0.01850%
June 30, 2021 expense $2,798
Since there was a change in proportionate share between measurement dates, a portion of the OPEB
expense above was related to deferred amount from changes in proportion.
At June 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources.
Group Life Insurance Program
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $16,259 $2,277
Change in assumptions 12,678 5,293
on OPEB plan investments 7,615 -
Changes in proportion 10,460 56,648
Employer contributions subsequent to the
measurement date 15,876 -
Total $62,888 $64,218
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
53
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
OPEB Liability, OPEB Expense and Deferred Inflows and Outflows of Resources Related to
OPEB (Continued)
The deferred outflows of resources related to OPEB resulting from the Town’s contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the
year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Group Life Insurance Program
Reduction
Year Ended to OPEB
June 30,Expense
2022 $(3,051)
2023 (901)
2024 (1,288)
2025 (3,121)
2026 (7,131)
Thereafter (1,714)
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions based on an actuarial
valuation date of June 30, 2019, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2020:
Inflation 2.5%
Salary increases, including inflation:
Locality –general employees
Locality –hazardous duty
employees
3.5 –5.35%
3.5 –4.75%
Healthcare cost trend rates:
Under age 65
Ages 65 and older
7.00–4.75%
5.375 –4.75%
Investment rate of return, net of expenses,
including inflation*
GLI: 6.75%
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
54
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
Actuarial Assumptions and Other Inputs (Continued)
*Administrative expenses as a percent of the market value of assets for the last experience
study were found to be approximately 0.06% of the market assets for all of the VRS plans.
This would provide an assumed investment rate for GASB purposes of slightly more than
the assumed percent above. However, since the difference was minimal, and a more
conservative 6.75% investment return assumption provided a projected plan net position that
exceeded the projected benefit payments, the long-term expected rate of return on
investments was assumed to be the percent noted above to simplify preparation of OPEB
liabilities.
Mortality rates used for the various VRS OPEB plans are the same as those used for the actuarial
valuations of the VRS pension plans. The mortality rates are discussed in detail at Note 8.
Net OPEB Liability
The net OPEB liability represent each 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, 2020, net OPEB liability amounts for the VRS OPEB program is as follows (amounts
expressed in thousands):
Group Life
Insurance
Program
Total OPEB Liability $ 3,523,937
Plan fiduciary net
position $ 1,855,102
Employers’ net OPEB
liability (asset)$ 1,668,835
Plan fiduciary net
position as a percentage
of total OPEB liability 52.64%
The total liability is calculated by the VRS actuary and each plan’s fiduciary net position is reported
in the VRS financial statements. The net OPEB liability is disclosed in accordance with the
requirements of GASB Statement No. 74 in the VRS notes to the financial statements and required
supplementary information.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
55
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
Long-Term Expected Rate of Return
Group Life Insurance
The long-term expected rate of return on VRS 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 OPEB 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
Arithmetic Average
Long-Term Long-Term
Expected Expected
Target Rate of Rate of
Asset Class (Strategy)Allocation Return Return
Public Equity 34.00 %4.65 %1.58 %
Fixed Income 15.00 0.46 0.07
Credit Strategies 14.00 5.38 0.75
Real Assets 14.00 5.01 0.70
Private Equity 14.00 8.34 1.17
MAPS-Multi-Asset Public Strategies 6.00 3.04 0.18
PIP-Private Investment Partnership 3.00 6.49 0.19
Total 100.00 %4.64 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.14 %
*The above allocation provides for a one-year return of 7.14%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected rate of 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 7.11%, including
expected inflation of 2.50%.On October 10, 2019, the VRS Board elected a long-term rate
of 6.75% which is roughly at the 40th percentile of expected long-term results of the VRS
fund asset allocation.More recent capital market assumptions for the FY2020 actuarial
valuations provided a median return of 6.81%.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
56
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
Discount Rate
The discount rate used to measure the GLI OPEB 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 Guidance 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. Through the fiscal year ending June 30, 2020, the
rate contributed by the employer for the OPEB liabilities will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly. From July 1, 2020 on,
participating employers are assumed to contribute 100% of the actuarially determined contribution
rates. Based on those assumptions, the OPEB plans’ 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 OPEB liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liabilities of the Town, as well as what the Town’s net OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%
GLI) or one percentage point higher (7.75%GLI) than the current discount rate:
1.00%
Decrease
Current
Discount Rate
1.00%
Increase
(5.75%)(6.75%)(7.75%)
GLI Net OPEB liability $333,240 $253,496 $188,737
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately
issued VRS 2020 Comprehensive Annual Financial Report (Annual Report). A copy of the 2020 VRS
Annual Report may be downloaded from the VRS website at
http://www.varetire.org/Pdf/Publications/2020-annual-report.pdf, or by writing to the System’s Chief
Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Payables to the OPEB Plan
At June 30, 2021, the following amounts were payable to the Virginia Retirement System for the
legally required contributions related to June 2021 payroll.
Group Life Insurance $ 1,276
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
57
Note 11.Summary of Pension and Other Postemployment Benefits Elements
Total
Governmental Business-Type Primary
Activities Activities Government
Deferred outflows of resources –
pensions
Difference between expected and
actual experience
VRS $2,669 $909 $3,578
Changes of assumptions
VRS 130,963 44,599 175,562
Net difference between projected
and actual earnings on investments
VRS 389,661 132,743 522,404
Employer contributions subsequent
to the measurement date
VRS 272,896 92,980 365,876
Total deferred outflows of
resources –pensions $796,189 $271,231 $1,067,420
Deferred outflows of resources –
OPEB
Differences between expected and
actual experience
VRS GLI $14,633 $1,626 $16,259
Changes of assumptions
Local plan 11,901 1,322 13,223
VRS GLI 11,410 1,268 12,678
Net difference between projected
and actual earnings on investments
VRS GLI 6,854 762 7,616
Employer contributions subsequent
to the measurement date
VRS GLI 14,288 1,588 15,876
Changes in proportional share
VRS GLI 9,414 1,046 10,460
Total deferred outflows of
$68,500 $7,612 $76,112
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
58
Note 11.Summary of Pension and Other Postemployment Benefit Elements (Continued)
Total
Governmental Business-Type Primary
Activities Activities Government
Net pension liability
VRS $1,990,855 $678,210 $2,669,065
Total net pension liability $1,990,855 $678,210 $2,669,065
Local plan $285,291 $33,274 $318,565
VRS GLI 228,146 25,350 253,496
Total net OPEB liability $513,437 $58,624 $572,061
Deferred inflows of resources –
pensions
Difference between expected and
actual experience
VRS $215,839 $73,528 $289,367
Total deferred inflows of
resources –pensions $215,839 $73,528 $289,367
Deferred inflows of resources –
OPEB
Difference between expected and
actual experience
Local plan $114,453 $12,719 $127,172
VRS GLI 2,049 228 2,277
Change in assumptions
Local plan 46,442 5,158 51,600
VRS GLI 4,764 529 5,293
Change in proportionate share
VRS GLI 50,983 5,665 56,648
Total deferred inflow of
resources –OPEB $218,691 $24,299 $242,990
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
59
Note 12.Summary of Pension and Other Postemployment Benefit Expenses/Expenditures
Total
Governmental Business-Type Primary
Activities Activities Government
Pension expense
VRS $497,673 $169,538 $667,211
Total pension expense $497,673 $169,538 $667,211
OPEB expense
Local plan $14,110 $1,567 $15,677
VRS GLI 2,518 280 2,798
Total OPEB expense $16,628 $1,847 $18,475
Note 13.Deferred Compensation Plan
Plan description
The Town offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not available to employees until
termination, retirement, death, or qualifying hardship. The Town makes a matching contribution up
to the equivalent of $10 per month per employee.
All amounts of compensation deferred under the plan, all property and rights purchased with these
amounts,and all income attributable to those amounts, property, or rights are held in trust by a
third-party for the exclusive benefit of participants and their beneficiaries. For 2021, the Town’s
matching contributions totaled $7,832.
Note 14.Service Contracts
Sewage Treatment
The Town is party to an agreement, dated November 1, 2003, with the Western Virginia Water
Authority for the Authority to provide the transportation and treatment of waste at a specified rate to
be adjusted annually on July 1, based on the actual operating and maintenance costs for the previous
year. The 30-year agreement provides for a surcharge in the event waste content or volume exceeds
certain limits or the cost is less than the amount paid by users.
Water Purchases/Sales
Effective June 1, 2005, the Town agreed to purchase water from the Western Virginia Water
Authority at a bulk rate which is determined by a mutually agreed-upon formula. The water is
designated for an industrial user who pays the Town an agreed upon rate. This is a 30-year agreement
and will expire in 2035.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
60
Note 15.Property Taxes
The major sources of property taxes are real estate and personal property taxes. The assessments are
the responsibility of the County of Roanoke, while billing and collection functions are the Town’s
responsibilities.
Property taxes are levied annually in April on assessed values as of January 1. Personal property
transactions during the year are taxed on a prorated basis. Real estate tax is payable in two equal
installments on or before June 5 and December 5, and personal property tax is due on or before
May 31, or within 30 days subsequent to assessment. Personal property taxes do not create a lien on
property.
The annual assessment for real estate is based on 100% of the assessed fair market value. A penalty
of 10% of the unpaid tax is due for late payment. Interest is accrued at 10% for the initial year of
delinquency, and thereafter at the maximum annual rate authorized by the Internal Revenue Code
Section 6621(b). The effective tax rates per $100 of assessed value for the year ended June 30 were
as follows:
Note 16.Leases
The Town leases a portion of a building to the Virginia State Department of Health for $1,602 per
month on a month to month basis until terminated by either party.
The Town also leases vehicles for 60 months. As of June 30, 2021, the Town has leased 35 vehicles,
primarily for public safety, through this agreement. The monthly payments per vehicle range from
approximately $440 to $860 per month. Lease expense for the years ended June 30, 2021 and 2020
was $122,516 and $101,027, respectively. Estimated future minimum lease payments are as follows:
2022 $240,187
2023 159,882
2024 151,314
2025 77,210
2026 6,858
$635,451
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
61
Note 17.Risk Management
The Town is insured for workers’ compensation, general liability, health,and other risks. The risk
management programs are as follows:
Workers’ Compensation
Workers’ compensation insurance is provided through the Virginia Municipal League. During
2020-2021, total premiums paid were approximately $65,000. Benefits are those afforded through
Commonwealth of Virginia as outlined in the Code of Virginia Section 65.2-100; premiums are based
upon covered payroll, job rates, and claims experience.
General Liability
The Town provides general liability and other insurance through policies with Virginia Municipal
Self-Insurance Association. During 2020-2021, total premiums paid were approximately $93,000.
General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and
machinery coverage and property insurance have a $5,000,000 limit per accident. The Town
maintains an additional $4,000,000 per occurrence umbrella policy over all forms of liability
insurance. Police professional liability and public officials’ liability insurance with a $1,000,000
limit are covered through a policy with the Commonwealth of Virginia.
There were no significant reductions in insurance coverage from the prior year and no settlements that
exceeded the amount of insurance coverage.
Healthcare
The Town provides healthcare coverage for employees through a policy with Anthem Blue Cross
Blue Shield. The Town contributes the required premium amount for single coverage for each
employee. Dependents of employees are also covered by the policy provided they pay the additional
premium to the Town. During 2020-2021, total premiums paid were approximately $606,000.
Note 18.Commitments and Contingencies
Special Purpose Grants
Special purpose grants are subject to audit to determine compliance with their requirements. Town
management believes that required refunds, if any, will be immaterial.
Landfill Closure and Post-Closure Costs
As discussed in Note 1, the Town participates in the Roanoke Valley Resource Authority. The
Authority currently has responsibility for closure and post-closure care related to the new Smith Gap
landfill, the transfer station, and an old landfill site.
Closure and post-closure care requirements are mandated under the United States Environmental
Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, and are subject to periodic
revisions by the EPA. The current estimate of remaining closure and post-closure care costs,
assuming full utilization of the sites, is approximately $16.4 million. The participating localities have
contributed their pro-rata shares to fund the closure and post-closure care costs.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
62
Note 18.Commitments and Contingencies (Continued)
Roanoke County Service Agreement –Vinton Business Center
Effective July 1, 2019, the Town of Vinton and Roanoke County entered into a service agreement.
that formalized revenues and services shared by the local governments. The agreement also mentions
the continuation of the Vinton Business Center, previously MacDonald Farm, that was previously in a
gain-sharing agreement that ended in 2019. The Town and County jointly share the costs of
development and revenues generated by this project. The Town and County must also jointly agree
before any future improvements are made to the property or before portions of the property are sold.
No major improvements were commenced during the current year.
Roanoke County/Vinton Branch Library
On September 6, 2011, the Town and Roanoke County reached an agreement to purchase property for
a Roanoke County/Vinton Branch Library to be built by Roanoke County. The property cost
$1.25 million, and the Town is responsible for half of that amount, or $625,000. Roanoke County is
responsible for the remainder of the costs. The Town made an additional $100,000 good faith advance
payment in fiscal year 2012 with the remaining costs for the project to be spread out over the next 10
years. The Town paid $50,000 each year for year’s one through five, and $55,500 per year in years
six through ten. The Town made its final $55,500 payment, which was included in principal
retirement expenditures on the fund statement, in fiscal year 2021. Roanoke County owns the
property.
Note 19.Major Customer/Taxpayer
During fiscal year 2021, approximately 7.7% of the Town’s business-type revenues were generated
by one industrial customer.
Note 20.Interfund Activity
The primary purpose of the $409,740 from the general fund and $249,738 from the water and sewer
fund to the stormwater management fund was to cover obligations of stormwater fund. The primary
purpose of the $1,698,723 from the general fund to the capital projects fund was to cover capital
outlays for the capital projects fund.The $7,860 transfer from grant fund to general fund was to cover
community development expenditures.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
63
Note 21.Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned,and/or unassigned based
primarily on the extent to which the Town is bound to observe constraints imposed upon the use of
the resources in the general fund. The constraints placed on the general fund balance are presented
below:
General Fund Fund
Nonspendable:
Inventories $70 $-
Land held for resale 495,239 -
Prepaids 20,201 -
CDBG revolving loan 62,884 -
Vinyard Flower Fund 20,875 -
Total nonspendable 599,269 -
Restricted for:
Public safety 406,739 -
General government administration - 1,366,195
Total committed - 1,366,195
Assigned:
General government administration 9,210 -
Health and welfare 20,392 -
Capital outlay 56,174 -
Total assigned 85,776 -
Unassigned 3,465,134 -
Total fund balance
The Stormwater Management Fund was created in 2017 and has carried a negative fund balance since
inception until transfers in 2021 were made to cover this deficit. It is used to track costs related to
stormwater and currently funded by transfers from the General Fund and Water and Sewer Fund.
Staff is working with Town council to move towards a fee to sustain the fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
(Continued)
64
Note 22.COVID-19 Impact
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency
because of a new strain of coronavirus (the “COVID-19 outbreak”) and the risks to the international
community as the virus spreads globally beyond its point of origin. In March 2020, the WHO
classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
The Town’s operations are heavily dependent on the ability to raise taxes, assess fees, and access the
capital markets. Additionally, access to grants and contracts from federal and state governments may
decrease or may not be available depending on appropriations. The outbreak will have a continued
material adverse impact on economic and market conditions, triggering a period of global economic
slowdown. This situation has depressed the tax bases and other areas in which the Town received
revenue during fiscal year 2021. As such, the Town’s financial condition and liquidity will be
negatively impacted for the fiscal year 2022.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such,
it is uncertain as to the full magnitude the pandemic will have on the Town’s financial condition,
liquidity, and future results of operations. Management is actively monitoring the impact of the global
situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the
daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Town is
not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial
condition, or liquidity for fiscal year 2022.
Note 23.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective. The effective dates below are updated based on Statement No. 95,
Postponement of the Effective Dates of Certain Authoritative Guidance due to the COVID-19
pandemic.
In June 2017, the GASB issued Statement No. 87, Leases. This Statement establishes standards of
accounting and financial reporting for leases by lessees and lessors. The requirements of this
Statement are effective for fiscal years beginning after June 15, 2021.
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. This Statement
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.
In January 2020, the GASB issued Statement No. 92, Omnibus. This Statement enhances
comparability in accounting and financial reporting and improves the consistency of authoritative
literature by addressing practice issues that that have been identified during implementation and
application of certain GASB Statements. Certain requirements of this Statement are effective
immediately and others for reporting periods beginning after June 15, 2021.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2021
65
Note 23.New Accounting Standards (Continued)
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. This
Statement addresses accounting and financial reporting implications that result from the replacement
of an IBOR. The removal of LIBOR as an appropriate benchmark interest rate is effective for
reporting periods ending after December 31, 2022. All other requirements of this Statement are
effective for reporting periods beginning after June 15, 2021.
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements. This Statement improves financial reporting by addressing
issues related to public-private and public-public partnership arrangements (PPPs). The requirements
of this Statement are effective for reporting periods beginning after June 15, 2022.
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology
Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end users
(governments). The requirements of this Statement are effective for reporting periods beginning after
June 15, 2022.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans –an
Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32.
This Statement provides a more consistent financial reporting of defined contribution pension plans,
defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs
associated with reporting those plans. Certain requirements of this Statement are effective
immediately and others for reporting periods beginning after June 15, 2021.
Management has not determined the effects these new GASB Statements may have on prospective
financial statements.
THIS PAGE INTENTIONALLY BLANK
66
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2020 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service cost 406,156$ 468,134$ 478,932$ 443,567$ 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,313,647 1,285,883 1,218,558 1,197,526 1,167,910 1,112,256 1,065,284
Difference between expected and actual experience (477,134) (51,996) 361,554 (356,343) (201,924) 139,140 -
Changes in assumptions - 565,700 - 8,604 - - -
Benefit payments, including refunds of employee contributions (1,180,514) (1,171,567) (1,022,942) (962,861) (976,757) (836,477) (812,476)
Net change in total pension liability 62,155 1,096,154 1,036,102 330,493 416,150 865,184 683,037
Total pension liability - beginning 20,051,700 18,955,546 17,919,444 17,588,951 17,172,801 16,307,617 15,624,580
Total pension liability - ending 20,113,855 20,051,700 18,955,546 17,919,444 17,588,951 17,172,801 16,307,617
Plan Fiduciary Net Position
Net change in plan fiduciary net position (358,834) 536,306 759,164 1,416,776 (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 17,803,624 17,267,318 16,508,154 15,091,378 15,250,470 14,827,717 13,113,366
Plan fiduciary net position - ending 17,444,790 17,803,624 17,267,318 16,508,154 15,091,378 15,250,470 14,827,717
Net pension liability - ending
This schedule is intended to show information for 10 years.Since fiscal year 2015 (plan year 2014)was the first year for this presentation,no earlier data is available.Additional years will be included as they
become available.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
June 30, 2021
The plan years above are reported in the entity’s financial statements in the fiscal year following the plan year – i.e., plan year 2020 information was presented in the entity’s fiscal year 2021 financial report.
Plan Year
The Notes to Required Supplementary Information are an integral part of this statement.
67
EXHIBIT 12
Entity Fiscal
Year Ended
June 30
Actuarially
Determined
Contribution
Relation to
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)Covered Payroll
Percentage of
Covered Payroll
Primary
Government
2021 365,876$ 365,876$ - $ 2,959,006 12.36%
2015 415,814 415,814 - 3,353,343 12.40%
The covered payroll amounts above are for the Town’s fiscal year –i.e.,the covered payroll on which required contributions
were based for the same year.
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PENSION CONTRIBUTIONS
June 30, 2021
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years.Since 2015 was the first year for this presentation,no earlier data is
available. However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an integral part of this statement.
68
EXHIBIT 13
Fiscal Year 2021 Fiscal Year 2020 Fiscal Year 2019 Fiscal Year 2018
Local Plan Local Plan Local Plan Local Plan
Total OPEB Liability
Service cost 37,413$ 35,863$ 47,628$ 49,307$
Interest on total OPEB liability 7,195 18,608 18,664 15,730
Economic/demographic gains - (171,794) - -
Changes in assumptions 1,261 (56,902) 20,076 (17,718)
Benefit payments (30,810) (35,806) (14,834) (10,820)
Net change in total OPEB liability 15,059 (210,031) 71,534 36,499
Total OPEB liability - beginning 303,506 513,537 442,003 405,504
Total OPEB liability - ending 318,565 303,506 513,537 442,003
Plan Fiduciary Net Position
Contributions - employer 30810 35,806 14,834 10,820
(30,810)(35,806) (14,834) (10,820)
Net change in plan fiduciary net position - - - -
Plan fiduciary net position - beginning - - - -
Plan fiduciary net position - ending - - - -
Net OPEB liability - ending
This schedule is intended to show information for 10 years.Since fiscal year 2018 is the first year for this presentation,no earlier data is available.Additional years will be
included as they become available.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS – LOCAL PLAN
June 30, 2021
Benefit payments
The Notes to Required Supplementary Information are an integral part of this statement.
69
EXHIBIT 14
Entity
Fiscal
Year
Ended
June 30
Employer’s
Proportion of
the Net OPEB
Liability
(Asset)
Employer’s
Proportionate
Share of the
Net OPEB
Liability
(Asset)
Covered
Payroll
Employer’s
Proportionate
Share of the
Net OPEB
Liability
(Asset) as a
Percentage of
Covered
Payroll
a Percentage
of the Total
OPEB
Liability
Virginia Retirement System - Group Life Insurance - General Employees
2021 0.01519% $ 253,496 $ 3,129,677 8.10%52.64%
2020 0.01850%301,000 3,634,236 8.28%52.00%
2019 0.01983%301,000 3,762,660 8.00%51.22%
2018 0.01989%299,000 3,664,576 8.16%48.86%
The covered payroll amount above is for the measurement period, which is the twelve months prior to the entity’s fiscal year.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER’S SHARE OF NET OPEB LIABILITY – VRS GLI
June 30, 2021
This schedule is intended to show information for 10 years.Since 2018 was the first year for this presentation,no earlier data is available.
However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an integral part of this statement.
70
EXHIBIT 15
Entity
Fiscal
Year
Ended
June 30
Contractually
Required
Contribution
in Relation to
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
Employer’s
Covered
Payroll
Contributions
as a Percentage
of Covered
Payroll
Virginia Retirement System - Group Life Insurance - General Employees
2021 15,876$ 15,876$ -$ 2,959,006$ 0.54%
2020 18,325 18,325 - 3,129,677 0.59%
2019 18,863 18,863 - 3,634,236 0.52%
2018 19,610 19,610 - 3,762,660 0.52%
The covered payroll amount above is for the entity’s fiscal year - i.e., the covered payroll on which required contributions were based for the same year.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF OPEB CONTRIBUTIONS – VRS GLI
June 30, 2021
This schedule is intended to show information for 10 years.Since 2018 is the first year for this presentation,no earlier data is available.However,
additional years will be included as they become available.
The Notes to Required Supplementary Information are an intergral part of this statement.
71
(Continued)
72
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2021
Note 1.Changes of Benefit Terms
Pension
There have been no actuarially material changes to the Virginia Retirement System (System) benefit
provisions since the prior actuarial valuation.
Other Postemployment Benefits (OPEB)
There have been no actuarially material changes to the System benefit provisions since the prior
actuarial valuation.
Note 2.Changes of Assumptions
The actuarial assumptions used in the June 30, 2019, valuation were based on the results of an
actuarial experience study for the period from July 1, 2012, through June 30, 2016, 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:
Largest 10 –Non-Hazardous Duty:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates at older ages and extended final retirement age from 70 to 75
-Update withdrawal rates to better fit experience at each age and service year
-Lowered rates of disability retirement
-No changes to salary rates
-Increase Line of Duty Disability rates from 14% to 20%
-Decrease discount rate from 7.00% to 6.75%
-Applicable to: Pension and GLI OPEB
Largest 10 –Hazardous Duty/Public Safety Employees:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates of retirement at older ages
-Update withdrawal rates to better fit experience at each age and service year
-Increased disability rates
-No changes to salary rates
-Increased Line of Duty disability rates from 60% to 70%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension and GLI OPEB
73
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2021
Note 2.Changes of Assumptions (Continued)
All Others (Non 10 Largest) –Non-Hazardous Duty:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates of retirement at older ages and changed final retirement from 70 to 75
-Update withdrawal rates to better fit experience at each age and service year
-Lowered disability rates
-No changes to salary rates
-Increased Line of Duty disability rate from 14% to 15%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension, GLI OPEB
All Others (Non 10 Largest) –Hazardous Duty/Public Safety Employees:
-Update mortality table to RP-2014 projected to 2020
-Increased retirement rate at age 50 and lowered rates at older ages
-Update withdrawal rates to better fit experience at each age and service year
-Update disability rates to better fit experience
-No changes to salary rates
-Lowered Line of Duty rate from 60% to 45%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension, GLI OPEB
THIS PAGE INTENTIONALLY BLANK
74
STATISTICAL SECTION
This part of the Town of Vinton Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Town’s overall financial health.
The Town implemented GASB Statement 68 and restated beginning net position for 2015. The restatement is not
included in the prior year data.
The Town implemented GASB Statement 75 and restated beginning net position for 2018. The restatement is not
included in the prior year data.
Contents Table
Financial Trends .....................................................................1-4
These tables contain trend information to help
the reader understand how the Town’s financial
performance and well-being have changed over
time.
Revenue Capacity ...................................................................5-8
These tables contain information to help the
reader assess the factors affecting the Town’s
ability to generate its property and sales taxes, as
well as customer rates for its water and sewer
operations.
Debt Capacity .......................................................................9-11
These tables present information to help the
reader assess the affordability of the Town’s
current levels of outstanding debt and the
Town’s ability to issue additional debt in the
future.
Demographic and Economic Information ........................12-13
These tables offer demographic and economic
indicators to help the reader understand the
environment within which the Town’s financial
activities take place and to help make
comparisons over time and with other
governments.
Operating Information.......................................................14-16
These schedules contain information about the
Town’s operations and resources to help the
reader understand how the Town’s financial
information relates to the services the Town
provides and the activities it performs.
Sources:
Reports for the relevant year.
TABLE 1
2021 2020 2019 1 2018 2017 2016 2015 2014 2013 2012
Governmental activities
Net investment in capital assets 7,899,269$ 6,634,748$ 6,747,977$ 6,548,322$ 6,638,792$ 6,225,603$ 5,929,925$ 5,427,254$ 5,704,050$ 5,919,643$
Restricted 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676 -
Unrestricted 3,558,937 2,849,241 1,248,869 673,717 770,368 801,646 499,226 2,291,758 2,219,240 1,972,859
Total governmental activities net position 11,864,945$ 9,558,700$ 8,177,537$ 7,428,712$ 7,541,547$ 7,236,898$ 6,664,397$ 7,909,173$ 8,014,966$ 7,892,502$
Business-type activities
Net investment in capital assets 4,818,286$ 4,424,574$ 5,051,330$ 4,760,652$ 4,862,273$ 4,880,340$ 5,184,003$ 4,834,097$ 4,853,969$ 4,838,640$
Unrestricted 2,905,885 2,364,985 1,606,517 1,823,180 1,504,611 1,035,813 117,415 410,722 394,976 339,523
Total business-type activities net position 7,724,171$ 6,789,559$ 6,657,847$ 6,583,832$ 6,366,884$ 5,916,153$ 5,301,418$ 5,244,819$ 5,248,945$ 5,178,163$
Primary government
Net investment in capital assets 12,717,555$ 11,059,322$ 11,799,307$ 11,308,974$11,501,065$ 11,105,943$ 11,113,928$ 10,261,351$ 10,558,019$ 10,758,283$
Restricted 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676 -
Unrestricted 6,464,822 5,214,226 2,855,386 2,496,897 2,274,979 1,837,459 616,641 2,702,480 2,614,216 2,312,382
Total primary government net position 19,589,116$ 16,348,259$ 14,835,384$ 14,012,544$13,908,431$ 13,153,051$ 11,965,815$ 13,153,992$ 13,263,911$ 13,070,665$
1 Restated
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
75
TABLE 2
2021 2 2020 2019 1 2018 2017 2016 2015 2014 2013 2012
Expenses
Governmental activities
General government 2,679,302$ 1,391,690$ 1,049,355$ 962,685$ 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$
Public safety 2,303,536 2,941,870 3,566,718 3,686,891 3,926,763 3,340,624 3,418,566 3,339,148 3,238,361 3,214,622
Public works 2,077,098 1,748,237 1,890,909 1,893,248 2,011,469 2,026,305 2,021,994 1,993,713 2,074,464 2,062,430
Parks, recreation, and cultural 444,103 477,604 539,309 517,122 591,208 591,342 621,897 635,252 588,649 553,866
Community development 298,949 679,173 461,068 416,637 479,973 447,908 427,409 575,557 398,517 1,034,510
Interest on long-term debt 68,126 76,732 92,062 94,963 106,756 126,164 193,242 200,584 143,455 183,672
Total governmental activities 7,871,114 7,315,306 7,599,421 7,571,546 8,108,868 7,533,903 7,611,062 7,706,595 7,385,761 7,997,903
Business-type activities
Water and sewer 3,674,669 3,488,665 3,535,493 3,279,827 3,088,256 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342
Stormwater management 399,797 364,142 337,655 253,188 419,957 -----
Total business-type activities expense 4,074,466 3,852,807 3,873,148 3,533,015 3,508,213 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342
Total primary government expenses 11,945,580$ 11,168,113$ 11,472,569$ 11,104,561$ 11,617,081$ 10,637,682$ 10,605,547$ 10,881,491$ 10,331,888$ 11,042,245$
Program Revenues
Governmental activities
Charges for services
Public safety 73,441$ 125,573$ 127,096$ 93,599$ 118,454$ 63,735$ 72,356$ 88,364$ 89,115$ 91,196$
Public works 125,833 72,594 84,876 110,167 110,145 110,099 110,295 110,425 110,115 110,460
Other activities 177,063 221,880 489,012 506,160 540,600 559,171 570,459 554,666 495,133 440,883
Operating grants and contributions 1,742,419 1,966,475 1,531,540 1,539,975 1,666,789 1,389,380 1,426,127 1,382,744 1,287,108 1,281,998
Capital grants and contributions 624,924 309,973 72,006 84,184 408,362 317,643 384,074 114,966 53,749 66,545
Total governmental activities program revenues 2,743,680 2,696,495 2,304,530 2,334,085 2,844,350 2,440,028 2,563,311 2,251,165 2,035,220 1,991,082
Business-type activities
Charges for services
Water and sewer 3,782,766 3,423,342 3,386,429 3,354,057 3,398,582 3,437,535 3,195,850 3,002,970 2,754,147 2,753,851
Capital grants and contributions 364,920 ---------
Total business-type activities program revenues 4,147,686 3,423,342 3,386,429 3,354,057 3,398,582 3,437,535 3,195,850 3,002,970 2,754,147 2,753,851
Total primary government program revenues 6,891,366$ 6,119,837$ 5,690,959$ 5,688,142$ 6,242,932$ 5,877,563$ 5,759,161$ 5,254,135$ 4,789,367$ 4,744,933$
Net (expense) revenue
Governmental activities (5,127,434)$ (4,618,811)$ (5,294,891)$ (5,237,461)$ (5,264,518)$ (5,093,875)$ (5,047,751)$ (5,455,430)$ (5,350,541)$ (6,006,821)$
Business-type activities 73,220 (429,465) (486,719) (178,958) (109,631) 333,756 201,365 (171,926) (191,980) (290,491)
Total primary government net expense (5,054,214)$ (5,048,276)$ (5,781,610)$ (5,416,419)$ (5,374,149)$ (4,760,119)$ (4,846,386)$ (5,627,356)$ (5,542,521)$ (6,297,312)$
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
76
TABLE 2
(Continued)
2021 2 2020 2019 1 2018 2017 2016 2015 2014 2013 2012
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 759,771$ 749,564$ 726,573$ 684,319$ 697,622$ 640,391$ 539,764$ 448,349$ 453,135$ 510,558$
Sales tax 1,236,214 1,153,748 1,469,693 1,370,590 1,436,325 1,348,456 1,320,700 1,287,437 1,284,455 1,247,566
Meals tax 1,417,813 1,289,457 1,078,908 966,053 953,721 955,488 912,713 900,591 912,226 909,814
Utilities tax 689,181 718,109 735,791 756,225 755,985 767,736 782,869 787,097 785,555 782,487
Pari-mutuel tax 643,785 - - - - - - - - -
Business license tax 672,841 638,888 586,739 482,003 500,713 508,747 489,749 517,111 491,996 460,638
Bank stock tax 226,925 - - - - - - - - -
Cigarette tax 145,993 - - - - - - - - -
Vehicle license fee 187,918 - - - - - - - - -
Other taxes 44,584 1,033,340 667,667 616,344 585,378 576,896 561,080 628,177 692,669 698,412
Intergovernmental revenue not program restricted 1,702,176 134,486 812,923 770,645 773,690 744,247 768,956 756,199 807,117 773,617
Restricted intergovernmental revenue - 383,932 - - - - - - - -
Investment earnings not restricted 21,792 42,406 50,854 25,780 19,406 17,709 15,438 14,540 4,434 3,020
Restricted investment earnings - 3 - - - - 60,746 59,628 - -
Gain on disposal of property - - 16,580 - - - 7,444 6,516 - -
Other 94,426 37,669 69,900 57,781 66,305 106,706 27,002 21,752 41,418 184,846
Transfers (409,740) (181,628) (171,912) (140,298) (219,978) - - - - 500,000
Total governmental activities 7,433,679 5,999,974 6,043,716 5,589,442 5,569,167 5,666,376 5,486,461 5,427,397 5,473,005 6,070,958
Business-type activities:
Investment earnings not restricted 4,355 8,271 9,009 7,627 2,172 989 - 7 66 414
Restricted investment earnings 757 - - 525 94 329 1,353 5,301 762 91
Other 446,540 371,278 379,813 299,102 338,118 279,661 250,562 255,135 261,934 287,359
Transfers 409,740 181,628 171,912 140,298 219,978 - - - - (500,000)
Total business-type activities 861,392 561,177 560,734 447,552 560,362 280,979 251,915 260,443 262,762 (212,136)
Total primary government 8,295,071$ 6,561,151$ 6,604,450$ 6,036,994$ 6,129,529$ 5,947,355$ 5,738,376$ 5,687,840$ 5,735,767$ 5,858,822$
Changes in Net Position
Governmental activities 2,306,245$ 1,381,163$ 748,825$ 351,981$ 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$
Business-type activities 934,612 131,712 74,015 268,594 450,731 614,735 453,280 88,517 70,782 (502,627)
Total primary government 3,240,857$ 1,512,875$ 822,840$ 620,575$ 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
1 Restated
2 Pari-mutuel tax, bank stock tax, cigarette tax, and vehicle license tax separately presented from other local taxes started in 2021. Prior years are not restated.
77
TABLE 3
2021 2020 2019 1 2018 2017 2016 2015 2014 2013 2012
General Fund
Nonspendable 599,269$ 655,751$ 323,947$ 103,927$ 89,382$ 62,048$ 59,817$ 60,358$ 19,101$ 62,746$
Restricted 406,739 74,711 180,691 206,673 132,387 209,649 235,246 190,161 274,908 17,068
Committed - 30,000 30,000 30,000 - - - - - -
Assigned 85,776 3,583 38,621 - - - - - - -
Unassigned 3,465,134 3,668,974 2,945,887 2,881,906 2,578,193 2,607,524 2,361,436 2,919,657 2,837,802 2,584,947
Total general fund 4,556,918$4,433,019$3,519,146$3,222,506$2,799,962$2,879,221$2,656,499$3,170,176$3,131,811$2,664,761$
Capital Projects Fund
1 Restated
TOWN OF VINTON, VIRGINIA
FUND BALANCES – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
78
TABLE 4
2021 2020 2019 1 2018 2017 2016 2015 2014 2013 2012
Revenues
Taxes 5,995,664$ 5,606,084$ 5,246,337$ 4,868,746$ 4,904,946$ 4,845,354$ 4,469,823$ 4,562,633$ 4,597,882$ 4,529,953$
Permits, privilege fees, and regulatory licenses 5,490 4,592 6,408 8,955 8,712 9,788 12,403 9,085 10,861 9,273
Fines and forfeitures 52,305 54,486 60,652 71,210 75,085 51,631 56,503 75,059 73,107 75,989
Revenue from use of money and property 139,588 159,655 169,995 148,433 136,695 141,889 197,241 198,625 105,998 105,666
Charges for services 69,391 115,380 382,806 377,369 418,042 452,903 438,558 407,900 387,049 333,832
Other 131,824 134,151 136,351 137,547 150,967 138,589 129,124 149,957 72,337 18,522
Intergovernmental 4,163,472 2,826,727 2,481,996 2,444,777 2,965,777 2,612,197 2,411,620 2,243,120 2,239,992 2,303,286
Total revenues 10,557,734 8,901,075 8,484,545 8,057,037 8,660,224 8,252,351 7,715,272 7,646,379 7,487,226 7,376,521
Expenditures
General government 2,474,141 835,575 711,058 695,683 650,824 710,412 668,082 645,071 632,136 618,951
Public safety 2,155,855 2,821,897 3,577,731 3,703,343 3,649,236 3,304,624 3,313,099 3,201,533 3,005,917 2,948,155
Public works 1,395,665 1,377,264 1,485,888 1,775,465 1,749,305 1,942,260 1,918,439 1,795,602 1,892,656 1,834,120
Parks, recreation, and cultural 500,690 457,443 515,693 533,892 570,065 594,550 617,934 620,636 547,604 518,579
Community development 571,140 871,782 458,435 485,624 889,397 687,006 604,476 468,678 386,592 544,245
Capital projects 1,450,148 533,151 948,721 37,880 463,945 437,389 551,936 140,478 542,235 160,752
Debt service:
Principal retirement 452,490 446,651 414,532 436,700 535,374 404,038 379,843 372,923 335,766 267,595
Interest and fiscal charges 62,640 64,540 77,568 83,210 91,789 115,486 182,584 186,377 174,699 185,715
Bond issuance costs - - - - - 15,920 - - 36,638 -
Total expenditures 9,062,769 7,408,303 8,189,626 7,751,797 8,599,935 8,211,685 8,236,393 7,431,298 7,554,243 7,078,112
Excess (deficiency) of revenues over
expenditures 1,494,965 1,492,772 294,919 305,240 60,289 40,666 (521,121) 215,081 (67,017) 298,409
Other Financing Sources (Uses)
Proceeds from long-term debt 321,000 - 157,053 - - 702,000 - - 2,411,641 -
Payments to refunded bond escrow agent (313,402) - - - - (686,080) - - (2,190,889) -
Proceeds from capital lease - - - 257,602 - 136,599 - - 313,315 -
Proceeds from sale of capital assets - - 16,580 - 80,430 29,537 7,444 6,516 - 130,951
Transfers in (out) (409,740) (181,628) (171,912) (140,298) (219,978) - - - - 500,000
Total other financing sources (uses) (402,142) (181,628) 1,721 117,304 (139,548) 182,056 7,444 6,516 534,067 630,951
Net change in fund balances 1,092,823$ 1,311,144$ 296,640$ 422,544$ (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$
Debt service as a percentage of
noncapital expenditure 6.83% 7.29% 6.33% 6.82% 7.92% 6.90% 7.50% 7.58% 7.21% 6.49%
1 Restated
TOWN OF VINTON, VIRGINI
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
79
TABLE 5
Public Total Total Actual Value as a
Fiscal Real Personal Machinery Service Mobile Assessed Direct Tax Taxable Percentage of
Year Estate Property and Tools Corporation Homes Value Rate Value Assessed Value
2021 532,984,500$ 55,680,797$8,592,840$ 20,746,790$31,140$ 618,036,067$0.07$ 618,036,067$ 100%
2020 508,108,700 52,015,192 7,308,830 18,865,440 26,500 586,324,662 0.07 586,324,662 100
2019 488,906,400 50,021,021 9,451,620 18,380,300 33,600 566,792,941 0.07 566,792,941 100
2018 477,273,000 45,927,462 8,177,340 17,911,880 52,550 549,342,232 0.07 549,342,232 100
2017 467,013,600 45,889,795 7,448,120 17,210,450 40,250 537,602,215 0.07 537,602,215 100
2016 461,728,300 45,958,231 7,146,010 17,038,560 38,300 531,909,401 0.07 531,909,401 100
2015 458,804,800 45,024,930 6,934,930 17,364,350 42,930 528,171,940 0.06 528,171,940 100
2014 455,632,200 45,223,230 6,882,820 13,713,107 45,720 521,497,077 0.06 521,497,077 100
2013 456,795,100 43,698,440 7,310,490 14,385,245 47,520 522,236,795 0.06 522,236,795 100
2012 465,957,200 43,682,200 7,232,260 15,347,180 46,800 532,265,640 0.06 532,265,640 100
Note: Assessed value equals actual value. Property is assessed at full market value and is reassessed every year.
TOWN OF VINTON, VIRGINIA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
80
TABLE 6
Customer Revenue Rank Revenue Rank
Precision Fabrics Group, Inc.353,790$ 1 7.69 %212,456$ 1 7.54 %
Aramark 146,734 2 3.19 114,591 2 4.07
Blue Ridge Manor Apartments 75,667 3 1.65 41,526 5 1.47
Berkshire 63,196 4 1.37 86,497 4 3.07
RGM Properties 45,142 5 0.98 27,354 7 0.97
Roanoke County Schools 44,332 6 0.96 27,225 8 -
Nichols Car Wash 43,682 7 0.95 - - -
Colonial Downs 34,554 8 0.75 - - -
Cardinal Glass 27,069 9 0.59 92,959 3 3.30
Hometown Holdings 25,649 10 0.56 - - -
859,815$ 602,608$
Source: Town of Vinton Finance Department
1) FY 2021 % was based on total water and sewer revenue of $4,599,338
2) FY 2012 % was based on total water and sewer revenue of $2,817,994
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2021
Percentage
of Total Town
Revenue
Fiscal Year 2012
Percentage
of Total Town
Revenue
81
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2021 978,698$ 886,202$ 92.28%-$ 886,202$ 90.55%
2020 948,341 875,175 92.28 26,942 902,117 92.28
2019 936,327 842,667 90.00 21,006 863,673 92.24
2018 874,622 823,616 94.17 14,960 838,576 95.88
2017 859,822 826,673 96.14 20,321 846,994 98.51
2016 853,737 785,340 91.99 13,902 799,242 93.62
2015 736,979 650,501 88.27 13,365 663,866 90.08
2014 645,360 610,294 94.57 12,010 622,304 96.43
2013 635,711 598,141 94.09 13,626 611,767 96.23
2012 637,626 600,406 94.16 13,528 613,934 96.28
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
82
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2021 11.88$ 20.52$ 5.94$ 10.26$
20203 11.00 19.00 5.50 9.50
2019 18.85 27.68 9.43 13.84
2018 18.85 27.68 9.43 13.84
2017 18.85 27.68 9.43 13.84
2016 18.85 27.68 9.43 13.84
2015 18.85 27.68 9.43 13.84
2014 17.31 25.42 8.66 12.71
2013 15.92 23.39 7.97 11.68
2012 15.92 23.39 7.97 11.68
Note: Minimum charge for water and sewer residential and commercial service is based
on standard 5/8 meter
1 Residential minimum charges are billed on a bi-monthly basis
2 Commercial minimum charges are billed on a monthly basis
3 As of January 1, 2020, all consumption is billed at the volumetric rate.
Residential 1 Commercial 2
First 3,000 Gallons or Less First 1,500 Gallons or Less
TOWN OF VINTON, VIRGINIA
WATER AND SEWER RATES
Last Ten Fiscal Years
83
TABLE 9
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Debt limit 61,803,607$ 58,632,466$ 56,679,294$ 54,934,223$ 53,760,222$ 53,190,940$ 52,817,194$ 52,149,708$ 51,809,508$ 53,226,564$
Total net debt applicable to limit 8,849,714 5,080,683 5,765,236 6,407,378 7,094,822 7,757,263 8,344,738 8,959,814 10,118,536 7,125,222
Legal debt margin 52,953,893$ 53,551,783$ 50,914,058$ 48,526,845$ 46,665,400$ 45,433,677$ 44,472,456$ 43,189,894$ 41,690,972$ 46,101,342$
Total net debt applicable to the limit
as a percentage of debt limit 14.32%8.67%10.17%11.66%13.20%14.58%15.80%17.18%19.53%13.39%
Legal Debt Margin Calculation for Fiscal Year 2021
618,036,067$
Debt limit (10% of assessed value)61,803,607$
Less debt applicable to limit:
General obligation bonds 8,849,714
Legal debt margin 52,953,893$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
84
TABLE 10
General General
Fiscal Obligation Revenue Capital Obligations Obligation Revenue Obligations Capital
Year 1 1 1 1
2021 1,670,595$ -$ 239,046$ 11,200$ 1,920,841$ 7,179,119$ 1,338,000$ 379,277$ 433,119$ 9,329,515$
2020 2,000,040 - 296,746 75,352 2,372,138 3,095,449 1,513,000 221,589 558,344 5,388,382
2019 2,328,839 - 352,931 139,296 2,821,066 3,453,480 1,687,000 236,861 666,344 6,043,685
2018 2,637,173 - 240,612 203,036 3,080,821 3,789,564 1,852,617 252,532 498,198 6,392,911
2017 2,940,783 - 54,837 266,576 3,262,196 4,175,676 2,015,327 266,363 - 6,457,366
2016 3,242,029 - 230,969 327,424 3,800,422 4,539,723 2,184,037 280,605 - 7,004,365
2015 3,488,651 - 159,415 385,080 4,033,146 4,892,861 2,150,851 294,516 - 7,338,228
2014 3,724,405 - 209,262 442,548 4,376,215 5,235,409 2,274,519 - - 7,509,928
2013 4,056,402 - 257,549 425,000 4,738,951 5,941,895 2,393,190 - - 8,335,085
2012 2,733,027 1,377,256 - 475,000 4,585,283 3,950,222 2,506,858 - - 6,457,080
Net General Net General
Bonded Debt Bonded Debt
Total Taxable to Estimated Per Capita Per Capita
Fiscal Total Primary Assessed Actual Value of Bonded Debt Personal to Per Capita
Year 1
2021 8,849,714 618,036,067 1.44 8,104 1,092 53,489 2.09
2020 5,095,489 566,792,941 0.87 8,104 629 52,248 1.20
2019 5,782,319 566,792,941 1.02 8,096 714 49,860 1.43
2018 6,426,737 549,342,232 1.17 8,065 797 48,384 1.65
2017 7,116,459 537,602,215 1.32 8,185 869 48,047 1.81
2016 7,781,752 531,909,401 1.46 8,231 945 45,577 2.07
2015 8,381,512 531,909,400 1.59 8,151 1,028 43,418 2.37
2014 8,959,814 528,171,940 1.72 8,151 1,099 42,288 2.60
2013 9,998,297 521,497,080 1.93 8,092 1,236 40,688 3.04
2012 6,683,249 518,095,080 1.26 8,130 822 39,866 2.06
Note: Assessed value of property can be found in Table 5.
Note: Population and personal income can be found in Table 12.
1 Includes bond premiums
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business Type Activities Governmental Activities
85
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2021 4,599,338$ 2,592,707$ 2,006,631$ 652,440$ 138,916$ 2.54
2020 3,802,891 2,545,966 1,256,925 623,670 149,189 1.63
2019 (3)3,775,230 2,495,711 1,279,519 591,312 178,562 1.66
2018 3,661,311 2,344,160 1,317,151 595,555 166,641 1.73
2017 3,738,966 2,182,323 1,556,643 543,289 181,582 2.12
2016 3,718,514 2,241,937 1,476,577 487,049 311,245 1.85
2015 3,447,765 2,115,736 1,332,029 462,548 257,957 1.85
2014 3,263,413 2,261,529 1,001,884 504,718 256,920 1.32
2013 3,016,909 2,129,633 887,276 428,247 215,281 1.38
2012 3,041,715 2,187,683 854,032 413,586 232,992 1.32
(3) Restated
TOWN OF VINTON, VIRGINIA
Debt Service
Notes: Details regarding the Town’s outstanding debt can be found in the Notes to Financial Statements.
(1) Excluding depreciation, interest, and amortization
(2) Excluding refunded principal payments
Last Ten Fiscal Years
PLEDGED REVENUE COVERAGE
86
TABLE 12
Fiscal Total Per Capita Public School Public
Year Personal Personal Roanoke CO Town of Vinton Unemployment
Ended Population (1)Income (2)Income (2)Enrollment (3)Enrollment (3)Rate (4)
2021 8,104 6,391,212,000$ 53,489$ 13,692 923 3.60%
2020 8,104 6,254,966,000 52,248 13,999 948 8.10
2019 8,096 5,962,802,000 49,860 14,121 972 2.90
2018 8,065 5,786,000,000 48,384 14,155 926 3.40
2017 8,185 5,780,000,000 48,047 14,235 965 3.70
2016 8,231 5,435,865,000 45,577 14,135 910 3.70
2015 8,151 5,159,100,000 43,418 14,384 948 4.50
2014 8,151 4,984,547,000 42,288 14,333 965 5.50
2013 8,092 4,789,030,000 40,688 14,369 935 5.90
2012 8,130 4,672,000,000 39,866 14,454 927 5.70
Sources:
(1) From U.S. Census Bureau link at www.rvarc.org/demographics
(4) Virginia Employment Commission www.bls.gov/regions/mid-atlantic/virginia.htm#eag
(3) Virginia Department of Education - Membership Reporting
http://www.doe.virginia.gov/statistics_reports/enrollment/index.shtml
https://apps.bea.gov/regional/bearfacts/
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(2) Personal Income and Per Capita Personal Income from the U.S. Department of Commerce
Bureau of Economic Analysis. Latest information available as of 2018 at
87
TABLE 13
Employer Employees Rank Ownership Employees Rank Ownership
Kroger 202 1 Private 158 2 Private
Berkshire 196 2 Private 155 3 Private
Precision Fabrics Group, Inc.179 3 Private 241 1 Private
Roanoke County Schools (Vinton)131 4 Local Govt.125 4 Local Govt.
Rosie's Gaming Emporium 98 5 Private ---
Aramark Uniform Services 97 6 Private 15 10 Private
McDonalds 85 7 Private 95 6 Private
Penalty Box Partners (Lancerlot)79 8 Private 49 7 Private
Town of Vinton 60 9 Local Govt.99 5 Local Govt.
Magnets USA 57 10 Private ---
Famous Anthony's ---41 8 Private
Super Dollar ---31 9 Private
1,184 14.61%1,009 12.41%
Source: Employer Business Application or HR Contact
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Fiscal Year 2021 Fiscal Year 2012
88
TABLE 14
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 4 4
Finance 5 5 5 5 5 5 6 6 6 6
Planning 3 3 3 2 3 3 3 3 3 3
Police
Officers 22 22 23 23 24 22 22 24 24 24
Civilians 2 2 2 2 2 2 2 2 2 2
Fire
Firefighters and officers --11 11 12 10 11 10 9 9
Other public works 21 26 30 34 33 29 31 32 32 32
Parks, recreation, and cultural 3 3 3 3 3 3 2 3 3 3
Total 60 65 81 84 86 78 81 84 83 83
Note: As of July 1, 2019, all firefighters and emergency responders are employees of Roanoke County.
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Town of Vinton HR Department
89
TABLE 15
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Function/Program
General government
Fleet equipment 133 133 133 133 133 133 133 133 117 117
Pieces of equipment maintained 133 133 133 133 133 133 133 133 117 117
Public safety:
Police
Arrests 398 781 947 1,034 594 722 507 578 582 667
Parking violations 24 45 30 40 58 133 52 64 48 56
Traffic violations 1,395 1928 1,735 2,449 2,021 1,187 1,143 1,603 1,408 1,734
EMS
Emergency responses N/A N/A 2,248 2,607 2,637 2,656 2,615 2,735 2,654 2,872
Fire
Emergency responses N/A N/A 305 830 501 774 278 623 306 677
Public works
Refuse collection
Refuse collected (tons per day)13.20 12.88 12.39 11.80 12.21 11.92 12.55 12.78 12.92 12.75
Recyclables collected (tons per day)0.32 0.3 0.35 0.45 1 0.54 0.65 0.70 0.68 2.00
Other public works
Street resurfacing (miles)3.20 3.33 2.71 2.50 2 2.03 - 1.30 2.17 1.80
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)7,500 Cancelled 20,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
4th of July 6,000 Cancelled 4,000 5,000 5,000 5,000 5,000 5,000 4,000 4,000
(Co-Sponsor Chamber of Commerce)3,500 2,000 3,500 6,000 6,000 9,000 9,000 6,000 6,000 6,000
Water
Number of customer accounts 5,187 5,155 5,136 5,115 5,120 5,093 5,074 5,085 5,071 5,051
Miles of distribution lines 61 61 61 61 61 61 61 61 61 61
Volume pumped (million gallons per day average)1.07 1.05 2 1 1 1.27 1.23 1.14 1.21 1.23
Sewer
Number of customer accounts 4,764 4,728 4,710 4,691 4,686 4,658 4,639 4,642 4,636 4,607
Miles of collection lines 60 60 60 60 60 60 60 60 60 60
Waste/Water treated (million gallons per day)1.81 1.41 1.02 1.32 1.32 1.40 1.19 0.92 0.96 0.99
N/A - Not available.
Refuse collected (tons per day) - based on 260 collection days per year.
Recyclables collected (tons per day) - based on 130 collection days per year.
Source:
Note:
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
90
TABLE 16
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Function/Program
Public safety
Law enforcement vehicles 27 26 24 27 27 25 26 25 25 26
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32
Streetlights 513 505 505 505 505 503 502 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)186/1850 428/6330 428/6283 356/5822 285/4370 252/4166 240/3990 223/3,965 253/3775 231/4033
Charles R. Hill Center (Rentals)205 292 298 303 316 283 291 289 437 299
Vinton War Memorial 196 258 240 250 276 273 235 282 301 200
Parks/athletic fields
Greenway (3/4 Mile) Cinder Surface 30,000 30,000 30,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
War Memorial Playground 4,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Vinton Municipal Pool Closed Closed Closed Closed Closed 7,977 7,977 8,458 10,562 10,176
Water and sewer
Water mains (miles)61 61 61 61 61 61 61 61 61 61
Sanitary sewers (miles)60 60 60 60 60 60 60 60 60 60
Stormwater
Storm sewers (miles)12 12 12 12 12 12 12 12 12 12
Signalized street intersections
Traffic signals (each)11 11 11 11 11 11 11 11 11 11
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Various Town of Vinton Departments
91
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92
COMPLIANCE SECTION
Assistance
Federal Grantor/Pass - Through Grantor/Listing Pass-through Entity Federal
Program or Cluster Title Number Identifying Number Expenditures
Department of Housing and Urban Development:
Pass Through Payments:
Virginia Department of Housing and Community Development:
Community Development Block Grant, 2018 Local Innovation Awards 14.228 Contract #18-LI-24 68,200$
68,200
Total Department of Housing and Urban Development
Department of Justice:
Direct Payments:
Bulletproof Vest Partnership Program 16.607 N/A 1,986
Edward Byrne memorial Justice Assistance grant program 16.738 20-A4938AD16 833
Total Department of Justice 2,819
Department of Transportation:
Pass Through Payments:
Department of Motor Vehicles:
Highway Safety Cluster
National Priority Safety Programs 20.616 N/A 5,561
Department of Transportation
Highway Planning and Construction Cluster
Highway Planning and Construction 20.205 UPC 109611/111649/113565 344,413
Total Department of Transportation 349,974
United States Department of the Treasury:
Pass Through Payments:
Virginia Department of Accounts
County of Roanoke:
COVID-19 Coronavirus Relief Fund 21.019 N/A 1,401,033
Total United States Department of the Treasury
Environmental Protection Agency
Direct Payments:
EPA Brownfield Site Assessment 66.818 FAIN # 96368301 90,900
Total Environmental Protection Agency
Department of Emergency Management
Direct Payments:
Disaster Grants Public Assistance 97.036 FEMA 4512-DR-VA 7,650
7,650
Total Department of Emergency Management
Total Expenditures of Federal Awards 1,920,576$
NOTE 1 - BASIS OF PRESENTATION:
NOTE 2 - DE MINIMIS INDIRECT COST RATE:
NOTE 3 - OUTSTANDING LOAN BALANCES:
TOWN OF VINTON, VIRGINIA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
The accompanying schedule of federal expenditures includes the activity of all federally assisted programs of the Town of Vinton,Virginia and is
presented on the modified accrual basis of accounting,as described in Note 1 to the Town's basic financial statements.All federal awards received
directly from federal agencies, as well as federal awards passed through other government agencies, are included on this schedule.
The Town did not elect to use the 10% de minimis indirect cost rate.
93
94
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, Virginia 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the Town Council
Town of Vinton, Virginia
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States; and 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, and each major fund of
the Town of Vinton, Virginia (the “Town”), as of and for the year ended June 30, 2021, and the related
notes to the financial statements, which collectively comprise the Town’s basic financial statements and
have issued our report thereon dated November 30, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal
control over financial reporting (internal control) as a basis for designing the 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 Town’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Town’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. However, as described in the accompanying schedule of findings
and questioned costs, we identified a certain deficiency in internal control that we consider to be a
material weakness, which is labelled as item 2021-001.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free of
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 that are required to be reported under Government
Auditing Standards.
Town of Vinton’s Response to Finding
The Town of Vinton’s response to the finding identified in our audit is described in the accompanying
schedule of findings and questioned costs. The Town’s response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 30, 2021
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319 McClanahan Street, S.W. • Roanoke, Virginia 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE
To the Honorable Members of the Town Council
Town of Vinton, Virginia
Report on Compliance for Each Major Federal Program
We have audited the Town of Vinton, Virginia’s (the “Town”)compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the Town’s major federal programs for the year ended June 30, 2021. The Town’s major
federal program is identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, the terms, and conditions
of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Town’s major federal
programs based on our audit of the types of compliance requirements referred to above. 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). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
Town’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the Town’s compliance.
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Report on Compliance for Each Major Federal Program (Continued)
Opinion on Each Major Federal Program
In our opinion, the Town 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 June 30, 2021.
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 2021-002. Our opinion on each
major federal program is not modified with respect to these matters.
The Town’s response to the finding identified in our audit is described in the accompanying schedule of
findings and questioned costs. The Town’s response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Report on Internal Control over Compliance
Management of the Town is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the Town’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion
on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Town’s 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 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.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
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Report on Internal Control over Compliance (Continued)
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.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 30, 2021
99
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2021
As more fully described in the Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards, we performed tests of the Town’s compliance with certain provisions of laws,
regulations, contracts,and grants shown below.
STATE COMPLIANCE MATTERS
Code of Virginia:
Budget and Appropriation Laws
Cash and Investment Laws
Conflicts of Interest Act
Debt Provisions
Local Retirement Systems
Procurement Laws
Uniform Disposition of Unclaimed Property Act
Stormwater Utility Program
Fire Program Aid
State Agency Requirements:
Highway Maintenance Funds
LOCAL COMPLIANCE MATTERS
Town Charter
FEDERAL COMPLIANCE MATTERS
Compliance Supplement for Single Audits of State and Local Governments
Provisions and conditions of agreements related to federal program selected for testing.
(Continued)
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TOWN OF VINTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2021
A. SUMMARY OF AUDITOR’S RESULTS
1. The auditor’s report expresses an unmodified opinion on the financial statements.
2. One material weaknesses relating to the audit of the financial statements was reported in the
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards.
3. No instances of noncompliance material to the financial statements were disclosed.
4. No significant deficiencies relating to the audit of the major federal award programs were reported in the
Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over
Compliance Required by the Uniform Guidance.
5. The auditor’s report on compliance for the major federal award programs expresses an unmodified
opinion.
6. The audit disclosed one audit finding relating to the major programs.
7. The program tested as major was:
Name of Program
Assistance
Listing
Number
COVID-19 Coronavirus Relief Funds 21.019
8. The threshold for distinguishing Type A and B programs was $750,000.
9. The Town was not determined to be a low-risk auditee.
B. FINDINGS – FINANCIAL STATEMENT AUDIT
2021-001: Segregation of Duties (Material Weakness)
Condition:
A fundamental concept of internal controls is the separation of duties. No one employee should
have access to both physical assets and the related accounting records, or to all phases of a
transaction. A proper segregation of duties has not been established in functions related to
accounts payable, accounts receivable, cash disbursements, and information technology.
Criteria:
Mail should be opened by an employee not responsible for accounting, such as the Town
Clerk. Cash receipts could be recorded and the deposit prepared by this person. The cash
receipts journal, supplemented by remittance advice, could be forwarded to the accounting
staff for postings to the general ledger and detail customer accounts.
TOWN OF VINTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2021
(Continued)
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B. FINDINGS – FINANCIAL STATEMENT AUDIT (Continued)
2021-001: Segregation of Duties (Material Weakness) (Continued)
Criteria (Continued):
Customer complaints, returned checks, disputed items, and other such matters should be
investigated by someone who is independent of preparing daily cash receipts and preparing
deposits.
Checks and remittance advice should be placed into envelopes and mailed by someone with
no other accounting responsibilities.
Water and sewer billing should be independent of the accounts receivable function.
Cause:
The size of the Town’s accounting staff prohibits complete adherence to segregation of duties.
Effect:
Internal controls are designed to safeguard assets and detect losses from employee dishonesty or
error.
Recommendation:
Steps should be taken to eliminate performance of conflicting duties where possible or to
implement effective compensating controls.
Views of Responsible Officials and Planned Corrective Action:
Management noted this finding. The Finance Director has segregated duties, to the extent
practical, to minimize instances where the same person has complete control of a transaction or
conflicting duties.
TOWN OF VINTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2021
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C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT
2021-002: Coronavirus Relief Fund – CFDA #21.019, Procurement Policies and Procedures
Condition:
The Town does not have complete and written procurement policies that are in compliance with
the standards required by the Uniform Guidance 2 CFR Part 200.
Criteria:
Under the requirements in the Uniform Guidance, all entities are required to have written
procurement policies that conform to applicable Federal laws and regulations and standards. The
complete procurement standards are located at 2 CFR Part 200, Sections 317 through 326.
Cause:
While the Town does have procurement policies in place, the Town has not updated procurement
policies in accordance with the Uniform Guidance.
Effect:
The lack of complete, written updated policies could result in an improper procurement using
Federal funds.
Recommendation:
Management should draft and implement updated written procurement procedures to align with the
Uniform Guidance requirements for all purchases to be made with Federal funds.
Views of Responsible Officials and Planned Corrective Action:
Upon notification of a recommendation from our auditors, staff immediately drafted a Federal
Grant Policy which was adopted by Town Council at the meeting on September 21, 2021.
D. FINDINGS – COMMONWEALTH OF VIRGINIA
None noted.
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TOWN OF VINTON, VIRGINIA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
A.FINDING –FINANCIAL STATEMENT AUDIT
2020-001:Segregation of Duties (Material Weakness)
Condition:
A fundamental concept of internal controls is the separation of duties. No one employee should
have access to both physical assets and the related accounting records, or to all phases of a
transaction. A proper segregation of duties has not been established in functions related to
payroll, accounts payable, accounts receivable, cash disbursements, and information technology.
Current Status:
Condition cleared with regard to payroll and check printing and still present for other accounts
payable functions, accounts receivable, cash disbursements, and information technology.See
item 2021-001 in the schedule of findings and questioned costs.
B.FINDING –COMMONWEALTH OF VIRGINIA
2020-002:General Government Budget Appropriation
Condition:
Public safety expenditures exceeded budget appropriations.
Current Status:
Condition cleared in current year.